Sinopharm Group Co. Ltd. — Annual Report 2010

Mar 23, 2011

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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• SINOPHARM GROUP CO. LTD. 國藥控股股份有限公司 (A joint stock limited company incorporated in the People’s Republic of China with limited liability and carrying on business in Hong Kong as 國控股份有限公司）

(Stock Code: 01099)

ANNOUNCEMENT PRICE-SENSITIVE INFORMATION

This announcement is made pursuant to Rule 13.09(1) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The original Chinese and English versions of the following announcement will be published in Shenzhen and Hong Kong respectively on 22 March 2011 by Shenzhen Accord Pharmaceutical Co., Ltd., a subsidiary of Sinopharm Group Co. Ltd. whose A shares and B shares are listed on the Shenzhen Stock Exchange, the major connects of which are cited as follows:

1. Company Profi le

1.1 Basic information

Prof le mation
Short form of the stock	Accord Pharm.,Accord-B
Stock code	000028,200028
Listed stock exchange	Shenzhen Stock Exchange
Registered address	Accord Pharm. Bulg., No. 15, Ba Gua Si Road, Futian District,Shenzhen,GuangdongProvince
Post code of registered address	518029
Off ce address	Accord Pharm. Bulg., No. 15, Ba Gua Si Road, Futian District,Shenzhen,GuangdongProvince
Post code of off ce address	518029
Internet web site of the Company	http://www.szaccord.com.cn
E-mail	investor@szaccord.com.cn

1

1.2 Contact person and method

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Secretary of the Board
Name Chen Changbing
Accord Pharm. Bulg., No. 15, Ba Gua Si Road,
Contact address
Futian District, Shenzhen, Guangdong Province
Telephone +(86)755 25875195, 25875222
Fax +(86)755 25875147
E-mail 0028@szaccord.com.cn
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2. Summary of Accounting Data and Financial Indexes

2.1 Major accounting data

Unit: RMB

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Increase/decrease
in this year
2010 2009 compared with 2008
that of last year
(%)
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
Total operating income (RMB) 13,064,428,148.69 10,949,936,871.58 10,997,074,919.05 18.80% 8,757,514,007.03 8,814,147,752.81
Total profi t (RMB) 339,812,368.65 260,786,881.28 260,941,320.54 30.23% 207,908,906.63 208,061,793.40
Net profi t attributable to shareholders of the
261,116,656.70 192,713,805.92 192,868,245.18 35.39% 159,789,621.10 159,942,507.87
listed company (RMB)
Net profi t attributable to shareholders of
the listed company after deducting non- 245,647,806.23 190,740,616.42 190,740,616.42 28.79% 139,335,035.00 139,335,035.00
recurring gains and losses (RMB)
Net cash fl ow arising from operating
428,159,420.65 270,845,132.05 273,860,877.17 56.34% 251,665,081.32 249,718,408.15
activities (RMB)
Increase/decrease
at the end of
this year
At the end of
At the end of 2009 compared with At the end of 2008
2010
that at the end of
last year
(%)
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
Total assets (RMB) 6,306,793,005.81 5,233,489,407.09 5,268,340,226.07 19.71% 3,944,965,333.83 3,981,028,605.89
Owners’ equity attributable to shareholders
1,052,370,309.53 822,666,137.68 847,209,892.83 24.22% 659,537,950.16 683,927,266.05
of listed company (RMB)
Share capital (Share) 288,149,400.00 288,149,400.00 288,149,400.00 0.00% 288,149,400.00 288,149,400.00
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2.2 Major fi nancial indexes

Unit: RMB

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Increase/decrease
this year compared
2010 2009 2008
with that last year
(%)
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
Basic earnings per share (RMB/Share) 0.91 0.67 0.67 35.82% 0.55 0.55
Diluted earnings per share (RMB/Share) 0.91 0.67 0.67 35.82% 0.55 0.55
Basic earnings per share after deducting
non-recurring gains and losses (RMB/ 0.85 0.66 0.66 28.79% 0.48 0.48
Share)
Weighted average return on equity (%) 27.17% 25.99% 25.86% 1.31% 25.49% 24.54%
Weighted average return on equity after
deducting non-recurring gains and losses 25.56% 26.93% 25.58% -0.02% 24.49% 21.40%
(%)
Net cash fl ow arising from operating
1.49 0.94 0.95 56.84% 0.87 0.87
activities per share (RMB/Share)
Increase/decrease
at the end of
At the end of At the end of this year compared
At the end of 2008
2010 2009 with that at the end
of last year
(%)
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
Net asset per share attributable to
shareholders of listed company (RMB/ 3.65 2.85 2.94 24.15% 2.29 2.37
Share)
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Items of non-recurring gains and losses  Applicable □ Inapplicable

Unit: RMB

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Items of non-recurring gains and losses Amount Notes (If applicable)
Gains and losses from the disposal of non-current assets 1,969,629.82
Governmental subsidy reckoned into current gains and losses, but
closely relevant to the Company’s business except for the governmental
8,221,739.90
subsidy enjoyed in quota or ration according to the national general
standards
Current net gains/losses of the subsidiaries from period-begin to
consolidated date occurred from enterprise merger under the common -4,607,349.97
control
Switch back of provision for depreciation of account receivable which
6,926,932.01
was singly taken depreciation test
Other non-operating income and expenditure except for the above items 6,374,202.97
Infl uenced amount of income tax -3,132,301.17
Infl uenced amount of minority shareholders’ equity -284,003.09
Total 15,468,850.47 —
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2.3 Differences between CAS and IAS □ Applicable  Inapplicable

3. Financial Report

3.1 Auditor’s opinions

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Audited or not Yes
Auditor’s opinions Standard unqualifi ed auditor’s opinions
Ref. No. of auditor’s report PWC Zhongtian SZ(2011) No. 10022
Title of auditor’s report Auditor’s Report
Receiver of auditor’s report Chi Guoguang
We have audited the accompanying fi nancial statements of Shenzhen Accord Pharmaceutical
Co., Ltd. (“the Company”), including balance sheet and consolidated balance sheet of
31 December 2010, and profi t statement and consolidated profi t statement, and cash fl ow
Introduction paragraph
statement and consolidated cash fl ow statement, and statement on changes of owners’ equity
and consolidated statement on changes of owners’ equity for the year ended, and notes to the
fi nancial statements for the year ended.
The Company’s management is responsible for the preparation and fair presentation of
the fi nancial statements in accordance with the Enterprises Accounting Standards and
Responsibilities paragraph Enterprises Accounting System. The responsibility includes: (1) designing, performing and
of the management on the maintaining internal control related to the preparation and fair presentation of the fi nancial
fi nancial statements statements, which are free from material misstatements whether due to frauds or errors;
(2) choosing and applying right accounting policies; (3) making reasonable accounting
estimates.
Our responsibility is to express an audit opinion on these fi nancial statements based on our
audit. We performed our audit in accordance with Chinese Certifi ed Public Accountants
Auditing Standards. Those standards require us to comply with professional ethics, and to
plan and perform our audit so as to obtain reasonable assurance about whether the fi nancial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures of the fi nancial statements. The selective audit procedures depend on auditor’s
Responsibilities paragraph of judgment, including the evaluation of the risk of material misstatement of the consolidated
the CPA fi nancial statements due to frauds or errors. When evaluating risk, we consider internal
control related to fi nancial statements, in order to design auditing procedures, but not for
the purpose of expressing an opinion on the internal control’s effectiveness. An audit
also includes assessing the appropriateness of the accounting policies adopted and the
reasonableness of the accounting estimates made by management, as well as evaluating the
overall presentation of the fi nancial statements.
We believe that we have obtained suffi cient and appropriate audit evidences to provide a
basis for our audit opinion..
In our opinion, the Company’s fi nancial statements have been prepared in accordance with
the Enterprises Accounting Standards and Enterprises Accounting System, and they fairly
Paragraph of auditor’s
present, in all material respects, the fi nancial position of the Company and consolidation as
opinions
of December 31, 2010, and its operation results and consolidation as well as cash fl ows and
consolidation cash fl ow for the year ended.
Non-standard opinions
Name of audit institution Pricewaterhouse Zhongtian CPA Co., Ltd.
11/Floor, PWC Center, Enterprise World, No. 202, Hubin Road, Luwan District, Shanghai,
Address of audit institution
P.R.C
Date of auditor’s report March 18, 2011
Name of the Certifi ed Accountants
CHEN GENG TAO, TANG ZHEN FENG
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3.2 Financial statement 3.2.1 Balance Sheet

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Prepared by Shenzhen Accord Pharmaceutical Co., Ltd. December 31, 2010 Unit: RMB
Balance at period-end Balance at year-begin
Items
Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 711,789,775.66 135,498,819.87 588,405,672.15 125,541,203.80
Settlement provisions
Capital lent
Transaction fi nance asset
Notes receivable 369,169,030.47 5,038,459.89 363,025,601.60 1,758,275.85
Accounts receivable 2,866,825,102.78 282,597,465.23 2,451,433,461.71 301,349,886.88
Accounts paid in advance 101,806,030.92 3,798,560.90 85,798,584.95 1,042,226.64
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Interest receivable
Dividend receivable 8,271,829.94
Other receivables 43,110,999.74 557,324,957.67 63,596,027.23 379,622,614.20
Purchase restituted fi nance asset
Inventories 1,156,329,658.80 117,829,120.30 909,077,496.35 96,332,120.70
Non-current asset due within one year
Other current assets
Total current assets 5,249,030,598.37 1,102,087,383.86 4,469,608,673.93 905,646,328.07
Non-current assets:
Granted loans and advances
Finance asset available for sales
Held-to-maturity securities
Long-term account receivable
Long-term equity investment 85,275,251.06 1,272,402,665.15 58,334,840.95 642,597,981.98
Investment property 87,293,333.76 12,033,619.61 57,973,532.97 7,572,670.36
Fixed assets 492,557,743.43 35,677,614.01 428,390,030.21 28,578,457.35
Construction in progress 108,301,338.12 253,886.24 46,146,183.50 253,886.24
Engineering material
Disposal of fi xed asset
Productive biological asset
Oil and gas asset
Intangible assets 129,175,366.09 28,837,698.02 116,637,778.29 29,653,420.36
Expense on Research and Development 2,580,662.85 235,375.01
Goodwill 53,555,677.09 34,153,027.89
Long-term expenses to be apportioned 19,811,611.24 9,161,222.49 7,456,046.95 184,277.86
Deferred income tax asset 31,083,592.24 2,958,699.75 12,871,196.24
Other non-current asset 48,127,831.56 0.00 36,533,540.13
Total non-current asset 1,057,762,407.44 1,361,325,405.27 798,731,552.14 708,840,694.15
Total assets 6,306,793,005.81 2,463,412,789.13 5,268,340,226.07 1,614,487,022.22
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Balance at period-end Balance at year-begin
Items
Consolidation Parent Company Consolidation Parent Company
Current liabilities:
Short-term loans 975,475,884.21 349,183,556.07 944,189,604.46 347,023,220.37
Loan from central bank
Absorbing deposit and interbank deposit
Capital borrowed
Transaction fi nancial liabilities
Notes payable 1,448,622,490.72 227,394,114.09 1,104,950,330.28 167,985,468.09
Accounts payable 2,003,566,517.62 238,636,669.29 1,706,142,277.91 246,909,317.09
Accounts received in advance 100,322,387.21 48,490.62 82,498,031.55 7,015,577.03
Selling fi nancial asset of repurchase
Commission charge and commission payable
Wage payable 127,191,717.25 22,612,110.63 110,138,050.76 21,952,780.15
Taxes payable 39,720,311.72 2,957,612.62 36,717,779.36 122,667.32
Interest payable 2,122,314.90 596,047.97 589,050.00 361,845.00
Dividend payable
Other accounts payable 345,011,293.80 874,380,433.82 246,835,253.81 263,570,295.56
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Non-current liabilities due within 1 year 30,000,000.00 0.00
Other current liabilities
Total current liabilities 5,042,032,917.43 1,715,809,035.11 4,262,060,378.13 1,054,941,170.61
Non-current liabilities:
Long-term loans 30,000,000.00 30,000,000.00
Bonds payable
Long-term account payable 40,777.80 46,019.40
Special accounts payable 4,755,000.00 1,320,000.00 2,555,000.00 1,320,000.00
Projected liabilities
Deferred income tax liabilities 22,709,093.70 3,773,319.00 25,525,421.76 3,773,319.00
Other non-current liabilities 75,809,855.74 45,478,550.21
Total non-current liabilities 133,314,727.24 5,093,319.00 103,604,991.37 5,093,319.00
Total liabilities 5,175,347,644.67 1,720,902,354.11 4,365,665,369.50 1,060,034,489.61
Owner’s equity (or shareholders’ equity):
Paid-in capital (or share capital) 288,149,400.00 288,149,400.00 288,149,400.00 288,149,400.00
Capital public reserve 5,030,338.57 13,828,726.93 31,568,488.40 13,828,726.93
Less: Inventory shares
Reasonable reserve
Surplus public reserve 39,981,268.55 39,981,268.55 17,573,057.11 17,573,057.11
Provision of general risk
Retained profi t 719,209,302.41 400,551,039.54 509,918,947.32 234,901,348.57
Balance difference of foreign currency translation
Total owner’s equity attributable to parent company 1,052,370,309.53 742,510,435.02 847,209,892.83 554,452,532.61
Minority interests 79,075,051.61 55,464,963.74
Total owner’s equity 1,131,445,361.14 742,510,435.02 902,674,856.57 554,452,532.61
Total liabilities and owner’s equity 6,306,793,005.81 2,463,412,789.13 5,268,340,226.07 1,614,487,022.22
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Prepared by Shenzhen Accord Pharmaceutical Co., Ltd. January–December, 2010 Unit: RMB
Amount in this period Amount in last period
Items
Consolidation Parent Company Consolidation Parent Company
I. Total operating income 13,064,428,148.69 1,793,332,482.65 10,997,074,919.05 1,643,866,356.16
Including: Operating income 13,064,428,148.69 1,793,332,482.65 10,997,074,919.05 1,643,866,356.16
Interest income
Insurance gained
Commission charge and commission
income
II. Total operating cost 12,768,794,568.43 1,817,555,059.67 10,777,724,798.48 1,666,593,920.05
Including: Operating cost 11,925,655,507.94 1,703,659,976.45 10,041,207,840.07 1,562,600,505.75
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
Operating tax and extras 19,918,513.42 2,537,599.61 15,870,831.05 1,276,051.88
Sales expenses 430,588,573.47 55,411,427.41 402,780,881.44 49,720,215.81
Administration expenses 300,875,369.90 36,690,738.84 255,178,530.07 46,318,174.91
Financial expenses 82,538,641.49 25,081,726.33 50,356,642.60 3,035,528.61
Losses of devaluation of asset 9,217,962.21 -5,826,408.97 12,330,073.25 3,643,443.09
Add: Changing income of fair value (Loss is listed
with “–”)
Investment income (Loss is listed with “–”) 27,265,825.11 241,256,657.31 32,577,605.29 194,681,096.90
Including: Investment income on affi liated company
27,224,583.81 23,078,755.17 20,878,151.35 17,186,060.02
and joint venture
Exchange income (Loss is listed with “–”)
III. Operating profi t (Loss is listed with “–”) 322,899,405.37 217,034,080.29 251,927,725.86 171,953,533.01
Add: Non-operating income 20,244,943.93 6,830,676.01 10,271,959.88 3,931,661.39
Less: Non-operating expense 3,331,980.65 322,844.62 1,258,365.20 154,623.30
Including: Disposal loss of non-current asset 548,476.80 10,332.02 544,477.77 16,973.47
IV. Total Profi t (Loss is listed with “–”) 339,812,368.65 223,541,911.68 260,941,320.54 175,730,571.10
Less: Income tax 75,587,949.59 -540,202.73 62,527,277.15
V. Net profi t (Net loss is listed with “–”) 264,224,419.06 224,082,114.41 198,414,043.39 175,730,571.10
Net profi t attributable to owner’s equity of parent
261,116,656.70 224,082,114.41 192,868,245.18 175,730,571.10
company
Minority shareholders’ gains and losses 3,107,762.36 5,545,798.21
VI. Earnings per share
i. Basic earnings per share 0.91 0.00 0.67 0.00
ii. Diluted earnings per share 0.91 0.00 0.67 0.00
VII. Other consolidated income
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Amount in this period Amount in last period
Items
Consolidation Parent Company Consolidation Parent Company
VIII. Total consolidated income 264,224,419.06 224,082,114.41 198,414,043.39 175,730,571.10
Total consolidated income attributable to
261,116,656.70 224,082,114.41 192,868,245.18 175,730,571.10
owners of parent company
Total consolidated income attributable to
3,107,762.36 5,545,798.21
minority shareholders
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Concerning the enterprise consolidation under same control in the period, the combined party realized net profi t of RMB -8,757,555.55 before consolidation.

3.2.3 Cash Flow Statement

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Prepared by Shenzhen Accord Pharmaceutical Co., Ltd. January–December, 2010 Unit: RMB
Amount in this period Amount in last period
Items
Consolidation Parent Company Consolidation Parent Company
I. Cash fl ows arising from operating activities:
Cash received from selling commodities and providing
13,371,120,839.94 2,000,448,923.57 12,006,759,276.41 1,586,303,501.03
labor services
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from other fi nancial
institution
Cash received from original insurance contract fee
Net cash received from reinsurance business
Insured savings and net increase of investment
Net increase of disposal of transaction fi nancial asset
Cash received from interest, commission charge and
commission
Net increase of capital borrowed
Net increase of returned business capital
Write-back of tax received 1,011,514.12 766,339.85
Other cash received concerning operating activities 40,506,959.14 33,946,251.43 30,146,665.13 42,365,406.95
Subtotal of cash infl ow arising from operating activities 13,412,639,313.20 2,034,395,175.00 12,037,672,281.39 1,628,668,907.98
Cash paid for purchasing commodities and receiving
12,071,170,836.94 1,814,811,040.08 10,792,536,493.55 1,578,692,564.42
labor service
Net increase of customer loans and advances
Net increase of deposits in central bank and interbank
Cash paid for original insurance contract compensation
Cash paid for interest, commission charge and
commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 369,596,005.66 32,286,351.44 317,574,769.18 35,442,437.59
Taxes paid 289,543,090.68 24,337,680.93 227,174,658.46 21,012,066.83
Other cash paid concerning operating activities 254,169,959.27 68,362,099.93 426,525,483.03 119,308,513.34
Subtotal of cash outfl ow arising from operating
12,984,479,892.55 1,939,797,172.38 11,763,811,404.22 1,754,455,582.18
activities
Net cash fl ows arising from operating activities 428,159,420.65 94,598,002.62 273,860,877.17 -125,786,674.20
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Amount in this period Amount in last period
Items
Consolidation Parent Company Consolidation Parent Company
II. Cash fl ows arising from investing activities:
Cash received from recovering investment 45,000,000.00
Cash received from investment income 8,271,829.94 120,525,780.70 3,618.16 157,015,678.55
Net cash received from disposal of fi xed, intangible
8,584,335.70 66,884.11 6,924,402.43 5,243,565.12
and other long-term assets
Net cash received from disposal of subsidiaries and
325,415.00 59,988,453.43 65,613,100.00
other units
Other cash received concerning investing activities 527,181,026.96
Subtotal of cash infl ow from investing activities 17,181,580.64 692,773,691.77 66,916,474.02 227,872,343.67
Cash paid for purchasing fi xed, intangible and other
177,992,154.66 24,348,271.94 103,671,283.81 3,523,755.18
long-term assets
Cash paid for investment 593,660,000.00 30,750,000.00
Net increase of mortgaged loans
Net cash received from subsidiaries and other units 127,971,282.96 65,675,390.00 112,284,233.53 256,327,901.88
Other cash paid concerning investing activities 688,107,915.16 8,100,000.00 5,000,000.00
Subtotal of cash outfl ow from investing activities 305,963,437.62 1,371,791,577.10 224,055,517.34 295,601,657.06
Net cash fl ows arising from investing activities -288,781,856.98 -679,017,885.33 -157,139,043.32 -67,729,313.39
III. Cash fl ows arising from fi nancing activities
Cash received from absorbing investment 9,800,000.00
Including: Cash received from absorbing minority
9,800,000.00
shareholders’ investment by subsidiaries
Cash received from loans 711,726,701.18 970,000,000.00 1,524,036,889.20 703,710,793.61
Cash received from issuing bonds
Other cash received concerning fi nancing activities 950,000,000.00 1,018,500,644.34 505,816,825.31
Subtotal of cash infl ow from fi nancing activities 1,671,526,701.18 1,998,500,644.34 1,524,036,889.20 1,209,527,618.92
Cash paid for settling debts 704,180,953.09 1,010,000,000.00 1,264,359,623.02 436,859,302.49
Cash paid for dividend and profi t distributing or
106,597,670.36 69,084,760.92 87,440,842.08 43,410,324.18
interest paying
Including: Dividend and profi t of minority shareholder
4,900,000.00
paid by subsidiaries
Other cash paid concerning fi nancing activities 900,000,000.00 310,038,384.64 95,000,000.00 477,570,384.51
Subtotal of cash outfl ow from fi nancing activities 1,710,778,623.45 1,389,123,145.56 1,446,800,465.10 957,840,011.18
Net cash fl ows arising from fi nancing activities -39,251,922.27 599,377,498.78 77,236,424.10 251,687,607.74
IV. Infl uence on cash due to fl uctuation in exchange rate -440.37 -3,389.48
V. Net increase of cash and cash equivalents 100,125,201.03 14,957,616.07 193,954,868.47 58,171,620.15
Add: Balance of cash and cash equivalents at the
582,750,672.15 120,541,203.80 388,795,803.68 62,369,583.65
period-begin
VI. Balance of cash and cash equivalents at the period-end 682,875,873.18 135,498,819.87 582,750,672.15 120,541,203.80
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9

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equity
Total owners’ 705,310,729.35 705,310,729.35 197,364,127.22 198,414,043.39 198,414,043.39 -6,909,345.28 -6,909,345.28 5,859,429.11 -33,728,019.86 39,587,448.97 902,674,856.57
equity -24,500.00
Minority’s 21,383,463.30 21,383,463.30 34,081,500.44 5,545,798.21 5,545,798.21 33,460,202.23 33,460,202.23 -4,924,500.00 -4,900,000.00 55,464,963.74
Others
profi t
Retained
328,312,129.47 328,312,129.47 181,606,817.85 192,868,245.18 192,868,245.18 -4,497,799.33 -4,497,799.33 -6,763,628.00 -17,573,057.11 -28,828,019.86 39,637,448.97 509,918,947.32
General risk provision
Amount in last year
Surplus reserves 9,303,064.31 9,303,064.31 8,269,992.80 -9,303,064.31 -9,303,064.31 17,573,057.11 17,573,057.11 17,573,057.11
reserve
Reasonable
Owners’ equity attributable to the parent company
Stock
Less: Treasury
Capital reserves 58,162,672.27 58,162,672.27 -26,594,183.87 -26,568,683.87 -26,568,683.87 -25,500.00 -25,500.00 31,568,488.40
Paid-up capital (Share capital) 288,149,400.00 288,149,400.00 288,149,400.00
equity
Total owners’ 902,674,856.57 902,674,856.57 228,770,504.57 264,224,419.06 264,224,419.06 -6,638,974.49 20,502,325.51 -27,141,300.00 -28,814,940.00 -28,814,940.00 1,131,445,361.14
equity
Minority’s 55,464,963.74 55,464,963.74 23,610,087.87 3,107,762.36 3,107,762.36 20,502,325.51 20,502,325.51 79,075,051.61
Others
profi t
Retained -603,150.17 -603,150.17
509,918,947.32 509,918,947.32 209,290,355.09 261,116,656.70 261,116,656.70 -51,223,151.44 -22,408,211.44 -28,814,940.00 719,209,302.41
General risk provision
Amount in this report period Surplus reserves 17,573,057.11 17,573,057.11 22,408,211.44 22,408,211.44 22,408,211.44 39,981,268.55
reserve
Reasonable
Owners’ equity attributable to the parent company
Less:
Treasury Stock
Capital reserves 31,568,488.40 31,568,488.40 -26,538,149.83 -26,538,149.83 -26,538,149.83 5,030,338.57
Paid-up capital
(Share capital) 288,149,400.00 288,149,400.00 288,149,400.00
Items
I. Balance at the end of the last year Add: Changes of accounting policy Error correction of the last period Others II. Balance at the beginning of this year III. Increase/Decrease in this year (Decrease is listed with “–”) (I) Net profi t (II) Other consolidated income Subtotal of (I) and (II) (III) Owners’ devoted and decreased capital 1. Owners’ devoted capital 2. Amount calculated into owners’ equity paid in shares 3. Others (IV) Profi t distribution 1. Withdrawal of surplus reserves 2. Withdrawal of general risk provisions 3. Distribution for owners (shareholders) 4. Others (V) Carrying forward internal owners’ equity 1. Capital reserves conversed to capital (share capital) 2. Surplus reserves conversed to capital (share capital) 3. Remedying loss with surplus reserve 4. Others (VI) Reasonable reserve 1. Withdrawal in the report period 2. Usage in the report period (VII) Other IV. Balance at the end of the report period
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equity
Total owners’ 425,096,741.32 425,096,741.32 129,355,791.29 175,730,571.10 175,730,571.10 -17,546,759.95 -17,546,759.95 -28,828,019.86 -28,828,019.86 554,452,532.61
Retained profi t 121,657,269.56 121,657,269.56 113,244,079.01 175,730,571.10 175,730,571.10 -16,085,415.12 -16,085,415.12 -46,401,076.97 -17,573,057.11 -28,828,019.86 234,901,348.57
General risk provision
Surplus reserves 12,781,301.82 12,781,301.82 4,791,755.29 -12,781,301.82 -12,781,301.82 17,573,057.11 17,573,057.11 17,573,057.11
Amount in last year Reasonable reserve
Stock
Less: Treasury
Capital reserves 2,508,769.94 2,508,769.94 11,319,956.99 11,319,956.99 11,319,956.99 13,828,726.93
Paid-up capital (Share capital) 288,149,400.00 288,149,400.00 288,149,400.00
equity
Total owners’ 554,452,532.61 554,452,532.61 188,057,902.41 224,082,114.41 224,082,114.41 -7,209,272.00 -7,209,272.00 -28,814,940.00 -28,814,940.00 742,510,435.02
Retained profi t 234,901,348.57 234,901,348.57 165,649,690.97 224,082,114.41 224,082,114.41 -7,209,272.00 -7,209,272.00 -51,223,151.44 -22,408,211.44 -28,814,940.00 400,551,039.54
General risk provision
Surplus reserves 17,573,057.11 17,573,057.11 22,408,211.44 22,408,211.44 22,408,211.44 39,981,268.55
Amount in this report period reserve
Reasonable
Stock
Less: Treasury
Capital reserves 13,828,726.93 13,828,726.93 13,828,726.93
Paid-up capital (Share capital) 288,149,400.00 288,149,400.00 288,149,400.00
Items
I. Balance at the end of the last year Add: Changes of accounting policy Error correction of the last period Others II. Balance at the beginning of this year III. Increase/Decrease in this year (Decrease is listed with “–”) (I) Net profi t (II) Other consolidated income Subtotal of (I) and (II) (III) Owners’ devoted and decreased capital 1. Owners’ devoted capital 2. Amount calculated into owners’ equity paid in shares 3. Others (IV) Profi t distribution 1. Withdrawal of surplus reserves 2. Withdrawal of general risk provisions 3. Distribution for owners (shareholders) 4. Others (V) Carrying forward internal owners’ equity 1. Capital reserves conversed to capital (share capital) 2. Surplus reserves conversed to capital (share capital) 3. Remedying loss with profi t surplus 4. Others (VI) Reasonable reserve 1. Withdrawal in the report period 2. Usage in the report period (VII) Other IV. Balance at the end of the report period
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3.3 Explanation on changes of accounting policy, accounting estimation and settlement method compared with the latest annual report □ Applicable  Inapplicable

3.4 Contents, correction amount, reason and its infl uence of signifi cant accounting errors □ Applicable  Inapplicable

3.5 Explanation on change of consolidated scope compared with the latest annual report  Applicable □ Inapplicable

1. There are 4 enterprises that consolidated in the year for newly increased:

Purchased the enterprises under different control, Yanfeng Medical, Sinopharm Meizhou and Sinopharm Huizhou included;

Sinopharm TCM acquisition, a company under the same control. Retroactive adjustment on the comparative statement of 2009.

By order of the Board of Sinopharm Group Co. Ltd. She Lulin Chairman

Shanghai, the People’s Republic of China 22 March 2011

As at the date of this announcement, the executive director of the Company is Mr. Wei Yulin; the non-executive directors of the Company are Mr. She Lulin, Mr. Wang Qunbin, Mr. Chen Wenhao, Mr. Zhou Bin, Mr. Deng Jindong, Mr. Chen Qiyu, Mr. Fan Banghan and Mr. Liu Hailiang; the independent non-executive directors of the Company are Mr. Wang Fanghua, Mr. Xie Rong, Mr. Tao Wuping and Mr. Zhou Bajun.

• The Company is registered as a non-Hong Kong company under Part XI of the Companies Ordinance (Chapter 32 of the Laws of Hong Kong) under its Chinese name and the English name “Sinopharm Group Co. Ltd.”

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