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Pharmaron Beijing Co., Ltd Interim / Quarterly Report 2021

Apr 28, 2021

50881_rns_2021-04-28_3db08c1c-1759-438f-8dc4-17497fb5b62e.pdf

Interim / Quarterly Report

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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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Pharmaron Beijing Co., Ltd.[*] 康龍化成（北京）新藥技術股份有限公司

(A joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 3759)

2021 FIRST QUARTERLY REPORT

This announcement is made by Pharmaron Beijing Co., Ltd.[] (the “ Company ” and together with its subsidiaries, the “ Group* ”) pursuant to Rules 13.09 and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The following is the first quarterly report for 2021 of the Company. The financial data contained in this quarterly report is, except for section IV in Part 4 which has been prepared in accordance with the International Financial Reporting Standards issued by the International Accounting Standard Board (the “ IFRSs ”) or as otherwise indicated, prepared in accordance with the PRC Accounting Standards for Business Enterprises. The first quarterly report for 2021 of the Company has not been audited.

By order of the Board Pharmaron Beijing Co., Ltd.* 康龍化成（北京）新藥技術股份有限公司 Dr. Lou Boliang Chairman

Beijing, the PRC April 28, 2021

As at the date of this announcement, the Board of Directors comprises Dr. Lou Boliang, Mr. Lou Xiaoqiang and Ms. Zheng Bei as executive Directors; Mr. Chen Pingjin, Mr. Hu Baifeng, Mr. Li Jiaqing and Mr. Zhou Hongbin as non-executive Directors; Mr. Dai Lixin, Ms. Chen Guoqin, Mr. Tsang Kwan Hung Benson and Mr. Yu Jian as independent non-executive Directors.

  • For identification purposes only

1

Pharmaron Beijing Co., Ltd.[*] 康龍化成（北京）新藥技術股份有限公司

6 Tai-He Road, Beijing Economic Technological Development Area, Beijing, China

2021 FIRST QUARTERLY REPORT

April 2021

2

PART 1 IMPORTANCE NOTICE

The board of directors, the supervisory committee and the directors, supervisors and senior management of the Company warrant the truthfulness, accuracy and completeness of the contents of the 2021 First Quarterly Report and that there are no false information, misleading statements or material omissions in the 2021 First Quarterly Report, and shall assume joint and several legal responsibility.

All directors attended the Board meeting to review the 2021 First Quarterly Report.

LOU Boliang, the person in charge of the Company, LI Shing Chung Gilbert, the Chief Financial Officer and the person in charge of Accounting Department (accounting head) of the Company warrant the truthfulness, accuracy and completeness of the financial statements contained in the 2021 First Quarterly Report.

PART 2 COMPANY PROFILE

I. Major Accounting Data and Financial Indicators

Any necessary retrospective adjustment or restatement of the accounting data of the previous years

□ Yes √ No

Increase/
(decrease) for
the reporting
period compared
The with the
corresponding corresponding
The reporting period of the period of the
period previous year previous year
Revenue (RMB) 1,489,385,309.64 959,183,503.17 55.28%
Net profit attributable to owners of the parent (RMB) 245,874,010.35 101,518,061.99 142.20%
Net profit attributable to owners of the parent
excluding non-recurring gains or losses (RMB) 237,376,010.22 121,230,340.01 95.81%
Non-IFRSs adjusted net profit attributable to
owners of the parent (RMB) 261,893,193.74 141,087,430.88 85.62%
Net cash flows from operating activities (RMB) 498,953,761.05 325,694,990.42 53.20%
Basic earnings per share (RMB/share) 0.3105 0.1285 141.63%
Diluted earnings per share (RMB/share) 0.3096 0.1282 141.50%
Return on net assets on weighted average basis 2.73% 1.30% 1.43%
Increase/
(decrease)
at the end of the
reporting period
As at the As at the as compared with
end of the end of the the end of the
reporting period previous year previous year
Total assets (RMB) 12,761,892,935.09 11,908,792,687.05 7.16%
Net assets attributable to owners of the parent (RMB) 9,097,315,880.04 8,870,319,872.38 2.56%

3

Non-recurring gains or losses items and amounts

√ Applicable □ N/A

Unit: RMB

Item
Gains or losses from disposal of non-current assets
(including written-off portion of provisions for
assets impairment)
Government grants included in profit/(loss) of
the current period (except for those closely
related to the Company’s business and which
are granted subject to certain amount or volume
in compliance with the government policies and
regulations)
Gains or losses on changes in fair value of arising
from held-for-trading financial assets, derivative
financial assets, held-for-trading financial
liabilities and derivative financial liabilities,
and investment income from disposal of held-
for-trading financial assets, derivative financial
assets, held-for-trading financial liabilities,
derivative financial liabilities and other debt
investments, except effective hedging activities
related to the Company’s normal business
operations
Other non-operating income and expenses other
than the above items
Less: Effect of income tax
Impact on non-controlling interests (after tax)
Total		 From the
beginning of
the year to
the end of
the reporting
period
Note
-432,352.79
19,437,494.27
It was mainly due to the government
subsidies related to daily activities that
were received by the Company.
-3,960,599.25
-1,627,950.60
2,852,200.36
2,066,391.14
8,498,000.13

4

Please explain the reason for determining the non-recurring gains or losses items by the Company in accordance with the definition set out in the Explanatory Announcement No. 1 for Information Disclosure by Public Issuers of Securities – Non-recurring Gains or Losses Items and for listing the non-recurring gains or losses items set out in the foregoing document as recurring gain or loss items.

□ Applicable √ N/A

During the reporting period, the Company did not list any non-recurring gains or losses items as defined and illustrated in the Explanatory Announcement No. 1 for Information Disclosure by Public Issuers of Securities – Non-recurring Gain or Loss Items as recurring gain or loss items.

  • II. Total Number of Shareholders and Shareholdings of Top 10 Shareholders as at the End of the Reporting Period

1. Number of ordinary shareholders and preferred shareholders whose voting rights have been reinstated, and shareholdings of top 10 shareholders

Unit: share

Total number of ordinary shareholders as 23,592 Total number of preferred 0 at the end of the reporting period shareholders whose voting rights have been reinstated as at the end of the reporting period

Shareholdings of top 10 shareholders

Number of
shares
subject to
Number trading Pledged or frozen shares
Name of shareholder Nature of shareholder Percentage of shares restrictions Status Number
Shenzhen Xinzhong Kangcheng Investment Domestic non-state-owned 19.78% 157,142,855 157,142,855
Partnership (Limited Partnership) legal person
(深圳市信中康成投資合夥企業
（有限合夥))
HKSCC NOMINEES LIMITED Overseas legal person 16.87% 133,996,889 0
PHARMARON HOLDINGS LIMITED Overseas legal person 12.29% 97,600,003 97,600,003
Tianjin Junlian Wenda Equity Investment Domestic non-state-owned 8.71% 69,200,328 0
Partnership (Limited Partnership) legal person
(天津君聯聞達股權投資合夥企業
（有限合夥))
Hong Kong Securities Clearing Overseas legal person 5.56% 44,183,590 0
Company Limited
Shenzhen Xinzhong Longcheng Investment Domestic non-state-owned 3.59% 28,494,266 28,494,266
Partnership (Limited Partnership) legal person
(深圳市信中龍成投資合夥企業
（有限合夥))

5

Number of
shares
subject to
Number trading Pledged or frozen shares
Name of shareholder Nature of shareholder Percentage of shares restrictions Status Number
Mr. LOU Xiaoqiang (樓小強) Domestic natural person 3.46% 27,500,000 27,500,000 Pledge 1,930,000
Ningbo Longtaikang Investment Domestic non-state-owned 3.46% 27,500,000 27,500,000 Pledge 9,161,400
Management Co., Ltd.
(寧波龍泰康投資管理有限公司)		 legal person
Beijing Duotai Investment Domestic non-state-owned 2.61% 20,723,103 20,723,103 Pledge 10,424,000
Management Co., Ltd. legal person
(北京多泰投資管理有限公司)
Industrial and Commercial Bank of China Other 1.79% 14,203,748 0
Limited-Zhong Ou AMC Medical and
Health Hybrid Securities Investment
Fund (中國工商銀行股份有限公司－中
歐醫療健康混合型證券投資基金)

Shareholdings of top 10 holders of shares not subject to trading restrictions

Number of shares
not subject to Class of shares
Name of shareholder trading restrictions Class Number
HKSCC NOMINEES LIMITED 133,996,889 Overseas listed 133,996,889
foreign shares
Tianjin Junlian Wenda Equity Investment 69,200,328 RMB-denominated 69,200,328
Partnership (Limited Partnership)
(天津君聯聞達股權投資合夥企業		 ordinary shares
（有限合夥))
Hong Kong Securities Clearing Company Limited 44,183,590 RMB-denominated 44,183,590
ordinary shares
Industrial and Commercial Bank of China 14,203,748 RMB-denominated 14,203,748
Limited-Zhong Ou AMC Medical and Health
Hybrid Securities Investment Fund（中國工商
銀行股份有限公司－中歐醫		 ordinary shares
療健康混合型證券投資基金）
Mr. YU Yuejiang (郁岳江) 11,472,042 RMB-denominated 11,472,042
ordinary shares
Beijing Junlian Maolin Equity Investment 5,404,043 RMB-denominated 5,404,043
Partnership (Limited Partnership)
(北京君聯茂林股權投資合夥企業		 ordinary shares
（有限合夥）)
Bank of China Limited – Huatai-PineBridge 3,352,053 RMB-denominated 3,352,053
Leading Hybrid Securities Investment Fund
(中國銀行股份有限公司－華泰柏瑞質量
領先混合型證券投資基金)		 ordinary shares
China Construction Bank Corporation – China 2,675,475 RMB-denominated 2,675,475
Universal Innovation Pharmaceuticals Theme
Mixed Securities Investment Fund (中國建設		 ordinary shares
銀行股份有限公司－匯添富創新醫藥主題
混合型證券投資基金)
Bank of China Limited – CMF CNI Biomedicine 2,580,784 RMB-denominated 2,580,784
Index Classified Securities Investment Fund
(中國銀行股份有限公司
－招商國證生物醫藥指數分級證券投資基金)		 ordinary shares

6

2,272,232 RMB-denominated 2,272,232 ordinary shares

Industrial and Commercial Bank of China Limited – Lombarda China Medical Innovation Equity Securities Investment Fund

(中國工商銀行股份有限公司 －中歐醫療創新股票型證券投資基金)

Description of connected relationships or concerted actions of the above shareholders

  1. Shenzhen Xinzhong Kangcheng Investment Partnership (Limited Partnership) (深圳市信中康成投資合夥企業（有 限合夥)) and Shenzhen Xinzhong Longcheng Investment Partnership (Limited Partnership) (深圳市信中龍成投資合 夥企業（有限合夥)) are the shareholding entities controlled by CITIC Buyout Investment Fund (Shenzhen) (Limited Partnership) (中信併購投資基金（深圳）合夥企業（有限合 夥)).

  2. Tianjin Junlian Wenda Equity Investment Partnership (Limited Partnership) (天津君聯聞達股權投資合夥企業

（有限合夥)) and Beijing Junlian Maolin Equity Investment Partnership (Limited Partnership) (北京君聯茂林股權投 資合夥企業（有限合夥)) are controlled by Junlian Capital Management Co., Ltd. (君聯資本管理股份有限公司).

  1. Mr. LOU Xiaoqiang (樓小強), a shareholder of the Company, owns 100% equity interests of Ningbo Longtaikang Investment Management Co., Ltd. (寧波龍泰 康投資管理有限公司); Ms. ZHENG Bei (鄭北), Mr. LOU Xiaoqiang (樓小強)’s spouse, owns 100% equity interests of Beijing Duotai Investment Management Co., Ltd. (北京 多泰投資管理有限公司), and Dr. LOU Boliang, Mr. LOU Xiaoqiang (樓小強)’s brother, is the director of Pharmaron Holdings Limited.

The top 10 shareholders of the Company have no connected relationship other than those set forth above.

Description of securities margin trading business by top 10 shareholders (if any)

N/A

Whether the top 10 ordinary shareholders and top 10 ordinary shareholders not subject to trading restrictions conducted any agreed repurchase transaction during the reporting period

□ Yes √ No

The top 10 ordinary shareholders and top 10 ordinary shareholders not subject to trading restrictions did not conduct any agreed repurchase transaction during the reporting period.

2. Number of preferred shareholders and the shareholdings of top 10 preferred shareholders

□ Applicable √ N/A

7

3. Change in shares subject to trading restrictions

√ Applicable □ N/A

Unit: share

Name of shareholder
Shenzhen Xinzhong Kangcheng
Investment Partnership
(Limited Partnership)
(深圳市信中康成投資合夥
企業(有限合夥))
Pharmaron Holdings Limited
Shenzhen Xinzhong Longcheng
Investment Partnership
(Limited Partnership)
(深圳市信中龍成投資合夥
企業(有限合夥))
Mr. LOU Xiaoqiang
(樓小強)
Ningbo Longtaikang Investment
Management Co., Ltd.
(寧波龍泰康投資管理有限公司)
Beijing Duotai Investment
Management Co., Ltd.
(北京多泰投資管理有限公司)
Beijing Longtai Dingsheng Investment
Management Enterprise (Limited
Partnership)
(北京龍泰鼎盛投資管理企業
(有限合夥))
Beijing Longtai Huisheng Investment
Management Enterprise (Limited
Partnership)
(北京龍泰匯盛投資管理企業
(有限合夥))
Beijing Longtai Zhongsheng
Investment Management Enterprise
(Limited Partnership)
(北京龍泰眾盛投資管理企業
(有限合夥))
Beijing Longtai Huixin Investment
Management Enterprise (Limited
Partnership)
(北京龍泰匯信投資管理企業
(有限合夥))
Other holders of shares subject to
trading restrictions
Total		 Period-
beginning
shares subject
to trading
restrictions
157,142,855
97,600,003
28,494,266
27,500,000
27,500,000
20,723,103
2,923,079
2,923,079
2,923,079
2,923,079
6,491,070
377,143,613		 Number of
shares released
from trading
restrictions
during the
reporting period
0
0
0
0
0
0
0
0
0
0
6,000
6,000		 Increase in
shares subject
to trading
restrictions
during the
reporting period
0
0
0
0
0
0
0
0
0
0
0
0		 Period-end
shares subject
to trading
restrictions
Reason for release
Proposed date
of release
from trading
restriction
157,142,855
Pre-IPO shares subject to
trading restrictions
January 28, 2022
97,600,003
Pre-IPO shares subject to
trading restrictions
January 28, 2022
28,494,266
Pre-IPO shares subject to
trading restrictions
January 28, 2022
27,500,000
Pre-IPO shares subject to
trading restrictions
January 28, 2022
27,500,000
Pre-IPO shares subject to
trading restrictions
January 28, 2022
20,723,103
Pre-IPO shares subject to
trading restrictions
January 28, 2022
2,923,079
Pre-IPO shares subject to
trading restrictions
January 28, 2022
2,923,079
Pre-IPO shares subject to
trading restrictions
January 28, 2022
2,923,079
Pre-IPO shares subject to
trading restrictions
January 28, 2022
2,923,079
Pre-IPO shares subject to
trading restrictions
January 28, 2022
6,485,070
Pre-IPO shares subject to
trading restrictions and
restricted shares under
the share incentive
scheme
It will be released
in batches in
accordance
with relevant
laws and
regulations
and
shareholders’
undertakings
377,137,613
–
–

8

PART 3 SIGNIFICANT EVENTS

  • I. Significant Change in Major Financial Data and Financial Indicators During the Reporting Period and the Reasons Thereof

  • √ Applicable □ N/A

√ Applicable□N/A
Balance at Balance as at
the end of the end of
the reporting the previous
period/ year/
amount of the amount of the Percentage
Item current period previous period of changes Reasons for significant changes
(RMB) (RMB)
Prepayments 15,012,817.04 9,991,377.35 50.26% Prepayments increased by RMB5,021,400
or 50.26% compared with the balance
at the end of last year, mainly due to
the increase in prepayments for the
procurement of raw materials.
Contract assets 181,498,586.43 133,764,197.46 35.69% Contract assets increased by
RMB47,734,400 or 35.69% compared
with the balance at the end of last year,
mainly due to the growing business
scale.
Investment properties – 43,888,859.93 -100.00% Investment properties decreased by
RMB43,888,900 or 100% compared with
the balance at the end of last year, due
to the conversion of use of investment
properties to its own use, resulting in the
transfer of relevant land and buildings
to intangible assets and fixed assets,
respectively.
Construction in progress 1,084,063,840.30 820,576,183.15 32.11% Construction in progress increased by
RMB263,487,700 or 32.11% compared
with the balance at the end of last year,
mainly due to the scheduled construction
of Ningbo Hangzhou Bay R&D service
center, Phase I of Shaoxing Shangyu
manufacturing facility.
Deferred tax assets 11,439,017.31 8,436,003.69 35.60% Deferred tax assets increased by
RMB3,003,000 or 35.60% compared
with the balance at the end of last year,
mainly due to the increase in deferred
tax assets related to recognized tax
losses.
Other non-current assets 1,005,920,243.54 149,162,761.67 574.38% Other non-current assets increased by
RMB856,757,500 or 574.38% compared
with the balance at the end of last year,
mainly due to the prepayments for the
acquisition of equity interests in
Allergan Biologics Limited.
Held-for-trading financial 1,993,442.22 – N/A It was mainly due to the change in fair
liabilities value of addition of foreign currency
forward contracts during the reporting
period.

9

Balance at Balance as at
the end of the end of
the reporting the previous
period/ year/
amount of the amount of the Percentage
Item current period previous period of changes Reasons for significant changes
(RMB) (RMB)
Tax payable 83,216,112.28 51,834,011.70 60.54% Tax payable increased by RMB31,382,100
or 60.54% compared with the balance
at the end of last year, mainly due to
the significant growth of the total profit
during the reporting period, resulting
in a greater increase in the income tax
payable compared with the balance at
the end of the last year.
Long-term borrowings 730,252,586.00 394,810,891.08 84.96% Long-term borrowings increased by
RMB335,441,700 or 84.96% compared
with the balance at the end of last
year, mainly due to our increased bank
borrowings for project construction.
Treasury shares 82,085,478.41 45,474,869.16 80.51% Treasury shares increased by
RMB36,610,600 or 80.51% compared
with the balance at the end of last
year. During the reporting period, in
accordance with the H Share Award and
Trust Scheme, Computershare Hong
Kong Trustees Limited (the “Trustee”)
purchased the H Shares from the open
market based on the instructions of the
Company.
Revenue 1,489,385,309.64 959,183,503.17 55.28% During the reporting period, the
Company’s overall development was in
good shape with ever-growing income.
The revenue increased by 55.28% on a
period-on-period basis.
Cost 972,067,265.31 638,222,684.14 52.31% In line with the increased revenue, the cost
during the reporting period increased by
52.31% on a period-on-period basis.
Selling expenses 32,063,194.79 17,891,718.19 79.21% In line with the increased revenue, the
selling expenses during the reporting
period increased by 79.21% on a period-
on-period basis.
Administrative expenses 188,364,617.42 141,864,369.42 32.78% Administrative expenses increased by
RMB46,500,200 or 32.78% on a period-
on-period basis, mainly due to an
increase in the number of the Company’s
executives and labor costs as a result of
the expansion of the Company’s business
scale.
Research and development costs 29,095,136.05 20,949,068.76 38.89% Research and development costs increased
by RMB8,146,100, representing an
increase of 38.89% on a period-on-
period basis during the reporting
period, mainly due to the Company’s
enhanced efforts to improve research
and development capabilities technical
expertise, and increased research and
development spending.

10

Balance at Balance as at
the end of the end of
the reporting the previous
period/ year/
amount of the amount of the Percentage
Item current period previous period of changes Reasons for significant changes
(RMB) (RMB)
Finance costs -12,697,228.00 -21,912,831.21 42.06% Finance costs increased by RMB9,215,600,
representing an increase of 42.06% on
a period-on-period basis, mainly due
to the decrease in interest income of
RMB14,773,700 as compared with the
same period last year.
Other income 18,418,994.27 5,396,718.28 241.30% Other income increased by
RMB13,022,300, representing an
increase of 241.30% on a period-
on-period basis, mainly due to the
significant increase in government
subsidies related to daily activities that
were received by the Company.
Investment income 38,271,517.29 -5,706,597.33 770.65% Investment income increased by
RMB43,978,100, representing an
increase of 770.65% on a period-
on-period basis, mainly due to the
following:
1. The transfer of gains on change in
fair value amounting to approximately
RMB32,380,700 to investment income
as a result of the settlement of foreign
currency forward contracts used for
hedging against foreign exchange risks
during the reporting period, as compared
to the gains arising from investment
in derivative financial instruments
amounting to RMB3,828,400 in the same
period last year;
2. The decrease in losses arising
from investment in associates of
RMB9,787,700 during the reporting
period as compared with the same period
last year.

11

Balance at Balance as at
the end of the end of
the reporting the previous
period/ year/
amount of the amount of the Percentage
Item current period previous period of changes Reasons for significant changes
(RMB) (RMB)
Gains on change in fair value -42,576,727.51 -28,183,985.51 -51.07% Gains on change in fair value decreased by
RMB14,392,700, representing a decrease
of 51.07% on a period-on-period basis
during the reporting period, mainly due
to:
1. the losses on change in fair value
of Zentalis Pharmaceuticals, LLC,
an investee of the Company of
approximately RMB15,857,700 during
the reporting period;
2. the losses on change in fair value
recognized for the foreign currency
forward contracts and foreign currency
option contracts amounting to
approximately RMB30,711,000 (among
which mainly the portion of changes in
fair value of contracts due for settlement
transferred to investment income), as
compared to the losses on change in fair
value of derivative financial instruments
amounting to RMB28,184,000 in the
same period last year.
Credit impairment losses -250,250.61 -1,998,021.41 -87.48% It was mainly due to the decrease in
impairment losses on trade receivables
during the reporting period.
Asset impairment losses -2,010,980.86 -3,427,932.28 -41.34% It was mainly due to the decrease in
impairment losses on inventories and
impairment losses on contract assets
during the reporting period.
Gain on disposal of assets -432,352.79 -270,818.69 -59.65% It was mainly due to the increase in losses
arising from the disposal of non-current
assets during the reporting period.
Non-operating income 1,123,120.65 104,599.92 973.73% It was mainly due to the increase in
government subsidies related to non-
daily activities received by the Company
during the reporting period as compared
with the same period last year.

12

Balance at Balance as at
the end of the end of
the reporting the previous
period/ year/
amount of the amount of the Percentage
Item current period previous period of changes Reasons for significant changes
(RMB) (RMB)
Non-operating expenses 1,732,571.25 4,365,214.32 -60.31% It was mainly due to the change in
charitable donations during the reporting
period as compared with the same period
last year.
Income tax expenses 45,811,849.63 21,459,301.47 113.48% During the reporting period, the income
tax expenses increased due to a period-
on period increase in profit before tax by
146.42%.
Net cash flow from 498,953,761.05 325,694,990.42 53.20% It was mainly due to the significant period-
operating activities on-period increase in revenue during the
reporting period.
Net cash flow from -1,604,811,035.60 -841,498,471.73 -90.71% The net cash outflows from investing
investing activities activities during the reporting period was
mainly due to the following factors:
1. Net cash used for payment of equity
investments of approximately
RMB837,184,300.
2. Using funds including the proceeds of
H shares in the constructions of various
infrastructure and in the payment for
acquisitions of other fixed assets and
intangible assets and the other long-
term assets in cash of approximately
RMB547,667,300;
3. Net cash outflows used in purchase of
term deposits over three months and
some medium-risk and low-risk wealth
management products of approximately
RMB262,507,000.
Net cash flows from 285,020,719.65 -765,903,016.74 137.21% It was mainly due to the decrease in
financing activities repayments of debts during the reporting
period as compared with the same period
last year.
Effect of foreign exchange -3,608,956.15 -20,243,828.35 82.17% It was mainly due to the decrease in
rate changes on cash and average amount of cash and bank
cash equivalents balances denominated in foreign
currencies during the reporting period.

13

II. Business Review

Factors leading to change in business revenue during the reporting period

During the reporting period, the management of the Company carried out its operation in 2021 in an orderly manner in accordance with the development strategy formulated by the Board. With the joint efforts of all employees, the Company successfully completed all tasks in the first quarter of 2021 and maintained a good momentum of stable and healthy development.

Revenue from principal operations, gross profit and gross profit margin for the first quarter of 2021 as well as their period-on-period changes are as follows:

Unit: RMB

Increase/ Increase/
(decrease) in (decrease) in
revenue as gross profit
compared as compared
with the with the
corresponding corresponding
Gross period of period of
profit the previous the previous
By products or services Revenue Gross profit margin year year
Laboratory services 984,441,683.65 399,052,445.30 40.54% 54.10% 61.00%
CMC (small molecule CDMO) services 304,823,002.06 92,628,005.50 30.39% 50.90% 75.52%
Clinical development services 198,613,955.87 24,970,047.85 12.57% 75.01% 41.02%

Major executed orders and progress

□ Applicable √ N/A

Scattered orders

□ Applicable √ N/A

Significant change in or adjustment of product or service during the reporting period

□ Applicable √ N/A

Progress and impact of important research and development projects

□ Applicable √ N/A

14

Impact of major changes in the Company’s intangible assets, core competitiveness, core technical team or key technical personnel (non-directors, supervisors, senior management personnel) during the reporting period, and the countermeasures

□ Applicable √ N/A

Change in top 5 suppliers during the reporting period and its impact

□ Applicable √ N/A

Change in top 5 clients during the reporting period and its impact

□ Applicable √ N/A

Implementation of annual operating plan during the reporting period

  • √ Applicable □ N/A

During the reporting period, the Company strictly implemented the operating plan for 2021 formulated by the Board, and there was no change in the annual operating plan. For details, please refer to relevant description set forth in “Outlook for 2021” of “Management Discussion and Analysis” of the 2020 Annual Report.

Important risk factors that may adversely affect the Company’s future operation, major difficulties in operations, and proposed countermeasures

  • √ Applicable □ N/A

Please refer to relevant description set forth in “Outlook for 2021” of “Management Discussion and Analysis” of the 2020 Annual Report.

15

III. Progress of Significant Events, Analysis of Their Impacts and Solutions

  • √ Applicable □ N/A

Progress of significant events during the reporting period are shown in the table below:

Search index on the website Overview of significant events Date of disclosure disclosing the interim reports

Investment in Wuxi AstraZeneca February 3, 2021 Announcement on Completion of Filing of CICC Venture Capital Investment in Private Equity Investment Partnership (Limited Fund (No.: 2021-002), disclosure website: Partnership) http://www.cninfo.com.cn Acquisition of 100% equity March 1, 2021 Announcement on the Company’s Acquisition interests in Allergan Biologics of Equity Interests in an Overseas Company Limited (No.: 2021-005), disclosure website: http://www.cninfo.com.cn Discloseable transaction in relation to the acquisition of 100% equity interest in a research and development services company based in the U.K., disclosure website: http://www.hkexnews.hk Investment in Beijing Kangjun March 13, 2021 Announcement on the Company’s Investment in Ningyuan Equity Investment Private Equity Investment Fund and Related Partnership (Limited Transactions (No.: 2021-009), disclosure Partnership) website: http://www.cninfo.com.cn Investment in Ningbo Kangjun March 29, 2021 Announcement on the Company’s Investment in Zhongyuan Equity Investment Private Equity Investment Fund and Related Partnership (Limited Transactions (No.: 2021-021), disclosure Partnership) website: http://www.cninfo.com.cn

Implementation and progress of share repurchase

□ Applicable √ N/A

Implementation and progress of centralized bidding to reduce holdings of repurchased shares

□ Applicable √ N/A

  • IV. Overdue Undertaking Not Performed as at the end of the Reporting Period by the Company’s De Facto Controller, Shareholders, Related Parties and Purchasers, the Company and Other Undertaking Parties

□ Applicable √ N/A

There was no overdue undertaking not performed as at the end of the reporting period by the Company’s de facto controller, shareholders, related parties and purchasers, the Company and other undertaking parties.

16

V. Comparison Table on Use of Raised Funds

□ Applicable √ N/A

VI. Caution and Explanation as to the Anticipated Loss of Accumulated Net Profit From the Beginning of the Year to the End Of the Next Reporting Period or Significant Changes Over the Same Period of the Previous Year

□ Applicable √ N/A

VII. Guarantees for Third Parties in Violation of Regulations

□ Applicable √ N/A

There was no guarantees for third parties in violation of regulations during the reporting period.

VIII. Appropriation of Non-Operating Funds of the Listed Company by the Controlling Shareholder and its Related Parties

□ Applicable √ N/A

There was no appropriation of non-operating funds of the listed company by the controlling shareholder and its related parties during the reporting period.

IX. Records of Reception of Investors, Communications and Press Interviews during the Reporting Period

  • √ Applicable □ N/A

Key Contents Type of Discussed and Index of Basic Audience Information Information Time Location Mode Received Audience Received Furnished of Research March 29, 2021 Conference Communication Institutions 366 participants from 276 Exchange views For further details, room of the via telephone institutions including CICC with investors please refer to the Company Securities, Haitong Securities, on the operating Records of Investor Orient Securities, Guotai Junan, conditions for Relations Activities Guosheng Securities, CITIC 2020 as at March 29, Securities, GF Securities, China 2021 disclosed at Merchants Securities, Lombarda http://www.cninfo. China Fund, Fullgoal Fund, com.cn China Universal Fund, Lake Bleu Capital, Huaxia Fund, Springs Capital, Greenwoods Investment, Penghua Fund, China Merchants Fund

17

PART 4 FINANCIAL STATEMENTS

I. Financial Statements

1. Consolidated Balance Sheet

Prepared by: Pharmaron Beijing Co., Ltd. March 31, 2021

Item
Current assets:
Cash and bank balances
Deposit reservation for balance
Lending to banks and other financial institutions
Held-for-trading financial assets
Derivative financial assets
Note receivables
Trade receivables
Trade receivables financing
Prepayments
Premium receivables
Reinsurance account receivables
Reinsurance deposit receivables
Other receivables
Including: Interest receivables
Dividend receivables
Financial assets held under repurchase agreements
Inventories
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets
Total current assets		 March 31,
2021
2,210,848,700.48
1,049,824,964.00
1,063,320,233.50
15,012,817.04
48,783,192.06
318,799,676.63
181,498,586.43
176,889,261.84
5,064,977,431.98		 Unit: RMB
December 31,
2020
2,942,352,739.79
910,010,204.36
1,076,613,848.97
9,991,377.35
43,125,212.21
281,617,169.89
133,764,197.46
142,903,541.28
5,540,378,291.31

18

Item
Non-current assets:
Disbursement of loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments
Other investments in equity instruments
Other non-current financial assets
Investment properties
Fixed assets
Construction in progress
Productive biological assets
Oil & gas assets
Right-of-use assets
Intangible assets
Development expenses
Goodwill
Long-term deferred expenses
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets		 March 31,
2021
314,495,872.63
135,068,486.39
2,882,056,148.93
1,084,063,840.30
236,177,534.13
638,410,737.66
1,172,594,357.93
216,689,264.29
11,439,017.31
1,005,920,243.54
7,696,915,503.11
12,761,892,935.09		 December 31,
2020
280,474,146.47
121,229,605.93
43,888,859.93
2,722,686,958.65
820,576,183.15
255,439,849.20
566,076,376.97
1,166,172,234.71
234,271,415.37
8,436,003.69
149,162,761.67
6,368,414,395.74
11,908,792,687.05

19

Item
Current liabilities:
Short-term borrowings
Borrowings from the Central Bank
Borrowings from banks and other financial institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Note payables
Trade payables
Advances from customers
Contract liabilities
Financial assets sold for repurchase
Customer and inter-bank deposits
Deposit for securities trading brokerage
Deposit for securities underwriting brokerage
Employee benefits payables
Tax payables
Other payables
Including: Interests payables
Dividend payables
Fees and commissions payables
Reinsurance account payables
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities		 March 31,
2021
388,574,964.43
1,993,442.22
220,329,344.65
550,829,670.03
487,833,215.37
83,216,112.28
472,830,638.05
611,608.05
93,045,147.46
2,298,652,534.49		 December 31,
2020
377,265,354.81
191,497,239.86
473,288,883.77
387,442,503.10
51,834,011.70
407,655,814.57
611,608.05
92,805,094.82
1,981,788,902.63

20

Item
Non-current liabilities:
Insurance contract reserves
Long-term borrowings
Bond payables
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits payables
Provisions
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities		 March 31,
2021
730,252,586.00
171,039,791.72
155,163,322.63
106,860,268.02
147,854,250.00
1,311,170,218.37
3,609,822,752.86		 December 31,
2020
394,810,891.08
186,607,862.14
158,128,263.67
106,906,443.30
146,810,250.00
993,263,710.19
2,975,052,612.82

21

Item
Equity:
Share capital
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve
Less: Treasury shares
Other comprehensive income
Specific reserve
Surplus reserve
General risk provision
Retained earnings
Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity		 March 31,
2021
794,387,462.00
6,041,585,357.97
82,085,478.41
-33,934,786.33
202,465,255.25
2,174,898,069.56
9,097,315,880.04
54,754,302.19
9,152,070,182.23
12,761,892,935.09		 December 31,
2020
794,387,462.00
6,028,142,600.97
45,474,869.16
-38,224,635.89
202,465,255.25
1,929,024,059.21
8,870,319,872.38
63,420,201.85
8,933,740,074.23
11,908,792,687.05

Legal representative: LOU Boliang

Chief Financial Officer: LI Shing Chung Gilbert

Person in charge of Accounting Department: LI Shing Chung Gilbert

22

2. Balance Sheet of the Company

Unit: RMB

Item
Current assets:
Cash and bank balances
Held-for-trading financial assets
Derivative financial assets
Note receivables
Trade receivables
Trade receivables financing
Prepayments
Other receivables
Including: Interest receivables
Dividend receivables
Inventories
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets
Total current assets		 March 31,
2021
1,148,874,925.07
589,754,023.01
872,029,422.34
2,026,407.59
1,452,502,372.68
60,823,790.63
31,805,117.38
4,157,816,058.70		 December 31,
2020
1,857,342,493.79
525,261,605.10
866,339,884.84
2,953,712.26
461,247,235.46
53,462,370.71
27,474,399.26
3,794,081,701.42

23

Item
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments
Other investments in equity instruments
Other non-current financial assets
Investment properties
Fixed assets
Construction in progress
Productive biological assets
Oil & gas assets
Right-of-use assets
Intangible assets
Development expenses
Goodwill
Long-term deferred expenses
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets		 March 31,
2021
4,475,070,664.68
30,000,000.00
1,301,005,820.48
42,452.82
57,837,847.38
123,151,848.77
97,135,685.89
31,442,682.99
6,115,687,003.01
10,273,503,061.71		 December 31,
2020
4,435,157,955.93
1,000,000.00
1,293,499,376.74
2,086,733.12
62,551,092.33
123,528,326.04
109,883,880.88
22,424,466.02
6,050,131,831.06
9,844,213,532.48

24

Item
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Note payables
Trade payables
Advances from customers
Contract liabilities
Employee benefits payables
Tax payables
Other payables
Including: Interest payables
Dividend payables
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities
Non-current liabilities:
Long-term borrowings
Bond payables
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits payables
Provisions
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities		 March 31,
2021
54,271,804.39
1,993,442.22
129,796,195.82
118,426,547.93
270,180,160.45
12,282,504.33
732,917,050.46
611,608.05
19,811,637.74
1,339,679,343.34
82,000,000.00
42,132,369.23
6,245,586.33
59,992,108.19
190,370,063.75
1,530,049,407.09		 December 31,
2020
38,622,819.62
125,514,474.46
111,357,958.94
205,472,101.48
6,120,177.80
595,291,480.94
611,608.05
20,495,930.87
1,102,874,944.11
84,000,000.00
43,902,916.97
6,793,176.96
58,238,487.22
192,934,581.15
1,295,809,525.26

25

Item
Equity:
Share capital
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve
Less: Treasury shares
Other comprehensive income
Specific reserve
Surplus reserve
Retained earnings
Total equity
Total liabilities and equity		 March 31,
2021
794,387,462.00
5,979,578,111.41
82,085,478.41
406,457.02
202,465,255.25
1,848,701,847.35
8,743,453,654.62
10,273,503,061.71		 December 31,
2020
794,387,462.00
5,966,168,890.35
45,474,869.16
202,465,255.25
1,630,857,268.78
8,548,404,007.22
9,844,213,532.48

26

3. Consolidated Income Statement

Unit: RMB

Amount of the Amount of the
Item current period previous period
1. Total revenue 1,489,385,309.64 959,183,503.17
Including: Revenue 1,489,385,309.64 959,183,503.17
Interest income
Insurance premium earned
Fee and commission income
2. Total cost 1,217,712,145.16 806,096,811.44
Including: Cost 972,067,265.31 638,222,684.14
Interest expenses
Fee and commission expenses
Surrender value
Net claim paid
Net change in insurance contract reserves
Insurance policy dividend paid
Reinsurance expenses
Taxes and surcharges 8,819,159.59 9,081,802.14
Selling expenses 32,063,194.79 17,891,718.19
Administrative expenses 188,364,617.42 141,864,369.42
Research and development costs 29,095,136.05 20,949,068.76
Finance expenses -12,697,228.00 -21,912,831.21
Including: Interest expenses 5,870,816.41 8,617,709.91
Interest income 9,699,906.23 24,473,570.14
Add: Other income 18,418,994.27 5,396,718.28
Investment income (“-” indicating loss) 38,271,517.29 -5,706,597.33
Including: Income from investments in
associates and joint ventures -344,610.97 -10,132,345.44
Gains on derecognition of financial
assets measured at amortized cost
Foreign exchange gains (“-” indicating loss)
Net gain on exposure hedging
(“-” indicating loss)
Gains on change in fair value
(“-” indicating loss) -42,576,727.51 -28,183,985.51
Credit impairment losses
(“-” indicating loss) -250,250.61 -1,998,021.41
Assets impairment losses
(“-” indicating loss) -2,010,980.86 -3,427,932.28
Gains on disposal of assets
(“-” indicating loss) -432,352.79 -270,818.69

27

Amount of the Amount of the
Item current period previous period
3. Operating profit (“-” indicating loss) 283,093,364.27 118,896,054.79
Add: Non-operating income 1,123,120.65 104,599.92
Less: Non-operating expenses 1,732,571.25 4,365,214.32
4. Profit before tax (“-” indicating total loss) 282,483,913.67 114,635,440.39
Less: Income tax expenses 45,811,849.63 21,459,301.47
5. Net profit (“-” indicating net loss) 236,672,064.04 93,176,138.92
(i) By continuity of operations
1. Net profit from continuing operations
(“-” indicating net loss) 236,672,064.04 93,176,138.92
2. Net profit from discontinued operations
(“-” indicating net loss)
(ii) By ownership
1. Net profit attributable to owners of the
parent 245,874,010.35 101,518,061.99
2. Non-controlling interests -9,201,946.31 -8,341,923.07
6. Other comprehensive income, net of tax 4,333,930.40 -27,594,163.16
Other comprehensive income attributable to
owners of the parent, net of tax 4,289,849.56 -27,699,357.72
(i) Other comprehensive income that may not be
reclassified to profit or loss
1. Changes arising from remeasurement
under defined benefit plan
2. Other comprehensive income that may
not be transferred to gain or loss
under equity method
3. Change in fair value of investments in
other equity instruments
4. Change in fair value of own credit risk
5. Others
(ii) Other comprehensive income that will be
reclassified to profit or loss 4,289,849.56 -27,699,357.72
1. Other comprehensive income that may
be reclassified to profit or loss under
equity method
2. Change in fair value of other debt
investments
3. Amount included in other
comprehensive income on
reclassification of financial assets
4. Impairment allowance of other debt
investments
5. Cash flow hedging reserve 406,457.02
6. Exchange difference on translation of
foreign financial statements 3,883,392.54 -27,699,357.72
7. Others

28

Amount of the Amount of the
Item current period previous period
Other comprehensive income attributable to the
non-controlling interests, net of tax 44,080.84 105,194.56
7. Total comprehensive income 241,005,994.44 65,581,975.76
Total comprehensive income attributable to
owners of the parent 250,163,859.91 73,818,704.27
Total comprehensive income attributable to the
non-controlling interests -9,157,865.47 -8,236,728.51
8. Earnings per share:
(i)
Basic earnings per share		 0.3105 0.1285
(ii)
Diluted earnings per share		 0.3096 0.1282
Person in charge of
Legal representative:
Chief Financial Officer:		 Accounting Department:
LOU Boliang
LI Shing Chung Gilbert		 LI Shing Chung Gilbert

29

4. Income Statement of the Company

Unit: RMB

Amount of the Amount of the
Item current period previous period
1. Revenue 872,338,604.89 499,669,840.66
Less: Cost 535,302,455.01 315,271,958.02
Taxes and surcharges 2,489,648.13 2,437,511.68
Selling expenses 16,962,350.30 1,380,609.63
Administrative expenses 72,291,111.87 74,562,349.02
Research and development costs 16,011,674.68 13,012,726.10
Finance expenses -14,493,795.60 -13,959,966.94
Including: Interest expenses 1,881,945.06 5,908,934.38
Interest income 6,522,732.22 23,527,607.88
Add: Other income 2,936,158.66 1,864,265.63
Investment income (“-” indicating loss) 37,589,463.16 -6,303,963.57
Including: Income from investments in
associates and joint ventures -344,610.97 -10,132,345.44
Gains on derecognition of financial
assets measured at amortized cost
(“-” indicating loss)
Net gains on exposure hedging
(“-” indicating loss)
Gain on change in fair value
(“-” indicating loss) -27,035,713.82 -28,183,985.51
Credit impairment losses
(“-” indicating loss) -56,456.28 -1,171,531.81
Assets impairment losses
(“-” indicating loss) -1,629,603.92 -493,735.87
Gains on disposal of assets
(“-” indicating loss) -409,009.35 -106,926.49
2. Operating profit (“-” indicating loss) 255,169,998.95 72,568,775.53
Add: Non-operating income 1,043,700.16 10,000.00
Less: Non-operating expenses 1,361,792.50 4,360,292.44
3. Total profit (“-” indicating total loss) 254,851,906.61 68,218,483.09
Less: Income tax expenses 37,007,328.04 11,015,386.99

30

Amount of the Amount of the
Item current period previous period
4. Net profit (“-” indicating net loss) 217,844,578.57 57,203,096.10
(1) Net profit from continuing operations
(“-” indicating net loss) 217,844,578.57 57,203,096.10
(2) Net profit from discontinued operations
(“-” indicating net loss)
5. Other comprehensive income, net of tax 406,457.02
(i) Other comprehensive income that may not be
reclassified to profit or loss
1.
Changes arising from remeasurement
under defined benefit plan
2.
Other comprehensive income that may
not be transferred to profit or loss
under equity method
3.
Change in fair value of investments in
other equity instruments
4.
Change in fair value of own credit risk
5.
Others
(ii) Other comprehensive income that will be
reclassified to profit or loss 406,457.02
1.
Other comprehensive income that may
be reclassified to profit or loss under
equity method
2.
Change in fair value of other debt
investments
3.
Amount included in other
comprehensive income on
reclassification of financial assets
4.
Impairment allowance of other debt
investments
5.
Cash flows hedging reserve		 406,457.02
6.
Exchange difference on translation of
foreign financial statements
7.
Others
6. Total comprehensive income 218,251,035.59 57,203,096.10
7. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share

31

5. Consolidated Statement of Cash Flows

Unit: RMB

Item
1.
Cash flows from operating activities:
Cash received from sales of goods and rendering
of services
Net increase in customers deposits, due to banks
and other financial institutions
Net increase in placements from the Central Bank
Net increase in placements from other financial
institutions
Cash received from premiums of original
insurance contracts
Net cash received from reinsurance business
Net increase in deposit from policyholders and
investment
Cash received from interests, fees, and
commissions
Net increase in placements from banks and other
financial institutions
Net increase in repurchase agreements
Net cash received from securities trading
brokerage
Refunds of taxes and surcharges
Other cash received relating to operating activities
Subtotal of cash inflow from operating activities
Cash paid for goods and services
Net increase in loans and advances to customers
Net increase in deposits with the Central Bank and
other financial institutions
Cash paid for compensation pay-outs of original
insurance contracts
Net increase in placements with banks and other
financial institution
Cash paid for interest, fees, and commissions
Cash paid for insurance dividends
Cash paid to and on behalf of employees
Cash paid for taxes and surcharges
Other cash paid relating to operating activities
Subtotal of cash outflow from operating activities
Net cash flow from operating activities		 Amount of the
current period
1,553,581,827.13
58,624,233.55
15,698,031.54
1,627,904,092.22
292,749,200.37
587,894,987.32
36,110,950.78
212,195,192.70
1,128,950,331.17
498,953,761.05		 Amount of the
previous period
1,055,538,495.91
34,036,539.82
61,625,336.72
1,151,200,372.45
183,516,868.19
474,161,986.58
37,629,908.14
130,196,619.12
825,505,382.03
325,694,990.42

32

Item
2.
Cash flow from investing activities:
Cash received from disposal of investments
Cash received from return on investments
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries
and other business entities
Other cash received relating to investing activities
Sub-total of cash inflows from investing activities
Cash paid to acquire fixed assets, intangible assets
and other long-term assets
Cash paid to acquire investments
Net increase in pledged loans
Net cash paid to acquire subsidiaries and
other business entities
Other cash paid relating to investing activities
Sub-total of cash outflows from investing
activities
Net cash flow from investing activities		 Amount of the
current period
728,723,720.18
9,904,159.18
262,663.32
738,890,542.68
547,667,296.28
1,788,993,310.00
7,040,972.00
2,343,701,578.28
-1,604,811,035.60		 Amount of the
previous period
211,697,000.00
880,748.11
2,908,865.21
215,486,613.32
166,290,535.05
880,542,550.00
10,152,000.00
1,056,985,085.05
-841,498,471.73

33

Amount of the Amount of the current period previous period

Item

3.
Cash flow from financing activities:
Cash received from capital contributions
Including: Cash received from capital contributions
by non-controlling shareholders of subsidiaries
Cash received from borrowings
Other cash received relating to financing activities
Sub-total of cash inflows from financing activities
Cash paid for repayments of borrowings
Cash payment for distribution of dividends, profits
or interest expenses
Including: Dividends and profit paid by
subsidiaries to non-controlling shareholders
Other cash paid relating to financing activities
Sub-total of cash outflow from financing activities
Net cash flows from financing activities
4.
Effect of foreign exchange rate changes on cash and
cash equivalents
5.
Net increase in cash and cash equivalents
Add: Period-beginning balance of cash and cash
equivalents
6.
Period-end balance of cash and cash equivalents		 377,981,482.29
377,981,482.29
22,667,796.19
8,826,144.90
61,466,821.55
92,960,762.64
285,020,719.65
-3,608,956.15
-824,445,511.05
2,353,933,839.46
1,529,488,328.41
726,147,296.21
8,254,219.50
31,501,501.03
765,903,016.74
-765,903,016.74
-20,243,828.35
-1,301,950,326.40
4,442,218,224.31
3,140,267,897.91

34

6. Statement of Cash Flows of the Company

Item
1.
Cash flows from operating activities:
Cash received from sales of goods and
rendering of services
Refunds of taxes and surcharges
Other cash received relating to operating activities
Subtotal of cash inflow from operating activities
Cash paid for goods and services
Cash paid to and on behalf of employees
Cash paid for taxes and surcharges
Other cash paid relating to operating activities
Subtotal of cash outflow from operating activities
Net cash flow from operating activities		 Amount of the
current period
833,988,400.21
27,985,274.96
898,568,816.52
1,760,542,491.69
171,826,007.82
241,529,741.77
26,730,005.13
1,812,510,039.77
2,252,595,794.49
-492,053,302.80		 Unit: RMB
Amount of the
previous period
892,276,221.17
15,066,857.19
284,133,367.34
1,191,476,445.70
102,414,485.48
259,999,697.18
26,444,659.50
1,337,750,263.58
1,726,609,105.74
-535,132,660.04

35

Item
2.
Cash flows from investing activities:
Cash received from disposal of investments
Cash received from return on investments
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries
and other business entities
Other cash received relating to investing activities
Sub-total of cash inflows from investing activities
Cash paid to acquire fixed assets, intangible
assets and other long-term assets
Cash paid to acquire investments
Net cash paid to acquire subsidiaries and
other business entities
Other cash paid relating to investing activities
Sub-total of cash inflows from investing activities
Net cash flows from investing activities
3.
Cash flows from financing activities:
Cash received from capital contributions
Cash received from borrowings
Other cash received relating to financing activities
Sub-total of cash inflows from financing activities
Cash paid for repayments of borrowings
Cash payment for distribution of dividends,
profits or interest expenses
Other cash paid relating to financing activities
Sub-total of cash outflows from financing activities
Net cash flows from financing activities		 Amount of the
current period
502,338,000.00
5,364,825.23
96,679.87
507,799,505.10
71,819,721.28
518,000,000.00
589,819,721.28
-82,020,216.18
28,317,474.13
28,317,474.13
15,264,560.89
927,915.30
39,966,481.32
56,158,957.51
-27,841,483.38		 Amount of the
previous period
106,697,000.00
283,381.87
7,458.41
106,987,840.28
36,698,049.96
659,000,000.00
10,152,000.00
705,850,049.96
-598,862,209.68
517,544,134.11
6,110,868.95
20,926,014.73
544,581,017.79
-544,581,017.79

36

Amount of the Amount of the Item current period previous period

4.
Effect of foreign exchange rate changes on cash and
cash equivalents
5.
Net increase in cash and cash equivalents
Add: Period-beginning balance of cash and cash
equivalents
6.
Period-end balance of cash and cash equivalents		 -5,354,041.45
-607,269,043.81
1,558,571,980.66
951,302,936.85		 -20,602,763.43
-1,699,178,650.94
4,172,822,713.62
2,473,644,062.68

II. Description of Financial Statement Adjustment

1. Adjustment on the financial statements of the first year of adopting new revenue standards and new leasing standards since 2021

□ Applicable √ N/A

2. Explanation of retrospective adjustment on comparative data of the first year of adopting new revenue standards and new leasing standards since 2021

□ Applicable √ N/A

III. Audit Report

The 2021 First Quarterly Report of the Company has not been audited.

37

IV. Quarterly Condensed Consolidated Financial Statements Prepared in Accordance with IFRSs

1. Consolidated Statement of Profit or Loss[1]

For the three months ended March 31, 2021

REVENUE
Cost of sales
Gross profit
Other income and gains
Other expenses
Selling and distribution expenses
Administrative expenses
Research and development costs
Impairment losses on financial and contract assets,
net of reversal
Finance costs
Share of losses of associates
Profit before tax
Income tax expense
Profit for the period
Attributable to:
Owners of the parent
Non-controlling interests
EARNINGS PER SHARE ATTRIBUTABLE TO
ORDINARY EQUITY HOLDERS
OF THE PARENT
Basic
For profit for the period
Diluted
For profit for the period		 Three months ended March 31,
2021
2020
RMB’000
RMB’000
1,489,385
959,184
(975,224)
(642,597)
514,161
316,587
34,603
37,190
(2,165)
(29,275)
(32,063)
(17,892)
(196,526)
(149,449)
(29,095)
(20,949)
(215)
(2,827)
(5,871)
(8,618)
(345)
(10,132)
282,484
114,635
(45,812)
(21,459)
236,672
93,176
245,874
101,518
(9,202)
(8,342)
236,672
93,176
RMB0.3105
RMB0.1285
RMB0.3096
RMB0.1282

1 Any discrepancies in data below between the total shown and the sum of the amounts listed are due to rounding.

38

2. Consolidated Statement of Financial Position[2]

March 31, 2021

NON-CURRENT ASSETS
Property, plant and equipment
Right-of-use assets
Investment properties
Goodwill
Other intangible assets
Investments in associates
Equity investments at fair value through profit or loss
Deferred tax assets
Other non-current assets
Total non-current assets
CURRENT ASSETS
Inventories
Contract costs
Trade receivables
Contract assets
Prepayments, other receivables and other assets
Financial assets at fair value through profit or loss
Derivative financial instruments
Pledged deposits
Cash and cash equivalents
Total current assets
CURRENT LIABILITIES
Interest-bearing bank and other borrowings
Trade payables
Other payables and accruals
Contract liabilities
Lease liabilities
Derivative financial instruments
Tax payable
Total current liabilities
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES		 March 31,
2021
RMB’000
4,273,704
522,569
–
1,172,594
261,126
314,496
135,068
11,439
1,005,920
7,696,916
139,217
179,583
1,063,320
181,499
240,683
994,811
55,014
9,510
2,201,339
5,064,976
399,237
220,329
997,679
550,830
82,383
1,993
46,201
2,298,652
2,766,324
10,463,240		 December 31,
2020
RMB’000
3,841,445
567,630
43,889
1,166,172
189,976
280,474
121,230
8,436
149,162
6,368,414
128,757
152,860
1,076,614
133,764
196,020
825,312
84,698
7,263
2,935,090
5,540,378
386,146
191,497
819,313
473,289
83,925
–
27,620
1,981,790
3,558,588
9,927,002

39

NON-CURRENT LIABILITIES
Interest-bearing bank and other borrowings
Deferred tax liabilities
Financial liabilities at fair value through profit or loss
Deferred income
Lease liabilities
Total non-current liabilities
NET ASSETS
EQUITY
Share capital
Treasury shares
Reserves
Equity attributable to owners of the parent
Non-controlling interests
Total equity		 March 31,
2021
RMB’000
730,253
106,860
147,854
155,163
171,040
1,311,170
9,152,070
794,387
(82,085)
8,385,014
9,097,316
54,754
9,152,070		 December 31,
2020
RMB’000
394,811
106,906
146,810
158,128
186,608
993,263
8,933,739
794,387
(45,475)
8,121,407
8,870,319
63,420
8,933,739

2 Any discrepancies in data below between the total shown and the sum of the amounts listed are due to rounding.

3. Non-IFRSs adjusted net profit for the period attributable to owners of the parent

To supplement the financial statements prepared by us, we use non-IFRSs adjusted net profit attributable to owners of the parent as an additional financial measure. We define non-IFRSs adjusted net profit attributable to owners of the parent as net profit before certain expenses/ (gains) as set out in the table below.

The Company believes that the consideration of the non-IFRSs adjusted net profit attributable to owners of the parent by eliminating the impact of certain incidental, non-cash or nonoperating items is useful for better understanding and assessing underlying business performance and operating trends for the Company’s management, shareholders and potential investors.

40

The non-IFRSs adjusted net profit attributable to owners of the parent is not an alternative to (i) profit before tax or net profit (as determined in accordance with IFRSs) as a measure of our operating performance, (ii) cash flows from operating, investing and financing activities as a measure of our ability to satisfy our cash needs, or (iii) any other measures of performance or liquidity. In addition, the presentation of the non-IFRSs adjusted net profit attributable to owners of the parent is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with the IFRSs. Shareholders and potential investors should not view the non-IFRSs adjusted net profit attributable to owners of the parent on a stand-alone basis or as a substitute for results under the IFRSs, or as being comparable to results reported or forecasted by other companies.

Profit attributable to owners of the parent
Add:
Share-based compensation expenses
Foreign exchange related gains or losses
Gains or losses on derivative financial instruments
related to foreign exchange
Non-IFRSs net profit attributable to
owners of the parent
Add:
Realized and unrealized gains or losses from
equity investments
Non-IFRSs adjusted net profit attributable to
owners of the parent		 Three months ended March 31,
2021
2020
RMB’000
RMB’000
245,874
101,518
11,870
13,644
(10,198)
(5,150)
(1,855)
20,943
245,691
130,955
16,202
10,132
261,893
141,087

41

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