China National Accord Medicines Corporation Ltd.
SEMI-ANNUAL REPORT 2016
August 2016
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of China National Accord Medicines Corporation Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents.
All directors are attended the Board Meeting for report deliberation.
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either.
Lin Zhaoxiong, principal of the Company, Wei Pingxiao, person in charger of accounting works and Wang Ying, person in charge of accounting organ (accounting principal) hereby confirm that the Financial Report of the Semi- Annual Report 2016 is authentic, accurate and complete
Content
Semi-Annual Report 2016 ................................................................................................................. 2 Section I Important Notice, Contents and Paraphrase .................................................................. 5 Section II Company Profile ............................................................................................................... 7 Section III Accounting data and summary of finnaical indexes .................................................... 9 Section IV Report of the Board of Directors ................................................................................. 20 Section V Important Events ............................................................................................................ 38 Section VI Changes in shares and particular about shareholders ............................................... 42 Section VII Preferred Stock ............................................................................................................ 42 Section VIII Directors, Supervisors and Senior Executives ....................................................... 43 Section IX Financial Report ............................................................................................................ 44 Section X Documents Available for Reference ........................................................................... 186
Paraphrase
||||
|-|-|-|
|Items|Refers to|Definition|
|The Listed Company, Company, the Company,|||
||Refers to|China National Accord Medicines Corporation Ltd.|
|China National Accord, the Group|||
|Sinopharm Holding|Refers to|Sinopharm Group Co., Ltd., the controlling shareholder of the Company|
|“Twelfth Five-Year”|Refers to|Year of 2011 to 2015|
|Company Law|Refers to|Company Law of the People’s Republic of China|
|Securities Law|Refers to|Securities Law of the People’s Republic of China|
|Yuan, 10 thousand Yuan, 100 million Yuan|Refers to|RMB, RMB 10 thousand, RMB 100 million|
|Terminology:|Refers to||
|Direct selling|Refers to|A sales method that the drug directly sold to the hospital|
|GMP certification|Refers to|Good Manufacture Practice of Drugs certification|
|GSP certification|Refers to|Good Supplying Practice certification|
|||That is CMS, and information system processing workflow &|
|Supply Chain Management|Refers to||
|||procurement, inventory & sales documents|
|Company profile|Refers to||
|Sinopharm|Refers to|China National Pharmaceutical Group Corporation|
|Sinopharm (CNCM LTD)|Refers to|China National Medicines Corporation Ltd.|
|Sinopharm Holding Guangzhou|Refers to|Sinopharm Holding Guangzhou Co., Ltd.|
|Sinopharm Holding Guangxi|Refers to|Sinopharm Holding Guangxi Co., Ltd.|
|Sinopharm Holding Liuzhou|Refers to|Sinopharm Holding Liuzhou Co., Ltd.|
|China National Zhijun Shenzhen|Refers to|China National Zhijun (Shenzhen) Pharmaceutical Co., Ltd.|
|China National Zhijun Suzhou|Refers to|China National Zhijun (Suzhou) Pharmaceutical Co., Ltd.|
|Zhijun Medicine Trading|Refers to|Shenzhen Zhijun Medicine Trading Co., Ltd.|
|China National Zhijun Shenzhen Pingshan|Refers to|China National Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd.|
|Main Luck Pharmaceuticals|Refers to|Shenzhen Main Luck Pharmaceuticals Inc.|

Section II. Company profile
I. Company Profile
|||||
|-|-|-|-|
|Short form for share|Sinopharm Accord, Accord B|Code for share|000028, 200028|
|Listing stock exchange|Shenzhen Stock Exchange|||
|Chinese name of the Company|国药集团一致药业股份有限公司|||
|Abbr. of Chinese name of the||||
||国药一致|||
|Company(if applicable)||||
|English name of the||||
||China National Accord Medicines Corporation Ltd.|||
|Company(if applicable)||||
|Abbr. of English name of the||||
||Sinopharm Accord|||
|Company(if applicable)||||
|Legal Representative|Lin Zhaoxiong|||

II. Contact person and ways
|||
|-|-|
||Secretary of the Board|
|Name|Chen Changbing|
|Contact adds.|Accord Pharm. Bldg., No. 15, Ba Gua Si Road, Futian District, Shenzhen Guangdong|
|Tel.|+(86)755 25875195|
|Fax.|+(86)755 25195435|
|E-mail|0028@szaccord.com.cn; gyyz0028@sinopharm.com|

III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or not
□ Applicable√ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period, found more details in Annual Report 2015.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable√ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation place for semi-annual report have no change in reporting period, found more details in Annual Report 2015.
3. Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable√ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license, number of taxation registration and organization code have no change in reporting period, found more details in Annual Report 2015.
Section III. Accounting data and summary of financial indexes I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not
□Yes√ No
|||||
|-|-|-|-|
||||Increase/decrease in this|
||Current period|Same period of last year||
||||report y-o-y|
|Operating revenue (RMB)|14,089,052,871.88|12,813,803,166.77|9.95%|
|Net profit attributable to shareholders of|542,122,083.86|387,319,252.33||
||||39.97%|
|the listed company(RMB)||||
|Net profit attributable to shareholders of||||
|the listed company after deducting non-|404,509,408.41|373,659,153.79|8.26%|
|recurring gains and losses(RMB)||||
|Net cash flow arising from operating|492,634,062.23|448,239,578.73||
||||9.90%|
|activities(RMB)||||
|Basic earnings per share (RMB/Share)|1.495|1.068|39.98%|
|Diluted earnings per share (RMB/Share)|1.495|1.068|39.98%|
|Weighted average ROE|9.53%|7.85%|1.68%|
||||Increase/decrease in this|
||End of current period|End of last period|report-end over that of last|
||||period-end|
|Total assets (RMB)|14,485,586,577.06|13,218,349,735.31|9.59%|
|Net assets attributable to shareholder of|5,886,726,195.51|5,453,393,694.55||
||||7.95%|
|listed company(RMB)||||

II. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable√ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable√ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
III. Items and amounts of extraordinary profit (gains)/loss
√ Applicable□ Not applicable In RMB
||||
|-|-|-|
|Item|Amount|Note|
||8,792,371.94|The income from assets disposalreceived by subsidiary GuangxiLogistics|
|Gains/losses from the disposal of non-current asset (including the|||
|write-off that accrued for impairment of assets)|||
|Governmental subsidy calculated into current gains and|7,581,599.85|Vary special subsidies and financediscount received in the Period|
|losses(while closely related with the normal business of the|||
|Company, excluding the fixed-amount or fixed-proportion|||
|governmental subsidy according to the unified national standard)|||
|Reversal of impairment reserve for account receivable with|1,309,568.96||
|separate impairment testing|||
||353,773.59|Mainly due to the hosted servicesoffering to Sinopharm Holdingand China NationalPharmaceutical Foreign TradeCorporation|
|Trustee fee obtained from entrusted management|||
||2,640,765.63|The default fine of overduepayment for equity transferreceived from Xinyu Boda|
|Other non-operating income and expenditure except for the|||
|aforementioned items|||
|Subsidiary disposal and revaluation gains/losses of long-term|121,754,182.26||
|investment|||
|Less: impact on income tax|4,643,039.53||
|Influenced amount of minority shareholders’ equity (after tax)|176,547.25||
|Total|137,612,675.45|--|

Concerning the extraordinary profit (gain)/loss defined byQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable√ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the
Public --- Extraordinary Profit/loss.
Section IV. Report of the Board of Directors
I. Introduction
2016 is the first year ofCompany’s 13th Five-Year Plan and also a year for the enterprise integration, restructuring and transformation. Looking back on the first half year, confronted with the external policy changes and industry changes, and faced with the challenges of internal business restructuring, rebuilding infrastructure, and employee transition, the Company unifies the thoughts, clarifies the thinking, adapts to the changes, and takes the strong foundation, brave innovation, risk control, and security compliance as the main line of business, continues to strengthen the basic management, improve the control efficiency, improve the quality and efficiency of traditional businesses and expand the innovation businesses, so that the Company has preferably completed all key tasks of the first half year.
(I) Overall economic performance of China National Accord in the first half of 2016
China National Accord achieved operating income of 14.089 billion Yuan, with a year-on-year growth of9.95%; achieved net profit attributable to parent Company of 542 million Yuan, with a year-on-year growth of39.97%. Distribution division achieved operating income of 13.305 billion Yuan, with a year-on-year growth of11.23%; achieved net profit attributable to parent Company of 235 million Yuan, with a year-on-year growth of7.68%. Pharmaceutical division achieved operating income of 787 million Yuan, a decrease of8.39% on a year-on-year basis; achieved net profit attributable to parent Company of 138 million Yuan, an increase of12.56% on a year-on- year basis.
(II) Major work the Company has completed in the first half of 2016
1. Steadily advance the major asset restructuring
The Company organizes the intermediaries to fulfill their duties and smoothly implements the asset restructuring. In the progress, the Company has carried out the roadshow in Beijing, Shanghai and Shenzhen, explained the restructuring project and its strategic importance to theCompany’s development to all investors, and has got supports and acceptance of many investors, the restructuring bill has been unanimously passed by the meeting of stockholders. At the end of June, the Company has received the "Administrative license application acceptance notice of China Securities Regulatory Commission".
2. Launch the development planning formulation for retail and diagnosis and treatment
In the strategic positioning, keep a foothold in Guangdong and Guangxi, take advantages of the integration of wholesale and retail and the operational integration, make the pharmacy brands which form an effective synergy and complementary mechanism for the medical cooperation with hospitals, establish the professional DTP health service network mainly based on new special medicines and medicines for chronic diseases, further cultivate the market segment for wholesale and retail, and develop new profit growth points of distribution.
On the development tasks, build a competitive DTP professional health service system having the best service and
the fastest delivery; keep the leading position in the industry, and become the preferred "medical cooperation pharmacy" partners to hospitals; innovate the development patterns of retail business, and meet the multi-level and diversified health service needs.
3. Control the operational risks and consolidate the results of "two reduce one decrease"
Performance-oriented, and clarify responsibilities; implement the "four linkage" policy. Performance and remuneration link with the Company and individual annual evaluation; in accordance with the principle of "reasonable collect and release, proper control and increase", optimize the internal resource allocation, optimize the marketing variety structure, and improve the contribution degree of high quality customers and the market shares; combine with the requirements of "Four Clean-ups", sort out the inefficient varieties and inefficient customers, and enhance the profitability of inefficient enterprises; strategically carry out the medical cooperation projects, and periodically evaluate the input-output results; strengthen the capital budget management, and strictly control the overall capital scale, including bank credit, annual capital scale merit and scale increment.
4. Establish long-term mechanism for compliance management, and strengthen the implementation and supervision of responsibilities
The Company signs the liability statement of compliance management and honest business layer upon layer; improve the system and internal control system, strengthen the compliance awareness and implementation of responsibilities, and initially establish the long-term mechanism for compliance management; form a joint inspection mechanism for finance, internal control and audit to realize multi-sectoral linkage and comprehensively investigate the potential risks.
In the first half year, the Company has completed the comprehensive investigation to high-risk businesses of distribution enterprises and industrial enterprises; completed the general check-up on the financial work of subsidiary enterprises, including expense reimbursement, cash and bank deposits, capital approval and budget, taxation, and reception, and rectified and reformed all problems.
5. Distribution, potential tapping and innovation, two-wheel drive promoting the development
(1) Tap the potential of traditional business
Integrated sales volume increases by17% on a year-on-year basis; vaccine business undertakes the variety distribution services, and continue to carry out the depth distribution projects; improve the logistics network layout, promote the projects such as Guangzhou-Foshan logistics center new warehouse, Zhanjiang new warehouse, etc.; put logistics operation billing into trial use, optimize the business flow and logistics collaboration, and cut the costs and improve the efficiency; promote the hospital supply chain extending services and vaccine distribution services. (2) New Businesses are flourishing
Up to June 2016, the distribution division has been involving in 54 medical cooperation projects, increasing 11 new service types, project evaluation system and risk assessment system have been improved; B2B e-commerce has won 530 online customers, and the sales volume has reached 2.5 billion Yuan; there are 17 DTP pharmacies with sales volume over 200 million Yuan. Make service innovation and establish Guangdong Hospital Internet Call Center; in April, Sinopharm Holding Guangzhou Co., Ltd. obtained the "Qualification Certificate for Internet Drugs Transaction Services".
6. Improve the industrial integrated platform, and build a strong service background
(1) Adjust the organizational structure
Complete the adjustment to integration, professionalization, delayering and gradient of organizational structure for Shenzhen Industry; optimize the annual incentive plan to enhance the organizational effectiveness.
(2) Marketing management
Actively explore the marketing model transformation, and continue to promote the fine marketing. Forecast the financial risks under two-vote system and new model, and focus on the control of selling expenses reimbursement and make policy responses; promote the national price maintenance work, take advantages of the successful biddings in EU and Hong Kong for major varieties, its quality levels have been recognized in many provinces which brings prominent competitive advantage in the bidding.
(3) R& D management
Actively respond to the "consistency evaluation to generic drugs", plan ahead, eight varieties and 11 specifications have been sifted for consistency evaluation; set up a project team, concentrate on superior resources, and complete the consistency evaluation work.
(4) Production management
Deepen the lean production, and leverage the quality authentication program to enhance the quality management level. In February, China National Zhijun Shenzhen has passed the new GMP certification for non-cephalosporin oral solid preparation workshop; in March, China National Zhijun Shenzhen Pingshan has passed the GMP on-site inspection to oral solid second workshop, external preparation workshops, warehouses, shared systems, and workshops for traditional Chinese medicine pre-treatment and extraction done by Guangdong Food and Drug Administration; in May, China National Zhijun Shenzhen has passed the on-site inspection of EU certification to the solid second workshop; China National Zhijun ShenzhenPingshan’s EU GMP certification project has made effective progress which is expected to receive theclients’ pre-audit recently.
(5) The process of internationalization
Based on the EU, focusing on big market, developing major customers, further developing and increasing sales, international brands getting recognition, Sinopharm Zhijun Shenzhen has been awarded"China’s Top 20 International Leading Preparations Enterprises in 2015"
(6) Pingshan base
Intensify efforts to introduce projects, seven projects are currently in negotiations; PGT project has realized the supply of material in Pingshan; the vermox project commissioned to Pingshan base for processing is being advanced. On April 18, China National Accord has signed the framework agreement with Pingshan New District to co-build the incubator for bio-pharmaceutical industry development
II. Main business analysis
Y-o-y changes of main financial data
In RMB
||||||
|-|-|-|-|-|
||Current period|Same period of last year|Y-o-y increase/decrease|Reasons for changes|
|Operating revenue|14,089,052,871.88|12,813,803,166.77|9.95%||
|Operating costs|13,040,493,792.81|11,801,661,040.42|10.50%||
|Sales expenses|256,587,355.57|262,074,106.01|-2.09%||
|Administration expenses|223,764,647.62|203,589,373.35|9.91%||
||31,429,057.49|58,639,672.40||Mainly because capital|
|||||efficiency improve for the|
|||||accelerated asset|
|||||turnover, optimize|
|Finance expenses|||-46.40%||
|||||financing structure in|
|||||aspect of variety at the|
|||||same time and reduce|
|||||outward financing|
|Income tax expenses|110,456,898.44|95,348,854.50|15.85%||
|R&D input|25,988,200.63|33,640,577.40|-22.75%||
|Net cash flow arising|492,634,062.23|448,239,578.73|||
||||9.90%||
|from operating activities|||||
|Net cash flow arising|157,465,676.21|-79,800,820.06||Resulted by the disposal|
|from investment|||297.32%|of 67% equity of China|
|activities||||National Zhijun (Suzhou)|
||-188,369,594.17|-65,104,388.08||Mainly because capital|
|Net cash flow arising||||turnover accelerated, and|
||||-202.99%||
|from financing activities||||the debt payment|
|||||increased|
||461,730,144.27|303,343,621.01||Mainly due to the|
|Net increase of cash and||||increase of net cash flow|
||||52.21%||
|cash equivalent||||arising from investment|
|||||activities|

Major changes on profit composition or profit resources in reporting period
□ Applicable√ Not applicable
No major changes on profit composition or profit resources occurred in reporting period.
The future development and planning extended to reporting period that published in disclosure documents as prospectus, private placing memorandum and recapitalize statement
□ Applicable√ Not applicable
No future development and planning extended to reporting period that published in disclosure documents as prospectus, private placing
memorandum and recapitalize statement.
Summary on the progress of the operation plan as disclosed previously by the Company during the reporting period
Nil.
III. Constitution of main business
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase or|Increase or|Increase or|
|||||decrease of|decrease of|decrease of gross|
||Operating||||||
|||Operating cost|Gross profit ratio|operating revenue|operating cost|profit ratio over|
||revenue||||||
|||||over same period|over same period|same period of|
|||||of last year|of last year|last year|
|According to industries|||||||
||13,272,623,263.7|12,585,131,877.1|||||
|Medical business|||5.18%|11.45%|11.66%|-0.18%|
||0|4|||||
|Medical|||||||
||758,296,980.40|433,105,496.75|42.88%|-10.16%|-15.89%|3.89%|
|manufacture|||||||
|Logistics and|||||||
||19,256,444.94|14,860,926.88|22.83%|23.41%|33.10%|-5.61%|
|warehousing|||||||
|services|||||||
|Lease and other|||||||
||3,619,564.79|1,193,473.50|67.03%|-7.74%|-0.40%|-2.43%|
|service|||||||
|According to products|||||||
||13,734,416,205.7|12,742,266,060.1|||||
|Drugs|||7.22%|9.81%|10.23%|-0.36%|
||8|4|||||
|Apparatus|296,504,038.32|275,971,313.76|6.92%|20.58%|21.71%|-0.88%|
|Other|22,876,009.73|16,054,400.38|29.82%|16.74%|29.68%|-7.00%|
|According to region|||||||
||14,018,459,177.9|13,006,482,062.7|||||
|Domestic income|||7.22%|10.05%|10.50%|-0.38%|
||6|8|||||
|Foreign income|35,337,075.87|27,809,711.49|21.30%|3.54%|-0.19%|2.94%|

 IV. Core competence analysis
||
|-|
|1. Improved distribution network|
|The Company owns completed pharmaceutical distribution network in Guangdong and Guangxi provinces|
|covering almost all the medical institutions and large chain pharmacies rated as second-class or above in Guangdong|
|and Guangxi provinces and also providing medicine distribution services for third end consumers as represented by|
|various individual pharmacies, community medical service outlets, small clinics and new rural cooperative medica|
|nsurance. The Company fully takes advantage of its distribution network to provide value-added service and create|
|value for customers.|
|2. Leading smart supply chain|

|||
|-|-|
|Benefiting from the core smart supply chain, the Company effectively expanded supply chain service and thus||
|realized resource sharing and effective coordination between the upstream and downstream through promotion of||
|central inventory management projects and hospital pharmacy smart inventory management project.||
|3. High efficient integrated management||
|In connection with pharmaceutical distribution, the Company continues to strengthen integrated operation system||
|in Guangdong and Guangxi provinces, focusing on integration of procurement and basic operation between these||
|two provinces; cooperation in respect of businesses relating to medical equipments, consumables and vaccine was|consumables and vaccine was|
|accelerated between these two provinces, thus to realize management synchronization of Guangdong and Guangxi||
|provinces. In connection with pharmaceutical industry, the Company adopted professionalism and integration as||
|guidance to improve the platform structure with “three centers and three bases”, resulting in continuous||
|enhancement of industrial integrated operation.||

||
|-|
|4. Abundant product resources|

|||
|-|-|
|In connection with pharmaceutical distribution, the Company established vast cooperation with thousands of||
|domestic manufacturers and business enterprises, and established steady business relationship with hundreds of||
|import and joint venture manufacturers, to diversify its variety resources. In connection with pharmaceutical|In connection with pharmaceutical|
|industry, the Company mainly focused on medicines relating to anti-infection, respiratory system, digestive system||
|and cardiovascular as well as great health area. It owns modern pharmaceutical R&D and production bases qualified||
|with international standards, and certain production lines for powder injection, orally-taken solid preparations and||
|active pharmaceutical ingredient with EU authentication. The Company has launched a number of famous products||
|with leading market share through establishing strict quality management and control system.||

||
|-|
|5. Domestic brands with unique influences|

||
|-|
|The Company’s brands and distribution share the same principles with the industrialized sub-brands and those|
|owned by controlling shareholders and actual controllers. Benefiting from the strong influence as a central enterprise|
|the Company takes an increasing significant position in this industry in terms of recognition and influence.|

V. Investment analysis
1. External equity investment
(1) External investment
□ Applicable√ Not applicable
The Company has no external equity investment in the Period.
(2) Holding equity of financial enterprise
□ Applicable√ Not applicable
The Company has no equity of financial enterprise held in the Period.
(3) Securities investment
□ Applicable√ Not applicable
The Company has no securities investment in the Period.
(4) Explanation on equity of other listed company held
□ Applicable√ Not applicable
The Company had no equity of other listed company held in Period.
2. Trust management, derivative investment and entrust loans
(1) Trust financing
□ Applicable√ Not applicable
The Company has no trust financing in the Period.
(2) Investment of derivatives
□ Applicable√ Not applicable
The Company has no derivatives investment in the Period.
(3) Entrustment loan
√ Applicable□ Not applicable
In 10 thousand Yuan
|||||||
|-|-|-|-|-|-|
||Related|||||
|||Loan|Lending|Guarantor/Collater|Application of|
|Loan customer|parties|||||
|||amount|rate|al|funds|
||(Y/N)|||||
||||||RMB 56.949|
|||||Guarantor: Xinyu||
||||||million was the|
|||||Boda Hengkang||
||||||project loan and|
|China National Zhijun (Suzhou) Pharmaceutical Co.,||||Investment||
||Yes|9,394.9|4.57%||rests of the loans|
|Ltd.||||Management||
||||||will supplement|
|||||Center (Limited||
||||||the operating cash|
|||||Partnership)||
||||||flow|
|Total|--|9,394.9|--|--|--|
|Extension, overdue or lawsuits (if any)|RMB 4.949 million outstanding|||||
|Solutions for the risks of extension, overdue or||||||
||Amount outstanding-collection|||||
|lawsuits (if any)||||||
|Disclosure date of the Notice of BOD for the entrust||||||
||Not applicable|||||
|loans approved (if any)||||||
|Disclosure date of the Notice of BOS for the entrust||||||
||Not applicable|||||
|loans approved (if any)||||||

3. Application of raised proceeds
□ Applicable√ Not applicable
The Company has no application of raised proceeds in the Period.
4. Main subsidiaries and joint-stock companies analysis
√ Applicable□ Not applicable
Main subsidiaries and joint-stock companies
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||Register||||||
|||Industry|Main products or||||Operation|Operation||
|Name|Type|||ed|Total assets|Net assets|||Net profit|
|||involved|service||||revenue|profit||
|||||capital||||||
||||Production for raw|||||||
||||medicine of|||||||
|Shenzhen|||chemical products,|||||||
||||processing for|||||||
|Zhijun|Subsid|Manufac||200,000,|945,202,95|475,157,578.6|600,241,558.5|141,677,492|124,359,173|
||||Chinese traditional|||||||
|Pharmaceuti|iary|ture|patent medicine,|000.00|0.97|8|5|.16|.21|
||||production of|||||||
|cal Co., Ltd.||||||||||
||||chemical material of|||||||
||||medicine; Import|||||||
||||and export trade are|||||||

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||treated by|||||||
||||authorized|||||||
||||certificates|||||||
||||Western medicine,|||||||
||||Chinese patent|||||||
||||medicine, Chinese|||||||
||||herbal pieces,|||||||
||||chemical drugs|||||||
||||agents, antibiotics,|||||||
||||blood products,|||||||
||||biochemical drugs,|||||||
||||diagnosis drugs,|||||||
||||biological products|||||||
||||(vaccine included),|||||||
|Sinopharm||||||||||
||||prepackaged food,|||||||
|Holding|Subsid|Commer||1,000,00|6,121,556,2|1,187,383,485|7,782,864,948|107,430,350|77,684,934.|
||||medical diagnosis,|||||||
|Guangzhou|iary|ce||0,000.00|14.33|.87|.96|.60|50|
||||medical care and|||||||
|Co., Ltd.||||||||||
||||treatment facility,|||||||
||||internet drug|||||||
||||business,|||||||
||||merchandise|||||||
||||information|||||||
||||consulting service,|||||||
||||self-operated and|||||||
||||agent vary|||||||
||||merchandise and|||||||
||||technology import|||||||
||||and export.|||||||
||||Chinese herbal|||||||
||||medicines, Chinese|||||||
||||herbal pieces,|||||||
||||Chinese patent|||||||
||||medicine, chemical|||||||
||||raw medicines and|||||||
|Sinopharm||||||||||
||||its preparation,|||||||
|Holding|Subsid|Commer||500,000,|1,930,571,8|622,101,439.0|1,940,752,019|64,589,166.|56,833,110.|
||||antibiotics,|||||||
|Guangxi|iary|ce||000.00|52.50|4|.67|77|45|
||||biochemical drugs,|||||||
|Co., Ltd.||||||||||
||||biological products,|||||||
||||vaccine, narcotic,|||||||
||||psychoactive drug,|||||||
||||medicinal toxic|||||||
||||drugs and medical|||||||
||||equipments.|||||||

5. Major project invested by non-raised funds
√ Applicable□ Not applicable
In ten thousand Yuan
|||||||||
|-|-|-|-|-|-|-|-|
||||Amount|||||
||||invested|||||
||Total|Amount|||||Disclosure|
||||accumulative|||Disclosure date||
|Project|investment|invested in this||Progress|Earnings||index|
||||till end of|||(if applicable)||
||planned|period|||||(if applicable)|
||||reporting|||||
||||period|||||
||||||The project covers|||
||||||approximately|||
||||||73352 M2 in total,|||
||||||||“China|
||||||positioning as the|||
||||||||National|
||||||production base of|||
||||||||Accord:|
||||||essential medicines|||
||||||||Announcement|
|(Pingshan)|||||and special drugs, a|||
||||||||of Increasing|
|Medicine R&D|||||manufacture base of|||
||88,137|2,306.61|49,784.11|89.80%||2014-03-22|Investment|
|Manufacturing|||||modern traditional|||
||||||||Amount”|
|Base|||||Chinese medicine|||
||||||||(Notice No.:|
||||||preparations and|||
||||||||2014-18)|
||||||massive health|||
||||||||released on|
||||||products as well as|||
||||||||Juchao Website|
||||||the international co-|||
||||||ordination|||
||||||processing base|||
|Total|88,137|2,306.61|49,784.11|--|--|--|--|

 VI. Prediction of business performance from January– September 2016
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable√ Not applicable
VII. Explanation from the Board and Supervisory Committee for “Qualified Opinion” from the CPA of thisyear’s
□ Applicable√ Not applicable
VIII. Explanation from the Board for “Qualified Opinion” of lastyear’s
□ Applicable√ Not applicable
IX. Implementation of profit distribution in reporting period
Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy during the Reporting Period
√Applicable□ Not applicable
The profit distribution scheme for year of 2015 was deliberated and approved in the Shareholders General Meeting of 2015 on April 22, 2016, calculating based on theCompany’s total existing shares of 362,631,943 shares, and the Company distribute RMB 3.00 (including tax) dividend per ten shares to all shareholders in cash. On May 24, 2016, Board of Directors issued Announcement on Implementation of the 2015 Equity Distribution Plan (published on Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website http://www.cninfo.com.cn), the 2015 Annual Profit Distribution Plan was implemented, and dividend for social public shareholders distributed toshareholders’ account on 30 May 2016 (A shares) and 1 June 2016 (B shares) respectively.
|||
|-|-|
|Special explanation on cash dividend policy||
|Satisfy regulations of General Meeting or requirement of Article||
||Y|
|of Association (Y/N):||
|Well-defined and clearly dividend standards and proportion||
||Y|
|(Y/N):||
|Completed relevant decision-making process and mechanism||
||Y|
|(Y/N):||
|Independent directors perform duties completely and play a||
||Y|
|proper role (Y/N):||
|Minority shareholders have opportunity to express opinions and||
||Y|
|demands totally and their legal rights are fully protected (Y/N):||
|Condition and procedures are compliance and transparent while||
||Not applicable|
|the cash bonus policy adjusted or changed (Y/N):||

X. Profit distribution and capitalization of capital reserves in the Period
□ Applicable√ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for the semi-annual year.
XI. In the report period, reception of research, communication and interview
√ Applicable□ Not applicable
|||||||
|-|-|-|-|-|-|
||||||Contents discussed and material|
|Time|Place|Way|Type|Reception||
||||||provided|
|||||Guotai Junan Securities, Guosen Securities,|Research condition found more in the|
|2016-01-|The|Field||||
||||Institution|Tianhong Asset Management, Founder|“IR Actively Log (13 Jan. 2016)”|
|13|Company|research||||
|||||Securities, Chongzhi Asset Management,|upload on SSE’s Interactive easy|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Guangzheng Hengseng, Minsheng|||||||Securities,||(http://irm.cninfo.com.cn/ssessgs/S0000|
|Haitong Securities,||||CITIC Securities, Shenwan|||||28/index.html)|
|Hongyuan,|China Merchants Fund Management,|||||||||
|Bosera Funds, Rabbit Fund, HuaAn Funds,||||||||||
|Zhongrong International Trust||||||, JX Asset||||
|Management, Huaixin Investment, Pacific||||||||||
|Securities, Wanxiang Funds,|||||||Southwest|||
|Securitie,||Youngy Investment, Century||||||||
|Securities, Foresea Life Insurance, Dongguan||||||||||
|Securities, Dacheng Fund, Changsheng Fund,||||||||||
|Shenwan Hongyuan,|||||Upright Fund|||, Etock||
|Capital, CMS, Shangcheng Asset Management,||||||||||
|Essence Fund, Chuanghai Fuxin, Rongtong||||||||||
|Fund Management, Weishi Capital, Elitimes,||||||||||
|Chengding Fund, China Industrial Asset||||||||||
|Management, Dingtian Investment, Dewei||||||||||
|Capital, CICC,|||Zhongrong International Trust,|||||||
|Zundao Investment, Kaishi Capital, Huayi||||||||||
|Shengshi, Lion Fund and etc.||||||||||

Section V. Important Events
I. Corporate governance
||
|-|
|The Company established and improved legal person governance structure in strict compliance with the|
|requirements of Company Law, Securities Law and Governance Principles of Listed Issuer. Currently, the Company|
|enjoys sound legal person governance structure, healthy governance system and standardized operation.|
|The Company has definite and balanced terms of reference in respect of its general meeting, board of directors,|
|board of supervisors and manager level which exercise voting right, decision-making right, supervision right and|
|execution right respectively under standardized operation.|
|The Company has prepared working procedures applicable for general meeting, board of directors and board of|
|supervisors, working system applicable for the strategy committee, nomination committee, risk internal control and|
|audit committee, remuneration and performance committee, general manager and secretary to the board, and|
|prepared governance system relating to information disclosure, connected transaction, fund raising, performance of|
|social responsibility, inside information and insider management, investor relation management, engagement of|
|CPA, prevention of occupying listed issuer’s capital by substantial shareholders and related parties.|
|As a state-owned holding listed company, the Company also executed the relevant provisions on state-owned assets|
|management required by controlling shareholders and actual controllers. Details are set out below:|

|||||||
|-|-|-|-|-|-|
|Serial|Informationsubmitted object|Relationship with thelisted company|Type|Basis for submitted|Submitted cycle|
|1|Sinopharm GroupCo., Ltd.|First largest shareholder|Financialstatement|Needs of consolidated statement oflargest shareholder|Regular|
|2|China NationalPharmaceuticalGroup Corporation|Actual controller|AssetsEvalutionReport ect.|Management method of state-owned property right transfer andequity investment management ofChina National PharmaceuticalGroup Corp.|Temporary|

In September of 2007, the Company's board of directors and board of supervisors approved the "Bill on Implementing Staff Report of Insider Trading Information and Governance on Non-standard Special Information Disclosure" which agreed that the Company implements enforcement of secrecy and staff report system for insider trading information when conducting relevant provisions of the management of state-owned assets, regularly submitting the financial statements to major shareholders and reporting to the major shareholder about state-owned assets disposal.
II. Lawsuits of the Company
Material lawsuits and arbitration
□ Applicable√ Not applicable
The Company has no significant lawsuits and arbitrations in reporting period.
Other lawsuits
√ Applicable□Not applicable
|||||||||
|-|-|-|-|-|-|-|-|
||Amount|||||||
|||Resulted an||||||
|Lawsuits|involved (in|||Trial result and|Execution of|Disclosure|Disclosure|
|||accrual liability|Progress|||||
|(arbitrations)|10 thousand|||influence|judgment|date|index|
|||(Y/N)||||||
||Yuan)|||||||
|The Company and||||||||
|subordinate|||||||Case far from|
|enterprises suit|||||||disclosure|
||4,894.77|||||||
|against other||N|-|-|-||standards of|
|company for|||||||major|
|contract disputes|||||||litigation|
|(23 cases)||||||||
|Other company||||||||
||||||||Case far from|
|suit against||||||||
||||||||disclosure|
|subordinate of the|760.32|||||||
|||N|-|-|-||standards of|
|Company for||||||||
||||||||major|
|contract dispute (1||||||||
||||||||litigation|
|case)||||||||
|Subordinate||||||||
|enterprise of the||||||||
||||||||Case far from|
|Company submit||||||||
||||||||disclosure|
|official report on||||||||
||1,454.44|N|-|-|-||standards of|
|contract fraud||||||||
||||||||major|
|suspicion against||||||||
||||||||litigation|
|other company (2||||||||
|cases)||||||||
|Subordinate||||||||
|enterprise of the||||||||
||||||||Case far from|
|Company suit||||||||
||||||||disclosure|
|against other||||||||
||100.00|n|-|-|-||standards of|
|company for||||||||
||||||||major|
|trademark, trade||||||||
||||||||litigation|
|name infringement||||||||
|(1 case)||||||||
||||||||Case far from|
||||||||disclosure|
|Labor dispute (2||||||||
||104.40|N|-|-|-||standards of|
|cases)||||||||
||||||||major|
||||||||litigation|

|||||||
|-|-|-|-|-|-|
||||||Case far from|
||||||disclosure|
|Other (7 cases)|155.18|N|- -|-|standards of|
||||||major|
||||||litigation|

 III. Questions by media
□Applicable√ Not applicable
No questions by media in Period.
IV. Bankruptcy reorganization
□Applicable√ Not applicable
No bankruptcy reorganization in Period.
V. Transaction in assets
1. Assets acquisition
□Applicable√ Not applicable
The Company had no assets acquisition in the Period.
2. Sales of assets
√ Applicable□Not applicable
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||The net||The||||||||
|||||profits||proporti||||||||
|||||||||||The|The|||
|||||contribu||on of|||The|||||
|||||||||||ownersh|creditor'|||
|||||ted to||the net|||associati|||||
|||||||||||ip of|s rights|||
|||||the||profits|||on with|||||
|||||||||Related||property|and|||
||||Transact|listed|Impact|that the|||the|||||
|||||||||transacti||rights|debts|Date|Index|
||||ion price|compan|on the|assets|Pricing||counterp|||||
|Counter|Assets|The date||||||on||that|that|of|of|
||||(in 10|y by the|Compan|for sale|principl||arty|||||
|party|for sale|of sale||||||confirm||involved|involved|disclos|disclosu|
||||thousan|asset|y|contribu|e||(Applica|||||
|||||||||ed||has|has|ure|re|
||||d Yuan)|from the|(note3)|ted to|||ble for|||||
|||||||||(Y/N)||transferr|transferr|||
|||||beginnin||the|||related|||||
|||||||||||ed|ed|||
|||||g of||listed|||transacti|||||
|||||||||||totally|totally|||
|||||current||compan|||on)|||||
|||||||||||(Y/N)|(Y/N)|||
|||||period||y in||||||||
|||||to the||total||||||||

|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||date of||profits||||||||
|||||sale(in||||||||||
|||||10||||||||||
|||||thousan||||||||||
|||||d Yuan)||||||||||
|Xinyu||||||||||||||
|Boda||||||||||||||
||||||Impact|||||||||
|Hengka||||||||||||||
||67%||||on||||||||Juchao|
|ng||||||||||||||
||equity||||current||Based||||||websit|
|Investm||||||||||||||
||of China||||net||on||Non-||||e,|
|ent||2016.4.2||-||||||||2015-||
||National||15,780||profit of|21.96%|assessm|No|related|Yes|Yes||Notice|
|Manage||6||1,116.99||||||||12-31||
||Zhijun||||RMB||ent||party||||No.:|
|ment||||||||||||||
||(Suzhou||||121.754||result||||||2015-|
|Center||||||||||||||
||)||||2||||||||56|
|(Limited||||||||||||||
||||||million|||||||||
|Partners||||||||||||||
|hip)||||||||||||||

3. Enterprise combination
□Applicable√ Not applicable
No enterprise combination in Period.
VI. Implementation and its influence of equity incentive plan
□Applicable√ Not applicable
No implementation of equity incentive plan in Period.
VII. Material related transaction
1. Related transaction with daily operation concerned
(1) The related transaction with routine operations concerned found more in the “X. Related parties and related transaction” in “Section IX. Financial Report”;
(2) The related transactions are settled by cash and notes, disclosed on 26 March 2016, and disclosure on Juchao Website with Notice No.: 2016-32;
(3) According with the Notice of Routine Related Transactions for year of 2016, deliberated and approved by the Board dated 26 March 2016, during the reporting period, the affiliated company sales representing46.39% of the total predicted amount, affiliated company procurement representing46.05% of the total predicted amount, the interest expenditure of affiliated company loans representing3.65% of the predicted amount, the interest expenditure of buyer discount for affiliated company notes representing43.10% of the predicted
amount, interest expenditure for finance lease of affiliated company representing8.64% of the total predicted amount, expenses of
long-term assets acquisition as fixed assets from affiliated company representing4.52% of the total predicted amount, affiliated
company’s leasing revenue representing47.37% of the total predicted amount, affiliatedcompany’s house& equipment leasing expenses representing48.91% of the total predicted amount, the income of service providing from affiliated company representing53.09% of the predicted amount and expenditure of the service received by affiliated company representing19.60% of the predicted amount.
2. Related transaction incurred by purchase or sales of assets
□Applicable√ Not applicable
No related transaction incurred by purchase or sales of assets in Period.
3. Related transaction from jointly investment outside
□Applicable√ Not applicable
No related transaction from jointly investment outside occurred in Period.
4. Current related liabilities and debts
√ Applicable□Not applicable
Whether has non-operational contact of related liability and debts or not
□ Yes√No
No non-operational contact of related liability or debts in Period.
5. Other related transactions
□Applicable√ Not applicable
The company had no other related transactions in Period.
VIII. Non-business capital occupying by controlling shareholders and its related parties□Applicable√ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period.
IX. Significant contracts and its implementation
1. Trusteeship, contract and lease
(1) Trusteeship
√ Applicable□Not applicable
Instruction of trusteeship
1. As subordinate companies of majority shareholder, Foshan Nanhai Medicine Co., Ltd. (“Nanhai Medicine”) and Guangdong Dong Fang Uptodate& Special Medicines Co., Ltd. (“Dong Fang Uptodate& Special Medicines”) both operate pharmaceutical distribution business within Guangdong, which partially overlaps with the pharmaceutical distribution business and geographical location of the Company and constitutes peer competition. In July 2013, to solve the problem of peer competition, majority shareholder entrusted Sinopharm Accord and Sinopharm Accord agreed to take over the management of the above two companies.
2. As a subordinate enterprise of the de facto controller, Guangdong South Pharmaceutical Foreign Trade Co., ltd. operates pharmaceutical distribution business within Guangdong, which partially overlaps with the pharmaceutical distribution business and geographical location of the Company and constitutes peer competition. In September 2013, to solve the problem of peer competition, majority shareholder entrusted Sinopharm Accord and Sinopharm Accord agreed to take over the management of the above company. Gains/losses to the Company from projects that reached over10% in total profit of the Company in reporting period
□Applicable√ Not applicable
No gains or losses to the Company from projects that reached over10% in total profit of the Company in reporting period.
(2) Contract
□Applicable√ Not applicable
The Company had no contract in the reporting period.
(3) Leasing
□Applicable√ Not applicable
The Company had no leasing in the reporting period.
2. Guarantees
√ Applicable□ Not applicable
In ten thousand Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|External guarantee of the Company (Barring the guarantee for the controlling subsidiaries)|||||||||
||Related|||||||Guarante|
||||Actual date of||||Complete||
|Name of the|Announce|||||||e for|
|||Guarantee|happening (Date|Actual|Guarantee|Guarantee|implemen||
|Company|ment|||||||related|
|||limit|of signing|guarantee limit|type|term|tation||
|guaranteed|disclosure|||||||party|
||||agreement)||||(Y/N)||
||date|||||||(Y/N)|
|China National|||||||||
||||||General|2016.4.29-|||
|Accord Medicines|2016-03-26|20,000|2016-04-29|6,000|||No|Yes|
||||||guarantee|2016.5.15|||
|Corporation Ltd.|||||||||
|China National|||||||||
||||||General|2016.5.25-|||
|Accord Medicines|2016-03-26|25,000|2016-05-25|10,520.06|||No|Yes|
||||||guarantee|2017.5.25|||
|Corporation Ltd.|||||||||
|China National|2015-03-21|3,000|2015-09-08|1,550|General|2015.9.8-|No|Yes|

||||||||||
|-|-|-|-|-|-|-|-|-|
|Zhijun (Suzhou)|||||guarantee|2016.9.7|||
|Pharmaceutical|||||||||
|Co., Ltd.|||||||||
|||||Total actual occurred external|||||
|Total approving external||45,000||||18,431.5|||
|||||guarantee in report period|||||
|guarantee in report period (A1)|||||||||
|||||(A2)|||||
|Total approved external||||Total actual balance of|||||
|||48,000||||18,070.06|||
|guarantee at the end of report||||external guarantee at the end|||||
|period ( A3)||||of report period (A4)|||||
|Guarantee of the Company for the subsidiaries|||||||||
||Related|||||||Guarante|
||||Actual date of||||Complete||
|Name of the|Announce|||||||e for|
|||Guarantee|happening (Date|Actual|Guarantee|Guarantee|implemen||
|Company|ment|||||||related|
|||limit|of signing|guarantee limit|type|term|tation||
|guaranteed|disclosure|||||||party|
||||agreement)||||(Y/N)||
||date|||||||(Y/N)|
|Sinopharm|||||||||
|Holding|||||General|2016.5.20-|||
||2016-03-26|35,000|2016-05-18|23,932.08|||No|Yes|
|Guangzhou Co.,|||||guarantee|2017.5.20|||
|Ltd.|||||||||
|Sinopharm|||||||||
|Holding|||||General|2015.8.21-|||
||2015-03-21|10,000|2015-08-21|8,138.09|||No|Yes|
|Guangzhou Co.,|||||guarantee|2016.8.20|||
|Ltd.|||||||||
|Sinopharm|||||||||
|Holding|||||General|2015.12.25-|||
||2015-03-21|5,000|2015-12-25|0|||No|Yes|
|Guangzhou Co.,|||||guarantee|2016.10.30|||
|Ltd.|||||||||
|Sinopharm|||||||||
|Holding|||||General|2015.12.21-|||
||2015-08-20|20,000|2015-12-21|1,399.63|||No|Yes|
|Guangzhou Co.,|||||guarantee|2016.12.20|||
|Ltd.|||||||||
|Sinopharm|||||||||
|Holding|||||General|2016.6.29-|||
||2016-03-26|40,000|2016-06-29|18,124.48|||No|Yes|
|Guangzhou Co.,|||||guarantee|2017.6.28|||
|Ltd.|||||||||
|Sinopharm|||||||||
|Holding|||||General|2015.9.20-|||
||2015-03-21|40,000|2015-09-20|13,048.59|||No|Yes|
|Guangzhou Co.,|||||guarantee|2016.9.19|||
|Ltd.|||||||||
|Sinopharm|||||||||
|Holding|||||General|2015.9.8-|||
||2015-03-21|35,000|2015-09-08|29,329.3|||No|Yes|
|Guangzhou Co.,|||||guarantee|2016.9.7|||
|Ltd.|||||||||
|Sinopharm|||||General|2015.6.23-|||
||2015-03-21|30,000|2015-06-23|20,410.77|||No|Yes|
|Holding|||||guarantee|2016.4.30|||

||||||||||
|-|-|-|-|-|-|-|-|-|
|Guangzhou Co.,|||||||||
|Ltd.|||||||||
|Sinopharm|||||||||
|Holding|||||General|2016.5.9-|||
||2016-03-26|35,000|2016-05-05|29,742.36|||No|Yes|
|Guangzhou Co.,|||||guarantee|2017.4.28|||
|Ltd.|||||||||
|Sinopharm|||||||||
|Holding|||||General|2015.10.23-|||
||2015-03-21|10,000|2015-10-23|7,502.8|||No|Yes|
|Guangzhou Co.,|||||guarantee|2016.7.31|||
|Ltd.|||||||||
|Sinopharm|||||||||
|Holding|||||General|2016.5.10-|||
||2016-03-26|20,000|2016-05-10|14,983.33|||No|Yes|
|Guangzhou Co.,|||||guarantee|2017.5.9|||
|Ltd.|||||||||
|Sinopharm|||||||||
|Holding|||||General|2016.6.30-|||
||2016-03-26|50,000|2016-06-30|39,437.95|||No|Yes|
|Guangzhou Co.,|||||guarantee|2017.6.30|||
|Ltd.|||||||||
|Sinopharm|||||||||
|Holding|||||General|2016.4.1-|||
||2016-03-26|126,000|2016-04-01|27,289.54|||No|Yes|
|Guangzhou Co.,|||||guarantee|2017.3.31|||
|Ltd.|||||||||
|Sinopharm|||||||||
|Holding|||||General|2016.5.20-|||
||2016-03-26|3,500|2016-05-18|1,411.46|||No|Yes|
|Guangdong|||||guarantee|2017.5.20|||
|Yuexing Co., Ltd.|||||||||
|Sinopharm|||||||||
|Holding|||||General|2015.9.8-|||
||2015-03-21|5,000|2015-09-08|3,059.36|||No|Yes|
|Guangdong|||||guarantee|2016.9.7|||
|Yuexing Co., Ltd.|||||||||
|Sinopharm|||||||||
||||||General|2015.9.8-|||
|Holding Liuzhou|2015-03-21|9,000|2015-09-08|7,520.24|||No|Yes|
||||||guarantee|2016.9.7|||
|Co., Ltd.|||||||||
|Sinopharm|||||||||
||||||General|2016.6.20-|||
|Holding Liuzhou|2016-03-26|5,000|2016-06-20|2,021.96|||No|Yes|
||||||guarantee|2017.6.19|||
|Co., Ltd.|||||||||
|Sinopharm|||||||||
||||||General|2015.11.24-|||
|Holding Liuzhou|2015-08-20|6,000|2015-11-24|3,204.43|||No|Yes|
||||||guarantee|2016.11.23|||
|Co., Ltd.|||||||||
|Sinopharm|||||General|2015.12.17-|||
||2015-03-21|2,000|2015-12-17|1,480.49|||No|Yes|
|Holding Shenzhen|||||guarantee|2016.12.16|||

||||||||||
|-|-|-|-|-|-|-|-|-|
|Yanfeng Co., Ltd.|||||||||
|Sinopharm|||||||||
||||||General|2015.09.08-|||
|Holding Shenzhen|2015-03-21|7,000|2015-09-08|4,195.6|||No|Yes|
||||||guarantee|2016.09.07|||
|Yanfeng Co., Ltd.|||||||||
|Sinopharm|||||||||
||||||General|2016.06.03-|||
|Holding Shenzhen|2016-03-26|2,000|2016-06-03|1,700|||No|Yes|
||||||guarantee|2016.11.15|||
|Yanfeng Co., Ltd.|||||||||
|Sinopharm|||||||||
||||||General|2016.06.28-|||
|Holding Shenzhen|2016-03-26|3,000|2016-06-28|1,714.75|||No|Yes|
||||||guarantee|2017.04.28|||
|Yanfeng Co., Ltd.|||||||||
|Sinopharm|||||||||
||||||General|2016.2.1-|||
|Holding Foshan|2015-03-21|1,000|2016-02-01|960.21|||No|Yes|
||||||guarantee|2016.9.7|||
|Co., Ltd.|||||||||
|Sinopharm|||||||||
||||||General|2015.9.8-|||
|Holding Jiangmen|2015-03-21|3,000|2015-09-08|1,957.24|||No|Yes|
||||||guarantee|2016.9.7|||
|Renren Co., Ltd.|||||||||
|Sinopharm|||||||||
|Holding|||||General|2015.9.8-|||
||2015-03-21|1,000|2015-09-08|989.16|||No|Yes|
|Shaoguang Co.,|||||guarantee|2016.9.7|||
|Ltd.|||||||||
|Sinopharm|||||||||
||||||General|2016.3.30-|||
|Holding Zhanjiang|2015-03-21|3,000|2016-03-30|0|||No|Yes|
||||||guarantee|2016.9.7|||
|Co., Ltd.|||||||||
|Sinopharm|||||||||
||||||General|2015.9.8-|||
|Holding Shenzhen|2015-03-21|1,000|2015-09-08|334.53|||No|Yes|
||||||guarantee|2016.9.7|||
|Medicine Co., Ltd.|||||||||
|China National|||||||||
|Zhijun (Shenzhen)|||||||||
||||||General|2016.3.7-|||
|Pingshan|2015-03-26|2,000|2016-03-07|277.27|||No|Yes|
||||||guarantee|2016.9.8|||
|Pharmaceutical|||||||||
|Co., Ltd.|||||||||
|Sinopharm|||||||||
||||||General|2015.10.23-|||
|Holding Guangxi|2015-03-21|5,000|2015-10-23|0|||No|Yes|
||||||guarantee|2016.10.23|||
|Co., Ltd.|||||||||
|Sinopharm|||||||||
||||||General|2015.7.30-|||
|Holding Guangxi|2015-03-21|20,000|2015-07-30|15,122.49|||No|Yes|
||||||guarantee|2016.7.30|||
|Co., Ltd.|||||||||
|Sinopharm|||||||||
||||||General|2015.9.8-|||
|Holding Guangxi|2015-03-21|25,000|2015-09-08|12,477.77|||No|Yes|
||||||guarantee|2016.9.7|||
|Co., Ltd.|||||||||

||||||||||
|-|-|-|-|-|-|-|-|-|
|Sinopharm|||||||||
||||||General|2015.9.23-|||
|Holding Guangxi|2015-03-21|20,000|2015-09-23|1,999.61|||No|Yes|
||||||guarantee|2016.9.23|||
|Co., Ltd.|||||||||
|Sinopharm|||||||||
||||||General|2015.9.25-|||
|Holding Guangxi|2015-08-20|15,000|2015-09-25|9,705.68|||No|Yes|
||||||guarantee|2016.8.6|||
|Co., Ltd.|||||||||
|Sinopharm|||||||||
||||||General|2015.8.21-|||
|Holding Guangxi|2015-03-21|10,000|2015-08-21|0|||No|Yes|
||||||guarantee|2016.8.20|||
|Co., Ltd.|||||||||
|China National|||||||||
|Zhijun (Shenzhen)|||||General|2015.9.10-|||
||2015-03-21|20,000|2015-09-10|7,666.08|||No|Yes|
|Pharmaceutical|||||guarantee|2016.9.10|||
|Co., Ltd.|||||||||
|China National|||||||||
|Zhijun (Shenzhen)|||||General|2015.9.8-|||
||2015-03-21|5,000|2015-09-08|0|||No|Yes|
|Pharmaceutical|||||guarantee|2016.9.7|||
|Co., Ltd.|||||||||
|Sinopharm|||||||||
||||||General|2015.3.22-|||
|Holding Meizhou|2015-03-21|2,000|2015-09-08|1,500|||No|Yes|
||||||guarantee|2016.09.07|||
|Co., Ltd.|||||||||
|||||Total amount of actual|||||
|Total amount of approving|||||||||
|||319,500||occurred guarantee for||542,805.86|||
|guarantee for subsidiaries in|||||||||
|||||subsidiaries in report period|||||
|report period (B1)|||||||||
|||||(B2)|||||
|||||Total balance of actual|||||
|Total amount of approved|||||||||
|||631,500||guarantee for subsidiaries at||312,637.25|||
|guarantee for subsidiaries at the|||||||||
|||||the end of reporting period|||||
|end of reporting period (B3)|||||||||
|||||(B4)|||||
|Guarantee of the subsidiaries for the subsidiaries|||||||||
||Related||||||||
||||Actual date of||||Complete|Guarante|
|Name of the|Announce||||||||
|||Guarantee|happening (Date|Actual|Guarantee|Guarantee|implemen|e for|
|Company|ment||||||||
|||limit|of signing|guarantee limit|type|term|tation or|related|
|guaranteed|disclosure||||||||
||||agreement)||||not|party|
||date||||||||
|Total amount of guarantee of the Company (total of three abovementioned guarantee)|||||||||
|Total amount of approving||364,500||Total amount of actual|||||
|||||||561,237.36|||
|guarantee in report period||||occurred guarantee in report|||||
|(A1+B1+C1)||||period (A2+B2+C2)|||||
|Total amount of approved||679,500||Total balance of actual|||||
|||||||330,707.31|||
|guarantee at the end of report||||guarantee at the end of report|||||
|period (A3+B3+C3)||||period (A4+B4+C4)|||||
|The proportion of the total amount of actually guarantee in the|||||||||
|||||56.18%|||||
|net assets of the Company (that is A4+ B4+C4)|||||||||
|Including:|||||||||
|Amount of guarantee for shareholders, actual controller and its||||0|||||
|related parties(D)|||||||||
|The debts guarantee amount provided for the guaranteed|||||||||
|||||266,603.83|||||
|parties whose assets-liability ratio exceed 70% directly or|||||||||
|indirectly(E)|||||||||

|||
|-|-|
|Proportion of total amount of guarantee in net assets of the|36,371.02|
|Company exceed 50%(F)||
||302,974.85|
|Total amount of the aforesaid three guarantees(D+E+F)||
|Explanations on possibly bearing joint and several liquidating||
||N/A|
|responsibilities for undue guarantees (if applicable)||
|Explanations on external guarantee against regulated||
||N/A|
|procedures (if applicable)||

Explanation on guarantee with composite way
(1) Guarantee outside against the regulation
□ Applicable√ Not applicable
No guarantee outside against the regulation in Period.
3. Other significant contract
□Applicable√ Not applicable
No other significant contract in Period.
4. Other significant transaction
□Applicable√ Not applicable
No other significant transaction in Period.
X. Commitments from the Company or shareholder with over5% share held in reporting period or occurred in prior period but continues to reporting period
√ Applicable□Not applicable
|||||||
|-|-|-|-|-|-|
||||Commitment|Commitment||
||||||Implementation|
|Commitments|Accepter|Contents||||
||||time|period||
|Share Merger||||||
|Reform||||||
|||As a large pharmaceutical commercial enterprise||||
|||whose business involves pharmaceutical||||
|||wholesale and retail, Sinopharm Holding may||||
|||overlap with the Company in geographical||||
|Commitments in||segmentation during its future business||||
|report of|Sinopharm|development. To avoid the potential peer||Long-term|Normally|
||||2005-06-21|||
|acquisition or|Holding|competition brought by such geographical||effective|implement|
|equity change||overlap, Sinopharm Holding undertakes that,||||
|||upon the transfer of shares of Sinopharm||||
|||Holding Guangzhou it held to Accord Pharma,||||
|||“1. it will not newly-establish or broaden within||||
|||Guangdong any business operation that actually||||

|||||||
|-|-|-|-|-|-|
|||compete with that of Accord Pharma, or set up||||
|||any new subsidiaries or subordinate enterprises||||
|||who engage in such business. 2. it will enter into||||
|||business delineation with Accord Pharma and||||
|||Sinopharm Holding Guangzhou, thereby giving||||
|||the three parties clear geographical areas to carry||||
|||out pharmaceutical wholesale and retail||||
|||businesses, so as to avoid potential peer||||
|||competition. Apart from above, Sinopharm||||
|||Holding will no longer newly-establish any||||
|||enterprise that may compete with Accord||||
|||Pharma in the production and R&D of||||
|||pharmaceutical products.”||||
|Commitments in||||||
|assets||||||
|reorganization||||||
|||Sinopharm Holding has undertaken in the Letter||||
|||of Undertaking from Sinopharm Group Co. Ltd.||||
|||on Avoiding Peer Competition that, “I. the||||
|||Company and the enterprises it wholly-owns,||||
|||controls or has de facto control over (excluding||||
|||Sinopharm Accord and its controlled enterprises,||||
|||similarly hereinafter) do not exist any business||||
|||or operation that would constitute substantive||||
||||||Controlling|
|||peer competition with Sinopharm Accord and its||||
||||||shareholder is|
|||controlled enterprises. II. the Company and the||||
||||||implement in|
|||enterprises it wholly-owns, controls or has de||||
||||||real earnest,|
|||facto control over will not engage in, participate||||
||||||Sinopharm|
|Commitments||in or carry out in Guangdong and Guangxi any||||
||||||Accord will|
|make in initial|Sinopharm|business or activities that would constitute||Long-term||
||||2013-09-05||actively urged|
|public offering or|Holding|substantive competition with the pharmaceutical||effective||
||||||the controlling|
|re-financing||commercial businesses of Sinopharm Accord.||||
||||||shareholder and|
|||III. the Company and the enterprises it wholly-||||
||||||actual|
|||owns, controls or has de facto control over will||||
||||||controller to|
|||not engage in, participate in or carry out any||||
||||||fulfill|
|||business or activities that would constitute||||
||||||commitments|
|||substantive competition with the pharmaceutical||||
|||industrial businesses of Sinopharm Accord. IV.||||
|||the Company will not make use of its control||||
|||over Sinopharm Accord to damage the legal||||
|||interests of Sinopharm Accord and other||||
|||shareholders (especially minority shareholders).||||
|||The Letter of Undertaking takes effect since the||||
|||date of issue and will remain effective during the||||

||||||
|-|-|-|-|-|
||entire period when the Company has been the||||
||controlling shareholder or connected party of||||
||Sinopharm Accord. During the validity of the||||
||Undertaking, the Company will indemnify in||||
||time Sinopharm Accord from any loss which||||
||may arise out of the Company’s violation of the||||
||Undertaking.”||||
||Sinopharm Holding has undertaken in the Letter||||
||of Undertaking from Sinopharm Group Co. Ltd.||||
||on Standardization of the Connected||||
||Transactions with China National Accord||||
||Medicines Corporation Ltd. that, “I. during the||||
||period when the Company takes control over||||
||Sinopharm Accord, the Company and the||||
||companies or enterprises it directly or indirectly||||
||controls (hereinafter referred to as “Connected||||
||Party”) will strictly standardize the connected||||
||transactions with Sinopharm Accord and its||||
||controlled enterprises. II. for those connected||||
||transactions beyond avoidance or out of|||Controlling|
||reasonable causes, the Company and Connected|||shareholder is|
||Party will enter into standardized connected|||implement in|
||transaction agreement with Sinopharm Accord|||real earnest,|
||according to law. Sinopharm Accord will|||Sinopharm|
||perform approval procedure according to|||Accord will|
|Sinopharm|||Long-term||
||relevant laws, rules and regulations, other|2013-09-05||actively urged|
|Holding|||effective||
||standardization documents and its constitutional|||the controlling|
||documents, and fulfill its obligation to disclose|||shareholder and|
||information on connected transactions. III. for|||actual|
||those connected transactions beyond avoidance|||controller to|
||or out of reasonable causes, the Company and|||fulfill|
||Connected Party will determine the prices of|||commitments|
||connected transactions based on the prices of||||
||same or similar transactions entered into by||||
||independent third parties of no connection while||||
||following the principles of open, fair and just to||||
||ensure the fairness. IV. when the board or||||
||shareholders’ meeting of Sinopharm Accord||||
||votes on the relevant connected transactions||||
||involving the Company and other enterprises it||||
||controls, the Company will perform obligations||||
||including that necessary interested directors and||||
||shareholders shall be abstained from voting||||
||according to relevant regulations, and follow the||||

||||||
|-|-|-|-|-|
||legal procedures for approval of connected||||
||transactions and fulfill its information disclosure||||
||obligation. V. the Company guarantees to attend||||
||shareholders’ meeting according to the||||
||constitutional documents of Sinopharm Accord,||||
||exercise its corresponding rights and assumed its||||
||corresponding obligations in an equitable||||
||manner, not to take advantage of its standing as||||
||controlling shareholder to seek unjust interests,||||
||or to use connected transactions to illegally||||
||transfer capital or profit out of Sinopharm||||
||Accord, or to prejudice the legal interests of||||
||Sinopharm Accord and other shareholders||||
||(especially minority shareholders). VI. the Letter||||
||of Undertaking takes effect since the date of||||
||issue and will remain effective during the entire||||
||period when the Company has been the||||
||controlling shareholder or connected party of||||
||Sinopharm Accord. During the validity of the||||
||Undertaking, the Company will indemnify in||||
||time Sinopharm Accord from any loss that may||||
||arise out of the Company’s violation of the||||
||Undertaking.”||||
||”Sinopharm Group has undertaken in the Letter||||
||of Undertaking from China National||||
||Pharmaceutical Group Corporation on Avoiding||||
||the Peer Competition with China National||||
||Accord Medicines Corporation Ltd. that, “I. in|||Controlling|
||the coming five years, Sinopharm Group intends|||shareholder is|
||to take appropriate measures including|||implement in|
||replacement or acquisition of assets or equity|||real earnest,|
||reorganization to solve the problem of peer|||Sinopharm|
||competition between Weiqida and Sinopharm|||Accord will|
|Sinopharm|||Long-term||
||Accord. II. apart from the matters disclosed in|2013-10-16||actively urged|
|Group|||effective||
||the past and in the Letter of Undertaking, the|||the controlling|
||Company and the enterprises it wholly-owns,|||shareholder and|
||controls or has de facto control over (excluding|||actual|
||Sinopharm Accord and its controlled enterprises,|||controller to|
||similarly hereinafter) do not directly engage in,|||fulfill|
||participate in or carry out within the PRC any|||commitments|
||business or activities that would constitute||||
||substantive competition with the production and||||
||operation of Sinopharm Accord. The relative||||
||undertakings in respect of avoiding peer||||

||||||
|-|-|-|-|-|
||competition given by the Company in the past||||
||remain valid. III. the Company will not take||||
||advantage of its control over Sinopharm Accord||||
||to damage the legal interests of Sinopharm||||
||Accord and other shareholders (especially||||
||minority shareholders). IV. the Letter of||||
||Undertaking takes effect since the date of issue||||
||and will remain effective during the entire period||||
||when the Company has been the de facto||||
||controller or connected party of Sinopharm||||
||Accord.”||||
||Sinopharm Group has undertaken in the Letter of||||
||Undertaking from China National||||
||Pharmaceutical Group Corporation on||||
||Standardization of the Connected Transactions||||
||with China National Accord Medicines||||
||Corporation Ltd that, “I. during the period||||
||when the Company takes control over||||
||Sinopharm Accord, the Company and the||||
||companies or enterprises it directly or indirectly||||
||controls (hereinafter referred to as “Connected||||
||Party”) will strictly standardize the connected|||Controlling|
||transactions with Sinopharm Accord and its|||shareholder is|
||controlled enterprises. II. for those connected|||implement in|
||transactions beyond avoidance or out of|||real earnest,|
||reasonable causes, the Company and Connected|||Sinopharm|
||Party will enter into standardized connected|||Accord will|
|Sinopharm|||Long-term||
||transaction agreement with Sinopharm Accord|2013-09-22||actively urged|
|Group|||effective||
||according to law. Sinopharm Accord will|||the controlling|
||perform approval procedure according to|||shareholder and|
||relevant laws, rules and regulations, other|||actual|
||standardization documents and its constitutional|||controller to|
||documents, and fulfill its obligation to disclose|||fulfill|
||information on connected transactions. III. for|||commitments|
||those connected transactions beyond avoidance||||
||or out of reasonable causes, the Company and||||
||Connected Party will determine the prices of||||
||connected transactions based on the prices of||||
||same or similar transactions entered into by||||
||independent third parties of no connection while||||
||following the principles of open, fair and just to||||
||ensure the fairness. IV. when the board or||||
||shareholders’ meeting of Sinopharm Accord||||
||votes on the relevant connected transactions||||

||||
|-|-|-|
|||involving the Company and other enterprises it|
|||controls, the Company will perform obligations|
|||including that necessary interested directors and|
|||shareholders shall be abstained from voting|
|||according to relevant regulations, and follow the|
|||legal procedures for approval of connected|
|||transactions and fulfill its information disclosure|
|||obligation. V. the Company guarantees not to|
|||take advantage of its standing as actual controller|
|||to seek unjust interests, or to use connected|
|||transactions to illegally transfer capital or profit|
|||out of Sinopharm Accord, or to prejudice the|
|||legal interests of Sinopharm Accord and other|
|||shareholders (especially minority|
|||shareholders).”VI. the Letter of Undertaking|
|||takes effect since the date of issue and will|
|||remain effective during the entire period when|
|||the Company has been the actual controller or|
|||connected party of Sinopharm Accord.|
|Other|||
|commitments to|||
|minority|||
|shareholders of|||
|the Company|||
|Completed on|||
||Y||
|time or not (Y/N)|||

XI. Appointment and non-reappointment (dismissal) of CPA
Whether the semi-annual financial report had been audited
□Yes√ No
The semi-annual report was not audited.
XII. Penalty and rectification
□ Applicable√ Not applicable
No penalty or rectification in Period.
XIII. Risk disclosure of delisting with laws and rules violated
□Applicable√ Not applicable
The Company has no delisting risks with laws and rules violated in Period.
XIV. Other significant issues
√ Applicable□Not applicable
In reporting period, events with material assets reorganization concerned are push forward steadily, notices of the significatn issues are as:
||||
|-|-|-|
|Content|Date of disclosure|Index of disclosure|
|Notice of assets sale, issue shares, assets|2016-03-10|Juchao Website|
|acquisition by cash, raising supporting funds||(http://www.cninfo.com.cn)|
|and related transactions||Notice No.:2016-22|
|Plan of assets sale, issue shares, assets|2016-03-10|Juchao Website|
|acquisition by cash, raising supporting funds||(http://www.cninfo.com.cn)|
|and related transactions|||
|Plan of assets sale, issue shares, assets|2016-03-25|Juchao Website|
|acquisition by cash, raising supporting funds||(http://www.cninfo.com.cn)|
|and related transactions (Revised)|||
|Supplemental notice of assets sale, issue|2016-05-31|Juchao Website|
|shares, assets acquisition by cash, raising||(http://www.cninfo.com.cn)|
|supporting funds and related transactions||Notice No.:2016-53|
|Report of assets sale, issue shares, assets|2016-06-14|Juchao Website|
|acquisition by cash, raising supporting funds||(http://www.cninfo.com.cn)|
|and related transactions (draft) (revised)|||
|Report of assets sale, issue shares, assets|2016-06-27|Juchao Website|
|acquisition by cash, raising supporting funds||(http://www.cninfo.com.cn)|
|and related transactions (draft) (2nd revised)|||

XV. Issuance of corporate bonds
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and not yet due or due but not fully cashed on the approval date of annual report
No
Section VI. Changes in Shares and Particulars about Shareholders I.Changes in share capital
In share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Increase/Decrease in the Change (+, -)|||||After the Changes||
||Before the Changes|||||||||
||||||Public|||||
||||Newly-|||||||
|||Proporti||Bonus|reserve-||||Proportio|
||Amount||issued|||Others|Subtotal|Amount||
|||on||shares|converted||||n|
||||shares|||||||
||||||shares|||||
|I. Restricted shares|74,484,531|20.54%||||||74,484,531|20.54%|
|2. State-owned legal||||||||||
||74,482,543|20.54%||||||74,482,543|20.54%|
|person’s shares||||||||||
|3. Other domestic||||||||||
||1,988|0.00%||||||1,988|0.00%|
|shareholding||||||||||
|Domestic natural||||||||||
||1,988|0.00%||||||1,988|0.00%|
|person’s shares||||||||||
|II. Unrestricted shares|288,147,412|79.46%||||||288,147,412|79.46%|
|1. RMB ordinary shares|233,261,812|64.32%||||||233,261,812|64.32%|
|2. Domestically listed||||||||||
||54,885,600|15.14%||||||54,885,600|15.14%|
|foreign shares||||||||||
|III. Total shares|362,631,943|100.00%||||||362,631,943|100.00%|

 Reasons for share changed
□ Applicable√ Not applicable
Approval of share changed
□ Applicable√ Not applicable
Ownership transfer of share changed
□ Applicable√ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of Company in latest year and period
□ Applicable√ Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□ Applicable√ Not applicable
Explanation on change of theshareholder’s structure and total shares, the structure of assets and balance of the Company
□ Applicable√ Not applicable
II. Number of shareholders and share-holding
In Share
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||Total preference shareholders|||||
|Total common shareholders at||||||with voting rights recovered at|||||
|||13,521|||||||0||
|period-end||||||end of reporting period (if|||||
|||||||applicable) (see Note 8)|||||
|Particulars about shares held above 5% by common shareholders or top ten common shareholders|||||||||||
|||||Number|||||Number of share pledged/frozen||
||||||||Amount||||
|||||of||||Amount of|||
||||||||of||||
||||Proportion|common|Changes in|||un-|||
||Nature of||||||restricted||||
|Shareholders|||of shares|shares|reporting|||restricted|||
||shareholder||||||common||State of share|Amount|
||||held|held at|period|||common|||
||||||||shares||||
|||||period-||||shares held|||
||||||||held||||
|||||end|||||||
|SinopharmGroup Co., Ltd.|State-ownedcorporate||51.00%|184,942,291|0||74,482,543|110,459,748|||
|HTHK/CMGFSGUFP-CMGFIRST STATECHINAGROWTH FD|Overseas corporate||2.08%|7,548,119|||||||
|China SecuritiesFinanceCorporationLimited|State-ownedcorporate||1.73%|6,275,699|||||||
|NationalCouncil forSocial SecurityFund – 118|Domestic nonstate-ownedcorporate||1.39%|5,053,187|||||||
|VALUEPARTNERSCLASSICFUND|Overseas corporate||1.29%|4,664,607|||||||
|NationalCouncil forSocial SecurityFund – 116|Domestic nonstate-ownedcorporate||1.24%|4,483,871|||||||
|GUOTAIJUNANSECURITIES(|Overseas corporate||1.22%|4,408,269|||||||

|||||||
|-|-|-|-|-|-|
|HONGKONG)LIMITED||||||
|NationalCouncil forSocial SecurityFund – 106|Domestic nonstate-ownedcorporate|1.17%|4,252,251|||
|New China LifeInsurance Co.,Ltd. – Bonus –Individualbonuses - -018L-FH002Shen|Domestic nonstate-ownedcorporate|1.16%|4,199,772|||
|CITICSecurities Co.,Ltd.|Domestic nonstate-ownedcorporate|1.16%|4,198,728|||
|Explanation on associated||It is unknown that there exists associated relationship or belongs to the consistent actionist||||
|relationship among the aforesaid||among the above-mentioned shareholders regulated by the Management Measure of||||
|shareholders||Information Disclosure on Change of Shareholding for Listed Companies.||||
|Particular about top ten common shareholders with un-restrict shares held||||||
|||Amount of un-restrict common shares held at period-||Type of shares||
|Shareholders||||||
|||end||Type|Amount|
|Sinopharm Group Co., Ltd.||110,459,748||RMB ordinary||
||||||110,459,748|
|||||shares||
|HTHK/CMG FSGUFP-CMGFIRST STATE CHINA GROWTHFD||7,548,119||Domestically||
|||||listed foreign|7,548,119|
|||||shares||
|China Securities FinanceCorporation Limited||6,275,699||RMB ordinary||
||||||6,275,699|
|||||shares||
|National Council for Social SecurityFund – 118||5,053,187||RMB ordinary||
||||||5,053,187|
|||||shares||
|VALUE PARTNERS CLASSICFUND||4,664,607||Domestically||
|||||listed foreign|4,664,607|
|||||shares||
|National Council for Social SecurityFund – 116||4,483,871||RMB ordinary||
||||||4,483,871|
|||||shares||
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED||4,408,269||Domestically||
|||||listed foreign|4,408,269|
|||||shares||
|National Council for Social Security||4,252,251||RMB ordinary|4,252,251|

|||||
|-|-|-|-|
|Fund – 106||shares||
|New China Life Insurance Co., Ltd.– Bonus – Individual bonuses - -018L-FH002 Shen|4,199,772|||
|||RMB ordinary||
||||4,199,772|
|||shares||
|CITIC Securities Co., Ltd.|4,198,728|RMB ordinary||
||||4,198,728|
|||shares||
|Expiation on associated relationship||||
|or consistent actors within the top 10||||
||It is unknown that there exists associated relationship or belongs to the consistent actionist|||
|un-restrict common shareholders||||
||among the above-mentioned shareholders regulated by the Management Measure of|||
|and between top 10 un-restrict||||
||Information Disclosure on Change of Shareholding for Listed Companies.|||
|common shareholders and top 10||||
|common shareholders||||

Agree to buy-back dealings occurred in Period by top 10 common shareholders and top 10 common shareholders with shares restricted for sale
□Yes√No
No agree to buy-back dealings occurred in Period by top 10 common shareholders and top 10 common shareholders with shares restricted for sale
III. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable√ Not applicable
Changes of controlling shareholders had no change in reporting period.
Changes of actual controller in reporting period
□ Applicable√ Not applicable
Changes of actual controller in reporting period had no change in reporting period.
IV. Share holding increasing plan proposed or implemented in reporting period from shareholder of the Company and its concerted action person
□ Applicable√ Not applicable
As far as the Company know, there are no share holding increasing plan proposed or implemented in Period from shareholder of the Company and its concerted action person.
Section VII. Preferred Stock
□ Applicable√ Not applicable
The Company has no preferred stock in reporting period.
Section VIII. Directors, Supervisors and Senior Executives I. Changes of shares held by directors, supervisors and senior executives
□ Applicable√ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report 2015.
II. Resignation and dismissal of directors, supervisors and senior executives
√ Applicable□ Not applicable
||||||
|-|-|-|-|-|
|Name|Title|Type|Date|Reasons|
|||||Mr. Yan Zhigang resign from the director and specialized|
|||Appointment and||committee, Mr. Yan is no longer in post of GM of the|
|Yan Zhigang|Deputy GM||2016-03-09||
|||removal||Company; BOD agrees to appoint Mr. Yan to be deputy|
|||||GM of the Company|
|||||According to the work arrangement, BOD agrees to|
|||||appoint Mr. Lin Zhaoxiong to be GM (legal|
|||||representative) of the Company; being recommended by|
|Lin Zhaoxiong|GM|Appointed|2016-03-09||
|||||controlling shareholder Sinopharm Group Co., Ltd, Mr.|
|||||Lin Zhaoxiong was nominated as append candidate of|
|||||directors|
|||||Being selected by the 2nd extraordinary general meeting|
|Lin Zhaoxiong|Director|Be elected|2016-04-06|of 2016, Mr. Lin was elected as the director of 7th BOD|
|||||of the Company|
|||||Mr. Yan Zhigang resigned deputy GM of the Company|
|Yan Zhigang|N/A|Dismissed|2016-05-23||
|||||due to personnel reasons|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 Section IX Financial Reporting
I.Report of the Auditors
Consolidated financial statements for the six months ended 30 June 2016haven’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 2016
Unit: RMB
||||
|-|-|-|
|Item|30 June 2016|31 December 2015|
|Current assets|||
||2,030,956,448.63|1,570,706,970.51|
|Cash at bank and on hand|||
||1,144,758,273.13|820,125,807.67|
|Notes receivable|||
||7,021,479,531.77|6,153,830,882.75|
|Accounts receivable|||
||57,891,873.15|72,041,261.84|
|Advances to suppliers|||
||306,885.56|0.00|
|Interest receivable|||
|Other receivables|146,537,262.42|38,175,884.46|
||2,264,788,110.40|2,533,160,758.28|
|Inventories|||
||0.00|2,456,876.83|
|Divided into holdingassets for sale|||
||5,272,545.09|19,456,915.58|
|Other current assets|||
|Total current assets|12,671,990,930.15|11,209,955,357.92|
|Non-current assets|||
||251,155,234.93|180,831,714.55|
|Long-term equity investments|||
||141,861,582.35|145,102,318.77|
|Investment properties|||
||978,907,375.66|1,079,412,437.53|
|Fixed assets|||
||124,167,606.84|176,096,786.58|
|Construction in progress|||
||118,532,870.38|137,720,156.55|
|Intangible assets|||
||-|5,619,315.47|
|Development costs|||
||51,359,439.83|79,378,833.15|
|Goodwill|||
||36,968,640.81|40,464,563.93|
|Long-term prepaid expenses|||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
||45,088,462.57|88,210,062.44|
|Deferred income tax assets|||
||65,554,433.54|75,558,188.42|
|Other non-current assets|||
|Total non-current assets|1,813,595,646.91|2,008,394,377.39|
|TOTAL ASSETS|14,485,586,577.06|13,218,349,735.31|
|Current liabilities|||
|Short-term borrowings|1,310,291,209.80|1,212,959,267.74|
|Notes payable|1,460,935,278.16|1,301,594,416.81|
|Accounts payable|4,652,842,317.77|4,036,910,159.14|
|Advances from customers|27,128,326.37|56,943,167.40|
|Employee benefits payable|112,763,035.02|164,315,934.17|
|Taxes payable|92,826,382.33|72,863,480.20|
|Interests payable|5,278,580.43|6,544,067.19|
|Other payables|545,621,413.51|468,450,153.85|
|Current portion of long-term borrowings|38,737,578.41|5,444,858.84|
|Total current liabilities|8,246,424,121.80|7,326,025,505.34|
|Non-current liabilities|||
|Long-term borrowings||72,495,172.30|
|Long-term payables|10,802,918.37|8,394,559.05|
|Long-term employee benefits payable|2,582,145.00|2,499,100.00|
|Payables for specific projects|1,287,000.00|1,287,000.00|
|Deferred Income|154,708,505.68|173,099,023.98|
|Deferred income tax liabilities|19,569,326.75|22,647,074.06|
|Other non-current liabilities|45,427,343.31|45,427,343.31|
|Total non-current liabilities|234,377,239.11|325,849,272.70|
|Total liabilities|8,480,801,360.91|7,651,874,778.04|
|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|3,478,883,747.67|3,045,551,246.71|
|Total equity attributable to equity holders of the Company|5,886,726,195.51|5,453,393,694.55|
|Minority interest|118,059,020.64|113,081,262.72|
|Total owners' equity|6,004,785,216.15|5,566,474,957.27|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
|TOTAL LIABILITIES AND OWNERS’ EQUITY|14,485,586,577.06|13,218,349,735.31|

 Legal Principal in charge Head of accounting representative:林兆雄 of accounting :魏平孝 department:王颖
2. Company balance sheets
Unit: RMB
||||
|-|-|-|
|Item|30 June 2016|31 December 2015|
|Current assets|||
||837,997,527.68|429,437,078.35|
|Cash at bank and on hand|||
||83,563,244.75|43,896,287.87|
|Notes receivable|||
||478,787,955.99|381,093,808.53|
|Accounts receivable|||
||3,759,920.60|5,452,046.55|
|Advances to suppliers|||
|Interest receivable|1,963,872.60|2,053,659.27|
|Other receivables|1,608,311,825.67|1,613,862,656.17|
|Inventory|161,602,602.34|182,659,794.51|
|Other current assets|39,482.38|39,482.38|
|Total current assets|3,176,026,432.01|2,658,494,813.63|
|Non-current assets|||
||2,645,916,568.69|2,795,231,208.93|
|Long-term equity investments|||
||3,975,798.11|4,379,786.84|
|Investment properties|||
||503,597,111.82|391,937,393.50|
|Fixed assets|||
||67,610,174.55|129,851,067.29|
|Construction in progress|||
||35,140,480.78|35,678,610.77|
|Intangible assets|||
||6,768,161.84|7,417,691.74|
|Long-term prepaid expenses|||
||2,890,619.87|2,906,189.80|
|Deferred income tax assets|||
||20,944,009.06|34,856,698.50|
|Other non-current assets|||
|Total non-current assets|3,286,842,924.72|3,402,258,647.37|
|TOTAL ASSETS|6,462,869,356.73|6,060,753,461.00|
|Current liabilities|||
|Short-term borrowings|100,000,000.00|106,000,000.00|
|Notes payable|299,808,339.81|285,394,838.22|
|Accounts payable|370,862,409.58|292,794,309.39|
|Advances from customers|692,395.14|5,841,769.74|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
|Employee benefits payable|16,604,815.29|22,441,125.24|
|Taxes payable|4,112,511.51|10,770,924.28|
|Interests payable|34,365.00|354,492.17|
|Other payables|558,894,798.97|680,741,770.79|
|Current portion of long-term borrowings|31,600,000.00||
|Total current liabilities|1,382,609,635.30|1,404,339,229.83|
|Non-current liabilities|||
|Long-term borrowings||72,495,172.30|
|Long-term employee benefits payable|40,000.00|72,000.00|
|Payables for specific projects|800,000.00|800,000.00|
|Deferred income|4,824,999.97|5,074,999.99|
|Deferred income tax liabilities|3,773,319.00|3,773,319.00|
|Total non-current liabilities|9,438,318.97|82,215,491.29|
|Total liabilities|1,392,047,954.27|1,486,554,721.12|
|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|2,657,180,566.26|2,160,557,903.68|
|Total owners' equity|5,070,821,402.46|4,574,198,739.88|
|TOTAL LIABILITIES AND OWNERS’ EQUITY|6,462,869,356.73|6,060,753,461.00|

 3. Consolidated and company income statements
Unit: RMB
||||
|-|-|-|
|Item|For the six months ended 30 June 2016|For the six months ended 30 June 2015|
|I.Sales|14,089,052,871.88|12,813,803,166.77|
|Including: Sales|14,089,052,871.88|12,813,803,166.77|
|II.Cost of Sales|13,585,116,509.33|12,359,627,721.82|
|Including: Cost of Sales|13,040,493,792.81|11,801,661,040.42|
|Taxes and surcharges|27,344,651.91|26,443,689.75|
|Selling and distribution expenses|256,587,355.57|262,074,106.01|
|Administration expenses|223,764,647.62|203,589,373.35|
|Financial expenses – net|31,429,057.49|58,639,672.40|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
|Asset impairment losses|5,497,003.93|7,219,839.89|
|Add: Investment income|149,545,314.64|28,274,061.44|
|Including: Share of profits of associates|27,791,132.38|28,274,061.44|
|III. Operating profit|653,481,677.19|482,449,506.39|
|Add: Non-operating income|12,637,511.19|12,982,289.46|
|Including: Gain on disposal of|||
||1,653,712.19|10,297.36|
|non-current assets|||
|Less: Non-operating expenses|1,290,244.44|440,680.38|
|Including: Loss on disposal of|||
||528,810.92|225,404.59|
|non-current assets|||
|IV. Total profit|664,828,943.94|494,991,115.47|
|Less: Income taxes expenses|110,456,898.44|95,348,854.50|
|V. Net profit|554,372,045.50|399,642,260.97|
|Attributable to equity holders of the|||
||542,122,083.86|387,319,252.33|
|Company|||
|Minority interest|12,249,961.64|12,323,008.64|
|VI. Other comprehensive income|||
|VII. Total comprehensice income|554,372,045.50|399,642,260.97|
|Attributable to equity holders of the|||
||542,122,083.86|387,319,252.33|
|Company|||
|Minority interest|12,249,961.64|12,323,008.64|
|VIII. Earnings per share|||
|(1) Basic earnings per share|1.495|1.068|
|(2) Diluted earnings per share|1.495|1.068|

 Legal Principal in charge Head of accounting
representative:林兆雄 of accounting :魏平孝 department:王颖
4. Company income statements
Unit: RMB
||||
|-|-|-|
|Item|For the six months ended 30 June 2016|For the six months ended 30 June 2015|
|I.Sales|1,552,341,588.24|1,409,915,735.50|
|Less: Cost of sales|1,493,968,402.10|1,350,096,101.89|
|Taxes and surcharges|2,731,916.50|2,742,214.76|
|Sellingand distribution expenses|21,954,941.85|22,711,056.43|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
|Administration expenses|27,037,698.40|22,137,614.50|
|Financial expenses – net|(30,420,731.23)|(32,319,843.63)|
|Asset impairment losses|162,410.56|293,938.78|
|Add: Investment income|619,060,351.75|542,787,180.98|
|Including: Share of profits of associates|24,377,006.76|28,274,061.44|
|II. Operating profit|655,967,301.81|587,041,833.75|
||2,235,966.07|97,780.77|
|Add: Non-operating income|||
|Including: Gain on disposal of non-current|0.00|0.00|
|assets|||
||253,886.24|0.02|
|Less: Non-operating expenses|||
|Including: Loss on disposal of non-current|253,886.24|0.00|
|assets|||
|III. Total profit|657,949,381.64|587,139,614.50|
|Less: Income taxes expenses|6,795,489.16|11,533,143.16|
|IV. Net profit|651,153,892.48|575,606,471.34|
|V. Other comprehensive income|0.00|0.00|
|VI. Total comprehensice income|651,153,892.48|575,606,471.34|
|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 2015|
||2016||
|I. Cash flows from operating activities:|||
|Cash received from sales of goods or|||
||14,255,134,808.77|13,538,599,427.81|
|rendering of services|||
|Refund of taxes and surcharges|12,237,366.30|1,412,100.00|
|Cash received relating to|||
||44,218,297.00|40,061,810.25|
|other operating activities|||
|Sub-total of cash inflows|14,311,590,472.07|13,580,073,338.06|
|Cash paid for goods and services|12,977,413,941.55|12,323,623,570.32|
|Cash paid to and on behalf of employees|361,322,009.36|346,227,791.38|
|Payments of taxes and surcharges|321,864,315.78|297,175,090.54|
|Cash paid relating to other|158,356,143.15|164,807,307.09|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
|operating activities|||
|Sub-total of cash outflows|13,818,956,409.84|13,131,833,759.33|
|Net cash flows from operating activities|492,634,062.23|448,239,578.73|
|II. Cash flows from investing activities|||
|Cash received from returns on investments|36,639,004.96|0.00|
|Net cash received from disposal of|||
|fixed assets, intangible assets and|2,237,089.18|4,695,691.53|
|other long-term assets|||
|Cash received from disposal of||0.00|
|subsidiaries and other business|128,845,881.13||
|units|||
|Cash received relating to other||0.00|
||87,200,415.00||
|investing activities|||
|Sub-total of cash inflows|254,922,390.27|4,695,691.53|
|Cash paid to acquire fixed assets,|||
|intangible assets and other|71,766,169.34|84,244,511.59|
|long-term assets|||
|Net cash paid to acquire subsidiaries|||
||0.00|252,000.00|
|and other business units|||
|Cash paid relating to other|||
||25,690,544.72|0.00|
|investing activities|||
|Sub-total of cash outflows|97,456,714.06|84,496,511.59|
|Net cash flows from investing|||
||157,465,676.21|(79,800,820.06)|
|activities|||
|III. Cash flows from financing|||
|activities|||
|Cash received from investments|0.00|1,470,000.00|
|Including: Cash receivables for|0.00||
|dividends or profit to minority||1,470,000.00|
|shareholders of subsidiaries|||
|Cash received from borrowings|59,124,387.49|99,576,626.12|
|Cash received relating to other|||
||112,788,435.41|0.00|
|financing activities|||
|Sub-total of cash inflows|171,912,822.90|101,046,626.12|
|Cash repayments of borrowings|202,495,172.30|14,333,727.61|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
|Cash payments for interest expenses|||
|and distribution of dividends or|154,304,108.98|127,751,125.57|
|profits|||
|Including: Cash payments for|||
|dividends or profit to minority|7,272,203.72|1,032,000.00|
|shareholders of subsidiaries|||
|Cash payments relating to other|||
||3,483,135.79|24,066,161.02|
|financing activities|||
|Sub-total of cash outflows|360,282,417.07|166,151,014.20|
|Net cash flows from financing|(188,369,594.17)|(65,104,388.08)|
|activities|||
|IV. Effect of foreign exchange rate|||
||0.00|9,250.42|
|changes on cash|||
||461,730,144.27|303,343,621.01|
|V. Net increase in cash|||
||1,569,226,304.36|854,212,006.84|
|Add: Cash at beginning of period|||
||2,030,956,448.63|1,157,555,627.85|
|VI. Cash at end of period|||

6. Company cash flows statements
Unit: RMB
||||
|-|-|-|
|Item|For the six months ended 30 June 2016|For the six months ended 30 June 2015|
|I. Cash flows from operating|||
|activities:|||
|Cash received from sales of goods|||
|or|1,576,646,019.42|1,506,941,667.17|
|rendering of services|||
|Cash received relating to other|||
||22,616,621.43|6,475,294.32|
|operating activities|||
|Sub-total of cash inflows|1,599,262,640.85|1,513,416,961.49|
|Cash paid for goods and services|1,475,945,895.68|1,463,172,714.22|
|Cash paid to and on behalf of|||
||35,409,274.67|30,095,211.91|
|employees|||
|Payments of taxes and surcharges|27,421,192.97|24,640,593.24|
|Cash paid relating to other|||
||11,418,997.25|17,001,372.02|
|operating activities|||
|Sub-total of cash outflows|1,550,195,360.57|1,534,909,891.39|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
|Net cash flows from operating|||
||49,067,280.28|(21,492,929.90)|
|activities|||
|II. Cash flows from investing activities|||
|Cash received from returns on|||
||163,130,121.71|165,748,512.00|
|investments|||
|Net cash received from disposal of|0.00|0.00|
|fixed assets, intangible assets|||
|and other long-term assets|||
|Cash received from disposal of|||
|subsidiaries and other business|156,111,000.00|0.00|
|units|||
|Cash received relating to other|||
||1,172,470,415.00|2,144,319,315.47|
|investing activities|||
|Sub-total of cash inflows|1,491,711,536.71|2,310,067,827.47|
|Cash paid to acquire fixed assets,|||
|intangible assets and other|26,667,196.89|65,650,551.69|
|long-term assets|||
|Net cash paid to acquire subsidiaries|||
||1,267,000.00|252,000.00|
|and other business units|||
|Cash paid relating to other investing|||
||1,188,252,457.00|2,382,714,617.00|
|activities|||
|Sub-total of cash outflows|1,216,186,653.89|2,448,617,168.69|
|Net cash flows from investing|||
||275,524,882.82|(138,549,341.22)|
|activities|||
|III. Cash flows from financing|||
|activities|||
|Cash received from investments|||
|Cash received from borrowings|80,100,000.00|64,933,328.85|
|Cash received relating to other|||
||3,791,553,620.54|183,994,821.13|
|Financing activities|||
|Sub-total of cash inflows|3,871,653,620.54|248,928,149.98|
|Cash repayments of borrowings|190,995,172.30|10,000,000.00|
|Cash payments for interest expenses|||
|and distribution of dividends or|113,348,821.62|79,224,081.04|
|profits|||
|Cash payments relating to other|3,483,341,340.39|24,000,000.00|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
|financing activities|||
|Sub-total of cash outflows|3,787,685,334.31|113,224,081.04|
|Net cash flows from financing|83,968,286.23|135,704,068.94|
|activities|||
|IV. Effect of foreign exchange rate|0.00|0.00|
|changes on cash|||
|V. Net increase/(decrease) in cash|408,560,449.33|(24,338,202.18)|
||429,437,078.35|257,173,314.81|
|Add: Cash at beginning of period|||
||837,997,527.68|232,835,112.63|
|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 2016 7. Consolidated statement of changes inowners’ equity
For the six months ended 30 June 2016
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||For the six months ended 30 June 2016||||||
|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 2015|362,631,943.00|1,863,894,533.34|181,315,971.50|3,045,551,246.71|113,081,262.72|5,566,474,957.27|
|2. Balance at 1 January 2016|362,631,943.00|1,863,894,533.34|181,315,971.50|3,045,551,246.71|113,081,262.72|5,566,474,957.27|
|3. Movements for this period|0.00|0.00|0.00|433,332,500.96|4,977,757.92|438,310,258.88|
|(1)Comprehensive income|0.00|0.00|0.00|542,122,083.86|12,249,961.64|554,372,045.50|
|(2)Capital contribution and|0.00|0.00|0.00|0.00|0.00|0.00|
|withdrawals by owners|||||||
|Capital contribution by owners|0.00|0.00|0.00|0.00|0.00|0.00|
|(3)Profit distribution|0.00|0.00|0.00|(108,789,582.90)|(7,272,203.72)|(116,061,786.62)|
|Profit distribution to shareholders (or|0.00|0.00|0.00||||
|||||(108,789,582.90)|(7,272,203.72)|(116,061,786.62)|
|equity owners)|||||||
|4. Balance at 30 June 2016|362,631,943.00|1,863,894,533.34|181,315,971.50|3,478,883,747.67|118,059,020.64|6,004,785,216.15|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 For the year ended 31 December 2015
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||For the year ended 31 December 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|688,785,872.46|26,473,648.16|715,259,520.62|
|(1)Comprehensive income|0.00|0.00|0.00|761,312,261.06|26,035,648.16|787,347,909.22|
|(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|
|Others|0.00|0.00|0.00|0.00|0.00|0.00|
|(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 31 December 2015|362,631,943.00|1,863,894,533.34|181,315,971.50|3,045,551,246.71|113,081,262.72|5,566,474,957.27|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 8. Company statement of changes inowners’ equity
For the six months ended 30 June 2016
Unit: RMB
|||||||
|-|-|-|-|-|-|
||For the six months ended 30 June 2016|||||
|Items|||||Total share holders’|
||Paid-in capital|Capital surplus|Surplus reserves|Undistributed profits||
||||||equity|
|1. Balance at 31 December 2015|362,631,943.00|1,869,692,921.70|181,315,971.50|2,160,557,903.68|4,574,198,739.88|
|Others||||(45,741,647.00)|(45,741,647.00)|
|2. Balance at 1 January 2016|362,631,943.00|1,869,692,921.70|181,315,971.50|2,114,816,256.68|4,528,457,092.88|
|3. Movements for this period|-|-|-|542,364,309.58|542,364,309.58|
|(1)Comprehensive income|-|-|-|651,153,892.48|651,153,892.48|
|(2)Profit distribution|-|-|-|(108,789,582.90)|(108,789,582.90)|
|Profit distribution to shareholders|-|-|-|||
|||||(108,789,582.90)|(108,789,582.90)|
|(or equity owners)||||||
|4. Balance at 30 June 2016|362,631,943.00|1,869,692,921.70|181,315,971.50|2,657,180,566.26|5,070,821,402.46|

For the year ended 31 December 2015
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 Unit: RMB
|||||||
|-|-|-|-|-|-|
||For the year ended 31 December 2015|||||
|Item|||||Total share holders’|
||Paid-in capital|Capital surplus|Surplus reserves|Undistributed profits||
||||||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|565,719,734.29|565,719,734.29|
|(1)Comprehensive income|0.00|0.00|0.00|638,246,122.89|638,246,122.89|
|(2)Capital contribution and||||||
||0.00|0.00|0.00|0.00|0.00|
|withdrawals by owners||||||
|Capital contribution by owners|0.00|0.00|0.00|0.00|0.00|
|Others|0.00|0.00|0.00|0.00|0.00|
|(3)Profit distribution|0.00|0.00|0.00|(72,526,388.60)|(72,526,388.60)|
|Appropriation to surplus reserves|0.00|0.00|0.00|0.00|0.00|
|Profit distribution to shareholders||||||
||0.00|0.00|0.00|(72,526,388.60)|(72,526,388.60)|
|(or equity owners)||||||
|4. Balance at 31 December 2015|362,631,943.00|1,869,692,921.70|181,315,971.50|2,160,557,903.68|4,574,198,739.88|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 III.Profile of company
（1）Historical development and basic information
China National Accord Medicines Co., Ltd. (hereinafter referred to asthe “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 RMB362,631,943. up to 30 June 2016. 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 shareholdings. 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 30June, 2016, the total share capital was 362,631,943.
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 the long term. The registered capital of the Company is RMB362, 631,943. The legal representative of the Company is Lin Zhaoxiong.
The approved scope of business of the Company and its subsidiaries (together “the Group”) includes wholesale of traditional Chinese medicine preparations, bulk pharmaceutical drugs,
chemicalpreparations, bulk antibiotic drugs, antibiotic preparations, biochemical drugs, biological products (including vaccines and in vitro diagnostic reagents), psychotropic drugs and preparations,
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 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 the State limits or prohibit the company.
(2) Change in consolidation scope and the significant reorganization plan in progress for the current year
Subsidiaries consolidated in the statement this year are listed in Note IX.
On 31 December 2015, with the approval of the Board, the Company publicly list for sale of the holding67% of the total equity of Zhijun(Suzhou). Up to the report date, the Company reached agreement with an independent third party, and the price is RMB157.8 million, relative registration has completed. On 9 March 2016, the Board of the Company approved the reorganization plan regarding the commercial and manufacturing business with related parties, including:
1) The company purchases100% of the equity of Sinopharm Holding Guoda Drugstore Co., Ltd(“Guoda Drugstore”), Foshan Nanhai Medicine Group Co., Ltd.(“Foshan Nanhai”), Guangdong Dongfang Uptodate& Special Medicines Co., Ltd(“Guangdong Dongfang”) and51% of the equity of Guangdong Nanfang Foreign Trade Co., Ltd(“Nanfang Trade”) from the Parent company Sinopharm Holding and the related party China National Pharmaceutical Foreign Trade Co., Ltd(“Sinopharm Trade”) respectively, with consideration of non-public issuance of A-share. Meanwhile, the Company purchases49% of the equity Nanfang Trade from 11 natural person minority shareholders with cash.
2) The company sells Pingshan Pharmaceutical Research& Development Manufacturing Base and51% of the equity 3 subsidiaries including Sinopharm Group Zhijun(Shenzhen) Pharmaceutical Co.,
Ltd.(“Zhijun Medicine”), Zhijun Pharmaceutical Trade Co., Ltd.(“Zhijun Trade”), and Sinopharm Group Zhijun(Shenzhen) Pingshan Pharmaceutical Co., Ltd.(“Pingshan Medicine”) and subscribe the new shares of Shanghai Shyndec Pharmaceutical Co.,Ltd..
（3）These financial statements were authorised for issue by the board of directors of the Company on 15August,2016.
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 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.
3.Accounting year
TheCompany’s accounting year starts on 1 January and ends on 31 December.
4.Functional currency
The functional currency is Renminbi (RMB).
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 2016 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 2016 and the operating results, cash flows and other 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.
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 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. 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
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 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. Cashand 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.
8. Financial Instruments
(a)Financial assets
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 (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 value through profit or loss and other financial liabilities. The financial liabilities of the Group mainly comprise other financial liabilities, including payables and borrowings
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 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.||

Provisions for impairment of the receivables which have a similar risk level are analysed below:
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
||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.
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 (e) Amortisation methods of low value consumables and packaging materials
Turnover materials include low value consumables and packaging materials, which are expensed when issued.
11.Assets classified as held for sale
Non-current assets or disposal group satisfying the following conditions will be classified as assets held for sale: (i)The non-current assets or disposal group are instantly ready for sale under the custom terms. (ii)The resolution regarding the disposal of non-current assets or disposal group has been appropriately approved. (iii)The company has signed an irrevocable agreement. (iv)The disposal will be accomplished within 1 year. Non current assets which meet the conditions of Assets classified as held for sale, excluding financial assets, investment properties measured by fair value method, and deferred income tax assets, could be appraised as the lower number between book value and fair value minus disposal cost. The difference between the fair value minus disposal cost and the book value, should be recognized as asset impairment loss.
Asset and liability among the non-current assets or disposal group that are classified as Assets classified as held for sale, should be classified as current asset and current liability respectively, and should be individually presented on the balance sheet.
12. 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.
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 (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 inowners’ 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.
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 13. 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|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.|||

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 .
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 14. 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|||||
|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|||||

(3)Recognition basis and measurement method for financing leased fixed assets
Financing leases are leases with the whole risks and rewards related to the asset substantially transferred. Financing leased fixed assets are recognized with the smaller value among the fair value and minimum lease payments. Difference between the booking value and the minimum lease payments should be recognized as unrecognized financing charges
Financing leased fixed assets adopt depreciation policies aligned with those fixed assets owned by the
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 company. For those leased assets that can ascertain the ownership of the assets by the expiration date, the assets should be depreciated within estimated useful lives. Otherwise, the assets should be depreciated within the shorter period among the leasing period and estimated useful lives.
15.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.
16. 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. 17. Intangible assets
(1)Valuation method.Useful life.Impairment test
Intangible assets include land use rights, computer softwares, technology patents,trademarks and
distribution network, which initially recognised at cost. Intangible assets contributed by state-owned
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 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 2016 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.
18. 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
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 subsequent periods.
19. 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.
20. 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
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 group cannot unilaterally withdraw the labor relation plan or recognize the cost relating to recombinant involving the payment of termination benefits.
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.
21. 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.
22. 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
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 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 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. 23. Government grants
(1)Judging basis and accounting treatments of Related to assetsGovernment 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
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 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.
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.
24. 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.
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 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. 25.Leases
Financing leases are leases with the whole risks and rewards related to the asset substantially transferred. The other kinds of leases are nominated operating leases.
Lease income under an operating lease are recognized on a straight-line basis over the period of the lease. (a) Operating leases
Lease payments under an operating lease are recognized on a straight-line basis over the period of the lease, and are either capitalized as part of the cost of related assets or charged as an expense for the current period.
(b)Financing leases
Financing leased fixed assets are recognized with the smaller value among the fair value and present value of the minimum lease payments. Difference between the booking value and the minimum lease payments should be recognized as unrecognized financing charges, to be amortized within the leasing period. The minimum lease payments net off the unrecognized financing charges should be classified as long-term payables.
26. Othersignificant 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
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 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 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
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 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. 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%.5%.6%.11%.13% or 17%|
||tax rate less deductible VAT input of||
||current period)||
|Business tax|Rental income, interest income and etc.|5%|
|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 disclosuredas below:
|||
|-|-|
|Name of Companies|Income Tax Rate|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||
|-|-|
|Shenzhen Zhijun Pharmaceutical Co., Ltd.|15%|
|Sinopharm Medicine Holding Guangxi Co., Ltd.|15%|
|Sinopharm Holding Yulin Co., Ltd.|15%|
|Sinopharm Holding Wuzhou Co., Ltd.|15%|
|Sinopharm Holding Guilin Co., Ltd|15%|
|Sinopharm Holding Baise Co., Ltd|15%|
|Sinopharm Holding Guigang Co., Ltd|15%|
|Sinopharm Holding Beihai Co., Ltd|15%|
|Sinopharm Holding Guangzhou Medical Management Co., Ltd|10%|
|Sinopharm Holding Liuzhou Co., Ltd|15%|

2. Tax preferences
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. Under the relevant regulations of article 28 of the Corporate Income Tax Law, the applicable tax rates for Zhijun Medicine in year 2016 are15% (2015:15%).
In 2014, the subdidiarySinopharm 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 2016, Guangxi Logistics recognized its income from compensation of property as other operating income caused theenterprise’s main operating income accounts for less than70% of its total income. Hence, Guangxi logistics is no longer qualified for preferential tax rate thereby25% income tax rate(Year 2015:15% preferential tax rate).
From May to December of 2015, subsidiaries in Guangxi Province, including Sinopharm Holding Guangxi Co., Ltd((“Sinopharm Guangxi”), Sinopharm Holding Liuzhou Co., Ltd (“Sinopharm Liuzhou”) , Sinopharm Holding Beihai Co., Ltd (“Sinopharm Beihai”), Sinopharm Holding Guilin Co., Ltd (“Sinopharm Guilin”), Sinopharm Holding Guigang Co., Ltd (“Sinopharm Guigang”), Sinopharm Holding Yulin Co., Ltd (“Sinopharm Yulin”), Sinopharm Holding Baise Co., Ltd (“Sinopharm Baise”)and Sinopharm Holding Wuzhou Co., Ltd (“Sinopharm Wuzhou”)were all approved by the Guangxi Local Tax Bureau to enjoy a tax discount applicable to corporations in the region of Western Development. Applicable period for Sinopharm Guangxi, Sinopharm Liuzhou and Sinopharm Beihai is 1 January 2014 to 31 December 2020, and the other 5 subsidiaries is 1 January 2015 to 31 December 2020.
Guangzhou Medical is regarded as Small Enterprise. The company enjoys a50% tax discount and pays
tax at a20% rate.
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 VII.Notes to the consolidated financial statements
1. Cash at bank and on hand
Unit:RMB
||||
|-|-|-|
|Items|30 June 2016|31 December 2015|
|Cash on hand|99,360.45|109,096.17|
|Cash at bank|2,030,857,088.18|1,569,117,208.19|
|Other cash balances|0.00|1,480,666.15|
|Total|2,030,956,448.63|1,570,706,970.51|

 At 30 June 2016,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 2016|31 December 2015|
|Bank acceptance notes|599,798,143.56|478,404,877.95|
|Trade acceptance notes|544,960,129.57|341,720,929.72|
|Total|1,144,758,273.13|820,125,807.67|

 (2)As at the end of this period,there was no pledged notes receivable.
(3)As at the end of this period,the endorsed or the discounted undue notes receivables of the group Unit:RMB
||||
|-|-|-|
||Recognition terminated at the end of|Recognition not terminated at the end of|
|Items|||
||this period|this period|
|Bank acceptance notes|1,386,385,533.82|0.00|
|Trade acceptance notes|0.00|186,919,596.06|
|Total|1,386,385,533.82|186,919,596.06|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 3. Accounts receivable
(1)The accounts receivable and related provision for bad debts
Unit:RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||30 June 2016|||||31 December 2015|||||
||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||balance|value||balance||balance||
|||||||||||value|
|||balance|||||||||
|individually|||||||||||
|significant are|||||||||||
||18,236,08||12,130,5||6,105,573|26,080,8||26,080,87|||
|subject to separate||0.26%||66.52%|||0.42%||100.00%|0.00|
||7.35||13.67||.68|73.29||3.29|||
|impairment|||||||||||
|assessment|||||||||||
|receivable accounts|||||||||||
||6,999,780,||783,515.||6,998,997|6,143,70||634,109.8||6,143,07|
|within similar credit||99.33%||0.01%|||99.19%||0.01%||
||716.93||05||,201.88|7,981.16||7||3,871.29|
|risk group|||||||||||
|individually not|||||||||||
|significant but|||||||||||
||29,114,26||12,737,5||16,376,75|24,043,5||13,286,51||10,757,0|
|individually||0.41%||43.75%|||0.39%||55.26%||
||1.98||05.77||6.21|27.79||6.33||11.46|
|evaluated for|||||||||||
|impairment|||||||||||
||7,047,131,|100.00|25,651,5||7,021,479,531.77|6,193,83||40,001,49||6,153,830,882.75|
|Total||||0.36%|||100.00%||0.65%||
||066.26|%|34.49|||2,382.24||9.49|||

 As at the end of this period, impairment provision for accounts receivable individually significant are analysed:
Unit:RMB
||||||
|-|-|-|-|-|
|Accounts|30 June 2016||||
|receivable(by currency|||||
||Accounts receivable|Bad debt provision|Rate|Assessment for impairment|
|unit)|||||
|Qinzhou Second|||||
||6,672,589.06|567,015.38|8.50%|Uncertainty in recoverability|
|People's Hospital|||||
|Hubei Xianning||||Disputed receivable with|
|Pharmaceutical Co.,|11,563,498.29|11,563,498.29|100.00%|higher risk of recoverability|
|Ltd.||||which has filed a lawsuit|
|Total|18,236,087.35|12,130,513.67|--|--|

Provisions for impairment of the receivables which have a similar risk level:
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 Unit:RMB
|||||
|-|-|-|-|
||30 June 2016|||
|Aging||||
||Accounts receivable|Bad debt provision|Rate|
|Within 1 year|6,984,425,067.28|0.00|0.00%|
|1 to 2 years|15,040,998.23|752,049.91|5.00%|
|2 to 3 years|314,651.42|31,465.14|10.00%|
|Total|6,999,780,716.93|783,515.05|0.01%|

 (2)Recovered or reversed bad debt amount, and Bad debt provision in this period
Bad debt provision in this year is RMB1,468,100.34. Recovered or reversed bad debt amount adds up to RMB1,300,690.34.
||||
|-|-|-|
|Name of company|Recovered or reversed amount|Way of recovery|
|Hainan XinShiTong Pharmaceutical|||
||700,440.00|Amount received|
|Co., Ltd|||
|Zengcheng Zhongxin Hospital|126,283.08|Amount received|
|Total|826,723.08|--|

(3) Accounts receivable written off in current year are analysed as below:
Unit:RMB
||||
|-|-|-|
|Name of company|Recovered or reversed amount|Way of recovery|
|Guangdong Liyuan||Disputed receivable with higher risk of|
||14,517,375.00||
|Pharmaceutical Co., Ltd.||recoverability which has filed a lawsuit|
|Total|14,517,375.00|--|

(4)As at 30 June 2016, the top five accounts receivable by customer are summariesd as below:
|||||
|-|-|-|-|
|As at 30 June 2016, 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||||
||584,671,474.15|-|8.30%|
|accounts receivables||||

(5)Analysis of account receivables that are terminated recognition due to financial asset transfer:
By 30 June 2016, accounts receivable of RMB692,612,846.74has been factored to financial
institute(2015 semi-annual: RMB70,499,859.45).
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 4. Advances to suppliers
(1)The aging of advances to suppliers is analysed below:
Unit:RMB
||||||
|-|-|-|-|-|
||30 June 2016||31 December 2015||
|Aging|||||
||amount|% of total balance|amount|% of total balance|
|Within 1 year|57,864,673.15|99.95%|71,740,255.84|99.58%|
|1 to 2 years|9,000.00|0.02%|285,290.00|0.40%|
|2 to 3 years|18,200.00|0.03%|6,001.48|0.01%|
|Above 3 years|-|-|9,714.52|0.01%|
|Total|57,891,873.15|--|72,041,261.84|--|

 (2)The top five advances to suppliers by customer are summarized
||||
|-|-|-|
|As at 30 June 2016, the top five advances to suppliers by customer are summarized as below:|||
||Amount|Proportion of total balance|
|Total amount of top five advances to|26,176,613.17|45.22%|
|suppliers|||

5. Interests receivable
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2016|31 December 2015|
|Time deposit|128,212.50|0.00|
|Loan by mandate|178,673.06|0.00|
|Total|306,885.56|0.00|

 6. Other receivables
(1)Other receivables and related provision for bad debts by category:
Unit:RMB
||||
|-|-|-|
|Types|30 June 2016|31 December 2015|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Carrying amount||Bad debt provision|||Carrying amount||Bad debt provision|||
||||||Net book|||||Net book|
|||% of total|||||% of total||||
||||||value|||||value|
||amount|amount|amount|rate||amount|amount|amount|rate||
|Individually||5.71%|||||||||
|significant are|||||||||||
|subject to|8,980,00||8,980,000.|||8,980,0||8,980,000|||
|||||100.00%|0.00||18.33%||100.00%|0.00|
|separate|0.00||00|||00.00||.00|||
|impairment|||||||||||
|assessment|||||||||||
|Receivable accounts||,92.00%|||||||||
||144,584||190,669.4||144,393,5|34,544,||268,381.8||34,276,564.5|
|within similar||||0.13%|||70.52%||0.78%||
||265.18||6||95.72|946.39||9||0|
|credit risk group|||||||||||
|Individually not||2.29%|||||||||
|significant but|||||||||||
||3,599,49||1,455,828.||2,143,666|5,462,7||1,563,440|||
|individually||||40.45%|||11.15%||28.62%|3,899,319.96|
||5.16||46||.70|60.54||.58|||
|evaluated for|||||||||||
|impairment|||||||||||
||157,163|,100.00%|10,626,49||146,537,262.42|48,987,||10,811,82||38,175,884.46|
|Total||||6.76%|||100.00%||22.07%||
||760.34||7.92|||706.93||2.47|||

 As at 30 June 2016, impairment provision for other receivables individually significant:
Unit:RMB
||||||
|-|-|-|-|-|
||30 June 2016||||
|Other receivables(by company)||||Assessment for|
||Other receivables|Bad debt provision|Rate||
|||||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
|||||
|-|-|-|-|
|Aging|30 June 2016|||
||Other receivables|Bad debt provision|Rate|
|Within 1 year|142,653,805.32|0.00|0.00%|
|1 to 2 years|1,075,216.76|53,760.84|5.00%|
|2 to 3 years|341,400.00|34,140.00|10.00%|
|Over 3 years|513,843.10|102,768.62|20.00%|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
|Total|144,584,265.18|190,669.46|0.13%|

 (2)Bad debt provision of Other receivables, Important recovered or reversed items this period Bad debt provision of Other receivables this period is RMB21,444.95with the recovered or reversed amount to be RMB172,207.19.
(3)Other receivables written off for the six months ended 30 June,2015
Other receivables written off for the six months ended 30 June, 2016 is RMB34,562.31.
(4)Other receivables by nature are analysed below:
Unit:RMB
||||
|-|-|-|
|Nature|30 June 2016|31 December 2015|
|Deposit|19,002,830.65|20,157,099.69|
|Petty cash advance to employees|8,418,013.03|7,254,354.65|
|Receivable of equity transaction|8,980,000.00|8,980,000.00|
|Receivable due from related party|99,747,914.89|1,715,000.00|
|Others|21,015,001.77|10,881,252.59|
|Total|157,163,760.34|48,987,706.93|

 (5)The top 5 parties that owe the largest amounts of other receivable balances
Unit:RMB
|||||||
|-|-|-|-|-|-|
|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|6.13%|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|3.68%|0.00|
|Guangdong Province||||||
|Eisai China lnc.|Collective advisory fee|4,530,000.00|Within 1 year|3.09%|0.00|
|People's Court of Guangzhou|Retention fee for lawsuit|||||
|||||1.69%|0.00|
|Tianhe District|filed as plaintiff|2,473,179.00|Within 1 year|||
|Guangxi Autonomous Region||||||
||Collective housing repair|||||
|Housing Reformed System||1,943,997.04|Over 5 years|1.33%|--|
||funds|||||
|Finance Department||||||
|Total|--|23,315,256.04|--|15.92%|8,980,000.00|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 7. Inventories
(1)Inventories by category
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
||30 June 2016|||31 December 2015|||
|Items|||||||
||Book value|Provision|Net book value|Book value|Provision|Net book value|
|Raw materials|97,441,620.31|2,938,022.50|94,503,597.81|119,787,461.99|2,825,858.08|116,961,603.91|
|Work in|||||||
||9,282,763.78|0.00|9,282,763.78|23,461,516.85|6,773,872.30|16,687,644.55|
|progress|||||||
|Finished goods|2,174,704,877.12|18,974,904.35|2,155,729,972.77|2,416,024,602.74|23,469,246.48|2,392,555,356.26|
|Consigned|||||||
|processing|2,378,173.45|0.00|2,378,173.45|1,959,239.89|0.00|1,959,239.89|
|materials|||||||
|Low cost|||||||
||2,960,364.14|66,761.55|2,893,602.59|5,019,915.55|23,001.88|4,996,913.67|
|consumables|||||||
|Total|2,286,767,798.80|21,979,688.40|2,264,788,110.40|2,566,252,737.02|33,091,978.74|2,533,160,758.28|

 (2)Provision for declines in value of inventories
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
||31 December|Current period increase||Current period decrease|||
|Items||||||30 June 2016|
||2015|Increases|Others|Reversal or written off|Others||
|Raw materials|2,825,858.08|391,491.12|0.00|279,326.70|0.00|2,938,022.50|
|Work in progress|6,773,872.30|0.00|0.00|6,773,872.30|0.00|0.00|
|Finished goods|23,469,246.48|8,053,632.99|0.00|12,547,975.12|0.00|18,974,904.35|
|Low cost|||||||
||23,001.88|177,638.70|0.00|133,879.03|0.00|66,761.55|
|consumables|||||||
|Total|33,091,978.74|8,622,762.81|0.00|19,735,053.15|0.00|21,979,688.40|

 8. Other Current Asset
Unit:RMB
||||
|-|-|-|
|Items|30 June 2016|31 December 2015|
|VAT to be deducted|4,939,600.99|16,623,377.34|
|Corporate income tax to be deducted|39,482.38|2,540,076.52|
|Other|293,461.72|293,461.72|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
|Total|5,272,545.09|19,456,915.58|

 9. Long-term equity investments
Unit:RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||Increases/(Decreases)||||||
||31 December|||Other equity||||Provis|
|Investees||Additional|Share of||Dividend|Provision of|30 June 2016||
||2015|||||||endi|
|||||movement|||||
|||investment|profit or loss||declared|impairment|||
|||||||||balan|
|Associates|||||||||
|Shenzhen Wanle|||||||||
||179,567,519.13|0.00|28,190,606.72|0.00|35,190,000.00|0.00|172,568,125.85||
|Medical Co., Ltd.|||||||||
|Sinopharm|||||||||
|HoldingZhuhai|1,264,195.42|0.00|134,206.51|0.00|0.00|0.00|1,398,401.93||
|Co., Ltd.|||||||||
|Sinopharm Group|||||||||
|Zhijun(Suzhou)|||||||||
||0.00|0.00|(533,680.85)|77,722,388.00|0.00|0.00|77,188,707.15||
|Pharmaceutical|||||||||
|Co.,Ltd.|||||||||
|Total|180,831,714.55|0.00|27,791,132.38|77,722,388.00|35,190,000.00|0.00|251,155,234.93||

 Other equity movement is the gain on disposal of Zhijun(Suzhou).
10. Investment Properties
Unit:RMB
|||||
|-|-|-|-|
|Items|Buildings|Land use rights|Total|
|I.Cost||||
|1.31 December 2015|221,833,844.79|20,117,583.47|241,951,428.26|
|2. Increase in Current period|561,803.00|62,726.06|624,529.06|
|Transferred from fixed assets|561,803.00|0.00|561,803.00|
|Transferred from intagible assets|0.00|62,726.06|62,726.06|
|3. Decrease in Current period|0.00|64,408.40|64,408.40|
|Other outflow|0.00|64,408.40|64,408.40|
|4.30 June 2016|222,395,647.79|20,115,901.13|242,511,548.92|
|II.Accumulated depreciation/ amortisation||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
|1.31 December 2015|92,039,232.18|3,509,877.31|95,549,109.49|
|2. Increase in Current period|3,770,943.02|37,214.81|3,808,157.83|
|Provision or depreciation|3,468,534.84|34,914.89|3,503,449.73|
|Transferred from fixed assets|302,408.18|0.00|302,408.18|
|Transferred from intagible assets|0.00|2,299.92|2,299.92|
|3. Decrease in Current period|0.00|7,300.75|7,300.75|
|Other outflow|0.00|7,300.75|7,300.75|
|4.30 June 2016|95,810,175.20|3,539,791.37|99,349,966.57|
|III.Provision for impairment loss||||
|1.31 December 2015|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 2016|1,300,000.00|0.00|1,300,000.00|
|IV.Net book value||||
|1.30 June 2016 Net book value|125,285,472.59|16,576,109.76|141,861,582.35|
|2.31 December 2015 Net book value|128,494,612.61|16,607,706.16|145,102,318.77|

 In 2016 semi annual,investment properties without official property right certificateswith a carrying amount of RMB69,134,615.28(Cost: RMB70,085,820.00, accumulated depreciation: RMB951,204.72).
In 2016 semi annual, the amount of depreciation and amortization were RMB3,503,449.73(2015 semi annual:RMB3,897,013.25).
In 2016 semi annual, the Group changed the use of buildings with a carrying amount of RMB259,394.82(Cost: RMB561,803.00, accumulated depreciation:RMB302,408.18) and the land use right with a carrying amount of RMB 60,426.14 (Cost:62,726.06, accumulated depreciation:RMB2,299.92) into leasing.The relative fixed assets and intangible assets were respectively transferred into investment properties at the date of change in use.
In 2016 semi annual, the Group changed the use of buildings with a carrying amount of RMB57,107.65 (Cost: RMB64,408.40, accumulated depreciation:RMB7,300.75) The relative investment properties were transferred into intangible assets for self use at the date of change.
11. Fixed Assets
(1)Fixed Assets
Unit:RMB
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||||
|-|-|-|-|-|-|-|
|||Machinery and|||Leasehold||
|Items|Buildings||Motor vehicles|Other||Total|
|||equipment|||improvements||
|I.Cost:|||||||
|1.31 December|||||||
||849,925,720.66|557,047,728.62|54,085,958.51|217,223,141.26|37,402,811.81|1,715,685,360.86|
|2015|||||||
|2. Current period|||||||
||66,117,000.63|67,142,949.81|314,918.01|3,226,276.94|1,911,368.38|138,712,513.77|
|additions|||||||
|(1)purchase|3,266,719.29|3,497,259.79|314,918.01|2,419,255.30|1,033,412.38|10,531,564.77|
|(2)Transfer from|||||||
|Construction in|62,850,281.34|63,645,690.02|0.00|807,021.64|877,956.00|128,180,949.00|
|Progress|||||||
|(3)Increase in|||||||
||0.00|0.00|0.00|0.00|0.00|0.00|
|Enterprise merger|||||||
|(4) Transfer from|||||||
|investment|0.00|0.00|0.00|0.00|0.00|0.00|
|properties|||||||
|3. Current period|||||||
||137,211,346.08|180,324,533.61|3,417,584.51|4,521,699.29|2,420,650.77|327,895,814.26|
|disposals|||||||
|(1)Disposal or|||||||
||136,649,543.08|180,324,533.61|3,417,584.51|4,521,699.29|2,420,650.77|327,334,011.26|
|dumping|||||||
|(2)Transfer to|||||||
|investment|561,803.00|0.00|0.00|0.00|0.00|561,803.00|
|properties|||||||
|4.30 June 2016|778,831,375.21|443,866,144.82|50,983,292.01|215,927,718.91|36,893,529.42|1,526,502,060.37|
|II. Accumulated|||||||
|depreciation|||||||
|1.31 December|||||||
||166,390,207.83|255,591,447.95|33,429,305.94|144,865,882.92|20,580,071.74|620,856,916.38|
|2015|||||||
|2. Current period|||||||
||12,971,975.96|18,997,493.96|2,290,692.27|10,422,386.71|2,496,051.00|47,178,599.90|
|other additions|||||||
|(1)Provision|12,971,975.96|18,997,493.96|2,290,692.27|10,422,386.71|2,496,051.00|47,178,599.90|
|(2) Transfer from|||||||
|investment|0.00|0.00|0.00|0.00|0.00|0.00|
|properties|||||||
|3. Current period|||||||
||33,255,814.93|79,743,297.40|3,033,508.57|3,837,069.66|2,173,191.01|122,042,881.57|
|disposals|||||||
|(1)Disposal or|32,953,406.75|79,743,297.40|3,033,508.57|3,837,069.66|2,173,191.01|121,740,473.39|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||||
|-|-|-|-|-|-|-|
|dumping|||||||
|(2)Transfer to|||||||
|investment|302,408.18|0.00|0.00|0.00|0.00|302,408.18|
|properties|||||||
|4.30 June 2016|146,106,368.86|194,845,644.51|32,686,489.64|151,451,199.97|20,902,931.73|545,992,634.71|
|III. Provision for|||||||
|diminution in value|||||||
|1.31 December|||||||
||2,449,498.76|12,493,558.67|0.00|106,511.27|366,438.25|15,416,006.95|
|2015|||||||
|2. Current period|||||||
||0.00|0.00|0.00|0.00|0.00|0.00|
|other additions|||||||
|3. Current period|||||||
||2,449,498.76|11,356,699.55|0.00|0.00|7,758.64|13,813,956.95|
|disposals|||||||
|Disposal or|||||||
||2,449,498.76|11,356,699.55|0.00|0.00|7,758.64|13,813,956.95|
|dumping|||||||
|4.30 June 2016|0.00|1,136,859.12|0.00|106,511.27|358,679.61|1,602,050.00|
|IV.Net book value|||||||
|1.30 June 2016|||||||
||632,725,006.35|247,883,641.19|18,296,802.37|64,370,007.67|15,631,918.08|978,907,375.66|
|Net book value|||||||
|2.31 December|||||||
||681,086,014.07|288,962,722.00|20,656,652.57|72,250,747.07|16,456,301.82|1,079,412,437.53|
|2015 Net book value|||||||

(2)Temporary idle fixed assets
Unit:RMB
|||||||
|-|-|-|-|-|-|
|||accumulated|Provision of|Net book||
|Items|Cost||||Notes|
|||depreciation|impairment|value||
|machinery and|||||Temporary idle for repairmen and|
||301,538.46|180,195.83|0.00|121,342.63||
|equipments|||||maintenance|

(3) Financing lease of fixed assets
As of 30 June 2016, fixed assets with carrying amount of RMB11,075,655.86 was financing leased(As of December 2015: RMB7,215,410.60).
(4) Fixed assets without official property right certificates
||||
|-|-|-|
|||Reason for outstanding property right|
|Items|Carrying amount||
|||certificates|
|Buildings|439,379,792.80|Pending project final accounts|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
|In 2016 semi annual, details of the depreciation are charged as below:|||
||For the six months ended 30 June 2016|For the six months ended 30 June 2015|
|Cost of goods sold|23,118,411.95|24,199,873.36|
|Selling expenses|3,006,584.94|2,710,530.24|
|General and administrative expenses|17,081,746.52|13,633,937.70|
|Research and development|3,971,856.49|3,504,067.04|
|expenses|||
|Total|47,178,599.90|44,048,408.34|

 12. Construction in progress
(1)Construction in progress
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
||30 June 2016|||31 December 2015|||
|Items|Carrying|Provision of|||Provision of||
||||Net book value|Carrying amount||Net book value|
||amount|impairment|||impairment||
|Pingshan|||||||
|Pharmaceutical|||||||
|Research &|67,356,288.31|0.00|67,356,288.31|129,597,181.05|0.00|129,597,181.05|
|Development|||||||
|Manufacturing Base|||||||
|ZhijunProduction|||||||
|Workshop|||||||
|Technological|23,859,674.49|0.00|23,859,674.49|12,468,050.72|0.00|12,468,050.72|
|Transformation|||||||
|Project|||||||
|Warehouse|||||||
|improvement|12,261,138.66|0.00|12,261,138.66|5,341,796.63|0.00|5,341,796.63|
|project|||||||
|Supply chain|||||||
||8,117,606.83|0.00|8,117,606.83|12,620,204.41|0.00|12,620,204.41|
|extension Project|||||||
|District hospital|||||||
|intelligent supply|||||||
||3,063,555.55|0.00|3,063,555.55|0.00|0.00|0.00|
|chain management|||||||
|project|||||||
|Zhijun(Suzhou)|0.00|0.00|0.00|5,388,239.70|0.00|5,388,239.70|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||||
|-|-|-|-|-|-|
|Production||||||
|Workshop||||||
|Technological||||||
|Transformation||||||
|Project||||||
|Others|9,509,343.00|9,509,343.00|12,181,314.07|1,500,000.00|10,681,314.07|
|Total|124,167,606.84|124,167,606.84|177,596,786.58|1,500,000.00|176,096,786.58|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 (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 2016|out of||capitalized|capitalized|||
|||2015|additions|||||progress|||interest|by|
|||||current year|disposals||budget||borrowing cost|in 2015 semi|||
|||||||||(%)|||rate (%)||
||||||||(%)|||annual|||
|Pingshan Pharmaceutical||||||||||||Workingca|
|||||121,306,809.7||67,356,288.3|||||||
|Researc& Development|881,370,000.00|129,597,181.05|59,065,916.97||0.00||89.80%|89.80%|21,417,118.66|1,631,571.43|4.64%|pital and|
|||||1||1|||||||
|Manufacturing Base||||||||||||borrowings|
|Zhijun Production||||||||||||Working|
|||||||23,859,674.4|||||||
|Workshop Technological|63,763,000.00|12,468,050.72|12,912,729.77|1,521,106.00|0.00||50.31%|66.53%|0.00|0.00|0.00%|capital|
|||||||9|||||||
|Transformation Project|||||||||||||
|Warehouse improvement||||||12,261,138.6||||||Working|
||22,980,000.00|5,341,796.63|7,984,629.34||1,065,287.31||88.00%|95.00%|0.00|0.00|0.00%||
|project||||||6||||||capital|
|Supply chain extension||||||||||||Working|
||21,063,732.60|12,620,204.41|237,649.71|4,466,662.39|273,584.90|8,117,606.83|95.53%|95.53%|0.00|0.00|0.00%||
|Project||||||||||||capital|
|District hospital intelligent||||||||||||Working|
|supply chain|12,850,000.00|0.00|3,063,555.55|0.00|0.00|3,063,555.55|23.84%|23.84%|0.00|0.00|0.00%|capital|
|management project|||||||||||||
|Zhijun(Suzhou) Production||||||||||||Workingca|
|Workshop Technological|49,938,000.00|5,388,239.70|0.00|886,370.90|4,501,868.80|0.00|0%|0%|0.00|0.00|0.00%|pital and|
|Transformation Project||||||||||||borrowings|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||Working|
|Other projects|0.00|12,181,314.07|726,495.73||3,398,466.80|9,509,343.00|0.00|0.00|0.00|0.00|0.00%||
|||||||||||||capital|
|||||||124,167,606.|||||||
|Total|1,051,964,732.60|177,596,786.58|83,990,977.07|128,180,949.00|9,239,207.81||--|--|21,417,118.66|1,631,571.43|4.64%|--|
|||||||84|||||||

In 2016 semi annual, the amounts that construction in progress transferred into fixed asset were RMB128,180,949.00 (2015 semi annual: RMB10,076,038.68), long term prepaid expense were RMB1,065,287.31(2015 semi annual: RMB524,431.39), and intangible asset were RMB273,584.90(2015 semi annual: Nil)
In 2016 semi annual, construction in progress with carrying amount of RMB3,790,051.28 was financing leased(As of December 2015: 4,231,000.00).
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 13. Intangible asset
(1)Intangible asset
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
|||Proprietary|Computer||||
|Items|Land use rights|||Trademarks|Sales network|Total|
|||technology|software||||
|I. Cost|||||||
|||||||256,893,050.3|
|1.31 December 2015|||||||
||143,663,111.50|53,901,204.72|25,474,741.31|196,850.00|33,657,142.86|9|
|2. Current period|||||||
|additions|64,408.40|0.00|1,307,678.70|0.00|0.00|1,372,087.10|
|(1)purchase|0.00|0.00|1.034,093.80|0.00|0.00|1.034,093.80|
|(2) Transferred from|||||||
|Construction in Progress|0.00|0.00|273,584.90||0.00|273,584.90|
|(3)Transferred from||0.00|0.00||||
|investment properties|64,408.40|||0.00|0.00|64,408.40|
|||53,083,933.33|||||
|3. Current period decreases|||||||
||40,357,289.04||585,700.68|0.00|0.00|94,026,923.05|
|(1)disposal|||||||
||40,294,562.98|53,083,933.33|585,700.68|0.00|0.00|93,964,196.99|
|(2)Transferred to investment||0.00|0.00||||
|properties|62,726.06|||0.00|0.00|62,726.06|
|||||||164,238,214.4|
|4. 30 June 2016|||||||
||103,370,230.86|817,271.39|26,196,719.33|196,850.00|33,657,142.86|4|
|II. Accumulated amortization|||||||
|||||||115,907,941.6|
|1.31 December 2015|||||||
||39,986,394.88|50,276,036.19|19,388,898.68|196,850.00|6,059,761.90|5|
|2.Current period|||||||
|additions|1,220,239.05|80,188.68|1,432,681.54|0.00|841,428.58|3,574,537.85|
|(1)Provision|1,212,938.30|80,188.68|1,432,681.54|0.00|841,428.58|3,567,237.10|
|(2)Transferred from||0.00|0.00||||
|investment properties|7,300.75|||0.00|0.00|7,300.75|
|3.Current period||49,923,936.53|||||
|decreases|23,551,135.26||302,063.65|0.00|0.00|73,777,135.44|
|(1)disposal|23,548,835.34|49,923,936.53|302,063.65|||73,774,835.52|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||||
|-|-|-|-|-|-|-|
|(2)Transferred to investment||0.00|0.00||||
|properties|2,299.92|||0.00|0.00|2,299.92|
|4.30 June 2016|17,655,498.67|432,288.34|20,519,516.57|196,850.00|6,901,190.48|45,705,344.06|
|III. Provision for impairment|||||||
|loss|||||||
|1.31 December 2015|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|3,000,000.00|||||
|decreases|||264,952.19|0.00|0.00|3,264,952.19|
|(1)disposal||3,000,000.00|264,952.19|||3,264,952.19|
|4.30 June 2016|0.00|0.00|0.00|0.00|0.00|0.00|
|IV. Net book value|||||||
|1.30 June 2016 Net book||||||118,532,870.3|
|value|85,714,732.19|384,983.05|5,677,202.76|0.00|26,755,952.38|8|
|2.31 December 2015 Net||||||137,720,156.5|
|book value|103,676,716.62|625,168.53|5,820,890.44|0.00|27,597,380.96|5|

 There is no intangible asset recognized through internal research and development for the six months ended 30 June 2016.
14. Expenditures on research and development
Unit:RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Current period additions||Current period decreases||||
||31|||||||
|||Expenditures on|||||30 June|
|Projects|December|||Confirmed as|Recognized in|||
|||internal|Other|||Other|2016|
||2015|||Intangible asset|profit and loss|||
|||development||||||
|Projects of Chinese||||||||
||0.00|4,125,034.88|0.00|0.00|4,125,034.88||0.00|
|patent medicine||||||||
|Projects of||||||||
|antibiotics||||||||
|preparation and|0.00|14,819,229.97|0.00|0.00|14,819,229.97||0.00|
|powder injection||||||||
|projects subtotal||||||||
|Projects of||||||||
|cardiovascular|0.00|173,332.55|0.00|0.00|173,332.55||0.00|
|and||||||||
|cerebrovascular||||||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||||||
|-|-|-|-|-|-|-|-|
|diseases||||||||
|treatment subtotal||||||||
|Projects of||||||||
|respiratory||||||||
||18,117.29||0.00|0.00||18,117.29|0.00|
|system diseases||||||||
|treatment subtotal||||||||
|Projects of|||||||0.00|
|antibiotics crude|5,357,691.17|1,495,695.99|0.00|0.00|1,495,695.99|5,357,691.17||
|drugs etc.||||||||
|Other Projects|243,507.01|7,591,344.23|0.00|0.00|7,591,344.23|243,507.01|0.00|
|Total|5,619,315.47|28,204,637.62|0.00|0.00|28,204,637.62|5,619,315.47|0.00|

 Expenditures on research and development incurred in 2016semi annual amount to
RMB28,204,637.62(2015 semi annual: RMB33,640,577.40),the total amount is recognised in profit or loss for the current period, (2015semi annual: RMB33,640,577.40 was recognized in profit and loss and as development cost).
15. Goodwill
(1)Goodwill cost
Unit:RMB
||||||
|-|-|-|-|-|
|||Current period additions|Current period decreases||
||31 December 2015|||30 June 2016|
|||Business combination|Disposal||
|Sinopharm Group|||||
|Zhijun(Suzhou)|33,869,393.32|0.00|33,869,393.32|0.00|
|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|51,359,439.83|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 (2)Provision of impairment loss
Unit:RMB
||||||
|-|-|-|-|-|
||31 December 2015|Current period additions|Current period decreases||
|||||30 June 2016|
|||Provision|Disposal||
|Sinopharm Group|||||
|Zhijun(Suzhou)|5,850,000.00|0.00|5,850,000.00|0.00|
|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.
16. Long term prepaid expense
Unit:RMB
|||||||
|-|-|-|-|-|-|
|||Current period|Current period|Other current period||
|Projects|31 December 2015||||30 June 2016|
|||additions|amortization|decreases||
|Leasehold||||||
|improvements|37,563,181.21|1,392,319.13|2,023,308.33|0.00|36,932,192.01|
|Other|2,901,382.72|0.00|2,369,165.36|495,768.56|36,448.80|
|Total|40,464,563.93|1,392,319.13|4,392,473.69|495,768.56|36,968,640.81|

 17.Deferred income tax assets and deferred income tax liabilities
(1)Deferred income tax assets
Unit:RMB
||||||
|-|-|-|-|-|
||30 June 2016||31 December 2015||
|Projects|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||differences|assets|differences|assets|
|Provision for|||||
||58,598,054.08|13,044,269.67|99,537,981.41|22,863,042.74|
|impairment of assets|||||
|Deductible losses|5,497,197.30|1,329,891.69|106,551,451.67|25,836,889.79|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||
|-|-|-|-|-|
|Accrued expenses|54,326,134.13|11,062,280.39|82,861,800.83|15,675,447.65|
|Accrued payroll|37,610,254.36|8,632,031.24|49,498,383.60|11,505,001.96|
|Deferred revenue|57,685,991.28|9,027,098.15|71,716,109.84|11,391,871.99|
|Other|12,752,395.83|1,992,891.43|5,613,633.90|1,214,415.80|
|Total|226,470,026.98|45,088,462.57|415,779,361.25|88,486,669.93|

 (2)Deferred income tax liabilities
Unit:RMB
||||||
|-|-|-|-|-|
||30 June 2016||31 December 2015||
|Projects|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||differences|liabilities|differences|liabilities|
|Business|||||
|combination|||||
|involving entities|26,755,952.40|6,688,988.10|36,437,645.85|9,109,411.46|
|not under common|||||
|control|||||
|Changes in fair value|36,808,324.01|9,107,019.65|40,156,878.68|9,733,983.44|
|Other|15,093,276.00|3,773,319.00|16,321,146.59|4,080,286.65|
|Total|78,657,552.41|19,569,326.75|92,915,671.12|22,923,681.55|

 (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 2016||31 December 2015||
|||30 June 2016||31 December 2015|
|Deferred income tax|0.00|45,088,462.57||88,210,062.44|
|assets|||276,607.49||
|deferred income tax||19,569,326.75||22,647,074.06|
||0.00||||
|liabilities|||276,607.49||

 (4)Unrecognised deferred tax assets
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2016|31 December 2015|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
|deductible losses|0.00|5.099,846.63|
|Total|0.00|5.099,846.63|

 (5)Unrecognised deferred tax assets in respect of deductible losseswill be expired as following Unit:RMB
|||||
|-|-|-|-|
|Year|30 June 2016|31 December 2015|Notes|
||||Sinopharm Group|
|2020|0.00|5,099,846.63||
||||Zhijun(Suzhou)|
|Total|0.00|5,099,846.63|--|

The amount of RMB5,099,846.63 wasdue to the loss of Sinopharm Group Zhijun (Suzhou) Pharmaceutical Co. Ltd. Due to the disposal of67% share of Sinopharm Group Zhijun (Suzhou) Pharmaceutical Co. Ltd , the amount is zero at the end of June 30 2016.
18. Other non-current assets
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2016|31 December 2015|
|Medical reserve fund|41,106,641.13|42,855,240.33|
|Prepayment for project and equipment|24,447,792.41|32,702,948.09|
|Total|65,554,433.54|75,558,188.42|

 19. Short term borrowings
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2016|31 December 2015|
|Guaranteed borrowings|0.00|286,264,700.35|
|Unsecured borrowings|1,154,921,347.72|837,769,852.39|
|Discounted notes|155,369,862.08|88,924,715.00|
|Total|1,310,291,209.80|1,212,959,267.74|

 On 30 June 2016,unsecured borrowings of RMB 1,154,921,347.72 (31 December 2015: RMB767,769,852.39) are guaranteed by the Company and its subsidiaries.Meanwhile, unsecured
borrowing of RMB95,066,149.21 is borrowed from the Sinopharm Group Financial Co., Ltd. (“Group
Financial Co.”).
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 On 30 June 2016, bank borrowings of RMB0.00(31 December 2015: RMB286,264,700.35) are
guaranteed by Sinopharm Group.
On 30 June 2016, commercial acceptance bills that had discounted but not terminated amounted to RMB155,369,862.08 (2015:RMB88,924,715.00)
On 30 June 2016, the weighted average interest rate of short-term borrowings is4.30% per annum (31 December 2015:4.48%).
In 30June 2016, there has been no unpaid due short-term borrowings (December 31, 2015: Nil). 20. Notes paybale
Unit:RMB
||||
|-|-|-|
|category|30 June 2016|31 December 2015|
|Trade acceptance notes|147,561,025.09|216,141,770.19|
|Bank acceptance notes|1,313,374,253.07|1,085,452,646.62|
|Total|1,460,935,278.16|1,301,594,416.81|

 21. Accounts payable
(1)Accounts payable
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2016|31 December 2015|
|Trade paybale|4,652,842,317.77|4,036,910,159.14|
|Total|4,652,842,317.77|4,036,910,159.14|

 (2)Account payable aged over 1 year
Unit:RMB
||||
|-|-|-|
|||Reasons that accounts payable have not|
|Projects|30 June 2016||
|||been settled|
|Trade payable|130,077,838.12|Transactions were not closed yet.|
|Total|130,077,838.12||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 22.Advances from customers
(1)Advances from customers
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2016|31 December 2015|
|Sales received in advance|27,128,326.37|56,943,167.40|
|Total|27,128,326.37|56,943,167.40|

 As at 30June 2016, advances from customers of RMB1,298,949.11 (31 December 2014: RMB1,845,243.48) were aged over 1 year. Before the financial statement is approved, no such long aged advance has been settled.
23. Employee benefits payable
(1)Employee benefits payable
Unit:RMB
||||||
|-|-|-|-|-|
|Projects|31 December 2015|Current period additions|Current period decreases|30 June 2016|
|1.Short term employee|||||
||160,934,496.69|301,955,902.03|352,872,393.51|110,018,005.21|
|benefits payable|||||
|2. Defined contribution|||||
||2,407,982.07|26,008,573.45|26,794,430.37|1,622,125.15|
|plans payable|||||
|3. Termination benefits|||||
||973,455.41|1,349,716.59|1,200,267.34|1,122,904.66|
|payable|||||
|Total|164,315,934.17|329,314,192.07|380,867,091.22|112,763,035.02|

 (2)Short term employee benefits payable
Unit:RMB
||||||
|-|-|-|-|-|
|Projects|31 December 2015|Current period additions|Current period decreases|30 June 2016|
|1.Wages and salaries,|||||
|bonuses, allowances|139,459,804.01|256,437,829.20|304,604,315.98|91,293,317.23|
|and subsidies|||||
|2.Staff welfare|1,992,465.44|12,095,983.91|13,598,232.85|490,216.50|
|3.Social security|||||
||374,955.91|10,978,207.62|11,157,447.96|195,715.57|
|contributions|||||
|Including:|||||
||332,483.09|9,648,810.59|9,786,549.79|194,743.89|
|Medical insurance|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||
|-|-|-|-|-|
|Work injury insurance|32,960.67|497,913.38|530,283.86|590.19|
|Maternity insurance|9,512.15|831,483.65|840,614.31|381.49|
|4.Housing funds|492,521.50|13,072,581.73|12,852,908.11|712,195.12|
|5.Labor union funds|||||
|and employee|17,742,928.06|8,404,169.31|9,443,329.01|16,703,768.36|
|education funds|||||
|6.Others|871,821.77|967,130.26|1,216,159.60|622,792.43|
|Total|160,934,496.69|301,955,902.03|352,872,393.51|110,018,005.21|

 (3)Defined contribution plans payable
Unit:RMB
||||||
|-|-|-|-|-|
|Projects|31 December 2015|Current period additions|Current period decreases|30 June 2016|
|1.Basic pensions|365,782.25|23,068,912.13|23,434,046.38|648.00|
|2.Unemployment|||||
||28,451.29|888,188.47|913,730.44|2,909.32|
|insurance|||||
|3.Supplementary|||||
||2,013,748.53|2,051,472.85|2,446,653.55|1,618,567.83|
|pensions|||||
|Total|2,407,982.07|26,008,573.45|26,794,430.37|1,622,125.15|

 (4)Termination benefits payable
||||
|-|-|-|
||30 June 2016|31 December 2015|
|Retirement benefits payable – within 1 year|1,060,000.00|873,455.41|
|Other dismission benefits(Note i)|62,904.66|100,000.00|
|Total|1,122,904.66|973,455.41|

 (i)For year 2016 semi annual, the amount that the group provided other termination benefits for
severing labor relations was RMB216,482,79.(2015:Other termination benefits for severing labor relations: RMB651,382.79).
24.Tax payable
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2016|31 December 2015|
|Value-added-tax payable|23,080,738.76|19,957,187.35|
|Business tax payable|0.00|1,025,850.75|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
|Enterprise income tax payable|51,494,087.91|39,167,388.57|
|Individual income tax payable|5,001,688.59|1,609,121.36|
|City maintenance and construction tax|1,777,280.53||
|||1,544,705.46|
|payable|||
|Anti-flood fund payable|1,766,513.73|5,881,784.79|
|Stamp duty tax payable|2,351,377.64|1,290,342.40|
|Educational surcharge payable|1,274,187.47|1,113,244.42|
|Real estate tax payable|968,746.18|834,900.64|
|Land use tax payable|385,189.32|211,481.61|
|Other tax payables|4,726,572.20|227,472.85|
|Total|92,826,382.33|72,863,480.20|

 25. Interest payable
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2016|31 December 2015|
|Short term borrowing interests payable|5,278,580.43|6,486,284.75|
|Long term borrowing interests payable||57,782.44|
|Total|5,278,580.43|6,544,067.19|

 26. Other payable
(1)Other payable by nature are analysed below:
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2016|31 December 2015|
|Accrued selling and distribution|||
||181,534,293.75|167,570,277.31|
|expenses|||
|Payables for construction in progress|||
||109,447,609.80|108,438,287.53|
|and equipment|||
|Amount collected on behalf of third|||
||107,527,204.18|57,273,890.13|
|party|||
|Deposit|26,946,757.86|39,558,840.49|
|Depositfrom intermediaries|30,000,000.00||
|Other|90,165,547.92|95,608,858.39|
|Total|545,621,413.51|468,450,153.85|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 (2)Significant other payable aged over 1 year
Unit:RMB
||||
|-|-|-|
|||Reasons that accounts payable have|
|Projects|30 June 2016||
|||not been settled|
|Payable of R&D expenses to China|||
|State Institute of Phamaceutical|8,440,000.00|Research status were not closed yet.|
|Industry|||
|Total|8,440,000.00||

27. Current portion of long-term borrowings
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2016|31 December 2015|
|Long-term borrowings- due within one|||
||31,600,000.00|0.00|
|year|||
|Promotion rewards program|||
||4,987,500.00|3,510,000.00|
|- due within one year|||
|Financing lease payables|2,150,078.41|1,934,858.84|
|Total|38,737,578.41|5,444,858.84|

 28. Long term borrowings
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2016|31 December 2015|
|Unsecured borrowings|0.00|40,895,172.30|
|Entrusted borrowings|0.00|31,600,000.00|
|Total|0.00|72,495,172.30|

 Long term borrowingswas due within one year and had been reclassified to long-term borrowings- due within one year (Note:27). 29.Long-term payables
||||
|-|-|-|
|Projects|30 June 2015|31 December 2014|
|Financing lease payables|12,952,996.78|10,329,417.89|
|Less: due within one year|2,150,078.41|1,934,858.84|
|Total|10,802,918.37|8,394,559.05|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 30. Long term employee benefits
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2016|31 December 2015|
|Early retirement benefits payable|2,582,145.00|2,499,100.00|
|Total|2,582,145.00|2,499,100.00|

 31. Payables for specific projects
Unit:RMB
|||||||
|-|-|-|-|-|-|
|||Current period|Current period|||
|Projects|31 December 2015|||30 June 2016|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||

32. Deferred income
Unit:RMB
|||||||
|-|-|-|-|-|-|
|||Current period|Current period||Reasons of|
|Projects|31 December 2015|||30 June 2016||
|||additions|decreases||formation|
||||||Government|
|Government grants|155,936,441.64|1,219,863.20|10,601,936.76|146,554,368.08||
||||||grants|
|Promotion Rewards|||||Fair value of|
|||4,987,500.00|13,995,944.74|||
|Program|17,162,582.34|||8,154,137.60|rewards|
|Total|173,099,023.98|6,207,363.20|24,597,881.50|154,708,505.68||

Projects involve Government grant:
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
|Government grants|31 December|Current year|Amount recognized a|s Other||Related to|
||||||30 June 2016||
|program|2015|addtions|non-operating income|change||income/assets|
|Resettlement|83,650,666.85|||||Related to|
|||0.00|1,349,204.28|0.00|82,301,462.57||
|Compansation(i)||||||assets|
|Cephalosporin Solid|11,742,379.25|0.00|1,190,215.05|0.00|10,552,164.20|Related to|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||||
|-|-|-|-|-|-|-|
|Preparations||||||assets|
|Development Project|||||||
|Cardiovascular system|||||||
|targeted drug||||||Related to|
||10,392,533.33|0.00|440,891.20|0.00|9,951,642.13||
|development||||||assets|
|programs|||||||
|Guangxi Logistics||||||Related to|
||7,942,645.78|0.00|248,203.20|0.00|7,694,442.58||
|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|4,874,999.99|0.00|250,000.02|0.00|4,624,999.97||
|||||||assets|
|base engineering|||||||
|Logistics standardization||||||Related to|
||4,300,000.02|0.00|199,999.98|0.00|4,100,000.04||
|project||||||assets|
|Cephalosporin Powder|||||||
|||||||Related to|
|Injection Passing EU-|3,815,792.34|0.00|361,983.24|0.00|3,453,809.10||
|||||||assets|
|GMP Authentication|||||||
|Medical R&D Center II (in||||||Related to|
||3,056,300.89|0.00|410,659.98|0.00|2,645,640.91||
|progress)||||||assets|
|New Cephalosporin||||||Related to|
||3,046,340.57|0.00|458,022.30|0.00|2,588,318.27||
|R&D Project||||||assets|
|Cardiovascular system|||||||
|targeted drug||||624,990.||Related to|
||2,436,037.10|0.00|396,008.90||1,415,037.40||
|development||||80||assets|
|programs|||||||
|A comprehensive|||||||
|experimental modern||||||Related to|
||2,400,000.00|0.00|150,000.00|0.00|2,250,000.00||
|service industry||||||assets|
|subsidies|||||||
|Cefpirome Sulfate R&D||||1,853,96||Related to|
||1,853,960.95|0.00|0.00||0.00||
|Project||||0.95||assets|
|The laval shaaban raw|||||||
|||||||Related to|
|materials and tablets|1,500,000.00|0.00|640,000.00|0.00|860,000.00||
|||||||assets|
|project|||||||
|New Cephalosporin||||||Related to|
||608,900.38|0.00|305,246.76|0.00|303,653.62||
|R&D Project||||||assets|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||||
|-|-|-|-|-|-|-|
|||||||Related to|
|Shared Logistics Center|339,100.51|0.00|40,041.16|0.00|299,059.35||
|||||||assets|
||||755,709.18|926,799.||Related to|
|Other projects|8,976,783.68|1,219,863.20|||8,514,137.94||
|||||76||assets|
||155,936,441.64||7,196,185.25|3,405,75|146,554,368.08||
|Total||1,219,863.20||||--|
|||||1.51|||

(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 physical compensation amounted RMB70,250,000.00.The physical building had been completed and transferredto investment properities. 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. 33. Other non-current liabilities
Unit:RMB
||||
|-|-|-|
|Projects|30 June 2016|31 December 2015|
|Medical reserve funds|45,427,343.31|45,427,343.31|
|Total|45,427,343.31|45,427,343.31|

 34. Share Capital
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Movements (+.—)||||||
||31 December|||||||
|||Issue new||reserved funds|||30 June 2016|
||2015||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|

 35. Capital reserve
Unit:RMB
||||||
|-|-|-|-|-|
|||Current period|Current period||
|Projects|31 December 2015|||30 June 2016|
|||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|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 36. Surplus reserve
Unit:RMB
||||||
|-|-|-|-|-|
|||Current period|Current period||
|Projects|31 December 2015|||30 June 2016|
|||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|

 37. Undistributed profits
Unit:RMB
||||
|-|-|-|
||For the six months ended 30 June|For the twelve months ended|
|Projects|||
||2016|31December 2015|
|Undistributed profits at the beginning of year|3,045,551,246.71|2,356,765,374.25|
|Adjustment of retained earnings(add +,minus -)|0.00|0.00|
|Adjusted undistributed profits at the beginning|3,045,551,246.71||
|||2,356,765,374.25|
|of year|||
|Add:net profit attributable to the|||
||542,122,083.86|761,312,261.06|
|shareholders of the company|||
|Less: Dividend|108,789,582.90|72,526,388.60|
|Ending balance of undistributed profits|3,478,883,747.67|3,045,551,246.71|

 38. Sales and cost of sales
Unit:RMB
||||||
|-|-|-|-|-|
||For the six months ended 30 June 2016||For the six months ended 30 June 2015||
|Projects|||||
||Income|Expenses|Income|Expenses|
|Revenue of main|||||
||14,053,796,253.83|13,034,291,774.27|12,772,868,609.63|11,798,432,332.88|
|operations|||||
|Other operating|||||
||35,256,618.05|6,202,018.54|40,934,557.14|3,228,707.54|
|income|||||
|Total|14,089,052,871.88|13,040,493,792.81|12,813,803,166.77|11,801,661,040.42|

 39. Tax and surcharges
Unit:RMB
||||
|-|-|-|
|Projects|For the six months ended 30 June|For the six months ended 30 June 2015|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
||2016||
|Business tax|2,199,084.46|2,983,841.85|
|City maintenance and construction tax|13,760,406.74|12,685,982.46|
|Educational surcharge|9,844,713.44|9,308,250.19|
|Other|1,540,447.27|1,465,615.25|
|Total|27,344,651.91|26,443,689.75|

 40. Selling and distribution expenses
Unit:RMB
||||
|-|-|-|
||For the six months ended 30 June||
|Projects||For the six months ended 30 June 2015|
||2016||
|Employees payroll and welfare benefits|135,746,751.00|112,490,739.45|
|Transportation charges|26,389,084.51|27,939,051.39|
|Promotion and marketing expenses|13,423,741.87|46,124,636.39|
|Conference expenses|3,179,753.28|4,354,342.75|
|Travel allowances|6,975,341.71|7,496,122.39|
|Entertainment expenses|9,905,380.59|10,897,298.61|
|Advertising expenses|3,424,475.42|4,705,456.10|
|Storage expenses|7,584,803.78|4,518,164.34|
|Office allowances|1,701,664.10|1,582,850.88|
|Rental expenses|15,997,974.63|13,666,951.13|
|Depreciation expenses|3,006,584.94|2,937,090.09|
|Other|29,251,799.74|25,361,402.49|
|Total|256,587,355.57|262,074,106.01|

 41. General and administrative expense
Unit:RMB
||||
|-|-|-|
||For the six months ended 30 June||
|Projects||For the six months ended 30 June 2015|
||2016||
|Employees payroll and welfarebenefits|125,009,772.61|104,170,785.32|
|Research and development expenses|25,988,200.63|33,640,577.40|
|Depreciation expenses|17,081,746.52|16,379,344.44|
|Taxations|12,871,722.04|11,862,094.67|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
|Entertainment expenses|2,313,643.28|4,101,888.76|
|Amortisation of intangible assets|3,687,246.77|2,819,911.80|
|Office allowances|2,753,413.81|3,053,398.52|
|Rental expenses|5,783,111.10|2,508,540.85|
|Vehicle management expenses|1,335,994.14|3,060,128.18|
|Conference expenses|28,393.71|117,497.36|
|Maintenance and other charges|940,611.94|1,561,358.97|
|Travel allowances|1,245,097.00|1,572,653.34|
|Utilities|2,195,225.87|2,496,765.25|
|Other|22,530,468.20|16,244,428.49|
|Total|223,764,647.62|203,589,373.35|

 42.Financial expense
Unit:RMB
||||
|-|-|-|
|Projects|For the six months ended 30 June 2016|For the six months ended 30 June 2015|
|Interest expenses|49,265,242.89|66,320,510.56|
|Less: interest income|-4,738,723.87|-2,669,578.08|
|discount in cash|-19,125,086.03|-8,821,521.20|
|Gain and loss from exchanges|-59,027.15|-536,717.77|
|Other|6,086,651.65|4,346,978.89|
|Total|31,429,057.49|58,639,672.40|

 43. Asset impairment loss
Unit:RMB
||||
|-|-|-|
|Projects|For the six months ended 30 June 2016|For the six months ended 30 June 2015|
|Bad debt|16,647.75|-649,892.85|
|Declines in values of inventories|5,480,356.18|7,869,732.74|
|Total|5,497,003.93|7,219,839.89|

 44. Gain from investment
Unit:RMB
||||
|-|-|-|
||For the six months ended 30 June||
|Projects||For the six months ended 30 June 2015|
||2016||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
|Share of profit of investees under|||
||27,791,132.38|28,274,061.44|
|equity method|||
|Gain on disposal of long-term equity|121,754,182.26|0.00|
|investment|||
|Total|149,545,314.64|28,274,061.44|

 Gain on disposal of long-term equity investment is mainly due to the disposal of Zhijun(Suzhou) . In current period, the group disposes its67% equity right of Sinopharm zhijun (Suzhou) at the price of RMB157,800,000.00. Remaining33% equity right of Sinopharm zhijun( Suzhou) would be re measured at fair value at the price of RMB77,722,388.00.
The difference between the total amount of consideration received from transaction that resulted in the loss of control plus the fair value of33% equity right and the net asset of Sinopharm zhijun (Suzhou) calculated continuously from the acquisition date shall be recognized as gain on the investment in this period. And the goodwill related to the subsidiary shall also be derecognized.There is no significant restriction on the remittance of investment income totheGroup.
45. Non-operating income
Unit:RMB
|||||
|-|-|-|-|
||For the six months ended 30|For the six months ended 30||
|Projects|||Amount in Non-routine items|
||June 2016|June 2015||
|Gain on disposal of non-|1,653,712.19|10,297.36||
||||1,653,712.19|
|current assets||||
|Including: Gain on disposal||||
||1,653,712.19|10,297.36|1,653,712.19|
|of fixed assets||||
|Government grants|7,581,599.85|10,567,256.16|7,581,599.85|
|Written off payments|1,000,000.00|146,039.32|1,000,000.00|
|Reversal of payments||||
|Other|2,402,199.15|2,258,696.62|2,402,199.15|
|Total|12,637,511.19|12,982,289.46|12,637,511.19|

 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 grantsProjects||||
||June 2016|June 2015|income|
|Government-funded interest||||
||0.00|1,635,195.84|Related to income|
|discount||||
|Industry grant|214,514.60|0.00|Related to income|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
|Resettlement compensation-||||
||1,353,604.28|1,349,204.28|Related to assets|
|amortization of assets||||
|Others|6,013,480.97|7,582,856.04|Related to assets|
|Total|7,581,599.85|10,567,256.16|--|

46. Non-operating expenses
Unit:RMB
|||||
|-|-|-|-|
||For the six months ended 30|For the six months ended 30||
|Projects|||Amount in Non-routine items|
||June 2016|June 2015||
|Loss on disposal of non-|528,810.92|225,404.59||
||||528,810.92|
|current assets||||
|Including: Losses on||||
||528,810.92|225,404.59|528,810.92|
|disposal of fixed assets||||
|Donations||||
|Other|761,433.52|215,275.79|761,433.52|
|Total|1,290,244.44|440,680.38|1,290,244.44|

 47. Income taxes expenses
(1)Income taxes expenses
Unit:RMB
||||
|-|-|-|
||For the six months ended 30 June||
|Projects||For the six months ended 30 June 2015|
||2016||
|Current income tax|102,852,115.09|93,190,979.53|
|Deferred income tax|7,604,783.35|2,157,874.97|
|Total|110,456,898.44|95,348,854.50|

 (2)The reconciliation from income tax calculated based on applicable tax rates and total
profitpresented in the consolidated financial statements to the income tax expenses is listed below:
Unit:RMB
|||
|-|-|
|Projects|For the six months ended 30 June 2016|
|Total profit|664,828,943.94|
|Income tax expenses calculated at applicable tax rates|166,207,235.99|
|Differences in preferential tax rates of certain companies|-22,599,872.46|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||
|-|-|
|Deferred tax changes with tax rate adjustments|441,368.11|
|Income not subject to tax|-9,266,803.87|
|Expenses not deductible for tax purposes|6,123,051.55|
|Utilization of previously unrecognized tax losses|-30,282,463.96|
|Deductible losses unrecognized as deferred tax assets|-165,616.92|
|Income tax|110,456,898.44|

 48. Cash flow statements
(1)Cash received relating to other operating activities
Unit:RMB
||||
|-|-|-|
||For the six months ended 30 June||
|Projects||For the six months ended 30 June 2015|
||2016||
|Withdraw deposits for bank|||
|acceptance notes and depostis for|1,154,269.04|9,034,563.52|
|letter of credit|||
|Interest income|4,738,723.87|2,669,578.08|
|Government grants except tax return|1,219,863.20|4,926,078.35|
|Rental income|10,837,633.55|10,585,370.80|
|Other|26,267,807.34|12,846,219.50|
|Total|44,218,297.00|40,061,810.25|

 (2)Cash paid relating to other operating activities
Unit:RMB
||||
|-|-|-|
||For the six months ended 30 June||
|Projects||For the six months ended 30 June 2015|
||2016||
|Market development expenses|13,423,741.87|46,124,636.39|
|Research and development expesnses|3,342,315.41|10,782,478.49|
|Rental expenses|21,781,085.73|16,175,491.98|
|Entertainment expenses|12,219,023.87|14,999,187.37|
|Travel expenses|8,220,438.71|9,068,775.73|
|Advertising expenses|3,424,475.42|4,705,456.10|
|Office expenses|4,455,077.91|4,636,249.40|
|Others|91,489,984.23|58,315,031.63|
|Total|158,356,143.15|164,807,307.09|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 (3)Cash received relating to other investing activities
Unit:RMB
||||
|-|-|-|
||For the six months ended 30 June||
|Projects||For the six months ended 30 June 2015|
||2016||
|Repayment of entrusted borrowings|||
|from Sinopharm Group Zhijun|||
||84,000,000.00||
|(Suzhou) Pharmaceutical Co.|||
|Ltd.(Zhijun (Suzhou))|||
|Others|3,200,415.00||
|Total|87,200,415.00||

(4)Cash paid relating to other investing activities
Unit:RMB
||||
|-|-|-|
||For the six months ended 30 June||
|Projects||For the six months ended 30 June 2015|
||2016||
|Deposit|20,000,000.00||
|Others|5,690,544.72||
|Total|25,690,544.72||

(5)Cash received relating to other financing activities
Unit:RMB
||||
|-|-|-|
||For the six months ended 30 June||
|Projects||For the six months ended 30 June 2015|
||2016||
|Accounts receivable factoring without|||
||67,788,435.41||
|recourse|||
|Others|45,000,000.00||
|Total|112,788,435.41||

(6)Cash payments relating to other financing activities
Unit:RMB
||||
|-|-|-|
||For the six months ended 30 June||
|Projects||For the six months ended 30 June 2015|
||2016||
|Others|3,483,135.79|24,066,161.02|
|Total|3,483,135.79|24,066,161.02|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 49. Supplementary information of cash flow statements
(1)Supplementary information of cash flow statements
Unit:RMB
||||
|-|-|-|
||For the six months ended 30 June||
|Supplementary information||For the six months ended 30 June 2015|
||2016||
|1.Reconciliation of net profit to cash|||
||--|--|
|flows from operating activities:|||
|Net profit|554,372,045.50|399,642,260.97|
|Add: Provision for assets impairment|5,497,003.93|7,219,839.89|
|Depreciation of fixed assets and|||
||50,682,049.63|47,945,421.59|
|investment properties|||
|Amortisation of intangible assets|3,567,237.10|3,821,424.91|
|Amortisation of long-term prepaid|||
||4,392,473.69|4,262,640.17|
|expenses|||
|Losses on disposal of fixed assets,|(8,706,501.20)||
|intangible assets, and other non-||(4,114,941.12)|
|current assets|||
||49,265,242.89||
|Financial expenses||66,674,714.71|
|Investment losses|(149,545,314.57)|(28,274,061.44)|
|Decrease of deferred tax assets|43,121,599.87|3,000,326.62|
|Increase of deferred tax liabilities|(3,077,747.31)|(842,451.65)|
|Decrease of inventory|262,892,291.70|88,388,515.28|
|Decrease in operating receivables|(1,162,075,844.51)|(753,547,929.22)|
|Increase in operating payables|832,154,509.87||
|||605,029,254.51|
|Other|10,095,015.64|9,034,563.51|
|Net cash flow from operating activities|492,634,062.23|448,239,578.73|
|2.Significant non-cash investing|||
|activities:|||
|3.Movement of cash|||
|Cash on 30 June 2016|2,030,956,448.63|1,157,555,627.85|
|Less:Cash on 31 December 2015|1,569,226,304.36|854,212,006.84|
|Net increase in cash|461,730,144.27|303,343,621.01|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 (2)Cash received from disposal of subsidiaries and other business units
|||
|-|-|
|Cash received from disposal of subsidiaries|156,111,000.00|
|Deduct：cash and cash equivalents in subsidiaries when loss of||
||27,265,118.87|
|control||
|Net cash received from disposal of subsidiaries|128,845,881.13|

 (3)Composition of cash and cash equivalents
Unit:RMB
||||
|-|-|-|
|Programs|30 June 2016|31 ecember 2014|
|1.Cash|2,030,956,448.63|1,569,226,304.36|
|Including: Cash on hand|99,360.45|109,096.17|
|Call deposits with banks|2,030,857,088.18|1,569,117,208.19|

 50. Foreign currencies projects
Unit:RMB
|||||
|-|-|-|-|
||Financial assets|||
||||Financial assets denominated|
|Projects|denominated in foreign|Exchange rate||
||||in RMB|
||currency|||
|Amout Receivable|--|--||
|Including:US Dollars|1,408,547.29|6.6312|9,340,358.79|
|HK Dollars|136,517.82|0.8547|116,677.69|
|Accounts payable|--|--||
|Including:US Dollars|297,224.00|6.6312|1,970,951.79|

 VIII.Alteration of consolidated financial statement scope
1、Disposal of subsidiaries
Unit:RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Determ|The|Remaini|Book|Fair|Gains|The|The amount|
|Name of||Percenta|||||||||||
||Price of||Method|Timing|ination|difference|ng|value of|value of|or losses|determinatio|of investment|
|the||ge of|||||||||||
||equity||of equity|for loss|of|between|percenta|remainin|remainin|resulting|n method|gains and|
|subsidiar||equity|||||||||||
||disposal||disposal|of control|timing|price of|ge of|g equity|g equity|from the|and its main|losses|
|y||disposal|||||||||||
||||||for loss|equity|equity|when|when|remeasur|hypothesis|transferred|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||of|disposal and|when|loss of|loss of|ement of|of the fair|from other|
||||||control|share of net|loss of|control|control|the|value for the|comprenhensi|
|||||||assets of the|control|||remainin|remaining|ve income|
|||||||subsidiary in||||g equity|equity when|related to|
|||||||consolidated||||by fair|loss of|equity|
|||||||financial||||value|control|investment of|
|||||||statement||||||the disposal|
|||||||||||||subsidiary|
||||||||33.00%||||The fair||
||||||||||||value of net||
||||||Date of||||||||
||||||||||||identifiable||
|China|||||resoluti||||||||
||||||||||||assets in the||
|National|||||on of||||||||
||||Sharehol||||||||assessment||
|Zhijun(S|||||the||||||||
||157,800,00||ding|April||101,479,925.||27,739,7|77,722,3|49,982,6|report on||
|uzhou)||67.00%|||general|||||||0.00|
||0.00||transferr|26th ,2016||38||38.24|88.00|49.82|disposal day||
|Pharmac|||||meetin||||||||
||||ed||||||||is multiplied||
|eutical|||||g of||||||||
||||||||||||by the||
|Co., Ltd|||||shareho||||||||
||||||||||||proportion||
||||||lders||||||||
||||||||||||of holding||
||||||||||||equity||

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|
|Sinopharm Holding|Guangzhou|Guangzhou|Commercial||51.00%|Set up|
|Guangzhou Medical|||||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||||
|-|-|-|-|-|-|-|
|Management Co., Ltd.|||||||
|Zhijun Pharm|Shenzhen|Shenzhen|Manufacturi|100.00%||Business|
||||ng|||combinations|
|||||||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding Jianmin|Shenzhen|Shenzhen|Commercial|100.00%||Business|
|Co., Ltd.||||||combinations|
|||||||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding Material|Shenzhen|Shenzhen|Commercial|100.00%||Business|
|Co., Ltd.||||||combinations|
|||||||involving|
|||||||enterprises under|
|||||||common control|
|Shenzhen Zhijun|Shenzhen|Shenzhen|Commercial|100.00%||Business|
|Pharmaceutical Trade Co.,||||||combinations|
|Ltd.||||||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding Shenzhen|Shenzhen|Shenzhen|Service|100.00%||Business|
|Logistics Co., Ltd.||||||combinations|
|||||||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding|Guangzhou|Guangzhou|Commercial|100.00%||Business|
|Guangzhou Co., Ltd.||||||combinations|
|||||||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding|Guangzhou|Guangzhou|Commercial|100.00%||Business|
|Guangdong Hengxing||||||combinations|
|Pharmaceutical Co., Ltd.||||||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding Yulin|Yulin|Yulin|Commercial||100.00%|Business|
|Co., Ltd.||||||combinations|
|||||||involving|
|||||||enterprises under|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||||
|-|-|-|-|-|-|-|
|||||||common control|
|Sinopharm Medicine Holding|Liuzhou|Liuzhou|Commercial|51.00%||Business|
|Liuzhou Co., Ltd.||||||combinations|
|||||||involving|
|||||||enterprises under|
|||||||common control|
|Guangxi Chinese Herbal|Liuzhou|Liuzhou|Manufacturi||51.00%|Business|
|Pieces|||ng|||combinations|
|||||||involving|
|||||||enterprises under|
|||||||common control|
|Guangdong Huixin Investment|Guangzhou|Guangzhou|Service|100.00%||Business|
|Co., Ltd.||||||combinations|
|||||||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding Foshan|Foshan|Foshan|Commercial|100.00%||Business|
|Co., Ltd.||||||combinations|
|||||||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding|Guangzhou|Guangzhou|Commercial|100.00%||Business|
|Guangdong Yuexing Co.,||||||combinations|
|Ltd.||||||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding|Guangzhou|Guangzhou|Service|100.00%||Business|
|Guangdong Logistics Co.,||||||combinations|
|Ltd.||||||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Guangxi|Nanning|Nanning|Commercial|100.00%||Business|
|||||||combinations|
|||||||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding Guangxi|Nanning|Nanning|Service||100.00%|Business|
|Logistics Co., Ltd.||||||combinations|
|||||||involving|
|||||||enterprises under|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||||
|-|-|-|-|-|-|-|
|||||||common control|
|Zhijun (Shenzhen) Pingshan|Shenzhen|Shenzhen|Manufacturi|100.00%||Business|
||||ng|||combinations|
|||||||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm Holding Wuzhou|Wuzhou|Wuzhou|Commercial||99.90%|Business|
|Co., Ltd.||||||combinations|
|||||||involving|
|||||||enterprises under|
|||||||common control|
|Sinopharm holding Dongguan|Dongguan|Dongguan|Commercial|100.00%||Business|
|Co., Ltd.||||||combinations|
|||||||involving|
|||||||enterprises not|
|||||||under common|
|||||||control|
|Sinopharm Holding Zhanjiang|Zhanjiang|Zhanjiang|Commercial|100.00%||Business|
|Co., Ltd.||||||combinations|
|||||||involving|
|||||||enterprises not|
|||||||under common|
|||||||control|
|Sinopharm Holding Shenzhen|Shenzhen|Shenzhen|Commercial|51.00%||Business|
|Yanfeng Co.,Ltd||||||combinations|
|||||||involving|
|||||||enterprises not|
|||||||under common|
|||||||control|
|Sinopharm Holding Meizhou|Meizhou|Meizhou|Commercial|100.00%||Business|
|Co., Ltd.||||||combinations|
|||||||involving|
|||||||enterprises not|
|||||||under common|
|||||||control|
|Sinopharm Holding Huizhou|Huizhou|Huizhou|Commercial|100.00%||Business|
|Co., Ltd.||||||combinations|
|||||||involving|
|||||||enterprises not|
|||||||under common|
|||||||control|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||||
|-|-|-|-|-|-|
|Sinopharm Holding Zhaoqing|Zhaoqing|Zhaoqing|Commercial|100.00%|Business|
|Co., Ltd.||||||
||||||combinations|
||||||involving|
||||||enterprises not|
||||||under common|
||||||control|
|Sinopharm Holding Jiangmen|Jiangmen|Jiangmen|Commercial|100.00%|Business|
|Renren Co., Ltd.||||||
||||||combinations|
||||||involving|
||||||enterprises not|
||||||under common|
||||||control|
|Sinopharm Holding Shaoguan|Shaoguan|Shaoguan|Commercial|70.00%|Business|
|Co., Ltd.||||||
||||||combinations|
||||||involving|
||||||enterprises not|
||||||under common|
||||||control|
|Sinopharm Holding Shantou|Shantou|Shantou|Commercial|70.00%|Business|
|Co., Ltd.||||||
||||||combinations|
||||||involving|
||||||enterprises not|
||||||under common|
||||||control|

 2. Associates
(1) Financial information of thesignificant cooperative and joint venture
||||||||
|-|-|-|-|-|-|-|
|||Place of|Nature of|Equity interest held||Method of|
|Company name|Place of operation||||||
|||registration|business|Direct|Indirect|accounting|
|ShenzhenWanle|||||||
|Medical Co.,|||||||
||Shenzhen|Shenzhen|Manufacturing|35.19%||Equity|
|Ltd.(Wanle|||||||
|Medical)|||||||
|Sinopharm|||||||
|Holding Zhuhai|||||||
||Zhuhai|Zhuhai|Commercial|10.00%||Equity|
|Co.,Ltd.(Sinophar|||||||
|m Zhuhai)|||||||
|Zhijun (Suzhou)|Suzhou|Suzhou|Manufacturing|33.00%||Equity|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 Board of the directors is the highest decision making organization, which is formed by 3 shareholders of Wanle Medical evenly, each shareholder appoints 2 directors set up the borad.
The highest authority of Sinopharm Zhuhai is the shareholders' committee, and the shareholders exercise their voting rights according to their investment proportion. Meanwhile, Sinopharm Zhuhai set up the board of directors and be responsible for the shareholders, with 3 members in total, and the Company delegates 1 member. One member has 1 voting right, and all of the revolutions should be passed by half of the directors.
X. Related party relationships and significant related party transactions
1. The parent company
|||||||
|-|-|-|-|-|-|
|||||The proportions of||
||||||The proportions of|
|||||equity interests in||
||Place of||Registered||voting rights in the|
|The parent company||Principal business||the Company held||
||registration||capital||Company held by the|
|||||by the parent||
||||||parent company|
|||||company||
|||Industrial Investment||||
|||Holding, Trustee of||||
|||pharmaceutical||||
|||enterprise, Assets||||
||||2,767,095,089|||
|Sinopharm Group|Shanghai|Reorganization,||51.00%|51.00%|
||||yuan|||
|||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:
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||
|-|-|
|Company nace|Relationship with the Company|
|Wanle Medical|Associate|
|Sinopharm Zhuhai|Associate|
|Zhijun(Suzhou)|Associate|

4. Other related parties
|||
|-|-|
|Foshan Nanhai Uptodate & Special Medicines Co., Ltd.|Controlled by Sinopharm Group|
|Foshan Nanhai Medicine Group Co., Ltd|Controlled by Sinopharm Group|
|Foshan Nanhai Medicine Co., Ltd.|Controlled by Sinopharm Group|
|Guangdong Dong Fang Uptodate & Special Medicines Co.,||
||Controlled by Sinopharm Group|
|Ltd.||
|Sinopharm Group Guorui Medicine Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Group Chemical Reagent Suzhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Group Chemical Reagent Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Sanyi Medicine(Wuhu) Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Shanxi Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Group Shanghai Likang Pharmaceutical Co.||
||Controlled by Sinopharm Group|
|Ltd.||
|Sinopharm Group Southwest Medicine Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Xinjiang Xinte Karamay||
||Controlled by Sinopharm Group|
|Pharmaceutical Co., Ltd.||
|Sinopharm Group Xinjiang Special Drugs National||
||Controlled by Sinopharm Group|
|Pharmaceutical Co., Ltd.||
|China National Medicines Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Group Medicine Logistic Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Group (Tianjin) Eastern Bokang||
||Controlled by Sinopharm Group|
|Pharmaceutical Co., Ltd.||
|Sinopharm Holding Tianjin Binhai Pharmaceutical Co., Ltd|Controlled by CNPGC|
|Sinopharm Holding (China) finance leasing Co., Ltd|Controlled by CNPGC|
|Sinopharm Holding Anhui Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Anqing Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Anyang Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Beijing Huahong 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 2016
|||
|-|-|
|Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical||
||Controlled by Sinopharm Group|
|Co., Ltd.||
|Sinopharm Holding Beijing Tianxing Puxin Biological||
||Controlled by Sinopharm Group|
|Medical Co., Ltd.||
|Sinopharm Holding Beijing Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Changde Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Changzhou Medical logistics center||
||Controlled by Sinopharm Group|
|Co., Ltd.||
|Sinopharm Holding Changzhou 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 Chifeng Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Dalian Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Dezhou Co., Ltd.|Controlled by Sinopharm Group|
|China National Pharmaceutical Industry Medicine||
||Controlled by Sinopharm Group|
|distribution Co. Ltd.||
|Sinopharm Holding Fujian Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Fuzhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Gansu Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Shanghai management consulting||
||Controlled by Sinopharm Group|
|branch||
|Sinopharm Holding Guizhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Guoda Drug Store(Shenzhen) Chain Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Guoda Drug Store Guangdong Co.,||
||Controlled by Sinopharm Group|
|Ltd.||
|Sinopharm Guoda Drug Store Guangxi Chain Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Guoda Drug Store Guangzhou Chain Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Guoda Drug Store Jiangmen Chain Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Guoda Drugstore Co., Ltd|Controlled by Sinopharm Group|
|Sinopharm Holding Hainan Hongyi Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Hainan Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Henan Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Heilongjiang Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Hubei 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 2016
|||
|-|-|
|Sinopharm Holding Hunan Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Huaideju Pharmaceutical (Xiamen)||
||Controlled by Sinopharm Group|
|Co., Ltd.||
|Sinopharm Holding Jilin Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Jining Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Jiangsu Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Jiangxi Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Jinzhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Jingmen Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Liaocheng Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding linju Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding longyan 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 Macheng Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Nanping New Power Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Nantong Co., Ltd.||
|Sinopharm Holding Neimenggu Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Ningde Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Ningxia Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Putian Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Putyang Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Qianxinan Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Qingdao Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Qinghai Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Quanzhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Sanming Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Sandong Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Shanxi Linfen Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Shanxi Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Shanxi Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Shangqiu 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 2016
|||
|-|-|
|Sinopharm Holding Shanyang 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 Suzhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Taizhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Tianjin North Medicine Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Tianjin Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Medicine Holding Tianjin Co.,Ltd Distribution||
||Controlled by Sinopharm Group|
|Center||
|Sinopharm Holding Wenzhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Wuxi Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Wuhu Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Xizang Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Hongkong International Co. Ltd|Controlled by Sinopharm Group|
|Sinopharm Holding Xiangtan Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Xiangxi Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Xinjiang Special Drugs Western||
||Controlled by Sinopharm Group|
|Pharmaceutical Co., Ltd.||
|Sinopharm Holding Xinxiang Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Xinyu Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Xuzhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Yantai Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Yancheng Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Yangzhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding (Yangzhou) Chinese Western Medicine||
||Controlled by Sinopharm Group|
|Branch Co., Ltd.||
|Sinopharm Holding Yunnan Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Zhangzhou Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Zhejiang Biological Product Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Zhejiang Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Chongqing Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Zhoukou 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 2016
|||
|-|-|
|Sinopharm Holding Zunyi Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Lerentang Hebei Medicine Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Lerentang Qinhuangdao Medicine Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Lerentang shijiazhuangMedicine Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Lerentang Tangshan Medicine Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Lerentang Medicine Co., Ltd.|Controlled by Sinopharm Group|
|Handan Pharmaceutical Co., Ltd|Subsdiary of Fosun Pharm|
|Hetian Region Ankang Chain Drugstore Co., Ltd.|Controlled by Sinopharm Group|
|Shanxi Guoyi Drug Store Co., Ltd.|Controlled by Sinopharm Group|
|Shanghai Donghong Medicine Co., Ltd.|Controlled by Sinopharm Group|
|Shanghai Meiluo Medicine Co., Ltd.|Controlled by Sinopharm Group|
|Shanghai Nuoyun Marketing Consulting Co., Ltd.|Controlled by Sinopharm Group|
|Shanghai Tongyu Information Technology Co., Ltd.|Controlled by Sinopharm Group|
|Sinopharm Holding Guoda Qunkang Drug Store Taizhou||
||Controlled by Sinopharm Group|
|Co., Ltd.||
|Sinopharm Holding Shanghai Co., Ltd.|Controlled by Sinopharm Group|
|Anhui Jingfang Pharmaceutical Co., Ltd.|Controlled by CNPGC|
|Beijing Fusheng Tiandi Property Management Ltd.|Controlled by CNPGC|
|Beijing Huasheng Pharmaceutical Biotechnology||
||Controlled by CNPGC|
|Development Co., Ltd.||
|Chengdu Rongsheng Pharmacy Co., Ltd.|Controlled by CNPGC|
|Foshan YingTian Medicine Sales Co., Ltd.|Controlled by CNPGC|
|Guangdong Medi-World Pharmacertical Co., Ltd.|Controlled by CNPGC|
|Guang dong South Pharmaceutical Foreign Trade Co., Ltd.|Controlled by CNPGC|
|Guizhou Longlife Pharmacertical Co., Ltd.|Controlled by CNPGC|
|Guizhou Tongjitang Pharmaceutical Co., Ltd.|Controlled by CNPGC|
|Sinopharm (Shanghai) E-Health Co,.Ltd.|Controlled by CNPGC|
|Group Financial Co.|Controlled by CNPGC|
|Foshan Dezhong Pharmaceutical Co., Ltd.|Controlled by CNPGC|
|Foshan Fengliaoxing Pharmaceutical Co., Ltd.|Controlled by CNPGC|
|Foshan Fengliaoxing Medicine Co., Ltd.|Controlled by CNPGC|
|Guangdong Medi-World Pharmacertical Co., Ltd.|Controlled by CNPGC|
|Sinopharm Group Guangdong Medicine Device Co., Ltd.|Controlled by CNPGC|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||
|-|-|
|Sinopharm Group Guangdong Medical Inspection Co., Ltd|Controlled by CNPGC|
|Anhui Jingfang Pharmaceutical Co., Ltd.|Controlled by CNPGC|
|Sinopharm United Medical Device Co.,Ltd|Controlled by CNPGC|
|Sinopharm United Luya (Shandong) Pharmaceutical Co.,Ltd|Controlled by CNPGC|
|Sinopharm Group Rongsheng Pharmaceutical Co., Ltd.|Controlled by CNPGC|
|Sinopharm United Shantou Jinshi Pharmaceutical Co.,Ltd|Controlled by CNPGC|
|Sinopharm Group Shanghai Medicine Device Co., Ltd.|Controlled by CNPGC|
|Sinopharm Group Guizhou Tongjitang Pharmaceutical||
||Controlled by CNPGC|
|Co., Ltd.||
|Sinopharm Group Weiqida Medicine Co., Ltd.|Controlled by CNPGC|
|Sinopharm United Wuhan ZhongLian SiYao Pharmaceutical||
||Controlled by CNPGC|
|Co.,Ltd||
|China National Scientific Instruments & Materials Imp/Exp||
||Controlled by CNPGC|
|Shenzhen CO., Ltd||
|Sinopharm United Zhonglian Pharmaceutical Co.,Ltd|Controlled by CNPGC|
|Sinopharm Holding Financial Co., Ltd|Controlled by CNPGC|
|Reed Sinopharm Exhibitions Co., Ltd.|Controlled by CNPGC|
|Heilongjiang Sinopharm Medical Herbs Co., Ltd.|Controlled by CNPGC|
|Group Financial Co.|Controlled by CNPGC|
|Lanzhou Institute of Biological Products Co., Ltd.|Controlled by CNPGC|
|Qinghai Medical Pharmaceutical Material Co., Ltd.|Controlled by CNPGC|
|Shanghai Modern Hasen (Shangqiu) Pharmacertical Co.,||
||Controlled by CNPGC|
|Ltd.||
|Shanghai Shyndec Pharmaceutical Co., Ltd|Controlled by CNPGC|
|Shanghai Shyndec Pharmaceutical Markteing Co., Ltd|Controlled by CNPGC|
|Shanghai Institute of Pharmaceutical Industry|Controlled by CNPGC|
|Sichuan Jiangyouzhongbeifuzi Science Development Co., Ltd.|Controlled by CNPGC|
|Wuhan Institute of Biological Products Co., Ltd.|Controlled by CNPGC|
|China National Pharmaceutical Group Corporation|Controlled by CNPGC|
|China National Scientific Instruments and Materials Corporation|Controlled by CNPGC|
|China National Pharmaceutical Foreign Trade Co., Ltd.|Controlled by CNPGC|
|China State Institute of Pharmaceutical Industry|Controlled by CNPGC|
|Sino Pharmengin Corporation|Controlled by CNPGC|
|Sinopharm Chongqing Pharmaceutical and Medical Industry|Controlled by CNPGC|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||
|-|-|
|Design Institute||
|China National Pharmaceutical group|Controlled by CNPGC|
|China National Traditional Chinese Medicine Corporation|Controlled by CNPGC|
|Shenzhen Wanwei Medicine trading Co., Ltd.|Subsidiary of Wanle Medical|
|Kangxinda Pharmaceutical Co., Ltd.|Associate of Sinopharm Group|
|Yichang Humanwell Pharmaceutical Co., Ltd.|Associate of Sinopharm Group|
|Sino-Swed Pharmaceutical Co.,Ltd|Associate of CNPGC|
|China Otsuka Pharmaceutical Co., Ltd.|Associate of CNPGC|
|Foshan Chancheng Pharmaceutical Co., Ltd|Subsdiary of Fosun Pharm|
|Foshan Chancheng District Central Hospital|Subsdiary of Fosun Pharm|
|Foshan Chanyixing Medicine Development Co Ltd|Subsdiary of Fosun Pharm|
|Guilin South pharmaceutical Co., Ltd.|Subsdiary of Fosun Pharm|
|Hunan Dongting Pharmaceutical Co., Ltd.|Subsdiary of Fosun Pharm|
|Jiangsu Huanghe Pharmaceutical Co., Ltd|Subsdiary of Fosun Pharm|
|Jiangsu Wanbang Pharmacy Marketing Co., Ltd.|Subsdiary of Fosun Pharm|
|Shanghai Chaohui Pharmecurical Co., Ltd.|Subsdiary of Fosun Pharm|
|Shenyang Hongqi Pharmaceutical Co., Ltd.|Subsdiary of Fosun Pharm|
|Sichuan Hexin Pharmaceutical Co., Ltd.|Subsdiary of Fosun Pharm|
|Suzhou Erye Pharmaceutical Limited Company|Subsdiary of Fosun Pharm|
|Chongqing Haisiman Pharmaceutical Co., Ltd.|Subsdiary of Fosun Pharm|
|Chongqing Yaoyou Pharmaceutical Co., Ltd.|Subsdiary of Fosun Pharm|
||Business combinations involving enterprises not under|
|Jiangmen Renren Medical instrument Co.,Ltd||
||common control|
|Shaoguan Wujiang District Muyang Medicine Information||
||Controlled by minority interest of subsidiary|
|Consultant Co., Ltd.||
|Wang Yang|Family member of minority interest of subsidiary|

5. Related party transactions
(1)Purchase/Sales of goods, Purchase/Rendering of servic
Purchase of goods / Purchase of service
|||||||
|-|-|-|-|-|-|
||Related party|For the six|Approved trading|Whether exceed|For the six months|
|Related party||||||
||transactions|months ended|limit|trading limit|ended|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||||
|-|-|-|-|-|-|
|||30 June 2016|||30 June 2015|
|Sinopharm||||||
|Holding Sub|Purchase of|||||
|||568,701,470.91||No|473,896,462.97|
|Marketing Center|goods|||||
|Co., Ltd.||||||
||Purchase of|||||
|Sinopharm Group||188,596,537.34||No|220,482,005.40|
||goods|||||
|China National||||||
||Purchase of|||||
|Medicines Co.,||150,037,440.34||No|182,000,081.49|
||goods|||||
|Ltd.||||||
|Sino-Swed||||||
||Purchase of|||||
|Pharmaceutical||52,912,528.38||No|44,774,861.25|
||goods|||||
|Co.,Ltd||||||
||Purchase of|||||
|||51,634,488.03||No||
|Zhijun(Suzhou)|goods|||||
|Guang dong||||||
|South||||||
||Purchase of|||||
|Pharmaceutical||51,435,374.10||No|24,983,541.39|
||goods|||||
|Foreign Trade||||||
|Co., Ltd.||||||
||||2,700,000,000.00|||
|Foshan Nanhai||||||
|Uptodate &|Purchase of|||||
|||30,666,615.32||No|14,813,289.21|
|Special Medicines|goods|||||
|Co., Ltd.||||||
|Jiangsu Wanbang||||||
|Pharmacy|Purchase of|||||
|||29,139,970.85||No|21,718,308.34|
|Marketing Co.,|goods|||||
|Ltd.||||||
||Purchase of|||||
|Wanle Medical.||22,849,679.65||No|-7,097.80|
||goods|||||
|Lanzhou Institute||||||
||Purchase of|||||
|of Biological||16,915,410.00||No|10,770,840.00|
||goods|||||
|Products Co., Ltd.||||||
|Foshan Nanhai|Purchase of|||||
|||16,573,411.01||No|338,654.17|
|Medicine Co., Ltd.|goods|||||
|Chongqing||||||
|Yaoyou|Purchase of|||||
|||15,973,063.30||No|11,561,348.52|
|Pharmaceutical|goods|||||
|Co., Ltd.||||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||
|-|-|-|-|-|
|Shenzhen|||||
||Purchase of||||
|Wanwei Medicine||13,361,816.77|No|37,187,026.99|
||goods||||
|trading Co., Ltd.|||||
|Chengdu|||||
|Rongsheng|Purchase of||||
|||8,270,140.00|No|8,372,573.00|
|Pharmacy Co.,|goods||||
|Ltd.|||||
|Sichuan Hexin|||||
||Purchase of||||
|Pharmaceutical||5,664,973.33|No|441,452.30|
||goods||||
|Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Lerentang Hebei||3,897,198.94|No||
||goods||||
|Medicine Co., Ltd.|||||
|Foshan YingTian|||||
||Purchase of||||
|Medicine Sales||3,413,610.89|No|10,095,226.43|
||goods||||
|Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Holding Beijing||1,909,025.93|No|1,368,186.29|
||goods||||
|Huahong Co., Ltd.|||||
|Chongqing|||||
|Haisiman|Purchase of||||
|||1,762,537.60|No|2,290,382.37|
|Pharmaceutical|goods||||
|Co., Ltd.|||||
|Guangdong Dong|||||
|Fang Uptodate &|Purchase of||||
|||1,386,346.49|No|3,073,788.88|
|Special Medicines|goods||||
|Co., Ltd|||||
|Guizhou|||||
|Tongjitang|Purchase of||||
|||1,359,770.86|No||
|Pharmaceutical|goods||||
|Co., Ltd.|||||
|Shanghai|||||
|Shyndec|Purchase of||||
|||892,628.83|No||
|Pharmaceutical|goods||||
|Markteing Co., Ltd|||||
|Yichang|||||
|Humanwell|Purchase of||||
|||807,224.79|No|122,603.64|
|Pharmaceutical|goods||||
|Co., Ltd.|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||
|-|-|-|-|-|
|China Otsuka|||||
||Purchase of||||
|Pharmaceutical||666,425.29|No|589,739.54|
||goods||||
|Co., Ltd.|||||
|Sinopharm|||||
|Holding Chengdu|Purchase of||||
|||550,363.50|No|346,153.85|
|Pharmaceutical|goods||||
|Co., Ltd.|||||
|Wuhan Institute of|||||
||Purchase of||||
|Biological||493,200.00|No|3,936,356.00|
||goods||||
|Products Co., Ltd.|||||
|Sinopharm Group|||||
|Rongsheng|Purchase of||||
|||490,878.97|No|760,017.61|
|Pharmaceutical|goods||||
|Co., Ltd.|||||
|Sinopharm United|||||
|Zhonglian|Purchase of||||
|||468,360.38|No|343,373.23|
|Pharmaceutical|goods||||
|Co.,Ltd|||||
|Anhui Jingfang|||||
||Purchase of||||
|Pharmaceutical||386,218.80|No||
||goods||||
|Co., Ltd.|||||
|Sinopharm Group|||||
||Purchase of||||
|Chemical Reagent||356,338.12|No|624,526.11|
||goods||||
|Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Holding Hunan||288,410.89|No|130,865.31|
||goods||||
|Co., Ltd.|||||
|Foshan|||||
|Fengliaoxing|Purchase of||||
|||286,763.40|No|9,415.93|
|Pharmaceutical|goods||||
|Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Holding Zhuhai||200,213.57|No||
||goods||||
|Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Holding Fujian||177,999.15|No||
||goods||||
|Co., Ltd.|||||
|Sinopharm|Purchase of||||
|||177,189.49|No|11,777,123.06|
|Holding Guizhou|goods||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||
|-|-|-|-|-|
|Co., Ltd.|||||
|Sinopharm Group|||||
||Purchase of||||
|Guorui Medicine||119,682.05|No|234,240.60|
||goods||||
|Co., Ltd.|||||
|Hunan Dongting|||||
||Purchase of||||
|Pharmaceutical||90,500.43|No|53,955.90|
||goods||||
|Co., Ltd.|||||
|Shenyang Hongqi|||||
||Purchase of||||
|Pharmaceutical||76,759.34|No|240,758.99|
||goods||||
|Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Holding Hainan||73,807.69|No||
||goods||||
|Co., Ltd.|||||
|Sichuan|||||
|Jiangyouzhongbei|||||
||Purchase of||||
|fuzi Science||63,716.81|No|63,716.82|
||goods||||
|Development Co.,|||||
|Ltd.|||||
|Sinopharm|||||
|Holding|Purchase of||||
|||63,336.00|No||
|Quanzhou Co.,|goods||||
|Ltd.|||||
|Sinopharm Guoda|||||
|Drug|Purchase of||||
|||51,245.58|No|48,160.32|
|Store(Shenzhen)|goods||||
|Chain Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Holding Hubei||51,183.59|No|229,075.88|
||goods||||
|Co., Ltd.|||||
|Sinopharm|||||
|Xingsha|Purchase of||||
|||50,607.72|No|60,354.91|
|Pharmaceuticals|goods||||
|(Xiamen) Co., Ltd.|||||
|Sinopharm|||||
|Lerentang|Purchase of||||
|||16,168.58|No||
|Shijiazhuang|goods||||
|Medicine Co., Ltd.|||||
|Guilin South|Purchase of||||
|||12,564.10|No|226,311.99|
|pharmaceutical|goods||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||
|-|-|-|-|-|
|Co., Ltd.|||||
|Sinopharm United|||||
|Shantou Jinshi|Purchase of||||
|||5,829.23|No||
|Pharmaceutical|goods||||
|Co.,Ltd|||||
|Sinopharm|||||
||Purchase of||||
|Holding Beijing||1,613.68|No|1,633,846.16|
||goods||||
|Co., Ltd.|||||
|Shanghai Modern|||||
|Hasen (Shangqiu)|Purchase of||||
|||-60.13|No|87,488.42|
|Pharmacertical|goods||||
|Co., Ltd.|||||
|Suzhou Erye|||||
||Purchase of||||
|Pharmaceutical||-105.56|No|49,594.02|
||goods||||
|Limited Company|||||
|China National|||||
|Pharmaceutical|Purchase of||||
|||-760.00|No|530,655.75|
|Foreign Trade|goods||||
|Co., Ltd.|||||
|Shanghai|||||
|Shyndec|Purchase of||||
|||-1,270.33|No|993,581.20|
|Pharmaceutical|goods||||
|Markteing Co., Ltd|||||
|Sinopharm|||||
|Holding Beijing|||||
||Purchase of||||
|Tianxing Puxin||-24,401.46|No|2,062,006.33|
||goods||||
|Biological Medical|||||
|Co., Ltd.|||||
|Qinghai|||||
||Purchase of||||
|Pharmaceutical|||No|4,514,443.50|
||goods||||
|(Group) Co., Ltd.|||||
|Sinopharm|||||
||Purchase of||||
|Holding Macheng|||No|-214.86|
||goods||||
|Co., Ltd.|||||
|Sinopharm Group|||||
||Purchase of||||
|Weiqida Medicine|||No|2,980,769.22|
||goods||||
|Co., Ltd.|||||
|Beijing Huasheng|Purchase of||||
||||No|1,165,876.23|
|Pharmaceutical|goods||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
|Biotechnology||||
|Development Co.,||||
|Ltd.||||
|Guizhou||||
|Tongjitang|Purchase of|||
|||No|1,658,359.36|
|Pharmaceutical|goods|||
|Co., Ltd.||||
|Anhui Jingfang||||
||Purchase of|||
|Pharmaceutical||No|535,332.58|
||goods|||
|Co., Ltd.||||
|Sinopharm Group||||
||Purchase of|||
|Chemical Reagent||No|161,323.08|
||goods|||
|Suzhou Co., Ltd.||||
|Handan||||
||Purchase of|||
|Pharmaceutical||No|150,992.73|
||goods|||
|Co., Ltd||||
|Sinopharm||||
||Purchase of|||
|Holding Jiangsu||No|-19,408.20|
||goods|||
|Co., Ltd.||||
|Sinopharm Group||||
||Purchase of|||
|Southwest||No|305,128.20|
||goods|||
|Medicine Co., Ltd.||||
|Sinopharm||||
||Purchase of|||
|Holding Shanxi||No|5,230.38|
||goods|||
|Co., Ltd.||||
|China National||||
|Scientific||||
|Instruments &|Purchase of|||
|||No|1,549,539.30|
|Materials Imp/Exp|goods|||
|Shenzhen CO.,||||
|Ltd||||
|Foshan||||
|Fengliaoxing|Purchase of|||
|||No|168,830.34|
|Pharmaceutical|goods|||
|Co., Ltd.||||
|Sinopharm||||
||Purchase of|||
|Holding Luoyang||No|97,094.01|
||goods|||
|Co., Ltd.||||
|Sinopharm|Purchase of|No|11,282.05|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||||
|-|-|-|-|-|-|
|Holding Dalian|goods|||||
|Co., Ltd.||||||
|Sinopharm||||||
||Purchase of|||||
|Holding Hainan||||No|5,864.40|
||goods|||||
|Hongyi Co., Ltd.||||||
|Sinopharm Group||||||
|Guangdong||||||
||Purchase of|||||
|Medical||||No|632.48|
||goods|||||
|Inspection Co.,||||||
|Ltd||||||
|Sinopharm||||||
|Holding Sanyi|Purchase of|||||
|||||No|-1,054.87|
|Medicine(Wuhu)|goods|||||
|Co., Ltd.||||||
|Guangdong Medi-||||||
|World|Purchase of|||||
|||||No|-427.18|
|Pharmacertical|goods|||||
|Co., Ltd.||||||
|Sinopharm||||||
||Purchase of|||||
|Holding Suzhou||||No|187.18|
||goods|||||
|Co., Ltd.||||||
|Guizhou Longlife||||||
||Purchase of|||||
|Pharmaceutical||||No|-25.64|
||goods|||||
|Co., Ltd.||||||
|Sinopharm||||||
|Chongqing||||||
||Pinshan|||||
|Pharmaceutical||||||
||management|7,905,682.00||No|527,358.49|
|and Medical||||||
||fees|||||
|Industry Design||||||
|Institute||||||
|Sinopharm Group|Transportation|||||
|Medicine Logistic|and warehousing|718,681.16||No|922,860.39|
||||45,400,000.00|||
|Co., Ltd.|charges|||||
|Sinopharm||||||
|Holding Tianjin|Information|||||
|Binhai|system|182,109.39||No||
|Pharmaceutical|maintenance|||||
|Co., Ltd||||||
|Shanghai Institute|Research and|||||
|||58,490.57||No|175,471.70|
|of Pharmaceutical|development|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||
|-|-|-|-|-|
|Industry|expenses||||
|Reed Sinopharm|||||
||Exhibition||||
|Exhibitions Co.,||28,301.89|No|34,000.00|
||expenses||||
|Ltd.|||||
|Shanghai Tongyu|||||
||Information||||
|Information|||||
||system|4,583.00|No||
|Technology Co.,|||||
||maintenance||||
|Ltd.|||||
|Sinopharm Group|Research and||||
|Chemical Reagent|development||No|1,625.64|
|Suzhou Co., Ltd.|expenses||||
|Sinopharm|||||
|Holding Shanghai|Other labor||||
||||No|3,600.00|
|Management|service||||
|Consulting Branch|||||
|Sinopharm|Research and||||
|Xingsha|development||No|16,500.00|
|Phamaceuticals|expenses||||
|Sinopharm|||||
|Chongqing|||||
|Pharmaceutical|Other labor||||
||||No|31,325,674.00|
|and Medical|service||||
|Industry Design|||||
|Institute|||||
|Sinopharm Group|Information||||
|Medicine Logistic|System||No|443,026.99|
|Co., Ltd.|Maintenance||||
|China National|Other labor||No||
|Scientific|service||||
|Instruments and||||192,500.00|
|Materials|||||
|Corporation|||||
|Sinopharm|Designing fee||No||
|Chongqing|||||
|Pharmaceutical|||||
|||||1,129,620.00|
|and Medical|||||
|Industry Design|||||
|Institute|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 Sales of goods /Rendering of service
|||||
|-|-|-|-|
||Content of related party|For the six months ended|For the six months ended|
|Related party||||
||transactions|30 June 2016|30 June 2015|
|Foshan Nanhai Uptodate &||||
||Sales of goods|85,251,516.18|76,833,546.36|
|Special Medicines Co., Ltd.||||
|Foshan Nanhai Medicine||||
||Sales of goods|70,057,124.03|40,499,542.53|
|Co., Ltd.||||
|Sinopharm Holding Hunan||||
||Sales of goods|68,864,202.26|77,915,186.98|
|Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|52,333,470.32|47,623,472.79|
|Shandong Co., Ltd.||||
|Sinopharm Holding Sichuan||||
||Sales of goods|46,976,751.29|43,440,891.95|
|Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|43,307,281.14|34,048,558.78|
|Guangdong Co., Ltd.||||
|Sinopharm Group (Tianjin)||||
|Eastern Bokang|Sales of goods|36,181,230.83|37,385,364.68|
|Pharmaceutical Co., Ltd.||||
|Sinopharm Holding Beijing||||
||Sales of goods|35,798,000.64|40,646,909.68|
|Co., Ltd.||||
|Sinopharm Holding Hubei||||
||Sales of goods|33,887,216.22|32,219,359.25|
|Co., Ltd.||||
|Sinopharm Lerentang||||
||Sales of goods|32,140,042.44|34,684,209.72|
|Medicine Co., Ltd.||||
|Sinopharm Group Xinjiang||||
|Special Drugs National|Sales of goods|29,352,419.59|31,056,792.97|
|Pharmaceutical Co., Ltd.||||
|Sinopharm Holding Hainan||||
||Sales of goods|27,218,791.88|42,611,254.30|
|Co., Ltd.||||
|Sinopharm Holding Sub||||
||Sales of goods|24,658,285.65|15,497,277.04|
|Marketing Center Co., Ltd.||||
|Sinopharm Holding Hainan||||
||Sales of goods|19,236,469.43|12,678,051.93|
|Hongyi Co., Ltd.||||
|Sinopharm Guoda Drug||||
|Store Guangxi Chain Co.,|Sales of goods|18,682,460.41|16,268,845.77|
|Ltd.||||
|Sinopharm Holding Beijing||||
||Sales of goods|15,936,026.85|31,818,003.87|
|Huahong Co., Ltd.||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
|Foshan Chancheng District||||
||Sales of goods|15,516,838.32|8,798,005.75|
|Pharmaceutical Co., Ltd||||
|Sinopharm Group Southwest||||
||Sales of goods|15,149,699.76|15,212,888.04|
|Medicine Co., Ltd.||||
|Sinopharm Holding Nantong||||
||Sales of goods|14,242,985.57|12,309,543.99|
|Co., Ltd.||||
|Sinopharm Holding Fujian||||
||Sales of goods|13,434,604.44|1,708,344.06|
|Co., Ltd.||||
|Sinopharm Holding Tianjin||||
||Sales of goods|12,740,834.92|15,395,118.07|
|Co., Ltd.||||
|Sinopharm Holding Xinjiang||||
|Special Drugs Western|Sales of goods|12,599,132.27|11,741,123.13|
|Pharmaceutical Co., Ltd.||||
|Sinopharm Holding Wenzhou||||
||Sales of goods|12,478,635.27|15,099,938.24|
|Co., Ltd.||||
|Sinopharm Holding Henan||||
||Sales of goods|11,471,773.17|8,870,236.38|
|Co., Ltd.||||
|Sinopharm Holding Ningxia||||
||Sales of goods|10,444,389.37|21,192,630.53|
|Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|10,304,627.64|5,782,044.41|
|Shenyang Co., Ltd.||||
|Guangdong Dong Fang||||
|Uptodate & Special|Sales of goods|10,030,554.75|7,213,575.88|
|Medicines Co., Ltd.||||
|Sinopharm Holding Yunnan||||
||Sales of goods|8,833,790.34|9,419,118.45|
|Co., Ltd.||||
|Sinopharm Holding Jinzhou||||
||Sales of goods|8,807,076.90|9,282,821.20|
|Co., Ltd.||||
|Sinopharm Group|Sales of goods|6,364,221.28|15,579,638.74|
|Sinopharm Holding Guizhou||||
||Sales of goods|6,233,062.21|5,116,359.93|
|Co., Ltd.||||
|Sinopharm Holding Shanxi||||
||Sales of goods|5,366,483.57|5,960,444.74|
|Co., Ltd.||||
|Sinopharm Holding Zhejiang||||
||Sales of goods|5,325,652.26|11,611,214.64|
|Co., Ltd.||||
|Sinopharm Holding Shanxi||||
||Sales of goods|5,081,614.34|5,999,416.05|
|Co., Ltd.||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
|Sinopharm Holding Yanghou||||
||Sales of goods|4,913,339.55|3,253,616.01|
|Co., Ltd.||||
|Sinopharm Guoda Drug||||
|Store Jiangmen Chain Co.,|Sales of goods|4,336,964.46|4,525,339.36|
|Ltd.||||
|Sinopharm Holding||||
||Sales of goods|3,997,588.86|660,609.25|
|Quanzhou Co., Ltd.||||
|Sinopharm Holding Fuzhou||||
||Sales of goods|3,601,288.32|9,718,182.05|
|Co., Ltd.||||
|Sinopharm Holding Gansu||||
||Sales of goods|3,362,121.29|2,123,949.16|
|Co., Ltd.||||
|Sinopharm Holding Jilin Co.,||||
||Sales of goods|3,164,190.61|1,580,127.02|
|Ltd.||||
|Shanghai Meiluo Medicine||||
||Sales of goods|3,045,513.70|77,694.03|
|Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|2,899,049.29|3,443,566.66|
|Heilongjiang Co., Ltd.||||
|Sinopharm Holding Dalian||||
||Sales of goods|2,027,426.28|607,011.05|
|Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|1,801,268.11|24,094.37|
|Zhangzhou Co., Ltd.||||
|Sinopharm Holding Lunan||||
||Sales of goods|1,785,466.80|978,264.96|
|Co., Ltd.||||
|Sinopharm Group|Sales of goods|1,710,201.91|2,441,499.27|
|Sinopharm Holding Taizhou||||
||Sales of goods|1,656,489.97|732,858.62|
|Co., Ltd.||||
|Sinopharm Holding Qinghai||||
||Sales of goods|1,653,878.60|2,037,902.58|
|Co., Ltd.||||
|Sinopharm Holding Putian||||
||Sales of goods|1,577,814.38|381,461.55|
|Co., Ltd.||||
|Sinopharm Holding Ningde||||
||Sales of goods|1,577,663.39|464,264.03|
|Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|1,302,481.16|1,604,406.39|
|Yancheng Co., Ltd.||||
|Sinopharm Holding Chengdu||||
||Sales of goods|1,213,270.34|4,656,653.54|
|Pharmaceutical Co., Ltd.||||
|Sinopharm Holding Wuxi|Sales of goods|1,035,374.53|1,593,582.85|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
|Co., Ltd.||||
|Sinopharm Holding Zhuhai||||
||Sales of goods|958,664.01||
|Co., Ltd.||||
|Sinopharm Holding Xuzhou||||
||Sales of goods|857,990.21|910,548.70|
|Co., Ltd.||||
|Foshan Chancheng District||||
||Sales of goods|803,677.81|3,007,579.36|
|Central Hospital||||
|Sinopharm Holding Guoda||||
||Sales of goods|792,731.07|1,307,427.35|
|Drugstore Co., Ltd||||
|Sinopharm Holding||||
||Sales of goods|788,490.12|591,571.81|
|Chongqing Co., Ltd.||||
|Sinopharm Holding Longyan||||
||Sales of goods|668,135.86|794,650.72|
|Co., Ltd.||||
|Sinopharm Holding Suzhou||||
|Kangmin Pharmaceutical Co.|Sales of goods|544,607.78|1,125,856.31|
|Ltd.||||
|Sinopharm Group||||
|Guangdong Medicine Device|Sales of goods|530,769.23||
|Co., Ltd.||||
|Shanghai Donghong||||
||Sales of goods|524,820.49|63,538.46|
|Medicine Co., Ltd.||||
|Sinopharm Holding Sanming||||
||Sales of goods|523,407.96|237,305.65|
|Co., Ltd.||||
|Sinopharm Holding Shanxi||||
||Sales of goods|457,913.35|442,999.38|
|Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|421,401.42|1,529,454.28|
|Neimenggu Co., Ltd.||||
|Sinopharm Lerentang||||
||Sales of goods|374,337.49|1,254,769.21|
|Tangshan Medicine Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|288,871.53||
|Neimenggu Co., Ltd.||||
|Sinopharm Holding Jiangxi||||
||Sales of goods|276,013.09|228,099.69|
|Co., Ltd.||||
|Sinopharm Medicine Holding||||
|Tianjin Co.,Ltd Distribution|Sales of goods|271,102.57||
|Center||||
|Sinopharm Holding||||
||Sales of goods|184,263.50|356,495.77|
|Changzhou Medical logistics||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
|center Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|168,011.08|199,355.46|
|Jiangmen Renren Co., Ltd.||||
|China National Scientific||||
|Instruments & Materials|Sales of goods|162,461.52|81,230.76|
|Imp/Exp Shenzhen CO., Ltd||||
|Sinopharm Holding Guoda||||
|Kangqun Drug Store Taizhou|Sales of goods|145,087.38||
|Co., Ltd.||||
|Sinopharm Holding Xizang||||
||Sales of goods|110,779.49||
|Co., Ltd.||||
|Sinopharm Holding Anqing||||
||Sales of goods|88,830.32|327,912.83|
|Co., Ltd.||||
|Sinopharm Holding Suzhou||||
||Sales of goods|81,897.44|68,948.73|
|Co., Ltd.||||
|Sinopharm Holding Yantai||||
||Sales of goods|71,774.36|227,815.40|
|Co., Ltd.||||
|Sinopharm Holding Wuhu||||
||Sales of goods|51,282.05||
|Co., Ltd.||||
|Sinopharm Holding Jiangsu||||
||Sales of goods|47,193.17|309,194.86|
|Co., Ltd.||||
|China National||||
|Pharmaceutical Group|Sales of goods|44,871.79|44,871.79|
|Corporation||||
|Sinopharm Holding Jining||||
||Sales of goods|40,820.49|10,461.52|
|Co., Ltd.||||
|Sinopharm Group||||
|Guangdong Medical|Sales of goods|38,359.59||
|Inspection Co., Ltd||||
|Sinopharm Holding Puyang||||
||Sales of goods|31,958.97|305.98|
|Co., Ltd.||||
|Kangxinda Pharmaceutical||||
||Sales of goods|29,076.93|16,615.38|
|Co., Ltd.||||
|Beijing Fusheng Tiandi||||
||Sales of goods|27,538.43|56,697.41|
|Property Management Ltd.||||
|Sinopharm Group Shanghai||||
|Likang Pharmaceutical Co.|Sales of goods|19,948.72|10,829.08|
|Ltd.||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
|Shanxi Guoyi Drug Store||||
||Sales of goods|15,863.22|43,794.85|
|Co., Ltd.||||
|Sinopharm Holding Qingdao||||
||Sales of goods|14,185.16|1,789,913.20|
|Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|14,000.00|14,423.93|
|Qianxinan Co., Ltd.||||
|Sinopharm Holding Changde||||
||Sales of goods|9,538.46|281,577.44|
|Co., Ltd.||||
|Heilongjiang Sinopharm||||
||Sales of goods|6,410.25|11,025.63|
|Medical Herbs Co., Ltd.||||
|Sinopharm Holding Zhoukou||||
||Sales of goods|6,186.32|2,726.38|
|Co., Ltd.||||
|Sinopharm Lerentang||||
|Qinhuangdao Medicine Co.,|Sales of goods|5,948.71|307,179.50|
|Ltd.||||
|Sinopharm Holding Beijing||||
|Kangchen Bio-|Sales of goods|5,707.69|10,568.21|
|Pharmaceutical Co., Ltd.||||
|Sinopharm Holding Xiangxi||||
||Sales of goods|4,923.08||
|Co., Ltd.||||
|Sinopharm Holding Tianjin||||
||Sales of goods|3,446.16|777,435.92|
|North Medicine Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|3,000.01|3,692.31|
|Chenzhou Co., Ltd.||||
|Sinopharm Holding||||
||Sales of goods|2,170.94|3,226.50|
|Shangqiu Co., Ltd.||||
|Sino Pharmengin||||
||Sales of goods|1,794.88||
|Corporation||||
|Sinopharm Holding Nanping||||
||Sales of goods|1,497.44|3,743.58|
|New Power Co., Ltd.||||
|Sinopharm Holding Anhui||||
||Sales of goods|1,099.46|301,567.25|
|Co., Ltd.||||
|Sinopharm Holding Xiangtan||||
||Sales of goods|512.82||
|Co., Ltd.||||
|Chongqing Yaoyou||||
||Sales of goods||794,871.79|
|Pharmaceutical Co., Ltd.||||
|Sinopharm Group Guorui|Sales of goods||134,615.38|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
|Medicine Co., Ltd.|||
|Hetian Region Ankang Chain|||
||Sales of goods|92,155.52|
|Drugstore Co., Ltd.|||
|Guang dong South|||
|Pharmaceutical Foreign|Sales of goods|76,327.18|
|Trade Co., Ltd.|||
|Sinopharm Group Medicine|||
||Sales of goods|57,692.30|
|Logistic Co., Ltd.|||
|Wanle Medical|Sales of goods|51,295.73|
|Foshan Chanyixing Medicine|||
||Sales of goods|50,322.00|
|Development Co Ltd|||
|Sinopharm Holding Chifeng|||
||Sales of goods|25,969.23|
|Co., Ltd.|||
|Sinopharm Holding Anyang|||
||Sales of goods|14,905.98|
|Co., Ltd.|||
|Sinopharm Holding Dezhou|||
||Sales of goods|12,923.07|
|Co., Ltd.|||
|Sinopharm Holding|||
||Sales of goods|11,282.05|
|Liaocheng Co., Ltd.|||
|Sinopharm Xinjiang Korla|||
||Sales of goods|11,075.89|
|Pharmaceutical Co., Ltd.|||
|Sinopharm Holding|||
||Sales of goods|11,068.38|
|Changzhou Co., Ltd.|||
|Sinopharm Holding|||
|(Yangzhou) Chinese|||
||Sales of goods|10,660.51|
|Western Medicine Branch|||
|Co., Ltd.|||
|Sinopharm Holding Xinyu|||
||Sales of goods|6,478.65|
|Co., Ltd.|||
|Sinopharm Holding Shanxi|||
||Sales of goods|1,923.07|
|Linfen Co., Ltd.|||
|Sinopharm (Shanghai) E-|||
||Sales of goods|1,846.16|
|Health Co,.Ltd.|||
|Sinopharm Holding Xinxiang|||
||Sales of goods|931.62|
|Co., Ltd.|||
|Shanghai Nuoyun Marketing|||
||Sales of goods|-155,982.92|
|Consulting Co., Ltd.|||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
|Sinopharm Holding Zunyi||||
||Sales of goods|-12,239.32||
|Co., Ltd.||||
|Sinopharm Group Southwest|Dispatching and|||
|||106,341.02||
|Medicine Co., Ltd.|transportation charges|||
|China National Medicines Co.,|Dispatching and|||
|||3,262,443.19|2,856,084.27|
|Ltd.|transportation charges|||
|China National Medicines Co.,|Transportation and|||
|Ltd.|Warehousing Revenue|||
|Sinopharm Group Medicine|Dispatching and|||
|||1,181,491.00|2,046,871.70|
|Logistic Co., Ltd.|transportation charges|||
|China National Medicines||||
||Entrusted revenue|235,849.06|250,000.00|
|Co., Ltd.||||
|Sinopharm Holding Guoda||||
||Dispatching and|||
|Drug Store Guangdong Co.,||2,579,028.54|2,418,885.86|
||transportation charges|||
|Ltd.||||
|Shenzhen Wanle Medical|Transportation and|||
|||15,266.25||
|Co., Ltd.|Warehousing Revenue|||
|Shenzhen Wanwei Medicine|Transportation and|||
|||178,087.97|183,714.43|
|trading Co., Ltd.|Warehousing Revenue|||
|China National||||
|Pharmaceutical Foreign|Entrusted revenue|117,924.53|125,000.00|
|Trade Co., Ltd.||||
|Foshan Nanhai Uptodate &|Dispatching and|||
|||2,395,299.07|1,615,666.54|
|Special Medicines Co., Ltd.|transportation charges|||
|Foshan Nanhai Medicine|Dispatching and|||
|||4,042,227.31|1,327,072.71|
|Co., Ltd.|transportation charges|||
|Sinopharm Holding Guoda||||
|Drug Store Guangzhou|Parking fees|6,678.58|8,500.00|
|Chain Co., Ltd.||||

(2)Trusteeship
||||||||
|-|-|-|-|-|-|-|
|Trustor|Trustee|Type|Starting day|Ending Day|Price Basis|Amount|
|China National|China National||||||
|Pharmaceutical|Accord||||||
|||Share taking over|2013.9.1|2016.9.30|Market Price|117,924.53|
|Foreign Trade|Medicines||||||
|Co., Ltd.|Corporation Ltd.||||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||||
|-|-|-|-|-|-|-|
||China National||||||
||Accord||||||
|Sinopharm Group||Share taking over|2013.7.1|2016.7.31|Market Price|235,849.06|
||Medicines||||||
||Corporation Ltd.||||||

(3)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|1,253,050.60|1,178,062.80|
|Ltd.||||
|China National Medicines||||
||Building|43,200.00|43,200.00|
|Co., Ltd.||||
|China National||||
|Pharmaceutical Industry|Building|21,085.71|32,400.00|
|Medicine distribution Co. Ltd.||||
|Sinopharm Guoda Drug||||
|Store(Shenzhen) Chain Co.,|Building|248,735.66|277,867.38|
|Ltd.||||
|Sinopharm Holding Guoda||||
|Drug Store Guangzhou|Building|139,263.80|141,050.00|
|Chain Co., Ltd.||||
|Sinopharm Group||||
|Guangdong Medicine Device|Building||141,900.00|
|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|3,717,000.00|3,540,000.00|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
|Logistic Co., Ltd.||||
|Shaoguan Wujiang District||||
|Muyang Medicine||||
||Building|485,833.90|484,969.92|
|Information Consultant Co.,||||
|Ltd.||||
|Wang Yang|Building|276,000.00|276,000.00|
|Foshan Nanhai Medicine||||
||Building|134,628.57|128,160.00|
|Group Co., Ltd.||||

(4)Guarantees provided
As a guarantor
Unit:RMB
||||||
|-|-|-|-|-|
|||Beginning date of|Maturity date of|Guarantee obligation|
|Guarantee|Amount||||
|||guarantee contract|guarantee contract|expired|
|Sinopharm Group|||||
|Zhijun (Suzhou)|||||
||15,500,000.00|8-Sep-15|7-Sep-16|No|
|Pharmaceutical Co.|||||
|Ltd.|||||
|Sinopharm Holding|||||
||239,320,811.70|20-May-16|20-May-17|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
||81,380,862.24|21-Aug-15|20-Aug-16|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
||13,996,300.73|21-Dec-15|20-Dec-16|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
||181,244,838.61|29-Jun-16|28-Jun-17|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
||130,485,919.25|20-Sep-15|19-Sep-16|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
||293,292,978.56|8-Sep-15|7-Sep-16|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
||204,107,728.25|23-Jun-15|30-Apr-16|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
||297,423,585.28|9-May-16|28-Apr-17|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
||75,027,962.95|23-Oct-15|31-Jul-16|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|149,833,302.23|10-May-16|9-May-17|No|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||
|-|-|-|-|-|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
||394,379,515.71|30-Jun-16|30-Jun-17|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
||272,895,372.73|1-Apr-16|31-Mar-17|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
|Guangdong Yuexing|14,114,645.02|20-May-16|20-May-17|No|
|Co., Ltd.|||||
|Sinopharm Holding|||||
|Guangdong Yuexing|30,593,635.54|8-Sep-15|7-Sep-16|No|
|Co., Ltd.|||||
|Sinopharm Medicine|||||
|Holding Liuzhou Co.,|75,202,403.93|8-Sep-15|7-Sep-16|No|
|Ltd.|||||
|Sinopharm Medicine|||||
|Holding Liuzhou Co.,|20,219,620.69|20-Jun-16|19-Jun-17|No|
|Ltd.|||||
|Sinopharm Medicine|||||
|Holding Liuzhou Co.,|32,044,296.30|24-Nov-15|23-Nov-16|No|
|Ltd.|||||
|Sinopharm holding|||||
|Shenzhen Yanfeng|14,804,903.26|17-Dec-15|16-Dec-16|No|
|Co.,Ltd|||||
|Sinopharm holding|||||
|Shenzhen Yanfeng|41,956,000.10|8-Sep-15|7-Sep-16|No|
|Co.,Ltd|||||
|Sinopharm holding|||||
|Shenzhen Yanfeng|17,000,000.00|3-Jun-16|15-Nov-16|No|
|Co.,Ltd|||||
|Sinopharm holding|||||
|Shenzhen Yanfeng|17,147,502.59|28-Jun-16|28-Apr-17|No|
|Co.,Ltd|||||
|Sinopharm holding|||||
||9,602,123.40|1-Feb-16|7-Sep-16|No|
|Foshan Co.,Ltd|||||
|Sinopharm Holding|||||
|Jiangmen Renren Co.,|19,572,418.44|8-Sep-15|7-Sep-16|No|
|Ltd.|||||
|Sinopharm Holding|9,891,614.16|8-Sep-15|7-Sep-16|No|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||
|-|-|-|-|-|
|Shaoguan Co., Ltd.|||||
|Sinopharm Holding|||||
|Shenzhen Medicine Co.,|3,345,327.73|8-Sep-15|7-Sep-16|No|
|Ltd|||||
|Sinopharm Medicine|||||
|Holding|||||
|Zhijun(Shenzhen)|2,772,722.40|8-Sep-15|8-Sep-16|No|
|Pingshan Pharmaceutical|||||
|Co., Ltd.|||||
|Sinopharm Holding|||||
||151,224,891.35|30-Jul-15|30-Jul-16|No|
|Guangxi Co., Ltd.|||||
|Sinopharm Holding|||||
||124,777,698.95|8-Sep-15|7-Sep-16|No|
|Guangxi Co., Ltd.|||||
|Sinopharm Holding|||||
||19,996,134.58|23-Sep-15|23-Sep-16|No|
|Guangxi Co., Ltd.|||||
|Sinopharm Holding|||||
||97,056,813.97|25-Sep-15|6-Aug-16|No|
|Guangxi Co., Ltd.|||||
|Shenzhen Zhijun|||||
|Pharmaceutical Co.,|76,660,753.85|10-Sep-15|10-Sep-16|No|
|Ltd.|||||
|Sinopharm Holding|||||
||15,000,000.00|22-Mar-15|7-Sep-16|No|
|Meizhou Co., Ltd.|||||

As guarantee
Unit:RMB
||||||
|-|-|-|-|-|
|||Beginning date of|Maturity date of|Guarantee obligation|
|Guarantor|Amount||||
|||guarantee contract|guarantee contract|expired|
|Sinopharm Holding|||||
||60,000,000.00|29-Apr-16|15-May-16|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
||105,200,614.40|25-May-16|25-May-17|No|
|Guangzhou Co., Ltd.|||||
|Sinopharm Holding|||||
||49,514955.34|16-Nov-15|30-Oct-16|No|
|Co., Ltd.|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 (5)Financing
Unit:RMB
||||||
|-|-|-|-|-|
|Related Party|Amount|Effective date|Maturity date|Notes|
|Borrowed from-|||||
|Group Financial Co.|40,000,000.00|3-Mar-16|7-Jun-16|Short-term borrowings|
|Group Financial Co.|4,923,535.95|27-May-16|30-Jun-16|Short-term borrowings|
|Group Financial Co.|2,368,060.53|27-May-16|29-Jul-16|Short-term borrowings|
|Group Financial Co.|6,746,578.15|27-May-16|9-Aug-16|Short-term borrowings|
|Group Financial Co.|11,505,956.89|27-May-16|9-Sep-16|Short-term borrowings|
|Group Financial Co.|4,338,160.94|27-May-16|31-Aug-16|Short-term borrowings|
|Group Financial Co.|339,485.60|27-May-16|29-Sep-16|Short-term borrowings|
|Group Financial Co.|2,490,497.36|27-May-16|10-Aug-16|Short-term borrowings|
|Group Financial Co.|406,315.60|29-Jun-16|24-Oct-16|Short-term borrowings|
|Group Financial Co.|4,140,612.19|29-Jun-16|30-Sep-16|Short-term borrowings|
|Group Financial Co.|11,049,791.04|29-Jun-16|9-Oct-16|Short-term borrowings|
|Group Financial Co.|8,148,254.41|29-Jun-16|31-Jul-16|Short-term borrowings|
|Group Financial Co.|14,655,071.15|29-Jun-16|25-Aug-16|Short-term borrowings|
|Group Financial Co.|9,601,591.85|29-Jun-16|25-Jul-16|Short-term borrowings|
|Group Financial Co.|5,627,120.69|29-Jun-16|3-Jul-16|Short-term borrowings|
|Group Financial Co.|6,198,414.86|29-Jun-16|3-Jul-16|Short-term borrowings|
|Group Financial Co.|1,715,902.61|29-Jun-16|3-Jul-16|Short-term borrowings|
|Group Financial Co.|2,973,302.94|29-Jun-16|25-Jul-16|Short-term borrowings|
|Group Financial Co.|297,973.00|29-Jun-16|25-Aug-16|Short-term borrowings|
|Group Financial Co.|1,803,734.70|29-Jun-16|25-Aug-16|Short-term borrowings|
|Group Financial Co.|659,324.70|29-Jun-16|25-Sep-16|Short-term borrowings|

 (6)Interest Expense
Unit:RMB
||||
|-|-|-|
|||For the six months|
|Related Party|Type of transaction||
|||ended 30 June 2016|
|Group Financial Co.|Interest paid for the loans from|941,985.36|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
||related party|||
|Sinopharm Holding Sub Marketing|Charges of discounted notes|517,195.20|284,004.78|
|Center Co., Ltd.|payable|||
||Charges of discounted notes|645,596.38|0.00|
|Group Financial Co.|payable|||
|Sinopharm Holding (China) finance I|nterest on payment of|527,016.98|0.00|
|leasing Co., Ltd f|inancing lease|||
||Charges of discounted notes|0.00|391,286.97|
|Sinopharm Group||||
||payable|||
||nterest paid for the loans from|737,899.50|839,572.50|
|ICNPGC||||
||related party|||
|Total||3,369,693.42|2,182,819.78|

 (7)Interest Revenue
Unit:RMB
||||
|-|-|-|
||For the six months ended|For the six months ended|
|Type of transaction|||
||30 June 2016|30 June 2015|
|Deposit interest|216,355.34|15,368.24|

 6. Accounts receivable from and payables to related parties
(1)Accounts receivable from related parties
Unit:RMB
|||||||
|-|-|-|-|-|-|
|||30-Jun-16||31-Dec-15||
|Nature|Related parties|Cost|Provision for bad||Provision for bad|
|||||Cost||
||||debts||debts|
|Accounts|Sinopharm Holding|21,139,548.77||||
||||0.00|11,800,789.90|0.00|
|receivable|Hunan Co., Ltd.|||||
|Accounts|Sinopharm Holding|17,148,126.27||||
||||0.00|12,596,645.37|0.00|
|receivable|Sichuan Co., Ltd.|||||
|Accounts|Sinopharm Holding|11,513,770.82||||
||||0.00|4,889,068.82|0.00|
|receivable|Beijing Co., Ltd.|||||
||Foshan|||||
|Accounts||||||
||Chancheng District|11,153,163.22|0.00|10,456,488.42|0.00|
|receivable||||||
||Pharmaceutical|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||||
|-|-|-|-|-|-|
||Co., Ltd|||||
||Sinopharm Holding|||||
|Accounts||||||
||Sub Marketing|11,112,134.67|0.00|724,380.00|0.00|
|receivable||||||
||Center Co., Ltd.|||||
||Sinopharm Group|||||
||Xinjiang Special|||||
|Accounts||||||
||Drugs National|10,380,221.32|0.00|4,903,794.10|0.00|
|receivable||||||
||Pharmaceutical|||||
||Co., Ltd.|||||
||Sinopharm|||||
|Accounts||||||
||Lerentang|9,993,252.87|0.00|7,276,380.60|0.00|
|receivable||||||
||Medicine Co., Ltd.|||||
||Sinopharm Group|||||
||(Tianjin) Eastern|||||
|Accounts||||||
||Bokang|9,441,182.80|0.00|10,080.00|0.00|
|receivable||||||
||Pharmaceutical|||||
||Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||8,766,583.97|0.00|8,340,807.83|0.00|
|receivable|Hainan Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts|Guoda Drug Store|||||
|||7,952,180.70|0.00|2,134,200.73|0.00|
|receivable|Guangdong Co.,|||||
||Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Shandong Co.,|5,912,581.50|0.00|2,806,173.06|0.00|
|receivable||||||
||Ltd.|||||
||Sinopharm Group|||||
|Accounts||||||
||Southwest|5,763,482.53|0.00|5,899,149.63|0.00|
|receivable||||||
||Medicine Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Beijing Huahong|5,760,591.31|0.00|4,294,245.00|0.00|
|receivable||||||
||Co., Ltd.|||||
||Guangdong Dong|||||
|Accounts|Fang Uptodate &|||||
|||5,259,979.68|0.00|51,038.40|0.00|
|receivable|Special Medicines|||||
||Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Hainan Hongyi|5,226,555.00|0.00|4,798,848.39|0.00|
|receivable||||||
||Co., Ltd.|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||||
|-|-|-|-|-|-|
|Accounts|Sinopharm Holding|||||
|||4,735,858.96|0.00|4,182,348.44|0.00|
|receivable|Tianjin Co., Ltd.|||||
||Sinopharm Guoda|||||
|Accounts|Drug Store|||||
|||4,612,301.06|0.00|962,292.05|0.00|
|receivable|Guangxi Chain|||||
||Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||4,094,669.55|0.00|1,363,102.12|0.00|
|receivable|Hubei Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||3,097,267.70|0.00|222,814.00|0.00|
|receivable|Nantong Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Shenyang Co.,|2,994,151.80|0.00|2,078,546.57|0.00|
|receivable||||||
||Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||2,862,409.51|0.00|710,962.31|0.00|
|receivable|Fuzhong Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||2,170,875.16|0.00|1,578,943.80|0.00|
|receivable|Guizhou Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||2,124,131.70|0.00|7,623,539.82|0.00|
|receivable|Ningxia Co., Ltd.|||||
|Accounts|Foshan Nanhai|||||
|||2,047,881.34|0.00|8,555,449.29|0.00|
|receivable|Medicine Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||1,872,465.27|0.00|1,822,992.74|0.00|
|receivable|Shanxi Co., Ltd.|||||
||Sinopharm Holding|||||
||Xinjiang Special|||||
|Accounts||||||
||Drugs Western|1,860,258.85|0.00|2,087,252.42|0.00|
|receivable||||||
||Pharmaceutical|||||
||Co., Ltd.|||||
||Foshan Nanhai|||||
|Accounts|Uptodate &|||||
|||1,702,985.73|0.00|16,667,817.24|0.00|
|receivable|Special Medicines|||||
||Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||1,676,485.88|0.00|2,622,549.61|0.00|
|receivable|Henan Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||1,626,565.73|0.00|1,520,970.19|0.00|
|receivable|Jinzhou Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||1,542,881.74|0.00|4,497,007.74|0.00|
|receivable|Wenzhou Co., Ltd.|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||||
|-|-|-|-|-|-|
||China National|||||
|Accounts||||||
||Medicines Co.,|1,501,836.76|0.00|2,193,101.44|0.00|
|receivable||||||
||Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||1,401,146.30|0.00|661,883.69|0.00|
|receivable|Yangzhou Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||1,394,999.56|0.00|220,071.46|0.00|
|receivable|Dalian Co., Ltd.|||||
|Accounts|Shanghai Meiluo|||||
|||1,322,068.10|0.00|0.00|0.00|
|receivable|Medicine Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||1,204,388.40|0.00|182,236.00|0.00|
|receivable|Zhejiang Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||1,036,231.64|0.00|2,232,030.00|0.00|
|receivable|Shanxi Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||965,309.20|0.00|673,556.80|0.00|
|receivable|Jilin Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Heilongjiang Co.,|941,592.49|0.00|635,280.68|0.00|
|receivable||||||
||Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||862,348.80|0.00|915,855.80|0.00|
|receivable|Taizhou Co., Ltd.|||||
||Sinopharm Group|||||
|Accounts||||||
||Medicine Logistic|678,314.83|0.00|472,192.10|0.00|
|receivable||||||
||Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||627,831.30|0.00|111,980.36|0.00|
|receivable|Gansu Co., Ltd.|||||
||Shanghai|||||
|Accounts||||||
||Donghong|614,040.00|0.00|0.00|0.00|
|receivable||||||
||Medicine Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||589,135.99|0.00|2,644.00|0.00|
|receivable|Yunan Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||539,543.24|0.00|1,560,640.56|0.00|
|receivable|Yancheng Co., Ltd.|||||
||Foshan|||||
|Accounts||||||
||Chancheng District|535,590.96|0.00|930,281.02|0.00|
|receivable||||||
||Central Hospital|||||
||Sinopharm Holding|||||
|Accounts||||||
|||435,628.80|0.00|239,723.83|0.00|
||Chengdu|||||
|receivable||||||
||Pharmaceutical|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||||
|-|-|-|-|-|-|
||Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||434,014.29|0.00|411,057.50|0.00|
|receivable|Fuzhou Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||420,500.79|0.00|1,167,604.18|0.00|
|receivable|Xuzhou Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||415,424.35|0.00|324,129.86|0.00|
|receivable|Qinghai Co., Ltd.|||||
||Sinopharm Guoda|||||
|Accounts|Drug Store|||||
|||296,780.15|0.00|195,744.28|0.00|
|receivable|Jiangmen Chain|||||
||Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Guoda Drugstore|289,340.00|0.00|330,020.00|0.00|
|receivable||||||
||Co., Ltd|||||
|Accounts|Sinopharm Holding|||||
|||278,449.47|0.00|637,461.00|0.00|
|receivable|Wuxi Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Neimenggu Co.,|269,290.97|0.00|0.00|0.00|
|receivable||||||
||Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Chongqing Co.,|263,383.48|0.00|285,331.58|0.00|
|receivable||||||
||Ltd.|||||
||Sinopharm Holding|||||
|Accounts|Suzhou Kangmin|||||
|||171,111.12|0.00|992,644.00|0.00|
|receivable|Pharmaceutical|||||
||Co. Ltd.|||||
|Accounts||||||
||Sinopharm Group|164,242.40|0.00|1,049,269.12|0.00|
|receivable||||||
|Accounts|Sinopharm Holding|||||
|||154,799.16|0.00|204,969.60|0.00|
|receivable|Longyan Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||154,212.74|0.00|858,375.60|0.00|
|receivable|Lunan Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||142,275.84|0.00|102,354.00|0.00|
|receivable|Ningde Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts|Changzhou|||||
|||138,480.70|0.00|173,902.40|0.00|
|receivable|Medical logistics|||||
||center Co., Ltd.|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||||
|-|-|-|-|-|-|
||Sinopharm|||||
|Accounts|Medicine Holding|||||
|||113,910.00|0.00|0.00|0.00|
|receivable|Tianjin Co.,Ltd|||||
||Distribution Center|||||
|Accounts|Sinopharm Holding|||||
|||77,328.00|0.00|13,488.00|0.00|
|receivable|Suzhou Co., Ltd.|||||
||Jiang Meng|||||
|Accounts|Renren Medical|||||
|||75,570.40|0.00|49,230.00|0.00|
|receivable|instrument Co.,|||||
||Ltd.|||||
||Sinopharm|||||
|Accounts|Lerentang|||||
|||68,771.23|0.00|87,360.00|0.00|
|receivable|Tangshan|||||
||Medicine Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||61,945.61|0.00|13,056.00|0.00|
|receivable|Zhuhai Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||56,083.34|0.00|23,520.00|0.00|
|receivable|Jiangxi Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts|Guoda Kangqun|||||
|||55,074.90|0.00|0.00|0.00|
|receivable|Drug Store Taizhou|||||
||Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||47,932.00|0.00|6,276.00|0.00|
|receivable|Sanming Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||46,618.50|0.00|59,050.10|0.00|
|receivable|Shanxi Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||42,851.47|0.00|10,500.00|0.00|
|receivable|Anqing Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||27,891.30|0.00|60,642.00|0.00|
|receivable|Jiangsu Co., Ltd.|||||
||Sinopharm Group|||||
|Accounts|Shanghai Likang|||||
|||23,340.00|0.00|0.00|0.00|
|receivable|Pharmaceutical|||||
||Co. Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||19,935.62|0.00|55,887.62|0.00|
|receivable|Yantai Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||8,818.39|0.00|18,818.39|0.00|
|receivable|Changde Co., Ltd.|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||||
|-|-|-|-|-|-|
|Accounts|Sinopharm Holding|||||
|||7,330.11|0.00|90,733.47|0.00|
|receivable|Qingdao Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Zhangzhou Co.,|5,668.32|0.00|0.00|0.00|
|receivable||||||
||Ltd.|||||
|Accounts|Sinopharm Holding|||||
|||1,907.70|0.00|0.00|0.00|
|receivable|Linju Co., Ltd.|||||
||China National|||||
|Accounts||||||
||Pharmaceutical||0.00|377,768.70|0.00|
|receivable||||||
||Group Corporation|||||
|Accounts|Sinopharm Holding|||||
||||0.00|238,032.00|0.00|
|receivable|Putian Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Quanzhou Co.,||0.00|139,443.84|0.00|
|receivable||||||
||Ltd.|||||
|Accounts|Sinopharm Holding|||||
||||0.00|31,250.00|0.00|
|receivable|Anhui Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
||||0.00|15,458.00|0.00|
|receivable|Zhunyi Co., Ltd.|||||
||Sinopharm Holding|||||
|Accounts||||||
||Tianjin North||0.00|8,064.00|0.00|
|receivable||||||
||Medicine Co., Ltd.|||||
|Accounts|Sinopharm Holding|||||
||||0.00|358.00|0.00|
|receivable|Puyang Co., Ltd.|||||
||Foshan|||||
||Chanyixing|||||
|Accounts||||||
||Medicine||0.00|67,053.16|0.00|
|receivable||||||
||Development Co|||||
||Ltd|||||
||Suzhou Erye|||||
|Accounts||||||
||Pharmaceutical||0.00|1,373,520.00|0.00|
|receivable||||||
||Limited Company|||||
||Foshan Nanhai|||||
||Uptodate &|||||
|Notes receivable||31,647,756.43||||
||Special Medicines|||||
||Co., Ltd.|||||
||Sinopharm Holding|||||
|Notes receivable|Shandong Co.,|15,087,519.84||6,750,101.98||
||Ltd.|||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
||Foshan Nanhai|||
|Notes receivable||15,085,592.71||
||Medicine Co., Ltd.|||
||Sinopharm Holding|||
||Guoda Drug Store|||
|Notes receivable||6,236,381.60|1,410,614.24|
||Guangdong Co.,|||
||Ltd.|||
||Sinopharm Holding|||
|Notes receivable||6,009,977.18|7,941,341.48|
||Hubei Co., Ltd.|||
||Sinopharm|||
|Notes receivable|Lerentang|5,707,513.90|5,233,743.53|
||Medicine Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable||5,018,840.03|4,813,712.16|
||Hainan Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable||4,210,110.48|4,506,792.88|
||Sichuan Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable||2,780,000.00|2,830,000.00|
||Nantong Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable||2,493,710.20|1,408,846.39|
||Jinzhou Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable||2,147,355.82||
||Henan Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable||2,076,440.72||
||Wenzhou Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable|Sub Marketing|1,814,269.00|4,588,966.95|
||Center Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable||1,651,550.65||
||Yunnan Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable||1,546,990.57||
||Shanxi Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable|Quanzhou Co.,|1,394,438.40||
||Ltd.|||
||Sinopharm Holding|||
|Notes receivable|Shenyang Co.,|1,328,720.00|1,317,158.00|
||Ltd.|||
||Sinopharm Holding|||
|Notes receivable||1,208,494.28||
||Hainan Hongyi|||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
||Co., Ltd.|||
||Sinopharm Group|||
||Xinjiang Special|||
|Notes receivable|Drugs National|900,000.00|1,000,000.00|
||Pharmaceutical|||
||Co., Ltd.|||
||Sinopharm Guoda|||
||Drug Store|||
|Notes receivable||874,893.92|5,615,477.11|
||Guangxi Chain|||
||Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable||762,290.70|581,379.06|
||Gansu Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable||685,320.00|3,758,893.95|
||Tianjin Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable||325,680.00|342,000.00|
||Yancheng Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable|Heilongjiang Co.,|252,000.00|103,258.40|
||Ltd.|||
||Sinopharm Holding|||
|Notes receivable|Chongqing Co.,|234,420.00|373,556.00|
||Ltd.|||
||Sinopharm Holding|||
|Notes receivable||222,396.00|3,235,657.34|
||Hunan Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable||205,100.00||
||Sanming Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable||200,000.00||
||Xuzhou Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable||100,000.00|100,000.00|
||Qingdao Co., Ltd.|||
||Sinopharm Holding|||
||Changzhou|||
|Notes receivable||50,000.00|30,000.00|
||Medical logistics|||
||center Co., Ltd.|||
||Sinopharm Group|||
||(Tianjin) Eastern|||
|Notes receivable|Bokang||18,567,124.28|
||Pharmaceutical|||
||Co., Ltd.|||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
||Sinopharm Holding|||
|Notes receivable|||5,445,673.00|
||Beijing Co., Ltd.|||
||Sinopharm Group|||
||Xinjiang Special|||
|Notes receivable|Drugs National||2,400,000.00|
||Pharmaceutical|||
||Co., Ltd.|||
||Guangdong Dong|||
||Fang Uptodate &|||
|Notes receivable|||2,375,104.52|
||Special Medicines|||
||Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable|||883,089.31|
||Fuzhou Co., Ltd.|||
||China National|||
|Notes receivable|Medicines Co.,||477,810.00|
||Ltd.|||
||Sinopharm Holding|||
||Suzhou Kangmin|||
|Notes receivable|||200,000.00|
||Pharmaceutical|||
||Co. Ltd.|||
||Sinopharm Holding|||
|Notes receivable|Beijing Huahong||168,880.00|
||Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable|||150,000.00|
||Wuxi Co., Ltd.|||
||Sinopharm Holding|||
||Chengdu|||
|Notes receivable|||132,695.00|
||Pharmaceutical|||
||Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable|||82,280.00|
||Zhejiang Co., Ltd.|||
||Sinopharm Holding|||
|Notes receivable|||60,000.00|
||Changde Co., Ltd.|||
|Other receivables|Zhijun(Suzhou)|93,949,000.00||
||Sinopharm Group|||
|Other receivables|Medicine Logistic|4,932,000.00|1,215,000.00|
||Co., Ltd.|||
||Sinopharm Holding|||
|Other receivables||348,000.00||
||Tianjin Binhai|||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
||Pharmaceutical|||
||Co., Ltd|||
|Other receivables|Sinopharm Group|250,000.00|250,000.00|
||Shenzhen Wanwei|||
|Other receivables|Medicine trading|143,914.89||
||Co., Ltd.|||
||China National|||
||Pharmaceutical|||
|Other receivables||125,000.00|250,000.00|
||Foreign Trade Co.,|||
||Ltd.|||
||Sinopharm|||
||Chongqing|||
|Advances to|Pharmaceutical|||
|||2,652,166.67|2,652,166.67|
|suppliers|and Medical|||
||Industry Design|||
||Institute|||
||Chengdu|||
|Advances to|Rongsheng|||
|||1,486,648.00|424,320.00|
|suppliers|Pharmacy Co.,|||
||Ltd.|||
||Sinopharm|||
|Advances to|Xingsha|||
|||126,288.23||
|suppliers|Pharmaceuticals|||
||(Xiamen) Co., Ltd.|||
||Anhui Jingfang|||
|Advances to||||
||Pharmaceutical|33,481.37||
|suppliers||||
||Co., Ltd.|||
||Sinopharm Holding|||
|Advances to|Beijing Tianxing|||
|||24,401.46||
|suppliers|Puxin Biological|||
||Medical Co., Ltd.|||
|Advances to||||
|||19,006.40|0.00|
|suppliers|Sinopharm Group|||
||Sinopharm Holding|||
|Advances to||||
||Sub Marketing|16,658.68|72,829.67|
|suppliers||||
||Center Co., Ltd.|||
||Foshan Yingtian|||
|Advances to||||
||Medicine Sales Co.,|5,335.85|4,660.22|
|suppliers||||
||Ltd.|||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
||Hunan Dongting|||
|Advances to||||
||Pharmaceutical Co.,|3,923.08|0.00|
|suppliers||||
||Ltd.|||
|Advances to|Sinopharm Holding|||
|||3,715.05|0.00|
|suppliers|Suzhou Co., Ltd.|||
||Sino-Swed|||
|Advances to||||
||Pharmaceutical|3,341.88||
|suppliers||||
||Co.,Ltd|||
||Shanghai Shyndec|||
|Advances to||||
||Pharmaceutical Co.,|1,270.33||
|suppliers||||
||Ltd|||
||China National|||
|Advances to|Pharmaceutical|||
|||760.00||
|suppliers|Foreign Trade Co.,|||
||Ltd.|||
||Sichuan Hexin|||
|Advances to||||
||Pharmaceutical|216.42|3,465,888.00|
|suppliers||||
||Co., Ltd.|||
||Foshan Nanhai|||
|Advances to|Uptodate &|||
||||23,012.72|
|suppliers|Special Medicines|||
||Co., Ltd.|||
||Wuhan Institute of|||
|Advances to||||
||Biological Products||493,200.00|
|suppliers||||
||Co., Ltd.|||
||Sinopharm Group|||
|Advances to||||
||Chemical Reagent||15,784.50|
|suppliers||||
||Co., Ltd.|||
||Sinopharm Group|||
|Advances to||||
||Guorui Medicine||140,028.00|
|suppliers||||
||Co., Ltd.|||
|Advances to|Sinopharm Holding|||
||||177,148.47|
|suppliers|Guizhou Co., Ltd.|||
|Advances to|China National|||
||||36,329.26|
|suppliers|Medicines Co., Ltd.|||
||Shanghai Modern|||
|Advances to|Hasen (Shangqiu)|||
||||55.00|
|suppliers|Pharmacertical Co.,|||
||Ltd.|||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
|Advances to|Sinopharm Holding||
|||1,591.90|
|suppliers|Beijing Co., Ltd.||
||Guang dong South||
|Advances to|Pharmaceutical||
|||11,558.42|
|suppliers|Foreign Trade Co.,||
||Ltd.||

(2)Accounts payables to related parties
|||||
|-|-|-|-|
|Nature|Related parties|30-Jun-16|31-Dec-15|
||Sinopharm Holding Sub|||
|Accounts payable||146,592,331.17|209,228,582.07|
||Marketing Center Co., Ltd.|||
|Accounts payable|Sinopharm Group|41,702,140.28|67,599,588.19|
||China National Medicines|||
|Accounts payable||28,399,395.36|41,447,627.42|
||Co., Ltd.|||
||Sino-Swed Pharmaceutical|||
|Accounts payable||16,189,749.06|7,795,134.50|
||Co.,Ltd|||
||Guang dong South|||
|Accounts payable|Pharmaceutical Foreign|12,385,291.34|23,659,448.86|
||Trade Co., Ltd.|||
||Jiangsu Wanbang Pharmacy|||
|Accounts payable||10,070,892.35|8,769,888.84|
||Marketing Co., Ltd.|||
||Foshan Dezhong|||
|Accounts payable||8,657,702.07||
||Pharmaceutical Co., Ltd|||
||Lanzhou Institute of|||
|Accounts payable||7,680,360.00|5,580,000.00|
||Biological Products Co., Ltd.|||
||Shenzhen Wanle Medical|||
|Accounts payable||7,581,303.80|7,085,619.15|
||Co., Ltd.|||
||Shenzhen Wanwei Medicine|||
|Accounts payable||6,951,369.53|4,386,429.79|
||Trading Co., Ltd.|||
||Sinopharm Group|||
|Accounts payable|Zhijun(Suzhou)|5,085,042.72||
||Pharmaceutical Co.,Ltd.|||
||Chongqing Yaoyou|||
|Accounts payable||4,357,446.04|7,128,876.56|
||Pharmaceutical Co., Ltd.|||
|Accounts payable|Foshan Nanhai Uptodate &|1,947,219.79|2,463,364.66|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
||Special Medicines Co., Ltd.|||
||Foshan Yingtian Medicine|||
|Accounts payable||1,545,834.22|1,084,492.48|
||Sales Co., Ltd.|||
||Sinopharm Holding Beijing|||
|Accounts payable||893,073.46|309,827.31|
||Huahong Co., Ltd.|||
||Sinopharm Lerentang Hebei|||
|Accounts payable||849,168.23|670,755.65|
||Medicine Co., Ltd.|||
||Chongqing Haisiman|||
|Accounts payable||845,410.02|252,422.92|
||Pharmaceutical Co., Ltd.|||
||Sinopharm Group Medicine|||
|Accounts payable||658,864.52|1,020,920.78|
||Logistic Co., Ltd.|||
||Shanghai Shyndec|||
|Accounts payable|Pharmaceutical Markteing|561,415.17|202,620.00|
||Co., Ltd|||
||Foshan Nanhai Medicine|||
|Accounts payable||505,921.98|2,191,934.74|
||Co., Ltd.|||
||Yichang Humanwell|||
|Accounts payable||461,989.80|184,046.67|
||Pharmaceutical Co., Ltd.|||
||Guizhou Tongjitang|||
|Accounts payable||292,047.39||
||Pharmaceutical Co., Ltd.|||
||Sinopharm Group|||
|Accounts payable|Rongsheng Pharmaceutical|234,861.38|229,637.95|
||Co., Ltd.|||
||Sinopharm United Zhonglian|||
|Accounts payable||224,358.66|106,931.94|
||Pharmaceutical Co.,Ltd|||
||Foshan Fengliaoxing|||
|Accounts payable||207,791.03|719,965.09|
||Pharmaceutical Co., Ltd.|||
||Guangdong Dong Fang|||
|Accounts payable|Uptodate & Special Medicines|197,701.75|547,420.63|
||Co., Ltd.|||
||China Otsuka Pharmaceutical|||
|Accounts payable||187,734.74|214,530.92|
||Co., Ltd.|||
||Sinopharm Holding Zhuhai|||
|Accounts payable||119,697.58|93,353.55|
||Co., Ltd.|||
||Sinopharm Group Chemical|||
|Accounts payable||84,532.89|16,563.32|
||Reagent Co., Ltd.|||
||Shenyang Hongqi|||
|Accounts payable||69,022.49|2,088.09|
||Pharmaceutical Co., Ltd.|||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
||Sinopharm Holding Hunan|||
|Accounts payable||67,180.67|223,953.63|
||Co., Ltd.|||
||Sinopharm United Luya|||
|Accounts payable|(Shandong) Pharmaceutical|52,819.07|52,819.54|
||Co.,Ltd|||
||Hunan Dongting|||
|Accounts payable||50,183.77|17,689.07|
||Pharmaceutical Co., Ltd.|||
||Sinopharm Guoda Drug|||
|Accounts payable|Store(Shenzhen) Chain Co.,|44,649.76|8,720.00|
||Ltd.|||
||Shanghai Modern Hasen|||
|Accounts payable|(Shangqiu) Pharmacertical|30,918.42|30,667.78|
||Co., Ltd.|||
||Guangdong Medi-World|||
|Accounts payable||29,802.65||
||Pharmacertical Co., Ltd.|||
||Guilin South Pharmaceutical|||
|Accounts payable||29,039.21|35,113.61|
||Co., Ltd.|||
||Sinopharm Holding Hubei|||
|Accounts payable||23,020.80||
||Co., Ltd.|||
||Sinopharm Xingsha|||
|Accounts payable|Pharmaceuticals (Xiamen)|18,715.50|27,782.18|
||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.|||
||Sinopharm Lerentang|||
|Accounts payable|Shijiazhuang Medicine Co.,|16,168.58||
||Ltd.|||
||Sinopharm Holding Guoda|||
|Accounts payable||12,067.94|12,070.83|
||Drugstore Co., Ltd|||
||Shanghai Chaohui|||
|Accounts payable||7,494.85|7,494.85|
||Pharmecurical Co., Ltd.|||
||Sinopharm Holding Jiangsu|||
|Accounts payable||5,086.63|5,086.63|
||Co., Ltd.|||
||Sinopharm Holding Dezhou|||
|Accounts payable||4,333.65|4,333.65|
||Co., Ltd.|||
|Accounts payable|Foshan Fengliaoxing|3,914.41|3,914.41|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
||Pharmaceutical Co., Ltd.|||
||Sinopharm United Shantou|||
|Accounts payable|Jinshi Pharmaceutical|2,697.87||
||Co.,Ltd|||
||Sinopharm Holding Sanyi|||
|Accounts payable||2,637.47|2,637.47|
||Medicine(Wuhu) Co., Ltd.|||
||Jiangsu Huanghe|||
|Accounts payable||2,382.89|2,382.89|
||Pharmaceutical Co., Ltd|||
||Sinopharm Holding Huaideju|||
|Accounts payable|Pharmaceutical (Xiamen)|1,113.85|1,113.85|
||Co., Ltd.|||
||China National|||
|Accounts payable|Pharmaceutical Foreign|929.12|929.12|
||Trade Co., Ltd.|||
||Chengdu Rongsheng|||
|Accounts payable||794.87|794.87|
||Pharmacy Co., Ltd.|||
||Sinopharm United Wuhan|||
|Accounts payable|ZhongLian Siyao|752.14|752.14|
||Pharmaceutical Co.,Ltd|||
||Beijing Huasheng|||
||Pharmaceutical|||
|Accounts payable||637.01|637.01|
||Biotechnology Development|||
||Co., Ltd.|||
||Sinopharm Holding Fujian|||
|Accounts payable||51.00|51.00|
||Co., Ltd.|||
||Sinopharm Holding Guizhou|||
|Accounts payable||41.02|17,850.00|
||Co., Ltd.|||
||Sinopharm Group Weiqida|||
|Accounts payable||28.93|28.93|
||Medicine Co., Ltd.|||
||Sinopharm Holding Beijing|||
|Accounts payable||21.78||
||Co., Ltd.|||
||Foshan Dezhong|||
|Accounts payable|||7,688,165.93|
||Pharmaceutical Co., Ltd.|||
||Shanghai Shyndec|||
|Accounts payable|||400,000.00|
||Pharmaceutical Co., Ltd|||
||Handan Pharmaceutical Co.,|||
|Accounts payable|||230,176.34|
||Ltd|||
|Accounts payable|Guizhou Tongjitang||185,772.52|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
||Pharmaceutical Co., Ltd.|||
||Qinghai Pharmaceutical|||
|Accounts payable|||138,453.45|
||(Group) Co., Ltd.|||
||Anhui Jingfang|||
|Accounts payable|||45,444.09|
||Pharmaceutical Co., Ltd.|||
||Sinopharm Holding Hainan|||
|Accounts payable|||44,376.26|
||Co., Ltd.|||
||Sinopharm Holding Suzhou|||
|Accounts payable|||35,391.75|
||Co., Ltd.|||
||Sinopharm United Medical|||
|Accounts payable|||34,711.84|
||Device Co.,Ltd|||
||Sinopharm Holding Fuzhou|||
|Accounts payable|||34,202.00|
||Co., Ltd.|||
||Guangdong Medi-World|||
|Accounts payable|||29,802.68|
||Pharmacertical Co., Ltd.|||
||Suzhou Erye Pharmaceutical|||
|Accounts payable|||27,200.00|
||Limited Company|||
||Sinopharm Group Chemical|||
|Accounts payable|||5,272.95|
||Reagent Suzhou Co., Ltd.|||
||Sichuan Hexin|||
|Accounts payable|||2,036,758.97|
||Pharmaceutical Co., Ltd.|||
||China State Institute of|||
|Other payables||13,540,000.00|13,690,000.00|
||Pharmaceutical Industry|||
||Sinopharm Group Medicine|||
|Other payables||4,087,627.84|483,403.90|
||Logistic Co., Ltd.|||
|Other payables|Sinopharm Group|3,530,696.87|4,530,696.87|
||Sinopharm Holding|||
|Other payables||1,660,431.38|1,660,431.38|
||Shanghai Co., Ltd.|||
||China National Traditional|||
|Other payables||1,300,000.00|1,300,000.00|
||Chinese Medicine Corporation|||
||Sinopharm Holding Tianjin|||
|Other payables||121,268.88||
||Binhai Pharmaceutical Co., Ltd|||
||Sinopharm Guoda Drug|||
|Other payables|Store(Shenzhen) Chain Co.,|72,000.00|72,000.00|
||Ltd.|||
||Sinopharm Guoda Drug|||
|Other payables||55,300.00|55,300.00|
||Store Guangxi Chain Co.,|||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
||Ltd.|||
||Sinopharm Guoda Drug|||
|Other payables|Store Guangzhou Chain Co.,|46,000.00|46,000.00|
||Ltd.|||
||Foshan Nanhai Medicine|||
|Other payables||45,600.00||
||Group Co., Ltd|||
||China National Scientific|||
|Other payables|Instruments & Materials|37,450.00||
||Imp/Exp Shenzhen CO., Ltd|||
||Foshan Nanhai Medicine|||
|Other payables||22,945.14|4,721.21|
||Co., Ltd.|||
||Sinopharm Holding Hainan|||
|Other payables||20,000.00|20,000.00|
||Hongyi Co., Ltd.|||
||Foshan Nanhai Uptodate &|||
|Other payables||14,968.46||
||Special Medicines Co., Ltd.|||
||Sinopharm Holding Tianjin|||
|Other payables||10,000.00|10,000.00|
||Co., Ltd.|||
||Sinopharm Group (Tianjin)|||
|Other payables|Eastern Bokang|10,000.00|10,000.00|
||Pharmaceutical Co., Ltd.|||
||Sinopharm Holding Shanxi|||
|Other payables||10,000.00|10,000.00|
||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|||
||(Yangzhou) Chinese|||
|Other payables||5,000.00|5,000.00|
||Western Medicine Branch|||
||Co., Ltd.|||
||Sinopharm Holding Suzhou|||
|Other payables|Kangmin Pharmaceutical Co.|5,000.00|5,000.00|
||Ltd.|||
||Sinopharm Holding Wuxi|||
|Other payables||5,000.00|5,000.00|
||Co., Ltd.|||
|Other payables|Sinopharm Lerentang|5,000.00|5,000.00|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
||Medicine Co., Ltd.|||
||Sinopharm Holding Zhuhai|||
|Other payables||3,000.00|3,000.00|
||Co., Ltd.|||
||Sinopharm Group Chemical|||
|Other payables||-6.00|219,994.00|
||Reagent Co., Ltd.|||
||Shenzhen Wanle Medical|||
|Other payables|||500,000.00|
||Co., Ltd.|||
||Sinopharm Holding Tianjin|||
|Other payables|Binhai Pharmaceutical Co.,||24,915.56|
||Ltd|||
||Sinopharm Group Chemical|||
|Other payables|||300,000.00|
||Reagent Suzhou Co., Ltd.|||
||Sinopharm Holding Sub|||
|Notes payable||292,371,338.86|16,067,525.26|
||Marketing Center Co., Ltd.|||
|Notes payable|Sinopharm Group|31,115,444.52|86,452,702.77|
||China National Medicines|||
|Notes payable||14,586,812.11|8,308,580.59|
||Co., Ltd.|||
||Lanzhou Institute of|||
|Notes payable||3,600,000.00|1,800,000.00|
||Biological Products Co., Ltd.|||
||Chongqing Yaoyou|||
|Notes payable||2,981,839.20|2,899,500.00|
||Pharmaceutical Co., Ltd.|||
||Shenzhen Wanle Medical|||
|Notes payable||1,596,502.80|1,127,937.20|
||Co., Ltd.|||
||Jiangsu Wanbang Pharmacy|||
|Notes payable||1,323,912.25|2,143,170.40|
||Marketing Co., Ltd.|||
||Chongqing Haisiman|||
|Notes payable||538,636.50|442,041.50|
||Pharmaceutical Co., Ltd.|||
||Anhui Jingfang|||
|Notes payable||484,742.39|660,215.94|
||Pharmaceutical Co., Ltd.|||
||Guizhou Tongjitang|||
|Notes payable||436,932.00||
||Pharmaceutical Co., Ltd.|||
||Foshan Yingtian Medicine|||
|Notes payable||129,821.78|6,180,233.86|
||Sales Co., Ltd.|||
||Sinopharm Group|||
|Notes payable|Rongsheng Pharmaceutical|72,765.00|101,965.00|
||Co., Ltd.|||
|Notes payable|Guizhou Tongjitang||363,435.60|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
||Pharmaceutical Co., Ltd.|||
||Shanghai Shyndec|||
|Notes payable|Pharmaceutical Markteing||269,766.00|
||Co., Ltd|||
||Shenzhen Wanwei Medicine|||
|Notes payable|||761,296.80|
||trading Co., Ltd.|||
||Hunan Dongting|||
|Notes payable|||24,000.00|
||Pharmaceutical Co., Ltd.|||
||Shenyang Hongqi|||
|Notes payable|||95,696.00|
||Pharmaceutical Co., Ltd.|||
||Guilin South pharmaceutical|||
|Notes payable|||96,307.40|
||Co., Ltd.|||
||Foshan Nanhai Uptodate &|||
|Advances from customers||927,562.42||
||Special Medicines Co., Ltd.|||
||Sinopharm Guoda Drug|||
|Advances from customers|Store Guangxi Chain Co.,|104,753.80||
||Ltd.|||
||Sinopharm Holding Ningde|||
|Advances from customers||63,984.00||
||Co., Ltd.|||
||Sinopharm Holding Zhuhai|||
|Advances from customers||10,464.00|16,775.40|
||Co., Ltd.|||
||Shanghai Meiluo Medicine|||
|Advances from customers||8,280.00||
||Co., Ltd.|||
||Sinopharm Group Southwest|||
|Advances from customers||2,456.00|2,771.78|
||Medicine Co., Ltd.|||
||Sinopharm Holding Chengdu|||
|Advances from customers||2,121.79|1,450.09|
||Pharmaceutical Co., Ltd.|||
||Sinopharm Holding Gansu|||
|Advances from customers||2,083.00|2,083.00|
||Co., Ltd.|||
||Sinopharm Holding Suzhou|||
|Advances from customers|Kangmin Pharmaceutical Co.|1,048.80|3,229.80|
||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 Holding|||
|Advances from customers||118.35|116.01|
||Hongkong International Co.|||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
||Ltd|||
||Sinopharm Sichuan|||
|Advances from customers||100.00|100.00|
||Pharmaceutical Co., Ltd.|||
||Sinopharm Holding Jingmen|||
|Advances from customers||1.00||
||Co., Ltd.|||
||Sinopharm Holding Xuzhou|||
|Advances from customers|||5,744.00|
||Co., Ltd.|||
||Sinopharm Holding|||
|Advances from customers|||1,280.00|
||Wenzhou Co., Ltd.|||
||Sinopharm Holding Jiangsu|||
|Advances from customers|||8,000.00|
||Co., Ltd.|||
||Sinopharm Holding Yunnan|||
|Advances from customers|||144,350.85|
||Co., Ltd.|||
||Kangxinda Pharmaceutical|||
|Advances from customers|||4,860.00|
||Co., Ltd.|||
||Sinopharm Holding Dezhou|||
|Advances from customers|||4,650.00|
||Co., Ltd.|||
||Foshan Yingtian Medicine|||
|Advances from customers|||1,161.99|
||Sales Co., Ltd.|||

Unit:RMB 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 2016|31 December 2015|
|Sinopharm Holding (China) finance leasing|||
|Co., Ltd|1,285.59|1,275.12|
|Sinopharm Group Medicine Logistic Co., Ltd.|746.70|-|
|Shaoguan Wujiang District Muyang Medicine|||
|Information Consultant Co., Ltd.|407.70|457.01|
|Wang Yang|193.20|220.80|
|Foshan Nanhai Medicine Group Co., Ltd|18.24|4.56|
|Total|2,651.40|1,957.49|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 As a leaser
Unit:
RMB’0,000
||||
|-|-|-|
||30 June 2016|31 December 2015|
|Sinopharm Guoda Drug Store Guangxi Chain|||
||566.44|33.18|
|Co., Ltd.|||
|Sinopharm Guoda Drug Store(Shenzhen)|||
||74.36|82.62|
|Chain Co., Ltd.|||
|Sinopharm Guoda Drug Store Guangzhou|||
||14.15|28.30|
|Chain Co., Ltd.|||
|Sinopharm Holding Sub Marketing Center|||
|||-|
|Co., Ltd.|2.16||
|Total|657.11|144.10|

 Guarantee (Unused quotas)
Unit:RMB’0,000
||||
|-|-|-|
|Received|30 June 2016|31 December 2015|
|Sinopharm Group|1,048.5|27,373.53|

 Guarantee (Unused quotas)
Unit:RMB’0,000
||||
|-|-|-|
|Guranted|30 June 2016|31 December 2015|
|Zhijun(Suzhou)|1,450.00|0.00|

 8. Others
Buying constructingin progress
Unit:RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||30 June 2016||||31 December 2015|||
||Amount|||% of total|Amount|||% of total|
|||||balance||||balance|
|Sinopharm Group Chemical Reagent Co.,|1,960,256.42||2.33%||0.00||0.00||
|Ltd.|||||||||
|Sinopharm Holding (China) finance|3,790,051.28||4.50%||0.00||0.00||
|leasing Co., Ltd||3,790,051.28||4.50%||0.00||0.00|
|Total||5,750,307.70||6.83%||0.00||0.00|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 Interests Payable
Unit:RMB’0,000
|||||||
|-|-|-|-|-|-|
||||30 June 2016||31 December 2015|
|Group Financial Co., Ltd||0.00||10.15||
|China National Pharmaceutical group||3.44||5.02||
||Total|3.44||15.17||

 Entrusted borrowings
Unit:RMB’0,000
||||||
|-|-|-|-|-|
|||30 June 2016||31 December 2015|
|China National Pharmaceutical group|3,160.00||3,160.00||

 Other non-current liabilities
Unit:RMB’0,000
||||||
|-|-|-|-|-|
|||30 June 2016||31 December 2015|
|Sinopharm Group|3,506.18||3,506.18||

 Short term borrowings
Unit:RMB’0,000
||||||
|-|-|-|-|-|
|||30 June 2016||31 December 2015|
|Group Financial Co., Ltd|9,506.61||7,000.00||

 Cash and bank deposites
Unit:RMB’0,000
||||||
|-|-|-|-|-|
|||30 June 2016||31 December 2015|
|Group Financial Co., Ltd|20.58||21.53||

 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 2016|31 December 2015|
|Buildings, machinery and equipment|1,527.77|4,346.58|
|Total|1,527.77|4,346.58|

(2) Operating lease commitments
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 The future minimum lease payments due under the signed irrevocable operating leases contracts are summarised as follows:
Unit:RMB’0,000
||||
|-|-|-|
||30 June 2016|31 December 2015|
|Within one year|4,246.55|3,294.71|
|Between 1 and 2 years|3,527.55|3,101.17|
|Between 2 and 3 years|3,495.53|2,977.18|
|Over 3 years|22,268.21|22,560.29|
|Total|33,537.84|31,933.35|

 XII. Segment information
The reportable segments of the Group are the business units that provide different products or service. Different businesses require different technologies and marketing strategies, the Group, therefore, separately manages the production and operation of each reportable segment and evaluates their operating results respectively, in order to make decisions about resources to be allocated to these segments and to assess their performance.
The Group identified 3 reportable segments as follows:
- The Group, which is mainly engaged in investing and managing business;
- Pharmaceutical distribution, which is mainly engaged in distribution of medicine and pharmaceutical products to customers;
- Pharmaceutical manufacturing, which is mainly engaged in the manufacture medicine.
Inter-segment transfers are measured by reference to sales to third parties.
Segment information as at and for the year ended 30 June2016is as follows:
Pharmaceutic
Pharmaceutical al
The Group distribution manufacturing Elimination Total
Revenue of main 14,053,796,25
operations 0.00 13,277,343,388.91 782,625,431.52 (6,172,566.60) 3.83
Cost of main
0.00 5,849,223.84
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 operations (12,582,643,182.98) (457,497,815.13 (13,034,291,77 ) 4.27) Share of profit of 0.00 0.00
subsidiaries 531,332,344.99 (531,332,344.99) 0.00 Share of profit of 0.00 0.00
associates 24,377,006.76 3,414,125.62 27,791,132.38 554,372,045.5 Net profit 638,566,825.81 247,004,066.71 138,024,808.46 (469,223,655.48) 0 1,114,096,164.9 (4,645,257,096.0 14,485,586,57 Total assets 5,833,849,529.56 12,182,897,978.65 3 8) 7.06 (552,366,329.65 (8,480,801,360 Total liabilities (750,214,639.70) (9,466,211,062.27) ) 2,287,990,670.71 .91) Segment information as at and for the year ended 30 June2015 is as follows:
Pharmaceutical Pharmaceutical
The Group distribution manufacturing Elimination Total Revenue of main 11,928,950,881.0 12,772,868,60 operations 0.00 5 854,033,132.55 (10,115,403.97) 9.63 Cost of main 0.00 10,419,468.32
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 operations (11,298,686,869.2 (510,164,931.93) (11,798,432,33 7) 2.88) Share of profit of 0.00 0.00
subsidiaries 514,513,119.54 (514,513,119.54) 0.00 Share of profit of 0.00 0.00
associates 28,274,061.44 0.00 28,274,061.44 399,642,260.9 Net profit 563,341,115.06 230,346,153.14 122,233,474.47 (516,278,481.70) 7 11,632,238,315.9 (4,227,858,050.5 13,812,656,49 Total assets 4,871,012,502.34 9 1,537,263,722.65 2) 0.46 (9,022,410,179.62 (8,633,887,181 Total liabilities (380,331,502.69) ) (950,620,382.83) 1,719,474,883.70 .44) XIII. 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 2016|31 December 2015|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||Bad debtprovision||||||||
||Carrying amount|||||Carrying amount||Bad debt provision|||
||||||Book||||||
|||% of||rate|||% of|||Book value|
||||||value|amoun|||||
||amount|total|amount||||total|amount|rate||
|||||||t|||||
|||balance|||||balance||||
|Receivable|478,787,955.99|||0.00%|||||||
|accounts within|||||478,787,9|381,093||||381,093,808.5|
|||99.98%|0.00||||99.97%|0.00|0.00%||
|similar credit risk|||||55.99|,808.53||||3|
|group|||||||||||
|Individually not|117,320.70||||||||||
|significant but|||||||||||
||||117,320.|||117,320||117,320.7|||
|individually||0.02%||100.00%|0.00||0.03%||100.00%|0.00|
||||70|||.70||0|||
|evaluated for|||||||||||
|impairment|||||||||||
||478,905,276.69||117,320.|0.02%|478,787,955.99|381,211||117,320.7||381,093,808.53|
|Total||100.00%|||||100.00%||0.03%||
||||70|||,129.23||0|||

 The aging of accounts receivable and related provision for bad debts are analysed below:
Unit:RMB
|||||
|-|-|-|-|
||30 June 2016|||
|Aging||||
||Accounts receivable|Provision for bad debts|rate|
|Within 1 year|478,787,955.99|0.00|0.00%|
|Total|478,787,955.99|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|104,455,805.14|0.00|21.81%|

2. Other receivables
(1)Other receivables and related provision for bad debts by category are analysed below: Unit:RMB
||||
|-|-|-|
|Classification|30 June 2016|31 December 2015|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||Bad debtprovision||||||||
||Carrying amount|||||Carrying amount||Bad debt provision|||
||||||Book||||||
|||% of||rate|||% of|||Book value|
||||||value||||||
||amount|total|amount|||amount|total|amount|rate||
|||amount|||||amount||||
|Individually|8,980,000.00||||||||||
|significant are|||||||||||
||||8,980,00|||8,980,00||8,980,000|||
|subject to separate||0.56%||100.00%|0.00||0.55%||100.00%|0.00|
||||0.00|||0.00||.00|||
|impairment|||||||||||
|assessment|||||||||||
|Receivable|1,608,352,543.07|||0.00%|||||||
|accounts within|||40,717.4||1,608,31|1,613,90||||1,613,862,656.|
|||99.37%|||||99.38%|40,717.40|0.00%||
|similar credit risk|||0||1,825.67|3,373.57||||17|
|group|||||||||||
|Individually not|1,157,860.00||||||||||
|significant but|||||||||||
||||1,157,86|||1,157,86||1,157,860|||
|individually||0.07%||100.00%|0.00||0.07%||100.00%||
||||0.00|||0.00||.00|||
|evaluated for|||||||||||
|impairment|||||||||||
||1,618,490,403.07||10,178,5|0.63%|1,608,311,825.67|1,624,04||10,178,57||1,613,862,656.17|
|Total||100.00%|||||100.00%||0.63%||
||||77.40|||1,233.57||7.40|||

 As at 30 June 2016, impairment provision for other receivables individually significant are analysed as below:
Unit:RMB
||||||
|-|-|-|-|-|
||30 June 2016||||
|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 2016|||
|Aging||||
||Amount|Bad debt provision|Rate|
|Within 1 year|1,607,550,095.11|0.00|0.00%|
|1 to 2 years|790,547.96|39,527.40|5.00%|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
|||||
|-|-|-|-|
|2 to 3 years|11,900.00|1,190.00|10.00%|
|Total|1,608,352,543.07|40,717.40|0.00%|

 (2)Other receivables by nature are analysed below
Unit:RMB
||||
|-|-|-|
|Nature|30 June 2016|31 December 2015|
|Amounts due from related parties|1,603,386,322.94|1,609,726,719.07|
|Receivable from equity transaction|8,980,000.00|8,980,000.00|
|Deposit|2,035,729.25|2,024,119.45|
|Others|4,088,350.88|3,310,395.05|
|Total|1,618,490,403.07|1,624,041,233.57|

 (3)As at 30 June of2016，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|
|Sinopharm|Entrusted|||||
|||445,004,138.86|Within 1 year|27.50%|0.00|
|Guangzhou|borrowings|||||
||Entrusted|||||
|Sinopharm Yuexing||209,700,000.00|Within 1 year|12.96%|0.00|
||borrowings|||||
|Sinopharm|Entrusted|||||
|||138,000,000.00|Within 1 year|8.53%|0.00|
|Zhanjiang|borrowings|||||
|Sinopharm|Entrusted|||||
|||96,000,000.00|Within 1 year|5.93%|0.00|
|Donguan|borrowings|||||
||Entrusted|||||
|Suzhou Zhijun||93,949,000.00|Within 1 year|5.80%|0.00|
||borrowings|||||
|Total|--|982,653,138.86|--|60.72%|0.00|

 3. Long-term equity investments
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
||30 June 2016|||31 December 2015|||
|||Provision for|||Provision for||
||Carrying Amount||Book Value|Carrying Amount||Book Value|
|||impairment|||impairment||
|Investments|2,469,499,494.38|0.00|2,469,499,494.38|2,735,399,494.38|121,000,000.00|2,614,399,494.38|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||||
|-|-|-|-|-|-|-|
|in|||||||
|subsidiaries|||||||
|Investments||||180,831,714.55|||
||216,347,074.31|39,930,000.00|176,417,074.31||0.00|180,831,714.55|
|in associates|||||||
|Total|2,685,846,568.69|39,930,000.00|2,645,916,568.69|2,916,231,208.93|121,000,000.00|2,795,231,208.93|

 (1)Investments in subsidiaries
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
||Original|Increases in|Decreases in||Provision for||
|Investees||||30 June 2016||Impairment|
||investment cost|investment cost|investment cost||impairment||
|Zhijun Trade|11,116,866.42|0.00|0.00|11,116,866.42|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 Pharm|204,366,933.09|0.00|0.00|204,366,933.09|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|265,900,000.00|0.00|0.00|0.00|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||||||
|-|-|-|-|-|-|-|
|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|
|Yanfeng|||||||
|Sinopharm|||||||
||21,281,900.00|0.00|0.00|21,281,900.00|0.00|0.00|
|Meizhou|||||||
|Zhijun(Shenzhen|||||||
||38,387,182.16|0.00|0.00|38,387,182.16|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|265,900,000.00|2,469,499,494.38|0.00|0.00|

 (2)Investments in associates
Unit:RMB
|||||||||
|-|-|-|-|-|-|-|-|
||||Movement|||||
||31 December|Additionalinvestment||Other||Provision||
||||Share of||Dividend||30 Jnue 2016|
||2015|||Investment||of||
||||profit or loss||declared|||
|||||movement||impairment||
||Associates|||||||
|Wanle Medical|179,567,519.13|0.00|28,190,606.72||35,190,000.00|0.00|172,568,125.85|
|Sinopharm Zhuhai|1,264,195.42|0.00|134,206.51||0.00|0.00|1,398,401.93|
|Suzhou Zhijun|0.00|0.00|(3,947,806.47)|46,328,353.00|0.00|0.00|42,380,546.53|
|subtotal|180,831,714.55|0.00|24,377,006.76|46,328,353.00|35,190,000.00|0.00|216,347,074.31|
|Total|180,831,714.55|0.00|24,377,006.76|46,328,353.00|35,190,000.00|0.00|216,347,074.31|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 4. Sales and cost of sales
Unit:RMB
||||||
|-|-|-|-|-|
||For the six months ended 30 June 2016||For the six months ended 30 June 2015||
||Revenue|Cost|Revenue|Cost|
|Revenue of main|||||
||1,538,249,329.90|1,482,565,579.59|1,404,606,954.44|1,349,606,896.49|
|operations|||||
|Other operating income|14,092,258.34|11,402,822.51|5,308,781.06|489,205.40|
|Total|1,552,341,588.24|1,493,968,402.10|1,409,915,735.50|1,350,096,101.89|

 5. Investment income
Unit:RMB
||||
|-|-|-|
||For the six months ended 30 June||
|||For the six months ended 30 June 2015|
||2016||
|Gain on long-term equity investment|||
||531,332,344.99|514,513,119.54|
|under cost method|||
|Gain on long-term equity investment|||
||24,377,006.76|28,274,061.44|
|under equity method|||
|Gain on disposal of long-term equity|||
||63,351,000.00||
|investment|||
|Total|619,060,351.75|542,787,180.98|

 XIV.Supplementary information
1. Non-routine items
Unit:RMB
||||
|-|-|-|
||amount|Notes|
|||Mainly was from disposal ofasset by|
|Gains on disposal of non-current assets|8,792,371.94||
|||Guangxi logistics.|
|||Mainly contained various of special|
|Government grants related to income|7,581,599.85||
|||subsidies and financial discount.|
|Receivables impairment reversal by|||
||1,309,568.96||
|individual assessment|||
|||Mainly comes from hosting service for|
|Entrusted management custody fee|||
||353,773.59|Sinopharm Group and China National|
|income|||
|||Pharmaceutical Foreign Trade Co., Ltd.|

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016
||||
|-|-|-|
|||Mainly was overdue payment of equity|
|Other non-operating income|2,640,765.63||
|||transfer From Xinyu boda.|
|Deposit subsidiary and recalculate long-||Comes from depositing 67% of total|
||121,754,182.26||
|term equity investment||shares of Zhijun(Suzhou)|
|Less:Tax impact of above non-routine|||
||4,643,039.53||
|items|||
|Share of minority interests of above|||
||176,547.25||
|non-routine items after tax|||
|Total|137,612,675.45|--|

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||1.495|1.495|
|attributable to the shareholders|9.53%|||
|of the Company||||
|Consolidated net profit||||
|attributable to the shareholders||||
||7.11%|1.115|1.115|
|of the Company, excluding non-||||
|routine items||||

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF CHINA NATIONAL ACCORD MEDICINES CO., LTD. For the six months ended 30 June 2016 Section X. Documents Available for Reference
1. Accounting Statements carried with the signature and seals of legal representative, chief financial officer and person in charge of accounting;
2. Original text of all documents of the Company as well as manuscript of the announcement disclosed in reporting period on Securities Times, China Securities Journal and Hong Kong Commercial Daily appointed by the CSRC; 3. Original Annual Report carried with the personal signature of the Chairman;
4. The Place Where the document placed: Office of Secretariat of the Board of Directors, Accord Pharm Bldg., No. 15, Ba Gua Si Road, Futian District, Shenzhen