一致B:2019年第三季度报告全文(英文版)

China National Accord Medicines Corporation Ltd.

        The Third Quarterly Report for 2019




                   October 2019




                                                   1
                        Section I. Important Notice

Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of China National Accord Medicines Corporation Ltd. (hereinafter
referred to as the Company) hereby confirm that there are no any fictitious
statements, misleading statements, or important omissions carried in this report,
and shall take all responsibilities, individual and/or joint, for the reality,
accuracy and completion of the whole contents.
All directors are present the meeting of the Board for deliberating the Third
Quarter Report of the Company in person.
Lin Zhaoxiong, person in charge of the Company, head of the accounting works
Wei Pingxiao and Wang Ying, accounting body principals (accountant in charge)
hereby confirm that the Financial Report of the Third Quarterly Report is
authentic, accurate and complete.




                                                                               2
                             Section II. Basic information of Company

I. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data or not

□ Yes √ No

                                          Current period-end                Period-end of last year                Increase/decrease

Total assets (RMB)                                  34,816,993,187.67               28,930,300,519.97                                20.35%

Net assets attributable to
shareholders of listed company                      12,451,750,624.00                   11,618,432,603.28                              7.17%
(RMB)

                                                                                                                       Increase/decrease in
                                                                 Increase/decrease in
                                                                                            Year-begin to end of        comparison with
                                         Current period         comparison with same
                                                                                                 the Period               year-begin to
                                                                  period of last year
                                                                                                                      period-end of last year

Operating revenue (RMB)                  13,647,793,431.64                     24.21%          38,875,940,809.07                     22.38%

Net profit attributable to
shareholders of the listed company          311,310,706.52                      9.14%             962,144,066.92                       3.79%
(RMB)

Net profit attributable to
shareholders of the listed company
                                            303,365,280.52                      7.45%             943,065,728.47                       4.14%
after deducting non-recurring gains
and losses (RMB)

Net cash flow arising from
                                               --                         --                    1,072,962,161.22                     90.24%
operating activities (RMB)

Basic earnings per share
                                                        0.735                  10.36%                         2.247                    3.79%
(RMB/Share)

Diluted earnings per share
                                                        0.735                  10.36%                         2.247                    3.79%
(RMB/Share)

                                                                0.09 percentage points                                1.27 percentage points
Weighted average ROE                                   2.53%                                                  7.94%
                                                                                decline                                               decline

Note: the weighted average ROE has 0.09 percentage points down from same period last year, and 1.27 percentage points down at
year-begin to period-end over same period last year, mainly because a strategy investor was introduced by Guoda Drugstore in
second half of last year.
Items and amount of extraordinary profit (gains)/losses
√Applicable      □Not applicable
                                                                                                                                      In RMB



                                                                                                                                                3
                                                                       Amount from year-begin to
                                Item                                                                                   Note
                                                                               end of the Period

Gains/losses from the disposal of non-current asset (including the
                                                                                            487,779.48
write-off that accrued for impairment of assets)

Governmental subsidy reckoned into current gains/losses (not
                                                                                                         Received vary taxes subsidies
including the subsidy enjoyed in quota or ration according to
                                                                                         29,325,892.83 and financial rewards in the
national standards, which are closely relevant to enterprise’s
                                                                                                         period
business)

                                                                                                         Net gain/loss of impairment
Reversal of impairment reserve for account receivable with
                                                                                          1,216,744.26 provision switch-back for
separate impairment testing
                                                                                                         receivables

                                                                                                         The gains obtained from offering
Gains/losses on entrusted loans                                                           2,563,975.31 entrust loans to China National
                                                                                                         Zhijun (Suzhou)

Other non-operating income and expenditure except for the
                                                                                          2,455,770.91
aforementioned items

Other gains/losses satisfy a definition of extraordinary
                                                                                             22,424.73
gains/losses

Less: impact on income tax                                                                8,393,659.91

     Impact on minority shareholders’ equity (post-tax)                                  8,600,589.16

Total                                                                                    19,078,338.45                  --

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.


II. Statement of the total shareholders and shares-held of top ten shareholders at end of the
Period

1. Total number of common shareholders at the end of this report period and top ten common shareholders

                                                                                                                                   In Share

                                                                           Total preference shareholders
Total common shareholders at the                                           with voting rights recovered at
                                                                  21,620                                                                 0
end of report period                                                       end of reporting period (if
                                                                           applicable)



                                                                                                                                             4
                                                       Top ten shareholders

                                                                                Amount of         Number of share pledged/frozen
                          Nature of    Proportion of    Amount of shares
  Shareholders                                                                restricted shares
                         shareholder    shares held           held                                State of share     Amount
                                                                                    held

Sinopharm Group State-owned
                                              56.06%         239,999,991            55,057,700
Co., Ltd.             corporate
Hong Kong
Securities            Overseas
                                                4.48%         19,163,870
Clearing              corporate
Company Ltd

HTHK/CMG
FSGUFP-CMG
                      Overseas
FIRST STATE                                     2.68%         11,469,644
                      corporate
CHINA
GROWTH FD

China National
Pharmaceutical        State-owned
                                                1.24%           5,323,043            5,323,043
Foreign Trade         corporate
Corp.

Fidelity
Investment
Management            Overseas
                                                1.13%           4,825,907
(Hong Kong)           corporate

Limited - Client’s
fund
# Beijing
Haoqing Fortune
Investment            Domestic non
Management Co., state-owned                     0.96%           4,118,716
Ltd. – Haoqing       corporate
Value Stable No.8
Investment Fund

Basic endowment Domestic non
insurance fund- state-owned                     0.95%           4,080,913
portfolio 1003        corporate

Central Huijin        State-owned
                                                0.89%           3,804,400
Investment Ltd.       corporate

Bank of China -       Domestic non
Harvest Health        state-owned               0.76%           3,258,525
Care Stock            corporate
Securities



                                                                                                                                   5
Investment Funds

BBH BOS S/A
FIDELITY FD -      Overseas
                                                   0.76%           3,246,061
CHINA FOCUS corporate
FD

                                   Particular about top ten shareholders with un-restrict shares held

                                                                                                               Type of shares
            Shareholders                          Amount of un-restrict shares held
                                                                                                            Type           Amount

                                                                                                   RMB ordinary
Sinopharm Group Co., Ltd.                                                           184,942,291                            184,942,291
                                                                                                   shares
Hong Kong Securities Clearing                                                                      RMB ordinary
                                                                                     19,163,870                                 19,163,870
Company Ltd                                                                                        shares

                                                                                                   Domestically
HTHK/CMG FSGUFP-CMG FIRST
                                                                                      11,469,644 listed foreign                 11,469,644
STATE CHINA GROWTH FD
                                                                                                   shares

China National Pharmaceutical                                                                      RMB ordinary
                                                                                       5,323,043                                 5,323,043
Foreign Trade Corp.                                                                                shares

Fidelity Investment Management                                                                     RMB ordinary
                                                                                       4,825,907                                 4,825,907
(Hong Kong) Limited - Client’s fund                                                               shares
# Beijing Haoqing Fortune
Investment Management Co., Ltd. –                                                                 RMB ordinary
                                                                                       4,118,716                                 4,118,716
Haoqing Value Stable No.8                                                                          shares
Investment Fund

Basic endowment insurance fund-                                                                    RMB ordinary
                                                                                       4,080,913                                 4,080,913
portfolio 1003                                                                                     shares

                                                                                                   RMB ordinary
Central Huijin Investment Ltd.                                                         3,804,400                                 3,804,400
                                                                                                   shares

Bank of China - Harvest Health Care                                                                RMB ordinary
                                                                                       3,258,525                                 3,258,525
Stock Securities Investment Funds                                                                  shares

                                                                                                   Domestically
BBH BOS S/A FIDELITY FD -
                                                                                       3,246,061 listed foreign                  3,246,061
CHINA FOCUS FD
                                                                                                   shares

Explanation on associated              It is unknown that there exists no associated relationship or belongs to the consistent actionist
relationship among the aforesaid       among the other tradable shareholders regulated by the Management Measure of Information
shareholders                           Disclosure on Change of Shareholding for Listed Companies.

Explanation on top ten common          Beijing Hao Qing Wealth Investment Management Co., Ltd. –Hao Qing Value Stable No.8
shareholders involving margin          Investment Fund holds 4,048,216 shares of the Company through margin trading and
business (if applicable)               refinancing secured security account

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement



                                                                                                                                             6
dealing in reporting period
□ Yes √ No
The shareholders of the Company have no buy-back agreement dealing in reporting period.


2. Total of shareholders with preferred stock held and the top ten shareholdings

□Applicable          √Not applicable




                                                                                          7
                                        Section III. Important events

I. Particular about major changes from items of main accounting statements and financial
indexes as well as reasons

√ Applicable □Not applicable
1. Note receivable: decreased 772 million Yuan over that of period-begin with growth rate of -56.88%, mainly because according to
the presentation requirements of statement, at end of the period, the bank acceptance bill in note receivable was listed under the item
of “Receivable financing”;


2. Accounts receivable: increased 3844 million Yuan over that of period-begin with growth rate of 41.17%, mainly because volume
of business increased in the period, account receivable goes up and payment collection period increased at the same time;


3. Receivable financing: increased 400 million Yuan over that of period-begin, mainly because according to the presentation
requirements of statement, at end of the period, the bank acceptance bill in note receivable was listed under the item of “Receivable
financing”;


4. Interest receivable: increased 6.1777 million Yuan over that of period-begin with growth rate of 75.12%, mainly because the
deposit interest increased;


5. Right-of-use assets: increased 1860 million Yuan over that of period-begin, mainly due to the implementation of new leasing
standards in the period;


6. Total non-current assets: increased 2114 million Yuan over that of period-begin with growth rate of 47.66%, mainly because the
right-of-use assets increased for new leasing standards implemented in the period;


7. Accounts payable: increased 2678 million Yuan over that of period-begin with growth rate of 41.41%, mainly because volume of
business increased in the period, purchase volume and account payable increase accordingly;


8. Dividends payable: increased 4.7064 million Yuan over that of period-begin with growth rate of 73.66%, mainly because the
accrual of bonus of minority shareholders payable increased;


9. Non-current liabilities due within one year: increased 533 million Yuan over that of period-begin with growth rate of 9,093.11%,
mainly due to the implementation of new leasing standards in the period, the ending book value of leasing liabilities due for
repayment within one year from the balance sheet date, was listed under the item of “Non-current liabilities due within one year”;


10. Other current liabilities: increased 330,700 Yuan over that of period-begin with growth rate of 113.07%, mainly because the
output tax amount ready for transfer increased over that of period-begin;


11. Long-term borrowings: decreased 31.60 million Yuan over that of period-begin with growth rate of -100.00%, mainly because
the long-term loan was re-classified to non-current liability due within one year;




                                                                                                                                         8
12. Lease liabilities: increased 1165 million Yuan over that of period-begin, mainly due to the implementation of new leasing
standards in the period;


13. Long-term payables: decreased 3.764 million Yuan over that of period-begin with growth rate of -82.47%, mainly due to the
implementation of new leasing standards in the period, the finance lease before the first execution date was adjusted to lease
liabilities;


14. Total non-current liabilities: increased 1126 million Yuan over that of period-begin with growth rate of 422.45%, mainly because
lease liabilities increased for the implementation of new leasing standards in the period;


15. Total liabilities: increased 4875 million Yuan over that of period-begin with growth rate of 32.44%, mainly because volume of
business increased in the period, purchase volume and account payable increase accordingly;


16. Operating revenue: increased 7109 million Yuan on a y-o-y basis with growth rate of 22.38%, mainly because business income
increased for the good business performance in the period;


17. Operating costs: increased 6552 million Yuan on a y-o-y basis with growth rate of 23.30%, mainly because business income
increased for the good business performance in the period, business cost increased correspondingly;


18. Finance costs: increased 69.5683 million Yuan on a y-o-y basis with growth rate of 88.87%, mainly due to the implementation of
new leasing standards in the period, during the lease terms, interest expenses shall be calculated according to the discount rate for
lease liabilities, there was no such item in the same period last year;


19. Other incomes: increased 14.7031 million Yuan on a y-o-y basis with growth rate of 118.53%, mainly because fiscal subsidy
received in period increased;


20. Impairment losses on financial assets: increased 15.1252 million Yuan on a y-o-y basis with growth rate of 3156.28%, mainly
because the account receivable has increased over same period last year at end of the period, than the bad debt provision accrual in
the period increased on a y-o-y basis;


21. Impairment losses: increased 714,900 Yuan on a y-o-y basis with growth rate of 613.43%, mainly because reversal of the
inventory falling price reserves declined from a year earlier;


22. Gain on disposal of assets: decreased 3.7735 million Yuan on a y-o-y basis with growth rate of -86.59%, mainly because at same
period last year, there was a property funds collected by the government was received by the Company while no such item in the
period;


23. Minority shareholders’ gains and losses: increased 81.7569 million Yuan on a y-o-y basis with growth rate of 97.93%, mainly
because at second half of 2018, subsidiary Guoda Drugstore introduced a strategy investor, the gains/losses of minority shareholders
increased on a y-o-y basis in the period;


24. Total comprehensive income attributable to minority shareholders: increased 81.7569 million Yuan on a y-o-y basis with growth
rate of 97.93%, mainly because at second half of 2018, subsidiary Guoda Drugstore introduced a strategy investor, the total
comprehensive income attributable to minority shareholders increased correspondingly;



                                                                                                                                       9
25. Tax refunds: increased 1.7933 million Yuan on a y-o-y basis with growth rate of 104.58%, mainly because the tax refund
increased compared with same period of last year;


26. Cash payments related to other operating activities: decreased 484 million Yuan on a y-o-y basis with growth rate of -38.77%,
mainly due to the implementation of new leasing standards in the period, the rents paid in the period are reckoned into cash paid with
other financing activity concerned, while no such item at same period lat year;


27. Net cash flows from operating activities: increased 509 million Yuan on a y-o-y basis with growth rate of 90.24%, mainly due to
the good operation performance, cash received for goods sales and providing services increased correspondingly; and due to the
implementation of new leasing standards in the period, the rents paid in the period are reckoned into cash paid with other financing
activity concerned, while no such item at same period lat year;


28. Cash received from returns on investments: decreased 52.7204 million Yuan on a y-o-y basis with growth rate of -40.26%,
mainly because the investment dividend received from joint venture declined on a y-o-y basis;


29. Cash received with other investing activities: decreased 96.7471 million Yuan on a y-o-y basis with growth rate of -95.54%,
mainly because at same period last year, received a consideration for reorganization of Shyndec Pharmaceutical, while no such item
in the period;


30. Subtotal of cash in-flow from investing activities: decreased 150 million Yuan on a y-o-y basis with growth rate of -63.14%,
mainly because the investment dividend received from joint venture declined on a y-o-y basis; and at same period last year, received
a consideration for reorganization of Shyndec Pharmaceutical, while no such item in the period;


31. Net cash paid from disposal of subsidiaries and other business units: increased 5.328 million Yuan on a y-o-y basis, mainly due to
the investment amount for new company acquisition in the period, while no such item at same period last year;


32. Cash payments related to other investing activities: decreased 78.3182 million Yuan on a y-o-y basis with growth rate of -97.99%,
mainly because at same period last year, the entrusted loans of Sinopharm Zhijun (Suzhou) was paid while no such item in the
period;


33. Net cash flows from investing activities: decreased 84.2184 million Yuan on a y-o-y basis with growth rate of -102.33%, mainly
because the investment dividend received from joint venture declined on a y-o-y basis; and at same period last year, received a
consideration for reorganization of Shyndec Pharmaceutical, while no such item in the period;


34. Cash proceeds from investments by others: decreased 2744 million Yuan on a y-o-y basis with growth rate of -98.40%, mainly
because at same period last year, subsidiary Guoda Drugstore received a capital increased amount from strategy investor, while no
such item in the period;


35. Cash received from borrowings: decreased 32.9702 million Yuan on a y-o-y basis with growth rate of -66.38%, mainly because
the bank current loans in the period declined on a y-o-y basis;


36. Cash receipts related to other financing activities: decreased 107 million Yuan on a y-o-y basis with growth rate of -98.19%,
mainly because at same period last year, received a money order security while no such item in the period;



                                                                                                                                       10
37. Sub-total of cash inflows from financing activities: decreased 2884 million Yuan on a y-o-y basis with growth rate of -97.86%,
mainly because at same period last year, subsidiary Guoda Drugstore received a capital increased amount from strategy investor,
while no such item in the period;


38. Cash payments for distribution of dividends or profit and interest expenses: increased 174 million Yuan on a y-o-y basis with
growth rate of 62.86%, mainly because the interest of supply chain financing increased on a y-o-y basis in the period;


39. Cash payments related to other financing activities: increased 544 million Yuan on a y-o-y basis with growth rate of 896.87%,
mainly due to the implementation of new leasing standards in the period, the rents paid in the period are reckoned into cash paid with
other financing activity concerned, while no such item at same period lat year;


40. Sub-total of cash outflows from financing activities: increased 712 million Yuan on a y-o-y basis with growth rate of 170.65%,
mainly due to the implementation of new leasing standards in the period, the rents paid in the period are reckoned into cash paid with
other financing activity concerned and the interest of supply chain financing increased on a y-o-y basis in the period;


41. Net cash flows from financing activities: decreased 3596 million Yuan on a y-o-y basis with growth rate of -142.10%, mainly
because at same period last year, subsidiary Guoda Drugstore received a capital increased amount from strategy investor, while no
such item in the period;


42. Eefect of foreign exchange rate changes on cash and cash equivalents: increased 138,500 Yuan on a y-o-y basis with growth rate
of 44.04%, mainly due to the impact of exchange rate changes;


43. Net increase incash and cash equivalents: decreased 3171 million Yuan on a y-o-y basis with growth rate of -105.28%, mainly
because at same period last year, subsidiary Guoda Drugstore received a capital increased amount from strategy investor, while no
such item in the period;


44. Cash and cash equivalents at beginning of the year: increased 3959 million Yuan on a y-o-y basis with growth rate of 107.76%,
mainly because at second half of last year, subsidiary Guoda Drugstore received a capital increased amount from strategy investor,
while no such item at period-begin of last year.




II. Progress and influence of the main events as well as solution analysis specification

□ Applicable √ Not applicable
Progress of shares buy-back
□Applicable   √Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□Applicable   √Not applicable




                                                                                                                                     11
III. 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

There are no 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.


IV. Particular about security investment

□ Applicable    √ Not applicable
The Company had no security investment in Period.


V. Trust financing

□ Applicable √ Not applicable
The Company had no trust financing in Period.


VI. Particulars about derivatives investment

□ Applicable    √ Not applicable
The Company had no derivatives investment in Period.


VII. Registration form of receiving research, communication and interview in the report
period

□Applicable    √ Not applicable

The Company has no research, communication and interview accepted in the Period.


VIII. Guarantee outside against the regulation

□Applicable √Not applicable

The Company had no guarantee outside against the regulation in the reporting period.


IX. Non-operational fund occupation from controlling shareholders and its related party

□ Applicable √ Not applicable
The Company had no non-operational fund occupation from controlling shareholders and its related party.




                                                                                                                              12
                                       Section IV. Financial Statement

I. Financial statement

1. Consolidate balance sheet

Prepared by China National Accord Medicines Corporation Ltd.
                                                         2019-09-30
                                                                                                        In RMB

                    Item                               2019-9-30                    2018-12-31

Current assets:

     Monetary funds                                             7,810,810,868.51             8,089,781,304.56

     Settlement provisions

     Capital lent

     Tradable financial assets

     Financial assets measured by fair
value and with variation reckoned into
current gains/losses

     Derivative financial assets

     Note receivable                                               585,211,751.81            1,357,311,929.63

     Account receivable                                        13,181,036,029.36             9,336,861,647.92

     Receivable financing                                          400,387,183.26

     Advances to suppliers                                         424,448,767.10                583,484,515.95

     Insurance receivable

     Reinsurance receivables

     Contract reserve of reinsurance
receivable

     Other receivables                                             522,497,740.14                643,493,359.32

         Including: Interest receivable                             14,401,063.47                  8,223,327.64

                    Dividend receivable

     Buying back the sale of financial
assets

     Inventories                                                5,274,930,261.55             4,389,335,942.19

     Contractual assets

     Assets held for sale



                                                                                                             13
       Non-current asset due within one
year

       Other current assets                    69,262,261.99       95,347,629.18

Total current assets                        28,268,584,863.72   24,495,616,328.75

Non-current assets:

       Loans and payments on behalf

       Debt investment

       Finance asset available for sales

       Other debt investment

       Held-to-maturity investment

       Long-term account receivable

       Long-term equity investment           2,107,690,039.44    1,880,393,786.10

       Other equity instruments
                                               13,685,760.00       13,685,760.00
investment

       Other non-current financial assets     140,000,000.00      140,000,000.00

       Investment properties                  139,672,194.89      144,894,495.97

       Fixed assets                           583,995,191.53      607,933,827.67

       Construction in progress                35,681,041.39       36,412,614.61

       Productive biological asset

       Oil and gas asset

       Right-of-use assets                   1,860,064,348.67

       Intangible assets                      314,251,903.10      319,207,126.15

       Expense on Research and
Development

       Goodwill                               871,041,800.60      833,547,800.60

       Long-term prepaid expenses             330,156,094.79      311,328,706.46

       Deferred tax assets                     78,340,768.87       74,914,209.95

       Other non-current asset                 73,829,180.67       72,365,863.71

Total non-current asset                      6,548,408,323.95    4,434,684,191.22

Total assets                                34,816,993,187.67   28,930,300,519.97

Current liabilities:

       Short-term borrowings                 2,417,214,478.23    2,597,652,702.43

       Loan from central bank

       Capital borrowed

       Transactional financial liability


                                                                               14
     Financial liability measured by fair
value and with variation reckoned into
current gains/losses

     Derivative financial liability

     Note payable                            4,087,524,569.31    3,416,755,681.80

     Account payable                         9,146,870,315.29    6,468,535,961.17

     Accounts received in advance

     Contractual liability                    226,493,600.53      255,590,612.37

     Selling financial asset of
repurchase

     Absorbing deposit and interbank
deposit

     Security trading of agency

     Security sales of agency

     Employee benefits payable                208,422,163.84      231,866,407.40

     Taxes payable                            240,761,116.26      241,980,412.72

     Other account payable                   1,639,777,109.48    1,539,436,971.93

          Incl: Interest payable               23,295,353.88       21,906,660.63

                     Dividend payable           11,095,744.80        6,389,320.96

     Commission charge and
commission payable

     Reinsurance payable

     Liability held for sale

     Non-current liabilities due within
                                              538,837,869.81         5,861,324.37
one year

     Other current liabilities                    623,159.83          292,465.75

Total current liabilities                   18,506,524,382.58   14,757,972,539.94

Non-current liabilities:

     Insurance contract reserve

     Long-term borrowings                                          31,600,000.00

     Bonds payable

          Including: Preferred stock

                     Perpetual capital
securities

     Lease liability                         1,165,308,548.15

     Long-term payable                            800,000.00         4,563,978.52


                                                                               15
     Long-term employee benefits
                                                               1,915,000.00                  2,050,000.00
payable

     Accrual liability

     Deferred income                                          90,111,450.25                 91,491,170.40

     Deferred tax liabilities                                 66,067,559.30                 67,605,161.88

     Other non-current liabilities                            68,388,290.57                 69,241,176.18

Total non-current liabilities                            1,392,590,848.27                  266,551,486.98

Total liabilities                                       19,899,115,230.85             15,024,524,026.92

Owner’s equity:

     Share capital                                           428,126,983.00                428,126,983.00

     Other equity instrument

        Including: Preferred stock

                     Perpetual capital
securities

     Capital surplus                                     4,363,409,728.51              4,320,984,981.51

     Less: Inventory shares

     Other comprehensive income

     Reasonable reserve

     Surplus reserve                                         214,063,491.50                214,063,491.50

     Provision of general risk

     Retained earnings                                   7,446,150,420.99              6,655,257,147.27

Shareholders’ equity attributable to
                                                        12,451,750,624.00             11,618,432,603.28
shareholders of the parent

     Non-controlling interests                           2,466,127,332.82              2,287,343,889.77

Total shareholders’ equity                             14,917,877,956.82             13,905,776,493.05

Total liabilities and shareholders’ equity             34,816,993,187.67             28,930,300,519.97
Legal representative: Lin Zhaoxiong
Person in charge of accounting works: Wei Pingxiao
Person in charge of accounting institution: Wang Ying

2. Balance Sheet of Parent Company

                                                                                                  In RMB

                    Item                         2019-9-30                    2018-12-31

Current assets:

     Cash and bank balances                              2,544,212,671.60              1,817,654,598.01

     Tradable financial assets


                                                                                                       16
     Financial assets measured by fair
value and with variation reckoned into
current gains/losses

     Derivative financial assets

     Note receivable                         33,503,980.32      63,870,980.39

     Account receivable                     759,614,729.17     631,236,593.94

     Receivable financing                    16,673,997.31

     Advances to suppliers                    3,026,025.81        4,760,182.00

     Other receivable                      1,866,735,563.06   1,541,980,883.50

       Including: Interest receivable        16,497,156.40        7,550,877.07

                    Dividend receivable

     Inventories                            211,858,298.59     158,166,185.65

     Contractual assets

     Assets held for sale

     Non-current assets maturing within
one year

     Other current assets                        39,482.38          39,482.38

Total current assets                       5,435,664,748.24   4,217,708,905.87

Non-current assets:

     Debt investment

     Available-for-sale financial assets

     Other debt investment

     Held-to-maturity investments

     Long-term receivables

     Long-term equity investments          7,693,092,094.23   7,432,906,692.24

     Investment in other equity
instrument

     Other non-current financial assets     140,000,000.00     140,000,000.00

     Investment properties                    1,560,072.33        1,955,854.46

     Fixed assets                            15,474,034.96      21,362,422.03

     Construction in progress

     Productive biological assets

     Oil and natural gas assets

     Right-of-use assets                      6,500,265.79

     Intangible assets                        2,783,945.44        2,452,222.51



                                                                            17
     Research and development costs

     Goodwill

     Long-term deferred expenses                 6,527,719.68        7,481,809.53

     Deferred income tax assets

     Other non-current assets                    7,000,000.00        7,000,000.00

Total non-current assets                     7,872,938,132.43    7,613,159,000.77

Total assets                                13,308,602,880.67   11,830,867,906.64

Current liabilities:

     Short-term borrowings                    280,000,000.00      539,000,000.00

     Transactional financial liability

     Financial liability measured by fair
value and with variation reckoned into
current gains/losses

     Derivative financial liability

     Notes payable                            390,519,916.75      252,317,800.78

     Account payable                          630,198,511.72      442,049,241.22

     Accounts received in advance

     Contractual liability                       1,694,562.86        4,182,083.40

     Employee benefits payable                 37,876,995.85       36,233,563.12

     Taxes payable                               9,336,735.58      13,426,601.90

     Other payable                           1,894,492,989.75    1,481,817,856.56

        Incl: Interest payable                   8,063,589.67        1,354,592.35

                       Dividends payable

     Liability held for sale

     Non-current liabilities due within
                                               32,573,100.20
one year

     Other current liabilities                    292,740.68          226,427.99

Total current liabilities                    3,276,985,553.39    2,769,253,574.97

Non-current liabilities:

     Long-term borrowings                                          31,600,000.00

     Bonds payable

        Including: preferred stock

                       Perpetual capital
securities

     Lease liabilities                           5,715,312.04



                                                                               18
     Long-term payables                                           800,000.00                     800,000.00

     Long-term employee benefits
                                                                  102,000.00                      118,000.00
payable

     Accrued liabilities

     Deferred income                                             1,388,958.78                   1,687,899.50

     Deferred tax liabilities                                    1,644,875.80                   2,298,426.39

     Other non-current liabilities

Total non-current liabilities                                    9,651,146.62                  36,504,325.89

Total liabilities                                         3,286,636,700.01                2,805,757,900.86

Owners’ equity:

     Share capital                                          428,126,983.00                    428,126,983.00

     Other equity instrument

        Including: preferred stock

                     Perpetual capital
securities

     Capital surplus                                      4,468,787,524.26                4,426,362,777.26

     Less: Inventory shares

     Other comprehensive income

     Special reserve

     Surplus reserve                                        214,063,491.50                    214,063,491.50

     Retained earnings                                    4,910,988,181.90                3,956,556,754.02

Total shareholders’ equity                              10,021,966,180.66                9,025,110,005.78

Total liabilities and shareholders’ equity              13,308,602,880.67               11,830,867,906.64


3. Consolidated Profit Statement (the period)

                                                                                                     In RMB

                     Item                       Current Period                  Last Period

I. Total operating revenue                               13,647,793,431.64              10,987,540,368.77

     Including: Operating revenue                        13,647,793,431.64              10,987,540,368.77

              Interest revenue

              Insurance gained

              Commission charge and
commission revenue

II. Total operating costs                                13,305,315,433.53              10,672,195,431.17

     Including: Operating costs                          12,253,508,326.76                9,749,853,630.20


                                                                                                          19
               Interest expense

               Commission charge and
commission expense

      Cash surrender value

      Net amount of expense of
compensation

      Net amount of withdrawal of
insurance contract reserve

      Bonus expense of guarantee slip

               Reinsurance expense

               Tax and surcharges                   36,513,174.49    30,175,966.21

               Selling expense                     763,231,928.31   682,736,449.56

               Administrative expense              208,311,402.38   188,693,332.32

               R&D expense

               Finance costs                        43,750,601.59    20,736,052.88

                     Incl: Interest cost            86,528,994.84    45,676,535.07

                                 Interest income    42,778,570.08    26,253,068.71

      Add: other income                             12,116,753.12     1,815,373.95

             Investment income (Loss is
                                                    86,069,936.49    78,983,284.46
listed with “-”)

             Incl: Investment income from
                                                    86,019,936.49    78,933,284.46
associates

                     The termination of income
recognition for financial assets measured
by amortized cost(Loss is listed with “-”)

             Exchange income (Loss is
listed with “-”)

             Net exposure hedging income
(Loss is listed with “-”)

             Income from change of fair
value (Loss is listed with “-”)

             Impairment losses on financial
                                                    -3,211,918.65      -547,491.37
assets (Loss is listed with “-”)
             Impairment losses (Loss is
                                                      -705,879.81      392,308.58
listed with “-”)

             Gain on disposal of assets
                                                      613,909.71         76,479.50
(Loss is listed with “-”)

III. Operating profit (Loss is listed with         437,360,798.97   396,064,892.72


                                                                                20
“-”)

         Add: Non-operating income                 3,202,332.16     1,553,611.12

         Less: Non-operating expense                638,789.06       374,027.37

IV. Total profit (Loss is listed with “-”)     439,924,342.07   397,244,476.47

         Less: Income taxes                       80,632,027.90    76,038,019.79

V. Net profit (Net loss is listed with “-”)    359,292,314.17   321,206,456.68

   (i) Classify by business continuity

         1. Net Profit from continuing
                                                 359,292,314.17   321,206,456.68
operations (net loss listed with ‘-”)

         2.termination of net profit (net loss
listed with ‘-”)

   (ii) Attributable to

         1. Owners of the parent                 311,310,706.52   285,244,535.54

         2. Non-controlling interests             47,981,607.65    35,961,921.14

VI. Net after-tax of other comprehensive
income

   Net after-tax of other comprehensive
income attributable to owners of parent
company

         (I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss

                1.Changes of the defined
benefit plans that re-measured

                2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss

                3.Change of fair value of
investment in other equity instrument

                4.Fair value change of
enterprise's credit risk

                5. Other

          (ii) Other comprehensive income
items which will be reclassified
subsequently to profit or loss

                1.Other comprehensive
income under equity method that can
transfer to gain/loss


                                                                              21
               2.Change of fair value of
other debt investment

               3.gain/loss of fair value
changes for available-for-sale financial
assets

               4.Amount of financial assets
re-classify to other comprehensive
income

               5.Gain/loss of
held-to-maturity investments that
re-classify to available-for-sale financial
asset

               6.Credit impairment
provision for other debt investment

               7.Cash flow hedging reserve

               8.Translation differences
arising on translation of foreign currency
financial statements

               9.Other

  Net after-tax of other comprehensive
income attributable to minority
shareholders

VII. Total comprehensive income                            359,292,314.17                        321,206,456.68

        Total comprehensive income for the
yearattributable to shareholders of the                    311,310,706.52                        285,244,535.54
parent

        Total comprehensive income for the
year attributable tonon-controlling                         47,981,607.65                         35,961,921.14
interests

VIII. Earnings per share:

        (i) Basic earnings per share                               0.735                                 0.666

        (ii) Diluted earnings per share                            0.735                                 0.666

As for the business merger under the same control in the Period, 0 Yuan net profit realized before merger by the
combined party, the net profit for combined party in last period was 0 Yuan.
Legal representative: Lin Zhaoxiong
Person in charge of accounting works: Wei Pingxiao
Person in charge of accounting institution: Wang Ying

4. Profit Statement of Parent Company (the period)

                                                                                                        In RMB

                                                                                                             22
                        Item                    Current Period                   Last Period

I. Operating revenue                                       1,112,624,846.96                    899,859,002.45

         Less: Operating costs                             1,064,701,021.03                    856,296,603.88

             Tax and surcharge                                    1,964,184.59                   1,445,734.44

             Selling expenses                                    17,984,619.36                  16,953,141.79

             Administrative expenses                             24,299,300.83                  16,785,749.55

             R&D expenses

             Financial costs                                 -11,487,202.76                    -10,270,272.65

                     Incl: Interest expense                      15,442,321.41                  10,951,050.33

                     Incl: Interest income                       27,695,670.05                  21,345,942.02

         Add: other income                                         219,828.06                     121,990.82

             Investment income (Loss is
                                                             473,512,554.91                     84,991,405.06
listed with “-”)

             Incl: Investment income from
                                                                 91,259,842.03                  84,991,405.06
associates

                     The termination of
income recognition for financial assets
measured by amortized cost (Loss is
listed with “-”)

             Net exposure hedging income
(Loss is listed with “-”)

             Changing income of fair
value (Loss is listed with “-”)

             Impairment losses on
                                                                   -161,522.25
financial assets (Loss is listed with “-”)
             Impairment loss (Loss is
                                                                   -234,019.78                    152,059.06
listed with “-”)

             Gain on disposal of assets
                                                                   181,433.34                       11,116.50
(Loss is listed with “-”)

II. Operating profits (Loss is listed with
                                                             488,681,198.19                    103,924,616.88
“-”)

         Add: Non-operating income                                     373.35                            3.98

         Less: Non-operating expense

III. Total Profit (Loss is listed with “-”)                488,681,571.54                    103,924,620.86

         Less: Income taxes                                       3,675,740.93                   4,806,491.84

IV. Net profit (Net loss is listed with
                                                             485,005,830.61                     99,118,129.02
“-”)




                                                                                                           23
        (i) Net Profit from continuing
                                                  485,005,830.61   99,118,129.02
        operations (net loss listed with ‘-”)

        (ii) termination of net profit (net
loss listed with ‘-”)

V. Net after-tax of other comprehensive
income

        (I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss

                1.Changes of the defined
benefit plans that re-measured

                2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss

                3.Change of fair value of
investment in other equity instrument

                4.Fair value change of
enterprise's credit risk

                5. Other

         (II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss

                1.Other comprehensive
income under equity method that can
transfer to gain/loss

                2.Change of fair value of
other debt investment

                3.gain/loss of fair value
changes for available-for-sale financial
assets

                4.Amount of financial
assets re-classify to other
comprehensive income

                5.Gain/loss of
held-to-maturity investments that
re-classify to available-for-sale financial
asset

                6.Credit impairment
provision for other debt investment



                                                                              24
             7.Cash flow hedging
reserve

             8.Translation differences
arising on translation of foreign
currency financial statements

             9.Other

VI. Total comprehensive income                            485,005,830.61                      99,118,129.02

VII. Earnings per share:

      (i) Basic earnings per share

     (ii) Diluted earnings per share


5. Consolidated Profit Statement (form the year-begin to the period-end)

                                                                                                    In RMB

                   Item                       Current Period                   Last Period

I. Total operating revenue                             38,875,940,809.07               31,766,707,068.44

     Including: Operating revenue                      38,875,940,809.07               31,766,707,068.44

             Interest revenue

             Insurance gained

             Commission charge and
commission revenue

II. Total operating cost                               37,747,619,061.94               30,779,410,046.43

     Including: Operating costs                        34,669,028,279.63                28,117,497,354.04

             Interest expense

             Commission charge and
commission expense

     Cash surrender value

     Net amount of expense of
compensation

     Net amount of withdrawal of
insurance contract reserve

     Bonus expense of guarantee slip

             Reinsurance expense

             Tax and surcharges                                98,652,400.93                  86,796,493.46

             Salling expenses                            2,246,564,429.04                1,956,325,205.63

             Administrative expenses                      585,528,096.51                     540,513,396.10

             R&D expense


                                                                                                         25
                Finance costs                       147,845,855.83      78,277,597.20

                     Incl: Interest cost            256,058,467.21     129,032,902.25

                                 Interest income    103,408,606.99      49,335,302.27

         Add: other incomes                          27,107,672.14      12,404,586.52

              Investment income (Loss is
                                                    255,212,226.48     241,677,055.81
listed with “-”)

              Incl: Investment income from
                                                    255,162,226.48     241,595,555.81
associates
                     The termination of income
recognition for financial assets measured
by amortized cost(Loss is listed with “-”)

              Exchange income (Loss is
listed with “-”)

              Net exposure hedging income
(Loss is listed with “-”)

              Income from change of fair
value (Loss is listed with “-”)

              Impairment losses on financial
                                                     -14,646,019.78        479,210.87
assets (Loss is listed with “-”)
              Impairment losses (Loss is
                                                       -831,434.15         -116,540.68
listed with “-”)

              Gain on disposal of assets
                                                        584,184.27        4,357,644.11
(Loss is listed with “-”)

III. Operating profit (Loss is listed with
                                                   1,395,748,376.09   1,246,098,978.64
“-”)

         Add: Non-operating income                    6,869,502.41       7,052,562.23

         Less: Non-operating expense                  2,357,054.62       2,171,320.17

IV. Total profit (Loss is listed with “-”)       1,400,260,823.88   1,250,980,220.70

         Less: Income taxes                         272,875,954.40     240,524,754.11

V. Net profit (Net loss is listed with “-”)      1,127,384,869.48   1,010,455,466.59

   (i) Classify by business continuity

         1. Net Profit from continuing
                                                   1,127,384,869.48   1,010,455,466.59
operations (net loss listed with ‘-”)

         2.termination of net profit (net loss
listed with ‘-”)

   (ii) Classify by ownership

         1. Owners of the parent                    962,144,066.92     926,971,570.47

         2. Non-controlling interests               165,240,802.56      83,483,896.12


                                                                                    26
VI. Net after-tax of other comprehensive
income

  Net after-tax of other comprehensive
income attributable to owners of parent
company

        (I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss

              1.Changes of the defined
benefit plans that re-measured

              2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss

              3.Change of fair value of
investment in other equity instrument

              4.Fair value change of
enterprise's credit risk

              5. Other

         (ii) Other comprehensive income
items which will be reclassified
subsequently to profit or loss

              1.Other comprehensive
income under equity method that can
transfer to gain/loss

              2.Change of fair value of
other debt investment

              3.gain/loss of fair value
changes for available-for-sale financial
assets

              4.Amount of financial assets
re-classify to other comprehensive
income

              5.Gain/loss of
held-to-maturity investments that
re-classify to available-for-sale financial
asset

              6.Credit impairment
provision for other debt investment

              7.Cash flow hedging reserve



                                              27
               8.Translation differences
arising on translation of foreign currency
financial statements

               9.Other

   Net after-tax of other comprehensive
income attributable to minority
shareholders

VII. Total comprehensive income                            1,127,384,869.48                     1,010,455,466.59

      Total comprehensive income for the
yearattributable to shareholders of the                     962,144,066.92                          926,971,570.47
parent

      Total comprehensive income for the
year attributable tonon-controlling                         165,240,802.56                           83,483,896.12
interests

VIII. Earnings per share:

      (i) Basic earnings per share                                      2.247                               2.165

      (ii) Diluted earnings per share                                   2.247                               2.165

As for the business merger under the same control in the Period, 0 Yuan net profit realized before merger by the
combined party, the net profit for combined party in last period was 0 Yuan.

6. Profit Statement of Parent Company (form the year-begin to the period-end)

                                                                                                           In RMB

                        Item                   Current Period                         Last Period

I. Operating revenue                                      3,120,629,410.26                      2,587,480,358.28

      Less: Operating costs                               2,985,973,415.79                      2,471,014,077.79

             Taxes and surcharge                                 4,483,432.58                         3,462,103.37

             Selling expenses                                   49,036,664.17                        42,847,937.24

             Administrative expenses                            62,356,107.14                        50,464,856.30

             R&D expenses

             Finance costs                                  -39,885,446.76                          -29,640,152.73

                     Incl: Interest expense                     38,713,629.13                        31,721,163.76

                     Incl: Interest income                      80,175,392.47                        62,271,142.76

      Add: other income                                           552,592.19                          1,421,335.96

             Investment income (Loss is
                                                          1,081,800,975.38                          619,832,149.52
listed with “-”)

             Incl: Investment income from
                                                            272,540,375.14                          258,317,695.20
associates


                                                                                                                28
                     The termination of
income recognition for financial assets
measured by amortized cost (Loss is
listed with “-”)

              Net exposure hedging income
(Loss is listed with “-”)

              Changing income of fair
value (Loss is listed with “-”)

              Impairment losses on
                                                      -2,527,287.33         7,411.02
financial assets (Loss is listed with “-”)
              Impairment loss (Loss is
                                                       -336,132.62       -478,894.27
listed with “-”)

              Gain on disposal of assets
                                                        155,358.82         11,116.50
(Loss is listed with “-”)

II. Operating profit (Loss is listed with
                                                   1,138,310,743.78   670,124,655.04
“-”)

         Add: Non-operating income                       46,442.75            37.06

         Less: Non-operating expenses                                    127,688.63

III. Total Profit (Loss is listed with “-”)      1,138,357,186.53   669,997,003.47

         Less: Income taxes                          12,674,965.45     11,099,365.68

IV. Net profit (Net loss is listed with
                                                   1,125,682,221.08   658,897,637.79
“-”)

         (i) Net Profit from continuing
                                                   1,125,682,221.08   658,897,637.79
         operations (net loss listed with ‘-”)

         (ii) termination of net profit (net
loss listed with ‘-”)

V. Net after-tax of other comprehensive
income

         (I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss

                 1.Changes of the defined
benefit plans that re-measured

                 2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss

                 3.Change of fair value of
investment in other equity instrument

                 4.Fair value change of



                                                                                  29
enterprise's credit risk

               5. Other

         (II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss

               1.Other comprehensive
income under equity method that can
transfer to gain/loss

               2.Change of fair value of
other debt investment

               3.gain/loss of fair value
changes for available-for-sale financial
assets

               4.Amount of financial
assets re-classify to other
comprehensive income

               5.Gain/loss of
held-to-maturity investments that
re-classify to available-for-sale financial
asset

               6.Credit impairment
provision for other debt investment

               7.Cash flow hedging
reserve

               8.Translation differences
arising on translation of foreign
currency financial statements

               9.Other

VI. Total comprehensive income                           1,125,682,221.08                   658,897,637.79

VII. Earnings per share:

         (i) Basic earnings per share

        (ii) Diluted earnings per share


7. Consolidated Cash Flow Statement (form the year-begin to the period-end)

                                                                                                   In RMB

                     Item                     Current Period                  Last Period

I. Cash flows arising from operating
activities:



                                                                                                        30
       Cash received from sales of good
                                             39,464,106,244.18   33,576,126,717.79
or rendering of services

       Net increase of customer deposit
and interbank deposit

        Net increase of loan from central
bank

       Net increase of capital borrowed
from other financial institution

       Cash received from original
insurance contract fee

       Net cash received from reinsurance
business

       Net increase of insured savings
and investment

       Cash received from interest,
commission charge and commission

       Net increase of capital borrowed

       Net increase of returned business
capital

       Net cash received by agents in sale
and purchase of securities

       Tax refunds                                3,508,074.72        1,714,760.21

       Cash receipts related to other
                                               497,412,494.23      503,409,429.80
operating activities

Sub-total of cash inflows from
                                             39,965,026,813.13   34,081,250,907.80
operating activities

       Cash paid for goods and services      35,594,093,946.44   30,058,268,141.08

       Net increase of customer loans and
advances

       Net increase of deposits in central
bank and interbank

       Cash paid for original insurance
contract compensation

       Net increase of capital lent

       Cash paid for interest, commission
charge and commission

        Cash paid for bonus of guarantee
slip



                                                                                31
     Cash paid to and on behalf of
                                            1,592,033,194.68    1,392,220,211.12
employees

     Cash paid for all types of taxes        941,789,797.45      818,864,295.31

     Cash payments related to other
                                             764,147,713.34     1,247,906,964.93
operating activities

Sub-total of cash outflows from
                                           38,892,064,651.91   33,517,259,612.44
operating activities

Net cash flows from operating activities    1,072,962,161.22     563,991,295.36

II. Cash flows arising from investing
activities:

     Cash received from recovering
investment

     Cash received from returns on
                                              78,242,963.78      130,963,345.37
investments

     Net cash received from disposal of
fixed, intangible assets and other              4,967,658.92        5,751,674.16
long-term assets

     Net cash received from disposal of
subsidiaries and other units

     Cash receipts related to other
                                                4,514,498.90     101,261,607.73
investing activities

Sub-total of cash inflows from investing
                                              87,725,121.60      237,976,627.26
activities

     Cash paid for acquisition of fixed
assets, intangible assetsand other           162,770,914.81      150,353,192.93
long-term assets

     Cash paid for acquisition of
                                              84,539,317.61       90,000,000.00
investments

     Net increase of mortgaged loans

     Net cash paid from disposal of
                                                5,328,000.00
subsidiaries and otherbusiness units

     Cash payments related to other
                                                1,603,306.28      79,921,476.82
investing activities

Sub-total of cash outflows from
                                             254,241,538.70      320,274,669.75
investing activities activities

Net cash flows arising from investing
                                             -166,516,417.10      -82,298,042.49
activities

III. Cash flows arising from financing



                                                                              32
activities

       Cash proceeds from investments
                                                             44,548,000.00                   2,788,851,200.00
by others

        Incl: Cash proceeds from
subsidiary investments by                                    44,548,000.00                   2,788,851,200.00
non-controlling shareholders

       Cash received from borrowings                         16,700,000.00                        49,670,200.30

       Cash receipts related to other
                                                              1,967,629.61                       108,949,307.54
financing activities

Subtotal of cash inflow from financing
                                                             63,215,629.61                   2,947,470,707.84
activities

       Cash repayments for debts                             73,307,142.79                        79,670,200.30

       Cash payments for distribution of
                                                         450,504,620.79                          276,628,059.98
dividends or profit andinterest expenses

       Incl: Profit and dividends paid to
non-controllingshareholders of                               28,493,123.11                        56,858,945.30
subsidiaries

       Cash payments related to other
                                                         604,680,365.03                           60,658,096.82
financing activities s

Subtotal of cash outflow from financing
                                                       1,128,492,128.61                          416,956,357.10
activities

Net cash flows from financing activities              -1,065,276,499.00                      2,530,514,350.74

IV.Effect of foreign exchange rate
changes on cash and cash equivalents
                                                               -175,994.42                          -314,517.97
Influence on cash and cash equivalents
due to fluctuation in exchange rate

V. Net increasein cash and cash
                                                        -159,006,749.30                      3,011,893,085.64
equivalents

       Add: Cash and cash equivalents at
                                                       7,632,117,020.77                      3,673,498,691.48
beginning of the year

VI. Cash and cash equivalents at end of
                                                       7,473,110,271.47                      6,685,391,777.12
year


8. Cash Flow Statement of Parent Company (form the year-begin to the period-end)

                                                                                                        In RMB

                    Item                    Current Period                         Last Period

I. Cash flows arising from operating
activities:



                                                                                                             33
     Cash received from sales of good
                                            3,217,890,947.38   2,681,236,630.70
or rendering of services

     Write-back of tax received

     Cash receipts related to other
                                              32,674,054.58      91,958,196.80
operating activities

Sub-total of cash inflows from
                                            3,250,565,001.96   2,773,194,827.50
operating activities

     Cash paid for goods and services       3,191,926,190.64   2,559,377,589.52

     Cash paid to and on behalf of
                                              73,601,798.69      61,913,310.95
employees

     Cash paid for all types of taxes         43,156,828.71      29,801,808.96

     Cash payments related to other
                                              24,724,274.57      45,140,599.54
operating activities

Subtotal of cash outflow from operating
                                            3,333,409,092.61   2,696,233,308.97
activities

Net cash flows arising from operating
                                              -82,844,090.65     76,961,518.53
activities

II. Cash flows arising from investing
activities:

     Cash received from recovering
investment

     Cash received from returns of
                                             619,976,538.54     255,904,643.39
investments

     Net cash received from disposal of
fixed assets, intangible assets and other      3,961,383.00          35,200.00
long-term assets

     Net cash received from disposal of
subsidiaries and other units

     Cash receipts related to other
                                            1,482,390,000.00   1,218,035,586.01
investing activities

Subtotal of cash inflow from investing
                                            2,106,327,921.54   1,473,975,429.40
activities

     Cash paid for acquisition of fixed
assets, intangible assets andother             6,777,035.03        8,607,026.77
long-term assets

     Cash paid for investment                 19,998,000.00      90,000,000.00

     Net cash received from
subsidiaries and other units obtained



                                                                             34
       Cash payments related to other
                                                      1,812,850,181.28                   1,267,321,606.82
investing activities

Subtotal of cash outflow from investing
                                                      1,839,625,216.31                   1,365,928,633.59
activities

Net cash flows from investing activities
                                                       266,702,705.23                      108,046,795.81
activities

III. Cash flows arising from financing
activities:

       Cash received from absorbing
investment

       Cash received from borrowings                    10,000,000.00                       10,000,000.00

       Cash receipts related to other
                                                     18,437,509,464.22                  12,559,913,378.52
financing activities

Subtotal of cash inflow from financing
                                                     18,447,509,464.22                  12,569,913,378.52
activities

       Cash repayments for debts                        10,000,000.00                       10,000,000.00

       Cash payments for distribution of
                                                       191,576,803.94                      153,116,428.79
dividends, profit or interestexpenses

       Cash payments related to other
                                                     17,703,057,206.85                  12,723,602,657.57
financing activities

Subtotal of cash outflow from financing
                                                     17,904,634,010.79                  12,886,719,086.36
activities

Net cash flows from financing activities               542,875,453.43                     -316,805,707.84

IV. .Effect of foreign exchange rate
                                                           -175,994.42                        -314,517.97
changes on cash and cash equivalents

V. Net increase in cash and cash
                                                       726,558,073.59                     -132,111,911.47
equivalents

       Add: Cash and cash equivalents at
                                                      1,817,654,598.01                   1,776,696,342.87
beginning of the year

VI. Cash and cash equivalents at end of
                                                      2,544,212,671.60                   1,644,584,431.40
year


II. Financial statement adjustment

1. Relevant items of the financial statement at beginning of the year when implementing the new financial
instrument standards, new revenue standards or new leasing standards since 2019


√ Applicable □ Not applicable

Consolidated Balance Sheet


                                                                                                       35
                                                                                            In RMB

              Item               2018-12-31             2019-01-01             Adjustment

Current assets:

     Monetary funds                  8,089,781,304.56       8,089,781,304.56

     Settlement provisions

     Capital lent

     Tradable financial assets

     Financial assets
measured by fair value and
with variation reckoned into
current gains/losses

     Derivative financial
assets

     Note receivable                 1,357,311,929.63        789,536,654.23         -567,775,275.40

     Account receivable              9,336,861,647.92       9,336,861,647.92

     Receivable financing                                    567,775,275.40         567,775,275.40

     Advances to suppliers            583,484,515.95         419,443,944.83         -164,040,571.12

     Insurance receivable

     Reinsurance receivables

     Contract reserve of
reinsurance receivable

     Other receivables                643,493,359.32         643,493,359.32

         Including: Interest
                                         8,223,327.64           8,223,327.64
receivable

                     Dividend
receivable

     Buying back the sale of
financial assets

     Inventories                     4,389,335,942.19       4,389,335,942.19

     Contractual assets

     Assets held for sale

     Non-current asset due
within one year

     Other current assets              95,347,629.18          95,347,629.18

Total current assets                24,495,616,328.75      24,331,575,757.63        -164,040,571.12

Non-current assets:



                                                                                                 36
        Loans and payments on
behalf

        Debt investment

        Finance asset available
for sales

        Other debt investment

        Held-to-maturity
investment

        Long-term account
receivable

        Long-term equity
                                    1,880,393,786.10    1,880,393,786.10
investment

        Other equity instruments
                                      13,685,760.00       13,685,760.00
investment

        Other non-current
                                     140,000,000.00      140,000,000.00
financial assets

        Investment properties        144,894,495.97      144,894,495.97

        Fixed assets                 607,933,827.67      594,067,973.91      -13,865,853.76

        Construction in progress      36,412,614.61       36,412,614.61

        Productive biological
asset

        Oil and gas asset

        Right-of-use assets                             1,782,725,159.78   1,782,725,159.78

        Intangible assets            319,207,126.15      318,693,082.72        -514,043.43

        Expense on Research
and Development

        Goodwill                     833,547,800.60      833,547,800.60

        Long-term prepaid
                                     311,328,706.46      311,328,706.46
expenses

        Deferred tax assets           74,914,209.95       74,914,209.95

        Other non-current asset       72,365,863.71        58,168,919.11     -14,196,944.60

Total non-current asset             4,434,684,191.22    6,188,832,509.21   1,754,148,317.99

Total assets                       28,930,300,519.97   30,520,408,266.84   1,590,107,746.87

Current liabilities:

        Short-term borrowings       2,597,652,702.43    2,597,652,702.43

        Loan from central bank




                                                                                         37
     Capital borrowed

     Transactional financial
liability

     Financial liability
measured by fair value and
with variation reckoned into
current gains/losses

     Derivative financial
liability

     Note payable                    3,416,755,681.80    3,416,755,681.80

     Account payable                 6,468,535,961.17    6,468,535,961.17

     Accounts received in
advance

     Contractual liability            255,590,612.37      255,590,612.37

     Selling financial asset of
repurchase

     Absorbing deposit and
interbank deposit
    Security      trading      of
agency
     Security sales of agency

     Employee benefits
                                      231,866,407.40      231,866,407.40
payable

     Taxes payable                    241,980,412.72      241,980,412.72

     Other account payable           1,539,436,971.93    1,539,436,971.93

        Incl: Interest payable         21,906,660.63       21,906,660.63

                    Dividend
                                         6,389,320.96        6,389,320.96
payable

     Commission charge and
commission payable

     Reinsurance payable

     Liability held for sale

     Non-current liabilities
                                         5,861,324.37     495,132,751.96    489,271,427.59
due within one year

     Other current liabilities            292,465.75          292,465.75

Total current liabilities           14,757,972,539.94   15,247,243,967.53   489,271,427.59

Non-current liabilities:

  Insurance contract reserve


                                                                                        38
     Long-term borrowings           31,600,000.00       31,600,000.00

     Bonds payable

         Including: Preferred
stock

                     Perpetual
capital securities

     Lease liability                                  1,104,600,297.80   1,104,600,297.80

     Long-term payable                4,563,978.52         800,000.00       -3,763,978.52

     Long-term employee
                                      2,050,000.00        2,050,000.00
benefits payable

     Accrual liability

     Deferred income                91,491,170.40       91,491,170.40

     Deferred tax liabilities       67,605,161.88       67,605,161.88

     Other non-current
                                    69,241,176.18       69,241,176.18
liabilities

Total non-current liabilities      266,551,486.98     1,367,387,806.26   1,100,836,319.28

Total liabilities                15,024,524,026.92   16,614,631,773.79   1,590,107,746.87

Owner’s equity:

     Share capital                 428,126,983.00      428,126,983.00

     Other equity instrument

         Including: Preferred
stock

                     Perpetual
capital securities

     Capital surplus              4,320,984,981.51    4,320,984,981.51

     Less: Inventory shares

     Other comprehensive
income

     Reasonable reserve

     Surplus reserve               214,063,491.50      214,063,491.50

     Provision of general risk

     Retained earnings            6,655,257,147.27    6,655,257,147.27

Shareholders’ equity
attributable to shareholders     11,618,432,603.28   11,618,432,603.28
of the parent

     Non-controlling              2,287,343,889.77    2,287,343,889.77



                                                                                       39
interests

Total shareholders’ equity          13,905,776,493.05        13,905,776,493.05

Total liabilities and
                                     28,930,300,519.97        30,520,408,266.84         1,590,107,746.87
shareholders’ equity

Statement of adjustment
Balance Sheet of Parent Company
                                                                                                   In RMB

              Item                2018-12-31               2019-01-01               Adjustment

Current assets:

     Cash and bank balances           1,817,654,598.01         1,817,654,598.01

     Tradable financial assets

     Financial assets
measured by fair value and
with variation reckoned into
current gains/losses

     Derivative financial
assets

     Note receivable                    63,870,980.39            34,154,774.75            -29,716,205.64

     Account receivable                631,236,593.94           631,236,593.94

     Receivable financing                                        29,716,205.64            29,716,205.64

     Advances to suppliers                4,760,182.00             4,757,318.66                  -2,863.34

     Other receivable                 1,541,980,883.50         1,541,980,883.50

         Including: Interest
                                          7,550,877.07             7,550,877.07
receivable

                     Dividend
receivable

     Inventories                       158,166,185.65           158,166,185.65

     Contractual assets

     Assets held for sale

     Non-current assets
maturing within one year

     Other current assets                      39,482.38                39,482.38

Total current assets                  4,217,708,905.87         4,217,706,042.53                  -2,863.34

Non-current assets:

     Debt investment

     Available-for-sale
financial assets


                                                                                                        40
     Other debt investment

     Held-to-maturity
investments

     Long-term receivables

     Long-term equity
                                 7,432,906,692.24    7,432,906,692.24
investments

     Investment in other
equity instrument

     Other non-current
                                  140,000,000.00      140,000,000.00
financial assets

     Investment properties           1,955,854.46        1,955,854.46

     Fixed assets                  21,362,422.03       21,362,422.03

     Construction in progress

     Productive biological
assets

     Oil and natural gas
assets

     Right-of-use assets                                 6,827,171.38   6,827,171.38

     Intangible assets               2,452,222.51        2,452,222.51

     Research and
development costs

     Goodwill

     Long-term deferred
                                     7,481,809.53        7,481,809.53
expenses

     Deferred income tax
assets

     Other non-current assets        7,000,000.00        7,000,000.00

Total non-current assets         7,613,159,000.77    7,619,986,172.15   6,827,171.38

Total assets                    11,830,867,906.64   11,837,692,214.68   6,824,308.04

Current liabilities:

     Short-term borrowings        539,000,000.00      539,000,000.00

     Transactional financial
liability

     Financial liability
measured by fair value and
with variation reckoned into
current gains/losses



                                                                                  41
     Derivative financial
liability

     Notes payable                252,317,800.78     252,317,800.78

     Account payable              442,049,241.22     442,049,241.22

     Accounts received in
advance

     Contractual liability          4,182,083.40       4,182,083.40

     Employee benefits
                                   36,233,563.12      36,233,563.12
payable

     Taxes payable                 13,426,601.90      13,426,601.90

     Other payable               1,481,817,856.56   1,481,817,856.56

        Incl: Interest payable      1,354,592.35       1,354,592.35

                     Dividends
payable

     Liability held for sale

     Non-current liabilities
                                                         786,068.44     786,068.44
due within one year

     Other current liabilities        226,427.99         226,427.99

Total current liabilities        2,769,253,574.97   2,770,039,643.41    786,068.44

Non-current liabilities:

     Long-term borrowings          31,600,000.00      31,600,000.00

     Bonds payable

        Including: preferred
stock

                     Perpetual
capital securities

     Lease liabilities                                 6,038,239.60    6,038,239.60

     Long-term payables               800,000.00         800,000.00

     Long-term employee
                                      118,000.00         118,000.00
benefits payable

     Accrued liabilities

     Deferred income                1,687,899.50       1,687,899.50

     Deferred tax liabilities       2,298,426.39       2,298,426.39

     Other non-current
liabilities

Total non-current liabilities      36,504,325.89      42,542,565.49    6,038,239.60



                                                                                 42
Total liabilities                              2,805,757,900.86        2,812,582,208.90               6,824,308.04

Owners’ equity:

     Share capital                               428,126,983.00          428,126,983.00

     Other equity instrument

         Including: preferred
stock

                     Perpetual
capital securities

     Capital surplus                           4,426,362,777.26        4,426,362,777.26

     Less: Inventory shares

     Other comprehensive
income

     Special reserve

     Surplus reserve                             214,063,491.50          214,063,491.50

     Retained earnings                         3,956,556,754.02        3,956,556,754.02

Total shareholders’ equity                    9,025,110,005.78        9,025,110,005.78

Total liabilities and
                                              11,830,867,906.64       11,837,692,214.68               6,824,308.04
shareholders’ equity

Statement of adjustment


2. Explanation on comparative data in the early stage of retroactive adjustment while implemented the new
financial instrument standards or new leasing standards since 2019

□ Applicable √ Not applicable


III. Audit report

Whether the 3rd quarterly report has been audited or not
□Yes √ No
The 3rd quarterly report of the Company has not been audited.


                                                                  China National Accord Medicines Corporation Ltd.
                                                                              Legal representative: Lin Zhaoxiong
                                                                                                 24 October 2019




                                                                                                                43

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