CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 Chapter 9 Financial Reporting
I.Report of the Auditors
Consolidated financial statements for the six months ended 30 June 2015haven’t been audited. II.Financial Statements
All amounts in Renminbi “RMB” unless otherwise stated.
1. Consolidated balance sheets
Preparation Unit: CHINA NATIONAL ACCORD MEDICINES CO., LTD.
30 June 2015
Unit: RMB
||||
|-|-|-|
|Item|30 June 2015|31 December 2014|
|Current assets|||
||1,161,871,173.03|867,562,115.54|
|Cash at bank and on hand|||
||513,528,605.78|618,995,440.09|
|Notes receivable|||
||7,858,941,849.11|7,018,312,673.19|
|Accounts receivable|||
||107,416,097.51|96,043,154.40|
|Advances to suppliers|||
||35,190,000.00|0.00|
|Dividends receivable|||
|Other receivables|40,817,703.37|28,574,927.90|
||2,227,123,375.20|2,322,333,262.87|
|Inventories|||
||19,345,048.23|40,308,591.47|
|Other current assets|||
|Total current assets|11,964,233,852.23|10,992,130,165.46|
|Non-current assets|||
||151,691,888.29|157,604,846.85|
|Long-term equity investments|||
||79,822,727.80|73,836,850.51|
|Investment properties|||
||711,040,468.46|745,557,829.35|
|Fixed assets|||
||401,040,277.87|330,218,696.56|
|Construction in progress|||
||141,209,184.60|144,383,753.87|
|Intangible assets|||
||5,619,315.47|5,619,315.47|
|Development costs|||
||79,378,833.15|79,378,833.15|
|Goodwill|||
||36,193,800.15|39,154,232.03|
|Long-term prepaid expenses|||
||82,146,152.88|85,146,479.50|
|Deferred income tax assets|||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||
|-|-|-|
||160,279,989.56|175,910,538.15|
|Other non-current assets|||
|Total non-current assets|1,848,422,638.23|1,836,811,375.44|
|TOTAL ASSETS|13,812,656,490.46|12,828,941,540.90|
|Current liabilities|||
|Short-term borrowings|1,980,929,436.95|1,517,954,528.88|
|Notes payable|1,373,483,568.02|1,468,166,640.64|
|Accounts payable|4,341,666,286.09|3,988,878,234.03|
|Advances from customers|44,995,822.24|40,339,905.63|
|Employee benefits payable|109,332,233.24|171,958,142.88|
|Taxes payable|99,088,331.76|77,445,669.46|
|Interests payable|9,717,998.71|6,666,712.19|
|Other payables|372,225,973.50|412,347,201.51|
|Current portion of long-term borrowings|7,649,200.00|4,000,000.00|
|Total current liabilities|8,339,088,850.51|7,687,757,035.22|
|Non-current liabilities|||
|Long-term borrowings|54,628,776.85|39,695,448.00|
|Long-term employee benefits|||
||2,582,100.00|2,896,000.00|
|payable|||
|Payables for specific projects|1,287,000.00|1,287,000.00|
|Deferred Income|167,418,485.85|176,366,201.15|
|Deferred income tax liabilities|23,454,624.92|24,297,076.57|
|Other non-current liabilities|45,427,343.31|45,427,343.31|
|Total non-current liabilities|294,798,330.93|289,969,069.03|
|Total liabilities|8,633,887,181.44|7,977,726,104.25|
|OWNERS’ EQUITY|||
|Share capital|362,631,943.00|362,631,943.00|
|Capital surplus|1,863,894,533.34|1,863,894,533.34|
|Surplus reserve|181,315,971.50|181,315,971.50|
|Undistributed profits|2,671,558,237.98|2,356,765,374.25|
|Total equity attributable to equity holders of the Company|5,079,400,685.82|4,764,607,822.09|
|Minority interest|99,368,623.20|86,607,614.56|
|Total owners' equity|5,178,769,309.02|4,851,215,436.65|
|TOTAL LIABILITIES AND OWNERS’ EQUITY|13,812,656,490.46|12,828,941,540.90|

Legal Principal in charge Head of accounting
representative:闫志刚 of accounting :魏平孝 department:周菲菲
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 2. Company balance sheets
Unit: RMB
||||
|-|-|-|
|Item|30 June 2015|31 December 2014|
|Current assets|||
||232,835,112.63|257,173,314.81|
|Cash at bank and on hand|||
||48,985,487.44|47,389,669.59|
|Notes receivable|||
||561,068,339.16|513,791,982.48|
|Accounts receivable|||
||554,159.82|5,047,755.80|
|Advances to suppliers|||
|Interest receivable|1,858,738.27|1,890,165.10|
|Dividends receivable|35,190,000.00|0.00|
|Other receivables|1,348,979,769.50|1,111,423,809.76|
|Inventory|167,275,611.58|184,880,147.05|
|Other current assets|308,889.73|2,560,096.51|
|Total current assets|2,397,056,108.13|2,124,156,941.10|
|Non-current assets|||
||2,766,091,382.67|2,772,004,341.23|
|Long-term equity investments|||
||4,783,775.56|5,272,980.96|
|Investment properties|||
||17,097,985.55|17,175,509.65|
|Fixed assets|||
||372,904,448.40|299,290,846.13|
|Construction in progress|||
||36,137,443.18|36,923,545.12|
|Intangible assets|||
||5,128,145.16|5,681,186.10|
|Long-term prepaid expenses|||
||2,860,992.26|2,800,803.02|
|Deferred income tax assets|||
||46,273,400.39|68,103,087.93|
|Other non-current assets|||
|Total non-current assets|3,251,277,573.17|3,207,252,300.14|
|TOTAL ASSETS|5,648,333,681.30|5,331,409,241.24|
|Current liabilities|||
|Short-term borrowings|189,000,000.00|202,000,000.00|
|Notes payable|334,129,756.08|274,584,574.89|
|Accounts payable|325,216,434.35|314,477,971.19|
|Advances from customers|516,073.73|322,008.81|
|Employee benefits payable|14,064,062.51|20,339,767.52|
|Taxes payable|11,696,128.98|13,695,533.72|
|Interests payable|438,062.59|86,831.07|
|Other payables|197,284,728.88|447,928,781.45|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||
|-|-|-|
|Total current liabilities|1,072,345,247.12|1,273,435,468.65|
|Non-current liabilities|||
|Long-term borrowings|54,628,776.85|39,695,448.00|
|Long-term employee benefits|||
||226,000.00|226,000.00|
|payable|||
|Payables for specific projects|800,000.00|800,000.00|
|Deferred income|5,000,000.00|5,000,000.00|
|Deferred income tax liabilities|3,774,569.00|3,773,319.00|
|Total non-current liabilities|64,429,345.85|49,494,767.00|
|Total liabilities|1,136,774,592.97|1,322,930,235.65|
|OWNERS’ EQUITY|||
|Share capital|362,631,943.00|362,631,943.00|
|Capital surplus|1,869,692,921.70|1,869,692,921.70|
|Surplus reserve|181,315,971.50|181,315,971.50|
|Undistributed profits|2,097,918,252.13|1,594,838,169.39|
|Total owners' equity|4,511,559,088.33|4,008,479,005.59|
|TOTAL LIABILITIES AND OWNERS’ EQUITY|5,648,333,681.30|5,331,409,241.24|

 3. Consolidated and company income statements
Unit: RMB
||||
|-|-|-|
|Item|For the six months ended 30 June 2015|For the six months ended 30 June 2014|
|I.Sales|12,813,803,166.77|11,612,642,434.28|
|Including: Sales|12,813,803,166.77|11,612,642,434.28|
|II.Cost of Sales|12,359,627,721.82|11,219,447,997.45|
|Including: Cost of Sales|11,801,661,040.42|10,626,767,657.24|
|Taxes and surcharges|26,443,689.75|27,472,713.53|
|Selling and distribution expenses|262,074,106.01|271,149,210.54|
|Administration expenses|203,589,373.35|215,813,783.67|
|Financial expenses – net|58,639,672.40|70,931,725.10|
|Asset impairment losses|7,219,839.89|7,312,907.37|
|Add: Investment income|28,274,061.44|23,595,722.50|
|Including: Share of profits of associates|28,274,061.44|23,595,722.50|
|III. Operating profit|482,449,506.39|416,790,159.33|
|Add: Non-operating income|12,982,289.46|28,336,065.33|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||
|-|-|-|
|Including: Gain on disposal of|10,297.36||
|||500,989.54|
|non-current assets|||
|Less: Non-operating expenses|440,680.38|1,207,497.35|
|Including: Loss on disposal of|225,404.59||
|||64,238.16|
|non-current assets|||
|IV. Total profit|494,991,115.47|443,918,727.31|
|Less: Income taxes expenses|95,348,854.50|86,331,296.75|
|V. Net profit|399,642,260.97|357,587,430.56|
|Attributable to equity holders of the|387,319,252.33||
|||349,213,988.51|
|Company|||
|Minority interest|12,323,008.64|8,373,442.05|
|VI. Other comprehensive income|0.00|0.00|
|VII. Total comprehensice income|399,642,260.97|357,587,430.56|
|Attributable to equity holders of the|387,319,252.33||
|||349,213,988.51|
|Company|||
|Minority interest|12,323,008.64|8,373,442.05|
|VIII. Earnings per share|||
|(1) Basic earnings per share|1.068|1.073|
|(2) Diluted earnings per share|1.068|1.073|

 Legal Principal in charge Head of accounting
representative:闫志刚 of accounting :魏平孝 department:周菲菲
4. Company income statements
Unit: RMB
||||
|-|-|-|
|Item|For the six months ended 30 June 2015|For the six months ended 30 June 2014|
|I.Sales|1,409,915,735.50|1,344,533,386.96|
|Less: Cost of sales|1,350,096,101.89|1,290,912,374.30|
|Taxes and surcharges|2,742,214.76|3,819,156.69|
|Selling and distribution expenses|22,711,056.43|23,395,202.86|
|Administration expenses|22,137,614.50|23,650,902.47|
|Financial expenses – net|-32,319,843.63|-30,937,200.09|
|Asset impairment losses|293,938.78|153,394.98|
|Add: Investment income|542,787,180.98|480,544,087.23|
|Including: Share of profits of associates|28,274,061.44|23,595,722.50|
|II. Operating profit|587,041,833.75|514,083,642.98|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||
|-|-|-|
||97,780.77|705,252.60|
|Add: Non-operating income|||
|Including: Gain on disposal of non-current|0.00|0.00|
|assets|||
||0.02|0.08|
|Less: Non-operating expenses|||
|Including: Loss on disposal of non-current|0.00|0.00|
|assets|||
|III. Total profit|587,139,614.50|514,788,895.50|
|Less: Income taxes expenses|11,533,143.16|8,808,140.45|
|IV. Net profit|575,606,471.34|505,980,755.05|
|V. Other comprehensive income|0.00|0.00|
|VI. Total comprehensice income|575,606,471.34|505,980,755.05|
|VII. Earnings per share|||
|(1)Basic earnings per share|N/A|N/A|
|(2)Diluted earnings per share|N/A|N/A|

 5. Consolidated and company cash flows statements
Unit: RMB
||||
|-|-|-|
||For the six months ended 30 June||
|Item||For the six months ended 30 June 2014|
||2015||
|I. Cash flows from operating activities:|||
|Cash received from sales of goods or|||
||13,538,599,427.81|11,799,950,691.25|
|rendering of services|||
|Refund of taxes and surcharges|1,412,100.00|6,571,540.44|
|Cash received relating to|||
||40,061,810.25|53,448,437.56|
|other operating activities|||
|Sub-total of cash inflows|13,580,073,338.06|11,859,970,669.25|
|Cash paid for goods and services|12,323,623,570.32|11,553,683,051.08|
|Cash paid to and on behalf of employees|346,227,791.38|304,214,026.96|
|Payments of taxes and surcharges|297,175,090.54|302,590,124.70|
|Cash paid relating to other|||
||164,807,307.09|184,199,274.47|
|operating activities|||
|Sub-total of cash outflows|13,131,833,759.33|12,344,686,477.21|
|Net cash flows from operating activities|448,239,578.73|-484,715,807.96|
|II. Cash flows from investing activities|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and|4,695,691.53|904,370.80|
|other long-term assets|||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||
|-|-|-|
|Cash received from disposal of|||
|subsidiaries and other business|0.00|3,598,827.09|
|units|||
|Sub-total of cash inflows|4,695,691.53|4,503,197.89|
|Cash paid to acquire fixed assets,|||
|intangible assets and other|84,244,511.59|123,288,911.49|
|long-term assets|||
|Net cash paid to acquire subsidiaries|||
||252,000.00|0.00|
|and other business units|||
|Sub-total of cash outflows|84,496,511.59|123,288,911.49|
|Net cash flows from investing|||
||-79,800,820.06|-118,785,713.60|
|activities|||
|III. Cash flows from financing|||
|activities|||
|Cash received from investments|1,470,000.00|1,929,065,413.47|
|Including: Cash receivables for|||
|dividends or profit to minority|1,470,000.00|0.00|
|shareholders of subsidiaries|||
|Cash received from borrowings|99,576,626.12|177,215,892.08|
|Cash received relating to other|||
||0.00|52,376,797.32|
|financing Activities|||
|Sub-total of cash inflows|101,046,626.12|2,158,658,102.87|
|Cash repayments of borrowings|14,333,727.61|1,093,663,188.17|
|Cash payments for interest expenses|||
|and distribution of dividends or|127,751,125.57|146,826,227.89|
|profits|||
|Including: Cash payments for|||
|dividends or profit to minority|1,032,000.00|1,098,000.00|
|shareholders of subsidiaries|||
|Cash payments relating to other|||
||24,066,161.02|3,235,784.18|
|financing activities|||
|Sub-total of cash outflows|166,151,014.20|1,243,725,200.24|
|Net cash flows from financing|-65,104,388.08|914,932,902.63|
|activities|||
|IV. Effect of foreign exchange rate|||
||9,250.42|5,838.21|
|changes on cash|||
||303,343,621.01|311,437,219.28|
|V. Net increase in cash|||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||
|-|-|-|
||854,212,006.84|1,097,948,354.45|
|Add: Cash at beginning of period|||
||1,157,555,627.85|1,409,385,573.73|
|VI. Cash at end of period|||

6. Company cash flows statements
Unit: RMB
||||
|-|-|-|
|Item|For the six months ended 30 June 2015|For the six months ended 30 June 2014|
|I. Cash flows from operating|||
|activities:|||
|Cash received from sales of goods or|||
||1,506,941,667.17|1,421,640,664.70|
|rendering of services|||
|Cash received relating to other|||
||6,475,294.32|12,486,044.81|
|operating activities|||
|Sub-total of cash inflows|1,513,416,961.49|1,434,126,709.51|
|Cash paid for goods and services|1,463,172,714.22|1,439,943,602.26|
|Cash paid to and on behalf of|||
||30,095,211.91|26,913,040.68|
|employees|||
|Payments of taxes and surcharges|24,640,593.24|13,548,247.06|
|Cash paid relating to other|||
||17,001,372.02|12,903,407.44|
|operating activities|||
|Sub-total of cash outflows|1,534,909,891.39|1,493,308,297.44|
|Net cash flows from operating|||
||-21,492,929.90|-59,181,587.93|
|activities|||
|II. Cash flows from investing activities|||
|Cash received from returns on|||
||165,748,512.00|169,306,012.82|
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets|0.00|700.00|
|and other long-term assets|||
|Cash received from disposal of|||
|subsidiaries and other business|2,144,319,315.47|1,663,852,850.00|
|units|||
|Sub-total of cash inflows|2,310,067,827.47|1,833,159,562.82|
|Cash paid to acquire fixed assets,|||
|intangible assets and other|65,650,551.69|65,829,878.73|
|long-term assets|||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||
|-|-|-|
|Net cash paid to acquire subsidiaries|||
||252,000.00|1,518,000.00|
|and other business units|||
|Cash paid relating to other investing|||
||2,382,714,617.00|2,859,000,089.73|
|activities|||
|Sub-total of cash outflows|2,448,617,168.69|2,926,347,968.46|
|Net cash flows from investing|||
||-138,549,341.22|-1,093,188,405.64|
|activities|||
|III. Cash flows from financing|||
|activities|||
|Cash received from investments|0.00|1,929,065,413.47|
|Cash received from borrowings|64,933,328.85|58,095,448.00|
|Cash received relating to other|||
||183,994,821.13|258,472,602.86|
|Financing activities|||
|Sub-total of cash inflows|248,928,149.98|2,245,633,464.33|
|Cash repayments of borrowings|10,000,000.00|925,000,000.00|
|Cash payments for interest expenses|||
|and distribution of dividends or|79,224,081.04|85,892,357.94|
|profits|||
|Cash payments relating to other|||
||24,000,000.00|82,919,213.08|
|financing activities|||
|Sub-total of cash outflows|113,224,081.04|1,093,811,571.02|
|Net cash flows from financing|135,704,068.94|1,151,821,893.31|
|activities|||
|IV. Effect of foreign exchange rate|||
||0.00|1,201.00|
|changes on cash|||
|V. Net decrease in cash|-24,338,202.18|-546,899.26|
||257,173,314.81|218,342,947.03|
|Add: Cash at beginning of period|||
||232,835,112.63|217,796,047.77|
|VI. Cash at end of period|||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 7. Consolidated statement of changes inowners’ equity
For the six months ended 30 June 2015
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||For the six months ended 30 June 2015||||||
|Item|Attributable to the shareholders of the Company||||||
||||||Minority interest|Total owners’ equity|
||Paid-in capital|Capital surplus|Surplus reserves|Undistributed profits|||
|1. Balance at 31 December 2014|362,631,943.00|1,863,894,533.34|181,315,971.50|2,356,765,374.25|86,607,614.56|4,851,215,436.65|
|2. Balance at 1 January 2015|362,631,943.00|1,863,894,533.34|181,315,971.50|2,356,765,374.25|86,607,614.56|4,851,215,436.65|
|3. Movements for this period|0.00|0.00|0.00|314,792,863.73|12,761,008.64|327,553,872.37|
|(1)Comprehensive income|0.00|0.00|0.00|387,319,252.33|12,323,008.64|399,642,260.97|
|(2)Capital contribution and|||||||
||0.00|0.00|0.00|0.00|1,470,000.00|1,470,000.00|
|withdrawals by owners|||||||
|Capital contribution by owners|0.00|0.00|0.00|0.00|1,470,000.00|1,470,000.00|
|(3)Profit distribution|0.00|0.00|0.00|-72,526,388.60|-1,032,000.00|-73,558,388.60|
|Profit distribution to shareholders (or|||||||
||0.00|0.00|0.00|-72,526,388.60|-1,032,000.00|-73,558,388.60|
|equity owners)|||||||
|4. Balance at 30 June 2015|362,631,943.00|1,863,894,533.34|181,315,971.50|2,671,558,237.98|99,368,623.20|5,178,769,309.02|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 For the year ended 31 December 2014
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||For the year ended 31 December 2014||||||
|Item|Attributable to the shareholders of the Company||||||
||||||Minority interest|Total owners’ equity|
||Paid-in capital|Capital surplus|Surplus reserves|Undistributed profits|||
|1. Balance at 31 December 2013|288,149,400.00|5,750,338.57|144,855,634.40|1,806,002,285.06|71,879,406.54|2,316,637,064.57|
|2. Balance at 1 January 2014|288,149,400.00|5,750,338.57|144,855,634.40|1,806,002,285.06|71,879,406.54|2,316,637,064.57|
|3. Movements for this period|74,482,543.00|1,858,144,194.77|36,460,337.10|550,763,089.19|14,728,208.02|2,534,578,372.08|
|(1)Comprehensive income|0.00|0.00|0.00|652,497,176.03|17,343,991.84|669,841,167.87|
|(2)Capital contribution and|||||||
||74,482,543.00|1,858,144,194.77|0.00|0.00|3,210,000.00|1,935,836,737.77|
|withdrawals by owners|||||||
|Capital contribution by owners|74,482,543.00|1,855,144,194.77|0.00|0.00|3,210,000.00|1,932,836,737.77|
|Others|0.00|3,000,000.00|0.00|0.00|0.00|3,000,000.00|
|(3)Profit distribution|0.00|0.00|36,460,337.10|-101,734,086.84|-5,825,783.82|-71,099,533.56|
|Appropriation to surplus reserves|0.00|0.00|36,460,337.10|-36,460,337.10|0.00|0.00|
|Profit distribution to shareholders (or|||||||
||0.00|0.00|0.00|-65,273,749.74|-5,825,783.82|-71,099,533.56|
|equity owners)|||||||
|4. Balance at 31 December 2014|362,631,943.00|1,863,894,533.34|181,315,971.50|2,356,765,374.25|86,607,614.56|4,851,215,436.65|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 8. Company statement of changes inowners’ equity
For the six months ended 30 June 2015
Unit: RMB
|||||||
|-|-|-|-|-|-|
||For the six months ended 30 June 2015|||||
|Items||||||
||Paid-in capital|Capital surplus|Surplus reserves|Undistributed profits|Total share holders’ equity|
|1. Balance at 31 December 2014|362,631,943.00|1,869,692,921.70|181,315,971.50|1,594,838,169.39|4,008,479,005.59|
|2. Balance at 1 January 2015|362,631,943.00|1,869,692,921.70|181,315,971.50|1,594,838,169.39|4,008,479,005.59|
|3. Movements for this period|0.00|0.00|0.00|503,080,082.74|503,080,082.74|
|(1)Comprehensive income|0.00|0.00|0.00|575,606,471.34|575,606,471.34|
|(2)Profit distribution|0.00|0.00|0.00|-72,526,388.60|-72,526,388.60|
|Profit distribution to shareholders||||||
||0.00|0.00|0.00|-72,526,388.60|-72,526,388.60|
|(or equity owners)||||||
|4. Balance at 30 June 2015|362,631,943.00|1,869,692,921.70|181,315,971.50|2,097,918,252.13|4,511,559,088.33|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 For the year ended 31 December 2014
Unit: RMB
|||||||
|-|-|-|-|-|-|
||For the year ended 31 December 2014|||||
|Item||||||
||Paid-in capital|Capital surplus|Surplus reserves|Undistributed profits|Total share holders’ equity|
|1. Balance at 31 December 2013|288,149,400.00|14,548,726.93|144,855,634.40|1,222,346,090.09|1,669,899,851.42|
|2. Balance at 1 January 2014|288,149,400.00|14,548,726.93|144,855,634.40|1,222,346,090.09|1,669,899,851.42|
|3. Movements for this period|74,482,543.00|1,855,144,194.77|36,460,337.10|372,492,079.30|2,338,579,154.17|
|(1)Comprehensive income|0.00|0.00|0.00|474,226,166.14|474,226,166.14|
|(2)Capital contribution and||||||
||74,482,543.00|1,855,144,194.77|0.00|0.00|1,929,626,737.77|
|withdrawals by owners||||||
|Capital contribution by owners|74,482,543.00|1,854,582,870.47|0.00|0.00|1,929,065,413.47|
|Others|0.00|561,324.30|0.00|0.00|561,324.30|
|(3)Profit distribution|0.00|0.00|36,460,337.10|-101,734,086.84|-65,273,749.74|
|Appropriation to surplus reserves|0.00|0.00|36,460,337.10|-36,460,337.10|0.00|
|Profit distribution to shareholders||||||
||0.00|0.00||-65,273,749.74|-65,273,749.74|
|(or equity owners)||||||
|4. Balance at 31 December 2014|362,631,943.00|1,869,692,921.70|181,315,971.50|1,594,838,169.39|4,008,479,005.59|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 III.Profile of company
China National Accord Medicines Co., Ltd. (hereinafter referred to as the “the Company”), formerly known as Shenzhen Health Mineral Water Co., Ltd., was approved by thePeople’s Government of Shenzhen with SFBF (1993) No.356 document to establish on 1 February 1993 through stock restructure as a company limited by shares. In March 1993, with the approval from the Shenzhen Branch of thePeople’s Bank of China, the Company issued 30 million A-shares (including 16.5 million public shares, 3.5 million employee shares and 10 million corporation shares) and 20 million B-shares. After this issuance, theCompany’s share capital was RMB105 million. Through transfer of capital surplus to share capital and bonus issues for years, the share capital of the Company increased to RMB362,631,900. up to 30 June 2015.
In November 2000, the Company entered into an Assets Exchange Agreement with Shenzhen Investment Management Company, the original main shareholder of the Company, to exchange all the assets and liabilities of the Company as of 31 August 2000 for Shenzhen Investment ManagementCompany’s100% equity interests in 11 pharmaceutical companies and certain properties as well as51% equity interests in Shenzhen Tefa Modern Computer Co., Ltd. On December 29, 2000, the above assets exchange proposal was approved byshareholder’s voting in the second extraordinary general meeting in 2000. The transaction was completed on 8 January 2001.
On 18 February 2004, theCompany’s original main shareholder, Shenzhen Investment Management Company, entered into a Stock Transfer Agreement with Sinopharm Group Co., Ltd. (hereinafter referred to as “Sinopharm Group”) to transfer its43.33% shares in the Company to Sinopharm Group. The legal procedures of the above equity transfer were completed on 9 December 2004. At the same time, as approved by GZCQ (2004) No.525 document from the State-owned Assets Supervision and Administration Commission of the State Council and ZJGSZ (2004) No.94 document from the China Securities Regulatory Commission, the nature of these shares was transferred from state-owned stock to state-owned legal entity stock and Sinopharm Group became the top shareholder of the Company. On 14 April 2006, theCompany’s proposal on reformation of segregated stocks was approved. To gain liquidity for the restricted stocks of the Company, the holders of the restricted stocks of the Company agreed to pay the following consideration: based on the stock registration as of 27 April 2006, the Company issued bonus shares on 28 April 2006 at the ratio of 3 shares to every 10 A-shares to liquidated A-share holders which went public on the same day. After this bonus issue, the total number of shares of the Company remained unchanged with corresponding changes in the composition of share holdings. In March 14, 2014, the company issued 74,482,543ordinary shares (A shares) through the non public offering. Par value per share is RMB 1 yuan. The shares shall not be transferred within 36 months since the issued day. As of 30 June, 2015, the total share capital was 362,631,943.
The approved scope of business of the Company and its subsidiaries (together “the Group”) includes wholesale of traditional Chinese medicine preparations, bulk pharmaceutical drugs, chemical preparations, bulk antibiotic drugs, antibiotic preparations, biochemical drugs, biological products (including vaccines and in vitro diagnostic reagents), psychotropic drugs and preparations, narcotic drugs, toxic drugs for medical use, protein assimilation preparation and peptide hormones; trade of dietary supplement; research, development and consultation services of pharmaceutical packaging materials and
pharmaceutical industry products; industrial investment holding; domestic trade (other than special licensing), sale of ambulances; trade of second-class and third- class medical equipments; project investment; property management and lease of self-owned properties; pharmacovigilance and medical information consulting; parking operation; logistics and related services; package agency business; logistic design; operating various types of goods and import and export of technology (not attached directory of import and export commodities), but excluded the import and export of goods and technology
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 the State limits or prohibit the company.
The Company is registered with Shenzhen Administration for Industry& Commerce. Its business license number is 440301103040048 and the serial number of the license is N24657. The operation period of the Company is from 2 August 1986 to 2 August 2036. The registered capital of the Company is RMB362, 631,900. The legal representative of the Company is Yan Zhigang.
These financial statements were authorised for issue by the board of directors of the Company on 18 August, 2015.
||
|-|
|Subsidiaries consolidated in the financial statements are listed in Note IX.|
|New subsidiaries include Sinopharm Holding Guangzhou Medical Management Co., Ltd. (here after|
|referred as “Guangzhou Medical”) (Note VIII).|

IV.Basis of preparation
1. Basis of preparation
The financial statements were prepared in accordance with the Basic Standard and specific standards of the Accounting Standards for Business Enterprises issued by the Ministry of Finance on 15 February 2006 and those updated afterwards, and other relevant regulations issued thereafter (hereafter collectively referred to as the “Accounting Standards for Business Enterprises” or “CAS”), and the disclosure requirements in the Preparation Convention of Information Disclosure by Companies Offering Securities to the Public No.15– General Rules on Financial Reporting issued by the China Securities Regulatory Commission.
2. Going concern
This financial statement is prepared on the basis of going concern.
V.Summary of significant accounting policies and accounting estimates
The group determines the specific accounting policies and accounting estimates according to the production management characteristics, shown mainly on the bad debt provision withdrawing method for account receivable, measurement of inventory, depreciation forPP&E and amortization for intangible asset, judgement basis for capitalization of development expenditure, measurement model for investment property, recognition timing of revenue.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the period ended 30 June 2015 are in compliance with the
Accounting Standards for Business Enterprises, and truly and completely present the financial position of
the Group and the Company as of 30 June 2015 and the operating results, cash flows and other
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 information of the Group and the Company for the period then ended.
2. Accounting period
TheCompany’s accounting year starts on 1 January and ends on 31 December.
3. Functional currency
The functional currency is Renminbi (RMB).
4. Business combinations involving enterprises under common control and Business combinations involving enterprises not under common control
(a) Business combinations involving enterprises under common control
The consideration paid and net assets obtained by the absorbing party in a business combination are measured at the carrying amount. The difference between the carrying amount of the net assets obtained from the combination and the carrying amount of the consideration paid for the combination is treated as an adjustment to capital surplus (share premium). If the capital surplus (share premium) is not sufficient to absorb the difference, the remaining balance is adjusted against retained earnings. Costs directly
attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for the business combination are included in the initially recognised amounts of the equity or debt securities.
(b) Business combinations involving enterprises not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a business combination are measured at fair value at the acquisition date. Where the cost of the combination exceeds theacquirer’s interest in the fair value of theacquirer’s identifiable net assets, the difference is recognised as goodwill; where the cost of combination is lower than theacquirer’s interest in the fair value of theacquirer’s identifiable net assets, the difference is recognised in profit or loss for the current period. Costs directly attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for the business combination are included in the initially recognised amounts of the equity or debt securities.
5. Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries.
Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the date that such control ceases. For a subsidiary that is acquired in a business combination involving enterprises under common control, it is included in the consolidated financial statements from the date when it, together with the Company, comes under common control of the ultimate controlling party.
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 The portion of the net profits realised before the combination date is presented separately in the consolidated income statement.
In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company and subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and the accounting period of the Company. For subsidiaries acquired from business combinations involving enterprises not under common control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net assets at the acquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. The portion of asubsidiary’s equity and the portion of asubsidiary’s net profits, losses and comprehensive income for the period not attributable to the Company are recognised as minority interests and presented separately in the consolidated financial statements within equity, net profits and total comprehensive income respectively. Unrealised gain or loss from selling assets to subsidiaries fully offsets the net income attributable to equity holders of the company. Unrealised gain or loss from purchasing assets from subsidiaries offsets the net income attributable to equity holders of the company and atrributable to the minority interest by the distribution proportion regarding the company and the subsidiary Unrealised gain or loss from transaction between subsidiaries offsets the net income attributable to equity holders of the company and atrributable to the minority interest by the distribution proportion regarding the company and the selling side of the subsidiaries.
If different recognition perspectives for the same transaction arise within different accounting identities setup, there is adjustment for the transaction from theGroup’s perspective.
6. Cash and cash equivalent
Cash and cash equivalent comprise cash on hand, deposits that can be readily drawn on demand, and short-term and highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.
7. Foreign currency translation
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the dates of the transactions.
At the balance sheet date, monetary items denominated in foreign currencies are translated into RMB using the spot exchange rates on the balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period, except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition or construction of qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currencies that are measured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of the transactions. The effect of exchange rate changes on cash is presented separately in the cash flow statement.
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 8. Financial Instruments
(a) Financial assets
(i) Classification of financial assets
Financial assets are classified into the following categories at initial recognition: financial assets at fair value through profit or loss, receivables, available-for-sale financial assets and held-to-maturity investments. The classification of financial assets depends on theGroup’s intention and ability to hold the financial assets. The Group currently holds the financial assets including receivables. Receivables, including notes receivables, accounts receivable and other receivables, are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.
(ii) Recognition and measurement
Financial assets are recognised at fair value on the balance sheet when the Group becomes a party to the contractual provisions of the financial instrument. The transaction expenses are included inreceivables’ original book value, which is measured at amortised cost using the effective interest method.
(iii) Impairment of financial assets
The Group assesses the carrying amounts of receivables other than those at fair value through profit or loss at each balance sheet date. If there is objective evidence that a financial asset is impaired, an impairment loss is provided for. The objective evidence are matters occur after the financial assets been recognised, affect its estimated future cash flow and could be measured accuractly by the Group. When an impairment loss on a financial asset carried at amortised cost has occurred, the amount of loss is provided for at the difference between theasset’s carrying amount and the present value of its estimated future cash flows (excluding future credit losses that have not been incurred). If there is objective evidence that the value of the financial asset recovered and the recovery is related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed and the amount of reversal is recognised in profit or loss.
(iv) Derecognition of financial assets
A financial asset is derecognised when any of the below criteria is met: (i) the contractual rights to receive the cash flows from the financial asset expire; (ii) the financial asset has been transferred and the Group transfers substantially all the risks and rewards of ownership of the financial asset to the transferee; or (iii) the financial asset has been transferred and the Group has not retained control of the financial asset, although the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset.
On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received and the cumulative changes in fair value that had been recognised directly in equity, is recognised in profit or loss.
(b) Financial liabilities
Financial liabilities are classified into the following categories at initial recognition: financial liabilities at fair
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 value through profit or loss and other financial liabilities. The financial liabilities of the Group mainly comprise other financial liabilities, including payables and borrowings
Payables, including notes payable, accounts payable and other payables, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
Borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently carried at amortised costs using the effective interest method.
Other financial liabilities with maturities no more than one year are classified as current liabilities. Other financial liabilities with maturities over one year but are due within one year at the balance sheet date are classified as the current portion of non-current liabilities. Others are classified as non-current liabilities. A financial liability is derecognised or partly derecognised when the current obligation is discharged or partly discharged. The difference between the carrying amount of the financial liability or the derecognised part of the financial liability and the consideration paid is recognised in profit or loss.
9. Receivables
(1)Receivables with amounts that are individually significant and subject to separate assessment for provision for bad debts
|||
|-|-|
||Receivables with amounts that are individually significant|
||are subject to assessment for impairment on the individual|
||basis. If there exists objective evidence that the Group will|
|The criterion for determing individually significant amounts|not be able to collect the amount under the original terms, a|
||provision for impairment of that receivable is made.|
||The criterion for determing individually significant amounts|
||is that any individual amount is more than RMB5 million.|
||The amount of the present value of the future cash flows|
|The method of providing for bad debts for those individually||
||expected to be derived from the receivable below its|
|significant amounts||
||carrying amount.|

(2)Receivables that are subject to provision for bad debts on the grouping basis
|||
|-|-|
|Grouping basis|provision for bad debts|
|Receivables with amounts that are not individually||
|significant and those receivables that have been||
|individually assessed for impairment and have not been|The ageing of receivables|
|found impaired are classified into certain groupings based||
|on their credit risk characteristics.||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 Provisions for impairment of the receivables which have a similar risk level are analysed below:
||||
|-|-|-|
||Provision ratios used for accounts|Provision ratios used for other|
|Aging|||
||receivables|receivables|
|Within 1 year (including 1 year )|0.00%|0.00%|
|1 to 2 years|5.00%|5.00%|
|2 to 3 years|10.00%|10.00%|
|More than 3 years|20.00%|20.00%|

 (3)Receivables with amounts that are not individually significant but subject to separate assessment for provision for bad debts
|||
|-|-|
||There exists objective evidence that the Group will not be|
|The reason for making separate assessment for provision||
||able to collect the amount under the original terms of the|
|for bad debts||
||receivable.|
||The provision for bad debts is determined based on the|
||amount of the present value of the future cash flows|
|The provision for bad debts||
||expected to be derived from the receivable below its|
||carrying amount.|

10. Inventories
(a) Classification
Inventories include raw materials, work in progress, finished goods, delegate processing supplies and turnover materials, and are measured at the lower of cost and net realisable value.
(b) Costing of inventories
Cost is determined on the weighted average method. The cost of finished goods and work in progress comprises raw materials, direct labour and an allocation of systematically allocated overhead expenditures incurred based on normal operating capacity.
(c) Basis for determining net realisable values of inventories and method for making provision for decline in the value of inventories
Provisions for declines in the value of inventories are determined at the excess amount of the carrying value of the inventories over their net realisable value. Net realisable value is determined based on the estimated selling price in the ordinary course of business, less the estimated costs to completion and estimated costs necessary to make the sale and related taxes.
(d) The Group adopts the perpetual inventory system.
(e) Amortisation methods of low value consumables and packaging materials
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 Turnover materials include low value consumables and packaging materials, which are expensed when issued.
11. Long-term equity investments
Long-term equity investments comprise theCompany’s long-term equity investments in its subsidiaries and theGroup’s long-term equity investments in its associates.
Subsidiaries are the investees over which the Company is able to exercise control. Associates are the investees that the Group has significant influence on their financial and operating policies.
Investments in subsidiaries are measured using the cost method in theCompany’s financial statements, and adjusted by using the equity method when preparing the consolidated financial statements. Interests in associates are accounted for using the equity method.
(a) Determination of investment cost
For long-term equity investments acquired through a business combination: for long-term equity investments acquired through a business combination involving enterprises under common control, the investment cost shall be the absorbingparty’s share of the carrying amount ofowners’ equity of the party being absorbed at the combination date; for long-term equity investment acquired through a business combination involving enterprises not under common control, the investment cost shall be the combination cost.
(b) Subsequent measurement and recognition of related profit and loss
For long-term equity investments accounted for using the cost method, they are measured at the initial investment costs, and cash dividends or profit distribution declared by the investees are recognised as investment income in profit or loss.
For long-term equity investments accounted for using the equity method, where the initial investment cost of a long-term equity investment exceeds theGroup’s share of the fair value of theinvestee’s identifiable net assets at the acquisition date, the long-term equity investment is measured at the initial investment cost; where the initial investment cost is less than theGroup’s share of the fair value of theinvestee’s identifiable net assets at the acquisition date, the difference is included in profit or loss and the cost of the long-term equity investment is adjusted upwards accordingly.
For long-term equity investments accounted for using the equity method, the Group recognises the investment income according to its share of net profit or loss of the investee. The Group discontinues recognising its share of net losses of an investee after the carrying amount of the long-term equity investment together with any long-term interests that, in substance, form part of theinvestor’s net investment in the investee are reduced to zero. However, if the Group has obligations for additional losses and the criteria with respect to recognition of provisions under the accounting standards on contingencies are satisfied, the Group continues recognising the investment losses and the provisions. For changes in
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015owners’ equity of the investee other than those arising from its net profit or loss, other comprehensive income, and profit distribution, the Group adjusts the book value of the investment and records capital surplus accordingly. The carrying amount of the investment is reduced by theGroup’s share of the profit distribution or cash dividends declared by an investee. The unrealised profits or losses arising from the intra-group transactions amongst the Group and its investees are eliminated in proportion to theGroup’s equity interest in the investees, and then based on which the investment gains or losses are recognised. For the loss on the intra-group transaction amongst the Group and its investees attributable to asset impairment, any unrealised loss is not eliminated.
(c) Basis for determing existence of control, jointly control or significant influence over investees Control is the power to govern the financial and operating policies of the investee so as to obtain benefits from its operating activities. In determining whether the Company is able to exercise control over the investee, the effect of potential voting rights over the investee is considered, such as convertible debts and warrants currently exercisable, etc.
Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies.
(d) Impairment of long-term equity investments
The carrying amount of long-term equity investments in subsidiaries and associates is reduced to the recoverable amount when the recoverable amount is less than the carrying amount.
12. Investment properties
Investment properties, including land use rights that have already been leased out, buildings that are held for the purpose of leasing, and buildings that are being constructed or developed for the purpose of leasing in future, are measured initially at cost. Subsequent expenditures incurred in relation to an investment property are included in the cost of the investment property when it is probable that the associated economic benefits will flow to the Group and their costs can be reliably measured; otherwise, the expenditures are recognised in profit or loss in the period in which they are incurred.
The Group adopts the cost model for subsequent measurement of investment properties. Buildings and land use rights are depreciated or amortised to their estimated net residual values over their estimated useful lives. The estimated useful lives, the estimated net residual values that are expressed as a percentage of cost and the annual depreciation (amortisation) rates of investment properties are as follows:
|||||
|-|-|-|-|
||||Annual depreciation (amortisation)|
||Estimated useful lives|Estimated residual value||
||||rates|
|Buildings|20-35 years|5%|2.71% to 4.75%|
|Land use rights|30-50 years|0%|2.00% to 3.33%|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 When an investment property is transferred to owner-occupied properties, it is reclassified as fixed asset or intangible asset at the date of the transfer. When an owner-occupied property is transferred out for earning rentals or for capital appreciation, the fixed asset or intangible asset is reclassified as investment properties at its carrying amount at the date of the transfer.
The investmentproperty’s estimated useful life, net residual value and depreciation (amortisation) method applied are reviewed and adjusted as appropriate at each year-end.
An investment property is derecognised on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. The net amount of proceeds from sale, transfer, retirement or damage of an investment property after its carrying amount and related taxes and expenses is recognised in profit or loss for the current period.
The carrying amount of an investment property is reduced to the recoverable amount if the recoverable amount is below the carrying amount .
13. Fixed assets
(1)Conditions
Recoginition and initial measurement of fixed assets
Fixed assets comprise buildings, machinery and equipment, motor vehicles, other equipment and leasehold improvements.
Fixed assets are recognised when it is probable that the related economic benefits will flow to the Group and the costs can be reliably measured. Fixed assets purchased or constructed by the Group are initially measured at cost at the acquisition date. The fixed assets contributed by the State shareholders at the reorganisation of the Company into a corporation entity are recognised based on the revaluated amounts approved by the state-owned assets administration department.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the associated economic benefits will flow to the Group and the related cost can be reliably measured. The carrying amount of the replaced part is derecognised. All the other subsequent expenditures are recognised in profit or loss in the period in which they are incurred.
(2)Depreciation methods
||||||
|-|-|-|-|-|
||||Estimated residual|Annual|
||Depreciation methods|Estimated useful lives|||
||||value|depreciation rates|
|Buildings|straight-line method|20-35 years|5%|2.71% to 4.75%|
|Machinery and|||||
||straight-line method|5-14 years|5%|6.79% to 19%|
|equipment|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||
|-|-|-|-|-|
|Motor vehicles|straight-line method|5-10 years|5%|9.50% to 19.00%|
|Other equipment|straight-line method|3-10 years|5%|9.50% to 31.67%|
|Leasehold|||||
||straight-line method|Within 5 years|0%|Above 20.00%|
|improvements|||||

14. Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction costs, installation costs, borrowing costs that are eligible for capitalisation and other costs necessary to bring the fixed assets ready for their intended use. Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and depreciation begins from the following month. The carrying amount of construction in progress is reduced to the recoverable amount when the recoverable amount is less than the carrying amount.
15. Borrowing costs
The borrowing costs that are directly attributable to the acquisition and construction of a fixed asset that needs a substantially long period of time for its intended use commence to be capitalised and recorded as part of the cost of the asset when expenditures for the asset and borrowing costs have been incurred, and the activities relating to the acquisition and construction that are necessary to prepare the asset for its intended use have commenced. The capitalisation of borrowing costs ceases when the asset under acquisition or construction becomes ready for its intended use and the borrowing costs incurred thereafter are recognised in profit or loss for the current period. Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of a fixed asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition or construction is resumed.
For the specific borrowings obtained for the acquisition or construction of a fixed asset qualifying for capitalisation, the amount of borrowing costs eligible for capitalisation is determined by deducting any interest income earned from depositing the unused specific borrowings in the banks or any investment income arising on the temporary investment of those borrowings during the capitalisation period. For the general borrowings obtained for the acquisition or construction of a fixed asset qualifying for capitalisation, the amount of borrowing costs eligible for capitalisation is determined by applying the weighted average effective interest rate of general borrowings, to the weighted average of the excess amount of cumulative expenditures on the asset over the amount of specific borrowings. The effective interest rate is the rate at which the estimated future cash flows during the period of expected duration of the borrowings or applicable shorter period are discounted to the initial amount of the borrowings. 16. Intangible assets
(1)Valuation method.Useful life.Impairment test
Intangible assets include land use rights, computer softwares, technology patents,trademarks and
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 distribution network, which initially recognised at cost. Intangible assets contributed by state-owned shareholders during the company reorganisation were recorded based on the valuation amount approved by the state-owned assets supervision and management department.
(a) Land use rights
A land use right granted by government with a infinite useful life would not be amortised. Other land use rights are amortised on the straight-line basis over their approved useful period. If the acquisition costs of land use rights and the buildings located thereon cannot be reliably allocated between the land use rights and the buildings, all of the acquisition costs are recognised as fixed assets.
(b) Computer softwares
Computer softwares purchased by the Group are initially measured at cost, which are amortised on the straight-line basis over their approved useful period of 3 to 5 years.
(c) Trademarks and Technology Patents
Trademarks are amortised on the straight-line basis over their effective periods as stipulated by law of 5 to 10 years. Technology Patents are amortised on the straight-line basis over their effective useful period of 5 years.
(d) Distribution network
Distribution network includes customer relationships and distribution channels, which is amortised on the straight-line basis over its approved useful live of 20 years.
(e) Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life, review of its useful life and amortisation method is performed at each year-end, with adjustment made as appropriate.
For an intangible asset without a definite useful life, review of its useful life are performed at each year-end.
(2)Internal research and development
(a) Research and development
The expenditure on an internal research and development project is classified into expenditure on the research phase and expenditure on the development phase based on its nature and whether there is material uncertainty that the research and development activities can form an intangible asset at end of the project.
Expenditure for investigation, evaluation and selection of production process researches is recognised in profit or loss in the period in which it is incurred. Expenditure on the designation, measurement of the final utilization of the production process before mass production, is capitalised only if all of the following conditions are satisfied:
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 development of the production process has been fully demonstrated by the technical team;
 management has approved the budget of drug production development;
 market research analysis suggests that the products produced by the new production technology are able to be promoted;
 adequate technical, financial and other resources to complete the development and the ability to use or sell the intangible asset; and
 the expenditure attributable to the intangible asset during its development phase can be reliably measured.
Other development expenditures that do not meet the conditions above are recognised in profit or loss in the period in which they are incurred. Development costs previously recognised as expenses are not recognised as an asset in a subsequent period. Capitalised expenditure on the development phase is presented as development costs in the balance sheet and transferred to intangible assets at the date that the asset is ready for its intended use.
17. Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives, long-term prepaid expenses and investment properties measured using the cost model and long-term equity investments in subsidiaries, joint ventures and associates are tested for impairment if there is any indication that an asset may be impaired at the balance date. If the result of the impairment test indicates that the recoverable amount of the asset is less than its carrying amount, a provision for impairment and an impairment loss are recognised for the amount by which theasset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of anasset’s fair value less costs to sell and the present value of the future cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognised on the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest group of assets that is able to generate independent cash inflows. Goodwill that is separately presented in the financialstatements，intangible assets with infinite useful lives and capitalized development expenditures are tested at least annually for impairment, irrespective of whether there is any indication that it may be impaired. In conducting the test, the carrying value of goodwill is allocated to the related asset groups or groups of asset groups which are expected to benefit from the synergies of the business combination. If the result of the test indicates that the recoverable amount of an asset group or group of asset groups, including the goodwill allocated, is lower than its carrying amount, the corresponding impairment loss is recognised. The impairment loss is first deducted from the carrying amount of goodwill that is allocated to the asset group or group of asset groups, and then deducted from the carrying amounts of other assets within the asset groups or groups of asset groups in proportion to the carrying amounts of other assets.
Once the above asset impairment loss is recognised, it will not be reversed for the value recovered in the subsequent periods.
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 18. Long-term prepaid expenses
Long-term prepaid expenses include the expenditure for improvements to fixed assets under operating leases, and other expenditures that have been made but should be recgonised as expenses over more than one year in the current and subsequent periods. Long-term prepaid expenses are amortised on the straight-line basis over the expected beneficial period and are presented at actual expenditure net of accumulated amortisation.
19. Employee benefit
(1)Short-term employee benefits
Short-term employee benefits include wages or salaries, bonus, allowances and subsidies, staff welfare, medical insurance, work injury insurance, maternity insurance, housing funds, and union running costs and employee education costs. The employee benefits are recognised in the accounting period in which the service has been rendered by the employees, and as costs of assets or expenses to whichever the employee service is attributable.
(2)Post-employment benefits
The Company classifies post-employment benefit plans into either defined contribution plans and defined benefit plans. Defined contribution plans are post-employment benefit plans under which the Company pays fixed contributions into a separate fund and will have no obligation to pay further contributions; and defined benefit plans are post-employment benefit plans other than defined contribution plans. During the reporting period, the Company's post-employment benefits mainly include basic pensions, unemployment insurance and enterprise annuity, both of which belong to the defined contribution plans.
Basic pensions
TheCompany’s employees participate in the defined basic pension insurance plan set up and administered by local labour and social protection authorities. Basic pensions are provided monthly according to stipulated bases and proportions to local labour and social security institutions. When employees retire, local labour and social security institutions have a duty to pay the basic pension insurance to them. The amounts payable are recognised as liabilities based on the above provisions in the accounting period in which the service has been rendered by the employees, and as costs of assets or expenses to whichever the employee service is attributable.
(3)Termination benefits
The group recognizes the debt and the gain or loss, when offering compensation for terminating the labor contract before the due date, or encouraging the staff to resign voluntarily, at the earlier date when the group cannot unilaterally withdraw the labor relation plan or recognize the cost relating to recombinant involving the payment of termination benefits.
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 Retirement benefits
The group provides retirement benefits to employees who accept the internal retirement arrangements. Retirement benefits refer to the salary and social security contributions provided to those staff who voluntarily quit the job with approval from the management team, before the retirement age. The group offers retirement benefits from the date when the arrangement begins, to the date when the staff reaches the retirement age. The group accounts the retirement benefits referring to the accounting treatment for the termination benefits. Liability including salary and social security contributions is recognized when conditions of termination benefits recognition meet, regarding to the period from the staff leaves the position to the normal retirement date. Difference arising from the changes in actuarial assumptions for retirement benefits and adjustments in welfare standard, will be accounted in the current profits and losses.
Retirement benefits that are expected to be paid within one year from the balance sheet date is disclosed as current liability.
20. Provisions
Provisions for product warranties, onerous contracts etc. are recognised when the Group has a present obligation, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be measured reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation. Factors surrounding a contingency, such as the risks, uncertainties and the time value of money, are taken into account as a whole in reaching the best estimate of a provision. Where the effect of the time value of money is material, the best estimate is determined by discounting the related future cash outflows. The increase in the discounted amount of the provision arising from passage of time is recognised as interest expense.
The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect the current best estimate.
21. Revenue
The amount of revenue is determined in accordance with the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of theGroup’s activities. Revenue is shown net of discounts and returns.
Revenue can be recognized on condition that the transaction-related economic interest is expected to be satisfied, the amount is able to reliably measured, and the following recognition conditions are met: (a) Sale of goods
Revenue from the sale of goods is recognised when significant risks and rewards of ownership of the
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 goods are transferred to the buyer, the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold, and it is probable that the economic benefit associated with the transaction will flow to the Company and the relevant revenue and costs can be measured reliably.
(b) Rendering of services
The Group providesfreight，storage and other service to external parties. The freights are recognised as revenue right after the goods are transported to the place of delivery according to contracts or agreements, received and confirmed by the purchasers. Other revenue is determined in accordance with the amount provided in the service period stipulated in the contract.
(c) Transfer of asset use rights
Interest income is determined by using the effective interest method, based on the length of time for which theGroup’s cash is used by others.
Income from an operating lease is recognised on a straight-line basis over the period of the lease. (d) Customer Loyalty Programme
The group offers loyalty points programmes where points earned through the purchase of goods can only be redeemed for goods provided by Shenzhen Zhijun Pharmaceutical Co., Ltd. or other free goods. The fair value of the consideration received or receivable in respect of the initial sale is allocated between the award credits and the other components of the sale. Fair value of award points is measured on the basis of the value of the awards (that is, goods or services) for which they could be redeemed, the fair value of the award credits should take account of expected forfeitures as well as the discounts or incentives that would otherwise be offered to customers who have not earned award credits from an initial sale. 22. Government grants
(1)Judging basis and accounting treatments of Related to assets Government grants
Government grants are transfers of monetary or non-monetary assets from the government to the Group at nil consideration, including refund of taxes and financial subsidies, etc.
A government grant is recognised when the conditions attached to it can be complied with and the government grant can be received. For a government grant in the form of transfer of monetary assets, the grant is measured at the amount received or receivable. For a government grant in the form of transfer of non-monetary assets, it is measured at fair value; if the fair value is not reliably determinable; the grant is measured at nominal amount.
A government grant related to an asset is grant received aimed to create long-term asset by contructing or other methods. And government grant related to income is any grant other than government grant related to an asset.
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 A government grant related to an asset is recognised as deferred income, and evenly amortised to profit or loss over the useful life of the related asset. Government grants measured at nominal amounts are recognised immediately in profit or loss for the current period.
(2)Judging basis and accounting treatments of Government grants related to income
For government grants related to income, where the grant is a compensation for related expenses or losses to be incurred by the Group in the subsequent periods, the grant is recognised as deferred income, and included in profit or loss over the periods in which the related costs are recognised; where the grant is a compensation for related expenses or losses already incurred by the Group, the grant is recognised immediately in profit or loss for the current period.
23. Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on the differences arising between the tax bases of assets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognised for the deductible losses that can be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax liability is recognised for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax liability is recognised for the temporary differences resulting from the initial recognition of assets or liabilities due to a transaction other than a business combination, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date, deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled.
Deferred tax assets are only recognised for deductible temporary differences, deductible losses and tax credits to the extent that it is probable that taxable profit will be available in the future against which the deductible temporary differences, deductible losses and tax credits can be utilised.
Deferred tax assets and liabilities are offset when:
- The deferred taxes are related to the same tax payer within the Group and the same taxation authority; and,
- That tax payer has a legally enforceable right to offset current tax assets against current tax liabilities. Deferred tax liabilities are recognised for temporary differences arising from investments in subsidiaries and associates, except where the Group is able to control the timing of the reversal of the temporary difference, and it is probable that the temporary difference will not reverse in the foreseeable future. When it is probable that the temporary differences arising from investments in subsidiaries and associates will be reversed in the foreseeable future and that the taxable profit will be available in the future against which the temporary differences can be utilised, the corresponding deferred tax assets are recognised.
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 24. Operating leases
Lease payments under an operating lease are recognised on a straight-line basis over the period of the lease, and are either capitalised as part of the cost of related assets or charged as an expense for the current period.
25. Other significant accounting policies and accounting estimates
(a) Governmental medical reserve funds and specially approved reserving materials
Appointed by the PRC Government, China National Pharmaceutical Group Corporation (“CNPGC") is responsible for purchasing, allocating and providing the governmental medical reserves, which include the medical products, traditional Chinese medicine and medical appliances for nation-wide emergency rescue and disaster relief. Appointed by the Government of Guangxi Province, Sinopharm Medicine Holding Guangxi Co., Ltd. (“Sinopharm Guangxi”), a subsidiary of the Company, is responsible for purchasing, allocating and providing the medical reserves, which include the medical products needed for common disease and emergencies triggered by major disasters, epidemics and other situations in Guangxi Province. In accordance with the regulation of CNPGC, as being the enterprise who bears the obligation for specially approved medical reserving materials, the medical reserve funds received from the PRC Government or local government are recognised in other Non-current liabilities. The Group reserves the specially approved medical reserving materials according to the reserve program (by category and by quantity), applies dynamic management and recognises in other non-current assets.
(b) Dividend distribution
Cash dividends distribution is recognised as a liability in the period in which it is approved by the annualshareholders’ meeting.
(c) Segment information
The Group identifies operating segments based on the internal organisation structure, management requirements and internal reporting system, and discloses segment information of reportable segments which is determined on the basis of operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (1) the component is able to earn revenues and incur expenses from its ordinary activities; (2) whose operating results are regularly reviewed by theGroup’s management to make decisions about resources to be allocated to the segment and to assess its performance, and (3) for which the information on financial position, operating results and cash flows is available to the Group. If two or more operating segments have similar economic characteristics and satisfy certain conditions, they are aggregated into one single operating segment.
(d) Critical accounting estimates
The Group continually evaluates the critical accounting estimates and key judgments applied based on
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 historical experience and other factors, including expectations of future events that are believed to be reasonable.
Critical accounting estimates and key assumptions
The critical accounting estimates and key assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next accounting year are outlined below:
(i) Accounting estimates on impairment of goodwill
The Group tests annually whether goodwill has suffered any impairment. The recoverable amount of asset groups and groups of asset groups is the present value of the future cash flows expected to be derived from them. These calculations require use of estimates.
If management revises the gross margin that is used in the calculation of the future cash flows of asset groups and groups of asset groups, and the revised gross margin is lower than the one currently used, the Group would need to recognise further impairment against goodwill and fixed assets.
If management revises the pre-tax discount rate applied to the discounted cash flows, and the revised pre-tax discount rate is higher than the one currently applied, the Group would need to recognise further impairment against goodwill and fixed assets.
If the actual gross margin/pre-tax discount rate is higher/lower thanmanagement’s estimates, the impairment loss of goodwill previously provided for is not allowed to be reversed by the Group.
(ii) Accounting estimates on impairment of accounts receivable
In accordance with theGroup’s accounting policy, theGroup’s management tests annually whether receivables have suffered any impairment, Impairment of receivables has been assessed by taking into account thecustomers’ credit history and financial position together with the current market conditions. Even if theGroup’s management has made bad debt provision for the expected loss at its best estimate, there is a possibility that changes incustomers’ financial position or market conditions will alter the result. (iii) Accounting estimates on impairment of inventories
In accordance with theGroup’s accounting policy, theGroup’s management estimates the net realizable value of the inventory. Net realisable value is determined based on the estimated selling price in the ordinary course of business, less the estimated costs to completion and estimated costs necessary to make the sale and related taxes. Even if theGroup’s management has made stock provision for the expected impairment at its best estimate, there is a possibility that changes in market conditions will alter the result.
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 VI.Taxation
1. The types and rates of taxes
||||
|-|-|-|
|Type|Taxable base|Tax rate|
|Value added tax (“VAT”)|Taxable value added amount (Tax||
||payable is calculated using the taxable||
||sales amount multiplied by the effective|0%.3%.6%.11%.13% or 17%|
||tax rate less deductible VAT input of||
||current period)||
|Business tax|Rental income, interest income and||
|||5%|
||etc.||
|City maintenance and construction tax|VAT and business tax|7%|
|Enterprise income tax (“EIT”)|Taxable income|10%.15%.25%|

The enterprises of different corporate income tax rate are disclosured as below:
|||
|-|-|
|Name of Companies|Income Tax Rate|
|Sinopharm Medicine Holding Zhijun(Shenzhen) Pingshan||
||15%|
|Pharmaceutical Co., Ltd.||
|Shenzhen Zhijun Pharmaceutical Co., Ltd.|15%|
|Sinopharm Medicine Holding Guangxi Co., Ltd.|15%|
|Sinopharm Holding Guangxi Logistics Co., Ltd.|15%|
|Sinopharm Holding Wuzhou Co., Ltd.|15%|
|Sinopharm Beihai|15%|
|Sinopharm Holding Yulin Co., Ltd.|15%|
|Sinopharm Holding Guangzhou Medical Management Co., Ltd|10%|

2. Tax preferences
In 2012, the subsidiary Sinopharm Medicine Holding Zhijun(Shenzhen) Pingshan Pharmaceutical Co., Ltd.(“Zhijun(Shenzhen) Pingshan”) obtained the certificate of High and New Technology Enterprises with effective period of 3 years, 2012 to 2014. As relevant preferential tax treatment has expires on December 31, 2014, Zhijun(Shenzhen) Pingshan has been renewing the certificate. Assuming there is no change on relevant laws and regulations, we consider Zhijun(Shenzhen) Pingshan still can got the certificate with effective period of 3 years, 2015 to 2017. Hence, Zhijun(Shenzhen) Pingshan uses the income tax rate of15% for the six months ended 30 June 2015.
In 2014, the subsidiary Shenzhen Zhijun Pharmaceutical Co., Ltd. (“Zhijun Medicine”) obtained the
certificate of High and New Technology Enterprises with effective period of 3 years, 2014 to 2016.
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 Under the relevant regulations of article 28 of the Corporate Income Tax Law, the applicable tax rates for Zhijun Medicine and Zhijun(Shenzhen) Pingshan in year 2015 are15% (2014:15%).
In 2014, the subdidiary Sinopharm Guangxi Logistics Co., Ltd (“Guangxi Logistics”) got the approval from local tax bureau of Guangxi Province, and was entitled with a Western Development preferential tax rate of15% from 1 January 2014 to 31 December 2020. In 2015, the subdidiary Sinopharm Holding Guangxi, Sinopharm Holding Beihai Co., Ltd(“Sinopharm Holding Beihai”), Sinopharm Holding Yulin Co., Ltd(“Sinopharm Holding Yulin”), Sinopharm Holding Wuzhou Co., Ltd(“Sinopharm Holding Wuzhou”) got the aforementioned approval as well. Hence, they were entitled with a preferential tax rate of15% from 1 January 2014 to 31 December 2020, from 28 February 2014 to 31 December 2020, from 1 January 2015 to 31 December 2020 and from 1 January 2015 to 31 December 2020, respectively.
In 2015, Guangzhou Medical, which was the ou established lately this year as a subsidiary of Sinopharm Holding Guangzhou, was treated as a small low-profit enterprise, and was entitled with a low income tax rate, which was10%.
VII.Notes to the consolidated financial statements
1. Cash at bank and on hand
Unit:RMB
||||
|-|-|-|
|Items|30 June 2015|31 December 2014|
|Cash on hand|77,018.59|41,627.16|
|Cash at bank|1,157,478,609.26|854,170,379.68|
|Other cash balances|4,315,545.18|13,350,108.70|
|Total|1,161,871,173.03|867,562,115.54|

 At 30 June 2015, other cash balances include deposits for bank acceptance notes and depostis for letter of credit.
2.Notes receivable
(1)Types of notes receivable
Unit:RMB
||||
|-|-|-|
|Items|30 June 2015|31 December 2014|
|Bank acceptance notes|277,058,160.24|260,984,531.31|
|Trade acceptance notes|236,470,445.54|358,010,908.78|
|Total|513,528,605.78|618,995,440.09|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 (2)As at the end of this period, pledged notes receivable
Unit:RMB
|||
|-|-|
|Items|The pledged notes receivables at the end of this period|
|Bank acceptance notes|4,929,266.00|
|Total|4,929,266.00|

 (3)As at the end of this period, the endorsed or the discounted undue notes receivables of the group
Unit:RMB
||||
|-|-|-|
|Items|Recognition terminated at the end of|Recognition not terminated at the end of|
||this period|this period|
|Bank acceptance notes|818,527,470.71|0.00|
|Trade acceptance notes|0.00|134,570,639.59|
|Total|818,527,470.71|134,570,639.59|

 3. Accounts receivable
(1)The accounts receivable and related provision for bad debts
Unit:RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||30 June 2015|||||31 December 2014|||||
||Carrying amount||Bad debt provision|||Carrying amount||Bad debt provision|||
|||||||||||Net|
|Types|amount|% of|amount|% of total|Net book|amount|% of total|amount|% of total||
|||||||||||book|
|||total|e|balance|value||balance||balance||
|||||||||||value|
|||balanc|||||||||
|individually|||16,137,611.94||||||||
|significant are|||||||||||
||38,112,28||||21,974,6|27,306,||17,714,7||9,592,0|
|subject to separate||0.48%||42.34%|||0.39%||64.87%||
||9.40||||77.46|785.00||27.50||57.50|
|impairment|||||||||||
|assessment|||||||||||
|receivable accounts||||||7,001,1||||7,000,7|
||7,791,68|98.84|1,934,0||7,789,75|||368,802.|||
|within similar credit||||0.02%||30,510.|99.40%||0.01%|61,707.|
||6,980.69|%|32.23||2,948.46|||84|||
|risk group||||||38||||54|
|individually not|||6,225,320.17||||||||
|significant but|||||||||||
||53,439,5||||47,214,2|14,714,||6,756,00||7,958,9|
|individually||0.68%||11.65%|||0.21%||45.91%||
||43.36||||23.19|908.91||0.76||08.15|
|evaluated for|||||||||||
|impairment|||||||||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||7,858,941,849.11|7,043,1||||7,018,312,673.19|
||7,883,23|100.00|24,296,|||||24,839,5|||
|Total||||0.31%||52,204.|100.00%||0.35%||
||8,813.45|%|964.34|||||31.10|||
|||||||29|||||

 As at the end of this period, impairment provision for accounts receivable individually significant are analysed:
Unit:RMB
||||||
|-|-|-|-|-|
|Accounts receivable(by|30 June 2015||||
|currency unit)|Accounts receivable|Bad debt provision|Rate|Assessment for impairment|
|Guangdong Liyuan||||Disputed receivable with|
|Pharmaceutical Co.,|14,517,375.00|14,517,375.00|100.00%|higher risk of recoverability|
|Ltd||||which has filed a lawsuit|
|Qinzhou Second||||High uncertainty in|
||11,793,056.40|589,652.82|5.00%||
|People's Hospital||||recoverability|
|Affiliated hospital of|||||
|||||High uncertainty in|
|Youjiang medical|6,539,414.40|326,970.72|5.00%||
|||||recoverability|
|college for Nationalities|||||
|Tibet Naqukanghui|||||
|||||High uncertainty in|
|Pharmaceutical Co.,|5,262,443.60|703,613.40|13.37%||
|||||recoverability|
|Ltd|||||
|Total|38,112,289.40|16,137,611.94|--|--|

Provisions for impairment of the receivables which have a similar risk level:
Unit:RMB
|||||
|-|-|-|-|
||30 June 2015|||
|Aging||||
||Accounts receivable|Bad debt provision|Rate|
|Within 1 year|7,754,118,802.17|0.00|0.00%|
|1 to 2 years|36,482,005.89|1,824,100.31|5.00%|
|2 to 3 years|1,073,026.03|107,302.60|10.00%|
|Over 3 years|13,146.60|2,629.32|20.00%|
|Total|7,791,686,980.69|1,934,032.23|0.02%|

 (2)Recovered or reversed bad debt amount, and Bad debt provision in this period
Bad debt provision in this year is RMB2,086,948.76. Recovered or reversed bad debt amount adds up to RMB2,629,515.52.
Important recovered or reversed bad debt items are listed below:
Unit:RMB
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||
|-|-|-|
|Name of company|Recovered or reversed amount|Way of recovery|
|Tibet Naqukanghui Pharmaceutical|||
||2,493,739.10|Amount received|
|Co., Ltd|||
|Zengcheng Zhengguo Institute of|||
||13,526.22|Amount received|
|health|||
|Conghua City, Jiang Po Street|||
||60,843.00|Amount received|
|Community Health Service Center|||
|Total|2,568,108.32|--|

(3)As at 30 June 2015, the top five accounts receivable by customer are summariesd as below:
|||||
|-|-|-|-|
|As at 30 June 2015, the top five accounts receivable by customer are summariesd as below:||||
|||Bad debt provision||
||Amount||% of the total accounts receivable|
|||amount||
|Total amount of the top five||||
||593,390,063.69|450.00|7.53%|
|accounts receivables||||

(4)Analysis of account receivables that are terminated recognition due to financial asset transfer: By 30 June 2015, accounts receivable of RMB70,499,859.45 has been factored to financial institute(2014 semi-annual: RMB912,614,815.13). The corresponding loss is RMB1,673,457.26 (2014 semi-annual: RMB15,939,629.04).
4. Advances to suppliers
(1)The aging of advances to suppliers is analysed below:
Unit:RMB
||||||
|-|-|-|-|-|
||30 June 2015||31 December 2014||
|Aging|||||
||amount|% of total balance|amount|% of total balance|
|Within 1 year|107,181,913.91|99.78%|95,744,012.90|99.69%|
|1 to 2 years|54,628.60|0.05%|66,286.50|0.07%|
|2 to 3 years|200.00|0.00%|213,144.00|0.22%|
|Above 3 years|179,355.00|0.17%|19,711.00|0.02%|
|Total|107,416,097.51|--|96,043,154.40|--|

(2)The top five advances to suppliers by customer are summarized
||||
|-|-|-|
|As at 30 June 2015, the top five advances to suppliers by customer are summarized as below:|||
||Amount|Proportion of total balance|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||
|-|-|-|
|Total amount of top five advances to|44,975,556.30|41.87%|
|suppliers|||

5. Dividends receivable
Unit:RMB
||||
|-|-|-|
|Projects(or investees)|30 June 2015|31 December 2014|
|Shenzhen Wanle Medical Co.,Ltd.(“Wanle Medical”)|||
||35,190,000.00|0.00|
|Total|35,190,000.00|0.00|

 6. Other receivables
(1)Other receivables and related provision for bad debts by category:
Unit:RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||30 June 2015|||||31 December 2014|||||
||Carrying amount||Bad debt provision|||Carrying amount||Bad debt provision|||
|Types|||||Net book|||||Net book|
|||% of total|||||% of total||||
||||||value|||||value|
||amount|amount|amount|rate||amount|amount|amount|rate||
|Individually|||||||||||
|significant are|||||||||||
||8,980,0||8,980,00|100.00||8,980,0||8,980,00|||
|subject to separate||17.28%|||0.00||22.23%||100.00%|0.00|
||00.00||0.00|%||00.00||0.00|||
|impairment|||||||||||
|assessment|||||||||||
|Receivable accounts|||||||||||
||38,092,||290,150.||37,802,2|25,447,||219,614.||25,227,573.|
|within similar credit||73.29%||0.76%|||63.01%||0.86%||
||414.75||82||63.93|187.91||23||68|
|risk group|||||||||||
|Individually not|||||||||||
|significant but|||||||||||
||4,899,4||1,884,03||3,015,43|5,959,9||2,612,55||3,347,354.2|
|individually||9.43%||38.45%|||14.76%||43.84%||
||78.95||9.51||9.44|05.13||0.91||2|
|evaluated for|||||||||||
|impairment|||||||||||
||51,971,||11,154,1||40,817,703.37|40,387,||11,812,1||28,574,927.90|
|Total||100.00%||21.46%|||100.00%||29.25%||
||893.70||90.33|||093.04||65.14|||

 As at 30 June 2015, impairment provision for other receivables individually significant:
Unit:RMB
||||||
|-|-|-|-|-|
||30 June 2015||||
|Other receivables(by company)|||||
||Other receivables|Bad debt provision|Rate|Assessment for|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||
|-|-|-|-|-|
|||||impairment|
|Shenzhen Yinghai Technology||||Uncertainty in|
||8,980,000.00|8,980,000.00|100.00%||
|Investment Co., Ltd.||||recoverability|
|Total|8,980,000.00|8,980,000.00|--|--|

Provisions for impairment of the receivables which have a similar risk group:
Unit:RMB
|||||
|-|-|-|-|
||30 June 2015|||
|Aging||||
||Other receivables|Bad debt provision|Rate|
|Within 1 year|35,276,001.51|0.00|0.00%|
|1 to 2 years|1,572,662.01|78,633.10|5.00%|
|2 to 3 years|372,325.35|37,232.54|10.00%|
|Over 3 years|871,425.88|174,285.18|20.00%|
|Total|38,092,414.75|290,150.82|0.00%|

 (2)Bad debt provision of Other receivables, Important recovered or reversed items this period Bad debt provision of Other receivables this period is RMB94,528.23with the recovered or reversed amount to be RMB201,854.32.
(3)Other receivables written off for the six months ended 30 June,2015
Other receivables written off for the six months ended 30 June, 2015 is RMB550,648.72.
(4)Other receivables by nature are analysed below:
Unit:RMB
||||
|-|-|-|
|Nature|30 June 2015|31 December 2014|
|Deposit|15,778,888.88|11,871,118.11|
|Petty cash advance to employees|9,539,942.63|6,131,979.57|
|Receivable of equity transaction|8,980,000.00|8,980,000.00|
|Receivable due from related party|1,596,860.68|1,899,766.89|
|Others|16,076,201.51|11,504,228.47|
|Total|51,971,893.70|40,387,093.04|

 (5)The top 5 parties that owe the largest amounts of other receivable balances
Unit:RMB
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||||
|-|-|-|-|-|-|
|Company Name|Nature|Balance|Aging|% of total amount|Provision of bad deb|
|Shenzhen Yinghai Technology|Receivable of equity|8,980,000.00||||
||||Over 5 years|17.28%|8,980,000.00|
|Investment Co., Ltd.|transaction|||||
|Guangzhou people's Court of||||||
|Yuexiu District ,Guangzhou,|Litigation deposit|5,388,080.00|Within 1 year|10.37%|0.00|
|Guangdong Province||||||
|Guangxi Autonomous Region||1,911,494.23||||
||Collective housing repair|||||
|Housing Reformed System|||Over 5 years|3.68%|0.00|
||funds|||||
|Finance Department||||||
|Sinopharm Group Medicine||||||
||deposit|1,215,000.00|1 to 2 years|2.34%|0.00|
|Logistic Co.,Ltd.||||||
|Shenzhen pharmaceutical||||||
|health care products import and|Operational transactions|1,157,860.00|Over 5 years|2.23%|1,157,860.00|
|Export Co.,Ltd.||||||
|Total|--|18,652,434.23|--|35.90%|10,137,860.00|

 7. Inventories
(1)Inventories by category
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
||30 June 2015|||31 December 2014|||
|Items|||||||
||Book value|Provision|Net book value|Book value|Provision|Net book value|
|Raw materials|118,658,121.30|3,602,497.94|115,055,623.36|144,596,922.64|3,596,085.79|141,000,836.85|
|Work in|||||||
||22,510,603.41|4,239,079.92|18,271,523.49|25,031,852.48|6,537,971.20|18,493,881.28|
|progress|||||||
|Finished goods|2,108,855,510.54|17,210,005.22|2,091,645,505.32|2,174,537,205.97|14,519,470.94|2,160,017,735.03|
|Consigned|||||||
|processing|881,565.64|0.00|881,565.64|1,288,334.79|0.00|1,288,334.79|
|materials|||||||
|Low cost|||||||
||1,476,730.37|207,572.98|1,269,157.39|1,551,729.58|19,254.66|1,532,474.92|
|consumables|||||||
|Total|2,252,382,531.26|25,259,156.06|2,227,123,375.20|2,347,006,045.46|24,672,782.59|2,322,333,262.87|

 (2)Provision for declines in value of inventories
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
||31 December|Current period increase||Current period decrease|||
|Items||||||30 June 2015|
||2014|Increases|Others|Reversal or written off|Others||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||||
|-|-|-|-|-|-|-|
|Raw materials|3,596,085.79|1,695,665.90|0.00|1,689,253.75|0.00|3,602,497.94|
|Work in progress|6,537,971.20|0.00|0.00|2,298,891.28|0.00|4,239,079.92|
|Finished goods|14,519,470.94|9,397,728.09|0.00|6,707,193.81|0.00|17,210,005.22|
|Low cost|||||||
||19,254.66|188,318.32|0.00|0.00|0.00|207,572.98|
|consumables|||||||
|Total|24,672,782.59|11,281,712.31|0.00|10,695,338.84|0.00|25,259,156.06|

 8. Other Current Asset
Unit:RMB
||||
|-|-|-|
|Items|30 June 2015|31 December 2014|
|Corporate income tax to be deducted|7,289,470.37|808,216.55|
|VAT to be deducted|12,055,577.86|39,475,078.08|
|Other|0.00|25,296.84|
|Total|19,345,048.23|40,308,591.47|

 9. Long-term equity investments
Unit:RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Increases/(Decreases)||||||
||31 December||||||Provision|
|Investees||Additional|Share of|Dividend|Provision of|30 June 2015||
||2014||||||ending|
|||investment|profit or loss|declared|impairment|||
||||||||balance|
|Associates||||||||
|Shenzhen Wanle||||||||
||157,604,846.85|0.00|28,160,061.44|35,190,000.00|0.00|150,574,908.29|0.00|
|Medical Co., Ltd.||||||||
|Sinopharm||||||||
|HoldingZhuhai|0.00|1,002,980.00|114,000.00|0.00|0.00|1,116,980.00|0.00|
|Co., Ltd.||||||||
|Sub total|157,604,846.85|1,002,980.00|28,274,061.44|35,190,000.00|0.00|151,691,888.29|0.00|
|Total|157,604,846.85|1,002,980.00|28,274,061.44|35,190,000.00|0.00|151,691,888.29|0.00|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 10. Investment Properties
Unit:RMB
|||||
|-|-|-|-|
|Items|Buildings|Land use rights|Total|
|I.Cost||||
|1.31 December 2014|148,033,589.95|21,829,816.24|169,863,406.19|
|2. Increase in Current period|11,626,330.36|0.00|11,626,330.36|
|Transferred from fixed assets|11,626,330.36|0.00|11,626,330.36|
|3. Decrease in Current period|3,155,759.25|825,876.78|3,981,636.03|
|Other outflow|3,155,759.25|825,876.78|3,981,636.03|
|4.30 June 2015|156,504,161.06|21,003,939.46|177,508,100.52|
|II.Accumulated depreciation/ amortisation||||
|1.31 December 2014|91,404,525.86|3,322,029.82|94,726,555.68|
|2. Increase in Current period|4,339,222.38|285,776.83|4,624,999.21|
|Provision or depreciation|3,611,236.42|285,776.83|3,897,013.25|
|Transferred from fixed assets|727,985.96|0.00|727,985.96|
|3. Decrease in Current period|2,685,594.38|280,587.79|2,966,182.17|
|Other outflow|2,685,594.38|280,587.79|2,966,182.17|
|4.30 June 2015|93,058,153.86|3,327,218.86|96,385,372.72|
|III.Provision for impairment loss||||
|1.31 December 2014|1,300,000.00|0.00|1,300,000.00|
|2. Increase in Current period|0.00|0.00|0.00|
|3.Decrease in Current period|0.00|0.00|0.00|
|4.30 June 2015|1,300,000.00|0.00|1,300,000.00|
|IV.Net book value||||
|1.30 June 2015 Net book value|62,146,007.20|17,676,720.60|79,822,727.80|
|2.31 December 2014 Net book value|55,329,064.09|18,507,786.42|73,836,850.51|

 In 2015 semi annual, the amount of depreciation and amortization were RMB3,897,013.25 (2014 semi annual:RMB2,752,681.18).
In 2015 semi annual, the Group changed the use of buildings with a carrying amount of RMB10,898,344.40 (Cost: RMB11,626,330.36, accumulated depreciation:RMB727,985.96) The relative fixed assets and intangible assets were respectively transferred into investment properties at the date of
change in use.
In 2015 semi annual, the Group changed the use of buildings with a carrying amount of RMB1,015,453.86
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 (Cost: RMB3,981,636.03, accumulated depreciation:RMB2,966,182.17) The relative investment properties were transferred into fixed assets and intangible assets respectively for self use at the date of change.
11. Fixed Assets
(1)Fixed Assets
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
|||Machinery and|||Leasehold||
|Items|Buildings||Motor vehicles|Other||Total|
|||equipment|||improvements||
|I.Cost:|||||||
|1.31 December|||||||
||542,206,947.63|490,373,556.86|56,105,467.78|207,135,443.61|30,798,145.75|1,326,619,561.63|
|2014|||||||
|2. Current period|||||||
||4,855,073.81|6,435,426.09|957,198.38|3,110,411.11|8,051,071.93|23,409,181.32|
|other additions|||||||
|(1)purchase|1,699,314.56|3,483,394.68|957,198.38|2,675,411.11|1,362,064.66|10,177,383.39|
|(2)Transfer from|||||||
|Construction in|0.00|2,952,031.41|0.00|435,000.00|6,689,007.27|10,076,038.68|
|Progress|||||||
|(3)Increase in|||||||
||0.00|0.00|0.00|0.00|0.00|0.00|
|Enterprise merger|||||||
|(4) Transfer to|||||||
|investment|3,155,759.25|0.00|0.00|0.00|0.00|3,155,759.25|
|properties|||||||
|3. Current period|||||||
||11,626,330.36|1,011,077.61|1,044,076.00|536,404.25|2,441,552.96|16,659,441.18|
|disposals|||||||
|(1)Disposal or|||||||
||0.00|1,011,077.61|1,044,076.00|536,404.25|2,441,552.96|5,033,110.82|
|dumping|||||||
|(2)Transfer to|||||||
|investment|11,626,330.36|0.00|0.00|0.00|0.00|11,626,330.36|
|properties|||||||
|4.30 June 2015|535,435,691.08|495,797,905.34|56,018,590.16|209,709,450.47|36,407,664.72|1,333,369,301.77|
|II. Accumulated|||||||
|depreciation|||||||
|1.31 December|||||||
||142,633,804.31|235,009,650.93|33,060,080.55|128,375,890.50|18,665,819.09|557,745,245.38|
|2014|||||||
|2. Current period|||||||
||11,420,762.50|19,918,999.90|2,671,525.52|10,490,631.85|2,232,082.95|46,734,002.72|
|other additions|||||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||||
|-|-|-|-|-|-|-|
|(1)Provision|8,735,168.12|19,918,999.90|2,671,525.52|10,490,631.85|2,232,082.95|44,048,408.34|
|(2) Transfer to|||||||
|investment|2,685,594.38|0.00|0.00|0.00|0.00|2,685,594.38|
|properties|||||||
|3. Current period|||||||
||727,985.96|956,352.11|848,899.47|512,032.25|2,382,281.75|5,427,551.54|
|disposals|||||||
|(1)Disposal or|||||||
||0.00|956,352.11|848,899.47|512,032.25|2,382,281.75|4,699,565.58|
|dumping|||||||
|(2)Transfer to|||||||
|investment|727,985.96|0.00|0.00|0.00|0.00|727,985.96|
|properties|||||||
|4.30 June 2015|153,326,580.85|253,972,298.72|34,882,706.60|138,354,490.10|18,515,620.29|599,051,696.56|
|III. Provision for|||||||
|diminution in value|||||||
|1.31 December|||||||
||2,449,969.17|20,855,885.66|0.00|2,873.43|7,758.64|23,316,486.90|
|2014|||||||
|2. Current period|||||||
||0.00|0.00|0.00|0.00|0.00|0.00|
|other additions|||||||
|3. Current period|||||||
||0.00|39,350.15|0.00|0.00|0.00|39,350.15|
|disposals|||||||
|Disposal or|||||||
||0.00|39,350.15|0.00|0.00|0.00|39,350.15|
|dumping|||||||
|4.30 June 2015|2,449,969.17|20,816,535.51|0.00|2,873.43|7,758.64|23,277,136.75|
|IV. Net book value|||||||
|1.30 June 2015|||||||
||379,659,141.06|221,009,071.11|21,135,883.56|71,352,086.94|17,884,285.79|711,040,468.46|
|Net book value|||||||
|2.31 December|||||||
||397,123,174.15|234,508,020.27|23,045,387.23|78,756,679.68|12,124,568.02|745,557,829.35|
|2014 Net book value|||||||

(2)Temporary idle fixed assets
Unit:RMB
|||||||
|-|-|-|-|-|-|
|||accumulated|Provision of|Net book||
|Items|Cost||||Notes|
|||depreciation|impairment|value||
||||||Machinery and equipments subjected to|
||||||a provision by management in the past|
|machinery and|||||year because the machinery and|
||55,544,750.19|34,044,756.62|20,644,827.73|855,165.84||
|equipments|||||equipments were left temporarily idle|
||||||and expectedly no longer in use due to|
||||||the strategic adjustments of|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||
|-|
|productions.|

||||
|-|-|-|
|In 2015 semi annual, details of the depreciation are charged as below:|||
||For the six months ended 30 June 2015|For the six months ended 30 June 2014|
|Cost of goods sold|24,199,873.36|19,978,061.91|
|Selling expenses|2,710,530.24|1,016,530.46|
|General and administrative expenses|13,633,937.70|20,256,417.51|
|Research and development expenses|3,504,067.04|4,035,789.44|
|Total|44,048,408.34|45,286,799.32|

 12. Construction in progress
(1)Construction in progress
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
||30 June 2015|||31 December 2014|||
|Items|Carrying|Provision of|||Provision of||
||||Net book value|Carrying amount||Net book value|
||amount|impairment|||impairment||
|Pingshan|||||||
|Pharmaceutical|||||||
|Research &|369,661,249.55|0.00|369,661,249.55|298,665,439.18|0.00|298,665,439.18|
|Development|||||||
|Manufacturing Base|||||||
|Zhijun Production|||||||
|Workshop|||||||
|Technological|9,720,528.90|0.00|9,720,528.90|14,214,138.81|0.00|14,214,138.81|
|Transformation|||||||
|Project|||||||
|Sewage|||||||
|Transformation|6,062,283.79|0.00|6,062,283.79|6,062,283.79|0.00|6,062,283.79|
|Project etc|||||||
|Peinan Project|3,398,466.80|1,500,000.00|1,898,466.80|3,398,466.80|1,500,000.00|1,898,466.80|
|Other projects|13,697,748.83|0.00|13,697,748.83|9,378,367.98|0.00|9,378,367.98|
|Total|402,540,277.87|1,500,000.00|401,040,277.87|331,718,696.56|1,500,000.00|330,218,696.56|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 (2)Significant changes of construction in progress
Unit:RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Cost up|||Borrowing|||
|||||||||Constru|||Weighted||
|||||Transfer out|Current||to date||Accumulated|cost|||
|||31 December|Current period|||||ction in|||average|Financed|
|Name of Project|Budget of Project|||during|period|30 June 2015|out of||capitalized|capitalized|||
|||2014|additions|||||progress|||interest|by|
|||||current year|disposals||budget||borrowing cost|in 2015 semi|||
|||||||||(%)|||rate (%)||
||||||||(%)|||annual|||
|Pingshan Pharmaceutical||||||||||||Working|
|Researc& Development|881,370,300.00|298,665,439.18|70,995,810.37|0.00|0.00|369,661,249.55|42.00%|65%|15,738,784.07|7,274,927.93|5.48%|capital and|
|Manufacturing Base||||||||||||borrowings|
|Zhijun Production||||||||||||Working|
|Workshop Technological|105,340,000.00|14,214,138.81|4,649,009.96|9,142,619.87|0.00|9,720,528.90|34.00%|39%|0.00|0.00|0.00%|capital|
|Transformation Project|||||||||||||
|Sewage Transformation||||||||||||Working|
||6,300,000.00|6,062,283.79|0.00|0.00|0.00|6,062,283.79|87.00%|99%|0.00|0.00|0.00%||
|Project etc.||||||||||||capital|
|||||||||||||Working|
|Peinan Project|40,000,000.00|3,398,466.80|0.00|0.00|0.00|3,398,466.80|28.00%|70%|0.00|0.00|0.00%||
|||||||||||||capital|
|||||||||||||Working|
|Other projects|0.00|9,378,367.98|5,777,231.05|933,418.81|524,431.39|13,697,748.83|0.00|0.00|0.00|0.00|0.00%||
|||||||||||||capital|
|Total|1,033,010,300.00|331,718,696.56|81,422,051.38|10,076,038.68|524,431.39|402,540,277.87|--|--|15,738,784.07|7,274,927.93|5.48%|--|

 In 2015 semi annual, the amounts that construction in progress transferred into fixed asset were RMB10,076,038.68 (2014 semi annual:
RMB16,173,324.53), and long term prepaid expense were RMB524,431.39 (2014 semi annual: RMB5,331,507.83).
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 13. Intangible asset
(1)Intangible asset
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
|||Proprietary|Computer||||
|Items|Land use rights|||Trademarks|Sales network|Total|
|||technology|software||||
|I. Cost|||||||
|||||||255,590,952.5|
|1.31 December 2014|143,702,078.73|53,901,204.72|24,133,676.24|196,850.00|33,657,142.86||
|||||||5|
|2. Current period|||||||
||825,876.78|0.00|101,566.65|||927,443.43|
|additions||||0.00|0.00||
|(1)purchase|0.00|0.00|101,566.65|0.00|0.00|101,566.65|
|(2)Transferred from||0.00|0.00||||
||825,876.78|||||825,876.78|
|investment properties||||0.00|0.00||
|3. Current period|0.00|0.00|0.00|||0.00|
|decreases||||0.00|0.00||
|||||||256,518,395.9|
|4. 30 June 2015|144,527,955.51|53,901,204.72|24,235,242.89|196,850.00|33,657,142.86||
|||||||8|
|II. Accumulated amortization|||||||
|||||||107,942,246.4|
|1.31 December 2014|36,737,160.08|49,952,578.71|16,678,752.94|196,850.00|4,376,904.76||
|||||||9|
|2.Current period additions|1,723,345.09|160,190.28|1,377,048.75|0.00|841,428.58|4,102,012.70|
|(1)Provision|1,442,757.30|160,190.28|1,377,048.75|0.00|841,428.58|3,821,424.91|
|(2)Transferred from||0.00|0.00||||
||280,587.79|||||280,587.79|
|investment properties||||0.00|0.00||
|3.Current period|0.00|0.00|0.00|||0.00|
|decreases||||0.00|0.00||
|||||||112,044,259.1|
|4.30 June 2015|38,460,505.17|50,112,768.99|18,055,801.69|196,850.00|5,218,333.34||
|||||||9|
|III. Provision for impairment|||||||
|loss|||||||
|1.31 December 2014|0.00|3,000,000.00|264,952.19|0.00|0.00|3,264,952.19|
|2.Current period additions|0.00|0.00|0.00|0.00|0.00|0.00|
|3.Current period|0.00|0.00|0.00|||0.00|
|decreases||||0.00|0.00||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||||
|-|-|-|-|-|-|-|
|4.30 June 2015|0.00|3,000,000.00|264,952.19|0.00|0.00|3,264,952.19|
|IV. Net book value|||||||
|1.30 June 2015 Net book|||||28,438,809.52|141,209,184.6|
||106,067,450.34|788,435.73|5,914,489.01|0.00|||
|value||||||0|
|2.31 December 2014 Net|||||29,280,238.10|144,383,753.8|
||106,964,918.65|948,626.01|7,189,971.11|0.00|||
|book value||||||7|

 There is no intangible asset recognized through internal research and development for the six months ended 30 June 2015.
14. Expenditures on research and development
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
|||Current period additions||Current period decreases|||
||31 December|Expenditures on||Confirmed|||
|Projects|||||Recognized in|30 June 2015|
||2014|internal|Other|as Intangible|||
||||||profit and loss||
|||development||asset|||
|Projects of cardiovascular and|||||||
|cerebrovascular diseases|0.00|9,203,191.09|0.00|0.00|9,203,191.09|0.00|
|treatment subtotal|||||||
|Projects of respiratory system|||||||
||18,117.29|3,252,049.44|0.00|0.00|3,252,049.44|18,117.29|
|diseases treatment subtotal|||||||
|Projects of antibiotics preparation|||||||
|and powder injection projects|0.00|10,147,492.59|0.00|0.00|10,147,492.59|0.00|
|subtotal|||||||
|Projects of digestive system|||||||
||0.00|784,285.27|0.00|0.00|784,285.27|0.00|
|diseases treatment etc.|||||||
|Projects of antibiotics crude|||||||
||5,357,691.17|1,403,029.86|0.00|0.00|1,403,029.86|5,357,691.17|
|drugs etc.|||||||
|Projects of Chinese patent|||||||
||0.00|1,411,464.74|0.00|0.00|1,411,464.74|0.00|
|medicine|||||||
|Other Projects|243,507.01|7,439,064.41|0.00|0.00|7,439,064.41|243,507.01|
|Total|5,619,315.47|33,640,577.40|0.00|0.00|33,640,577.40|5,619,315.47|

 Expenditures on research and development incurred in 2015 semi annual amount to RMB33,640,577.40 (2014 semi annual: RMB32,143,996.40),the total amount is recognised in profit or loss for the current period, RMB 33,640,577.40 (2014 semi annual: RMB32,143,996.40) was recognized in profit and loss and as development cost.
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 15. Goodwill
(1)Goodwill cost
Unit:RMB
||||||
|-|-|-|-|-|
|||Current period additions|Current period decreases||
||31 December 2014|||30 June 2015|
|||Business combination|Disposal||
|Sinopharm Group|||||
|Zhijun(Suzhou)|33,869,393.32|0.00|0.00|33,869,393.32|
|Pharmaceutical Co.,Ltd.|||||
|Sinopharm Jiangmen|27,392,317.73|0.00|0.00|27,392,317.73|
|Sinopharm Yanfeng|16,868,644.87|0.00|0.00|16,868,644.87|
|Sinopharm Zhaoqing|2,594,341.53|0.00|0.00|2,594,341.53|
|Sinopharm Shaoguan|1,686,496.80|0.00|0.00|1,686,496.80|
|Sinopharm Meizhou|1,610,819.66|0.00|0.00|1,610,819.66|
|Sinopharm Huizhou|923,184.67|0.00|0.00|923,184.67|
|Sinopharm Zhanjiang|282,135.55|0.00|0.00|282,135.55|
|Sinopharm Dongguan|1,499.02|0.00|0.00|1,499.02|
|Total|85,228,833.15|0.00|0.00|85,228,833.15|

 (2)Provision of impairment loss
Unit:RMB
||||||
|-|-|-|-|-|
||31 December 2014|Current period additions|Current period decreases||
|||||30 June 2015|
|||Provision|Disposal||
|Sinopharm Group|||||
|Zhijun(Suzhou)|5,850,000.00|0.00|0.00|5,850,000.00|
|Pharmaceutical Co.,Ltd.|||||

The method of goodwill impairment testing process, parameter and recognition of impairment loss: The recoverable amount of asset groups and groups of asset groups is calculated by using the estimated cash flows according to the five-year budget approved by management. Management determines budgeted gross margin based on historical experience and forecast on market development. The discount rates determined by management are the pre-tax interest rates which reflect the risks specific to the related asset groups and groups of asset groups. The above assumptions are used to assess the recoverable amount of each asset group and group of asset groups within the corresponding operating segment.
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 16. Long term prepaid expense
Unit:RMB
|||||||
|-|-|-|-|-|-|
|||Current period|Current period|Other current period||
|Projects|31 December 2014||||30 June 2015|
|||additions|amortization|decreases||
|Leasehold||631,192.60|3,924,374.78||33,756,802.97|
|improvements|37,049,985.15|||0.00||
|Other|2,104,246.88|671,015.69|338,265.39|0.00|2,436,997.18|
|Total|39,154,232.03|1,302,208.29|4,262,640.17|0.00|36,193,800.15|

 17. Deferred income tax assets and deferred income tax liabilities
(1)Deferred income tax assets
Unit:RMB
||||||
|-|-|-|-|-|
||30 June 2015||31 December 2014||
|Projects|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||differences|assets|differences|assets|
|Provision for|||||
||83,987,447.48|19,550,683.04|85,594,942.59|20,930,880.12|
|impairment of assets|||||
|Deductible losses|112,951,621.20|26,733,778.60|96,865,385.40|23,331,434.22|
|Accrued expenses|76,744,301.48|12,937,865.54|56,704,614.52|9,771,547.36|
|Accrued payroll|39,765,973.43|8,525,803.34|59,051,247.05|13,595,697.03|
|Deferred revenue|73,336,376.37|10,873,434.87|82,178,700.44|13,634,799.37|
|Other|12,992,430.69|3,524,587.49|15,528,485.56|3,882,121.40|
|Total|399,778,150.65|82,146,152.88|395,923,375.56|85,146,479.50|

 (2)Deferred income tax liabilities
Unit:RMB
||||||
|-|-|-|-|-|
||30 June 2015||31 December 2014||
|Projects|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||differences|liabilities|differences|liabilities|
|Business combination|||||
|involving entities|||||
||37,533,864.40|9,383,466.10|38,630,083.24|9,657,520.81|
|not under common|||||
|control|||||
|Changes in fair value|41,700,386.71|10,265,203.43|43,284,539.27|10,821,134.82|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||
|-|-|-|-|-|
|Other|15,223,821.56|3,805,955.39|15,273,683.76|3,818,420.94|
|Total|94,458,072.67|23,454,624.92|97,188,306.27|24,297,076.57|

 (3)The net value of deferred income tax assets/liabilities after the offset
Unit:RMB
||||||
|-|-|-|-|-|
|||The net value of||The net value of|
||Offseting value of||Offseting value of||
|||deferred income tax||deferred income tax|
||deferred income tax||deferred income tax||
|Projects||assets/liabilities after||assets/liabilities after|
||assets/liabilities||assets/liabilities||
|||the offset||the offset|
||30 June 2015||31 December 2014||
|||30 June 2015||31 December 2014|
|Deferred income tax||82,146,152.88||85,146,479.50|
||0.00||0.00||
|assets|||||
|deferred income tax||23,454,624.92||24,297,076.57|
||0.00||0.00||
|liabilities|||||

(4)Unrecognised deferred tax assets
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2015|31 December 2014|
|deductible losses|1,627,172.87|1,627,172.87|
|Total|1,627,172.87|1,627,172.87|

 (5)Unrecognised deferred tax assets in respect of deductible losses due next year
Unit:RMB
|||||
|-|-|-|-|
|Year|30 June 2015|31 December 2014|Notes|
||||For those loss-making|
||||subsidiaries, as the large|
||||uncertainty of being able to gain|
||||enough taxable income to|
||||utilise the deductible losses in|
|2015|1,627,172.87|1,627,172.87|the future, the Group does not|
||||recognise deferred tax assets|
||||arising from accumulated|
||||losses amounting to RMB|
||||1,627,172.87tax deductible|
||||under the tax law.|
|Total|1,627,172.87|1,627,172.87|--|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 18. Other non-current assets
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2015|31 December 2014|
|Medical reserve fund|40,991,298.70|42,039,659.05|
|Prepayment for project and equipment|49,038,690.86|63,620,879.10|
|Non-monetary compensation of|||
||70,250,000.00|70,250,000.00|
|resettlement|||
|Total|160,279,989.56|175,910,538.15|

 19. Short term borrowings
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2015|31 December 2014|
|Guaranteed borrowings|483,029,496.81|459,757,465.32|
|Unsecured borrowings|1,363,329,300.55|966,752,021.57|
|Discounted notes|134,570,639.59|91,445,041.99|
|Total|1,980,929,436.95|1,517,954,528.88|

 On 30 June 2015, unsecured borrowings of RMB 1,318,329,300.55(31 December 2014: RMB966,752,021.57) are guaranteed by the Company and its subsidiaries, and unsecured borrowing of RMB5,000,000.00(31 December 2014: Nil) without a secured party. Meanwhile, unsecured borrowing of RMB40,000,000.00 is borrowed from the Sinopharm Group Financial Co., Ltd. (“Group Financial Co.”). On 30 June 2015, bank borrowings of RMB483,029,496.81 (31 December 2014: RMB459,757,465.32) are guaranteed by Sinopharm Group.
On 30 June 2015, the weighted average interest rate of short-term borrowings is5.16% per annum (31 December 2014:5.50%).
In 30 June 2015, there has been no unpaid due short-term borrowings (December 31, 2014: Nil). 20. Notes paybale
Unit:RMB
||||
|-|-|-|
|category|30 June 2015|31 December 2014|
|Trade acceptance notes|84,312,289.57|380,502,886.42|
|Bank acceptance notes|1,289,171,278.45|1,087,663,754.22|
|Total|1,373,483,568.02|1,468,166,640.64|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 21. Accounts payable
(1)Accounts payable
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2015|31 December 2014|
|Trafe paybale|4,341,666,286.09|3,988,878,234.03|
|Total|4,341,666,286.09|3,988,878,234.03|

 (2)Account payable aged over 1 year
Unit:RMB
||||
|-|-|-|
|||Reasons that accounts payable have not|
|Projects|30 June 2015||
|||been settled|
|Trade payable|117,267,739.44|Transactions were not closed yet.|
|Total|117,267,739.44|--|

22.Advances from customers
(1)Advances from customers
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2015|31 December 2014|
|Sales received in advance|44,995,822.24|40,339,905.63|
|Total|44,995,822.24|40,339,905.63|

 (2)Advances from customers aged over 1 year
Unit:RMB
||||
|-|-|-|
|||Reasons that accounts payable have not|
|Projects|30 June 2015||
|||been settled|
|Sales received in advance|838,999.27|Other|
|Total|838,999.27|--|

23. Employee benefits payable
(1)Employee benefits payable
Unit:RMB
||||||
|-|-|-|-|-|
|Projects|31 December 2014|Current period additions|Current period decreases|30 June 2015|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||
|-|-|-|-|-|
|1.Short term employee|||||
||168,068,439.41|257,019,483.59|319,167,959.18|105,919,963.82|
|benefits payable|||||
|2. Defined contribution|||||
||2,166,584.27|23,713,303.03|23,383,974.13|2,495,913.17|
|plans payable|||||
|3. Termination benefits|||||
||1,723,119.20|823,094.45|1,629,857.40|916,356.25|
|payable|||||
|Total|171,958,142.88|281,555,881.07|344,181,790.71|109,332,233.24|

 (2)Short term employee benefits payable
Unit:RMB
||||||
|-|-|-|-|-|
|Projects|31 December 2014|Current period additions|Current period decreases|30 June 2015|
|1.Wages and salaries,|||||
|bonuses, allowances|150,384,510.97|217,647,902.41|280,622,410.82|87,410,002.56|
|and subsidies|||||
|2.Staff welfare|973,559.02|10,051,487.39|10,879,915.40|145,131.01|
|3.Social security|||||
||355,247.78|10,538,816.65|10,560,455.72|333,608.71|
|contributions|||||
|Including:|||||
||300,176.39|8,698,124.94|8,743,930.26|254,371.07|
|Medical insurance|||||
|Work injury insurance|28,672.53|772,825.21|746,019.73|55,478.01|
|Maternity insurance|26,398.86|1,067,866.50|1,070,505.73|23,759.63|
|4.Housing funds|542,776.75|10,851,697.93|10,673,190.21|721,284.47|
|5.Labor union funds|||||
|and employee|14,939,701.87|7,399,732.45|5,704,360.88|16,635,073.44|
|education funds|||||
|6.Others|872,643.02|529,846.76|727,626.15|674,863.63|
|Total|168,068,439.41|257,019,483.59|319,167,959.18|105,919,963.82|

 (3)Defined contribution plans payable
Unit:RMB
||||||
|-|-|-|-|-|
|Projects|31 December 2014|Current period additions|Current period decreases|30 June 2015|
|1.Basic pensions|421,293.14|20,302,829.74|20,105,119.79|619,003.09|
|2.Unemployment|||||
||44,419.92|1,224,114.20|1,268,534.12|0.00|
|insurance|||||
|3.Supplementary|||||
||1,700,871.21|2,186,359.09|2,010,320.22|1,876,910.08|
|pensions|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||
|-|-|-|-|-|
|Total|2,166,584.27|23,713,303.03|23,383,974.13|2,495,913.17|

 (4)Termination benefits payable
||||
|-|-|-|
||30 June 2015|31 December 2014|
|Retirement benefits payable – within 1 year|437,621.37|1,115,000.00|
|Other dismission benefits(Note i)|478,734.88|608,119.20|
|Total|916,356.25|1,723,119.20|

 (i) For year 2015 semi annual, the amount that the group provided other termination benefits for severing labor relations was RMB629,131,63, no amount that the group wrote off other termination benefits for needless payments of severing labor relation. (For year 2014, the amount that the group provided other termination benefits for severing labor relations was RMB223,425.95 , the amount that the group wrote off other termination benefits for needless payments of severing labor relation was RMB2,335,000.00). 24.Tax payable
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2015|31 December 2014|
|Value-added-tax payable|33,847,774.12|10,022,374.90|
|Business tax payable|938,366.47|943,302.08|
|Enterprise income tax payable|47,052,910.34|52,868,801.89|
|Individual income tax payable|3,417,037.68|1,514,928.86|
|City maintenance and construction tax|||
||2,432,194.11|787,872.30|
|payable|||
|Anti-flood fund payable|5,885,914.98|7,950,610.72|
|Stamp duty tax payable|2,067,427.82|1,198,400.07|
|Real estate tax payable|947,637.41|923,420.99|
|Educational surcharge payable|1,747,168.03|571,654.75|
|Land use tax payable|471,111.34|426,390.62|
|Other tax payables|280,789.46|237,912.28|
|Total|99,088,331.76|77,445,669.46|

 25. Interest payable
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2015|31 December 2014|
|Long term borrowing interests payable|154,157.50|56,519.97|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||
|-|-|-|
|Short term borrowing interests payable|9,563,841.21|6,610,192.22|
|Total|9,717,998.71|6,666,712.19|

 26. Other payable
(1)Other payable by nature are analysed below:
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2015|31 December 2014|
|Accrued selling and distribution|||
||209,996,940.53|187,784,029.00|
|expenses|||
|Payables for construction in progress|||
||51,858,585.90|70,267,980.15|
|and equipment|||
|Amount collected on behalf of third|||
||20,132,302.46|44,057,463.73|
|party|||
|Deposit|13,968,153.31|19,495,588.90|
|Equity transaction payable|9,330,197.17|9,330,197.17|
|Other|66,939,794.13|81,411,942.56|
|Total|372,225,973.50|412,347,201.51|

 (2)Significant other payable aged over 1 year
Unit:RMB
||||
|-|-|-|
|||Reasons that accounts payable have|
|Projects|30 June 2015||
|||not been settled|
|Return of deposits that the project|||
||89,229,338.17|Transactions were not closed yet.|
|quality margin and other deposits|||
|Total|89,229,338.17|--|

27. Current portion of long-term borrowings
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2015|31 December 2014|
|Promotion rewards program|||
||7,649,200.00|4,000,000.00|
|- due within one year|||
|Total|7,649,200.00|4,000,000.00|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 28. Long term borrowings
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2015|31 December 2014|
|Unsecured borrowings|23,028,776.85|8,095,448.00|
|Entrusted borrowings|31,600,000.00|31,600,000.00|
|Total|54,628,776.85|39,695,448.00|

 As at 30 June 2015, the entrusted borrowing of RMB31,600,000.00 was lent by Sinopharm Group through Group Financial Co.(31 December 2014: RMB31,600,000.00). As at 30 June 2015, the weighted average interest rate of long-term borrowings is5.42% per annum. (31 December 2014:5.62%).
29. Long term employee benefits
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2015|31 December 2014|
|Early retirement benefits payable|2,582,100.00|2,896,000.00|
|Total|2,582,100.00|2,896,000.00|

 30. Payables for specific projects
Unit:RMB
|||||||
|-|-|-|-|-|-|
|||Current period|Current period|||
|Projects|31 December 2014|||30 June 2015|Reasons of formation|
|||additions|decreases|||
|Sepecial funds granted by|852,000.00|0.00|0.00|852,000.00||
||||||Government grants|
|government||||||
|Government grants for||||||
||435,000.00|0.00|0.00|435,000.00|Government grants|
|ERP system construction||||||
|Total|1,287,000.00|0.00|0.00|1,287,000.00|--|

 31. Deferred income
Unit:RMB
|||||||
|-|-|-|-|-|-|
|||Current period|Current period||Reasons of|
|Projects|31 December 2014|||30 June 2015||
|||additions|decreases||formation|
||||||Government|
|Government grants|153,119,166.83|2,110,000.00|5,841,041.01|149,388,125.82||
||||||grants|
|Promotion Rewards|||||Fair value of|
||23,247,034.32|4,721,146.71|9,937,821.00|18,030,360.03||
|Program|||||rewards|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||||
|-|-|-|-|-|-|
|Total|176,366,201.15|6,831,146.71|15,778,862.01|167,418,485.85|--|

 Projects involve Government grant:
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
|Government grants|31 December|Current year|Amount recognized as|Other||Related to|
||||||30 June 2015||
|program|2014|addtions|non-operating income|change||income/assets|
|Resettlement||||||Related to|
||86,349,075.41|0.00|1,349,204.28|0.00|84,999,871.13||
|Compansation(i)||||||assets|
|Cephalosporin Solid|||||||
|||||||Related to|
|Preparations|13,845,923.14|0.00|986,653.71|0.00|12,859,269.43||
|||||||assets|
|Development Project|||||||
|Guangxi Logistics||||||Related to|
||8,084,052.18|0.00|218,203.20|0.00|7,865,848.98||
|Project||||||assets|
|Stomach medicine|||||||
|domestic clinical||||||Related to|
||5,000,000.00|0.00|0.00|0.00|5,000,000.00||
|research and||||||assets|
|development project|||||||
|Pingshan|||||||
|||||||Related to|
|pharmaceutical R & D|5,000,000.00|0.00|0.00|0.00|5,000,000.00||
|||||||assets|
|base engineering|||||||
|Cephalosporin Powder|||||||
|Injection Passing||||||Related to|
||4,505,783.82|0.00|328,008.24|0.00|4,177,775.58||
|EU-GMP||||||assets|
|Authentication|||||||
|New Cephalosporin||||||Related to|
||3,962,385.17|0.00|458,022.30|0.00|3,504,362.87||
|R&D Project||||||assets|
|||||||Related to|
|Medical R&D Center II|3,877,620.85|0.00|410,659.98|0.00|3,466,960.87||
|||||||assets|
|Cardiovascular system|||||||
|targeted drug||||||Related to|
||3,000,000.00|0.00|0.00|0.00|3,000,000.00||
|development||||||assets|
|programs|||||||
|A comprehensive|||||||
|experimental modern||||||Related to|
||2,700,000.00|0.00|150,000.00|0.00|2,550,000.00||
|service industry||||||assets|
|subsidies|||||||
|Enteric coated pellets|||||||
|||||||Related to|
|industry research and|2,508,837.40|0.00|3,500.00|0.00|2,505,337.40||
|||||||assets|
|development project|||||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||||
|-|-|-|-|-|-|-|
|Cefpirome Sulfate R&D||||||Related to|
||2,386,456.55|0.00|129,898.44|0.00|2,256,558.11||
|Project||||||assets|
|Shaaban raw materials|||||||
|||||||Related to|
|and tablets R&D|0.00|1,500,000.00|0.00|0.00|1,500,000.00||
|||||||assets|
|Projects|||||||
|New Cephalosporin||||||Related to|
||1,219,393.90|0.00|305,246.76|0.00|914,147.14||
|R&D Project||||||assets|
|||||||Related to|
|Shared Logistics Center|1,225,468.70|0.00|469,146.60|0.00|756,322.10||
|||||||assets|
|||||||Related to|
|Other projects|9,454,169.71|610,000.00|1,032,497.50|0.00|9,031,672.21||
|||||||assets|
|Total|153,119,166.83|2,110,000.00|5,841,041.01|0.00|149,388,125.82|--|

 (i) Because the Nanning Government planned to reconstruction of the old urban area, a subsidiary of the company, Guangxi Logistics, which located in Nanning Longteng Road need to relocate. According to compensation agreement signed in May, 2012, the company obtained RMB120,250,000.00 compensation for the demolition carried out by the government, including cash compensation amounted
RMB50,000,000.00 and another physical compensation amounted RMB70,250,000.00 would be received in year 2015 when completion( Note VII(18)). Amounting to RMB93,320,000.00 relating to capital expenditure for reconstruction was recognised as deferred income, which would be amortised to profit or loss over the useful life of the related asset; others was recognised in profit or loss in 2012.
32. Other non-current liabilities
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2015|31 December 2014|
|Medical reserve funds|45,427,343.31|45,427,343.31|
|Total|45,427,343.31|45,427,343.31|

 33. Share Capital
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Movements (+.—)||||||
||31 December|||||||
|||Issue new||reserved funds|||30 June 2015|
||2014||Stock dividend||Other|Subtotal||
|||shares||transfer to shares||||
|Listed shares|362,631,943.00|0.00|0.00|0.00|0.00|0.00|362,631,943.00|

34. Capital reserve
Unit:RMB
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||
|-|-|-|-|-|
|||Current period|Current period||
|Projects|31 December 2014|||30 June 2015|
|||additions|decreases||
|Capital surplus|1,855,144,194.77|0.00|0.00|1,855,144,194.77|
|Other Capital reserve|8,750,338.57|0.00|0.00|8,750,338.57|
|Total|1,863,894,533.34|0.00|0.00|1,863,894,533.34|

 35. Surplus reserve
Unit:RMB
||||||
|-|-|-|-|-|
|||Current period|Current period||
|Projects|31 December 2014|||30 June 2015|
|||additions|decreases||
|Statutory surplus||0.00|0.00||
||181,315,971.50|||181,315,971.50|
|reserve|||||
|Total|181,315,971.50|0.00|0.00|181,315,971.50|

 36. Undistributed profits
Unit:RMB
||||
|-|-|-|
||For the six months ended 30 June|For the six months ended 30 June|
|Projects|||
||2015|2014|
|Undistributed profits at the beginning of year|2,356,765,374.25|1,806,002,285.06|
|Adjustment of retained earnings(add +,minus -)|0.00|0.00|
|Adjusted undistributed profits at the beginning|2,356,765,374.25||
|||1,806,002,285.06|
|of year|||
|Add:net profit attributable to the|||
||387,319,252.33|349,213,988.51|
|shareholders of the company|||
|Less: Dividend|72,526,388.60|65,273,749.74|
|Ending balance of undistributed profits|2,671,558,237.98|2,089,942,523.83|

 37. Sales and cost of sales
Unit:RMB
||||||
|-|-|-|-|-|
||For the six months ended 30 June 2015||For the six months ended 30 June 2014||
|Projects|||||
||Income|Expenses|Income|Expenses|
|Revenue of main|||||
||12,772,868,609.63|11,798,432,332.88|11,574,073,952.48|10,617,207,480.60|
|operations|||||
|Other operating|||||
||40,934,557.14|3,228,707.54|38,568,481.80|9,560,176.64|
|income|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||
|-|-|-|-|-|
|Total|12,813,803,166.77|11,801,661,040.42|11,612,642,434.28|10,626,767,657.24|

 38. Tax and surcharges
Unit:RMB
||||
|-|-|-|
|Projects|For the six months ended 30 June 2015|For the six months ended 30 June 2014|
|Business tax|2,983,841.85|3,581,457.89|
|City maintenance and construction tax|12,685,982.46|13,024,580.97|
|Educational surcharge|9,308,250.19|9,436,144.77|
|Other|1,465,615.25|1,430,529.90|
|Total|26,443,689.75|27,472,713.53|

 39. Selling and distribution expenses
Unit:RMB
||||
|-|-|-|
|Projects|For the six months ended 30 June 2015|For the six months ended 30 June 2014|
|Employees payroll and welfare benefits|112,490,739.45|107,196,450.96|
|Transportation charges|27,939,051.39|29,308,866.99|
|Promotion and marketing expenses|46,124,636.39|52,602,362.06|
|Conference expenses|4,354,342.75|4,356,232.26|
|Travel allowances|7,496,122.39|10,809,167.49|
|Entertainment expenses|10,897,298.61|10,185,826.51|
|Advertising expenses|4,705,456.10|8,223,830.25|
|Storage expenses|4,518,164.34|7,333,195.42|
|Office allowances|1,582,850.88|2,282,804.11|
|Rental expenses|13,666,951.13|13,392,366.19|
|Depreciation expenses|2,937,090.09|2,684,307.23|
|Other|25,361,402.49|22,773,801.07|
|Total|262,074,106.01|271,149,210.54|

 40. General and administrative expense
Unit:RMB
||||
|-|-|-|
|Projects|For the six months ended 30 June 2015|For the six months ended 30 June 2014|
|Employees payroll and welfare benefits|104,170,785.32|105,475,000.33|
|Research and development expenses|33,640,577.40|32,143,996.40|
|Depreciation expenses|16,379,344.44|19,869,820.88|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||
|-|-|-|
|Taxations|11,862,094.67|13,423,589.20|
|Entertainment expenses|4,101,888.76|4,307,392.51|
|Amortisation of intangible assets|2,819,911.80|3,836,803.22|
|Office allowances|3,053,398.52|2,991,765.13|
|Rental expenses|2,508,540.85|3,342,744.39|
|Vehicle management expenses|3,060,128.18|3,182,775.19|
|Conference expenses|117,497.36|210,047.70|
|Maintenance and other charges|1,561,358.97|923,970.27|
|Travel allowances|1,572,653.34|1,849,511.74|
|Utilities|2,496,765.25|3,972,594.42|
|Other|16,244,428.49|20,283,772.29|
|Total|203,589,373.35|215,813,783.67|

 41. Financial expense
Unit:RMB
||||
|-|-|-|
|Projects|For the six months ended 30 June 2015|For the six months ended 30 June 2014|
|Interest expenses|66,320,510.56|86,209,674.28|
|Less: interest income|-2,669,578.08|-4,223,008.09|
|discount in cash|-8,821,521.20|-17,547,093.60|
|Gain and loss from exchanges|-536,717.77|107,893.77|
|Other|4,346,978.89|6,384,258.74|
|Total|58,639,672.40|70,931,725.10|

 42. Asset impairment loss
Unit:RMB
||||
|-|-|-|
|Projects|For the six months ended 30 June 2015|For the six months ended 30 June 2014|
|Bad debt|-649,892.85|-1,655,386.78|
|Declines in values of inventories|7,869,732.74|8,968,294.15|
|Total|7,219,839.89|7,312,907.37|

 43. Gain from investment
Unit:RMB
||||
|-|-|-|
|Projects|For the six months ended 30 June 2015|For the six months ended 30 June 2014|
|Share of profit of investees under|28,274,061.44|23,595,722.50|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||
|-|-|-|
|equity method|||
|Total|28,274,061.44|23,595,722.50|

 The investment income from long-term investment under equity method represented the profit from Wanle Medical, Sinopharm Zhuhai. The increase was due to improved business performance of the associates. There is no significant restriction on the remittance of investment income to the Group.
44. Non-operating income
Unit:RMB
|||||
|-|-|-|-|
||For the six months ended 30|For the six months ended 30||
|Projects|||Amount in Non-routine items|
||June 2015|June 2014||
|Gain on disposal of|10,297.36|500,989.54||
||||10,297.36|
|non-current assets||||
|Including: Gain on disposal||||
||10,297.36|500,989.54|10,297.36|
|of fixed assets||||
|Government grants|10,567,256.16|14,575,338.73|10,567,256.16|
|Write off payments|146,039.32|811,269.33|146,039.32|
|Reversal of payments|0.00|11,862,275.78|0.00|
|Other|2,258,696.62|586,191.95|2,258,696.62|
|Total|12,982,289.46|28,336,065.33|12,982,289.46|

 Classified as this period profit Government grants:
Unit:RMB
|||||
|-|-|-|-|
||For the six months ended 30|For the six months ended 30|Government grants related to|
|Government grants Projects||||
||June 2015|June 2014|income|
|Government-funded interest||||
||1,635,195.84|1,049,200.00|Related to income|
|discount||||
|Industry grant|0.00|3,277,100.00|Related to income|
|Tax return|0.00|6,060,187.00|Related to income|
|Other|3,091,019.31|754,793.53|Related to income|
|Resettlement compensation-||||
||1,349,204.28|1,349,204.28|Related to assets|
|amortization of assets||||
|Others|4,491,836.73|2,084,853.92|Related to assets|
|Total|10,567,256.16|14,575,338.73|--|

45. Non-operating expenses
Unit:RMB
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
||For the six months ended 30|For the six months ended 30||
|Projects|||Amount in Non-routine items|
||June 2015|June 2014||
|Loss on disposal of|225,404.59|64,238.16||
||||225,404.59|
|non-current assets||||
|Including: Losses on||||
||225,404.59|64,238.16|225,404.59|
|disposal of fixed assets||||
|Donations|0.00|410,000.00|0.00|
|Other|215,275.79|733,259.19|215,275.79|
|Total|440,680.38|1,207,497.35|440,680.38|

 46. Income taxes expenses
(1)Income taxes expenses
Unit:RMB
||||
|-|-|-|
|Projects|For the six months ended 30 June 2015|For the six months ended 30 June 2014|
|Current income tax|93,190,979.53|91,607,455.92|
|Deferred income tax|2,157,874.97|-5,276,159.17|
|Total|95,348,854.50|86,331,296.75|

 (2)The reconciliation from income tax calculated based on applicable tax rates and total profit presented in the consolidated financial statements to the income tax expenses is listed below: Unit:RMB
|||
|-|-|
|Projects|For the six months ended 30 June 2015|
|Total profit|494,991,115.47|
|Income tax expenses calculated at applicable tax rates|123,747,778.87|
|Differences in preferential tax rates of certain companies|-25,937,299.98|
|Income not subject to tax|-6,965,840.39|
|Deferred tax changes with tax rate adjustments|1,009,834.20|
|Expenses not deductible for tax purposes|3,494,381.80|
|Income tax|95,348,854.50|

 47. Cash flow statements
(1)Cash received relating to other operating activities
Unit:RMB
||||
|-|-|-|
|Projects|For the six months ended 30 June 2015|For the six months ended 30 June 2014|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||
|-|-|-|
|Withdraw deposits for bank acceptance|||
||9,034,563.52|7,107,945.50|
|notes and depostis for letter of credit|||
|Interest income|2,669,578.08|4,223,008.09|
|Government grants except tax return|4,926,078.35|2,700,000.00|
|Rental income|10,585,370.80|8,320,925.55|
|Other|12,846,219.50|31,096,558.42|
|Total|40,061,810.25|53,448,437.56|

 (2)Cash paid relating to other operating activities
Unit:RMB
||||
|-|-|-|
|Projects|For the six months ended 30 June 2015|For the six months ended 30 June 2014|
|Market development expenses|46,124,636.39|52,602,362.06|
|Research and development expesnses|10,782,478.49|11,553,667.63|
|Rental expenses|16,175,491.98|16,066,215.94|
|Entertainment expenses|14,999,187.37|14,493,219.02|
|Travel expenses|9,068,775.73|12,658,679.23|
|Advertising expenses|4,705,456.10|8,223,830.25|
|Office expenses|4,636,249.40|6,610,987.93|
|Other|58,315,031.63|61,990,312.41|
|Total|164,807,307.09|184,199,274.47|

 (3)Cash received relating to other investing activities
Unit:RMB
||||
|-|-|-|
|Projects|For the six months ended 30 June 2015|For the six months ended 30 June 2014|
|Cash received from acquiring|||
||0.00|3,598,827.09|
|subsidiaries|||
|Total|0.00|3,598,827.09|

 (4)Cash received relating to other financing activities
Unit:RMB
||||
|-|-|-|
|Projects|For the six months ended 30 June 2015|For the six months ended 30 June 2014|
|Entrusted borrowings borrowed from|||
||0.00|31,600,000.00|
|CNPGC|||
|Other|0.00|20,776,797.32|
|Total|0.00|52,376,797.32|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 (5)Cash payments relating to other financing activities
Unit:RMB
||||
|-|-|-|
|Projects|For the six months ended 30 June 2015|For the six months ended 30 June 2014|
|Other|24,066,161.02|3,235,784.18|
|Total|24,066,161.02|3,235,784.18|

 48. Supplementary information of cash flow statements
(1)Supplementary information of cash flow statements
Unit:RMB
||||
|-|-|-|
|Supplementary information|For the six months ended 30 June 2015|For the six months ended 30 June 2014|
|1.Reconciliation of net profit to cash|||
||--|--|
|flows from operating activities:|||
|Net profit|399,642,260.97|357,587,430.56|
|Add: Provision for assets impairment|7,219,839.89|7,312,907.37|
|Depreciation of fixed assets and|||
||47,945,421.59|48,039,480.50|
|investment properties|||
|Amortisation of intangible assets|3,821,424.91|3,836,803.21|
|Amortisation of long-term prepaid|||
||4,262,640.17|4,039,734.82|
|expenses|||
|Losses on disposal of fixed assets,|||
|intangible assets, and other|-4,114,941.12|-436,751.38|
|non-current assets|||
|Financial expenses|66,674,714.71|89,553,352.23|
|Investment losses|-28,274,061.44|-23,595,722.50|
|Decrease of deferred tax assets|3,000,326.62|-9,520,865.56|
|Increase of deferred tax liabilities|-842,451.65|331,955.70|
|Decrease of inventory|88,388,515.28|-368,787,212.56|
|Decrease in operating receivables|-753,547,929.22|-691,530,669.43|
|Increase in operating payables|605,029,254.51|91,345,803.58|
|Other|9,034,563.51|7,107,945.50|
|Net cash flow from operating activities|448,239,578.73|-484,715,807.96|
|2.Significant non-cash investing|||
||--|--|
|activities:|||
|3.Movement of cash|--|--|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||
|-|-|-|
|Cash on 30 June 2015|1,157,555,627.85|1,409,385,573.73|
|Less:Cash on 31 December 2014|854,212,006.84|1,097,948,354.45|
|Net increase in cash|303,343,621.01|311,437,219.28|

 (2)Composition of cash and cash equivalents
Unit:RMB
||||
|-|-|-|
|Programs|30 June 2015|31 ecember 2014|
|1.Cash|1,157,555,627.85|854,212,006.84|
|Including: Cash on hand|77,018.59|41,627.16|
|Call deposits with banks|1,157,478,609.26|854,170,379,68|
|2.Cash equivalents|||
|Including:Bonds investment matured within three|||
|months|||
|3.Cash and cash equivalents|1,157,555,627.85|854,212,006.84|
|Including: restricted cash and cash equivalents of|||
||0.00|0.00|
|the parent company and its subsidiaries|||

49. Assets with restricted ownership or use right
Unit:RMB
||||
|-|-|-|
|Projects|Net book value on 30 June 2015|Reson of restriction|
|||Bank acceptance notes and depostis for|
|Cash at bank and on hand|4,315,545.18||
|||letter of credit|
|||The pledged notes receivables are used|
|Notes receivable|4,929,266.00|as guarantee for for issurance of bank|
|||acceptance notes.|
|Total|9,244,811.18|--|

50. Foreign currencies projects
Unit:RMB
|||||
|-|-|-|-|
||Financial assets|||
||||Financial assets denominated|
|Projects|denominated in foreign|Exchange rate||
||||in RMB|
||currency|||
|Cash at bank and on hand|--|--||
|Including:US Dollars|0.58|6.1136|3.55|
|Accounts receivables|--|--||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
|Including:US Dollars|1,803,480.17|6.1136|11,026,180.45|
|HK Dollars|289,854.06|0.7900|228,984.71|
|Accounts payable|--|--||
|Including:US Dollars|786,632.20|6.1136|4,806,322.74|

 VIII. Alteration of consolidated financial statement scope
Guangzhou Medical was established By Sinopharm Guangzhou, which is a subsidiary of the Company, and Guangzhou Huaqiao medical investment co., Ltd by cash RMB1,530,000.00 and RMB 1,470,000.00, respectively. Sinopharm Guangzhou accounted for51% of its shares.
IX. Shares and rights in other companies
1. Subsidiaries
||||||||
|-|-|-|-|-|-|-|
||Place of|Place of|Nature of|Equity interest held (%)|||
|Company name||||||Mode of acquisition|
||operation|registration|business|Direct|Indirect||
|Sinopharm Holding Guilin Co.,|||||||
||Guilin|Guilin|Commercial||100.00%|Set up|
|Ltd.|||||||
|Sinopharm Holding Baise Co.,|||||||
||Baise|Baise|Commercial||100.00%|Set up|
|Ltd.|||||||
|Sinopharm Holding||Zhongshan|||||
||Zhongshan||Commercial|100.00%||Set up|
|Zhongshan Co., Ltd.|||||||
|Sinopharm Holding Guigang|||||||
||Guigang|Guigang|Commercial||100.00%|Set up|
|Co., Ltd.|||||||
|Sinopharm Beihai|Beihai|Beihai|Commercial||100.00%|Set up|
|Zhijun Pharm||||||Business|
|||||||combinations|
|||Shenzhen|||||
||Shenzhen||Manufacturing|100.00%||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding Jianmin||||||Business|
|Co., Ltd.||||||combinations|
||Shenzhen|Shenzhen|Commercial|100.00%||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding Material||||||Business|
|Co., Ltd.||||||combinations|
||Shenzhen|Shenzhen|Commercial|100.00%|||
|||||||involving|
|||||||enterprises under|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||||
|-|-|-|-|-|-|-|
|||||||common control|
|Shenzhen Zhijun||||||Business|
|Pharmaceutical Trade Co.,||||||combinations|
|Ltd.|Shenzhen|Shenzhen|Commercial|100.00%||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding Shenzhen||||||Business|
|Logistics Co., Ltd.||||||combinations|
||Shenzhen|Shenzhen|Service|100.00%||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding||||||Business|
|Guangzhou Co., Ltd.||||||combinations|
||Guangzhou|Guangzhou|Commercial|100.00%||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding||||||Business|
|Guangdong Hengxing||||||combinations|
|Pharmaceutical Co., Ltd.|Guangzhou|Guangzhou|Commercial|100.00%||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding Yulin||||||Business|
|Co., Ltd.||||||combinations|
||Yulin|Yulin|Commercial||100.00%|involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Medicine Holding||||||Business|
|Liuzhou Co., Ltd.||||||combinations|
||Liuzhou|Liuzhou|Commercial|51.00%||involving|
|||||||enterprises under|
|||||||common control|
|Guangxi Chinese Herbal||||||Business|
|Pieces||||||combinations|
||Liuzhou|Liuzhou|Manufacturing||51.00%|involving|
|||||||enterprises under|
|||||||common control|
|Guangdong Huixin Investment||||||Business|
|Co., Ltd.||||||combinations|
||Guangzhou|Guangzhou|Service|100.00%||involving|
|||||||enterprises under|
|||||||common control|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||||
|-|-|-|-|-|-|-|
|Sinopharm Holding Foshan||||||Business|
|Co., Ltd.||||||combinations|
||Foshan|Foshan|Commercial|100.00%||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding||||||Business|
|Guangdong Yuexing Co.,||||||combinations|
|Ltd.|Guangzhou|Guangzhou|Commercial|100.00%||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding||||||Business|
|Guangdong Logistics Co.,||||||combinations|
|Ltd.|Guangzhou|Guangzhou|Service|100.00%||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Guangxi||||||Business|
|||||||combinations|
||Nanning|Nanning|Commercial|100.00%||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding Guangxi||||||Business|
|Logistics Co., Ltd.||||||combinations|
||Nanning|Nanning|Service||100.00%|involving|
|||||||enterprises under|
|||||||common control|
|Zhijun (Shenzhen) Pingshan||||||Business|
|||||||combinations|
||Shenzhen|Shenzhen|Manufacturing|100.00%||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding Wuzhou||||||Business|
|Co., Ltd.||||||combinations|
||Wuzhou|Wuzhou|Commercial||99.90%|involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Group Zhijun||||||Business|
|(Suzhou) Pharmaceutical||||||combinations|
|Co. Ltd.|Suzhou|Suzhou|Manufacturing|100.00%||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm holding Dongguan||||||Business|
||Dongguan|Dongguan|Commercial|100.00%|||
|||||||combinations|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||||
|-|-|-|-|-|-|
|Co., Ltd.|||||involving|
||||||enterprises not|
||||||under common|
||||||control|
|Sinopharm Holding Zhanjiang|||||Business|
|Co., Ltd.|||||combinations|
||||||involving|
||Zhanjiang|Zhanjiang|Commercial|100.00%||
||||||enterprises not|
||||||under common|
||||||control|
|Sinopharm Holding Shenzhen|||||Business|
|Yanfeng Co.,Ltd|||||combinations|
||||||involving|
||Shenzhen|Shenzhen|Commercial|51.00%||
||||||enterprises not|
||||||under common|
||||||control|
|Sinopharm Holding Meizhou|||||Business|
|Co., Ltd.|||||combinations|
||||||involving|
||Meizhou|Meizhou|Commercial|100.00%||
||||||enterprises not|
||||||under common|
||||||control|
|Sinopharm Holding Huizhou|||||Business|
|Co., Ltd.|||||combinations|
||||||involving|
||Huizhou|Huizhou|Commercial|100.00%||
||||||enterprises not|
||||||under common|
||||||control|
|Sinopharm Holding Zhaoqing|||||Business|
|Co., Ltd.||||||
||||||combinations|
||||||involving|
||Zhaoqing|Zhaoqing|Commercial|100.00%||
||||||enterprises not|
||||||under common|
||||||control|
|Sinopharm Holding Jiangmen|||||Business|
|Renren Co., Ltd.||||||
||||||combinations|
||||||involving|
||Jiangmen|Jiangmen|Commercial|100.00%||
||||||enterprises not|
||||||under common|
||||||control|
|Sinopharm Holding Shaoguan|||||Business|
||Shaoguan|Shaoguan|Commercial|70.00%||
|Co., Ltd.||||||
||||||combinations|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||||
|-|-|-|-|-|-|-|
|||||||involving|
|||||||enterprises not|
|||||||under common|
|||||||control|
|Sinopharm Holding Shantou||||||Business|
|Co., Ltd.|||||||
|||||||combinations|
|||||||involving|
||Shantou|Shantou|Commercial|70.00%|||
|||||||enterprises not|
|||||||under common|
|||||||control|
|Sinopharm Holding|||||||
||Guangzhou|Guangzhou|Commercial||51.00%|Set up|
|Guangzhou Medical|||||||
|Management Co., Ltd.|||||||

2. Associates
(1) Financial information of the nonsignificant cooperative and joint venture
Unit:RMB
||||
|-|-|-|
||30 June 2015|31 December 2014|
|Associates|--|--|
|Book value of investment|151,691,888.2|8 157,604,846.85|
|Total Amount according to the|||
||--|--|
|shareholding proportions|||
|--Net profit|28,274,061.44|50,415,836.33|
|-- Other comprehensive income|0.0|0 0.00|
|-- Total comprehensive income|0.0|0 0.00|

 X. Related party relationships and significant related party transactions
1. The parent company
|||||||
|-|-|-|-|-|-|
||||Registeredcapital|The proportions of||
||||||The proportions of|
|||||equity interests in||
||Place of||||voting rights in the|
|The parent company||Principal business||the Company held||
||registration||||Company held by the|
|||||by the parent||
||||||parent company|
|||||company||
|||Industrial Investment|2,767,095,089yuan|||
|||Holding, Trustee of||||
|Sinopharm Group|Shanghai|pharmaceutical||51.00%|51.00%|
|||enterprise, Assets||||
|||Reorganization,||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||
|-|
|Distribution and retail of|
|medicines and|
|pharmaceutical|
|products, etc|

TheCompany’s ultimate controlling equity holder is CNPGC.
2. Subsidiaries of the Company
The general background and other related information of the subsidiaries is set out in Note IX (1). 3. Associates
Associates consolidated in the financial statements are listed in Note VII (9).
The associates which have balance formed from related party transactions with us shows as below:
|||
|-|-|
|Company nace|Relationship with the Company|
|Wanle Medical|Associate|

4. Other related parties
|||
|-|-|
|Other related parties|Relationship with the Company|
|Sinopharm Holding Sub Marketing Center Co., Ltd.|Controlled by Sinopharm Group|
|China National Medicines Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Hunan Co., Ltd.|Controlled by Sinopharm Group|
|Guangdong Dong Fang Uptodate & Special Medicines Co.,||
||Controlled by Sinopharm Group|
|Ltd.||
|Foshan Nanhai Uptodate & Special Medicines Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Beijing Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Jiangsu Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Hainan Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Group Chemical Reagent Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Guizhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Zhangzhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Beijing Huahong Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Hubei Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Fujian Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Yixin Medicine Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Fuzhou Co., Ltd.|Controlled by Sinopharm Group|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||
|-|-|
|Sinopharm Holding Suzhou Co., Ltd.|Controlled by Sinopharm Group|
|Foshan Nanhai Medicine Co., Ltd.|Controlled by Sinopharm Group|
|Foshan Nanhai Medicine Group Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Group Chemical Reagent Suzhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Chongqing Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Group Guorui Medicine Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Dezhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Hainan Hongyi Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Yunnan Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Putian Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding (Yangzhou) Chinese Western Medicine||
||Controlled by Sinopharm Group|
|Branch Co., Ltd.||
|Sinopharm Holding Shandong Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Le -Ren-Tang Medicine Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Group Xinjiang Special Drugs National||
||Controlled by Sinopharm Group|
|Pharmaceutical Co., Ltd.||
|Sinopharm Group Southwest Medicine Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Ningxia Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Tianjin Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Guoda Drug Store Guangxi Chain Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Zhejiang Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Nantong Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Gansu Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Xinjiang Special Drugs Western||
||Controlled by Sinopharm Group|
|Pharmaceutical Co., Ltd.||
|Sinopharm Holding Shenyang Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Wenzhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Jinzhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Henan Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Shanxi Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Heilongjiang Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Yangzhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Shan`xi Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Xuzhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Guoda Drug Store Jiangmen Chain Co., Ltd.|Controlled by Sinopharm Group|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||
|-|-|
|Sinopharm Holding Jilin Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Wuxi Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Guoda Pharmacy Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Yancheng Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Dalian Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Taizhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Inner Mongolia Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Tianjin North Medicine Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Qinghai Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Changzhou Medical logistics center||
||Controlled by Sinopharm Group|
|Co., Ltd.||
|Sinopharm Holding Longyan Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Ningde Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Lerentang Tangshan Medicine Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Jinan Co., Ltd.|Controlled by Sinopharm Group|
|Shanghai Nuoyun Marketing Consulting Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Qingdao Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Jiangxi Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Yantai Co., Ltd.|Controlled by Sinopharm Group|
|Shanghai Donghong Medicine Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Wuhu Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Anqing Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Quanzhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Huaian Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Sanming Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Lerentang Qinhuangdao Medicine Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Changzhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Anhui Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding ChiFeng Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Xinjiang New Kashi Pharmaceutical||
||Controlled by Sinopharm Group|
|Co., Ltd.||
|Sinopharm Holding HongKong Co., Ltd.|Controlled by Sinopharm Group|
|Shanxi Guoyi Drug Store Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Xinjiang Korla Pharmaceutical Co., Ltd.|Controlled by Sinopharm Group|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||
|-|-|
|Sinopharm Holding Zhoukou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Shangqiu Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Jingmen Co., Ltd.|Controlled by Sinopharm Group|
|Shanghai Nutraceuticals (Shanghai) Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical||
||Controlled by Sinopharm Group|
|Co., Ltd.||
|Sinopharm Holding Nanping Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Tongliao Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Xinxiang Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Puyang Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Guoda Drug Store Guangzhou Chain||
||Controlled by Sinopharm Group|
|Co., Ltd.||
|Sinopharm Holding Macheng Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Huaideju Pharmaceutical (Xiamen) Co.,||
||Controlled by Sinopharm Group|
|Ltd.||
|Guoda Shenyang Tianyitang Pharmacy Chain Store Co.,||
||Controlled by Sinopharm Group|
|Ltd.||
|Sinopharm Holding Dandong Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Zhejiang Biological Product Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Qianxinan Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Changde Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Anyang Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Kaifeng Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Xinyu Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Group Medicine Logistic Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Guoda Drug Store Guangdong Co.,||
||Controlled by Sinopharm Group|
|Ltd.||
|Shanghai Tongyu Information Technology Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Hunan Guoda Minshengtang Drug||
||Controlled by Sinopharm Group|
|Store Chain Co., Ltd.||
|Sinopharm Holding Beijing Tianxing Puxin Biological||
||Controlled by Sinopharm Group|
|Medical Co., Ltd.||
|Sinopharm Holding Shanghai Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical||
||Controlled by Sinopharm Group|
|Co., Ltd.||
|Sinopharm Holding Liaocheng Co., Ltd.|Controlled by Sinopharm Group|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||
|-|-|
|Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd.|Controlled by Sinopharm Group|
|Shanghai Merro Pharmaceutical Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Jining Co., Ltd.|Controlled by Sinopharm Group|
|Group Financial Co.|Controlled by CNPGC|
|Guang dong South Pharmaceutical Foreign Trade Co., Ltd.|Controlled by CNPGC|
|Chengdu Rongsheng Pharmacy Co., Ltd.|Controlled by CNPGC|
|Winteam Pharmaceutical Group Ltd.|Controlled by CNPGC|
|Lanzhou Institute of Biological Products Co., Ltd.|Controlled by CNPGC|
|China National Pharmaceutical Industry Medicine||
||Controlled by CNPGC|
|distribution Co. Ltd.||
|Huayi Pharmaceutical Co., Ltd|Controlled by CNPGC|
|Wuhan Institute of Biological Products Co., Ltd.|Controlled by CNPGC|
|Sinopharm Group Weiqida Medicine Co., Ltd.|Controlled by CNPGC|
|Guizhou Tongjitang Pharmaceutical Co., Ltd.|Controlled by CNPGC|
|China National Pharmaceutical Foreign Trade Co., Ltd.|Controlled by CNPGC|
|Shanghai Shyndec Pharmaceutical Co., Ltd.|Controlled by CNPGC|
|Sinopharm Group Rongsheng Pharmaceutical Co., Ltd.|Controlled by CNPGC|
|Anhui Jingfang Pharmaceutical Co., Ltd.|Controlled by CNPGC|
|Shandong Lu Ya Pharmaceutical Co., Ltd.|Controlled by CNPGC|
|Sinopharm Group Shanghai Medicine Device Co., Ltd.|Controlled by CNPGC|
|Guizhou Longlife Pharmacertical Co., Ltd.|Controlled by CNPGC|
|Guangdong Medi-World Pharmacertical Co., Ltd.|Controlled by CNPGC|
|China Sinopharm International Corporation|Controlled by CNPGC|
|Reed Sinopharm Exhibitions Co., Ltd.|Controlled by CNPGC|
|China National Scientific Instruments & Materials Imp/Exp||
||Controlled by CNPGC|
|Shenzhen CO., Ltd||
|Heilongjiang Sinopharm Medical Herbs Co., Ltd.|Controlled by CNPGC|
|Beijing Fusheng Tiandi Property Management Ltd.|Controlled by CNPGC|
|Sinopharm (Shanghai) E-Health Co,.Ltd.|Controlled by CNPGC|
|Sinopharm Group Guangdong Medicine Device Co., Ltd.|Controlled by CNPGC|
|Shanghai Institute of Pharmaceutical Industry|Controlled by CNPGC|
|Sinopharm Chongqing Pharmaceutical and Medical||
||Controlled by CNPGC|
|Industry Design Institute||
|China State Institute of Pharmaceutical Industry|Controlled by CNPGC|
|Foshan Dezhong Pharmaceutical Co., Ltd.|Controlled by CNPGC|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||
|-|-|
|Sinopharm Group Beijing Medical equipment Co., Ltd.|Controlled by CNPGC|
|Foshan Fengliaoxing Pharmaceutical Co., Ltd.|Controlled by CNPGC|
|The Fourth Pharmaceutical Co., Ltd. of Zhonglian Group|Controlled by CNPGC|
|Beijing Huasheng Pharmaceutical Biotechnology||
||Controlled by CNPGC|
|Development Co., Ltd.||
|Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (“Fosun||
||Shareholders have signigicant influence on Sinopharm Group|
|Pharma”)||
|Jiangsu Wanbang Pharmacy Marketing Co., Ltd.|Subsdiary of Fosun Pharm|
|Chongqing Yaoyou Pharmaceutical Co., Ltd.|Subsdiary of Fosun Pharm|
|Chongqing Haisiman Pharmaceutical Co., Ltd.|Subsdiary of Fosun Pharm|
|Guilin South pharmaceutical Co., Ltd.|Subsdiary of Fosun Pharm|
|Hunan Dongting Pharmaceutical Co., Ltd.|Subsdiary of Fosun Pharm|
|Shanghai Chaohui Pharmecurical Co., Ltd.|Subsdiary of Fosun Pharm|
|Foshan Chancheng District Central Hospital|Subsdiary of Fosun Pharm|
|Jiangsu Huanghe Pharmaceutical Co., Ltd|Subsdiary of Fosun Pharm|
|Shenyang Hongqi Pharmaceutical Co., Ltd.|Subsdiary of Fosun Pharm|
|Wang Yang|Family member of minority interest of subsidiary|
|Shaoguan Wujiang District Muyang Medicine Information||
||Controlled by minority interest of subsidiary|
|Consultant Co., Ltd.||
|Yichang Humanwell Pharmaceutical Co., Ltd.|Associate of Sinopharm Group|
|Shanghai Wanli Medical Beauty Clinic Limited|Associate of Sinopharm Group|
|Sino-Swed Pharmaceutical Corp.Ltd.|Associate of CNPGC|
|China Otsuka Pharmaceutical Co., Ltd.|Associate of CNPGC|
|Shanghai Sailun Biological Technology Co., Ltd.|Associate of CNPGC|
|Shenzhen Wanwei Medicine trading Co., Ltd.|Subsidiary of Wanle Medical|
|Jiang Meng Renren Medical instrument Co., Ltd.|Controlled by subsidiary's key management|
|Beijing Huasheng Pharmaceutical Biotechnology||
||Controlled by CNPGC|
|Development Co., Ltd.||
|Changchun Changsheng Gene Pharmaceutical Co., Ltd.|Associate of CNPGC|
|Foshan Fengliaoxing Pharmaceutical Co., Ltd.|Controlled by CNPGC|
|Foshan Chancheng District Pharmaceutical Co., Ltd|Subsdiary of Fosun Pharm|
|Foshan Chanyixing Medicine Development Co Ltd|Subsdiary of Fosun Pharm|
|Sinopharm (Shanghai) E-Health Co,.Ltd.|Controlled by CNPGC|
|China National Pharmaceutical Industry Co., Ltd.|Controlled by CNPGC|
|Sinopharm Group Guangdong Medical Inspection Co., Ltd|Controlled by CNPGC|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||
|-|-|
|Sinopharm Holding Sanyi Medicine(Wuhu) Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Group Shanghai Likang Pharmaceutical Co.||
||Controlled by Sinopharm Group|
|Ltd.||
|Sinopharm Group Zhonglian Pharmaceutical Co. Ltd.|Controlled by CNPGC|
|Shanghai Nutraceuticals (Shanghai) Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Chenzhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Chengdu Pharmaceutical Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Fuyang Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Group|The Parent Company|
|Sinopharm Holding Shanghai management consulting||
||Controlled by Sinopharm Group|
|branch||
|Sinopharm Holding Guoda Fumei Pharmaceutical||
||Controlled by Sinopharm Group|
|(Shanghai) Co., Ltd.||
|Guoda Shenyang Tianyitang Pharmacy Chain Store Co.,||
||Controlled by Sinopharm Group|
|Ltd.||
|Sinopharm Guoda Drug Store(Shenzhen) Chain Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Hebei Pharmaceutical Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Huaideju Pharmaceutical (Xiamen) Co.,||
||Controlled by Sinopharm Group|
|Ltd.||
|Sinopharm Holding Huainan Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Lunan Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Luoyang Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Nanping New Power Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Nanyang Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Shanxi Linfen Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Sichuan Pharmaceutical Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Suzhou Kangmin Pharmaceutical Co.||
||Controlled by Sinopharm Group|
|Ltd.||
|Sinopharm Holding Hongkong International Co. Ltd|Controlled by Sinopharm Group|
|Sinopharm Holding Xinjiang Xinte Karamay Pharmaceutical||
||Controlled by Sinopharm Group|
|Co., Ltd.||
|Handan Pharmaceutical Co., Ltd|Subsdiary of Fosun Pharm|
|Hetian Region Ankang Chain Drugstore Co., Ltd.|Controlled by Sinopharm Group|
|NanJing Iron & Steel Co., Ltd.|Subsdiary of Fosun Pharm|
|Nanjing Iron & Steel Group International Trade Co., Ltd|Subsdiary of Fosun Pharm|
|Ningxia Guoda Drug StoreChain Co., Ltd.|Controlled by Sinopharm Group|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||
|-|-|
|Qinghai Medical Pharmaceutical Material Co., Ltd.|Controlled by CNPGC|
|Qinghai Pharmaceutical (Group) Co., Ltd.|Controlled by CNPGC|
|Shanghai Modern Hasen (Shangqiu) Pharmacertical Co.,||
||Controlled by CNPGC|
|Ltd.||
|Shanghai Institute of biomedical Pharmaceutical Co. Ltd|Controlled by CNPGC|
|Shenzhen Wanle Medical Co., Ltd.|Associate|
|Sichuan Hexin Pharmaceutical Co., Ltd.|Subsdiary of Fosun Pharm|
|Sichuan Jiang You Zhong Ba Science and Technology||
||Controlled by CNPGC|
|Development Co., Ltd.||
|Sichuan Kang Daxin Pharmaceutical Co., Ltd.|Associate of CNPGC|
|Suzhou Erye Pharmaceutical Limited Company|Subsdiary of Fosun Pharm|
|China scientific equipment company|Controlled by CNPGC|
|CNPGC|Controlled by CNPGC|
|China Traditional Chinese Medicine Co.|Controlled by CNPGC|

5. Related party transactions
(1)Purchase/Sales of goods, Purchase/Rendering of servic
Purchase of goods / Purchase of service
Unit:RMB
|||||||
|-|-|-|-|-|-|
|||For the six|||For the six months|
||Related party||Approved trading|Whether exceed||
|Related party||months ended|||ended|
||transactions||limit|trading limit||
|||30 June 2015|||30 June 2014|
|Sinopharm||||||
|Holding Sub|Purchase of|||||
|||473,896,462.97||No|448,119,799.98|
|Marketing Center|goods|||||
|Co., Ltd.||||||
||Purchase of|||||
|Sinopharm Group||220,482,005.40||No|220,264,634.58|
||goods|||||
|China National||||||
||Purchase of||2,700,000,000.00|||
|Medicines Co.,||182,000,081.49||No|156,923,025.22|
||goods|||||
|Ltd.||||||
|Sino-Swed||||||
||Purchase of|||||
|Pharmaceutical||44,774,861.25||No|40,529,477.76|
||goods|||||
|Corp.Ltd.||||||
|Shenzhen|Purchase of|||||
|||37,187,026.99||No|26,430,381.62|
|Wanwei Medicine|goods|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||
|-|-|-|-|-|
|trading Co., Ltd.|||||
|Guang dong|||||
|South|||||
||Purchase of||||
|Pharmaceutical||24,983,541.39|No|26,699,952.31|
||goods||||
|Foreign Trade|||||
|Co., Ltd.|||||
|Jiangsu Wanbang|||||
|Pharmacy|Purchase of||||
|||21,718,308.34|No|16,787,691.74|
|Marketing Co.,|goods||||
|Ltd.|||||
|Foshan Nanhai|||||
|Uptodate &|Purchase of||||
|||14,813,289.21|No|3,370,955.43|
|Special Medicines|goods||||
|Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Holding Guizhou||11,777,123.06|No|15,495,788.70|
||goods||||
|Co., Ltd.|||||
|Chongqing|||||
|Yaoyou|Purchase of||||
|||11,561,348.52|No|8,795,511.61|
|Pharmaceutical|goods||||
|Co., Ltd.|||||
|Lanzhou Institute|||||
||Purchase of||||
|of Biological||10,770,840.00|No|5,425,700.00|
||goods||||
|Products Co., Ltd.|||||
|Winteam|||||
||Purchase of||||
|Pharmaceutical||10,095,226.43|No|21,242,409.32|
||goods||||
|Group Ltd.|||||
|Chengdu|||||
|Rongsheng|Purchase of||||
|||8,372,573.00|No|16,530,660.00|
|Pharmacy Co.,|goods||||
|Ltd.|||||
|Qinghai|||||
||Purchase of||||
|Pharmaceutical||4,514,443.50|No|4,677,786.37|
||goods||||
|(Group) Co., Ltd.|||||
|Wuhan Institute of|||||
||Purchase of||||
|Biological||3,936,356.00|No|3,348,300.00|
||goods||||
|Products Co., Ltd.|||||
|Guangdong Dong|||||
|Fang Uptodate &|Purchase of||||
|||3,073,788.88|No|2,964,854.03|
|Special Medicines|goods||||
|Co., Ltd.|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||
|-|-|-|-|-|
|Sinopharm Group|||||
||Purchase of||||
|Weiqida Medicine||2,980,769.22|No|1,277,376.15|
||goods||||
|Co., Ltd.|||||
|Chongqing|||||
|Haisiman|Purchase of||||
|||2,290,382.37|No|4,965,950.85|
|Pharmaceutical|goods||||
|Co., Ltd.|||||
|Sinopharm|||||
|Holding Beijing|||||
||Purchase of||||
|Tianxing Puxin||2,062,006.33|No|0.00|
||goods||||
|Biological Medical|||||
|Co., Ltd.|||||
|Guizhou|||||
|Tongjitang|Purchase of||||
|||1,658,359.36|No|1,067,484.63|
|Pharmaceutical|goods||||
|Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Holding Beijing||1,633,846.16|No|2,202,461.51|
||goods||||
|Co., Ltd.|||||
|China National|||||
|Scientific|||||
|Instruments &|Purchase of||||
|||1,549,539.30|No|0.00|
|Materials Imp/Exp|goods||||
|Shenzhen CO.,|||||
|Ltd|||||
|Sinopharm|||||
||Purchase of||||
|Holding Beijing||1,368,186.29|No|491,441.87|
||goods||||
|Huahong Co., Ltd.|||||
|Beijing Huasheng|||||
|Pharmaceutical|||||
||Purchase of||||
|Biotechnology||1,165,876.23|No|1,260,683.77|
||goods||||
|Development Co.,|||||
|Ltd.|||||
|Shanghai|||||
|Shyndec|Purchase of||||
|||993,581.20|No|969,389.51|
|Pharmaceutical|goods||||
|Co., Ltd.|||||
|Sinopharm Group|||||
|Rongsheng|Purchase of||||
|||760,017.61|No|555,012.76|
|Pharmaceutical|goods||||
|Co., Ltd.|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||
|-|-|-|-|-|
|Sinopharm Group|||||
||Purchase of||||
|Chemical Reagent||624,526.11|No|200,653.94|
||goods||||
|Co., Ltd.|||||
|China Otsuka|||||
||Purchase of||||
|Pharmaceutical||589,739.54|No|346,591.41|
||goods||||
|Co., Ltd.|||||
|Anhui Jingfang|||||
||Purchase of||||
|Pharmaceutical||535,332.58|No|335,214.26|
||goods||||
|Co., Ltd.|||||
|China National|||||
|Pharmaceutical|Purchase of||||
|||530,655.75|No|497,742.52|
|Foreign Trade|goods||||
|Co., Ltd.|||||
|Sichuan Hexin|||||
||Purchase of||||
|Pharmaceutical||441,452.30|No|0.00|
||goods||||
|Co., Ltd.|||||
|Sinopharm|||||
|Holding Chengdu|Purchase of||||
|||346,153.85|No|0.00|
|Pharmaceutical|goods||||
|Co., Ltd.|||||
|Sinopharm Group|||||
|Zhonglian|Purchase of||||
|||343,373.23|No|221,943.60|
|Pharmaceutical|goods||||
|Co. Ltd.|||||
|Foshan Nanhai|Purchase of||||
|||338,654.17|No|118,741.27|
|Medicine Co., Ltd.|goods||||
|Sinopharm Group|||||
||Purchase of||||
|Southwest||305,128.20|No|10,165.02|
||goods||||
|Medicine Co., Ltd.|||||
|Sinopharm Group|||||
||Purchase of||||
|Chemical Reagent||161,323.08|No|83,248.85|
||goods||||
|Suzhou Co., Ltd.|||||
|Shenyang Hongqi|||||
||Purchase of||||
|Pharmaceutical||240,758.99|No|80,871.78|
||goods||||
|Co., Ltd.|||||
|Sinopharm Group|||||
||Purchase of||||
|Guorui Medicine||234,240.60|No|257,749.58|
||goods||||
|Co., Ltd.|||||
|Sinopharm|Purchase of||||
|||229,075.88|No|2,027,299.39|
|Holding Hubei|goods||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||
|-|-|-|-|-|
|Co., Ltd.|||||
|Guilin South|||||
||Purchase of||||
|pharmaceutical||226,311.99|No|206,809.88|
||goods||||
|Co., Ltd.|||||
|Foshan|||||
|Fengliaoxing|Purchase of||||
|||168,830.34|No|0.00|
|Pharmaceutical|goods||||
|Co., Ltd.|||||
|Handan|||||
||Purchase of||||
|Pharmaceutical||150,992.73|No|65,307.69|
||goods||||
|Co., Ltd|||||
|Sinopharm|||||
||Purchase of||||
|Holding Hunan||130,865.31|No|9,009,304.51|
||goods||||
|Co., Ltd.|||||
|Yichang|||||
|Humanwell|Purchase of||||
|||122,603.64|No|22,017.09|
|Pharmaceutical|goods||||
|Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Holding Luoyang||97,094.01|No|0.00|
||goods||||
|Co., Ltd.|||||
|Shanghai Modern|||||
|Hasen (Shangqiu)|Purchase of||||
|||87,488.42|No|139,950.72|
|Pharmacertical|goods||||
|Co., Ltd.|||||
|Sichuan Jiang You|||||
|Zhong Ba Science|||||
||Purchase of||||
|and Technology||63,716.82|No|0.00|
||goods||||
|Development Co.,|||||
|Ltd.|||||
|Sinopharm|||||
|Xingsha|Purchase of||||
|||60,354.91|No|51,784.45|
|Pharmaceuticals|goods||||
|(Xiamen) Co., Ltd.|||||
|Hunan Dongting|||||
||Purchase of||||
|Pharmaceutical||53,955.90|No|47,235.90|
||goods||||
|Co., Ltd.|||||
|Suzhou Erye|||||
||Purchase of||||
|Pharmaceutical||49,594.02|No|0.00|
||goods||||
|Limited Company|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||
|-|-|-|-|-|
|Sinopharm Guoda|||||
|Drug|Purchase of||||
|||48,160.32|No|6,981.60|
|Store(Shenzhen)|goods||||
|Chain Co., Ltd.|||||
|Shanghai Institute|||||
|of biomedical|Purchase of||||
|||39,205.99|No|0.00|
|Pharmaceutical|goods||||
|Co. Ltd|||||
|Sinopharm|||||
||Purchase of||||
|Holding Dalian||11,282.05|No|0.00|
||goods||||
|Co., Ltd.|||||
|Foshan|||||
|Fengliaoxing|Purchase of||||
|||9,415.93|No|0.00|
|Pharmaceutical|goods||||
|Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Holding Hainan||5,864.40|No|0.00|
||goods||||
|Hongyi Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Holding Shan`xi||5,230.38|No|6,123.49|
||goods||||
|Co., Ltd.|||||
|Sinopharm Group|||||
|Guangdong|||||
||Purchase of||||
|Medical||632.48|No|0.00|
||goods||||
|Inspection Co.,|||||
|Ltd|||||
|Sinopharm|||||
||Purchase of||||
|Holding Suzhou||187.18|No|-4,919.87|
||goods||||
|Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Holding Shanxi||0.00|No|261,572.93|
||goods||||
|Co., Ltd.|||||
|Sinopharm|||||
|Holding Beijing|||||
||Purchase of||||
|Kangchen||0.00|No|1,023,607.50|
||goods||||
|Bio-Pharmaceutic|||||
|al Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Holding Henan||0.00|No|20,782.77|
||goods||||
|Co., Ltd.|||||
|Sinopharm|Purchase of|0.00|No|14,666.67|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||
|-|-|-|-|-|
|Holding Dezhou|goods||||
|Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Holding Hainan||0.00|No|51,342.54|
||goods||||
|Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Holding Fujian||0.00|No|491,008.63|
||goods||||
|Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Holding Ningxia||0.00|No|2,569.50|
||goods||||
|Co., Ltd.|||||
|Sinopharm Yixin|Purchase of||||
|||0.00|No|61,102.56|
|Medicine Co., Ltd.|goods||||
|Sinopharm|||||
|Holding|Purchase of||||
|||0.00|No|131,917.94|
|Heilongjiang Co.,|goods||||
|Ltd.|||||
|Jiangsu Huanghe|||||
||Purchase of||||
|Pharmaceutical||0.00|No|4,935.91|
||goods||||
|Co., Ltd|||||
|Sinopharm Group|||||
|Shanghai|Purchase of||||
|||0.00|No|11,219.09|
|Medicine Device|goods||||
|Co., Ltd.|||||
|Shandong Lu Ya|||||
||Purchase of||||
|Pharmaceutical||0.00|No|349,143.80|
||goods||||
|Co., Ltd.|||||
|Guizhou Longlife|||||
||Purchase of||||
|Pharmacertical||-25.64|No|-7,666.67|
||goods||||
|Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Holding Macheng||-214.86|No|4,228,615.37|
||goods||||
|Co., Ltd.|||||
|Guangdong|||||
|Medi-World|Purchase of||||
|||-427.18|No|-329.44|
|Pharmacertical|goods||||
|Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Holding Sanyi||-1,054.87|No|0.00|
||goods||||
|Medicine(Wuhu)|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||||
|-|-|-|-|-|-|
|Co., Ltd.||||||
|Shenzhen Wanle|Purchase of|||||
|||-7,097.80||No|15,230,871.29|
|Medical Co., Ltd.|goods|||||
|Sinopharm||||||
||Purchase of|||||
|Holding Jiangsu||-19,408.20||No|32,365.44|
||goods|||||
|Co., Ltd.||||||
|Sinopharm||||||
|Chongqing||||||
|Pharmaceutical|Other labor|||||
|||31,325,674.00||No|0.00|
|and Medical|service|||||
|Industry Design||||||
|Institute||||||
|Sinopharm||||||
|Chongqing||||||
|Pharmaceutical||||||
||Designing fee|1,129,620.00||No|2,855,000.00|
|and Medical||||||
|Industry Design||||||
|Institute||||||
|Sinopharm Group|Transportation|||||
|Medicine Logistic|and warehousing|922,860.39||No|791,201.60|
|Co., Ltd.|charges|||||
|Sinopharm||||||
|Chongqing||||||
||Pinshan|||||
|Pharmaceutical|||82,000,000.00|||
||management|527,358.49||No|5,372,663.52|
|and Medical||||||
||fees|||||
|Industry Design||||||
|Institute||||||
|Sinopharm Group|Information|||||
|Medicine Logistic|system|443,026.99||No|284,905.66|
|Co., Ltd.|maintenance|||||
|China scientific||||||
||Other labor|||||
|equipment||192,500.00||No|0.00|
||service|||||
|company||||||
|Shanghai Institute|Research and|||||
|of Pharmaceutical|development|175,471.70||No|202,500.00|
|Industry|expenses|||||
|Reed Sinopharm||||||
||Exhibition|||||
|Exhibitions Co.,||34,000.00||No|44,000.00|
||expenses|||||
|Ltd.||||||
|Sinopharm|Research and|||||
|||16,500.00||No|0.00|
|Xingsha|development|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||
|-|-|-|-|-|
|Pharmaceuticals|expenses||||
|(Xiamen) Co., Ltd.|||||
|Sinopharm|||||
|Holding Shanghai|Other labor||||
|||3,600.00|No|0.00|
|management|service||||
|consulting branch|||||
|Sinopharm Group|Research and||||
|Chemical Reagent|development|1,625.64|No|765.39|
|Suzhou Co., Ltd.|expenses||||
|Sinopharm|||||
||Other labor||||
|Holding Shenyang||0.00|No|400,619.60|
||service||||
|Co., Ltd.|||||
|Sinopharm|||||
|Holding Guoda|Product||||
|Drug Store|promotion|0.00|No|21,266.28|
|Guangdong Co.,|expense||||
|Ltd.|||||
|Sinopharm|||||
||Product||||
|Holding Guoda|||||
||promotion|0.00|No|2,500.00|
|Pharmacy Co.,|||||
||expense||||
|Ltd.|||||

Sales of goods /Rendering of service
Unit:RMB
|||||
|-|-|-|-|
||Content of related party|For the six months ended|For the six months ended|
|Related party||||
||transactions|30 June 2015|30 June 2014|
|Sinopharm Holding Hunan||||
||Sales of goods|77,915,186.98|72,105,886.82|
|Co., Ltd.||||
|Foshan Nanhai Uptodate &||||
||Sales of goods|76,833,546.36|66,588,829.16|
|Special Medicines Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|47,623,472.79|26,390,588.97|
|Shandong Co., Ltd.||||
|Sinopharm Sichuan||||
||Sales of goods|43,440,891.95|0.00|
|Pharmaceutical Co., Ltd.||||
|Sinopharm Holding Hainan||||
||Sales of goods|42,611,254.30|39,682,622.73|
|Co., Ltd.||||
|Sinopharm Holding Beijing||||
||Sales of goods|40,646,909.68|34,745,031.52|
|Co., Ltd.||||
|Foshan Nanhai Medicine|Sales of goods|40,499,542.53|31,285,279.06|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
|Co., Ltd.||||
|Sinopharm Group (Tianjin)||||
|Eastern Bokang|Sales of goods|37,385,364.68|28,100,874.23|
|Pharmaceutical Co., Ltd.||||
|Sinopharm Le -Ren-Tang||||
||Sales of goods|34,684,209.72|36,907,139.61|
|Medicine Co., Ltd.||||
|Sinopharm Holding Guoda||||
|Drug Store Guangdong Co.,|Sales of goods|34,048,558.78|33,487,776.29|
|Ltd.||||
|Sinopharm Holding Hubei||||
||Sales of goods|32,219,359.25|43,201,513.00|
|Co., Ltd.||||
|Sinopharm Holding Beijing||||
||Sales of goods|31,818,003.87|30,414,890.53|
|Huahong Co., Ltd.||||
|Sinopharm Group Xinjiang||||
|Special Drugs National|Sales of goods|31,056,792.97|27,779,324.67|
|Pharmaceutical Co., Ltd.||||
|Sinopharm Holding Ningxia||||
||Sales of goods|21,192,630.53|22,098,551.90|
|Co., Ltd.||||
|Sinopharm Guoda Drug||||
|Store Guangxi Chain Co.,|Sales of goods|16,268,845.77|14,748,263.80|
|Ltd.||||
|Sinopharm Group|Sales of goods|15,579,638.74|12,503,255.00|
|Sinopharm Holding Sub||||
||Sales of goods|15,497,277.04|28,351,930.01|
|Marketing Center Co., Ltd.||||
|Sinopharm Holding Tianjin||||
||Sales of goods|15,395,118.07|11,864,858.00|
|Co., Ltd.||||
|Sinopharm Group Southwest||||
||Sales of goods|15,212,888.04|15,688,262.79|
|Medicine Co., Ltd.||||
|Sinopharm Holding Wenzhou||||
||Sales of goods|15,099,938.24|12,934,486.31|
|Co., Ltd.||||
|Sinopharm Holding Hainan||||
||Sales of goods|12,678,051.93|11,565,687.67|
|Hongyi Co., Ltd.||||
|Sinopharm Holding Nantong||||
||Sales of goods|12,309,543.99|13,355,319.76|
|Co., Ltd.||||
|Sinopharm Holding Xinjiang||||
|Special Drugs Western|Sales of goods|11,741,123.13|12,691,533.61|
|Pharmaceutical Co., Ltd.||||
|Sinopharm Holding Zhejiang||||
||Sales of goods|11,611,214.64|18,471,568.26|
|Co., Ltd.||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
|Sinopharm Holding Fuzhou||||
||Sales of goods|9,718,182.05|6,648,904.14|
|Co., Ltd.||||
|Sinopharm Holding Yunnan||||
||Sales of goods|9,419,118.45|7,109,332.86|
|Co., Ltd.||||
|Sinopharm Holding Jinzhou||||
||Sales of goods|9,282,821.20|10,859,701.89|
|Co., Ltd.||||
|Sinopharm Holding Henan||||
||Sales of goods|8,870,236.38|5,559,429.50|
|Co., Ltd.||||
|Foshan Chancheng District||||
||Sales of goods|8,798,005.75|0.00|
|Pharmaceutical Co., Ltd||||
|Guangdong Dong Fang||||
|Uptodate & Special|Sales of goods|7,213,575.88|8,344,388.58|
|Medicines Co., Ltd.||||
|Sinopharm Holding Shanxi||||
||Sales of goods|5,999,416.05|4,114,435.39|
|Co., Ltd.||||
|Sinopharm Holding Shanxi||||
||Sales of goods|5,960,444.74|4,197,414.13|
|Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|5,782,044.41|7,224,474.70|
|Shenyang Co., Ltd.||||
|Sinopharm Holding Guizhou||||
||Sales of goods|5,116,359.93|3,259,653.28|
|Co., Ltd.||||
|Sinopharm Holding Chengdu||||
||Sales of goods|4,656,653.54|0.00|
|Pharmaceutical Co., Ltd.||||
|Sinopharm Guoda Drug||||
|Store Jiangmen Chain Co.,|Sales of goods|4,525,339.36|3,321,010.31|
|Ltd.||||
|Sinopharm Holding||||
||Sales of goods|3,443,566.66|4,182,733.84|
|Heilongjiang Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|3,253,616.01|4,493,029.85|
|Yangzhou Co., Ltd.||||
|Foshan Chancheng District||||
||Sales of goods|3,007,579.36|5,086,729.68|
|Central Hospital||||
|China National Medicines||||
||Sales of goods|2,441,499.27|2,670,378.79|
|Co., Ltd.||||
|Sinopharm Holding Gansu||||
||Sales of goods|2,123,949.16|1,325,545.44|
|Co., Ltd.||||
|Sinopharm Holding Qinghai||||
||Sales of goods|2,037,902.58|1,238,266.68|
|Co., Ltd.||||
|Sinopharm Holding Qingdao|Sales of goods|1,789,913.20|2,209,254.70|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
|Co., Ltd.||||
|Sinopharm Holding Fujian||||
||Sales of goods|1,708,344.06|2,324,732.15|
|Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|1,604,406.39|1,731,905.99|
|Yancheng Co., Ltd.||||
|Sinopharm Holding Wuxi||||
||Sales of goods|1,593,582.85|2,131,601.56|
|Co., Ltd.||||
|Sinopharm Holding Jilin Co.,||||
||Sales of goods|1,580,127.02|2,349,302.00|
|Ltd.||||
|Sinopharm Holding Inner||||
||Sales of goods|1,529,454.28|1,417,306.25|
|Mongolia Co., Ltd.||||
|Sinopharm Holding Guoda||||
||Sales of goods|1,307,427.35|887,680.93|
|Pharmacy Co., Ltd.||||
|Sinopharm Lerentang||||
||Sales of goods|1,254,769.21|927,692.31|
|Tangshan Medicine Co., Ltd.||||
|Sinopharm Holding Suzhou||||
|Kangmin Pharmaceutical Co.|Sales of goods|1,125,856.31|0.00|
|Ltd.||||
|Sinopharm Holding Lunan||||
||Sales of goods|978,264.96|736,160.68|
|Co., Ltd.||||
|Sinopharm Holding Xuzhou||||
||Sales of goods|910,548.70|4,958,689.10|
|Co., Ltd.||||
|Chongqing Yaoyou||||
||Sales of goods|794,871.79|12,201,923.07|
|Pharmaceutical Co., Ltd.||||
|Sinopharm Holding Longyan||||
||Sales of goods|794,650.72|662,502.50|
|Co., Ltd.||||
|Sinopharm Holding Tianjin||||
||Sales of goods|777,435.92|1,095,282.10|
|North Medicine Co., Ltd.||||
|Sinopharm Holding Taizhou||||
||Sales of goods|732,858.62|895,744.78|
|Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|660,609.25|932,349.94|
|Quanzhou Co., Ltd.||||
|Sinopharm Holding Dalian||||
||Sales of goods|607,011.05|809,692.99|
|Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|591,571.81|5,591,245.35|
|Chongqing Co., Ltd.||||
|Sinopharm Holding Ningde||||
||Sales of goods|464,264.03|528,805.48|
|Co., Ltd.||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
|Sinopharm Holding Shan`xi||||
||Sales of goods|442,999.38|540,110.85|
|Co., Ltd.||||
|Sinopharm Holding Putian||||
||Sales of goods|381,461.55|633,318.71|
|Co., Ltd.||||
|Sinopharm Holding||||
|Changzhou Medical logistics|Sales of goods|356,495.77|282,139.32|
|center Co., Ltd.||||
|Sinopharm Holding Anqing||||
||Sales of goods|327,912.83|622,112.83|
|Co., Ltd.||||
|Sinopharm Holding Jiangsu||||
||Sales of goods|309,194.86|177,248.72|
|Co., Ltd.||||
|Sinopharm Lerentang||||
|Qinhuangdao Medicine Co.,|Sales of goods|307,179.50|142,871.79|
|Ltd.||||
|Sinopharm Holding Anhui||||
||Sales of goods|301,567.25|-6,872.42|
|Co., Ltd.||||
|Sinopharm Holding Changde||||
||Sales of goods|281,577.44|356,700.14|
|Co., Ltd.||||
|Sinopharm Holding Sanming||||
||Sales of goods|237,305.65|131,856.84|
|Co., Ltd.||||
|Sinopharm Holding Jiangxi||||
||Sales of goods|228,099.69|83,923.13|
|Co., Ltd.||||
|Sinopharm Holding Yantai||||
||Sales of goods|227,815.40|302,765.11|
|Co., Ltd.||||
|Jiang Meng Renren Medical||||
||Sales of goods|199,355.46|0.00|
|instrument Co., Ltd.||||
|Sinopharm Group Guorui||||
||Sales of goods|134,615.38|0.00|
|Medicine Co., Ltd.||||
|Qinghai Medical||||
|Pharmaceutical Material Co.,|Sales of goods|113,333.33|0.00|
|Ltd.||||
|Hetian Region Ankang Chain||||
||Sales of goods|92,155.52|0.00|
|Drugstore Co., Ltd.||||
|China National Scientific||||
|Instruments & Materials|Sales of goods|81,230.76|121,846.17|
|Imp/Exp Shenzhen CO., Ltd||||
|Shanghai Merro||||
||Sales of goods|77,694.03|459,604.35|
|Pharmaceutical Co., Ltd.||||
|Guang dong South|Sales of goods|76,327.18|1,122,538.67|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
|Pharmaceutical Foreign||||
|Trade Co., Ltd.||||
|Sinopharm Holding Suzhou||||
||Sales of goods|68,948.73|243,203.42|
|Co., Ltd.||||
|Shanghai Donghong||||
||Sales of goods|63,538.46|493,594.87|
|Medicine Co., Ltd.||||
|Sinopharm Group Medicine||||
||Sales of goods|57,692.30|0.00|
|Logistic Co., Ltd.||||
|Beijing Fusheng Tiandi||||
||Sales of goods|56,697.41|25,673.07|
|Property Management Ltd.||||
|Shenzhen Wanle Medical||||
||Sales of goods|51,295.73|0.00|
|Co., Ltd.||||
|Foshan Chanyixing Medicine||||
||Sales of goods|50,322.00|0.00|
|Development Co Ltd||||
|China Sinopharm||||
||Sales of goods|44,871.79|2,318,706.88|
|International Corporation||||
|Shanxi Guoyi Drug Store||||
||Sales of goods|43,794.85|5,794.87|
|Co., Ltd.||||
|Sinopharm Holding ChiFeng||||
||Sales of goods|25,969.23|77,907.69|
|Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|24,094.37|10,584.63|
|Zhangzhou Co., Ltd.||||
|Sichuan Kang Daxin||||
||Sales of goods|16,615.38|0.00|
|Pharmaceutical Co., Ltd.||||
|Sinopharm Holding Anyang||||
||Sales of goods|14,905.98|5,962.39|
|Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|14,423.93|3,646.14|
|Qianxinan Co., Ltd.||||
|Sinopharm Holding Dezhou||||
||Sales of goods|12,923.07|7,179.49|
|Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|11,282.05|0.00|
|Liaocheng Co., Ltd.||||
|Sinopharm Holding Xinjiang||||
|Xinte Karamay|Sales of goods|11,075.89|7,179.49|
|Pharmaceutical Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|11,068.38|20,757.26|
|Changzhou Co., Ltd.||||
|Heilongjiang Sinopharm||||
||Sales of goods|11,025.63|7,948.71|
|Medical Herbs Co., Ltd.||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
|Sinopharm Group Shanghai||||
|Likang Pharmaceutical Co.|Sales of goods|10,829.08|182,188.03|
|Ltd.||||
|Sinopharm Holding||||
|(Yangzhou) Chinese Western|Sales of goods|10,660.51|20,740.51|
|Medicine Branch Co., Ltd.||||
|Sinopharm Holding Beijing||||
|Kangchen|Sales of goods|10,568.21|1,038,706.67|
|Bio-Pharmaceutical Co., Ltd.||||
|Sinopharm Holding Jining||||
||Sales of goods|10,461.52|7,179.49|
|Co., Ltd.||||
|Sinopharm Holding Xinyu||||
||Sales of goods|6,478.65|0.00|
|Co., Ltd.||||
|Sinopharm Holding Nanping||||
||Sales of goods|3,743.58|0.00|
|New Power Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|3,692.31|0.00|
|Chenzhou Co., Ltd.||||
|Sinopharm Holding Shangqiu||||
||Sales of goods|3,226.50|0.00|
|Co., Ltd.||||
|Sinopharm Holding Zhoukou||||
||Sales of goods|2,726.38|7,047.05|
|Co., Ltd.||||
|Shanghai Wanli Medical||||
||Sales of goods|2,136.75|0.00|
|Beauty Clinic Limited||||
|Sinopharm Holding Shanxi||||
||Sales of goods|1,923.07|0.00|
|Linfen Co., Ltd.||||
|Sinopharm (Shanghai)||||
||Sales of goods|1,846.16|2,025.63|
|E-Health Co,.Ltd.||||
|Sinopharm Holding Xinxiang||||
||Sales of goods|931.62|2,683.77|
|Co.,Ltd||||
|Sinopharm Holding Puyang||||
||Sales of goods|305.98|0.00|
|Co., Ltd.||||
|Sinopharm Holding Huaian||||
||Sales of goods|0.00|86,030.77|
|Co., Ltd.||||
|Sinopharm Holding Jinan||||
||Sales of goods|0.00|76,153.85|
|Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|0.00|41,329.43|
|HongKong Co., Ltd.||||
|Guoda Shenyang Tianyitang||||
||Sales of goods|0.00|36,923.07|
|Pharmacy Chain Store Co.,||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
|Ltd.||||
|Sinopharm Holding Wuhu||||
||Sales of goods|0.00|9,230.76|
|Co., Ltd.||||
|Huayi Pharmaceutical Co.,||||
||Sales of goods|0.00|7,521.36|
|Ltd||||
|Sinopharm Holding Kaifeng||||
||Sales of goods|0.00|6,444.44|
|Co., Ltd.||||
|Sinopharm Xinjiang Korla||||
||Sales of goods|0.00|5,733.34|
|Pharmaceutical Co., Ltd.||||
|Sinopharm Holding Dandong||||
||Sales of goods|0.00|5,429.06|
|Co., Ltd.||||
|Sinopharm Holding Nanping||||
||Sales of goods|0.00|4,530.60|
|Co., Ltd.||||
|Sinopharm Holding Tongliao||||
||Sales of goods|0.00|4,487.18|
|Co., Ltd.||||
|Shanghai Nutraceuticals||||
||Sales of goods|0.00|3,316.24|
|(Shanghai) Co., Ltd.||||
|Shanghai Tongyu Information||||
||Sales of goods|0.00|2,564.10|
|Technology Co., Ltd.||||
|Sinopharm Holding Zhejiang||||
||Sales of goods|0.00|427.36|
|Biological Product Co., Ltd.||||
|Shanghai Nuoyun Marketing||||
||Sales of goods|-155,982.92|846.15|
|Consulting Co., Ltd.||||
|China National Medicines|Dispatching and|||
|||2,856,084.27|2,172,980.55|
|Co., Ltd.|transportation charges|||
|Sinopharm Holding Guoda||||
||Dispatching and|||
|Drug Store Guangdong Co.,||2,418,885.86|1,689,083.80|
||transportation charges|||
|Ltd.||||
|Sinopharm Group Medicine|Dispatching and|||
|||2,046,871.70|3,255,073.15|
|Logistic Co., Ltd.|transportation charges|||
|Foshan Nanhai Uptodate &|Dispatching and|||
|||1,615,666.54|1,768,562.85|
|Special Medicines Co., Ltd.|transportation charges|||
|Foshan Nanhai Medicine|Dispatching and|||
|||1,327,072.71|1,395,859.92|
|Co., Ltd.|transportation charges|||
|Sinopharm Group|Entrusted revenue|250,000.00|250,000.00|
|Shenzhen Wanwei Medicine||||
||Consultation revenue|183,714.43|131,079.23|
|trading Co., Ltd.||||
|China National|Entrusted revenue|125,000.00|125,000.00|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
|Pharmaceutical Foreign||||
|Trade Co., Ltd.||||
|Sinopharm Holding Guoda||||
|Drug Store Guangzhou|Parking fees|8,500.00|6,000.00|
|Chain Co., Ltd.||||
|Shenzhen Wanle Medical||||
||Consultation revenue|0.00|52,160.54|
|Co., Ltd.||||
|Winteam Pharmaceutical||||
||Consultation revenue|0.00|6,314.42|
|Group Ltd.||||

(2)Lease
The Group as leaser:
Unit:RMB
|||||
|-|-|-|-|
|Lessees|Type of assets use for|Rental income of this period|Rental income of last period|
|Sinopharm Guoda Drug||||
|Store Guangxi Chain Co.,|Building|822,778.08|814,333.74|
|Ltd.||||
|Sinopharm Guoda Drug||||
|Store Guangxi Chain Co.,|Building|165,900.00|165,900.00|
|Ltd.||||
|Sinopharm Guoda Drug||||
|Store(Shenzhen) Chain Co.,|Building|195,084.00|304,695.00|
|Ltd.||||
|Sinopharm Guoda Drug||||
|Store Guangxi Chain Co.,|Building|189,384.72|190,707.72|
|Ltd.||||
|Sinopharm Group||||
|Guangdong Medicine Device|Building|141,900.00|135,144.00|
|Co., Ltd.||||
|Sinopharm Guoda Drug||||
|Store(Shenzhen) Chain Co.,|Building|52,783.38|51,246.00|
|Ltd.||||
|China National Medicines||||
||Building|43,200.00|43,200.00|
|Co., Ltd.||||
|Sinopharm Guoda Drug||||
|Store(Shenzhen) Chain Co.,|Building|30,000.00|30,000.00|
|Ltd.||||
|China National|Building|0.00|21,600.00|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
|Pharmaceutical Industry||||
|Medicine distribution Co. Ltd.||||
|Sinopharm Holding Guoda||||
|Drug Store Guangzhou|Building|141,050.00|0.00|
|Chain Co., Ltd.||||
|Sinopharm Holding Sub||||
||Building|32,400.00|0.00|
|Marketing Center Co., Ltd.||||

The Group as lessee:
Unit:RMB
|||||
|-|-|-|-|
|||Lease expenses of this||
|Leasers|Type of assets use for||Lease expenses of last period|
|||period||
|Sinopharm Group Medicine||||
||Equipment|3,750,000.00|3,750,000.00|
|Logistic Co., Ltd.||||
|Sinopharm Group Medicine||||
||Building|3,540,000.00|3,540,000.00|
|Logistic Co., Ltd.||||
|Shaoguan Wujiang District||||
|Muyang Medicine||||
||Building|484,969.92|324,789.24|
|Information Consultant Co.,||||
|Ltd.||||
|Wang Yang|Building|276,000.00|276,000.00|
|Foshan Nanhai Medicine||||
||Building|128,160.00|110,880.00|
|Group Co., Ltd.||||

(3)Guarantees provided
As a guarantor
Unit:RMB
||||||
|-|-|-|-|-|
|||Beginning date of|Maturity date of|Guarantee obligation|
|Guarantee|Amount||||
|||guarantee contract|guarantee contract|expired|
|Sinopharm Holding|||||
||30,096,431.81|12 December 2014|31 October 2015|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
||34,570,639.59|30 June 2014|29 June 2015|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
||229,425,743.53|19 September 2014|18 September 2015|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
||314,245,039.27|06 May 2015|06 May 2016|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|307,337,775.28|16 July 2014|15 July 2015|No|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||
|-|-|-|-|-|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
||159,341,870.32|20 May 2015|20 May 2016|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
||194,778,819.03|30 April 2014|30 April 2015|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
||250,163,981.05|25 June 2014|08 June 2015|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
||280,793,407.86|15 May 2015|14 May 2016|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
|Guangdong Yuexing|6,930,103.40|20 May 2015|20 May 2016|No|
|Co., Ltd.|||||
|Sinopharm Holding|||||
|Guangdong Yuexing|12,019,194.50|16 July 2014|15 July 2015|No|
|Co., Ltd.|||||
|Sinopharm Holding|||||
||6,500,000.00|25 October 2014|25 October 2015|No|
|Guangxi Co., Ltd.|||||
|Sinopharm Holding|||||
||105,172,399.18|26 June 2014|26 June 2015|No|
|Guangxi Co., Ltd.|||||
|Sinopharm Holding|||||
||169,659,032.18|16 July 2014|15 July 2015|No|
|Guangxi Co., Ltd.|||||
|Sinopharm Holding|||||
||112,188,535.57|19 April 2014|18 April 2015|No|
|Guangxi Co., Ltd.|||||
|Sinopharm Holding|||||
||19,250,027.34|29 May 2015|29 May 2016|No|
|Guangxi Co., Ltd.|||||
|Sinopharm Holding|||||
||55,487,759.61|12 May 2015|29 December 2015|No|
|Guangxi Co., Ltd.|||||
|Sinopharm Holding|||||
|Jiangmen Renren Co.,|17,437,149.43|16 July 2014|15 July 2015|No|
|Ltd.|||||
|Sinopharm Medicine|||||
|Holding Liuzhou Co.,|75,653,561.29|06 November 2014|15 July 2015|No|
|Ltd.|||||
|Sinopharm Medicine|||||
|Holding Liuzhou Co.,|32,299,557.53|20 March 2015|19 March 2016|No|
|Ltd.|||||
|Sinopharm Medicine|||||
|Holding Liuzhou Co.,|32,346,299.52|09 September 2014|08 September 2015|No|
|Ltd.|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||
|-|-|-|-|-|
|Sinopharm Holding|||||
||14,600,944.46|17 September 2014|15 July 2015|No|
|Zhanjiang Co., Ltd.|||||
|Sinopharm Group|||||
|Zhijun (Suzhou)|||||
||25,692,321.48|27 May 2014|27 May 2015|No|
|Pharmaceutical Co.|||||
|Ltd.|||||
|Sinopharm Group|||||
|Zhijun (Suzhou)|||||
||29,279,000.00|16 July 2014|15 July 2015|No|
|Pharmaceutical Co.|||||
|Ltd.|||||
|Sinopharm Group|||||
|Zhijun (Suzhou)|||||
||3,203,849.81|01 January 2015|01 July 2015|No|
|Pharmaceutical Co.|||||
|Ltd.|||||
|Sinopharm Group|||||
|Zhijun (Suzhou)|||||
||4,410,000.00|04 January 2015|24 October 2015|No|
|Pharmaceutical Co.|||||
|Ltd.|||||
|Shenzhen Zhijun|||||
|Pharmaceutical Co.,|22,815,555.20|25 August 2014|25 August 2015|No|
|Ltd.|||||
|Sinopharm holding|||||
|Shenzhen Yanfeng|19,481,663.78|27 October 2014|27 October 2015|No|
|Co.,Ltd|||||
|Sinopharm holding|||||
|Shenzhen Yanfeng|64,621,126.80|16 July 2014|15 July 2015|No|
|Co.,Ltd|||||
|Sinopharm holding|||||
|Shenzhen Yanfeng|16,000,000.00|28 May 2015|15 February 2016|No|
|Co.,Ltd|||||
|Sinopharm holding|||||
|Shenzhen Yanfeng|3,795,523.03|15 May 2015|14 May 2016|No|
|Co.,Ltd|||||
|Sinopharm Holding|||||
||7,844,562.13|16 July 2014|15 July 2015|No|
|Shaoguan Co., Ltd.|||||
|Sinopharm Holding|||||
||5,462,230.84|16 July 2014|15 July 2015|No|
|Material Co., Ltd.|||||

As guarantee
Unit:RMB
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||
|-|-|-|-|-|
|||Beginning date of|Maturity date of|Guarantee obligation|
|Guarantor|Amount||||
|||guarantee contract|guarantee contract|expired|
|Shenzhen Zhijun|||||
|Pharmaceutical Co.,|60,000,000.00|15 May 2015|14 May 2016|No|
|Ltd.|||||
|Shenzhen Zhijun|||||
|Pharmaceutical Co.,|125,076,375.12|18 June 2015|15 June 2016|No|
|Ltd.|||||
|Shenzhen Zhijun|||||
|Pharmaceutical Co.,|105,000,000.00|28 May 2015|15 February 2016|No|
|Ltd.|||||
|Shenzhen Zhijun|||||
|Pharmaceutical Co.,|21,743,592.63|04 April 2014|03 April 2022|No|
|Ltd.|||||
|Shenzhen Zhijun|||||
|Pharmaceutical Co.,|200,000.00|17 July 2014|17 July 2020|No|
|Ltd.|||||

Sinopharm Guangzhou as guarantee
Unit:RMB
||||||
|-|-|-|-|-|
|||Beginning date of|Maturity date of|Guarantee obligation|
|Guarantor|Amount||||
|||guarantee contract|guarantee contract|expired|
|Sinopharm Group|483,029,496.81|03 June 2014|03 June 2015|No|

(4)Financing
Unit:RMB
||||||
|-|-|-|-|-|
|Related Party|Amount|Effective date|Maturity date|Notes|
|Borrowed from-|||||
|Group Financial Co.|40,000,000.00|28 February 2015|28 February 2016|Short-term borrowings|
|CNPGC|31,600,000.00|07 May 2014|07 May 2017|Entrusted loan|

(5)Interest Expense
Unit:RMB
|||||
|-|-|-|-|
|||For the six months ended|For the six months ended|
|Related Party|Type of transaction|||
|||30 June 2015|30 June 2014|
||Interest paid for the loans from related|||
|CNPGC||839,572.50|260,700.00|
||party|||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
||Interest paid for the loans from Group|||
|Group Financial Co.||667,955.53|3,976,833.33|
||Financial Co|||
|Sinopharm Holding Sub||||
||Charges of discounted notes payable|284,004.78|2,421,609.56|
|Marketing Center Co., Ltd.||||
|Sinopharm Group|Charges of discounted notes payable|391,286.97|520,387.02|
|Sinopharm Group|Interest paid for the loans from related|||
|||0.00|5,039,990.23|
||party|||
|Group Financial Co.|Charges of discounted notes payable|-|425,990.03|
|Total||2,182,819.78|12,645,510.17|

 (6)Interest Revenue
Unit:RMB
||||
|-|-|-|
||For the six months ended|For the six months ended|
|Type of transaction|||
||30 June 2015|30 June 2014|
|Deposit interest|15,368.24|12,702.39|

 6. Accounts receivable from and payables to related parties
(1)Accounts receivable from related parties
Unit:RMB
|||||||
|-|-|-|-|-|-|
|||30 June 2015||31 December 2014||
|Nature|Related parties||Provision for bad||Provision for bad|
|||Cost||Cost||
||||debts||debts|
||Foshan Nanhai|||||
|Accounts||||||
||Uptodate & Special|26,157,549.60|0.00|23,756,856.11|0.00|
|receivable||||||
||Medicines Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||22,437,075.54|0.00|25,600,093.77|0.00|
|receivable|Hunan Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||14,977,399.36|0.00|12,892,087.23|0.00|
|receivable|Beijing Co., Ltd.|||||
||Sinopharm|||||
|Accounts|Sichuan|||||
|||14,953,509.29|0.00|12,494,740.26|0.00|
|receivable|Pharmaceutical|||||
||Co., Ltd.|||||
||Sinopharm Group|||||
|Accounts|(Tianjin) Eastern|||||
|||14,282,156.22|0.00|7,484,251.20|0.00|
|receivable|Bokang|||||
||Pharmaceutical|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||||
|-|-|-|-|-|-|
||Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Shandong Co.,|13,325,378.92|0.00|10,216,514.39|0.00|
|receivable||||||
||Ltd.|||||
|Accounts|Foshan Nanhai|||||
|||11,927,363.32|0.00|11,979,793.06|0.00|
|receivable|Medicine Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||11,246,067.76|0.00|15,916,697.65|0.00|
|receivable|Hainan Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Beijing Huahong|10,995,794.33|0.00|7,890,664.87|0.00|
|receivable||||||
||Co., Ltd.|||||
||Sinopharm Le|||||
|Accounts||||||
||-Ren-Tang|10,449,518.90|0.00|14,234,771.99|0.00|
|receivable||||||
||Medicine Co., Ltd.|||||
||Foshan|||||
|Accounts|Chancheng District|||||
|||10,112,360.98|0.00|0.00|0.00|
|receivable|Pharmaceutical|||||
||Co., Ltd|||||
||Sinopharm Holding|||||
|Accounts|Guoda Drug Store|||||
|||9,172,073.04|0.00|9,704,626.52|0.00|
|receivable|Guangdong Co.,|||||
||Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||9,100,475.63|0.00|20,947,735.07|0.00|
|receivable|Hubei Co., Ltd.|||||
||Sinopharm Group|||||
||Xinjiang Special|||||
|Accounts||||||
||Drugs National|8,678,282.94|0.00|14,901,575.66|0.00|
|receivable||||||
||Pharmaceutical|||||
||Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||7,169,150.84|0.00|6,219,986.94|0.00|
|receivable|Tianjin Co., Ltd.|||||
||Sinopharm Group|||||
|Accounts||||||
||Southwest|6,661,956.37|0.00|6,859,315.42|0.00|
|receivable||||||
||Medicine Co., Ltd.|||||
|Accounts||||||
||Sinopharm Group|6,438,154.10|0.00|5,347,281.64|0.00|
|receivable||||||
|Accounts|Sinopharm Holding|||||
|||5,684,798.06|0.00|5,904,534.60|0.00|
|receivable|Ningxia Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||5,424,259.60|0.00|2,924,497.97|0.00|
|receivable|Nantong Co., Ltd.|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||||
|-|-|-|-|-|-|
||Sinopharm Guoda|||||
|Accounts|Drug Store|||||
|||5,058,806.52|0.00|6,589,054.06|0.00|
|receivable|Guangxi Chain|||||
||Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||4,985,313.27|0.00|5,268,486.11|0.00|
|receivable|Wenzhou Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Sub Marketing|4,051,845.16|0.00|4,591,981.10|0.00|
|receivable||||||
||Center Co., Ltd.|||||
||Sinopharm Holding|||||
||Xinjiang Special|||||
|Accounts||||||
||Drugs Western|3,660,969.04|0.00|3,770,263.86|0.00|
|receivable||||||
||Pharmaceutical|||||
||Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Hainan Hongyi|3,430,886.34|0.00|2,604,871.82|0.00|
|receivable||||||
||Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||3,173,457.36|0.00|1,826,590.08|0.00|
|receivable|Shanxi Co., Ltd.|||||
||Sinopharm Group|||||
|Accounts||||||
||Medicine Logistic|2,822,507.06|0.00|3,521,227.69|0.00|
|receivable||||||
||Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||2,521,730.78|0.00|1,505,859.96|0.00|
|receivable|Yunnan Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||2,285,855.98|0.00|2,847,145.76|0.00|
|receivable|Jinzhou Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||2,234,798.32|0.00|1,854,656.73|0.00|
|receivable|Shanxi Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||2,202,113.85|0.00|2,762,374.20|0.00|
|receivable|Henan Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||1,855,407.42|0.00|1,239,408.42|0.00|
|receivable|Fuzhou Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts|Chengdu|||||
|||1,803,998.02|0.00|38,660.00|0.00|
|receivable|Pharmaceutical|||||
||Co., Ltd.|||||
||Guangdong Dong|||||
|Accounts|Fang Uptodate &|||||
|||1,774,774.56|0.00|2,350,070.03|0.00|
|receivable|Special Medicines|||||
||Co., Ltd.|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||||
|-|-|-|-|-|-|
|Accounts|Sinopharm Holding|||||
|||1,718,409.42|0.00|1,358,428.16|0.00|
|receivable|Shenyang Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||1,527,501.10|0.00|896,848.13|0.00|
|receivable|Guizhou Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Heilongjiang Co.,|1,485,109.28|0.00|1,642,680.23|0.00|
|receivable||||||
||Ltd.|||||
||Foshan|||||
|Accounts||||||
||Chancheng District|1,323,020.35|0.00|4,522,094.66|0.00|
|receivable||||||
||Central Hospital|||||
|Accounts|China National|||||
|||1,237,132.12|0.00|2,388,847.85|0.00|
|receivable|Medicines Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||1,008,763.00|0.00|1,476,745.88|0.00|
|receivable|Yangzhou Co., Ltd.|||||
||Sinopharm Guoda|||||
|Accounts|Drug Store|||||
|||972,206.70|0.00|1,251,757.35|0.00|
|receivable|Jiangmen Chain|||||
||Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||799,078.44|0.00|568,341.65|0.00|
|receivable|Gansu Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||697,049.29|0.00|494,390.88|0.00|
|receivable|Jilin Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Guoda Pharmacy|650,520.00|0.00|598,180.00|0.00|
|receivable||||||
||Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||618,717.00|0.00|344,726.94|0.00|
|receivable|Qinghai Co., Ltd.|||||
||Sinopharm|||||
|Accounts|Lerentang|||||
|||490,080.00|0.00|328,497.80|0.00|
|receivable|Tangshan|||||
||Medicine Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||488,264.80|0.00|6,756,555.98|0.00|
|receivable|Zhejiang Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||445,918.51|0.00|231,074.80|0.00|
|receivable|Longyan Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||439,635.28|0.00|241,355.80|0.00|
|receivable|Taizhou Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||431,411.13|0.00|825,483.13|0.00|
|receivable|Xuzhou Co., Ltd.|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||||
|-|-|-|-|-|-|
|Accounts|Sinopharm Holding|||||
|||427,455.68|0.00|563,011.50|0.00|
|receivable|Yancheng Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts|Suzhou Kangmin|||||
|||400,872.00|0.00|0.00|0.00|
|receivable|Pharmaceutical|||||
||Co. Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||398,134.14|0.00|786,713.14|0.00|
|receivable|Wuxi Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||394,478.36|0.00|864,753.84|0.00|
|receivable|Fujian Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||389,653.72|0.00|536,255.16|0.00|
|receivable|Dalian Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Chongqing Co.,|337,466.49|0.00|2,248,998.17|0.00|
|receivable||||||
||Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Inner Mongolia|323,446.74|0.00|327,343.79|0.00|
|receivable||||||
||Co., Ltd.|||||
||Sinopharm|||||
|Accounts|Lerentang|||||
|||322,920.00|0.00|30,744.72|0.00|
|receivable|Qinhuangdao|||||
||Medicine Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||267,786.00|0.00|0.00|0.00|
|receivable|Putian Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||193,278.43|0.00|565,976.79|0.00|
|receivable|Qingdao Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Quanzhou Co.,|185,925.12|0.00|179,570.31|0.00|
|receivable||||||
||Ltd.|||||
||Sinopharm Holding|||||
|Accounts|Changzhou|||||
|||140,553.67|0.00|246,140.48|0.00|
|receivable|Medical logistics|||||
||center Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Tianjin North|139,080.00|0.00|559,722.27|0.00|
|receivable||||||
||Medicine Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||131,198.27|0.00|160,260.67|0.00|
|receivable|Changde Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||115,002.00|0.00|70,416.00|0.00|
|receivable|Ningde Co., Ltd.|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||||
|-|-|-|-|-|-|
|Accounts|Sinopharm Holding|||||
|||105,842.56|0.00|84,878.70|0.00|
|receivable|Shan`xi Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||103,769.29|0.00|208,244.76|0.00|
|receivable|Jiangsu Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||94,500.00|0.00|197,948.00|0.00|
|receivable|Anqing Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||85,512.00|0.00|80,520.00|0.00|
|receivable|Yantai Co., Ltd.|||||
||Qinghai Medical|||||
|Accounts||||||
||Pharmaceutical|70,050.00|0.00|25,500.00|0.00|
|receivable||||||
||Material Co., Ltd.|||||
||China Sinopharm|||||
|Accounts||||||
||International|52,500.00|0.00|0.00|0.00|
|receivable||||||
||Corporation|||||
||Jiang Meng|||||
|Accounts|Renren Medical|||||
|||50,087.10|0.00|39,045.20|0.00|
|receivable|instrument Co.,|||||
||Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||47,921.10|0.00|45,812.40|0.00|
|receivable|Jiangxi Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||35,439.59|0.00|8,640.00|0.00|
|receivable|Sanming Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||33,420.00|0.00|177,054.00|0.00|
|receivable|Suzhou Co., Ltd.|||||
|Accounts|Shanxi Guoyi Drug|||||
|||30,300.00|0.00|15,060.00|0.00|
|receivable|Store Co., Ltd.|||||
||Foshan Chanyixing|||||
|Accounts|Medicine|||||
|||18,484.40|0.00|32,786.80|0.00|
|receivable|Development Co|||||
||Ltd|||||
||Guang dong South|||||
|Accounts|Pharmaceutical|||||
|||6,912.00|0.00|39,331.20|0.00|
|receivable|Foreign Trade Co.,|||||
||Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Nanping New|4,380.00|0.00|0.00|0.00|
|receivable||||||
||Power Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||3,190.00|0.00|5,755.00|0.00|
|receivable|Zhoukou Co., Ltd.|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||||
|-|-|-|-|-|-|
||Sinopharm Holding|||||
||(Yangzhou)|||||
|Accounts||||||
||Chinese Western|1,992.80|0.00|44,332.00|0.00|
|receivable||||||
||Medicine Branch|||||
||Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||1,500.00|0.00|426,089.07|0.00|
|receivable|Anhui Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||1,090.00|0.00|0.00|0.00|
|receivable|Xinxiang Co.,Ltd|||||
|Accounts|Sinopharm Holding|||||
|||500.00|0.00|2,180.00|0.00|
|receivable|Shangqiu Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts|Beijing Kangchen|||||
|||0.00|0.00|7,728.00|0.00|
|receivable|Bio-Pharmaceutica|||||
||l Co., Ltd.|||||
||Shanghai Tongyu|||||
|Accounts|Information|||||
|||0.00|0.00|3,000.00|0.00|
|receivable|Technology Co.,|||||
||Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||0.00|0.00|45,804.00|0.00|
|receivable|Puyang Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts|Hongkong|||||
|||0.00|0.00|63,009.89|0.00|
|receivable|International Co.|||||
||Ltd|||||
||Sinopharm Holding|||||
|Accounts|Beijing Tianxing|||||
|||0.00|0.00|1,711.00|0.00|
|receivable|Puxin Biological|||||
||Medical Co., Ltd.|||||
||Sinopharm Group|||||
|Accounts|Shanghai Likang|||||
|||0.00|0.00|128,320.00|0.00|
|receivable|Pharmaceutical|||||
||Co. Ltd.|||||
||Shanghai|||||
|Accounts|Nutraceuticals|||||
|||0.00|0.00|2,320.00|0.00|
|receivable|(Shanghai) Co.,|||||
||Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Changzhou Co.,|0.00|0.00|27,600.00|0.00|
|receivable||||||
||Ltd.|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||||
|-|-|-|-|-|-|
||Shanghai|||||
|Accounts||||||
||Donghong|0.00|0.00|224,610.00|0.00|
|receivable||||||
||Medicine Co., Ltd.|||||
||Shanghai Nuoyun|||||
|Accounts|Marketing|||||
|||0.00|0.00|100,000.00|0.00|
|receivable|Consulting Co.,|||||
||Ltd.|||||
||Shenzhen Wanwei|||||
|Accounts||||||
||Medicine trading|0.00|0.00|1,200.00|0.00|
|receivable||||||
||Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable||4,874,345.98|0.00|3,940,454.90|0.00|
||Hunan Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable||4,515,746.05|0.00|3,326,140.88|0.00|
||Hainan Co., Ltd.|||||
||Sinopharm Guoda|||||
||Drug Store|||||
|Notes receivable||4,074,440.19|0.00|3,379,828.22|0.00|
||Guangxi Chain|||||
||Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable|Hainan Hongyi|3,239,255.56|0.00|2,487,781.91|0.00|
||Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable||2,014,138.07|0.00|233,786.00|0.00|
||Tianjin Co., Ltd.|||||
||Sinopharm Group|||||
||(Tianjin) Eastern|||||
|Notes receivable|Bokang|1,871,320.00|0.00|0.00|0.00|
||Pharmaceutical|||||
||Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable|Shandong Co.,|1,255,125.58|0.00|200,000.00|0.00|
||Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable||900,000.00|0.00|183,647.00|0.00|
||Yancheng Co., Ltd.|||||
||Sinopharm|||||
||Sichuan|||||
|Notes receivable||875,741.95|0.00|0.00|0.00|
||Pharmaceutical|||||
||Co., Ltd.|||||
||Chongqing Yaoyou|||||
|Notes receivable|Pharmaceutical|724,410.89|0.00|1,661,088.00|0.00|
||Co., Ltd.|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||||
|-|-|-|-|-|-|
||Sinopharm Holding|||||
|Notes receivable||256,360.80|0.00|0.00|0.00|
||Anhui Co., Ltd.|||||
||Ningxia Guoda|||||
|Notes receivable|Drug StoreChain|250,000.00|0.00|0.00|0.00|
||Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable||213,812.80|0.00|0.00|0.00|
||Wuhu Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable||167,232.00|0.00|539,043.12|0.00|
||Shenyang Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable|Chongqing Co.,|142,297.20|0.00|366,032.00|0.00|
||Ltd.|||||
||Sinopharm Holding|||||
||Guoda Drug Store|||||
|Notes receivable||134,851.25|0.00|989,431.36|0.00|
||Guangdong Co.,|||||
||Ltd.|||||
||Sinopharm Holding|||||
||Chengdu|||||
|Notes receivable||105,451.00|0.00|0.00|0.00|
||Pharmaceutical|||||
||Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable||100,000.00|0.00|0.00|0.00|
||Ningxia Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable||99,733.50|0.00|0.00|0.00|
||Nanyang Co., Ltd.|||||
||Sinopharm Group|||||
||Xinjiang Special|||||
|Notes receivable|Drugs National|97,300.00|0.00|0.00|0.00|
||Pharmaceutical|||||
||Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable||68,664.00|0.00|36,456.00|0.00|
||Yantai Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable|Sub Marketing|26,000.00|0.00|0.00|0.00|
||Center Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable||0.00|0.00|148,911.00|0.00|
||Shan`xi Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable||0.00|0.00|378,000.00|0.00|
||Hubei Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable||0.00|0.00|184,000.00|0.00|
||Hunan Guoda|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||||
|-|-|-|-|-|-|
||Minshengtang|||||
||Drug Store Chain|||||
||Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable||0.00|0.00|223,074.00|0.00|
||Zhejiang Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable||0.00|0.00|12,800.00|0.00|
||Taizhou Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable||0.00|0.00|100,000.00|0.00|
||Anyang Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable||0.00|0.00|42,183.00|0.00|
||Huainan Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable||0.00|0.00|100,000.00|0.00|
||Fuyang Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable||0.00|0.00|39,055.91|0.00|
||Lunan Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable||0.00|0.00|119,016.00|0.00|
||Ningde Co., Ltd.|||||
||Sinopharm Le|||||
|Notes receivable|-Ren-Tang|0.00|0.00|84,503.26|0.00|
||Medicine Co., Ltd.|||||
||NanJing Iron &|||||
|Notes receivable||0.00|0.00|200,000.00|0.00|
||Steel Co., Ltd.|||||
||Nanjing Iron &|||||
||Steel Group|||||
|Notes receivable||0.00|0.00|100,000.00|0.00|
||International Trade|||||
||Co., Ltd|||||
||China National|||||
||Pharmaceutical|||||
|Notes receivable||0.00|0.00|30,000.00|0.00|
||Foreign Trade Co.,|||||
||Ltd.|||||
||Sinopharm Group|||||
|Other receivables|Medicine Logistic|1,215,000.00|0.00|1,215,000.00|0.00|
||Co., Ltd.|||||
|Other receivables|Sinopharm Group|250,000.00|0.00|250,000.00|0.00|
||China National|||||
||Pharmaceutical|||||
|Other receivables||131,823.93|0.00|250,000.00|0.00|
||Foreign Trade Co.,|||||
||Ltd.|||||
||Guang dong South|||||
|Other receivables||36.75|0.00|36.75|0.00|
||Pharmaceutical|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||||
|-|-|-|-|-|-|
||Foreign Trade Co.,|||||
||Ltd.|||||
||China National|||||
|Other receivables||0.00|0.00|184,730.14|0.00|
||Medicines Co., Ltd.|||||
||Sinopharm|||||
||Chongqing|||||
|Advances to|Pharmaceutical|||||
|||6,142,166.67|0.00|16,612,166.67|0.00|
|suppliers|and Medical|||||
||Industry Design|||||
||Institute|||||
||Winteam|||||
|Advances to||||||
||Pharmaceutical|5,003,400.42|0.00|0.00|0.00|
|suppliers||||||
||Group Ltd.|||||
||Chengdu|||||
|Advances to||||||
||Rongsheng|389,600.00|0.00|118,628.00|0.00|
|suppliers||||||
||Pharmacy Co., Ltd.|||||
||Wuhan Institute of|||||
|Advances to||||||
||Biological Products|362,200.00|0.00|310,400.00|0.00|
|suppliers||||||
||Co., Ltd.|||||
||Sinopharm Holding|||||
|Advances to||||||
||Sub Marketing|301,360.00|0.00|0.00|0.00|
|suppliers||||||
||Center Co., Ltd.|||||
|Advances to|Shenzhen Wanle|||||
|||45,602.97|0.00|45,602.97|0.00|
|suppliers|Medical Co., Ltd.|||||
||Shanghai Institute|||||
|Advances to||||||
||of Pharmaceutical|40,000.00|0.00|0.00|0.00|
|suppliers||||||
||Industry|||||
||Sino-Swed|||||
|Advances to||||||
||Pharmaceutical|18,400.00|0.00|0.00|0.00|
|suppliers||||||
||Corp.Ltd.|||||
||Foshan Nanhai|||||
|Advances to||||||
||Uptodate & Special|8,993.75|0.00|649.36|0.00|
|suppliers||||||
||Medicines Co., Ltd.|||||
|Advances to|China National|||||
|||5,541.40|0.00|8,608.07|0.00|
|suppliers|Medicines Co., Ltd.|||||
|Advances to|Sinopharm Holding|||||
|||3,884.87|0.00|11,581.25|0.00|
|suppliers|Suzhou Co., Ltd.|||||
||Yichang|||||
|Advances to||||||
||Humanwell|2,993.74|0.00|0.00|0.00|
|suppliers||||||
||Pharmaceutical|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||||
|-|-|-|-|-|-|
||Co., Ltd.|||||
||Sinopharm Group|||||
|Advances to||||||
||Guorui Medicine|957.26|0.00|957.26|0.00|
|suppliers||||||
||Co., Ltd.|||||
||China National|||||
|Advances to|Pharmaceutical|||||
|||947.81|0.00|0.00|0.00|
|suppliers|Foreign Trade Co.,|||||
||Ltd.|||||
|Advances to|Sinopharm Holding|||||
|||214.86|0.00|0.00|0.00|
|suppliers|Macheng Co., Ltd.|||||
||Guangdong Dong|||||
|Advances to|Fang Uptodate &|||||
|||46.55|0.00|0.00|0.00|
|suppliers|Special Medicines|||||
||Co., Ltd.|||||
||Sinopharm Group|||||
|Advances to||||||
||Chemical Reagent|0.00|0.00|27,307.69|0.00|
|suppliers||||||
||Co., Ltd.|||||
|Advances to|Sinopharm Holding|||||
|||0.00|0.00|1,480.70|0.00|
|suppliers|Hunan Co., Ltd.|||||
|Advances to|Sinopharm Holding|||||
|||0.00|0.00|4,386.00|0.00|
|suppliers|Fujian Co., Ltd.|||||
|Advances to|Sinopharm Holding|||||
|||0.00|0.00|379.92|0.00|
|suppliers|Guizhou Co., Ltd.|||||
||China National|||||
||Scientific|||||
|Advances to||||||
||Instruments &|0.00|0.00|1,806,138.00|0.00|
|suppliers||||||
||Materials Imp/Exp|||||
||Shenzhen CO., Ltd|||||
||Beijing Huasheng|||||
||Pharmaceutical|||||
|Advances to||||||
||Biotechnology|0.00|0.00|437.62|0.00|
|suppliers||||||
||Development Co.,|||||
||Ltd.|||||
||China National|||||
|Advances to||||||
||Pharmaceutical|0.00|0.00|10.50|0.00|
|suppliers||||||
||Industry Co., Ltd.|||||
||Qinghai|||||
|Advances to||||||
||Pharmaceutical|0.00|0.00|5,138,698.55|0.00|
|suppliers||||||
||(Group) Co., Ltd.|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 (2)Accounts payables to related parties
Unit:RMB
|||||
|-|-|-|-|
|Nature|Related parties|30 June 2015|31 December 2014|
||Sinopharm Holding Sub|||
|Accounts payable||150,387,205.95|168,855,238.90|
||Marketing Center Co., Ltd.|||
||China National Medicines|||
|Accounts payable||48,133,232.95|40,965,238.69|
||Co., Ltd.|||
|Accounts payable|Sinopharm Group|42,205,548.33|68,114,014.57|
||Sino-Swed Pharmaceutical|||
|Accounts payable||16,496,283.73|7,452,712.28|
||Corp.Ltd.|||
||Shenzhen Wanwei Medicine|||
|Accounts payable||10,050,520.04|12,058,843.67|
||trading Co., Ltd.|||
||Jiangsu Wanbang Pharmacy|||
|Accounts payable||7,637,070.79|5,511,809.11|
||Marketing Co., Ltd.|||
||Guang dong South|||
|Accounts payable|Pharmaceutical Foreign|6,826,776.18|7,999,963.51|
||Trade Co., Ltd.|||
||Chongqing Yaoyou|||
|Accounts payable||6,508,613.00|2,242,748.93|
||Pharmaceutical Co., Ltd.|||
||Lanzhou Institute of|||
|Accounts payable||3,440,560.00|3,360,000.00|
||Biological Products Co., Ltd.|||
||Foshan Nanhai Uptodate &|||
|Accounts payable||3,401,035.52|1,773,366.89|
||Special Medicines Co., Ltd.|||
||Winteam Pharmaceutical|||
|Accounts payable||2,119,154.16|2,782,751.64|
||Group Ltd.|||
||Sinopharm Group Medicine|||
|Accounts payable||810,654.51|708,527.88|
||Logistic Co., Ltd.|||
||Sinopharm Holding Beijing|||
|Accounts payable||710,666.35|388,738.14|
||Co., Ltd.|||
||Sinopharm Holding Beijing|||
|Accounts payable||587,884.15|310,189.92|
||Huahong Co., Ltd.|||
||Shanghai Shyndec|||
|Accounts payable||573,538.00|220,866.53|
||Pharmaceutical Co., Ltd.|||
||Sinopharm Holding Beijing|||
|Accounts payable|Tianxing Puxin Biological|457,929.43|0.00|
||Medical Co., Ltd.|||
||Sinopharm Group|||
|Accounts payable||422,264.41|78,975.41|
||Rongsheng Pharmaceutical|||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
||Co., Ltd.|||
||Chongqing Haisiman|||
|Accounts payable||401,573.21|1,462,551.60|
||Pharmaceutical Co., Ltd.|||
||Beijing Huasheng|||
||Pharmaceutical|||
|Accounts payable||388,297.01|637.01|
||Biotechnology Development|||
||Co., Ltd.|||
||Guizhou Tongjitang|||
|Accounts payable||325,537.57|282,671.52|
||Pharmaceutical Co., Ltd.|||
||China Otsuka|||
|Accounts payable||264,611.06|196,492.56|
||Pharmaceutical Co., Ltd.|||
||Handan Pharmaceutical Co.,|||
|Accounts payable||242,911.34|263,842.34|
||Ltd|||
||Sinopharm Group Zhonglian|||
|Accounts payable||235,048.83|176,769.70|
||Pharmaceutical Co. Ltd.|||
||Anhui Jingfang|||
|Accounts payable||144,572.13|31,541.61|
||Pharmaceutical Co., Ltd.|||
||Qinghai Pharmaceutical|||
|Accounts payable||138,453.45|0.00|
||(Group) Co., Ltd.|||
||Sinopharm Group Chemical|||
|Accounts payable||135,240.19|443,678.43|
||Reagent Co., Ltd.|||
||Sinopharm Holding Hunan|||
|Accounts payable||123,520.50|249.04|
||Co., Ltd.|||
||Yichang Humanwell|||
|Accounts payable||110,894.07|15,820.01|
||Pharmaceutical Co., Ltd.|||
||Guilin South pharmaceutical|||
|Accounts payable||103,018.41|96,499.78|
||Co., Ltd.|||
||Sinopharm Holding Luoyang|||
|Accounts payable||97,094.01|0.00|
||Co., Ltd.|||
||Guangdong Dong Fang|||
|Accounts payable|Uptodate & Special|93,221.91|661,951.36|
||Medicines Co., Ltd.|||
||Shenyang Hongqi|||
|Accounts payable||86,550.67|97,796.06|
||Pharmaceutical Co., Ltd.|||
||Suzhou Erye Pharmaceutical|||
|Accounts payable||72,650.00|92,623.93|
||Limited Company|||
||Foshan Nanhai Medicine|||
|Accounts payable||66,378.81|62,758.66|
||Co., Ltd.|||
|Accounts payable|Sinopharm Guoda Drug|62,589.80|23,757.18|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
||Store(Shenzhen) Chain Co.,|||
||Ltd.|||
||Hunan Dongting|||
|Accounts payable||61,301.52|47,614.27|
||Pharmaceutical Co., Ltd.|||
||Sinopharm Xingsha|||
|Accounts payable|Pharmaceuticals (Xiamen)|60,622.82|39,113.92|
||Co., Ltd.|||
||Foshan Dezhong|||
|Accounts payable||60,002.93|60,002.93|
||Pharmaceutical Co., Ltd.|||
||Shandong Lu Ya|||
|Accounts payable||53,469.45|53,469.45|
||Pharmaceutical Co., Ltd.|||
||Sinopharm Holding Hubei|||
|Accounts payable||46,014.36|35,238,692.18|
||Co., Ltd.|||
||Shanghai Institute of|||
|Accounts payable|biomedical Pharmaceutical|43,012.23|0.85|
||Co. Ltd|||
||Foshan Fengliaoxing|||
|Accounts payable||40,514.97|437,829.45|
||Pharmaceutical Co., Ltd.|||
||Sichuan Hexin|||
|Accounts payable||32,659.20|0.00|
||Pharmaceutical Co., Ltd.|||
||Guangdong Medi-World|||
|Accounts payable||30,114.22|30,541.40|
||Pharmacertical Co., Ltd.|||
||Guizhou Longlife|||
|Accounts payable||26,922.69|26,948.33|
||Pharmacertical Co., Ltd.|||
||Sinopharm Holding Sanyi|||
|Accounts payable||21,261.25|22,356.76|
||Medicine(Wuhu) Co., Ltd.|||
||Shanghai Modern Hasen|||
|Accounts payable|(Shangqiu) Pharmacertical|20,881.84|29,802.78|
||Co., Ltd.|||
||Changchun Changsheng|||
|Accounts payable|Gene Pharmaceutical Co.,|17,914.80|17,914.80|
||Ltd.|||
||Sinopharm Group Chemical|||
|Accounts payable||17,583.33|58,032.78|
||Reagent Suzhou Co., Ltd.|||
||Sinopharm Group Shanghai|||
|Accounts payable||16,603.02|16,603.02|
||Medicine Device Co., Ltd.|||
||Sinopharm Holding|||
|Accounts payable||16,197.93|16,197.93|
||Liaocheng Co., Ltd.|||
|Accounts payable|Sinopharm Holding Dalian|11,282.05|0.00|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
||Co., Ltd.|||
||Sinopharm Group Beijing|||
|Accounts payable||8,827.77|8,827.77|
||Medical equipment Co., Ltd.|||
||Sinopharm Holding Jiangsu|||
|Accounts payable||8,386.03|27,794.23|
||Co., Ltd.|||
||Sinopharm Group Weiqida|||
|Accounts payable||8,150.45|201.73|
||Medicine Co., Ltd.|||
||Shanghai Chaohui|||
|Accounts payable||7,494.85|7,494.85|
||Pharmecurical Co., Ltd.|||
||Sinopharm Holding Shan`xi|||
|Accounts payable||6,119.55|0.00|
||Co., Ltd.|||
||China National Scientific|||
|Accounts payable|Instruments & Materials|5,849.56|0.00|
||Imp/Exp Shenzhen CO., Ltd|||
||Shenzhen Wanle Medical|||
|Accounts payable||4,444.06|4,290.22|
||Co., Ltd.|||
||Sinopharm Holding Dezhou|||
|Accounts payable||4,333.65|4,333.65|
||Co., Ltd.|||
||Foshan Fengliaoxing|||
|Accounts payable||3,914.41|3,914.41|
||Pharmaceutical Co., Ltd.|||
||Shanghai Sailun Biological|||
|Accounts payable||2,941.10|2,941.10|
||Technology Co., Ltd.|||
||Jiangsu Huanghe|||
|Accounts payable||2,789.73|2,789.73|
||Pharmaceutical Co., Ltd|||
||Sinopharm Holding Huaideju|||
|Accounts payable|Pharmaceutical (Xiamen)|1,113.85|1,113.85|
||Co., Ltd.|||
||Chengdu Rongsheng|||
|Accounts payable||794.87|794.87|
||Pharmacy Co., Ltd.|||
||The Fourth Pharmaceutical|||
|Accounts payable||752.14|752.14|
||Co., Ltd. of Zhonglian Group|||
||Sinopharm Holding Guoda|||
|Accounts payable|Fumei Pharmaceutical|189.71|189.71|
||(Shanghai) Co., Ltd.|||
||Sinopharm Holding Fujian|||
|Accounts payable||51.00|0.00|
||Co., Ltd.|||
||Sinopharm Holding Guizhou|||
|Accounts payable||41.02|41.02|
||Co., Ltd.|||
|Accounts payable|Sinopharm Holding Sanming|12.82|12.82|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
||Co., Ltd.|||
||Sinopharm Group Southwest|||
|Accounts payable||0.00|222,265.56|
||Medicine Co., Ltd.|||
||Sinopharm Holding Inner|||
|Accounts payable||0.00|78,106.98|
||Mongolia Co., Ltd.|||
||China National|||
|Accounts payable|Pharmaceutical Foreign|0.00|367,884.12|
||Trade Co., Ltd.|||
||China State Institute of|||
|Other payables||8,590,000.00|150,000.00|
||Pharmaceutical Industry|||
|Other payables|Sinopharm Group|4,530,696.87|4,330,696.87|
||Sinopharm Chongqing|||
|Other payables|Pharmaceutical and Medical|4,030,000.00|1,730,000.00|
||Industry Design Institute|||
||Sinopharm Group Medicine|||
|Other payables||2,900,553.36|14,148.79|
||Logistic Co., Ltd.|||
||Sinopharm Holding Shanghai|||
|Other payables||1,660,431.38|1,660,431.38|
||Co., Ltd.|||
||China Traditional Chinese|||
|Other payables||1,300,000.00|1,300,000.00|
||Medicine Co.|||
||Sinopharm Group Chemical|||
|Other payables||240,944.50|220,000.00|
||Reagent Co., Ltd.|||
||Sinopharm Guoda Drug|||
|Other payables|Store(Shenzhen) Chain Co.,|72,000.00|0.00|
||Ltd.|||
||Sinopharm Guoda Drug|||
|Other payables|Store Guangxi Chain Co.,|55,300.00|0.00|
||Ltd.|||
||Sinopharm Holding Guoda|||
|Other payables|Drug Store Guangzhou|46,000.00|0.00|
||Chain Co., Ltd.|||
||Sinopharm Group|||
|Other payables|Guangdong Medicine Device|44,000.00|44,000.00|
||Co., Ltd.|||
||Sinopharm Holding Hainan|||
|Other payables||20,000.00|20,000.00|
||Hongyi Co., Ltd.|||
||Sinopharm Holding Shanxi|||
|Other payables||15,000.00|15,000.00|
||Co., Ltd.|||
|Other payables|Sinopharm Holding Tianjin|10,000.00|10,000.00|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
||Co., Ltd.|||
||Sinopharm Group (Tianjin)|||
|Other payables|Eastern Bokang|10,000.00|10,000.00|
||Pharmaceutical Co., Ltd.|||
||Sinopharm Group Southwest|||
|Other payables||5,000.00|5,000.00|
||Medicine Co., Ltd.|||
||Sinopharm Holding Hubei|||
|Other payables||5,000.00|5,000.00|
||Co., Ltd.|||
||Sinopharm Holding Sub|||
|Other payables||5,000.00|5,000.00|
||Marketing Center Co., Ltd.|||
||Sinopharm Holding|||
|Other payables|(Yangzhou) Chinese Western|5,000.00|5,000.00|
||Medicine Branch Co., Ltd.|||
||Sinopharm Holding Wuxi|||
|Other payables||5,000.00|5,000.00|
||Co., Ltd.|||
||Sinopharm Le -Ren-Tang|||
|Other payables||5,000.00|5,000.00|
||Medicine Co., Ltd.|||
|Other payables|CNPGC|0.00|900,000.00|
|Notes payable|Sinopharm Group|50,760,344.94|72,843,584.86|
||Sinopharm Group Chemical|||
|Notes payable||25,465.00|45,110.30|
||Reagent Suzhou Co., Ltd.|||
||Sinopharm Holding Beijing|||
|Notes payable||0.00|212,400.00|
||Co., Ltd.|||
||China National Medicines|||
|Notes payable||10,939,643.27|10,591,195.40|
||Co., Ltd.|||
||Sinopharm Holding Sub|||
|Notes payable||161,338,460.37|140,809,327.41|
||Marketing Center Co., Ltd.|||
||Chongqing Yaoyou|||
|Notes payable||2,474,852.99|918,825.60|
||Pharmaceutical Co., Ltd.|||
||Shenyang Hongqi|||
|Notes payable||149,450.00|0.00|
||Pharmaceutical Co., Ltd.|||
||Jiangsu Wanbang Pharmacy|||
|Notes payable||1,000,209.72|2,013,158.00|
||Marketing Co., Ltd.|||
||Chongqing Haisiman|||
|Notes payable||1,628,968.60|2,071,879.20|
||Pharmaceutical Co., Ltd.|||
||Guizhou Tongjitang|||
|Notes payable||1,224,804.50|1,228,680.00|
||Pharmaceutical Co., Ltd.|||
|Notes payable|Anhui Jingfang|283,256.00|477,198.00|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
||Pharmaceutical Co., Ltd.|||
||Winteam Pharmaceutical|||
|Notes payable||318,943.43|0.00|
||Group Ltd.|||
||Lanzhou Institute of|||
|Notes payable||794,447.76|600,000.00|
||Biological Products Co., Ltd.|||
||Shanghai Shyndec|||
|Notes payable||0.00|223,384.80|
||Pharmaceutical Co., Ltd.|||
||Sinopharm Group|||
|Notes payable|Rongsheng Pharmaceutical|85,625.00|308,385.00|
||Co., Ltd.|||
||Shenzhen Wanwei Medicine|||
|Notes payable||1,357,430.50|1,291,900.00|
||trading Co., Ltd.|||
||Sinopharm Guoda Drug|||
|Advances from customers|Store Guangxi Chain Co.,|94,692.36|94,692.36|
||Ltd.|||
||Guang dong South|||
|Advances from customers|Pharmaceutical Foreign|43,920.00|292,192.94|
||Trade Co., Ltd.|||
||Sinopharm Holding Gansu|||
|Advances from customers||11,003.00|11,003.00|
||Co., Ltd.|||
||Sinopharm Holding Xuzhou|||
|Advances from customers||5,744.00|11,530.00|
||Co., Ltd.|||
||Sinopharm Holding Suzhou|||
|Advances from customers|Kangmin Pharmaceutical Co.|5,635.00|0.00|
||Ltd.|||
||Sinopharm Group Southwest|||
|Advances from customers||2,456.00|0.00|
||Medicine Co., Ltd.|||
||Sinopharm Holding Chengdu|||
|Advances from customers||1,450.09|1,802.98|
||Pharmaceutical Co., Ltd.|||
||Sinopharm Holding|||
|Advances from customers||755.62|755.62|
||Chongqing Co., Ltd.|||
||Sinopharm Holding Zhejiang|||
|Advances from customers||505.00|505.00|
||Biological Product Co., Ltd.|||
||Sinopharm Lerentang|||
|Advances from customers||291.52|0.00|
||Tangshan Medicine Co., Ltd.|||
||Chongqing Yaoyou|||
|Advances from customers||203.47|0.00|
||Pharmaceutical Co., Ltd.|||
||Sinopharm Sichuan|||
|Advances from customers||100.00|100.00|
||Pharmaceutical Co., Ltd.|||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
||Sinopharm Holding Jingmen|||
|Advances from customers||1.00|1.00|
||Co., Ltd.|||
||Sinopharm Le -Ren-Tang|||
|Advances from customers||0.00|329,098.00|
||Medicine Co., Ltd.|||
||Guangdong Dong Fang|||
|Advances from customers|Uptodate & Special|0.00|187,200.00|
||Medicines Co., Ltd.|||
||Sinopharm Holding|||
|Advances from customers||0.00|133,290.00|
||Yangzhou Co., Ltd.|||
||Sinopharm Holding Guoda|||
|Advances from customers||0.00|129,200.00|
||Pharmacy Co., Ltd.|||
||Sinopharm Holding Beijing|||
|Advances from customers||0.00|91,800.00|
||Co., Ltd.|||
||Hetian Region Ankang Chain|||
|Advances from customers||0.00|63,128.00|
||Drugstore Co., Ltd.|||
||Sinopharm Holding Longyan|||
|Advances from customers||0.00|59,508.00|
||Co., Ltd.|||
||Sinopharm Holding Anhui|||
|Advances from customers||0.00|44,302.05|
||Co., Ltd.|||
||Sinopharm Holding Shanxi|||
|Advances from customers||0.00|38,340.00|
||Co., Ltd.|||
||Sinopharm Holding Wenzhou|||
|Advances from customers||0.00|33,999.60|
||Co., Ltd.|||
||Sinopharm Holding Suzhou|||
|Advances from customers||0.00|32,220.00|
||Co., Ltd.|||
||Sinopharm Holding ChiFeng|||
|Advances from customers||0.00|30,384.00|
||Co., Ltd.|||
||Sinopharm Holding Sub|||
|Advances from customers||0.00|24,741.60|
||Marketing Center Co., Ltd.|||
||Sinopharm Holding Jilin Co.,|||
|Advances from customers||0.00|16,496.52|
||Ltd.|||
||Sinopharm Holding|||
|Advances from customers||0.00|16,320.00|
||Shandong Co., Ltd.|||
||Sinopharm Group Shanghai|||
|Advances from customers|Likang Pharmaceutical Co.|0.00|12,620.00|
||Ltd.|||
||Sinopharm Holding Zhejiang|||
|Advances from customers||0.00|11,652.00|
||Co., Ltd.|||
|Advances from customers|Sinopharm Holding Tianjin|0.00|8,600.00|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
|||||
|-|-|-|-|
||Co., Ltd.|||
||Sinopharm Holding Jiangsu|||
|Advances from customers||0.00|4,833.00|
||Co., Ltd.|||
||Sinopharm Holding|||
|Advances from customers||0.00|1,872.00|
||Heilongjiang Co., Ltd.|||
||Sinopharm Holding Hebei|||
|Advances from customers||0.00|3.48|
||Medical Co., Ltd.|||
|Interests payable|CNPGC|60,291.18|52,140.00|
|Interests payable|Group Financial Co.|56,155.04|0.00|

 7. Commitment with related parties
Undertaking contracted for at the balance sheet date but not recognised in balance sheet are anaylsed as follows:
As a leasee
Unit:RMB’0,000
||||
|-|-|-|
||30 June 2015|31 December 2014|
|Shaoguan Wujiang District Muyang Medicine|||
||766.17|640.52|
|Information Consultant Co., Ltd.|||
|Sinopharm Group Medicine Logistic Co., Ltd.|729.00|0.00|
|Wang Yang|248.40|0.00|
|Foshan Nanhai Medicine Group Co., Ltd.|18.24|3.70|
|Total|1,761.81|644.22|

 As a leaser
Unit:RMB’0,000
||||
|-|-|-|
||30 June 2015|31 December 2014|
|Sinopharm Guoda Drug Store Guangxi Chain|||
||150.99|275.25|
|Co., Ltd.|||
|Sinopharm Guoda Drug Store(Shenzhen)|||
||107.94|10.25|
|Chain Co., Ltd.|||
|Sinopharm Holding Guoda Drug Store|||
||41.17|54.03|
|Guangzhou Chain Co., Ltd.|||
|Sinopharm Group Guangdong Medicine|||
||14.19|28.38|
|Device Co., Ltd.|||
|Total|314.29|367.91|

Guarantee (Unused quotas)
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 Unit:RMB’0,000
||||
|-|-|-|
||30 June 2015|31 December 2014|
|Sinopharm Group|7,697.05|10,024.25|
|Total|7,697.05|10,024.25|

 XI. Commitments and Contingencies
1. Commitments
(1) Capital commitments
Capital expenditures contracted for at the balance sheet date but not recognised in balance sheet are analysed as follows: Unit:RMB’0,000
||||
|-|-|-|
||30 June 2015|31 December 2014|
|Buildings, machinery and equipment|2,660.67|14,228.32|
|Total|2,660.67|14,228.32|

 (2) Operating lease commitments
The future minimum lease payments due under the signed irrevocable operating leases contracts are summarised as follows:
Unit:RMB’0,000
||||
|-|-|-|
||30 June 2015|31 December 2014|
|Within one year|3,585.99|2,446.33|
|Between 1 and 2 years|2,682.19|2,407.97|
|Between 2 and 3 years|2,489.98|2,364.04|
|Over 3 years|13,233.29|16,372.28|
|Total|21,991.45|23,590.62|

 XII. Notes to the main items of financial statement of the Company
1. Accounts receivable
(1)The accounts receivable and related provision for bad debts by category are analysed below: Unit:RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|30 June 2015|||||31 December 2014|||||
|||Bad debt||||||||
|Carrying amount|||||Carrying amount||Bad debt provision|||
|||provision||Book||||||
||||||||||Book value|
||% of|||value|amoun|% of||||
|amount||amount|rate||||amount|rate||
||total||||t|total||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||balance|||||balance||||
|individually|||||||||||
|significant are|||||||||||
|subject to separate|0.00|0.00%|0.00|0.00%|0.00|0.00|0.00%|0.00|0.00%|0.00|
|impairment|||||||||||
|assessment|||||||||||
|receivable||||0.00%|||||||
|||||||513,79|||||
|accounts within|561,068,|100.00|||561,068,||100.00|||513,791,982.|
||||0.00|||1,982.||0.00|0.00%||
|similar credit risk|339.16|%|||339.16||%|||48|
|||||||48|||||
|group|||||||||||
|individually not|||||||||||
|significant but|||||||||||
|individually|0.00|0.00%|0.00|0.00%|0.00|0.00|0.00%|0.00|0.00%|0.00|
|evaluated for|||||||||||
|impairment|||||||||||
|||||0.00%|561,068,339.16|513,79||||513,791,982.48|
||561,068,|100.00|||||100.00||||
|Total|||0.00|||1,982.||0.00|0.00%||
||339.16|%|||||%||||
|||||||48|||||

The aging of accounts receivable and related provision for bad debts are analysed below:
Unit:RMB
|||||
|-|-|-|-|
||30 June 2015|||
|Aging||||
||Accounts receivable|Provision for bad debts|rate|
|Within 1 year|561,068,339.16|0.00|0.00%|
|Total|561,068,339.16|0.00|0.00%|

 (2)The top five accounts receivable by customer are summariesd as below:
|||||
|-|-|-|-|
||Amount|Bad debt provision amount|% of the total accountsreceivable|
|Total amount of the top fiveaccounts receivables|149,192,318.92|0.00|26.59%|

2. Other receivables
(1)Other receivables and related provision for bad debts by category are analysed below: Unit:RMB
||||||||
|-|-|-|-|-|-|-|
||30 June 2015|||31 December 2014|||
|Classification|||||||
||Carrying amount|Bad debt|Book|Carrying amount|Bad debt provision|Book value|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||provision||value||||||
|||% of||rate|||% of||||
||amount|total|amount|||amount|total|amount|rate||
|||amount|||||amount||||
|Individually|8,980,000.00|||100.00%|||||||
|significant are|||||||||||
||||8,980,00|||8,980,0||8,980,00|||
|subject to separate||0.66%|||0.00||0.80%||100.00%|0.00|
||||0.00|||00.00||0.00|||
|impairment|||||||||||
|assessment|||||||||||
|Receivable|1,349,020,824.40||||||||||
||||||1,348,9|1,111,4|||||
|accounts within|||41,054.9|||||41,461.3||1,111,423,80|
|||99.25%||0.00%|79,769.|65,271.|99.10%||0.00%||
|similar credit risk|||0|||||0||9.76|
||||||50|06|||||
|group|||||||||||
|Individually not|1,157,860.00|||100.00%|||||||
|significant but|||||||||||
||||1,157,86|||1,157,8||1,157,86|||
|individually||0.09%|||0.00||0.10%||100.00%|0.00|
||||0.00|||60.00||0.00|||
|evaluated for|||||||||||
|impairment|||||||||||
|||||0.75%|1,348,979,769.50|1,121,6||||1,111,423,809.76|
||1,359,15|100.00|10,178,9||||100.00|10,179,3|||
|Total||||||03,131.|||0.91%||
||8,684.40|%|14.90||||%|21.30|||
|||||||06|||||

As at 30 June 2015, impairment provision for other receivables individually significant are analysed as below:
Unit:RMB
||||||
|-|-|-|-|-|
||30 June 2015||||
|Other receivables(by|||||
|||||Assessment for|
|company)|Amount|Bad debt provision|Rate||
|||||impairment|
|Shenzhen Yinghai|||||
|||||Uncertainty in|
|Technology Investment|8,980,000.00|8,980,000.00|100.00%||
|||||recoverability|
|Co., Ltd.|||||
|Total|8,980,000.00|8,980,000.00|--|--|

Provisions for impairment of the receivables which have a similar risk group are analysed below:
Unit:RMB
|||||
|-|-|-|-|
||30 June 2015|||
|Aging||||
||Amount|Bad debt provision|Rate|
|Within 1 year|1,348,199,726.44|0.00|0.00%|
|1 to 2 years|821,097.96|41,054.90|5.00%|
|Total|1,349,020,824.40|41,054.90|0.00%|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 (2)Other receivables by nature are analysed below
Unit:RMB
||||
|-|-|-|
|Nature|30 June 2015|31 December 2014|
|Amounts due from related parties|1,344,841,150.15|1,107,496,851.78|
|Petty cash advance to employees|2,329,088.34|1,050,529.32|
|Deposit|1,372,469.72|2,370,709.80|
|Purchasing rebates|414,367.80|0.00|
|Others|10,201,608.39|10,685,040.16|
|Total|1,359,158,684.40|1,121,603,131.06|

 (3)As at 30 June of2015，the top 5 parties that owe the largest amounts of other receivable balances are analysd as below:
Unit:RMB
|||||||
|-|-|-|-|-|-|
|Company name|Nature|Balance|Aging|% of total amount|Provision of bad debt|
||Entrusted|||||
|Sinopharm Yuexing||209,700,000.00|Within 1 year|15.43%|0.00|
||borrowings|||||
||Entrusted|||||
|Suzhou Zhijun||177,949,000.00|Within 1 year|13.09%|0.00|
||borrowings|||||
|Sinopharm|Entrusted|||||
|||130,000,000.00|Within 1 year|9.56%|0.00|
|Guangzhou|borrowings|||||
|Sinopharm|Entrusted|||||
|||118,000,000.00|Within 1 year|8.68%|0.00|
|Zhanjiang|borrowings|||||
||Entrusted|||||
|Guangxi Logistics||81,840,000.00|Within 1 year|6.02%|0.00|
||borrowings|||||
|Total|--|717,489,000.00|--|52.78%|0.00|

 3. Long-term equity investments
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
||30 June 2015|||31 December 2014|||
|||Provision for|||Provision for||
||Carrying Amount||Book Value|Carrying Amount||Book Value|
|||impairment|||impairment||
|Investments|||||||
|in|2,735,399,494.38|121,000,000.00|2,614,399,494.38|2,735,399,494.38|121,000,000.00|2,614,399,494.38|
|subsidiaries|||||||
|Investments|||||||
||151,691,888.29|0.00|151,691,888.29|157,604,846.85|0.00|157,604,846.85|
|in associates|||||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||||
|-|-|-|-|-|-|-|
|Total|2,887,091,382.67|121,000,000.00|2,766,091,382.67|2,893,004,341.23|121,000,000.00|2,772,004,341.23|

 (1)Investments in subsidiaries
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
||Original|Increases in|Decreases in||Provision for||
|Investees||||30 June 2015||Impairment|
||investment cost|investment cost|investment cost||impairment||
|Zhijun Medicine|204,903,284.87|0.00|0.00|204,903,284.87|0.00|0.00|
|Sinopharm|||||||
||60,054,911.04|0.00|0.00|60,054,911.04|0.00|0.00|
|Jianming|||||||
|Sinopharm|||||||
|Shenzhen|15,450,875.93|0.00|0.00|15,450,875.93|0.00|0.00|
|Material|||||||
|Shenzhen|||||||
||5,019,062.68|0.00|0.00|5,019,062.68|0.00|0.00|
|Logistics|||||||
|Sinopharm|||||||
||1,035,440,323.63|0.00|0.00|1,035,440,323.63|0.00|0.00|
|Guangzhou|||||||
|Zhijun Medicine|11,116,866.42|0.00|0.00|11,116,866.42|0.00|0.00|
|Sinopharm|||||||
||45,763,288.00|0.00|0.00|45,763,288.00|0.00|0.00|
|Hengxing|||||||
|Sinopharm|||||||
||21,407,965.79|0.00|0.00|21,407,965.79|0.00|0.00|
|Liuzhou|||||||
|Sinopharm|||||||
||17,942,000.00|0.00|0.00|17,942,000.00|0.00|0.00|
|Dongguan|||||||
|Huixin|||||||
||64,416,937.72|0.00|0.00|64,416,937.72|0.00|0.00|
|Investment|||||||
|Guangdong|||||||
||10,596,006.21|0.00|0.00|10,596,006.21|0.00|0.00|
|Logistics|||||||
|Sinopharm|||||||
||113,459,326.27|0.00|0.00|113,459,326.27|0.00|0.00|
|Yuexing|||||||
|Sinopharm|||||||
||19,995,065.51|0.00|0.00|19,995,065.51|0.00|0.00|
|Foshan|||||||
|Suzhou Zhijun|265,900,000.00|0.00|0.00|265,900,000.00|0.00|121,000,000.00|
|Sinopharm|||||||
||504,048,985.28|0.00|0.00|504,048,985.28|0.00|0.00|
|Guangxi|||||||
|Sinopharm|||||||
||70,769,864.65|0.00|0.00|70,769,864.65|0.00|0.00|
|Zhanjiang|||||||
|Sinopharm|38,207,800.00|0.00|0.00|38,207,800.00|0.00|0.00|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||||
|-|-|-|-|-|-|-|
|Yanfeng|||||||
|Sinopharm|||||||
||21,281,900.00|0.00|0.00|21,281,900.00|0.00|0.00|
|Meizhou|||||||
|Zhijun(Shenzhen|||||||
||37,850,830.38|0.00|0.00|37,850,830.38|0.00|0.00|
|)Pingshan|||||||
|Sinopharm|||||||
||16,644,200.00|0.00|0.00|16,644,200.00|0.00|0.00|
|Huizhou|||||||
|Sinopharm|||||||
||18,060,000.00|0.00|0.00|18,060,000.00|0.00|0.00|
|Zhaoqing|||||||
|Sinopharm|||||||
||106,000,000.00|0.00|0.00|106,000,000.00|0.00|0.00|
|Jiangmen|||||||
|Sinopharm|||||||
||10,000,000.00|0.00|0.00|10,000,000.00|0.00|0.00|
|Zhongshan|||||||
|Sinopharm|||||||
||13,580,000.00|0.00|0.00|13,580,000.00|0.00|0.00|
|Shaoguan|||||||
|Sinopharm|||||||
||7,490,000.00|0.00|0.00|7,490,000.00|0.00|0.00|
|Shantou|||||||
|Total|2,735,399,494.38|0.00|0.00|2,735,399,494.38|0.00|121,000,000.00|

 (2)Investments in associates
Unit:RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Movement||||||
||||||||Provision|
||31 December|Additionalinvestment|||Provision|||
||||Share of|Dividend||30 Jnue 2015|ending|
||2014||||of|||
||||profit or loss|declared|||balance|
||||||impairment|||
|Associates||||||||
|Wanle Medical|157,604,846.85|0.00|28,160,061.44|35,190,000.00|0.00|150,574,908.29|0.00|
|Sinopharm Zhuhai|0.00|1,002,980.00|114,000.00|0.00|0.00|1,116,980.00|0.00|
|subtotal|157,604,846.85|1,002,980.00|28,274,061.44|35,190,000.00|0.00|151,691,888.29|0.00|
|Total|157,604,846.85|1,002,980.00|28,274,061.44|35,190,000.00|0.00|151,691,888.29|0.00|

 4. Sales and cost of sales
Unit:RMB
||||||
|-|-|-|-|-|
||For the six months ended 30 June 2015||For the six months ended 30 June 2014||
||Revenue|Cost|Revenue|Cost|
|Revenue of main|1,404,606,954.44|1,349,606,896.49|1,339,376,773.85|1,289,133,611.14|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015
||||||
|-|-|-|-|-|
|operations|||||
|Other operating income|5,308,781.06|489,205.40|5,156,613.11|1,778,763.16|
|Total|1,409,915,735.50|1,350,096,101.89|1,344,533,386.96|1,290,912,374.30|

 5. Investment income
Unit:RMB
||||
|-|-|-|
||For the six months ended 30 June 2015|For the six months ended 30 June 2014|
|Gain on long-term equity investment|||
||514,513,119.54|456,948,364.73|
|under cost method|||
|Gain on long-term equity investment|||
||28,274,061.44|23,595,722.50|
|under equity method|||
|Total|542,787,180.98|480,544,087.23|

 XIII.Supplementary information
1. Non-routine items
Unit:RMB
||||
|-|-|-|
||amount|Notes|
|||Mainly was compensation for demolition|
|Gains on disposal of non-current assets|4,114,941.12|from disposal the investment real estate|
|||by Sinopharm Holding Liuzhou.|
|||Mainly contained various of special|
|Government grants related to income|10,567,256.16||
|||subsidies and financial discount.|
|Receivables impairment reversal by|||
||2,568,108.32||
|individual assessment|||
|||Mainly comes from hosting service for|
|Entrusted management custody fee|||
||375,000.00|Sinopharm Group and China National|
|income|||
|||Pharmaceutical Foreign Trade Co., Ltd.|
|||Mainly was relocation rewards and|
|||closed resettlement compensation for|
|Other non-operating income|2,189,460.15||
|||demolition of Sinopharm Holding|
|||Liuzhou.|
|Less:Tax impact of above non-routine|||
||4,051,085.07||
|items|||
|Share of minority interests of above|||
||2,103,582.14||
|non-routine items after tax|||
|Total|13,660,098.54|--|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2015 2. Return on equity and earnings per share
|||||
|-|-|-|-|
|||Earnings per share||
|Profit during the reporting period|Weighted average return on equity (%)|Basic earnings per|Diluted earnings per|
|||share|share|
|Consolidated net profit||1.068|1.068|
|attributable to the shareholders|7.85%|||
|of the Company||||
|Consolidated net profit||||
|attributable to the shareholders||||
||7.58%|1.030|1.030|
|of the Company, excluding||||
|non-routine items||||