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个股公告正文

一致B:2015年年度报告(英文版)

日期:2016-03-26附件下载

                           国药集团一致药业股份有限公司 2015 年年度报告全文




China National Accord Medicines Corporation Ltd.

               Annual Report 2015




                   March 2016




                                                                         1
                                                 国药集团一致药业股份有限公司 2015 年年度报告全文




          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.
Lin Zhaoxiong, Principal of the Company, Wei Pingxiao, person in charger of
accounting works and Zhou Feifei, person in charge of accounting organ (accounting
principal) hereby confirm that the Financial Report of 2015 Annual Report is
authentic, accurate and complete.
All directors are attended the Board Meeting for report deliberation.
It is likely to existing risks in aspect of industrial competition, operation&
management, market and national policy, and majority investors are advised to
exercise caution of investment risks.
The profit distribution plan that deliberated and approved by the Board is: based on
total stock issued 362, 631, 943 shares, distributed 3.00 Yuan (tax included) bonus in
cash for every 10-share hold by all shareholders, 0shares bonus issued (tax included)
and no capitalizing of common reserves carried out.




                                                                                               2
                                                                              国药集团一致药业股份有限公司 2015 年年度报告全文




                                                           Contents




Section I Important Notice, Contents and Paraphrase ................................................................. 2

Section II Company Profile and Main Finnaical Indexes ............................................................. 5

Section III Summary of Company Business ................................................................................... 9

Section IV Discussion and Analysis by the Management Team ................................................. 13

Section V Important Events ........................................................................................................... 34

Section VI Changes in shares and particular about shareholders .............................................. 50

Section VII Preferred Stock……………………………………………………………..………..57

Section VIII Particulars about Directors, Supervisors,Senior Executives and Employees ...... 58

Section IX Corporate Governance ................................................................................................. 71

Section X Financial Report ............................................................................................................. 78

Section XI Documents available for reference ................................................................ ………194




                                                                                                                                         3
                                                            国药集团一致药业股份有限公司 2015 年年度报告全文




                                            Paraphrase


                 Items                  Refers to                           Contents
Listed Company, Company, the Company,
                                        Refers to China National Accord Medicines Corporation Ltd.
Sinopharm Accord, the Group
                                                  Sinopharm Group Co., Ltd.; Controlling shareholder of the
Sinopharm Holding                       Refers to
                                                  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
                                        Refers to RMB, RMB 10 thousand, RMB 100 million
Yuan
Terminology:
Direct selling                          Refers to A sales method of selling drug to the hospital directly
GMP certificate                         Refers to Good Manufacture Practice of Drugs certificate
GSP certificate                         Refers to Good Supply Practice certificate
                                                  That is CMS, and information system processing workflow &
Supply Chain Management                 Refers to
                                                  procurement, inventory & sales documents
Abbreviation
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.
Zhijun Pharmaceutical                   Refers to Shenzhen Zhijun Pharmaceutical Co., Ltd.
China National Zhijun (Suzhou)          Refers to China National Zhijun (Suzhou) Pharmaceutical Co., Ltd.
Zhijun Pharmacy Trade                   Refers to Shenzhen Zhijun Pharmacy Trade Co., Ltd.
China National Zhijun (Shenzhen)                  China National Zhijun (Shenzhen) Pingshan Pharmaceutical
                                        Refers to
Pingshan                                          Co., Ltd.
Main Luck Pharmaceutical                Refers to Shenzhen Main Luck Pharmaceuticals Inc.




                                                                                                              4
                                                                  国药集团一致药业股份有限公司 2015 年年度报告全文




           Section II Company Profile and Main Finnaical Indexes

I. Company information

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)
Foreign name of the
                             CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Company(if applicable)
Short form of foreign name
of the Company(if            SINOPHARM ACCORD
applicable)
Legal representative       Lin Zhaoxiong
                           Accord Pharm. Bldg., No. 15, Ba Gua Si Road, Futian District, Shenzhen, Guangdong
Registrations add.
                           Province
Code for registrations add 518029
                           Accord Pharm. Bldg., No. 15, Ba Gua Si Road, Futian District, Shenzhen, Guangdong
Offices add.
                           Province
Codes for office add.      518029
Company’s Internet Web
                           HTTP://WWW.SZACCORD.COM.CN
Site
E-mail                     INVESTOR@SZACCORD.COM.CN


II. Person/Way to contact

                                               Secretary of the Board                    Rep. of security affairs
Name                                    Chen Changbing
                                        Accord Pharm. Bldg., No. 15, Ba Gua
Contact add.                            Si Road, Futian District, Shenzhen,
                                        Guangdong Province
Tel.                                    +(86)755 25875195
Fax.                                    +(86)755 25195435
                                        0028@SZACCORD.COM.CN;
E-mail
                                        GYYZ0028@SINOPHARM.COM


III. Information disclosure and preparation place

                                                 Securities Times; China Securities Journal; Hong Kong Commercial
Newspaper appointed for information disclosure
                                                 Daily
Website for annual report publish appointed by
                                                 HTTP://WWW.SZSE.CN ; HTTP://WWW.CNINFO.COM.CN
CSRC
Preparation place for annual report              Secretariat of the Board of Directors
IV. Registration changes of the Company

Organization code                      19218626-7
Changes of main business since listing
                                       No change.
(if applicable)
Previous changes for controlling       No change.


                                                                                                                    5
                                                                      国药集团一致药业股份有限公司 2015 年年度报告全文


shareholders (if applicable)


V. Other relevant information

CPA engaged by the Company
Name of CPA                  Pricewaterhouse Zhongtian Certified Public Accountants Co., Ltd. (LLP)
                             11/Floor,PWC Center, Building 2#, Corporate Avenue, No.202 Hubin Rd., Luwan
Offices add. for CPA
                             District, Shanghai, P.R.C
Signing Accountants          Chen Yuntao, Tang Pianpian
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
√Applicable □Not applicable
                                                                     Name of sponsor        Continuous supervision
    Name of the sponsor         Offices add. for the sponsor
                                                                      representative               period
                             27/F-28/F, Building 2,
China International Capital  International Trade
                                                         Chen Jie, Zhang Lei          2014 -2016
Corporation Limited          Mansion, No.1 Jianguomen
                             Outer Street, Beijing
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable


VI. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and
accounting error correction or not
□ Yes √ No
                                                                            Changes over last
                                          2015                    2014                                   2013
                                                                                 year
Operating income (RMB)               25,993,139,277.84    23,954,331,028.05            8.51%       21,199,466,399.21
Net profit attributable to
shareholders of the listed             761,312,261.06          652,497,176.03             16.68%      520,488,198.80
company(RMB)
Net profit attributable to
shareholders of the listed
company after deducting non-           715,212,681.54          611,245,652.69             17.01%      505,828,794.23
recurring gains and
losses(RMB)
Net cash flow arising from
                                      1,047,979,102.98         -796,697,032.43           231.54%      465,028,099.83
operating activities(RMB)
Basic earnings per share
                                                   2.10                    1.90           10.53%                  1.81
(RMB/Share)
Diluted earnings per share
                                                   2.10                    1.90           10.53%                  1.81
(RMB/Share)
Return on Equity                                 14.94%                  16.41%          -1.47%                 26.00%
                                                                            Changes over end of
                                      End of 2015           End of 2014                              End of 2013
                                                                                 last year
Total assets (RMB)                   13,218,349,735.31    12,828,941,540.90               3.04%    11,057,896,941.31
Net assets attributable to
shareholder of listed company         5,453,393,694.55     4,764,607,822.09               14.46%    2,244,757,658.03
(RMB)




                                                                                                                         6
                                                                    国药集团一致药业股份有限公司 2015 年年度报告全文


VII. 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 either IAS
(International Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.


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 either foreign
accounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.


VIII. Quarterly main financial index

                                                                                                                 In RMB
                                      First quarter       Second quarter         Third quarter         Fourth quarter
Operating income                     6,261,714,700.23     6,552,088,466.54       6,866,003,376.77      6,313,332,734.30
Net profit attributable to
shareholders of the listed             197,026,237.82      190,293,014.51        186,753,078.44        187,239,930.29
company
Net profit attributable to
shareholders of the listed
                                       192,315,542.07      181,343,611.72        183,019,662.66        158,533,865.09
company after deducting non-
recurring gains and losses
Net cash flow arising from
                                       182,179,606.70      266,059,972.13        -40,080,428.91        639,819,953.06
operating activities
Whether there are significant differences between the above-mentioned financial index or its total number and the
relevant financial index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No


IX. Items and amounts of extraordinary profit (gains)/loss

√Applicable □ Not applicable
                                                                                                                    In RMB
                  Item                           2015               2014               2013                Note
                                                                                                   Mainly for the
                                                                                                   acquisition
                                                                                                   compensation
Gains/losses from the disposal of non-                                                             income of the
current asset (including the write-off         5,863,107.27       2,262,989.96        3,029,150.67 subsidiary
that accrued for impairment of assets)                                                             Sinopharm Liuzhou
                                                                                                   disposal of
                                                                                                   investment real
                                                                                                   estate.
Governmental subsidy reckoned into                                                                 Mainly for
                                              34,025,749.62      31,534,869.05       23,465,438.42
current gains/losses (not including the                                                            receiving of all


                                                                                                                         7
                                                                    国药集团一致药业股份有限公司 2015 年年度报告全文


subsidy enjoyed in quota or ration                                                                kinds of special
according to national standards, which                                                            subsidies and fiscal
are closely relevant to enterprise’s                                                             interest discount in
business)                                                                                         the period.
                                                                                                  Mainly for in the
                                                                                                  period the recovery
Switch back of provision for                                                                      separate provision
depreciation of account receivable             7,421,904.86       3,518,118.71       1,672,973.37 of Tibet Naqu
which was singly taken depreciation test                                                          Company accounts
                                                                                                  receivable bad debt
                                                                                                  of last year
                                                                                                  Mainly for
                                                                                                  Sinopharm Holding
                                                                                                  and China National
Consigning fee received for consigned
                                                 750,000.00         750,000.00         333,333.33 Pharmaceutical
operation
                                                                                                  Foreign Trade
                                                                                                  Company to provide
                                                                                                  hosting services.
                                                                                                  Mainly because the
                                                                                                  subsidiary
                                                                                                  Sinopharm Liuzhou
Other non-operating income and                                                                    obtained the
expenditure except for the                    19,155,803.67      16,116,561.38      -9,876,088.28 relocation award
aforementioned items                                                                              and business
                                                                                                  placement
                                                                                                  compensation for
                                                                                                  the demolition
Less: Impact on income tax                    11,848,624.93    11,767,755.13         3,851,467.99
     Impact on minority shareholders’
                                               9,268,360.97     1,163,260.63      113,934.95
equity (post-tax)
Total                                         46,099,579.52    41,251,523.34   14,659,404.57          --
Concerning the extraordinary profit (gain)/loss defined by Q&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 in Q&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 in Q&A Announcement No.1 on Information Disclosure for Companies Offering
Their Securities to the Public --- Extraordinary Profit/loss




                                                                                                                          8
                                                    国药集团一致药业股份有限公司 2015 年年度报告全文




                  Section III Summary of Company Business

I. Main businesses of the company in the reporting period

The main business of China National Accord Medicines includes pharmaceutical

distribution and pharmaceutical industry; the company adheres to the joint

development of technical research and development, industrial manufacturing

and marketing and trade, and commits to become a provider for pharmaceutical

and healthcare products and services with international competitiveness.

(I) In the pharmaceutical distribution field, the company continues to integrate

the distribution and logistics business, deeply penetrates into the end markets,

improves the multistep distribution network, creates intelligent supply chain,

and devotes to become a provider for pharmaceutical and healthcare products

and services with the strongest influence, the highest share, the most complete

variety, the best service, and the fastest delivery in south district of China.

1. The Company’s pharmaceutical distribution business is established in

Guangdong and Guangxi, the company has completed the network construction

of Guangdong and Guangxi in 2013, and the business has extended to the

county-level regions, and accelerated the integration of three-level companies in

2014, and realized the entire network operations in 2015.

2. The Company’s pharmaceutical distribution business has achieved the first

scale in Guangdong and Guangxi and the leading position in market segment of

Guangdong and Guangxi, and has obtained the relatively leading position in


                                                                                                  9
                                             国药集团一致药业股份有限公司 2015 年年度报告全文



vaccine, instrument, and e-commerce industries based on the full integration of

resources.

(II) In the pharmaceutical industry field, the company continues to integrate the

research & development and marketing and take the technological innovation as

a guide so as to become a provider for pharmaceutical and healthcare products

and services with quality leadership, core competitiveness, transverse

diversification, complete lengthways industry chain and brand influence in the

domestic and international markets

1. The company has obtained the international certification in pharmaceutical

industry, integrated export and product resources, explored the mainstream

markets in Europe and America, and realized internationalization in technical

cooperation, intellectual property protection, talent introduction, and joint

venture and cooperation and so on.

2. The Company has continued to develop cephalosporin series products and

upgrade products of bulk pharmaceutical chemicals, gradually introduced

cardiovascular, digestive, and respiratory system series products, taken bulk

pharmaceutical chemicals and chemical agents as core business and strategic

business, and traditional Chinese medicine and massive health as emerging

business.

II. Major changes in main assets

1. Major changes in main assets


           Major assets                      Note of major changes


                                                                                          10
                                                                   国药集团一致药业股份有限公司 2015 年年度报告全文




Equity assets                         No major changes.
                                      Increasing RMB 333,854,600 than the beginning of balance, with growth rate of
Fixed assets
                                      44.78%, mainly because Construction in progress transferred in the fixed assets.
Intangible assets                     No major changes.
                                      Decreasing RMB 154,121,900 than the beginning of balance, with growth rate
Construction in progress              of 46.67%, mainly because Construction in progress transferred in the fixed
                                      assets.

2. Main overseas assets

□ Applicable √ Not applicable
III. Core Competitiveness Analysis
1. Perfect distribution network
The Company owns an integrated distribution networks for pharmaceutical in Guangdong and Guangxi province,
and completely covers second grade class-A or above medical institutions and major chain drugstores in the above
two provinces. Furthermore, the Company offering medicine delivery services for the third terminal, represented
by many monomer drugstores, community health service network, clinic and new rural cooperative medical
system. Sinopharm Accord fully explore advantages of distribution network, provides customers with value-added
services and creating client value.
2. Leading edge intelligent supply chain
Distribution of the Company core with an intelligent supply chain, by means of promoting the jointly managed
inventory and intellectualized inventory management in hospital pharmacy, supply chain services extends
effectively with resources sharing and effective coordination in upstream-and-downstream achieved
3. High-efficiency management & control integration
The Company continues to promoted an integrated operation system in Guangdong and Guangxi province in
aspect of medicine distribution, focus on promoting integration both in procurement and foundation operation in
Guangdong and Guangxi province; accelerate the move towards collaboration in business of apparatus,
consumables, vaccine etc. within Guangdong and Guangxi, realized a synchronous of management in areas of
Guangdong and Guangxi. Firmly committed to the guidelines of delivering, specialization and integration in
aspect of pharmaceutical industry, optimize the platform structure of “three centers and three bases”, the
integrated operational standards for industry improved constantly.
4. Rich product resources
In aspect of pharmaceutical distribution, the Company building an extensive cooperation with thousands of
venders and commercial enterprise in China, establishing a stable business relationship with hundreds of
importers and joint venture companies, owns variety resources of products. In aspect of pharmaceutical industry,
the Company take more eyes on pharmacy of anti-infection, respiratory system, digestive system and angiocarpy
as well as massive health, and possess an international-standards-qualify modern pharmaceutical R&D
manufacturing base, established many production lines (E.U.-certified) for powder-injection and oral solid dosage
forms and the production line of active ingredient. By means of building a strictly mechanism for quality
management and controlling, the Company has created multiple brands that takes top place in market shares.


                                                                                                                     11
                                                                国药集团一致药业股份有限公司 2015 年年度报告全文


5. Unique-influence Sinopharm brand
Brand of the Company and distribution, industry child-brand and controlling shareholder and actual controller’s
brand come down in one continuous line, depending on powerful force of central enterprises, the Company’s
popularity and influence are prominent day by day in the industry.




                                                                                                             12
                                             国药集团一致药业股份有限公司 2015 年年度报告全文



     Section IV Discussion and Analysis by the Management Team
1. Introduction

2015 is the last year of "the 12th Five-Year Plan". In the past year, the company

has always faced the challenges beyond imagination and changeable

environment, the pressure of macro economy downturn was increasing, the

financial field was unordered and turbulent, and the changes of various policies

including clinical drug verification, new versions of GMP / pharmacopeia,

unannounced inspection, electronic supervision code, and decrease of bid price

make us have no time for them.

In face of the harsh environment and unfavorable situation, the company has

ensured the performance growth, the managers at all levels and staff have

assumed responsibilities and responded actively, the company’s annual sales has

exceeded 30 billion yuan in the joint efforts of all staff, the net profit has

continued a steady and rapid growth, and the cash flow has got the best level. At

the same time, in the company’s published major asset restructuring programs,

the company has been determined to engage in the distribution business in

Guangdong and Guangxi, create the unique national retail platform of China

National Pharmaceutical Group, and participate in pharmaceutical industry. All

these depend on the support of shareholders, the endeavor of team, and the hard

work of all staff; our market position has established the company's scale, and

our efforts have supported our values.




                                                                                          13
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In 2015, the Company realized operating income of RMB 25.993 billion,

representing a year-on-year increase of 8.51%; net profit attributable to shareholders

of listed company of RMB 761 million, representing a year-on-year increase of

16.68%. The Company has continued to keep growth.

As for distribution segment, operating income was RMB 24.325 billion, representing

a year-on-year increase of 9.10%; net profit of RMB 439 million, representing a year-

on-year increase of 24.16%.

As for pharmaceutical segment, operating income was RMB 1.677 billion,

representing a year-on-year decrease of 0.30%; net profit of RMB 254 million,

representing a year-on-year increase of 12.51%.



The major works done throughout the year:

1. Innovate management ideas, promote quality and efficiency

Based on the firstly determined company - business division two-stage

management and control mode, the company has continued to carry out the

projects for management improvement and benchmarking management,

promoted the innovative practice and leadership promotion projects,

implemented the management innovation to business development for boosting

the advance of quality and efficiency.

Distribution segment: from the initial integration strategy to the pioneering

intelligent supply chain mode, the overall expense ratio of distribution in 2015

has decline 0.4% percent compared with the same period of last year;


                                                                                               14
                                               国药集团一致药业股份有限公司 2015 年年度报告全文



Industry segment: continue to practice the lean manufacturing management

philosophy. In 2015, Zhijun Pharmaceutical has completed the upgrading and

reconstruction for rear-end automation of 3 production lines for powder

injection, and entirely realized the rear-end automation.

2. Optimize industry structure, and product mix becomes more reasonable

Distribution segment: in 2015, the direct selling accounted for 74%, the sales of

domestic products reached 52.2%, the market shares of distribution hospitals

surpassed competitors and established a leading position; in 2015, total 27

regions ranked top three in Guangdong and Guangxi;

Industry segment: the sales of oral solid dosage forms in 2015 accounted for

58%, and the product structure has been further optimized.

3. Speed up the distribution network sink to form complete network coverage

Up to 2015, the company has established a four-layer logistics center of

hierarchical distribution system, including 5 large logistics centers, and 17 small

and medium sized distribution centers; combined the strategic logistics

outsourcing, the distribution covered the commercial and medical institutions,

retail outlets,     Guangdong and Guangxi business, , retail outlets, essential

drugs, narcotics, cold chain, and apparatus.

4. New distribution business has significantly enhanced and formed new scale

contributions

New distribution business has continued to innovate in business development,

channel extension, medicine e-commerce, and professional services. Up to 2015,


                                                                                            15
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the company has signed the contracts for 21 medical cooperation projects,

opened 14 DTC pharmacies in Guangdong and Guangxi (6 in Guangdong and 8

in Guangxi); the customer on website reached 634 in 2015 and achieved the

annual sales of 4 billion, meanwhile, the company has established the chain

management system to explore the comprehensive O2O development mode of

retail business.

5. Promote the construction of industrial base and expand the space for

industrial development

In 2015, Zhijun Pingshan has got the new GMP certificate and formally put into

operation, Zhijun Guanlan cephalosporin powder injection workshop ⅡⅢ lines

have been prequalified by WHO.

6. Establish an international brand, and strengthen the competitive advantages

of domestic species

The company has a rapid growth in industry internationalization and has

actively explored the mainstream market business, the sales of independent

products has exceeded a hundred million in 2015.

International biddings:

UK: Consecutively won the bidding of the British National Health Service

Bureau from 2011 to2015, and became the first Chinese supplier of powder

injection;

Sweden: Won the bidding of the public hospitals in Sweden during 2014--2015;




                                                                                         16
                                                                  国药集团一致药业股份有限公司 2015 年年度报告全文



Germany: Won the bidding of the public hospitals of German government

during 2014--2015;

Hong Kong: Zhijun Guanlan has been winning the bidding for 8 years since

2007;

Spain: Cefuroxime axetil tablets have been successfully exported to Spain in

2015.

International registrations:

From 2011 to 2015, the company has obtained 13 self-owned brand products in

20 countries and regions, a total of 101 registered approvals.

7. Focus on the strategy of large variety, and drive the industrial transformation

The company has carried out the strategy of large variety for pharmacy,

successfully cultivated Cefixime Granules (DaLiFen) and Cefuroxime Axetil

Tablets (DaLiXin) by increasing the production and sales of oral solid dosage

forms, and 7 varieties have exceeded a hundred million at the end of 2015.
II. Main business analysis
1. Introduction
See the “I-Introduction” in “Discussion and Analysis by the Management Team”


2. Revenue and cost

(1) Constitute of operation revenue

                                                                                                             In RMB
                                    2015                                    2014
                                                                                                  Increase/decrease
                                       Ratio in operation                      Ratio in operation
                         Amount                                 Amount                                  y-o-y
                                            revenue                                 revenue
Total of operation
                    25,993,139,277.84               100% 23,954,331,028.05                 100%              8.51%
revenue
According to industries
Pharmaceutical
                    24,230,858,388.18              93.22% 22,195,808,452.75              92.66%              9.17%
manufacturing
Medicine             1,628,474,289.30               6.27% 1,641,881,896.69                6.86%             -0.82%


                                                                                                                  17
                                                                        国药集团一致药业股份有限公司 2015 年年度报告全文


commerce
Logistic & storage
                        29,492,120.37                    0.11%      32,110,291.44                0.13%              -8.15%
service
Income from
leasing& training      104,314,479.99                    0.40%      84,530,387.17                0.35%              23.40%
service
According to products
Drug                25,326,566,581.31                97.44% 23,402,900,115.08                 97.70%                 8.22%
Instrument             538,085,402.20                 2.07%    438,686,557.85                  1.83%                22.66%
Other                  128,487,294.33                 0.49%    112,744,355.12                  0.47%                13.96%
According to region
Domestic revenue 25,917,340,319.29                   99.71% 23,868,171,044.87                 99.64%                 8.59%
Foreign revenue         75,798,958.55                 0.29%     86,159,983.18                  0.36%               -12.03%

(2) About the industries, products, or regions accounting for over 10% of the company’s operating income
or operating profit

√Applicable □ Not applicable
                                                                                                                   In RMB
                                                                                                         Increase/decrea
                                                                         Increase/decrea Increase/decrea
                     Operating                           Gross profit                                      se of gross
                                    Operating cost                       se of operating se of operating
                      revenue                               ratio                                        profit ratio y-o-
                                                                          revenue y-o-y     cost y-o-y
                                                                                                                 y
According to industries
Pharmaceutical 24,230,858,388. 22,964,838,971.
                                                             5.22%            9.17%             9.32%           -0.13%
business                      18               38
According to products
                25,326,566,581. 23,419,531,346.
Drug                                                         7.53%            8.22%             8.63%           -0.35%
                              31               43
According to region
Domestic        25,917,340,319. 23,912,429,054.
                                                             7.74%            8.59%             9.01%           -0.36%
revenue                       29               88
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business
based on latest one year’s scope of period-end
□ Applicable √ Not applicable
(3) Income from physical sales larger than income from labors
√ Yes □ No
                                                                                                          Increase/decrease
     Industries              Item                 Unit                  2015              2014
                                                                                                                y-o-y
                                        10 thousand
                    Sales volume                                               42,914            39,714              8.06%
                                        branches/box
Chemical agent
                                        10 thousand
(Zhijun + Zhijun    Output                                                     44,324            44,389             -0.15%
                                        branches/box
Suzhou)
                                        10 thousand
                    Storage                                                     9,543             9,109              4.76%
                                        branches/box
                    Sales volume        KG                                 132,211            212,233              -37.70%
Chemical Raw
                    Output              KG                                 163,622            248,726              -24.61%
Medicine
                    Storage             KG                                  45,981             42,046                9.36%
                                        10 thousand
                    Sales volume                                                1,208             1,207              0.05%
                                        branches/box
Chinese patent                          10 thousand
                    Output                                                      1,378             1,247             10.47%
drugs                                   branches/box
                                        10 thousand
                    Storage                                                    318.44            175.98             80.95%
                                        branches/box
Massive health      Sales volume        10 thousand                              8.36              4.57             83.02%

                                                                                                                          18
                                                                      国药集团一致药业股份有限公司 2015 年年度报告全文


                                        branches/box
                                        10 thousand
                    Output                                                  8.84              13.63             -35.13%
                                        branches/box
                                        10 thousand
                    Storage                                                 3.88               4.19              -7.50%
                                        branches/box
                                        10 thousand
                    Sales volume                                           2,207              2,632             -16.16%
                                        branches/box
                                        10 thousand
International trade Output                                                 2,161              2,854             -24.28%
                                        branches/box
                                        10 thousand
                    Storage                                                  241                290             -16.75%
                                        branches/box
Reasons for y-o-y relevant data with over 30% changes
√Applicable □ Not applicable
Sales of Chemical Raw Medicine: affected by the EIA, the partial products have shut down.
Inventory of Chinese patent drugs: relocation of Begualing factory, some products need to stock up.
Sales of Massive health: the new business module is small base and growing rapidly.
Production of Massive health: affected by sales structure adjustment, focusing on coenzyme Q10 and mask
products, other products production decreased.

(4) Fulfillment of the company’s signed significant sales contracts up to this reporting period

□ Applicable √ Not applicable


(5) Constitute of operation cost

Industry classification
                                                                                                                 In RMB
                                               2015                                2014
                                                                                                         Increase/decrea
   Industries             Item                         Ratio in                           Ratio in
                                      Amount                              Amount                             se y-o-y
                                                     operation cost                     operation cost
Wholesale and
                                   22,964,838,971.
retail of         Sales cost                                95.80% 21,007,553,553.             95.48%             9.32%
                                               38
Pharmaceutical                                                                 67
Pharmaceutical
                  Sales cost       951,255,881.90            3.97%                              4.33%            -0.13%
manufacturing                                                          952,511,232.92
Logistic &        Transportation
                                    21,625,831.36            0.09%                              0.11%           -13.50%
storage service   & storage cost                                        24,999,668.41
Leasing & other
                  Service cost      34,321,923.28            0.14%                              0.08%           95.41%
income                                                                  17,564,314.91
Explanation


(6) Whether the changes in the scope of consolidation in Reporting Period

□ Yes √ No


(7)Major changes or adjustment in business, product or service of the Company in Reporting Period

□ Applicable √ Not applicable
(8) Major sales and main suppliers


                                                                                                                       19
                                                                     国药集团一致药业股份有限公司 2015 年年度报告全文


Major sales client of the Company
Total top five clients in sales (RMB)                                                               1,280,553,288.75
Proportion in total annual sales volume for top five
                                                                                                               4.95%
clients
Information of top five clients of the Company
  Serial                     Name                             Sales (RMB)           Proportion in total annual sales
1         First                                                    398,923,994.35                                1.54%
2         Second                                                   227,803,217.03                                0.88%
3         Third                                                    227,064,631.77                                0.88%
4         Fourth                                                   216,462,019.65                                0.84%
5         Fifth                                                    210,299,425.95                                0.81%
Total                           --                               1,280,553,288.75                                4.95%
Other situation of main clients
□ Applicable √ Not applicable
Main suppliers of the Company
Total purchase amount from top five suppliers
                                                                                                    4,176,504,599.53
(RMB)
Proportion in total annual purchase amount for top
                                                                                                              13.19%
five suppliers
Information of top five suppliers of the Company
   Serial                    Name                             Sales (RMB)           Proportion in total annual sales
1           First                                                  972,629,193.33                                3.07%
2           Second                                                 911,707,279.26                                2.88%
3           Third                                                  881,824,147.48                                2.78%
4           Fourth                                                 723,802,343.51                                2.29%
5           Fifth                                                  686,541,635.95                                2.17%
Total                          --                                4,176,504,599.53                               13.19%
Other notes of main suppliers of the Company
□ Applicable √ Not applicable


3. Expenses

                                                                                                               In RMB
                                                                Increase/decreas
                                  2015                 2014                           Note of major changes
                                                                     e y-o-y
Sales expense               533,791,055.46       522,383,083.15            2.18% No major change.
Management expense          459,218,208.55       474,317,573.25           -3.18% No major change.
Financial expense            91,282,085.47       123,129,102.91          -25.86% No major change.

4. R&D expenses

√Applicable □ Not applicable
1. Purpose: carry out new product development, and improve the enterprise’s capacity for sustainable
development; start the consistency evaluation for generic drug, strengthen the technical supports for products on
the market, and improve the market competitiveness; strengthen the management of intellectual property rights,
and improve the core technology content of products.
2. The progress of the project and the objectives to be achieved:
(1) In 2015, 8 projects have been declared and registered (of which 7 for production and 1 for clinic); 6 projects
have obtained the approved documents (of which 1 for production and 5 for clinic).



                                                                                                                    20
                                                                   国药集团一致药业股份有限公司 2015 年年度报告全文


(2) Four industrial projects: the research and development of cefoxitin sodium, cefixime, nizatidine, and raw
materials of cefuroxime sodium has achieved stage results, thereinto, which cefoxitin sodium, cefixime, and
nizatidine have achieved the goal of industrialization.
(3) The consistency evaluation for generic drug has been launched and being implemented.
(4) Applied for 5 patents for invention this year, and 4 patents for invention have been authorized.
3. The impact on the future development of the company:
(1) Provide new profit growth points for enterprise development through new product development so as to
increase the enterprise’s capacity for sustainable development.
(2) Improve the market competitiveness of existing varieties by giving technical innovation and supports to the
current products, as well as the consistency evaluation, so as to improve enterprise profitability.
(3) Enhance the core technical content of products through the management of intellectual property rights, and
facilitate the product bidding at the same time.
R&D investment of the Company
                                          2015                         2014                     Change ratio
Number of R&D (people)                                    94                         95                      -1.05%
Ratio of number of R&D                                2.02%                      2.14%                       -0.12%
R&D investment (Yuan)                        73,150,395.26               81,216,093.52                       -9.93%
R&D investment accounted
                                                      0.28%                      0.34%                       -0.06%
for R&D income
R&D investment
                                                        0.00                       0.00                        0.00%
capitalization (Yuan)
Capitalization R&D
investment accounted for                              0.00%                      0.00%                         0.00%
R&D investment
The reason of great changes in the proportion of total R&D investment accounted for operation income than last year
□ Applicable √ Not applicable
Reason for the great change in R&D investment capitalization rate and rational description
□ Applicable √ Not applicable


5. Cash flow

                                                                                                              In RMB
             Item                        2015                          2014                   Y-o-y changes
Subtotal of cash in-flow
                                        29,260,366,119.30            24,692,507,689.55                      18.50%
from operation activity
Subtotal of cash out-flow
                                        28,212,387,016.32            25,489,204,721.98                      10.68%
from operation activity
Net cash flow from
                                         1,047,979,102.98               -796,697,032.43                    231.54%
operation activity
Subtotal of cash in-flow
                                            64,676,605.21                 29,525,701.57                    119.05%
from investment activity
Subtotal of cash out-flow
                                           199,814,031.68                344,881,221.02                    -42.06%
from investment activity
Net cash flow from
                                          -135,137,426.47               -315,355,519.45                     57.15%
investment activity
Subtotal of cash in-flow
                                           210,787,436.91              2,495,098,201.62                    -91.55%
from financing activity
Subtotal of cash out-flow
                                           408,614,815.90              1,626,787,835.56                    -74.88%
from financing activity
Net cash flow from
                                          -197,827,378.99                868,310,366.06                   -122.78%
financing activity
Net increased amount of                    715,014,297.52               -243,736,347.61                    393.36%

                                                                                                                  21
                                                                   国药集团一致药业股份有限公司 2015 年年度报告全文


cash and cash equivalent
Main reasons for y-o-y major changes in aspect of relevant data
√Applicable □ Not applicable
(1) Net cash flow generated by operating activities: a year-on-year growth of 231.54%, mainly because the sales
volume of current period has increased and the accounts receivables have been taken back in time, so that the
operational cash inflow has increased on a year-on-year basis;
(2) Subtotal of cash inflow generated by investing activities: a year-on-year growth of 119.05%, mainly because
the earnest money for selling the shares of subsidiaries has been received in the current period, which made the
investment cash inflows increase on a year-on-year basis;
(3) Subtotal of cash outflow generated by investing activities: a year-on-year decline of 42.06%, mainly because
the investment to Pingshan base project in the current period has been decreased compared with the previous
period, which made investment cash outflows decline on a year-on-year basis;
(4) Net cash flow generated by investing activities: a year-on-year growth of 57.15%, mainly because the
investment to Pingshan base project in the current period has been decreased compared with the previous period,
which made investment cash outflows decline on a year-on-year basis;
(5) Subtotal of cash inflow from financial activities: a year-on-year decline of 91.55%, mainly because funds for
private placement have been received in the previous period, while there is no such business in the current
period;
(6) Subtotal of cash outflows from financial activities: a year-on-year decline of 74.88%, mainly because funds
for private placement have been received in the previous period, so the company has enough funds used for
structural deposits, while there is no such business in the current period;
(7) Net cash flow generated by financial activities: a year-on-year decline of 122.78%, mainly because funds for
private placement have been received in the previous period, while there is no such business in the current
period;
(8) Net increase in cash and cash equivalents: a year-on-year growth of 393.36%, mainly because the net cash
flow provided by operating activities has increased by 231.54% on a year-on-year basis and the net cash flow
from financial activities has decreased by 122.78% on a year-on-year basis.


Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
√Applicable □ Not applicable
During the reporting period, the company generated net cash flow from operating activities RMB 1,047,979,102.98, net
profit RMB787,347,909.22, there was big difference mainly because return of accounts receivable proceeded faster
and made the y-o-y increase of operating cash inflow.


III. Analysis of the non-main business

□ Applicable √ Not applicable


IV. Assets and liability

1. Major changes of assets composition

                                                                                                               In RMB
                       End of 2015                End of 2014             Ratio
                                                                                        Notes of major changes
                    Amount      Ratio in       Amount      Ratio in      changes


                                                                                                                     22
                                                                       国药集团一致药业股份有限公司 2015 年年度报告全文


                                  total assets                  total assets
                  1,570,706,97                   867,562,115.
Monetary fund                         11.88%                         6.76%     5.12% No major change.
                          0.51                             54
Account           6,153,830,88                   7,018,312,67
                                      46.56%                        54.71%     -8.15% No major change.
receivable                2.75                           3.19
                  2,533,160,75                   2,322,333,26
Inventory                             19.16%                        18.10%     1.06% No major change.
                          8.28                           2.87
Investment        145,102,318.                   73,836,850.5
                                       1.10%                         0.58%     0.52% No major change.
property                    77                              1
Long-term
                  180,831,714.                   157,604,846.
equity                                 1.37%                         1.23%     0.14% No major change.
                           55                             85
investment
                1,079,412,43                 745,557,829.
Fix assets                             8.17%                         5.81%     2.36% No major change.
                        7.53                           35
Construction in 176,096,786.                 330,218,696.
                                       1.33%                         2.57%     -1.24% No major change.
process                   58                           56
Short-term      1,212,959,26                 1,517,954,52
                                       9.18%                        11.83%     -2.65% No major change.
 loans                  7.74                         8.88
Long-term       72,495,172.3                 39,695,448.0
                                       0.55%                         0.31%     0.24% No major change.
loans                      0                            0

2. Assets and liability measured by fair value

□ Applicable √ Not applicable


V. Investment

1. Overall situation

√Applicable □ Not applicable
                                       Investment in the same period of last
  Investment in the reporting (RMB)                                                             Changes
                                                   year ( RMB)
                          1,002,980.00                         7,490,000.00                                   -86.61%

2. The major equity investment obtained in the reporting period

□ Applicable √ Not applicable


3. The major non-equity investment doing in the reporting period

□ Applicable √ Not applicable


4. Financial assets investment

(1) Securities investment
□ Applicable √ Not applicable
The company had no securities investment in the reporting period.




                                                                                                                    23
                                                                       国药集团一致药业股份有限公司 2015 年年度报告全文


(2) Derivative investment

□ Applicable √ Not applicable
The Company has no derivatives investment in the Period


5. Application of raised proceeds

√Applicable □Not applicable


(1)Overall application of raised proceeds

√Applicable □Not applicable
                                                                                                            In 10 thousand Yuan
                                                                                                           Usage of
                                                                                                               the
                                                                                                           retained
                                                         Total        Cumulati     Ratio of
                                                                                                             raised
                                               Total     raised       ve raised   cumulativ     Total
                                     Total                                                                  capitals Raised
                                             accumula capital          capitals    e raised   accumula
                         Total       raised                                                               and what capitals
                                                tive      has            has       capitals      tive
   Year       Way        raised     capital                                                                     is     idle for
                                               raised   purpose       purpose         has       raised
                        capitals      used                                                                 expected more than
                                              capitals of uses         of uses     purpose     capitals
                                   in Period                                                                    to    two years
                                                used    changed       changed       of uses    unused
                                                                                                           invested
                                                       in Period       in total    changed
                                                                                                              with
                                                                                                             those
                                                                                                            capitals
           Private                                                                                        Not
                    194,175.9                 194,175.9
2014       placemen                   14.27                       0           0      0.00%              0 applicabl             0
                            9                         9
           t                                                                                              e
                    194,175.9              194,175.9
Total          --                     14.27                    0          0     0.00%          0     --              0
                            9                       9
                                    Explanation on General usage of raised capital
More details of the use of raised capitals can be seen in “Special report on the storage and the actual use of raised
capitals of the Company” disclosed on 21 March 2015. (Index of disclosure Juchao Website and No.: 2015-05)

(2) Situation of committed project of raised proceeds

√Applicable □Not applicable
                                                                                                         In 10 thousand Yuan
                       Projects
                                                                Amount ofInvestmen
      Committed       changed                                                                                        Project
                                    Total     Total             accumulatt program
 investment projects or not                           Amount                           Predicted Realized Reach thefeasibility
                                committednvestmen                    ed       till the
 and capital invested (includin                       invested                          useable interests predicted was
                                 nvestment after                investmen period-
  in areas with fund      g                           in report                         date of     in interest or changed
                                 of raised adjustmen             t till the     end
   raising out of the changed                          period                           project Period       not hugely or
                                  capitals     (1)              period-end(3)=(2)/(1
          plan        partially                                                                                        not
                                                                     (2)          )
                          )
Committed investment projects
Loans payment to                 143,405.9 143,405.9             143,405.9 100.00%
                      No                                                                                0否         否
Bank                                      2         2      0.00            2
Current capital
                      No                                                     100.00%                    0否         否
supplementation                  49,500.62 49,500.62       6.83 49,500.62
Issue expense
                      No                                                     100.00%                    0否         否
payment                            1,269.45 1,269.45       7.45 1,269.45

                                                                                                                              24
                                                                      国药集团一致药业股份有限公司 2015 年年度报告全文


Subtotal of
committed                 --     194,175.9 194,175.9           194,175.9    --       --           0    --       --
investment projects                      9         9     14.28         9
Capital invested in areas with fund raising out of the plan
Not applicable
                                 194,175.9 194,175.9            194,175.9
Total                      --            9         9    14.28           9
                                                                            --       --           0    --       --
Situation about not
coming up to
schemed progress or Fund raised are invested on scheme
expected revenue
and the reason(In
specific project)
Explanation on
major changes on    Not applicable
project feasibility
                    Not applicable
Amount, usage and
progress of using for
fund raising out of
the plan
                        Not applicable
Change of
implementation
place of investment
project of raised
capitals
                        Not applicable
Regulation of
implementation
ways of investment
project of raised
capitals
                      Applicable
                      Till end of 20th March 2014, the pre-invested self-owned fund have been replaced by the fund
                      raised for returning the bank loans RMB 1,109,059,245.49 for the Company and its subsidiaries
                      (“the Group”), which was deliberated and approved by the “proposal of pre-invested self-owned
                      fund replaced by the fund raised” in 2nd extraordinary meeting of 6th session of the Board
                      Meeting 2014. The above mentioned self-owned fund invested in advance for purpose of fund
                      raised has been verified by Pricewaterhouse Zhongtian Certified Public Accountants Co., Ltd.
Preliminary           (LLP) with verification report Pricewaterhouse Zhongtian Te Shen Zi (2014) No. 855 verified.
investment and        From 21 March 2014 to 31 December 2014, the Company used the fund raised for returning the
replacement of        bank loans, supplying circulating fund s and paying the cost of issuance etc. of RMB
investment project of 832,557,917.77. As of 31 December 2014, the Company used the fund raised in 2014 of RMB
raised capitals       1,941,617,163.26, the cumulative use of funds raised a total of RMB 1,941,617,163.26, raise
                      funds balance has not yet been used to of RMB 142,732.75 (including raise funds balance can
                      be used to supply circulating fund of RMB 68,250.21 and issue reimbursed expenses has not
                      settled of RMB 74,482.54); The difference in the balance of the special account with the unused
                      funds raised of RMB 1,091,068.12 was bank interest received.The above mentioned the storage
                      and actual usage of fund raised has been verified by Pricewaterhouse Zhongtian Certified Public
                      Accountants Co., Ltd. (LLP) with verification report Pricewaterhouse Zhongtian Te Shen Zi
                      (2015) No. 568 verified.
                      Not applicable
Temporarily
supplement for the

                                                                                                                     25
                                                                       国药集团一致药业股份有限公司 2015 年年度报告全文


current capitals with
idle raised capitals
                        Not applicable
Amount and reason
for surplus of raised
capitals when
implementing
projects
Usage of the retained
 raised fund and
 what is expected to Not applicable
 invested with those
 fund
Issues or other
conditions found in     Use of the fund raised are strictly execute in line with the “tri-party supervision agreement for
use of fund raised      fund raised”, and no related issues or other conditions been found
and disclosure

(3)The changed project of raised proceeds

□ Applicable √ Not applicable
The Company has no project of raised proceeds changed in the Period


VI. Sales of major assets and equity

1. Sales of major assets

□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.


2. Sales of major equity

□ Applicable √ Not applicable


VII. Analysis of main holding company and stock-jointly companies

√Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
                                                                                                                In RMB
  Company                         Main      Register                         Operating Operating
               Type                                  Total assets Net Assets                        Net profit
    name                        business     capital                          revenue     profit
China                         Production
National                      for raw
Zhijun                        medicine of 200,000,00 1,219,558,9 571,726,28 1,390,510,6 290,687,13 263,706,54
           Subsidiary
(Shenzhen)                    chemical    0.00             65.65        5.52      24.23        9.93       7.77
Pharmaceut                    products,
ical Co.,                     processing

                                                                                                                             26
                                                          国药集团一致药业股份有限公司 2015 年年度报告全文


Ltd.                   for Chinese
                       traditional
                       patent
                       medicine,
                       production
                       of chemical
                       material of
                       medicine;
                       Import and
                       export trade
                       are treated
                       by
                       authorized
                       certificates.
                       Chinese
                       traditional
                       patent
                       medicine,
                       chemical
                       preparations
                       , antibiotics,
                       bio-
                       chemical
                       medicine,
                       biological
                       medicine,
                       diagnosis
                       medicine,
                       biological
                       medicine
                       with
                       features of
Sinopharm
                       treatment
Holding                and         1,000,000,0 5,311,312,3 1,245,966,6 14,405,931, 201,324,36 151,420,13
          Subsidiary   diagnosis, 00.00
Guangzhou                                            18.90       74.59      091.17       0.19       5.45
Co., Ltd.              shaped
                       packing
                       food,
                       chemical
                       products,
                       and
                       various
                       commodit
                       y and
                       technique
                       hold by
                       self-
                       support
                       and
                       agency as
                       well as
                       import &
                       export of
                       technology
Sinopharm              The drugs,
                                  500,000,00 1,787,906,1 642,847,53 3,465,239,7 100,801,52 100,494,43
Holding   Subsidiary   medical
                                  0.00             21.35       0.84       41.22       7.92       8.25
Guangxi                equipment,

                                                                                                       27
                                                                      国药集团一致药业股份有限公司 2015 年年度报告全文


Co., Ltd.                    goods
                             transportati
                             on,
                             warehousin
                             g, loading
                             and
                             unloading,
                             glass
                             apparatus,
                             cosmetics,
                             daily
                             general
                             merchandis
                             e sales,
                             other
                             business
                             services,
                             other
                             professional
                             consulting,
                             self-support
                             and agent
                             all kinds of
                             goods and
                             technology
                             import and
                             export,
                             rental
                             housing
Particular about subsidiaries obtained or disposed in report period
√Applicable □ Not applicable
                                      The method of obtaining and handling The influence to the whole production
            Company Name
                                       subsidiaries during the report period            and performance
Sinopharm Holding Guangzhou                                                  No significant impact on the
                                      New established
Medical Management Co., Ltd.                                                 performance of the Company
Notes of holding and shareholding companies
No special condition need to explain

VIII. Structured vehicle controlled by the Company

□ Applicable √ Not applicable
IX. Future Development Prospects

Priorities of the company’s distribution division in 2016

In 2016, the distribution division will accelerate the transformation from

traditional service thinking to service industry thinking, continue to innovate the

series products and services, face the patients instead of the hospital terminal,

and provide direct services for patients.

(I) Supply chain integration

                                                                                                                   28
                                               国药集团一致药业股份有限公司 2015 年年度报告全文



Further promote the construction of the supply chain integration, build a whole

visual and information networking operating system, and support the efficient

development of business with strong management services. In 2016, the

company shall focus on improving the integrated management system of

distribution and enhancing the integrated management efficiency.

(II) Three business brands

1. Strengthen OTC terminal marketing brands: give play to the advantages of

whole network operation, and improve the OTC terminal platform operations in

the whole province based on Hengxing Company.

2. Create medical service brands: change the service marketing of traditional

services from focusing on sales orders to focusing on inventory management and

logistics,   and   innovation   services   focus   on     services      of    undertaking

pharmaceutical affairs.

3. Establish DTC retail brands: improve DTC network layout, promote self-

paying pharmacies in hospital and 5 + X pharmacy mode, introduce the network

hospital mode, promote drug delivery service, and comprehensively promote

retail O2O strategy.

(III) Improve quality and efficiency

1. Enhance the sales proportion of high-quality customers, strengthen the

product development of variety with high gross margin, strengthen the variety

and quality analysis, establish exit accountability mechanisms, and enhance

profitability by optimizing structure.


                                                                                            29
                                             国药集团一致药业股份有限公司 2015 年年度报告全文



2. Adhere to the profit orientation, build a more steady and sustainable

operating system, give full play to operational financial management and control

function, save resources and funds and resource utilization, strengthen the

capital ratio, and improve economies of scale.

3. Establish a management system to optimize the equipment sales and purchase,

develop new products, complete product mix of equipments, improve production

quality management system for prepared herbal medicine in small pieces ready

for decoction, improve the management qualifications of all regions, and

vigorously promote the development of prepared herbal medicine in small pieces

ready for decoction; accelerate to develop new business of vaccines, improve the

variety management structure, develop the cold chain distribution, temperature

control systems and other innovative models and products, and enhance the

CDC mode supply capacity.

(IV) Management service backstage

1. Fast market reaction speed: from background to foreground, contact with

first line and the customers;

2. Strong decision-making management ability: To forward planning, based on

the establishment of various formats to adapt to the development of an

integrated platform for managed services model.

3. One platform (integrated platform), two systems (intelligent supply chain

system, internet marketing system), three big brands (terminal marketing,




                                                                                          30
                                                国药集团一致药业股份有限公司 2015 年年度报告全文



medical services, DTC chain), four major elements (platform, human power,

information, logistics)

Priorities of pharmaceutical division in 2016

In 2016, the pharmaceutical division shall focus on the establishment of actual

and efficient management background system: foreground- focus on building a

product marketing system suitable for market changes; background - focus on

establishing strict and efficient management service background.

(I) Optimize system

Optimize the management and control system of business division, dig the

internal growth potential, increase the investment attraction, take full advantage

of spare production capacity of Zhijun Pingshan, strive to complete the annual

budget targets, and achieve the expected profits.

(II) Marketing

Continue to promote marketing compliance management, subdivide the

tendering and non-tendering markets for non-essential drugs and essential

drugs, focus on oral solid preparation, pay attention to women and children and

low-cost medicine specialist hanging varieties, use big data to comprehensively

promote the refined marketing management, and enhance the product market

share.

(III) Research and development

1. Research and develop the follow-up promotion work of varieties withdrawn

investigation, transfer the focus of work to production and management of


                                                                                             31
                                                           国药集团一致药业股份有限公司 2015 年年度报告全文



current period, strengthen management efforts in the ongoing projects and

current technical support projects, and promote the consistency evaluation to

large varieties such as cefuroxime axetil tablets, cefixime granules, etc.

2. Provide supports for the variety bidding by digging variety technology and

patent advantages.

(IV) Internationalization

1. Promote citalopram international certification program of Zhijun Pingshan

as planned;

2. Zhijun Guanlan completes the EU authentication for solid workshop II, line

2/line 3 of powder workshop I;

3. Complete export orders for independent products of over a hundred million

yuan in the whole year.

(V) Production

Production centers arrange and deploy resources, deepen lean production, and

build production platforms of quality and efficiency.

1, Zhijun Pingshan: complete the overall relocation of Shenzhen Traditional

Chinese Medicine, and new GMP certification of the second phase. Focus on the

improvement of production efficiency and the overall cost decreasing and

benefit increasing;

2, Zhijun Guanlan: deepen lean management, TPM project management, and

promote team building.
X. Reception of research, communication and interview
1. In the report period, reception of research, communication and interview


                                                                                                        32
                                                                国药集团一致药业股份有限公司 2015 年年度报告全文


√Applicable □ Not applicable
           Time                        Way                     Type          Basic situation index of investigation
                                                                             Knew the influence of medical
2015-04-24                 Field research          Institute                 reform policy to the development of
                                                                             the industry. No material provided.
Reception (times)                                                                                                 1
Number of hospitality                                                                                             5
Number of individual reception                                                                                    6
Number of other reception                                                                                        82
Disclosed, released or let out major
                                           No disclosed, released or let out major undisclosed information
undisclosed information
2. from the end of reporting period to the disclosure date, reception of research, communication and
interview
√Applicable □ Not applicable
           Time                        Way                     Type          Basic situation index of investigation
                                                                             Knew the progress of major assets
                                                                             restructuring and continue
2016-01-13                 Field research          Institute
                                                                             suspension reason of the Company.
                                                                             No material provided.
Reception (times)                                                                                                 1
Number of hospitality                                                                                            46
Number of individual reception                                                                                   72
Number of other reception                                                                                        25
Disclosed, released or let out major
                                             No
undisclosed information




                                                                                                                 33
                                                                   国药集团一致药业股份有限公司 2015 年年度报告全文



                                     Section V. Iimportant Events

I. Profit distribution plan of common stock and capitalizing of common reserves plan

Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend
policy during the Reporting Period
√Applicable □ Not applicable
On 25 April 2015, the profit distribution plan for year of 2014 was deliberated and approved by annual general
meeting of 2014, that is taking total 362,631,943 shares as the radix, distributed RMB 2.00 (tax included) for each
10 shares in cash. The announcement of 2014 interest distribution implementation was released on 16 May 2015
by the Board (published in Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao
Website http://www.cninfo.com.cn), the profit distribution plan for year of 2014 was completed, and dividend for
public shares was distributed to the account of shareholders dated 22 May 2015 (A-share) and 26 May 2015 (B-
share) respectively.
                                        Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of
                                                              Y
Article of Association (Y/N):
Well-defined and clearly dividend standards and
                                                              Y
proportion (Y/N):
Completed relevant decision-making process and
                                                              Y
mechanism (Y/N):
Independent directors perform duties completely and play
                                                              Y
a proper role (Y/N):
Minority shareholders have opportunity to express
opinions and demands totally and their legal rights are       Y
fully protected (Y/N):
Condition and procedures are compliance and transparent
                                                              Not applicable
while the cash bonus policy adjusted or changed (Y/N):
Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan) in latest three
years (including the reporting period)
(1) Profit distribution plan for year of 2013
Taking total 362,631,943 shares as of 31 December 2013 as the radix, cash bonus of RMB 1.8
(before tax) each 10 shares will be distributed to whole shareholders. This profit distribution did not
convert capital reserve into share capital.
(2) Profit distribution plan for year of 2014
Taking the total 362,631,943 shares as of 31 December 2014 as the radix, cash bonus of RMB 2.00
(before tax) each 10 shares will be distributed to the whole shareholders. This profit distribution did
not convert capital reserve into share capital.
(3) Profit distribution plan for year of 2015
Taking the total 362,631,943 shares as of 31 December 2015 as the radix, cash bonus of RMB 3.00
(before tax) each 10 shares will be distributed to the whole shareholders. This profit distribution did
not convert capital reserve into share capital.

Cash dividend of common stock in latest three years (including the reporting period)
                                                                                                              In RMB
  Year for bonus     Amount for cash        Net profit      Ratio in net profit   Amount for cash    Proportion for
     shares            bonus (tax         attributable to    attributable to       bonus by other    cash bonus by


                                                                                                                    34
                                                                  国药集团一致药业股份有限公司 2015 年年度报告全文


                         included)        common stock       common stock            ways             other ways
                                          shareholders of    shareholders of
                                        listed company in listed company
                                           consolidation       contained in
                                           statement for      consolidation
                                            bonus year          statement
2015                 108,789,582.90         761,312,261.06             14.29%               0.00              0.00%
2014                  72,526,388.60         652,497,176.03             11.12%               0.00              0.00%
2013                  65,273,749.74         520,488,198.80             12.54%               0.00              0.00%
The Company gains profits in reporting period and the retained profit of common stock shareholders provided by parent
company is positive but no plan of cash dividend proposed of common stock
□ Applicable √ Not applicable


II. Profit distribution plan and capitalizing of common reserves plan for the Period

√Applicable □ Not applicable
Bonus shares for every 10-share (Share)                                                                             0
Dividends for every 10-share (RMB) (Tax
                                                                                                                 3.00
included)
Shares transferred from every 10 shares
                                                                                                                    0
(Share)
Equity base of distribution plan (Share)                                                                 362,631,943
Total cash dividend(RMB) (Tax included)                                                               108,789,582.90
Distributable profits (RMB)                                                                         2,160,557,903.68
Ratio of cash dividend in total profit
                                                                                                             100.00%
distribution
                                                  Cash dividend policy:
If the company’s development is at the growth stage with significant capital expenditures, the minimum proportion of
cash dividend in the profit distribution should reach 40%.
                  Detail explanation on profit distribution or capitalization from capital public reserve


III. Implementation of commitment

1. Commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior
management or other related parties have fulfilled during the reporting period and have not yet fulfilled by
the end of reporting period
√Applicable □ Not applicable
                                  Type of                                      Commitme Commitme Implemen
  Commitments        Promise                     Content of commitments
                                commitments                                      nt date    nt term   tation
Commitments
for
Share Merger
Reform
                                            As a large pharmaceutical
                                            commercial enterprise whose
                                            business involves pharmaceutical
                                            wholesale and retail, Sinopharm
Commitments in                              Holding may overlap with the
                               Commitment                                                           Normally
report of        Sinopharm                  Company in geographical                       Long-term
                               of                                              2005-06-21           implement
acquisition or   Holding                    segmentation during its future                effective
                               shareholders
equity change                               business development. To avoid
                                            the potential peer competition
                                            brought by such geographical
                                            overlap, Sinopharm Holding
                                            undertakes that, upon the transfer

                                                                                                                        35
                                                                国药集团一致药业股份有限公司 2015 年年度报告全文


                                             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                             Controllin
                                             control over (excluding                                    g
                                             Sinopharm Accord and its                                   sharehold
                                             controlled enterprises, similarly                          er is
                                             hereinafter) do not exist any                              implement
                                             business or operation that would                           in real
                                             constitute substantive peer                                earnest,
                                             competition with Sinopharm                                 Sinophar
                                             Accord and its controlled                                  m Accord
Commitments
                              Commitment     enterprises. II. the Company and                           will
make in initial   Sinopharm                                                                 Long-term
                              of             the enterprises it wholly-owns,     2013-09-05             actively
public offering   Holding                                                                   effective
                              shareholders   controls or has de facto control                           urged the
or re-financing
                                             over will not engage in,                                   controllin
                                             participate in or carry out in                             g
                                             Guangdong and Guangxi any                                  sharehold
                                             business or activities that would                          er and
                                             constitute substantive competition                         actual
                                             with the pharmaceutical                                    controller
                                             commercial businesses of                                   to fulfill
                                             Sinopharm Accord. III. The                                 commitme
                                             Company and the enterprises it                             nts
                                             wholly-owns, controls or has de
                                             facto control over will not engage
                                             in, participate in or carry out any
                                             business or activities that would
                                             constitute substantive competition
                                             with the pharmaceutical industrial

                                                                                                                 36
                                              国药集团一致药业股份有限公司 2015 年年度报告全文


                           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                            Controllin
                           it directly or indirectly controls                          g
                           (hereinafter referred to as                                 sharehold
                           “Connected Party”) will strictly                          er is
                           standardize the connected                                   implement
                           transactions with Sinopharm                                 in real
                           Accord and its controlled                                   earnest,
                           enterprises. II. for those connected                        Sinophar
                           transactions beyond avoidance or                            m Accord
            Commitment     out of reasonable causes, the                               will
Sinopharm                                                                  Long-term
            of             Company and Connected Party          2013-09-05             actively
Holding                                                                    effective
            shareholders   will enter into standardized                                urged the
                           connected transaction agreement                             controllin
                           with Sinopharm Accord                                       g
                           according to law. Sinopharm                                 sharehold
                           Accord will perform approval                                er and
                           procedure according to relevant                             actual
                           laws, rules and regulations, other                          controller
                           standardization documents and its                           to fulfill
                           constitutional documents, and                               commitme
                           fulfill its obligation to disclose                          nts
                           information on connected
                           transactions. III. For those
                           connected transactions beyond
                           avoidance or out of reasonable
                           causes, the Company and
                           Connected Party will determine
                           the prices of connected
                           transactions based on the prices of
                           same or similar transactions
                           entered into by independent third

                                                                                                37
                                             国药集团一致药业股份有限公司 2015 年年度报告全文


                         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                                     Controllin
                         undertaken in the Letter of                               g
                         Undertaking from China National                           sharehold
                         Pharmaceutical Group                                      er is
                         Corporation on Avoiding the Peer                          implement
            Commitment
Sinopharm                Competition with China National               Long-term   in real
            of actual                                       2013-10-16
Group                    Accord Medicines Corporation                  effective   earnest,
            controller
                         Ltd. that, “I. in the coming five                        Sinophar
                         years, Sinopharm Group intends                            m Accord
                         to take appropriate measures                              will
                         including replacement or                                  actively
                         acquisition of assets or equity                           urged the

                                                                                            38
                                            国药集团一致药业股份有限公司 2015 年年度报告全文


                         reorganization to solve the                                  controllin
                         problem of peer competition                                  g
                         between Weiqida and Sinopharm                                sharehold
                         Accord. II. apart from the matters                           er and
                         disclosed in the past and in the                             actual
                         Letter of Undertaking, the                                   controller
                         Company and the enterprises it                               to fulfill
                         wholly-owns, controls or has de                              commitme
                         facto control over (excluding                                nts
                         Sinopharm Accord and its
                         controlled enterprises, similarly
                         hereinafter) do not directly engage
                         in, participate in or carry out
                         within the PRC any business or
                         activities that would constitute
                         substantive competition with the
                         production and operation of
                         Sinopharm Accord. The relative
                         undertakings in respect of
                         avoiding peer competition given
                         by the Company in the past
                         remain valid. III. The Company
                         will not take advantage of its
                         control over Sinopharm Accord to
                         damage the legal interests of
                         Sinopharm Accord and other
                         shareholders (especially minority
                         shareholders). IV. The Letter of
                         Undertaking takes effect since the
                         date of issue and will remain
                         effective during the entire period
                         when the Company has been the
                         de facto controller or connected
                         party of Sinopharm Accord.”
                         Sinopharm Group has undertaken
                         in the Letter of Undertaking from
                         China National Pharmaceutical
                                                                                      Controllin
                         Group Corporation on
                                                                                      g
                         Standardization of the Connected
                                                                                      sharehold
                         Transactions with China National
                                                                                      er is
                         Accord Medicines Corporation
                                                                                      implement
                         Ltd that, “I. during the period
                                                                                      in real
                         when the Company takes control
                                                                                      earnest,
                         over Sinopharm Accord, the
                                                                                      Sinophar
                         Company and the companies or
                                                                                      m Accord
                         enterprises it directly or indirectly
            Commitment                                                                will
Sinopharm                controls (hereinafter referred to as             Long-term
            of actual                                          2013-09-22             actively
Group                    “Connected Party”) will strictly               effective
            controller                                                                urged the
                         standardize the connected
                                                                                      controllin
                         transactions with Sinopharm
                                                                                      g
                         Accord and its controlled
                                                                                      sharehold
                         enterprises. II. for those connected
                                                                                      er and
                         transactions beyond avoidance or
                                                                                      actual
                         out of reasonable causes, the
                                                                                      controller
                         Company and Connected Party
                                                                                      to fulfill
                         will enter into standardized
                                                                                      commitme
                         connected transaction agreement
                                                                                      nts
                         with Sinopharm Accord
                         according to law. Sinopharm
                         Accord will perform approval

                                                                                               39
                                         国药集团一致药业股份有限公司 2015 年年度报告全文


                     procedure according to relevant
                     laws, rules and regulations, other
                     standardization documents and its
                     constitutional documents, and
                     fulfill its obligation to disclose
                     information on connected
                     transactions. III. For those
                     connected transactions beyond
                     avoidance or out of reasonable
                     causes, the Company and
                     Connected Party will determine
                     the prices of connected
                     transactions based on the prices of
                     same or similar transactions
                     entered into by independent third
                     parties of no connection while
                     following the principles of open,
                     fair and just to ensure the fairness.
                     IV. when the board or
                     shareholders’ meeting of
                     Sinopharm Accord votes on the
                     relevant connected transactions
                     involving the Company and other
                     enterprises it controls, the
                     Company will perform obligations
                     including that necessary interested
                     directors and shareholders shall be
                     abstained from voting according
                     to relevant regulations, and follow
                     the legal procedures for approval
                     of connected transactions and
                     fulfill its information disclosure
                     obligation. V. the Company
                     guarantees not to take advantage
                     of its standing as actual controller
                     to seek unjust interests, or to use
                     connected transactions to illegally
                     transfer capital or profit out of
                     Sinopharm Accord, or to
                     prejudice the legal interests of
                     Sinopharm Accord and other
                     shareholders (especially minority
                     shareholders).”VI. The Letter of
                     Undertaking takes effect since the
                     date of issue and will remain
                     effective during the entire period
                     when the Company has been the
                     actual controller or connected
                     party of Sinopharm Accord.
Equity incentive
commitment
Other
commitments
for medium and
small
shareholders
Completed on
                 Y
time(Y/N)




                                                                                      40
                                                                    国药集团一致药业股份有限公司 2015 年年度报告全文


2. Concerning assts or project of the Company, which has profit forecast, and reporting period still in
forecasting period, explain reasons of reaching the original profit forecast

□ Applicable √ Not applicable
IV. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors
(if applicable) for “Qualified Opinion” that issued by CPA
□ Applicable √ Not applicable
VI. Particulars about the changes in aspect of accounting policy, estimates and calculation
method compared with the financial report of last year
□ Applicable √ Not applicable
No particulars about the changes in aspect of accounting policy, estimates or calculation method in Period.


VII. Major accounting errors within reporting period that needs retrospective restatement

□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.


VIII. Compare with last year’s financial report; explain changes in consolidation statement’s
scope

√Applicable □ Not applicable
New established subsidiary: Sinopharm Holding Guangzhou Medical Management Co., Ltd.


IX. Appointment and non-reappointment (dismissal) of CPA

Accounting firm appointed
                                                  Pricewaterhouse Zhongtian Certified Public Accountants Co., Ltd.
Name of domestic accounting firm
                                                  (LLP)
Remuneration for domestic accounting firm (in
                                                                              225(Without internal control audit costs)
10 thousand Yuan)
Continuous life of auditing service for
                                                  6
domestic accounting firm
Name of domestic CPA                              Tang Zhenfeng, Tang Pianpian
Name of foreign accounting firm (if applicable)   N/A
Remuneration for foreign accounting firm (10
                                                                                                                     0
thousand Yuan) (if applicable)
Continuous life of auditing service for foreign
                                                  0
accounting firm (if applicable)
Name of foreign CPA (if applicable)               N/A
Re-appointed accounting firms in this period
□Yes √No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√Applicable □ Not applicable



                                                                                                                     41
                                                                    国药集团一致药业股份有限公司 2015 年年度报告全文


The Company engaged Pricewaterhouse Coopers Zhongtian LLP as the audit body for internal control, and auditing

charge for internal control amounting as RMB 0.35 million.



X. Particular about suspended and delisting after annual report disclosed

□ Applicable √ Not applicable


XI. Bankruptcy reorganization

□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period


XII. Significant lawsuits and arbitrations of the Company

□Applicable √Not applicable
No significant lawsuits and arbitrations occurred in the reporting period


XIII. Penalty and rectification

□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.


XIV. Integrity of the company and its controlling shareholders and actual controllers

□ Applicable √ Not applicable


XV. Implementation of the company’s stock incentive plan, employee stock ownership plan or
other employee incentives

□ Applicable √ Not applicable
During the reporting period, the company has no stock incentive plan, employee stock ownership plan or other
employee incentives that have not been implemented.

XVI. Major related transaction
1. Related transaction with routine operation concerned

(1) The related transaction with routine operations concerned found more in the “XII. Related parties and related
transaction” in “Section X. Financial Report”;
(2) The related transactions are settled by cash and notes, disclosed on 22 March 2015, and disclosure on Juchao
Website with Notice No.: 2015-09;
(3) According with the Notice of Routine Related Transactions of the Company and subordinate enterprise for year of
2015, deliberated and approved by the Board dated 20 March 2015, during the reporting period, the affiliated company
sales representing 88.16% of the total predicted amount, affiliated company procurement representing 88.86% of the
total predicted amount, the interest expenditure of affiliated company loans representing 10.12% of the predicted
amount, the interest expenditure of buyer discount for affiliated company notes representing 17.53% of the predicted

                                                                                                                 42
                                                                   国药集团一致药业股份有限公司 2015 年年度报告全文


amount, the income of house leasing from affiliated company representing 99.84% of the predicted amount, expenditure
of the house equipment leasing by affiliated company representing 96.32% of the predicted amount, the income of
service providing from affiliated company representing 92.10% of the predicted amount and expenditure of the service
received by affiliated company representing 112.31% of the predicted amount.
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period
4. Contact of related credit and debt
√Applicable □Not applicable
Whether the Company had non-operating contact of related credit and debt
□ Yes √ No
The Company had no non-operating contact of related credit and debt in the reporting period.


5. Other related transactions

□ Applicable √ Not applicable
The company had no other significant related transactions in reporting period.


XVII. Significant contract and implementations

1. Trusteeship, contract and leasing

(1) Trusteeship
√Applicable □Not applicable
Explanation on trust
1. As subordinate companies of majority shareholder, Foshan Nanhai Medicine Co., Ltd. and Guangdong Dong
Fang Uptodate & Special Medicines Co., Ltd. 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, the actual controller Sinopharm Group entrusted
Sinopharm Accord and Sinopharm Accord agreed to take over the management of the above company.

Items generated over 10% gains/losses in total profit in reporting period for the Company
□ Applicable √ Not applicable
The Company had no trust items generated over 10% gains/losses in total profit in reporting period
(2) Contract


                                                                                                                 43
                                                                  国药集团一致药业股份有限公司 2015 年年度报告全文


□ Applicable √ Not applicable
No contract for the Company in reporting period
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in reporting period
2. Major guarantees
√Applicable □ Not applicable
 (1) Guarantees
                                                                                                   In 10 thousand Yuan
           Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
                       Related               Actual date of                                                   Guarant
    Name of the       Announce                 happening        Actual                              Impleme ee for
                                  Guarantee                                 Guarantee Guarantee
     Company             ment                   (Date of       guarantee                               nted    related
                                    limit                                      type       term
     guaranteed       disclosure                 signing         limit                                (Y/N)     party
                         date                  agreement)                                                       (Y/N)
China National
                      2013-08-                                             General     2014.4.4-
Accord Medicines                  20,000.00 2014-04-04           4,089.52                               No    Yes
                      20                                                   assurance 2022.4.3
Corporation Ltd.
China National
                      2015-03-                                             General     2015.5.28-
Accord Medicines                  20,000.00 2015-05-28           6,630.00                               No    Yes
                      21                                                   assurance 2016.2.15
Corporation Ltd.
China National
                      2014-03-                                             General     2014.7.17-
Accord Medicines                  40,000.00 2014-07-17             348.78                               No    Yes
                      22                                                   assurance 2020.7.17
Corporation Ltd.
China National
                      2015-03-                                             General     2015.5.15-
Accord Medicines                  30,000.00 2015-05-15           2,000.00                               No    Yes
                      21                                                   assurance 2016.5.14
Corporation Ltd.
China National
                      2015-03-                                             General     2015.6.18-
Accord Medicines                  25,000.00 2015-06-18          13,363.68                               No    Yes
                      21                                                   assurance 2016.6.15
Corporation Ltd.
                                                             Total actual occurred
Total approving external
                                                   75,000.00 external guarantee in                           86,184.29
guarantee in report period (A1)
                                                             report period (A2)
                                                             Total actual balance of
Total approved external
                                                             external guarantee at the
guarantee at the end of report                   135,000.00                                                  26,431.97
                                                             end of report period
period ( A3)
                                                             (A4)
                                    Guarantee of the Company for the subsidiaries
                       Related               Actual date of                                                   Guarant
    Name of the       Announce                 happening        Actual                              Impleme ee for
                                  Guarantee                                 Guarantee Guarantee
     Company             ment                   (Date of       guarantee                               nted    related
                                    limit                                      type       term
     guaranteed       disclosure                 signing         limit                               (Y/N)      party
                         date                  agreement)                                                       (Y/N)
Sinopharm Holding 2015-03-                                                 General     2015.10.23-
                                   5,000.00 2015-10-23           2,005.90                               No    Yes
Guangxi Co., Ltd. 21                                                       assurance 2016.10.23
Sinopharm Holding 2015-03-                                                 General     2015.7.30-
                                  20,000.00 2015-07-30          13,120.71                               No    Yes
Guangxi Co., Ltd. 21                                                       assurance 2016.7.30
Sinopharm Holding 2015-03-                                                 General     2015.9.8-
                                  25,000.00 2015-09-08          16,010.25                               No    Yes
Guangxi Co., Ltd. 21                                                       assurance 2016.9.7
Sinopharm Holding 2015-03-                                                 General     2015.9.23-
                                  20,000.00 2015-09-23             813.70                               No    Yes
Guangxi Co., Ltd. 21                                                       assurance 2016.9.23
Sinopharm Holding 2015-03-                                                 General     2015.8.21-
                                  10,000.00 2015-08-21                   0                              No    Yes
Guangxi Co., Ltd. 21                                                       assurance 2016.8.20
Sinopharm Holding 2015-03-                                                 General     2015.5.29-
                                  10,000.00 2015-05-29                   0                              No    Yes
Guangxi Co., Ltd. 21                                                       assurance 2016.5.29
Sinopharm Holding 2015-08-                                                 General     2015.9.25-
                                  15,000.00 2015-09-25           6,573.66                               No    Yes
Guangxi Co., Ltd. 20                                                       assurance 2016.8.6

                                                                                                                   44
                                                         国药集团一致药业股份有限公司 2015 年年度报告全文


Sinopharm Holding
                    2015-03-                                      General     2015.5.20-
Guangzhou Co.,                 35,000.00 2015-05-20    6,839.50                             No   Yes
                    21                                            assurance   2016.5.20
Ltd.
Sinopharm Holding
                    2015-03-                                      General     2015.8.21-
Guangzhou Co.,                 10,000.00 2015-08-21    4,160.03                             No   Yes
                    21                                            assurance   2016.8.20
Ltd.
Sinopharm Holding
                    2015-03-                                      General     2015.12.25-
Guangzhou Co.,                  5,000.00 2015-12-25    1,606.75                             No   Yes
                    21                                            assurance   2016.10.30
Ltd.
Sinopharm Holding
                    2015-08-                                      General     2015.12.21-
Guangzhou Co.,                 20,000.00 2015-12-21    2,168.52                             No   Yes
                    20                                            assurance   2016.12.20
Ltd.
Sinopharm Holding
                    2015-03-                                      General     2015.9.17-
Guangzhou Co.,                 40,000.00 2015-09-17   28,031.67                             No   Yes
                    21                                            assurance   2016.6.29
Ltd.
Sinopharm Holding
                    2015-03-                                      General     2015.9.20-
Guangzhou Co.,                 40,000.00 2015-09-20   17,592.06                             No   Yes
                    21                                            assurance   2016.9.19
Ltd.
Sinopharm Holding
                    2015-03-                                      General     2015.9.8-
Guangzhou Co.,                 35,000.00 2015-09-08   31,820.36                             No   Yes
                    21                                            assurance   2016.9.7
Ltd.
Sinopharm Holding
                    2015-03-                                      General     2015.6.23-
Guangzhou Co.,                 30,000.00 2015-06-23   18,262.20                             No   Yes
                    21                                            assurance   2016.4.30
Ltd.
Sinopharm Holding
                    2015-03-                                      General     2015.5.6-
Guangzhou Co.,                 35,000.00 2015-05-06   27,946.03                             No   Yes
                    21                                            assurance   2016.5.6
Ltd.
Sinopharm Holding
                    2015-03-                                      General     2015.10.23-
Guangzhou Co.,                 10,000.00 2015-10-23    2,682.52                             No   Yes
                    21                                            assurance   2016.7.31
Ltd.
Sinopharm Holding
                    2015-04-   121,600.0                          General     2015.5.15-
Guangzhou Co.,                           2015-05-15   27,276.01                             No   Yes
                    24                 0                          assurance   2016.5.14
Ltd.
Sinopharm Holding
                    2015-03-                                      General     2015.5.20-
Guangdong                       3,500.00 2015-05-20    3,133.13                             No   Yes
                    21                                            assurance   2016.5.20
Yuexing Co., Ltd.
Sinopharm Holding
                    2015-03-                                      General     2015.5.15-
Guangdong                       3,000.00 2015-05-15           0                             No   Yes
                    21                                            assurance   2016.5.14
Yuexing Co., Ltd.
Sinopharm Holding
                    2015-03-                                      General     2015.9.8-
Guangdong                       5,000.00 2015-09-08    1,758.57                             No   Yes
                    21                                            assurance   2016.9.7
Yuexing Co., Ltd.
Sinopharm Holding 2015-03-                                      General       2015.9.8-
                                9,000.00 2015-09-08    8,999.09                             No   Yes
Liuzhou Co., Ltd. 21                                            assurance     2016.9.7
Sinopharm Holding 2014-08-                                      General       2015.3.20-
                                5,000.00 2015-03-20    2,894.98                             No   Yes
Liuzhou Co., Ltd. 16                                            assurance     2016.3.19
Sinopharm Holding 2015-08-                                      General       2015.11.24-
                                6,000.00 2015-11-24    2,047.76                             No   Yes
Liuzhou Co., Ltd. 20                                            assurance     2016.11.23
Sinopharm Holding 2015-03-                                      General       2015.9.8-
                                1,000.00 2015-09-08      999.71                             No   Yes
Shaoguang Co., Ltd. 21                                          assurance     2016.9.7
Sinopharm Holding
                    2015-03-                                      General     2015.12.17-
Shenzhen Yanfeng                2,000.00 2015-12-17    1,935.38                             No   Yes
                    21                                            assurance   2016.12.16
Co., Ltd.
Sinopharm Holding
                    2015-03-                                      General     2015.9.8-
Shenzhen Yanfeng                7,000.00 2015-09-08    4,513.88                             No   Yes
                    21                                            assurance   2016.9.7
Co., Ltd.
Sinopharm Holding
                    2015-03-                                      General     2015.5.28-
Shenzhen Yanfeng                2,000.00 2015-05-28    1,700.00                             No   Yes
                    21                                            assurance   2016.2.15
Co., Ltd.


                                                                                                       45
                                                                 国药集团一致药业股份有限公司 2015 年年度报告全文


Sinopharm Holding
                      2015-03-                                            General     2015.5.15-
Shenzhen Yanfeng                  3,000.00 2015-05-15         2,245.35                              No     Yes
                      21                                                  assurance   2016.5.14
Co., Ltd.
China National
Zhijun (Shenzhen)     2015-03-                                            General     2015.9.10-
                                 20,000.00 2015-09-10         6,892.73                              No     Yes
Pharmaceutical Co.,   21                                                  assurance   2016.9.10
Ltd.
China National
Zhijun (Shenzhen)     2015-03-                                            General     2015.9.8-
                                  5,000.00 2015-09-08         4,563.26                              No     Yes
Pharmaceutical Co.,   21                                                  assurance   2016.9.7
Ltd.
China National
Zhijun (Shenzhen)     2014-08-                                            General     2015.4.10-
                                  4,000.00 2015-04-10           500.00                              No     Yes
Pharmaceutical Co.,   16                                                  assurance   2018.4.9
Ltd.
China National
Zhijun (Suzhou)       2015-03-                                            General     2015.8.21-
                                  4,000.00 2015-10-20         1,929.17                              No     Yes
Pharmaceutical Co.,   21                                                  assurance   2016.8.20
Ltd.
China National
Zhijun (Suzhou)       2014-03-                                            General     2015.1.4-
                                  3,000.00 2015-01-04           979.88                              No     Yes
Pharmaceutical Co.,   22                                                  assurance   2015.10.24
Ltd.
China National
Zhijun (Suzhou)       2015-03-                                            General     2015.9.8-
                                  3,000.00 2015-09-08                 0                             No     Yes
Pharmaceutical Co.,   21                                                  assurance   2016.9.7
Ltd.
Sinopharm Holding
                      2015-03-                                            General     2015.9.8-
Jiangmen Renren                   3,000.00 2015-09-08           986.46                              No     Yes
                      21                                                  assurance   2016.9.7
Co., Ltd.
Sinopharm Holding
                      2015-03-                                            General     2015.9.8-
Shenzhen Medicine                 1,000.00 2015-09-08           456.95                              No     Yes
                      21                                                  assurance   2016.9.7
Co., Ltd.
                                                             Total amount of actual
Total amount of approving
                                                             occurred guarantee for
guarantee for subsidiaries in                     564,100.00                                              923,626.71
                                                             subsidiaries in report
report period (B1)
                                                             period (B2)
                                                             Total balance of actual
Total amount of approved
                                                             guarantee for
guarantee for subsidiaries at the                 576,100.00                                              253,446.17
                                                             subsidiaries at the end of
end of reporting period (B3)
                                                             reporting period (B4)
                                     Guarantee of the Company for the subsidiaries
                        Related              Actual date of                                                 Guarante
    Name of the        Announce                 happening       Actual                            Impleme e for
                                  Guarantee                                 Guarantee Guarantee
      Company             ment                   (Date of     guarantee                              nted    related
                                    limit                                      type      term
     guaranteed        disclosure                 signing        limit                             (Y/N)       party
                          date                 agreement)                                                     (Y/N)
                  Total amount of guarantee of the Company( total of three abovementioned guarantee)
                                                               Total amount of actual
   Total amount of approving
                                                               occurred guarantee in
   guarantee in report period                     639,100.00                                            1,009,811.00
                                                                    report period
          (A1+B1+C1)
                                                                   (A2+B2+C2)
                                                              Total balance of actual
   Total amount of approved
                                                              guarantee at the end of
  guarantee at the end of report                  711,100.00                                              279,878.14
                                                                    report period
      period (A3+B3+C3)
                                                                   (A4+B4+C4)
The proportion of the total amount of actually guarantee in
                                                                                                             51.32%
the net assets of the Company (that is A4+ B4+C4)
Including:


                                                                                                                  46
                                                                   国药集团一致药业股份有限公司 2015 年年度报告全文


Amount of guarantee for shareholders, actual controller and
                                                                                                                0
its related parties(d)
The debts guarantee amount provided for the guaranteed
parties whose assets-liability ratio exceed 70% directly or                                            202,509.01
indirectly(e)
Proportion of total amount of guarantee in net assets of the
                                                                                                         7,208.46
Company exceed 50%(f)
Total amount of the aforesaid three guarantees(D+E+F)                                                  209,717.47
Explanations on possibly bearing joint and several
liquidating responsibilities for undue guarantees (if        N/A
applicable)
Explanations on external guarantee against regulated
                                                             N/A
procedures (if applicable)
Explanation on guarantee with composite way

(2)Guarantee outside against the regulation


□Applicable √Not applicable
No guarantee outside against the regulation in Period.


3. Entrust others to cash asset management

(1) Trust financing

□ Applicable √ Not applicable
The Company had no trust financing in the reporting period.
(2) Entrusted loans
□ Applicable √ Not applicable
The company had no entrusted loans in the reporting period.
4. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period


XVIII. Explanation on other significant events

√Applicable □Not applicable

The Company’s actual controllers, China National Pharmaceutical Group

Corporation and the controlling shareholder - Sinopharm Group Co. Ltd., are

planning and preparing the major event related to the Company's operations

which constitutes the major asset restructuring of the Company, followed by the

company's application, the company’s stock (securities for short: Sinopharm



                                                                                                                47
                                                                   国药集团一致药业股份有限公司 2015 年年度报告全文



Accord, Accord B, stock codes: 000028, 200028) has been suspended on October

21, 2015 after opening. Up to now……

In the reporing period, according to the unified arrangements of actual control

Sinopharm Accord, the Company issued “Notice of Major asset restructuring

suspension” on 28 October 2015, and issued”Related transactions perplan and sales

of assets, issue of shares, payment of cash to purchase assets and rasing matching

funds of China National Accord Medicines Corporation Ltd.” on 10 March 2016, as

of the date of the report issued, the major asset restructuring matters are steadily

advancing.

XIX. Significant event of subsidiary of the Company

□ Applicable √ Not applicable


XX. Social responsibility

√Applicable □ Not applicable
“Social Responsibility Report of Sinopharm Accord in 2015” can be seen in Juchao website dated
26 March 2016(HTTP://WWW.CNINFO.COM.CN).
The listed company and subsidiaries is in the range of heavy pollution industry that regulated by State environment
protection departments
□Yes √ No □Not applicable
Whether the social responsibility report released
√ Yes □ No
                                                     CSR report
                                                          Whether                    Disclosure standards
                       Whether            Whether
                                                       contained the
  Nature of the     contained the      contained the
                                                         corporate
   corporate        environment            social                        Domestic standards       Foreign standards
                                                        governance
                     information        information
                                                        information
State-owned
                  Yes               Yes             Yes           Yes
enterprise
Note
1. Whether the company has the Environment
                                                        Yes
Management System Certification (ISO14001)
2. Amount the company annually invested and paid for
                                                                                                        1,430
environmental protection (Yuan)
3. The company’s emission reduction performance of     Zhijun Guanlan: technical innovation has generated
waste gas, waste water, and waste residue               economic benefits of 1.5 million yuan. Zhijun Suzhou

                                                                                                                      48
                                                                    国药集团一致药业股份有限公司 2015 年年度报告全文


                                                            has generated economic benefits of 1.36 million yuan.
                                                            Zhijun Pingshan: signed an agreement with Shenzhen
                                                            Hazardous Waste Treatment Station Co., Ltd. to
                                                            handle the spent liquor inspection, sewage and sludge
                                                            treatment.
4. Investment the company made for enhancing the
employees’ individual knowledge and skills so as to                                                        307.06
improve employees’ career development ability (Yuan)
5. Amount of the company’s social charitable donations
(funds, goods and materials, free professional services)                                                      5.64
(Yuan)

XXI. 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




                                                                                                                 49
                                                                     国药集团一致药业股份有限公司 2015 年年度报告全文



   Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
                                                                                                         In Share
                             Before the Change      Increase/Decrease in the Change (+, -)    After the Change
                                                                  Capitaliz
                                                 New
                                      Proportio           Bonus ation of                                Proporti
                             Amount             shares                        Others Subtotal Amount
                                          n               shares    public                                 on
                                                issued
                                                                   reserve
                             74,484,5                                                         74,484,5
I. Restricted shares                    20.54%                                                           20.54%
                                  31                                                                31
2. State-owned legal         74,482,5                                                         74,482,5
                                        20.54%                                                           20.54%
person’s shares                  43                                                                43
3. Other domestic
                                  1,988   0.00%                                                          1,988     0.00%
shareholding
Including: Domestic
                                  1,988   0.00%                                                          1,988     0.00%
nature person shares
                             288,147,                                                                 288,147,
II. Unrestricted shares                79.46%                                                                    79.46%
                                  412                                                                      412
                             233,261,                                                                 233,261,
1. RMB Ordinary shares                 64.32%                                                                    64.32%
                                  812                                                                      812
2. Domestically listed       54,885,6                                                                 54,885,6
                                       15.14%                                                                    15.14%
foreign shares                     00                                                                       00
                             362,631,                                                                 362,631,
III. Total shares                     100.00%                                                                    100.00%
                                  943                                                                      943
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changes
□ 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 or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable


2. Changes of restricted shares

□ Applicable √ Not applicable


II. Securities issuance and listing

1. Security offering (without preferred stock) in Reporting Period

□ Applicable √ Not applicable




                                                                                                                        50
                                                                  国药集团一致药业股份有限公司 2015 年年度报告全文


2. Changes of total shares and shareholders structure as well as explanation on changes of assets and
liability structure

□ Applicable √ Not applicable


3. Existing internal staff shares

□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
                                                                                                              In Share
                                                                                            Total
                                                                                            preference
                                                                                            shareholders
                                                            Total preference
                              Total common                                                  with voting
Total                                                       shareholders
                              stock                                                         rights
common                                                      with voting
                              shareholders at                                               recovered at
stock                                                       rights recovered
                      14,861 end of last             14,861                               0 end of last             0
shareholders                                                at end of
                              month before                                                  month before
in reporting                                                reporting period
                              annual report                                                 annual report
period-end                                                  (if applicable)
                              disclosed                                                     disclosed (if
                                                            (found in note8)
                                                                                            applicable)
                                                                                            (found in
                                                                                            note8)
                    Particulars about shares held above 5% by shareholders or top ten shareholders
                                                 Total                                 Number of share pledged/frozen
                                                                   Amount Amount
                                     Proporti sharehol
                                                        Changes       of      of un-
  Full name of        Nature of        on of    ders at
                                                        in report restricte restricted
  Shareholders       shareholder      shares the end                                    State of share    Amount
                                                         period d shares shares
                                       held of report
                                                                     held      held
                                                period
Sinopharm
                   State-owned                184,942,           74,482,5 110,459,
Holding Co.,                         51.00%
                   Corporation                    291                 43      748
Ltd.
National Council
                   Domestic non
for Social                                    8,300,00
                   state-owned        2.29%
Security Fund-                                       0
                   Corporation
116
                  Domestic non
China Securities                              7,704,97
                  state-owned         2.12%
Finance Co., Ltd.                                    2
                  Corporation
National Council
                  Domestic non
for Social                                    7,298,55
                  state-owned         2.01%
Security Fund-                                       5
                  Corporation
106
HTHK/CMG
FSGUFP-CMG
                  Foreign                     7,032,72
FIRST STATE                           1.94%
                  Corporation                        0
CHINA
GROWTH FD
VALUE
PARTNERS          Foreign                     5,737,08
                                      1.58%
CLASSIC           Corporation                        8
FUND
CITIC Securities Domestic non                 5,009,03
                                      1.38%
Co., Ltd.         state-owned                        7

                                                                                                                    51
                                                                     国药集团一致药业股份有限公司 2015 年年度报告全文


                       Corporation
New China Life
Insurance Co.,
                       Domestic non
Ltd. – Bonus –                               4,199,77
                       state-owned     1.16%
Individual                                            2
                       Corporation
bonuses - -018L-
FH002 Shen
Central Huijin         State-owned             3,804,40
                                       1.05%
Investment Ltd.        Corporation                    0
China Life
Insurance Co.,
                       Domestic non
Ltd. – tradition –                           3,750,09
                       state-owned     1.03%
general insurance                                     0
                       Corporation
products -005L-
CT001 Shen
                                      It is unknown that there exists no associated relationship or belongs to the
Explanation on associated
                                      consistent actionist among the other tradable shareholders regulated by the
relationship among the aforesaid
                                      Management Measure of Information Disclosure on Change of Shareholding for
shareholders
                                      Listed Companies.
                             Particular about top ten shareholders with un-restrict shares held
                                                                                                   Type of shares
         Shareholders’ name           Amount of un-restrict shares held at Period-end
                                                                                               Type            Amount
                                                                                          RMB common
Sinopharm Holding Co., Ltd.                                                 110,459,748                       110,459,748
                                                                                          shares
National Council for Social                                                               RMB common
                                                                              8,300,000                          8,300,000
Security Fund-116                                                                         shares
                                                                                          RMB common
China Securities Finance Co., Ltd.                                            7,704,972                          7,704,972
                                                                                          shares
National Council for Social                                                               RMB common
                                                                              7,298,555                          7,298,555
Security Fund-106                                                                         shares
HTHK/CMG FSGUFP-CMG                                                                       Domestically
FIRST STATE CHINA                                                             7,032,720 listed foreign           7,032,720
GROWTH FD                                                                                 shares
                                                                                          Domestically
VALUE PARTNERS CLASSIC
                                                                              5,737,088 listed foreign           5,737,088
FUND
                                                                                          shares
                                                                                          RMB common
CITIC Securities Co., Ltd.                                                    5,009,037                          5,009,037
                                                                                          shares
New China Life Insurance Co.,
                                                                                          RMB common
Ltd. – Bonus – Individual bonuses                                           4,199,772                          4,199,772
                                                                                          shares
- -018L-FH002 Shen
                                                                                          RMB common
Central Huijin Investment Ltd.                                                3,804,400                          3,804,400
                                                                                          shares
China Life Insurance Co., Ltd. –
                                                                                          RMB common
tradition –general insurance                                                 3,750,090                          3,750,090
                                                                                          shares
products -005L-CT001 Shen
Expiation on associated
relationship or consistent actors     It is unknown that there exists no associated relationship or belongs to the
within the top 10 un-restrict         consistent actionist among the other tradable shareholders regulated by the
shareholders and between top 10 Management Measure of Information Disclosure on Change of Shareholding for
un-restrict shareholders and top 10 Listed Companies.
shareholders
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the
Company have no buy-back agreement dealing in reporting period.


                                                                                                                        52
                                                                   国药集团一致药业股份有限公司 2015 年年度报告全文


2. Controlling shareholder of the Company

Nature of controlling shareholders: central state-owned holding
Type of controlling shareholders: legal person
                                    Legal
 Controlling shareholders person/person in        Date of foundation   Organization code   Main operation business
                             charge of the unit
                                                                                          Industrial investment
                                                                                          holding; management
                                                                                          and assets reorganization
                                                                                          entrusted by
                                                                                          pharmaceutical
                                                                                          enterprise; Chinese
                                                                                          medicine, Chinese
                                                                                          medicine tablets,
                                                                                          chemical medicine
                                                                                          preparations, chemical
                                                                                          raw materials,
                                                                                          antibiotics, biochemical
                                                                                          drugs, biological
                                                                                          products, narcotic drugs,
                                                                                          psychotropic substances,
                                                                                          toxic drugs for medical
                                                                                          use (compatible with the
                                                                                          business scope),
                                                                                          medicine IVD Reagents,
                                                                                          vaccine, anabolic agents,
                                                                                          Peptide hormone and
                                                                                          medical equipment. III:
                                                                                          injection puncture
                                                                                          instruments, hygienic
                                                                                          materials & dressings,
Sinopharm Holding Co.,
                            Wei Yulin        2003-01-08            74618434-4             medical polymer
Ltd.
                                                                                          materials and products,
                                                                                          categories II: medical X-
                                                                                          ray ancillary equipment
                                                                                          and components; food
                                                                                          marketing management
                                                                                          (non-physical way), and
                                                                                          domestic trade (other
                                                                                          than special licensing),
                                                                                          logistics and other
                                                                                          consulting services,
                                                                                          cosmetics, stationeries
                                                                                          and related consulting
                                                                                          services, 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. [In right of
                                                                                          exequatur to run if refers
                                                                                          to permission operation]
Equity of other             Sinopharm Group Co., Ltd. hold 44.01 percent equity of China National Medicines

                                                                                                                   53
                                                                            国药集团一致药业股份有限公司 2015 年年度报告全文


domestic/oversea listed       Corporation Ltd (Stock code: 600511) up to the end of Period
company control by
controlling shareholder as
well as stock-joint in report
period
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
The Company had no changes of controlling shareholders in reporting period



3. Actual controller of the Company

Nature of actual controller: central state-owned assets management
Type of actual controller: legal person
                                     Legal
     Actual controlling          person/person                 Date of
                                                                             Organization code         Main operation business
        shareholders            in charge of the             foundation
                                      unit
                                                                                                   Entrusted management and
                                                                                                   assets reorganization of
                                                                                                   pharmaceutical enterprises,
                                                                                                   consultant service of
                                                                                                   medicine industry investment
                                                                                                   project, holding exhibition
                                                                                                   and fair of surgical
China National
                                                                                                   appliance, the wholesale of
Pharmaceutical Group             She Lulin                1987-03-26       10000588-8
                                                                                                   Chinese medicine, Chinese
Corporation
                                                                                                   patent medicines, Chinese
                                                                                                   medicine herb in pieces,
                                                                                                   chemical material medicine,
                                                                                                   a chemical agent, antibiotics,
                                                                                                   biochemical,
                                                                                                   biological(operation period
                                                                                                   runs in right of exequatur).
                                               Name                       Name of listed company    Total shareholders     Ratio
                                                                             with shares held      (10 thousand shares)

                               China National Pharmaceutical Group
                                                                                                         132.35            0.86%
                                                                              Jianmin Group
                                            Corporation


                               China National Pharmaceutical Group
                                                                                                         272.84            0.10%
                                                                            Sinopharm Holding
                                        Corporation
Equity of domestic/oversea
listed company control by
actual controller in report Sinopharm Holding Industrial Investment
                                                                                                       157,155.60          56.79%
period                                                                      Sinopharm Holding
                                              Co., Ltd.

                                                                                                        21,070.15          44.01%
                                        Sinopharm Holding                        Sinopharm

                                                                                                        18,494.23           51%
                                        Sinopharm Holding                   Sinopharm Accord

                                                                                                         321.93            2.12%
                                             Sinopharm                    JLPC
                            Shanghai Institute of Pharmaceutical          Modern Pharmaceutical
                                                                                                        11,975.63          41.62%
                            Industry



                                                                                                                                  54
                                                                            国药集团一致药业股份有限公司 2015 年年度报告全文


                          Chinese Medicine Industry Co., Ltd.             Hengrui Medicine               9,454.90              4.83%

                              Chinese Medicine Industry Co., Ltd.            Tianrun Holding
                                                                                                          306.50               2.59%


                                         Sinopharm TCM                        Jianmin Group
                                                                                                             0                   0

                                         Sinopharm TCM                            UGC
                                                                                                          686.24               3.07%


                                                                                                         27,472.50             53.30%
                                             Biosino                        Tiantan Biological


                                  Sinopharm Group H.K. Co., Ltd.               China TCM
                                                                                                        161,431.36             36.01%

Changes of actual controller in reporting period
□ Applicable √ Not applicable
No changes of actual controllers for the Company in reporting period.
Property right and controlling relationship between the actual controller and the Company is as follow:




              The State-owned Assets Supervision & Administration Commission of the State Council



                                                   100%

                                                                                                   National Council for Social
                                                       China National Pharmaceutical                   Security Fund &public
      Shanghai Fosun Pharmaceutical
                                                             Group Corporation                              shareholder
             (Group) Co., Ltd.




                                        49%                     51%                                       43.11%

                                             Sinopharm Industry
                                             Investment Co., Ltd.                              0.10%


                                         56.79%



                                                                   Sinopharm Holding Co., Ltd.


                                                       51%


                                           China National Accord Medicines Corporation Ltd.



                                                                                                                                     55
                                                                 国药集团一致药业股份有限公司 2015 年年度报告全文


Actual controller controlling the Company by entrust or other assets management

□ Applicable √ Not applicable
4. Particulars about other legal person shareholders with over 10% shares held
□ Applicable √ Not applicable


5. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,
restructuring side and other commitment subjects

□ Applicable √ Not applicable




                                                                                                              56
                                                    国药集团一致药业股份有限公司 2015 年年度报告全文




                                  Section VII. Preferred Stock

□ Applicable √ Not applicable
The Company had no preferred stock in the Period.




                                                                                                 57
                                                                           国药集团一致药业股份有限公司 2015 年年度报告全文



        Section VIII. Particulars about Directors, Supervisors, Senior
                                        Executives and Employees

I. Changes of shares held by directors, supervisors and senior executives

                                                                                  Amount            Amount
                                                                          Shares                                      Shares
                                                        Start                     of shares         of shares
                                                                End date held at                               Other held at
                     Working                           dated of                   increase          decrease
             Title                Sex       Age                 of office period-                             changes period-
  Name                status                            office                    d in this         d in this
                                                                  term     begin                              (share)   end
                                                         term                       period            period
                                                                          (Share)                                     (Share)
                                                                                   (Share)           (Share)
Chen    Secretar Currentl
                                                       2015-01-
Changbi y of the y in     M                       48                             2,651          0          0             2,651
                                                       13
ng      Board    office
Total       --       --     --               --           --          --         2,651          0          0             2,651


II. Changes of directors, supervisors and senior executives

     Name              Title            Type                   Date                              Reasons
                                                                           He resigned the position from the board of directors
                                                                           and special committee; in accordance with the work
                                  Appointment                              arrangements by the board of directors, Mr. Yan
Yan Zhigang      Director, GM                          2016-03-09
                                  and dismissal                            Zhigang no longer served as GM of the Company,
                                                                           and appointed Mr. Yan Zhigang as Deputy GM of
                                                                           the Company.
                                                                           In accordance with the work arrangements, the
                                  Appointment
Lin Zhaoxiong Vice GM                                                      board of directors appointed Mr. Lin Zhaoxiong as
                                  and dismissal
                                                                           GM of the Company (legal representative) .


III. Post-holding

Professional background, major working experience and present main responsibilities in Company of directors,
supervisors and senior executive at the present in latest five years

1. Members of the Board
Chairman – Mr. Li Zhiming, college graduation, a senior economist, and he served as the follow
post in latest 5 years: chairman, GM and party secretary of Sinopharm Group Xinjiang
Pharmaceutical Co., Ltd. from February 2009 to May 2013; deputy president of Sinopharm Group
Co., Ltd. from May 2020 to November 2013; he hold a concurrent post of General Counsel of
Sinopharm Group Co., Ltd. from October 2012 to January 2014; a deputy party secretary, discipline
inspection commission secretary and labor union chairman of Sinopharm Group Co., Ltd. from
November 2012 to November 2013; president of Sinopharm Group Co., Ltd. since November 2013;
meanwhile, served as Chairman of China National Medicines Corporation Ltd from August 2010 to
October 2011; chairman of Sinopharm Holding Tianjin Co., Ltd. from August 2010 to December
2013; chairman of Sinopharm Holding Heilongjiang Co., Ltd. from November 2010 to April 2013;


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chairman of Sinopharm Holding Shenyang Co., Ltd. from October 2011 to April 2013; chairman of
Sinopharm Holding Jilin Co., Ltd. from October 2011 to April 2013; chairman of Sinopharm
Holding Inner Mongolia Co., Ltd. from March 2011 to December 2013; serves as chairman of
Sinopharm Holding Ningxia Co., Ltd. since June 2011; chairman of Sinopharm Holding Shaanxi
Co., Ltd. since October 2011; chairman of Sinopharm Holding Gansu Co., Ltd. since October 2011;
he had a concurrent post of chairman of Sinopharm Holding Shanxi Co., Ltd. from October 2011 to
December 2013; serves as chairman of Sinopharm Holding Qinghai Co., Ltd. since October 2011;
he took post of chairman of Sinopharm Holding Mudan River Co., Ltd. from October 2011 to April
2013; serves as chairman of Sinopharm Group Shanxi Co., Ltd. since March 2012; chairman and
party secretary of Sinopharm Group Xinjiang Pharmaceutical Co., Ltd. since May 2013; president
of Sinopharm Group Co., Ltd. since November 2013; Director of Sinopharm Group Hong Kong Co.,
Ltd. since January 2014 and chairman of China National Medicines Corporation Ltd since February
2014; he serves as executive director of Sinopharm Holding Sub Marketing Center Co., Ltd. since
January 2014 and serves as chairman of 6th and 7th session of the Board for the Company since
February 2014.


Deputy Chairman--- Ms. Cui Dieling, MBA, an engineer. She served as the follow post in latest 5
years: GM of Business Division of Shanghai Parma Group Antibiotic, GM of Shanghai Asia
Pioneer pharmacy Co., Ltd. and Chairman of Shanghai Xinya Pharmacy Co., Ltd. from December
2008 to December 2010; Chairman of HSDRUG from December 2010 to March 2011; Chief of
Industrial Development and Management Center of Sinopharm Group Co., Ltd. from March 2011
to December 2013; assistant president of Sinopharm Group Co., Ltd. since December 2012;
Chairman of Sinopharm A-THINK Pharmaceutical Co., Ltd. since October 2011; Chairman of
Xingsha Pharmaceuticals (Xiamen) Co., Ltd. since December 2011; she served as Chairman of 6th
Session of Supervisory Committee for the Company from October 2011 to August 2012; Director
of 6th session of the Board since August 2012, Chairman of Sinopharm Group Sanyi Pharmaceutical
(Wuhu) Co., Ltd. since July 2012; had current post of chairman of Sinopharm Group Chemical
Reagent Co., Ltd. since December 2013 and deputy chairman of 6th and 7th session of the Board for
the Company since February 2014.


Chairman—Mr. WeiYulin, MBA, a senior economist, Licensed Pharmacist, pharmacist-in-charge
and CCOM; he served as the follow post in latest 5 years: he serves as President and Party Secretary
of Sinopharm Group Co., Ltd. since December 2009; Chairman of Beijing Tianxing Puxin
Biological Medical Co., Ltd from April 2010 to November 2011; Chairman of Yujia Medical

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Consultancy Co., Ltd. from September 2010 to November 2011; serves as Chairman of Sinopharm
Holding H.K. Co., Ltd since January 2011; Chairman of Sinopharm Le-Ren-Tang Medicine Co.,
Ltd. from April 2011 to June 2013 and deputy chairman of Sinopharm Le-Ren-Tang Medicine Co.,
Ltd. since June 2013; Chairman of Sinopharm Group Chemical Reagent Co., Ltd. from December
2011 to December 2013 and Chairman of the 6th Session of the Board of the Company from
October 2011 to February 2014; He Serves as Director of Sinopharm Holding Guoda Pharmacy Co.,
Ltd since August 2012; Chairman and Party Secretary of Sinopharm Group Co., Ltd. since
November 2013 and Director of 6th and 7th session of the Board for the Company since February
2014.


Director——Mr. Ma Wanjun, EMBA. He served as the follow post in latest 5 years: deputy GM of
Operation Center of Sinopharm Group Co., Ltd. from December 2009 to September 2010; Director
of Sinopharm Holding Shenyang Co., Ltd from January 2010 to November 2011; he serves as
Chairman of Guangdong Dong Fang Uptodate & Special Medicines Co., Ltd. since March 2010;
Director of Sinopharm Holding Suzhou Co., Ltd from May 2010 to November 2011; Chairman of
Sinopharm Holding Jiangsu Co., Ltd from May 2010 to November 2011; Director of Wenzhou
Biomedicine-Appliances Supplies Co., Ltd. from July 2010 to November 2011; deputy President of
Sinopharm Group Co., Ltd. since September 2010; Chairman of Sinopharm Holding Henan Co.,
Ltd from October 2010 to January 2013; Director of Sinopharm Holding Changzhou Co., Ltd from
December 2010 to November 2011; Director of Shanghai Bionuo Enterprise Management Co., Ltd.
from December 2010 to November 2011; general counsel of Sinopharm Group Co., Ltd. from May
2011 to October 2012; he serves as Director of Sinopharm Le-Ren-Tang Medicine Co., Ltd. since
April 2011; Director of Sinopharm Group Shaanxi Co., Ltd. from April 2011 to September 2011;
Director of China National Medicines Corporation Ltd since October 2011; Director of Yujia
Medicine Service Co., Ltd. since November 2011; Chairman of Sinopharm Health Industry
(Shanghai) Co., Ltd. since November 2011; Director of 6th and 7th Session of the Board for the
Company since March 2011; Chairman of Sinopharm Holding Health Development (Shanghai ) Co.,
ltd since May 2012; Chairman of Sinopharm Holding Fujian Co., Ltd and Sinopharm Holding
Fuzhou Co., Ltd since August 2012; he serves as executive Director of Sinopharm Holding Henan
Co., Ltd. since January 2013 and executive Director of Shanghai Tongyu Information Technology
Co., Ltd. since April 2013.


Director – Mr. Jiang Xiuchang, a university background, senior economists and senior accountant.
He served as the follow post in latest 5 years: CFO of Sinopharm Group Co., Ltd. since May 2010;

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he acts as deputy President of Sinopharm Group Co., Ltd. since July 2013 and hold concurrent post
of Supervisor of Sinopharm Holding Guoda Pharmacy Co., Ltd since June 2010; Supervisor of
Yujia Medicine Co., Ltd. since September 2010; Director of China National Medicines Corporation
Ltd since February 2011; Director of Sinopharm Le-Ren-Tang Medicine Co., Ltd since April 2011;
Director of Sinopharm Holding H.K. Co., Ltd since November 2011; Director of Sinopharm Group
Financial Co., Ltd since November 2011; Director of Sinopharm Group Shaanxi Co., Ltd. from
April 2011 to September 2011; Supervisor of Sinopharm Sub Marketing Center Co., Ltd. since
April 2011; Supervisor of Sinopharm Holding Beijing Co., Ltd. and Director of Sinopharm Group
Financial Co., Ltd since November 2011; he serves as Director of 6th and 7th session of the Board
for the Company since March 2011, Chairman of Sinopharm Holding Jiangxi Co., Ltd. since June
2013; Chairman of Sinopharm Holding Shanxi Co., Ltd., deputy Chairman of Sinopharm Group
Shanxi Co., Ltd., Chairman of Sinopharm Holding Tianjin Co., Ltd. and Chairman of Sinopharm
Holding Inner Mongolia Co., Ltd. since December 2013.


Director—Mr.Yan Zhigang, MBA, senior engineers and Licensed Pharmacist. He served as the
follow post in latest 5 years: Deputy GM of the Company from January 2005 to December 2008;
GM of the Company since December 2008; Director of the 5th, 6th and 7th session of the Board since
February 2009; he acts Director of Sinopharm A-THINK Pharmaceutical Co., Ltd. since June 2010;
and took executive director of Sinopharm Holding Guangzhou Co., Ltd. since February 2014.


Mr.Yan Zhigang, MBA, senior engineers and Licensed Pharmacist. He served as the follow post in
latest 5 years: Deputy GM of the Company from January 2005 to December 2008; GM of the
Company since December 2008; Director of the 5th, 6th and 7th session of the Board since February
2009; he acts Director of Sinopharm A-THINK Pharmaceutical Co., Ltd. since June 2010; took
executive director of Sinopharm Holding Guangzhou Co., Ltd. since February 2014, and took vice
GM of the Company since 9 March 2016.


Independent Director --- Mr. He Zhiyi, Doctor Degree of Fudan University, Post doctorate of
Beijing University, Professor and PH.D adviser. Currently, he works as the vice Dean of New
Huadu Business School. He acted as vice Dean of Antai College of Economics& Business
Administration of SJTU; the professor, PH.D adviser and Dean Assistant of Guanghua
Administration College of Beijing University and Office Director of Administration Case Research
of Beijing University; He use to took advance study and visiting scholar in Sweden IMD, GM


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school of Management and Kellogg school of Management, Northwestern University of USA. He
also worked as the deputy dean of Development& Research of Poverty-zone of Beijing University,
executive director of Chinese Enterprise Research Center of Beijing University, executive editor of
Business Comments of Beijing University magazine, vice-chairman and secretary of the Chinese
Federation for Corporate Social Responsibility, vice-chairman and secretary of CNEMA and
Director of IFSAM etc. Mr. He Zhiyi owes rich experience, and also served as position in
government, GM in State-owned enterprises, Chairman of joint-stock enterprises, President of
Beijing University Xiaochang Business Co., Ltd and Director of Office of Industrial Management,
funded by school. He serves as Independent Director of the Board for the Company since June 2010.


Independent Director --- Mr.Xiong Chuxiong, a doctor degree, professor and a CPA. He graduated
from Accounting Dept. of Southwestern University of Finance & Economics and Accounting Dept.
of Xiamen University successively. After obtained the PhD. Economics in Xiamen University in
1992, he was assigned to teach in accounting majors of Shenzhen University. He used to be a
visiting scholar in University of Manchester, U.K. currently; he works as professor in Shenzhen
University. He serves as Independent Director of the 6th and 7th Session of the Board for the
Company since April 2011.


Independent Director - Mr. Xiao Shengfang, civil and commercial law graduate in Renmin
University of China, MBA of Jinan University, and lawyer. He acts as director of Sino-Win
Law Firm, whose social functions include vice director of Labor and Social Security Law
Committee of All China Lawyers Association, vice president of Guangdong Lawyers
Association, vice president of Social Law Institute of Guangdong Province Law Society, vice
president of Labor Relations Research Institute of Guangdong Province Law Society, vice
president of Guangzhou Lawyer Organization, legal consultant of the People`s Government of
Guangzhou Municipality, counselor of CPPCC Guangzhou Committee, legal consultant of the
People`s Government of Guangzhou Baiyun District, adjunct professor at Lawyer College of
Renmin University of China, adjunct professor at School of Law of South China Normal
University, executive vice president of MBA sodality in Ji'nan University, arbitrator at South
China International Economic and Trade Arbitration Commission, arbitrator at Guangzhou
Arbitration Commission, and mediation expert at South China International Economic and
Trade Arbitration Commission. He has acted as the independent director for the Company’s
sixth and seventh board of director since April 2011.

2. Members of supervisors:
Chairman of Supervisory Committee--- Mr. Feng Yifeng, University background, a CPA and
ACCA. He served as a senior manager of PWC Zhongtian CPA from July 2002 to June 2010; and


                                                                                                    62
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he serves as director of financial manage dept. of Sinopharm Holding Co., Ltd. since June 2010,
and during the period, serves as Director of Sinopharm Holding Fujian Co., Ltd., subordinate of
Sinopharm Holding, Sinopharm A-THINK Pharmaceutical Co., Ltd. and Sinopharm Holding
Hainan Co., Ltd.; serves as supervisor of Sinopharm Group Chemical Reagent Co., Ltd. ,
Sinopharm Holding Henan Co., Ltd., Sinopharm Holding Changzhou Co., Ltd., Sinopharm Holding
Wuxi Co., Ltd., Sinopharm Holding Gansu Co., Ltd. and Sinopharm Group Sanyi Pharmaceutical
(Wuhu) Co., Ltd. He serves as chairman of the 6th and 7th session of supervisory committee of the
Company since August 2012.


Supervisor——Ms. Guan Xiaohui, Master of Accounting, Certified Public Accountant and
Economist. She serves as vice CFO of Shanghai Fosun Pharmaceutical (Group) Co., Ltd. since
November 2004; she now serves as vice president and chief accountant of Shanghai Fosun
Pharmaceutical (Group) Co., Ltd. and serves as supervisor of 5th, 6th and 7th Session of Supervisory
Committee of the Company since September 2007.


Employee Supervisor——Mr. Wang Huaiqin, 3-years regular college graduate, political commissar,
assistant accountant. He served as the Chairman of First Union since September 2005 to March
2009; member of Party Committee, deputy secretary of discipline & inspection committee and
chairman of Union of the Company since September 2008; serves as employee supervisor of 5th, 6th
and 7th Session of Supervisory Committee of the Company since September 2007.


3. Senior executives:
General Manger——Mr. Lin Zhaoxiong, senior MBA, Pharmacist-in-charge. He worked in
Sinopharm Holding Guangzhou Co., Ltd. with successively taking the posts of deputy general
manger and manager of Pharmacy Department, and manger of Pharmaceutical Company and
majordomo of Operation Management Department from Jan. 1999 to Dec. 2003; deputy general
manager of Sinopharm Holding Guangzhou Co., Ltd from Jan. 2004 to Dec. 2006; he serves as GM
of Sinopharm Holding Guangzhou Co., Ltd. since December 2006 and deputy GM of the Company
since from December 2008 to 9 March 2016, and serves as GM of the Company since 9 March
2016.


Deputy General Manager-- Mr. Yan Zhigang, referring to the aforesaid introduction of members of
directors for details



                                                                                                     63
                                                     国药集团一致药业股份有限公司 2015 年年度报告全文


Deputy General Manger——Mr. Lin Min, senior MBA, Pharmaceutical Engineer, Licensed
Pharmacist, worked in China National Pharmaceutical Group Guangzhou Corporation with
successively taking the posts of assistant to manager, deputy general manger of Pharmacy
Department and deputy general manger of purchasing in Pharmaceutical Company from Jan. 2001
to Nov. 2003; supervisor of Guangzhou pharmacy sales of Sinopharm Holding Guangzhou Co., Ltd
from Nov. 2003 to Jan. 2005; general manager of Sinopharm Holding Liuzhou Co., Ltd from March
2006 to Nov. 2007; took deputy general manager of Sinopharm Holding Guangzhou Co., Ltd from
Jan. 2005 to Dec. 2008; serves as deputy GM of the Company since December 2008.


Deputy General Manger——Mr. Lin Xinyang, MBA, Licensed Pharmacist, he took the turns of
deputy GM of Nanfang Pharm. Co., deputy GM of China Medicine Group (Guangzhou) Company
Yuexing Company, general supervisor of PD of Sinopharm Holding Guangzhou Company
successively since January 1996; took the post of deputy GM of Sinopharm Holding Guangzhou
Company from Jan. to Dec. 2004; serves as deputy GM of the Company since January 2005.


Deputy General Manger——Mr. Deng Baojun, an MBA, senior engineer and Licensed Pharmacist,
he took the position of deputy general manager of Shenzhen Zhijun Pharmaceutical Co., Ltd. from
August 2003 to December 2008; took the position as General Manager of Shenzhen Zhijun
Pharmaceutical Co., Ltd. since December 2008; serves as general manager of pharmaceutical
business department of China National Accord Medicines Corporation Ltd. since December 2010
and took deputy GM of the Company.


Deputy General Manger—— Mr. Pan Rangren, a postgraduate, IFM and assistant accountant. He
serves as vice secretary of the Party general branch, deputy GM, standing deputy GM and labor
union chairman of Shenzhen Zhijun Pharmaceutical Co., Ltd. from November 2005 to April 2011;
he serves as deputy GM of pharmaceutical division under the name of China National Accord
Medicines Corporation Ltd. since December 2010; took Party secretary and standing deputy GM of
Shenzhen Zhijun Pharmaceutical Co., Ltd. from April 2011 to December 2013; he serves as GM of
China National Zhijun (Suzhou) Pharmaceutical Co., Ltd. since August 2013; serves as Party
secretary of Shenzhen Zhijun Pharmaceutical Co., Ltd. since January 2014, serves as GM of
Shenzhen Zhijun Pharmaceutical Co., Ltd. since January 2014 and deputy GM of the Company
since December 2014.




                                                                                                  64
                                                               国药集团一致药业股份有限公司 2015 年年度报告全文


Chief Financial Officer——Mr. Wei Pingxiao, MBA, an accountant, took the turns of Financial
department of State-owned Beijing Electronic Tube Plant, Modern Electronic Shenzhen Industrial
Company, China Electronic Industrial Headquarter since August 1985; and took the turns of deputy
section chief of financial department of China Electronic Information Industry Group, financial
director of AMOI, section chief of planning financial department of China Electronic Finance
Leasing Company, Deputy GM of AMOI Beijing branch, financial charger of AMOI and director of
its subsidiary since April 1993; and he hold the post of CFO of the Company since December 2004.


Secretary of the Board——Mr. Chen Changbing, Master Degree. He served as secretary of the
Board of 3rd and 4th Session of the Board for the Company since December 2000; and serves as
Chief of Planning Investment Management Dept. and Secretary of the Board of 5th, 6th and 7th
Session of the Board for the Company since September 2007.
Post-holding in shareholder’s unit
√Applicable □ Not applicable
                                                                                                      Received
                                                     Position in                                    remuneration
                                                                  Start dated of    End date of
Name                  Name of shareholder’s unit   shareholder’                                       from
                                                                   office term      office term
                                                      s unit n                                      shareholder’s
                                                                                                      unit (Y/N)
                                                    President
                                                    Executive
Wei Yulin       Sinopharm Group Co., Ltd.           director     2013-11-01        2016-11-01             Y
                                                    CPC
                                                    secretary
Li Zhiming      Sinopharm Group Co., Ltd.           President    2013-11-01        2016-11-01             Y
                                                    Deputy
                                                    president
                                                    General
Ma Wanjun       Sinopharm Group Co., Ltd.                        2011-05-01                               Y
                                                    counsel
                                                    Secretary of
                                                    the Board
Jiang
                Sinopharm Group Co., Ltd.           CFO          2010-06-01                               Y
Xiuchang
                                                    Assistant
                                                    president
                                                    director of
                                                    Industry
Cui Dieling     Sinopharm Group Co., Ltd.                       2011-03-01                                Y
                                                    developmen
                                                    t&
                                                    managemen
                                                    t center
                                                    Financial
Feng Yifeng     Sinopharm Group Co., Ltd.           managemen 2010-06-01                                  Y
                                                    t dept.
Post-holding in other unit
√Applicable □ Not applicable
                                                                                                       Received
                                                     Position in Start dated of       End date of
    Name                     Name of other units                                                     remuneration
                                                     other unit n office term         office term
                                                                                                    from other unit

                                                                                                                     65
                                                                  国药集团一致药业股份有限公司 2015 年年度报告全文


                                                                                                      (Y/N)
Wei Yulin     Sinopharm Holding H.K. Co., Ltd        Chairman       2011-01-01                          N
              Sinopharm Group Chemical Reagent
Wei Yulin                                            Chairman       2011-12-01                          N
              Co., Ltd.
              Sinopharm Le-Ren-Tang Medicine Co.,
Wei Yulin                                            Chairman       2011-04-01                          N
              Ltd.
              Sinopharm Holding Guoda Pharmacy
Wei Yulin                                            Director       2012-08-01                          N
              Co., Ltd
              Sinopharm Group Xinjiang
Li Zhiming                                           Chairman       2013-05-01                          N
              Pharmaceutical Co., Ltd.
Li Zhiming    Sinopharm Holding Ningxia Co., Ltd     Chairman       2011-06-01                          N
Li Zhiming    Sinopharm Holding Shaanxi Co., Ltd.    Chairman       2011-10-01                          N
Li Zhiming    Sinopharm Holding Gansu Co., Ltd.      Chairman       2011-10-01                          N
Li Zhiming    Sinopharm Holding Qinghai Co., Ltd.    Chairman       2011-10-01                          N
              China National Medicines Corporation
Li Zhiming                                           Chairman       2011-10-01                          N
              Ltd
Li Zhiming    Sinopharm Holding H.K. Co., Ltd        Director       2014-01-01                          N
              Sinopharm Holding Sub Marketing        Executive
Li Zhiming                                                          2014-01-01                          N
              Center Co., Ltd.                       Director
              Guangdong Dong Fang Uptodate &
Ma Wanjun                                            Chairman       2010-03-01                          N
              Special Medicines Co., Ltd.
Ma Wanjun     Sinopharm Holding Henan Co., Ltd       Chairman       2010-10-01                          N
                                                     Executive
Ma Wanjun     Sinopharm Holding Henan Co., Ltd                      2013-01-01                          N
                                                     Director
              Sinopharm Holding Changzhou Co.,
Ma Wanjun                                            Director       2010-12-01                          N
              Ltd
              Shanghai Bionuo Enterprise
Ma Wanjun                                            Director       2010-12-01                          N
              Management Co., Ltd.
              Sinopharm Le-Ren-Tang Medicine Co.,
Ma Wanjun                                            Director       2011-04-01                          N
              Ltd.
Ma Wanjun     Sinopharm Group Shanxi Co., Ltd.       Director       2011-04-01                          N
              China National Medicines Corporation
Ma Wanjun                                            Director       2011-10-01                          N
              Ltd
Ma Wanjun     Yujia Medicine Service Co., Ltd.       Director       2011-11-01                          N
              Sinopharm Health Industry (Shanghai)
Ma Wanjun                                            Chairman       2011-11-01                          N
              Co., Ltd.
              Sinopharm Holding Health
Ma Wanjun                                            Chairman       2012-05-01                          N
              Development (Shanghai) Co., ltd.
Ma Wanjun     Sinopharm Holding Fujian Co., Ltd      Chairman       2012-08-01                          N
Ma Wanjun     Sinopharm Holding Fuzhou Co., Ltd      Chairman       2012-08-01                          N
Jiang         Sinopharm Holding Guoda Pharmacy
                                                     Supervisor     2010-06-01                          N
Xiuchang      Co., Ltd
Jiang
              Yujia Medicine Service Co., Ltd.       Supervisor     2010-09-01                          N
Xiuchang
Jiang         China National Medicines Corporation
                                                   Director         2011-02-01                          N
Xiuchang      Ltd
Jiang         Sinopharm Le-Ren-Tang Medicine Co.,
                                                   Director         2011-04-01                          N
Xiuchang      Ltd.
Jiang
              Sinopharm Holding H.K. Co., Ltd        Director       2011-11-01                          N
Xiuchang
Jiang
              Sinopharm Group Financial Co., Ltd     Director       2011-11-01                          N
Xiuchang
Jiang
              Sinopharm Group Shanxi Co., Ltd.       Director       2011-04-01                          N
Xiuchang
Jiang         Sinopharm Holding Sub Marketing
                                                     Supervisor     2011-04-01                          N
Xiuchang      Center Co., Ltd.
Jiang
              Sinopharm Holding Beijing Co., Ltd     Supervisor     2011-11-01                          N
Xiuchang
Cui Dieling   Sinopharm A-THINK Pharmaceutical       Chairman       2011-10-01                          N

                                                                                                               66
                                                                  国药集团一致药业股份有限公司 2015 年年度报告全文


                Co., Ltd.
                Sinopharm Xingsha Pharmaceuticals
Cui Dieling                                            Chairman     2011-12-01                               N
                (Xiamen) Co., Ltd.
                Sinopharm Group Sanyi
Cui Dieling                                            Chairman     2012-07-01                               N
                Pharmaceutical (Wuhu) Co., Ltd.
                                                       Chairman of
              China National Medicines Corporation
Cui Dieling                                            Supervisory 2011-12-01                             N
              Ltd
                                                       Committee
Feng Yifeng Sinopharm Holding Fujian Co., Ltd          Director      2012-04-01                           N
              Sinopharm A-THINK Pharmaceutical
Feng Yifeng                                            Director      2012-05-01                           N
              Co., Ltd.
Feng Yifeng Sinopharm Holding Hainan Co., Ltd          Director      2012-05-01                           N
              Sinopharm Group Chemical Reagent
Feng Yifeng                                            Supervisor 2012-05-01                              N
              Co., Ltd.
Feng Yifeng Sinopharm Holding Henan Co., Ltd           Supervisor 2012-06-01                              N
              Sinopharm Holding Changzhou Co.,
Feng Yifeng                                            Supervisor 2010-12-01                              N
              Ltd
Feng Yifeng Sinopharm Holding Wuxi Co., Ltd            Supervisor 2012-12-01                              N
Feng Yifeng Sinopharm Holding Gansu Co., Ltd.          Supervisor 2012-05-01                              N
              Sinopharm Holding Health
Feng Yifeng                                            Supervisor 2012-05-01                              N
              Development (Shanghai) Co., ltd.
              Sinopharm Group Sanyi
Feng Yifeng                                            Supervisor 2012-07-01                              N
              Pharmaceutical (Wuhu) Co., Ltd.
              Shenzhen Main Luck Pharmaceuticals
Yan Zhigang                                            Chairman      2010-05-01                           N
              Inc.
              Sinopharm A-THINK Pharmaceutical
Yan Zhigang                                            Director      2010-06-01                           N
              Co., Ltd.
He Zhiyi      Newhuadu Business School                 Vice dean 2009-01-01                               Y
Xiong
              Shenzhen University                      Professor                                          Y
Chuxiong
Xiong         Shenzhen Zhongjin Lingnan                Independent
                                                                     2011-04-01                           Y
Chuxiong      Nonferrous Co., Ltd.                     Director
Xiong         Shenzhen International Enterprise Co., Independent
                                                                     2010-07-01                           Y
Chuxiong      Ltd.                                     Director
Xiong                                                  Independent
              Hytera Communications Co., Ltd.                        2010-01-01                           Y
Chuxiong                                               Director
Xiao
              Guangdong Shenglun Law Firms             Director                                           Y
Shengfang
Punishment of securities regulatory authority in recent three years to the company’s current and outgoing directors,
supervisors and senior management during the reporting period
□ Applicable √ Not applicable


IV. Remuneration for directors, supervisors and senior executives

Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
(I) Remuneration decision procedure of directors, supervisors, senior management:
The Company implemented the annual salary system for senior executives based on the 2015 annual performance
appraisal (scheme) on management staff, paid annual salary remuneration according to the appraisal results.
Remuneration and appraisal committee of the company's board of directors is responsible for the formulation and
examination of salary plan and program as well as formulation and examination of salary plan and assessment
standards of directors (not including the independent directors), supervisors and senior executives. They also
evaluate the performance assessment of directors, supervisors and senior officers in accordance with the
assessment criteria, compensation scheme.

                                                                                                                  67
                                                                   国药集团一致药业股份有限公司 2015 年年度报告全文




(II) Remuneration determining basis
The main principles of making standard of compensation are: (1) the company's overall business and the profit
level; (2) the overall salary level and dynamic index over past years; (3) difference in position and duty; (4)
relative importance and risks of position; (5) related post salary level in the same industry; (6) individual
professional ability.


(III) Actual payment
Executives get monthly basic salary and annual salary after the issuance of annual examination.
Remuneration for directors, supervisors and senior executives in reporting period
                                                                                                  In 10 thousand Yuan
                                                                                         Total            Whether
                                                                                     remuneration remuneration
                                                                      Post-holding
     Name               Title           Sex              Age                           before tax     obtained from
                                                                         status
                                                                                     obtained from related party of
                                                                                     the Company the Company
                                                                      Currently in
Li Zhiming       Chairman                M                52                               0               Y
                                                                        office
                 Deputy                                               Currently in
Cui Dieling                              F                50                               0               Y
                 Chairman                                               office
                                                                      Currently in
Wei Yulin        Director                M                58                               0               Y
                                                                        office
                                                                      Currently in
Ma Wanjun        Director                M                46                               0               Y
                                                                        office
                                                                      Currently in
Jiang Xiuchang Director                  M                52                               0               Y
                                                                        office
Yan Zhigang    Director, GM              M                56          Appointed          190               N
               Independent                                            Currently in
He Zhiyi                                 M                60                               8               N
               Director                                                 office
Xiong          Independent                                            Currently in
                                         M                60                               8               N
Chuxiong       Director                                                 office
               Independent                                            Currently in
Xiao Shengfang                           M                46                               8               N
               Director                                                 office
               Chairman of
                                                                      Currently in
Feng Yifeng    Supervisory               M                37                               0               Y
                                                                        office
               Committee
                                                                      Currently in
Guan Xiaohui     Supervisor              F                45                               0               Y
                                                                        office
                                                                      Currently in
Wang Huiqin      Supervisor              M                58                             59.6              N
                                                                        office
                                                                      Currently in
Lin Zhaoxiong Deputy GM                  M                48                             152               N
                                                                        office
                                                                      Currently in
Lin Min          Deputy GM               M                51                             133               N
                                                                        office
                                                                      Currently in
Lin Xinyang      Deputy GM               M                51                             133               N
                                                                        office
                                                                      Currently in
Deng Baojun      Deputy GM               M                54                             152               N
                                                                        office
                                                                      Currently in
Pan Rangren      Deputy GM               M                51                             133               N
                                                                        office
                                                                      Currently in
Wei Pingxiao     CFO                     M                52                             133               N
                                                                        office
Chen             Secretary of the        M                48          Currently in        80               N

                                                                                                                  68
                                                                              国药集团一致药业股份有限公司 2015 年年度报告全文


Changbing        Board                                                    office
     Total              --                 --               --               --             1189.6                            --
Delegated equity incentive for directors, supervisors and senior executives in reporting period
□ Applicable √ Not applicable


V. Particulars of workforce

1. Number of staff, professional composition and education background
The number of current employees of parent company
(people)                                                                                                       95
The number of current employees of main subsidiaries
(people)                                                                                                    4,215
Total number of current employees (people)                                                                  4,310
The total number of current employees to receive pay
(people)                                                                                                    4,310
The total number of retired staff and workers that the
parent company and main subsidiaries need to bear the                                                         746
costs (people)
                                               Professional composition
           Category of professional composition                 Number of professional composition(people)
Production staff                                                                                              893
Salesman                                                                                                    1,320
Technical staff                                                                                                94
Financial staff                                                                                               203
Administrative staff                                                                                        1,096
Logistics Staff                                                                                               704
Total                                                                                                       4,310
                                                Education background
                  Category of education                                       Number (people)
Above graduate                                                                                                178
Undergraduate                                                                                               1,447
Junior college                                                                                              1,123
Secondary technical school and below                                                                        1,562
Total                                                                                                       4,310
2. Remuneration policy
Sinopharm Accord and subordinate enterprises provided perfect salary and benefits, salary level and organization (artificial total,
compensation strategy, and position value), staff (development ability, performance results), and market (market level, the
competition for talent) closely combined for employees. Every year through the sort of responsibilities, job evaluation, target
compensation interval mapping, and annual employee job performance and ability evaluation, the ability staff with contribution
raised the salary, at the same time, performance bonuses and performance are closely linked, achieved win-win interests of the
company and employee.
3. Training programs
For more efficient training for employees, and gradually build and improve the company's training management system. First, the
construction of the training system, the implementation of staff training management system, staff continuing education management
system, the intern management system , internal trainer management system and etc. Second, the organization of the training,
arranged by the leadership of the company, set up professional positions in the human resources department, and assisted managers at
all levels to carry out the training of staff. Third, classes and courses of the training, according to different training object features
and training needs of the management, core business backbone and frontline employees, established various targeted training in
different levels, categories and region; curriculum including management courses, general quality courses and vocational skills
course, also vigorously promote internal course development and Instructor Certification. Fourth, the examination of the training, that
set different levels of assessment methods to ensure the staff training effect.




                                                                                                                                       69
                                                         国药集团一致药业股份有限公司 2015 年年度报告全文


4. Labor outsourcing

√Applicable □Not applicable
Total nuber of working hours of labor outsourcing (HR)                                         119,799
Total remuneration paid of labor outsourcing (RMB)                                        32,781,469.30




                                                                                                      70
                        Section IX. Corporate Governance
I. Corporate governance of the Company
Articles of Association are formulated at governance level. In compliance with
requirements of Articles, rules of procedures for shareholders’ meeting, board and board
of supervisors, working system of strategy committee, nomination committee, internal risk
control and audit committee, remuneration and evaluation committee, general manager
and secretary to board, corporate governance system regarding information disclosure,
connected transactions, fund raising, performance of social responsibilities, inside
information and informant management, investor relation management, engagement of
accounting firm and prevention of occupation by major shareholders and connected parties
of capital of listing companies are also established.

During the Reporting Period, the Article of Association and Rules of Procedure of
Shareholders Meeting have been revised according to regulatory requirements and
governance needs. The effective implementation of corporate governance system ensures
the effective performance of duties and responsibilities of respective committees, thereby
facilitating the board of supervisors to play a supervisory role and offering help for the
board to make scientific decisions.
Is there any difference between the actual condition of corporate governance and relevant regulations about
corporate governance for listed company from CSRC?
□Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations
about corporate governance for listed company from CSRC.
II. Independency of the Company relative to controlling shareholders’ in aspect of
businesses, personnel, assets, organization and finance
The Company totally separates from the controlling shareholders in business, personnel,
assets, institutions, financial and other aspects, with independent and complete self-
management ability.
1. The business: the Company was independent from controlling shareholders, having a
complete business system and self-managing ability; the company has independent
procurement and sales system thus all procurement and sales of drugs and raw materials is
in charge of the purchasing department and subordinate subsidiary, branch and production
enterprises; production, supply, marketing and R & D separate from each other; the
Company is a legal market person with independent operation.
2. Personnel: procedures of the controlling shareholder nominating directors and general
and deputy general manager are legal; no intervene on the appointment and removal of
personnel made by the board of directors and shareholders’ meeting happened; the
Company set up independent human resource department, responsible for assessment,
training and salary review on staff, making rules and regulations and handbook the
employees should abide by. Labor, personnel, wages and pension, medical insurance and
other insurance are independently managed.
3. Institution: production and operation mechanism and administrative management is
completely independent from the controlling shareholder or actual controller; offices and
sites of business operation separate from the controlling shareholder; the Company
established corporate governance structure where the board of directors, board of
supervisors and managers carry out their duties and exercise their respective duties in
accordance with relevant provisions of the articles of association.
4. Asset: property and rights relationship between the Company and the controlling
shareholder is clear, with independent operations; the company has independent
production system, auxiliary production system and supporting system; industrial property
rights, trademarks, non-patented technology and other intangible assets owned by the
Company and its subsidiary.
5. Financial aspects: the Company established independent financial departments and
independent financial accounting system; the Company opened a bank account
                                                                                                        71
                                                   国药集团一致药业股份有限公司 2015 年年度报告全文
independently; the financial staff is independent without taking part-time and receiving
remuneration in the controlling shareholder; the Company pays tax independently.

III. Horizontal competition

√Applicable □Not applicable
                       Name of        Nature of                                             Work schedule
      Type            controlling    controlling           Reason          Solution measure and follow-up
                      shareholder    shareholder                                                 plan
                                                      As subordinate
                                                      companies of
                                                      majority
                                                                           In July 2013, to
                                                      shareholder,
                                                      Foshan Nanhai        solve the problem
                                                      Medicine Co., Ltd.
                                                                           of peer
                                                      and Guangdong
                                                      Dong Fang            competition,
                                                      Uptodate &
                                                                           majority
                                                      Special Medicines
                                                      Co., Ltd. both       shareholder
                                                      operate
                                                                           entrusted
Horizontal         Sinopharm                          pharmaceutical                           Normally
                                    SASAC
competition        Holding                            distribution         Sinopharm Accord performing
                                                      business within
                                                                           and Sinopharm
                                                      Guangdong, which
                                                      partially overlaps   Accord agreed to
                                                      with the
                                                                           take over the
                                                      pharmaceutical
                                                      distribution         management of the
                                                      business and
                                                                           above two
                                                      geographical
                                                      location of the      companies.
                                                      Company and
                                                      constitutes peer
                                                      competition.
                                                      As a subordinate
                                                      enterprise of the
                                                      actual controller,
                                                      Guangdong South      In      September
                                                      Pharmaceutical       2013, to solve the
                                                      Foreign Trade Co.,   problem of peer
                                                      ltd. operates        competition, the
                                                      pharmaceutical       actual controller
                                                      distribution
                                                                           entrusted
                                                      business within
Horizontal         Sinopharm                                               Sinopharm          Normally
                                    SASAC             Guangdong, which
competition        Group                                                   Accord        and performing
                                                      partially overlaps
                                                      with the             Sinopharm
                                                      pharmaceutical       Accord agreed to
                                                      distribution         take over the
                                                      business and         management of
                                                      geographical         the         above
                                                      location of the      company.
                                                      Company and
                                                      constitutes peer
                                                      competition.
                                                      As a subordinate     To solve the peer
                                                      pharmaceutical       competition,
                                                      enterprise of the    Sinopharm Group
Horizontal         Sinopharm                                                                  Normally
                                    SASAC             actual controller,   issued in October
competition        Group                              the primary          2013 the Letter of performing
                                                      business of          Undertaking from
                                                      Sinopharm Group      China National

                                                                                                    72
                                                 国药集团一致药业股份有限公司 2015 年年度报告全文
                                                    Weiqida                Pharmaceutical
                                                    Pharmaceutical         Group Corporation
                                                    Co., Ltd. is similar   on Avoiding the
                                                    to the                 Peer Competition
                                                    pharmaceutical         with China
                                                    industrial products    National Accord
                                                    of the Company,        Medicines
                                                    which constitutes      Corporation Ltd.
                                                    peer competition.      and undertook
                                                                           that, in the coming
                                                                           five years,
                                                                           Sinopharm Group
                                                                           intends to take
                                                                           appropriate
                                                                           measures
                                                                           (including the
                                                                           disposal of assets,
                                                                           equity injection
                                                                           and stoppage of
                                                                           production etc.) to
                                                                           solve the problem
                                                                           of peer
                                                                           competition
                                                                           between Weiqida
                                                                           and Sinopharm
                                                                           Accord.
IV. In the report period, the Company held annual shareholders’ general meeting
and extraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
                                   Ratio of investor
Session of meeting      Type                               Date            Date of disclosure Index of disclosure
                                     participation
                                                                                                 Juchao Website—
                                                                                                 (http://www.cninf
                                                                                                 o.com.cn)
Annual general       Annual general                                                              “Resolution
                                             63.05% 2015-04-24             2015-04-25
meeting 2014         meeting                                                                     Notice of Annual
                                                                                                 General Meeting
                                                                                                 2014” No.: 2015-
                                                                                                 19
                                                                                                 Juchao Website—
                                                                                                 (http://www.cninf
                                                                                                 o.com.cn)
First extraordinary                                                                              “Resolution
                    First extraordinary
general meeting of                           57.39% 2015-05-15             2015-05-16            Notice of First
                    general meeting
2015                                                                                             extraordinary
                                                                                                 general meeting of
                                                                                                 2015” No.: 2015-
                                                                                                 22
                                                                                                 Juchao Website—
                                                                                                 (http://www.cninf
                                                                                                 o.com.cn)
Second
                                                                                                 “Resolution
extraordinary      First extraordinary
                                             54.16% 2015-09-11             2015-09-11            Notice of Second
general meeting of general meeting
                                                                                                 extraordinary
2015
                                                                                                 general meeting of
                                                                                                 2015” No.: 2015-
                                                                                                 36
Institutional investor
                                                                             Times of participant in the general
                 Name                      Number of directors
                                                                                          meeting




                                                                                                       73
                                                      国药集团一致药业股份有限公司 2015 年年度报告全文
2. Request for extraordinary general meeting by preferred stockholders whose voting rights
restore

□ Applicable √ Not applicable
V. Responsibility performance of independent directors
1. The attending of independent directors to Board meetings and general meeting
                               The attending of independent directors to Board Meeting
                    Times of Board
                                                                         Times of                  Absent the
      Name of            meeting                        Times of
                                        Times of                                       Times of Meeting for the
    independent       supposed to                     attending by       entrusted              second time in
      director        attend in the
                                        Presence                                       Absence
                                                     communication       presence                 a row (Y/N)
                     report period
He Zhiyi                          10               1               9               0           0N
Xiong Chuxiong                    10               1               9               0           0N
Xiao Shengfang                    10               1               9               0           0N
Times for attending general
                                                                                                              1
meeting from independent directors
Explanation of absent the Board Meeting for the second time in a row

2. Objection for relevant events from independent directors

Independent directors come up with objection about Company’s relevant matters
□Yes √No
Independent directors has no objections for relevant events in reporting period
3. Other explanation about responsibility performance of independent directors
The opinions from independent directors have been adopted
√ Yes □ No
Explanation on advice that accepted/not accepted from independent directors
During the reporting period, the independent directors performed their duties in a careful,
diligent, dedicated attitude in accordance with requirements of the "Working System of
Independent Director", offered some useful suggestions and opinions on business
decision-making, legal affairs, financial management and other aspects; carefully
examined important matters those needed opinions of independent directors, made
independent judgments and issued a written independent opinion on major related
transactions, daily related transactions, accountancy hiring and other matters, playing a
positive role in safeguarding the legitimate rights and interests of small shareholders.
Besides, independent directors played an important role in operation of special committee.
At the same time, the Company can guarantee independent directors and other directors of
the same right to know. During the reporting period, the independent directors have no
objection on the related issues of the Company.
VI. Duty performance of the special committees under the board during the
reporting period
(I) Duties fulfillment of the board of directors and audit committee on internal control over
risk
Internal control on risk and Audit Committee of the board of directors of the company
comprises 3 independent non-executive directors and 3 directors, including the convener
(professional accountant) is an independent director. In accordance with relevant
provisions of China Securities Regulatory Commission and Shenzhen Stock Exchange and
working system, Internal control on risk and Audit Committee of the board of directors
                                                                                                   74
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seriously performed duties in a dedicated attitude. In the annual financial report audit, they
acted as supervisors, maintained individuality of audit and issued a series of notices such
as the Written Opinion on Financial Accounting Statements Issued by the Company before
CPA of Annual Examination Entered, the Written Opinion on Financial Accounting
Statements after Preliminary Audit Issued by CPA of Annual Examination, the Summary
Report of Internal Risk Control and Audit Committee on the Annual Audit Work of CPA
as well as the Resolution on Rehire the Audit Institution. Its main duties comprise the
following:

1. Risk internal control and audit committee is responsible for determining the audit work
schedule,      negotiating       with       CPA             who      engages        in      audit;
2. Before CPA enters, audit committee should review the financial statements prepared by
the           Company              and              issue            written             opinions;
3. Strengthen communication with the CPA, and urge them to submit audit report within
stipulated                time              with                   urgency                  letter;
4. Review again the financial statements after the CPA issues preliminary opinion, and
issue                                    written                                         opinions;
5. The Committee held annual work conference 2015, approved proposal of financial
accounting report, summary report of annual audit work of CPA and rehiring PWC
Zhongtian CPA as the audit institution, and then formed a resolution to submit to board of
directors for approval.
(II) Duties fulfillment of Remuneration and Appraisal Committee
As special working mechanism of the board of directors, the remuneration and appraisal
committee is responsible for approving the assessment standard of directors and senior
executives, formulating and reviewing compensation policies and programs of directors
and executive. And they take charge in examining according to the standard and policies.
The remuneration and appraisal committee is composed of 3 directors, including 2
independent directors; convener is He Zhiyi, an independent director.

During the reporting period, remuneration and assessment committee actively performed
duty; clearly defined their responsibilities; did serious research and appraisal on the
remuneration and appraisal system, especially salary, assessment system and program over
directors, supervisors and senior executive. According to working rules of the
remuneration and appraisal committee, they have rights to check regular reports, meetings
records, business planning and other materials by telephone, interviews and other methods
to learn the performance of directors, executives. And they’re required to submit problems


                                                                                                75
                                                       国药集团一致药业股份有限公司 2015 年年度报告全文
existing in implementation of system to the Board of Directors and raise up suggestion on
them. Their contents are as follows:
1. In 2015, the remuneration and appraisal committee carried out the performance
evaluation of executives according to the 2014 Annual operation standard and
performance.
2. It proposed the "2016 Evaluation Scheme of Operating Performance", and submitted it
to the board of directors for approval.
3. The remuneration and appraisal committee approved salary of directors, supervisors and
senior executives disclosed in 2015 annual report. And it issued the following opinions:
Compensation decision procedures of directors, supervisors and senior management
personnel was in accordance with the provisions; the standard was in accordance with the
remuneration system; the disclosure of 2015 annual report about personnel salary of the
directors, supervisors and senior management is real and accurate.
VII. Works from Supervisory Committee
The Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objection about supervision events in reporting period
VIII. Examination and incentives of senior management
Senior executives of the Company took responsibility for the board of directors, in the
reporting period, the board of directors implemented the performance checking
mechanism that the remuneration of senior executives related with their performance
checking, with achievement as direction, and made relevant reward and punishment
according to target completion. The Company’s relevant incentive and restriction
mechanism gradually in order to further exert the enthusiasm and creativity of senior
executives, urge the senior executives to perform the obligations of being honest and
diligent. The Company had no incentive mechanism for senior executives such as stock
option, purchase of management team and equity held by owner.
IX. Internal Control

1. Details of major defects in IC appraisal report that found in reporting period

□Yes √ No

2. Appraisal Report of Internal Control

Disclosure date of full internal control
                                         2016-03-26
evaluation report
                                         Juchao Website: (http://www.cninfo.com.cn); ”Self-evaluation Report of
Disclosure index of full internal
                                         Internal Control of China National Accord Medicines Corporation Ltd for year
control evaluation report
                                         of 2015”
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the                                                                       100.00%
company's consolidated financial
statements

                                                                                                          76
                                                        国药集团一致药业股份有限公司 2015 年年度报告全文
The ratio of the operating income of
units included in the scope of
evaluation accounting for the                                                                                    100.00%
operating income on the company's
consolidated financial statements
                                             Defects Evaluation Standards
               Category                             Financial Reports                     Non-financial Reports
                                        Financial report deficiencies are Non-financial report deficiencies
                                        mainly judged by the impact and the are mainly judged by the impact of
                                        likelihood of occurrence of financial deficiencies to the validity of
                                        reporting misstatements caused by business process and the likelihood
                                        deficiencies. (1) Major deficiencies: A of       occurrence.      (1)      Major
                                        combination of one or multiple internal deficiencies: A combination of one
                                        control deficiencies that exists in or multiple internal control
                                        internal control and may cause the deficiencies that may cause the
                                        material misstatements in financial enterprise’s serious deviation to
                                        statements cannot be prevented, internal control objectives; (2)
Qualitative criteria                    found or corrected in time; (2) Significant                deficiencies:        A
                                        Significant deficiencies: A combination combination of one or multiple
                                        of one or multiple internal control internal control deficiencies whose
                                        deficiencies that exists in internal severity level and economic
                                        control and has severity level lower consequences are lower than major
                                        than major deficiencies but still should deficiencies but still may cause the
                                        be concerned by the superintendents of enterprise’s deviation to internal
                                        enterprise financial report; (3) Common control objectives; (3) Common
                                        deficiencies: Other deficiencies except deficiencies: Other deficiencies
                                        for major and significant deficiencies. except for major and significant
                                                                                 deficiencies.
                                                                                 Quantitative criteria: A quantitative
                                                                                 criterion determines the degree of
                                                                                 importance      of     a    company’s
                                                                                 deficiencies based on the amount of
                                                                                 direct loss and the degree of
                                                                                 significant impact to the company.
                                                                                 (1) Major deficiencies: the amount of
                                                                                 direct property loss is or more than
                                        Quantitative criteria: A quantitative 10 million yuan, or has been
                                        criterion determines the degree of officially disclosed and caused
                                        importance of misstatements (including negative effects to periodic report
                                        missing reports) in the consolidated disclosure         of    the     joint-stock
                                        statements of listed companies based on companies;          (2)      Significant
                                        the consolidated statement data. (1) deficiencies: the amount of direct
Quantitative standard                   Major deficiencies: equal to or greater property loss is between 5 million
                                        than 5% of profit before tax (2) and 10 million yuan, or has been
                                        Significant deficiencies: between 1% punished by the national government
                                        and 5% of profit before tax; (3) departments but has not caused
                                        Common deficiencies: less than or equal negative effects to periodic report
                                        to 1% of profit before tax.              disclosure     of    the     joint-stock
                                                                                 companies;(3)                  Common
                                                                                 deficiencies: the amount of direct
                                                                                 property loss is between 0.1 million
                                                                                 and 5 million yuan, or has been
                                                                                 punished by the provincial or sub-
                                                                                 provincial government departments
                                                                                 but has not caused negative effects to
                                                                                 periodic report disclosure of the
                                                                                 joint-stock companies.
Amount of significant defects in
                                                                                                                       0
financial reports
Amount of significant defects in non-
                                                                                                                       0
financial reports
Amount of important defects in
                                                                                                                       0
financial reports
Amount of important defects in non-
                                                                                                                       0
financial reports
                                                                                                            77
                                                       国药集团一致药业股份有限公司 2015 年年度报告全文
X. Auditing report of internal control

√Applicable □ Not applicable
                                      Deliberations in Internal Control Audit Report
Sinopharm Accord, in line with Basic Norms of Enterprises Internal Control and relevant regulations, shows an
effectiveness internal control of financial report in all major aspects dated 31 December 2015.
Disclosure details of audit
                                   Disclosed
report of internal control
Disclosure date of audit report
                                   2016-03-26
of internal control (full-text)
Index of audit report of internal Juchao Website: (http://www.cninfo.com.cn); ”Audit Report of Internal Control of
control (full-text)                China National Accord Medicines Corporation Ltd.”
Opinion type of auditing report
                                   Standard unqualified
of IC
whether the non-financial report
                                   No
had major defects
Carried out modified opinion for internal control audit report from CPA
□Yes √ No
The internal control audit report, issued by CPA, has concerted opinion with self-evaluation report, issued
from the Board
√ Yes □ No




                            Section X Financial Report




                                                                                                         78
                            [English Translation for Reference Only]

                                    Report of the Auditors

                                                             PwC ZT Shen Zi (2016) No. 10007
                                                                                (Page 1 of 2)

To the Shareholders of China National Accord Medicines Co., Ltd.

We have audited the accompanying financial statements of China National Accord Medicines
Co., Ltd. (hereinafter the “Company”), which comprise the consolidated and company balance
sheets as at 31 December 2015, and the consolidated and company income statements, the
consolidated and company statements of changes in shareholder’s equity and the consolidated
and company cash flow statements for the year then ended, and the notes to the financial
statements.

Management’s Responsibility for the Financial Statements

Management of National Accord is responsible for the preparation and fair presentation of
these financial statements in accordance with the requirements of Accounting Standards for
Business Enterprises, and for such internal control as management determines is necessary to
enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with China Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material
misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.




                                                                                            79
                                                               PwC ZT Shen Zi (2016) No. 10007
                                                                                  (Page 2 of 2)

Opinion

In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the Company and of the Company and its subsidiaries(the “Group”) as at 31
December 2015, and their financial performance and cash flows of the Company and the Group
for the year then ended in accordance with the requirements of Accounting Standards for
Business Enterprises.




PricewaterhouseCoopers Zhong Tian LLP
Shanghai, the People’s Republic of China

24 March2016




                                                                                                 80
CHINA NATIONAL ACCORD MEDICINESCO., LTD.
Consolidated and companybalance sheets
For the year ended 31 December 2015
(All amounts in Renminbi “RMB” unless otherwise stated)

          ASSETS                  Note        31 December 2015 31 December 2014 31 December 2015 31 December 2014
                                                   Consolidated     Consolidated       Company          Company
Current assets
    Cash at bank and on
       hand                       IV(1)        1,570,706,970.51     867,562,115.54     429,437,078.35     257,173,314.81
    Notes receivable              IV(2)          820,125,807.67     618,995,440.09      43,896,287.87      47,389,669.59
    Accounts receivable        IV(3)、XV(1)    6,153,830,882.75    7,018,312,673.19    381,093,808.53     513,791,982.48
    Advances to suppliers         IV(4)           72,041,261.84      96,043,154.40       5,452,046.55        5,047,755.80
    Other receivables          IV(5)、XV(2)       38,175,884.46      28,574,927.90    1,613,862,656.17   1,111,423,809.76
    interest receivable                                       -                   -      2,053,659.27        1,890,165.10
    Inventories                   IV(6)        2,533,160,758.28    2,322,333,262.87    182,659,794.51     184,880,147.05
    Other current assets          IV(7)           19,456,915.58      40,308,591.47          39,482.38        2,560,096.51
    Divided into holding
      assets for sale             IV(8)            2,456,876.83                   -                  -                  -
Total current assets                          11,209,955,357.92   10,992,130,165.46   2,658,494,813.63   2,124,156,941.10


Non-current assets
    Long-term equity
      investments              IV(9)、XV(3)      180,831,714.55     157,604,846.85    2,795,231,208.93   2,772,004,341.23
    Investment properties         IV(10)         145,102,318.77      73,836,850.51        4,379,786.84       5,272,980.96
    Fixed assets                  IV(11)       1,079,412,437.53     745,557,829.35     391,937,393.50      17,175,509.65
    Construction in progress      IV(12)         176,096,786.58     330,218,696.56     129,851,067.29     299,290,846.13
    Intangible assets             IV(13)         137,720,156.55     144,383,753.87      35,678,610.77      36,923,545.12
    Development costs             IV(13)           5,619,315.47        5,619,315.47                  -                  -
    Goodwill                      IV(14)          79,378,833.15      79,378,833.15                   -                  -
    Long-term prepaid
       expenses                   IV(15)          40,464,563.93      39,154,232.03        7,417,691.74       5,681,186.10
    Deferred income tax
       assets                     IV(16)          88,210,062.44      85,146,479.50        2,906,189.80       2,800,803.02
    Other non-current assets      IV(18)          75,558,188.42     175,910,538.15      34,856,698.50      68,103,087.93
Total non-current assets                       2,008,394,377.39    1,836,811,375.44   3,402,258,647.37   3,207,252,300.14


TOTAL ASSETS                                  13,218,349,735.31   12,828,941,540.90   6,060,753,461.00   5,331,409,241.24




                                                                                                            81
CHINA NATIONAL ACCORD MEDICINESCO., LTD.
Consolidated and companybalance sheets (continued)
For the year ended 31 December 2015
(All amounts in Renminbi “RMB” unless otherwise stated)

LIABILITIES AND OWNER’S          Note     31 December 2015    31 December 2014 31 December 2015      31 December 2014
 EQUITY                                         Consolidated        Consolidated       Company               Company
Current liabilities
   Short-term borrowings          IV(19)    1,212,959,267.74    1,517,954,528.88    106,000,000.00       202,000,000.00
   Notes payable                  IV(20)    1,301,594,416.81    1,468,166,640.64    285,394,838.22       274,584,574.89
   Accounts payable               IV(21)    4,036,910,159.14    3,988,878,234.03    292,794,309.39       314,477,971.19
   Advances from customers        IV(22)       56,943,167.40       40,339,905.63       5,841,769.74         322,008.81
   Employee benefits
      payable                     IV(23)      164,315,934.17      171,958,142.88     22,441,125.24        20,339,767.52
   Taxes payable                  IV(24)       72,863,480.20       77,445,669.46     10,770,924.28        13,695,533.72
   Interests payable              IV(25)        6,544,067.19        6,666,712.19        354,492.17            86,831.07
   Other payables                 IV(26)      468,450,153.85      412,347,201.51    680,741,770.79       447,928,781.45
   Current portion of long-
      term Borrowings             IV(27)        5,444,858.84        4,000,000.00                  -                   -
Total current liabilities                   7,326,025,505.34    7,687,757,035.22   1,404,339,229.83    1,273,435,468.65


Non-current liabilities
   Long-term borrowings           IV(28)       72,495,172.30       39,695,448.00     72,495,172.30        39,695,448.00
   Long-term payables             IV(29)        8,394,559.05                   -                  -                   -
   Payables for specific
      projects                    IV(30)        1,287,000.00        1,287,000.00        800,000.00          800,000.00
   Deferred Income                IV(31)      173,099,023.98      176,366,201.15       5,074,999.99        5,000,000.00
   Long-term employee
      benefits payable            IV(32)        2,499,100.00        2,896,000.00         72,000.00          226,000.00
   Deferred income tax
      liabilities                 IV(16)       22,647,074.06       24,297,076.57       3,773,319.00        3,773,319.00
   Other non-current
      liabilities                 IV(33)       45,427,343.31       45,427,343.31                  -                   -
Total non-current liabilities                 325,849,272.70      289,969,069.03     82,215,491.29        49,494,767.00


Total liabilities                           7,651,874,778.04    7,977,726,104.25   1,486,554,721.12    1,322,930,235.65


OWNERS’ EQUITY
   Share capital                  IV(34)      362,631,943.00      362,631,943.00    362,631,943.00       362,631,943.00
   Capital surplus                IV(35)    1,863,894,533.34    1,863,894,533.34   1,869,692,921.70    1,869,692,921.70
   Surplus reserve                IV(36)      181,315,971.50      181,315,971.50    181,315,971.50       181,315,971.50
   Undistributed profits          IV(37)    3,045,551,246.71    2,356,765,374.25   2,160,557,903.68    1,594,838,169.39
   Total equity attributable to
      equity holders of the
      Company                               5,453,393,694.55    4,764,607,822.09   4,574,198,739.88    4,008,479,005.59
   Minority interest              IV(38)      113,081,262.72       86,607,614.56                  -                   -
Total owners' equity                        5,566,474,957.27    4,851,215,436.65   4,574,198,739.88    4,008,479,005.59


TOTAL LIABILITIES AND
 OWNERS’ EQUITY                           13,218,349,735.31   12,828,941,540.90   6,060,753,461.00    5,331,409,241.24




The accompanying notes form an integral part of these financial statements.


Legal                                 Principal in charge                      Head of accounting
representative:                       of accounting :                          department:




                                                                                                         - 82 -
CHINA NATIONAL ACCORD MEDICINES CO., LTD.
Consolidated and company income statements
For the year ended 31 December 2015
(All amounts in Renminbi “RMB” unless otherwise stated)

                                                                       2015                    2014               2015                2014
               Item                         Note
                                                              Consolidated            Consolidated           Company             Company
I      Sales                             IV(39) 、XV(4)   25,993,139,277.84       23,954,331,028.05   2,863,660,401.47    2,778,958,470.32
                                          IV(39)、IV(44)、
Less: Cost of sales                             XV(4)     (23,972,042,607.92) (22,002,628,769.91) (2,737,910,097.84)     (2,661,191,051.06)
      Taxes and surcharges                   IV(40)           (50,508,357.41)     (46,741,611.03)     (6,075,183.19)         (7,884,152.19)
      Selling and distribution
         expenses                        IV(41)、IV(44)    (533,791,055.46)        (522,383,083.15)    (46,270,636.71)     (50,541,074.90)
      Administration expenses            IV(42)、IV(44)    (459,218,208.55)        (474,317,573.25)    (55,216,452.28)     (56,548,260.89)
      Financial expenses/(income)                                                  (123,129,102.91)
        – net                               IV(43)           (91,282,085.47)                           66,168,235.86        86,040,210.41
      Asset impairment losses                IV(45)           (37,117,607.82)       (54,059,556.00)      (487,293.37)     (121,866,804.17)
Add: Investment income                   IV(46)、XV(5)          57,413,887.70         50,415,836.33    571,927,007.23       527,284,955.64
      Including: Share of profits of
         associates                                            57,413,887.70         50,415,836.33      57,413,887.70         50,415,836.33

II    Operating profit                                        906,593,242.91        781,487,168.13     655,795,981.17       494,252,293.16
Add: Non-operating income                    IV(47)            55,403,408.06         49,881,058.60       6,114,684.26         3,720,411.34
Less: Non-operating expenses                 IV(48)             (688,795.85)         (2,084,788.43)                 -           (73,227.94)
      Including: Loss on disposal
         non-current assets                                     (452,401.24)           (541,470.69)                  -          (23,227.86)

III   Total profit                                           961,307,855.12          829,283,438.30    661,910,665.43       497,899,476.56
Less: Income taxes expenses                  IV(49)        (173,959,945.90)        (159,442,270.43)    (23,664,542.54)        (690,557.22)

IV     Net profit                                             787,347,909.22        669,841,167.87     638,246,122.89       474,226,166.14
       Attributable to equity holders
          of the Company                                      761,312,261.06        652,497,176.03     638,246,122.89       474,226,166.14
       Minority interest                                       26,035,648.16         17,343,991.84                  -                    -

V      Other comprehensive
         income                                                               -                   -                  -                    -

VI     Total comprehensive
         income                                               787,347,909.22        669,841,167.87     638,246,122.89       474,226,166.14
       Attributable to equity holders
         of the Company                                       761,312,261.06        652,497,176.03     638,246,122.89       474,226,166.14
       Minority interest                                       26,035,648.16         17,343,991.84                  -                    -

VII    Earnings per share                  IV(50)
       Basic earnings per share                                        2.10                   1.90                N/A                  N/A
       Diluted earnings per share                                      2.10                   1.90                N/A                  N/A




The accompanying notes form an integral part of these financial statements.

Legal                                   Principal in charge                          Head of accounting
representative:                         of accounting :                              department:




                                                                                                                     - 83 -
CHINA NATIONAL ACCORD MEDICINES CO., LTD.
Consolidated and company cash flows statements
For the year ended 31 December 2015
(All amounts in Renminbi (RMB) unless otherwise stated)

                                                               2015                   2014                2015                  2014
               Item                    Note
                                                       Consolidated           Consolidated             Company               Company
I. Cash flows from operating
activities:
     Cash received from sales of
         goods or rendering of
         services                                  29,149,610,033.67      24,589,100,077.05     3,285,822,755.42     2,920,233,286.18
     Refund of taxes and
         surcharges                                     8,448,126.90           7,684,100.85                     -                    -
     Cash received relating to
         other operating activities   IV(51)(a)       102,307,958.73          95,723,511.65        22,129,617.81        23,134,788.02
         Sub-total of cash inflows                 29,260,366,119.30      24,692,507,689.55     3,307,952,373.23     2,943,368,074.20
     Cash paid for goods and
        services                                  (26,653,647,201.64)   (24,004,157,438.02)    (3,192,267,206.67)   (2,890,702,190.08)
     Cash paid to and on behalf
        of employees                                (615,094,469.83)       (561,974,921.45)      (54,576,026.24)       (51,493,616.14)
     Payments of taxes and
        surcharges                                  (595,199,714.55)       (532,911,240.08)      (47,163,193.25)       (34,440,144.29)
     Cash paid relating to other
        operating activities          IV(51)(b)     (348,445,630.30)       (390,161,122.43)      (26,759,541.81)       (27,519,021.28)
         Sub-total of cash outflows               (28,212,387,016.32)   (25,489,204,721.98 )   (3,320,765,967.97)   (3,004,154,971.79)
      Net cash flows from
        operating activities        IV(52)(a)       1,047,979,102.98       (796,697,032.43)      (12,813,594.74)       (60,786,897.59)

II. Cash flows from investing
activities
      Cash received from returns
         on investments                                35,190,000.00          28,152,000.00       616,517,083.38       590,255,378.22
      Net cash received from
         disposal of fixed assets,
         intangible assets and
         other long-term assets                         9,486,605.21           1,373,701.57                     -             8,220.00
      Cash received from disposal
         of subsidiaries and other
         business units               IV(51)(c)        20,000,000.00                       -    2,604,319,315.47     4,665,051,089.73
          Sub-total of cash inflows                    64,676,605.21          29,525,701.57     3,220,836,398.85     5,255,314,687.95
     Cash paid to acquire fixed
        assets, intangible assets
        and other long-term
        assets                                      (190,362,031.68)       (342,669,442.11)     (145,095,042.98)      (255,285,127.72)
     Cash paid to acquire
        Investments                                                 -                      -                    -   (1,264,910,000.00)
     Net cash paid to acquire
        subsidiaries and other
        business units                IV(52)(b)        (9,452,000.00)        (2,211,778.91)        (9,452,000.00)       (6,761,000.00)
     Cash paid relating to other
        investing activities                                        -                      -   (3,081,753,248.70)   (4,619,057,191.29)
         Sub-total of cash outflows                 (199,814,031.68)       (344,881,221.02)    (3,236,300,291.68)   (6,146,013,319.01)
      Net cash flows from
        investing activities        &e