China National Accord Medicines Corporation Ltd
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China National Accord Medicines Corporation Ltd. Semi-Annual Report 2020 August 2020 1 Section I. Important Notice, Contents and Interpretation 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. Lin Zhaoxiong, Principal of the Company, Gu Guolin, person in charger of accounting works and Wang Ying, person in charge of accounting organ (accounting principal) hereby confirm that the Financial Report of Semi- Annual Report 2020 is authentic, accurate and complete. Other directors attending the Meeting for annual report deliberation except for the followed: Name of director absent Title for absent director Reasons for absent Attorney Lian Wanyong Director Official business Li Dongjiu The Company plans not to pay cash dividends, bonus and carry out capitalizing of common reserves. 2 Contents Semi-Annual Report 2020..................................................................................................................2 Section I Important Notice, Contents and Interpretation.............................................................. 2 Section II Company Profile and Main Financial Indexes...............................................................5 Section III Summary of Company Business.................................................................................... 9 Section IV Discussion and Analysis of the Operation................................................................... 13 Section V Important Events............................................................................................................ 33 Section VI Changes in shares and particular about shareholders...............................................61 Section VII Preferred Stock.............................................................................................................66 section VIII Convertible Bonds.......................................................................................................67 Section IX Particulars about Directors, Supervisors and Senior Executives ........................... 68 Section X Corporate bond............................................................................................................... 69 Section XI Financial Report............................................................................................................ 70 Section XII Documents available for reference........................................................................... 315 3 Interpretation Items Refers to Contents Listed Company, Company, the Company, Refers to China National Accord Medicines Corporation Ltd. Sinopharm Accord, the Group SINOPHARM Refers to China National Pharmaceutical Group Corporation Sinopharm Holding Refers to Sinopharm Group Co., Ltd, Controlling shareholder of the Company 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 SPD hospital logistics supply chain extension business, IVD diagnostic 4D business Refers to reagent business, CSSD disinfection service, and MWD equipment life cycle management business GPO Refers to Group purchasing organizations Abbreviation: Refers to Sinopharm Holding Guangzhou Refers to Sinopharm Holding Guangzhou Co., Ltd. Guoda Drugstore Refers to Sinopharm Holding Guoda Drugstore Co., Ltd. Sinopharm Holding Guangxi Refers to Sinopharm Holding Guangxi Co., Ltd. Foshan Nanhai Refers to Foshan Nanhai Pharmaceutical Group Co., Ltd. Nanfang Pharmaceutical Foreign Trade Refers to Guangdong Nanfang Pharmaceutical Foreign Trade Co., Ltd. China National Zhijun, Zhijun Refers to China National Zhijun (Shenzhen) Pharmaceutical Co., Ltd. Pharmaceutical Zhijun Pharmacy Trade Refers to Shenzhen Zhijun Pharmacy Trade Co., Ltd. Zhijun Pingshan, Pingshan Pharmaceutical Refers to China National Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd. Main Luck Pharmaceuticals Refers to Shenzhen Main Luck Pharmaceuticals Inc. Shanghai Dingqun Refers to Shanghai Dingqun Enterprise Management Consulting Co., Ltd. Jilin Tianhe Refers to Sinopharm Holding Tianhe Jilin Pharmaceutical Co., Ltd. Yanghetang Refers to Shanghai Yanghetang Pharmaceutical Chain Management Co., Ltd. Pudong Medicine Refers to Pudong New Area of Shanghai Pharmaceutical Medicine Ltd. 4 Section II. Company Profile and Main Financial Indexes I. Company profile Short form of the stock Sinopharm Accord, Accord B Stock code 000028, 200028 Stock exchange for listing Shenzhen Stock Exchange Name of the Company (in 国药集团一致药业股份有限公司 Chinese) Short form of the Company 国药一致 (in Chinese if applicable) Foreign name of the Company China National Accord Medicines Corporation Ltd. (if applicable) Short form of foreign name of Sinopharm Accord the Company (if applicable) Legal representative Lin Zhaoxiong II. Person/Way to contact Secretary of the Board Representative of security affairs Name Chen Changbing Wang Zhaoyu Accord Pharm. Bldg., No. 15, Ba Gua Si Accord Pharm. Bldg., No. 15, Ba Gua Si Contact add. Road, Futian District, Shenzhen, Road, Futian District, Shenzhen, Guangdong Province Guangdong Province Tel. +(86)755 25875195 +(86)755 25875222 Fax. +(86)755 25195435 +(86)755 25195435 E-mail [email protected] [email protected] 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 addressandcodesaswellaswebsiteandemail of the Company has no change in reporting period, found more details in Annual Report 2019. 5 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 2019 IV. Main accounting data and financial indexes Whether it has retroactive adjustment or re-statement on previous accounting data √Yes □No Cause of retroactive adjustment or restatement Enterprises combined under the same control Increase/decrease in Same period of last year Current period this report y-o-y (+,-) Before adjustment After adjustment After adjustment Operating revenue (RMB) 27,169,940,188.52 25,228,147,377.43 25,599,198,815.30 6.14% Net profit attributable to shareholders of the 643,451,580.59 650,833,360.40 649,154,414.55 -0.88% listed Company (RMB)(note 1) Net profit attributable to shareholders of the listed Company after deducting 627,017,019.45 639,700,447.95 639,700,447.95 -1.98% non-recurring gains and losses (RMB) Net cash flow arising from operating 1,438,204,043.35 1,163,757,581.35 1,139,154,120.89 26.25% activities (RMB) Basic earnings per share (RMB/Share) (note 1.50 1.52 1.52 -1.32% 1) Diluted earnings per share (RMB/Share) 1.50 1.52 1.52 -1.32% Decline 0.47 Weighted average ROE (note 1) 4.91% 5.44% 5.38% percentage points Increase/decrease in this report-end over End of current End of last period that of last period period-end (+,-) Before adjustment After adjustment After adjustment Total assets (RMB) 37,669,850,203.30 33,539,598,682.94 34,028,843,214.20 10.70% Net assets attributable to shareholder of 13,199,983,119.01 12,140,439,917.48 12,911,140,435.88 2.24% listed Company (RMB) Note: The Group acquired 75.00% equity of Pudong New Area of Shanghai Pharmaceutical Medicine Ltd. under the same control in the current year. When preparing the comparative statement of the 2020 semi-annual consolidated statement, it is deemed that the 6 parties involved in the merger already exist in the current state when the ultimate controlling party begins to exercise control, and adjust the previous comparative statement. Note 1: Net profit attributable to shareholders of listed companies decreased by 0.88% from the same period of last year, mainly due to the impact of the novel coronavirus pneumonia epidemic, the sales growth of the Group slowed down. At the same time, changes in industry policies have also led to a narrowing of profit margins, as a result, the basic earnings per share earnings fell by 1.32%, and the weighted average return on equity fell by 0.47%. V. 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