健康元:健康元药业集团股份有限公司2021年第三季度报告（英文版）

Joincare Pharmaceutical Group Industry Co. Ltd. 2021 Third Quarterly Report
Stock code：600380 Stock abbreviation：健康元
Joincare Pharmaceutical Group Industry Co. Ltd.2021 Third Quarterly Report
Board of Directors (the “Board”) and all directors of the Company hereby warrant that there are no false
representations misleading statements or material omissions contained in the third quarterly report (the “Report”)
and severally and jointly accept responsibility for the truthfulness accuracy and completeness of the contents of
the Report.IMPORTANT NOTICE:
· The Board the Supervisory Committee and the directors supervisors and senior management of the
Company hereby warrant the truthfulness accuracy and completeness of the contents of the Report
and that there are no false representations misleading statements or material omissions contained in
the Report and severally and jointly accept responsibility.· The person-in-charge of the Company the person-in-charge of the Company's accounting work and
the person-in-charge of the accounting department (the head of the accounting department) hereby
warrant the truthfulness accuracy and completeness of the financial statements contained in the
Report.· Whether the third quarterly financial statements are audited
□Applicable √N/A
· The Report is prepared in both Chinese and English. In case of any ambiguity in the understanding
of the Chinese and English texts the Chinese version shall prevail.
1 / 18Joincare Pharmaceutical Group Industry Co. Ltd. 2021 Third Quarterly Report
I Principal Financial Data
(I) Principal accounting data and financial indicators
Unit: Yuan Currency: RMB
From the beginning
The Reporting of the year to the
Period Year-on-Year end of the Year-on-Year Change
Item
(July-September Change (%) Reporting Period (%)
2021) (January –
September 2021)
Revenues 4098276714.19 12.98 11933648988.85 18.12
Net profit attributable to
Shareholders of the listed 321327690.20 27.91 1008675184.73 8.76
company
Net profit attributable to
Shareholders of the listed
company after deducting 321676905.90 52.36 919569233.33 14.45
the extraordinary gain or
loss
Net cash flow from
N/A N/A 1621169704.58 -18.31
operating activities
Basic earnings per share
0.164025.670.51547.64
(RMB/share)
Diluted earnings per share
0.163826.490.51427.96
(RMB/share)
Weighted average return on Increased by 0.47 Increased by 0.17
2.858.89
net assets (%) percentage point percentage point
End of the
End of the Previous Year Change (%)
Reporting Period
Total assets 29154637491.82 28156977599.07 3.54
Owners’ equity attributable
to Shareholders of the listed 11314080616.51 11096125890.51 1.96
company
Note: 1. “Reporting Period” refers to the 3rd Quarter of 2021 from July 1 2021 to September 30 2021.
2. From January to September 2021 the Company recorded operating revenues of RMB 11934
million representing an increase of 18.12% year-on-year; the main driver of the growth is significant
increasing sales volume of main product categories in key specialist arenas of the Chemical drug
preparation segment. Revenues from chemical drug preparation products amounted to RMB 6907
million representing an increase of 40.96% year-on-year of which revenues from Inhalation products
amounted to 274 million representing an increase of 957.88% year-on-year; Revenues from
anti-infective drugs amounted to RMB1053 million representing a decrease of 0.19% year-on-year;
Revenues from gastroenterology products amounted to RMB 2993 million representing an increase of
68.66% year-on-year; Revenues from gonadotropic hormones products amounted to RMB 1978 million
representing an increase of 37.75% year-on-year; Revenues from psychiatric products amounted to
RMB 306 million representing an increase of 49.77% year-on-year. Revenues from APIs and
intermediates amounted to RMB 3441 million representing an increase of 17.51% year-on-year.Revenues from traditional Chinese drug preparation products amounted to RMB 853 million
representing a decrease of 10.53% year-on-year. Revenues from diagnostic reagents and equipment
products amounted to RMB552 million representing a decrease of 52.64% year-on-year. Revenues from
health care products amounted to RMB 86 million representing a decrease of 20.28% year-on-year.
2 / 18Joincare Pharmaceutical Group Industry Co. Ltd. 2021 Third Quarterly Report
(Ⅱ) Items and amounts of extraordinary gains and losses
Unit: Yuan Currency: RMB
Amount from the
beginning of the year to
Amounts for the
Item the end of the Reporting Description
Reporting Period
Period (January –
September 2021)
Gains and losses on disposal of
non-current assets (Including the Proceeds from disposal of
528115.3820878916.52
write-off part of the provision for fixed assetsimpairment of assets）
Government grants included in profit
and loss for the Period (except for
government grants closely associated Government grants included
with normal corporate businesses 45995421.31 175456418.58 in profit and loss for the
entitled at fixed amount or fixed level Period
according to national policies and
national unified standards)
Gains and losses on fair value changes
of financial assets held for trading
derivative financial assets financial
liabilities held for trading derivative Gains or losses arising from
financial liabilities and investment changes in fair value of
income generated on disposal of financial assets/liabilities held
financial assets held for trading for trading and investment
-48806320.506742628.05
derivative financial assets financial gains from holding and
liabilities held for trading derivative disposal of financial
financial liabilities and other debt assets/liabilities held for
investments except for effective trading
hedging activities related to the
ordinary operating business of the
Company
Other non-operating
Other non-operating revenues and
Revenues and non-operating
non-operating expenditures apart from -12046187.71 -13444794.44
expenditures apart from the
the above items
above items
Effect of the above items on
Less: Effect on income tax 3376118.90 29574335.32
income tax
The portion of the above
Effect on minority interests after
-17355874.72 70952881.99 items to which minority
tax
shareholders are entitled
Total -349215.70 89105951.40
The explanation on the recognitions of the items of extraordinary gains and losses as set out in the“Interpretative Announcement for Information Disclosure of Companies that Issue Securities to thePublic No. 1 – Extraordinary Gains or Losses” as items of recurring gains and losses
□Applicable √N/A
(Ⅲ) Changes and the reasons for changes in principal accounting data and financial indicators
√Applicable □N/A
3 / 18Joincare Pharmaceutical Group Industry Co. Ltd. 2021 Third Quarterly Report
Change in proportion（%）
Name of item Explanation
(2021Q3 compared with 2020 Q3)
Net profit attributable to
Mainly due to the significant growth of
Shareholders of the listed
the sales revenues from the chemical
company after deducting the 52.36
drugs which is the main driver of the
extraordinary gain or loss
growth of the net incomes.
(2021 Q3 )
(IV) Substantial changes of other items in the Financial Statements and financial indicators and
reasons thereof
Unit Yuan Currency：RMB
Change in
Balance Sheet 2021/09/30 2020/12/31 proportion Main Reason
（%）
Mainly due to the fact that the subsidiary Livzon
Group was allocated the shares of Beam
Therapeutics Inc. (NASDAQ: BEAM) originally
Financial assets held held by SCC VENTURE VII 2018-C L.P. pursuant
189909950.4128328748.72570.38
for trading to the investment agreement as a result of the
proposed deregistration of SCC VENTURE VII
2018-C L.P. in which Livzon Group made
investment.Mainly due to the increase in procurement amounts
Prepayments 522396275.49 209926040.57 148.85
and costs prepaid for materials.Mainly due to the receipt of consideration for the
Non-current assets
8634022.41 19934376.07 -56.69 transfer of some equity interest in a controlling
due within one year
subsidiary of the subsidiary Livzon Group.Mainly due to the subsidiary Livzon Group’s
Long-term equity acquisition of 40% equity interest in Tianjin
1418022709.96628279599.73125.70
investments Tongrentang Group Co. Ltd. (天津同仁堂集团股
份有限公司).Other non-current Mainly due to the increase in prepayment for
608764830.86373557910.7262.96
assets engineering equipment.Financial liabilities Mainly due to the increased losses from foreign
39018.28212.0718298.77
held for trading exchange forward contracts owned by Livzon Group
Mainly due to the payment for the special funds of
Employee benefits
280937529.46 476521798.51 -41.04 the “Medium to Long-term Business Partner SharepayablesOwnership Scheme”.Mainly due to some contract amounts received in
Other current advance were transferred to revenue upon fulfilling
3343666.926267034.79-46.65
liabilities the conditions for revenue recognition and the
decrease in tax for items pending for settlement.Mainly due to the new bank borrowings of the
Long-term loans 688100000.00 360324027.48 90.97
subsidiary Livzon Group.Mainly due to the subsidiary Livzon Group’s
reclassification of leasing liabilities due within one
Leasing liabilities 6042261.51 9817780.04 -38.46
year to non-current liabilities due within one year
caused by the change in credit period.Mainly due to Livzon Group’s transfer of other
Other comprehensive comprehensive income recognized in the previous
25758615.13116300559.28-77.85
income period into retained earnings after the disposal of
investment in other equity instruments.Change in
Income Statement 2021 Jan-Sep 2020 Jan-Sep proportion Main Reason
（%）
Mainly due to the increase in selling expenses in line
with a prominent growth in the sales revenue of drug
Selling expenses 3820420328.92 2933764220.56 30.22
preparation products during the Period as a result of
the Company’s increased marketing efforts for
4 / 18Joincare Pharmaceutical Group Industry Co. Ltd. 2021 Third Quarterly Report
Inhalation gastroenterology and psychiatry products
during the Period.Mainly due to an increase in R&D investment as a
result of actively advancing the R&D progress of
Research andproject of innovative drug “RecombinantDevelopment(“R&D”) 959056925.14 695722058.28 37.85SARS-CoV-2 Fusion Protein Vaccine” and the
expenses
expansion of the scientific research team during the
Period.Mainly due to an increase in interest expenses as a
result of an increase in loans during the Period and
Finance expenses -43302001.92 -92039637.31 N/A lower interest income than the previous period as a
result of a decrease in deposit interest rate and no
interest settled for some unexpired deposits.Mainly due to the the subsidiary Livzon Group’s
income from the disposal of the equity interest in
Investment income 69260277.50 140803971.20 -50.81
Jiangsu Ni Ke Medical Device Co. Ltd. (江苏尼科
医疗器械有限公司) in the previous period.Mainly due to fluctuations in the market value of
Gains from changes in
-18014545.96 6163867.32 -392.26 investment in securities held by the subsidiary
fair value
Livzon Group.Credit impairment Mainly due to the increase in the expected credit
-10549870.63-3974299.64165.45
loss loss of receivables.Mainly due to the increase in the provision for
Asset impairment loss -35798711.62 -26883492.66 33.16
inventory depreciation.Gains from disposal Mainly due to the gains from the external disposal of
18357859.21 -43950.50 N/A
of assets Land use rights during the Period.Change in
Cash Flow Statement 2021 Jan-Sep 2020 Jan-Sep proportion Main Reason
（%）
Mainly due to the subsidiary Livzon Group’s
Subtotal of cash payment of consideration for the Livzon’s
outflow from 1739746862.49 618514702.58 181.28 acquisition of 40% equity interest in Tianjin
investing activities Tongrentang Group Co. Ltd. (天津同仁堂集团股
份有限公司).Mainly due to the subsidiary Livzon Group’s
Net cash flow from payment of consideration for the acquisition of 40%
-1509334937.50 -402448366.98 N/A
investing activities equity interest in Tianjin Tongrentang Group Co.Ltd. (天津同仁堂集团股份有限公司).Effect of changes in Mainly due to the decrease of the subsidiary Livzon
foreign exchange rates Group’s exchange losses on cash held in foreign
-20822588.77 -36878975.00 N/A
on cash and cash currencies as a result of the changes in exchange
equivalents rates.Mainly due to the subsidiary Livzon Group’s
Net increase in cash payment of consideration for the acquisition of 40%
-1692759711.75 -655783619.10 N/A
and cash equivalents equity interest in Tianjin Tongrentang Group Co.Ltd. (天津同仁堂集团股份有限公司).II Shareholders' Information
(I) Table of the total number of ordinary shareholders the number of preferred shareholders with
resumed voting rights and shareholdings of the top 10 shareholders
Unit: Shares
Total number of preferred shareholders
Total number of ordinary shareholders at
111259 with resumed voting rights at the end of 0
the end of the Reporting Period
the Reporting Period (if any)
Shareholdings of the top 10 shareholders
Nature of Number of Percentage Number of
Name of shareholders Pledge mark or lock-up
shareholders shares (%) shares held
5 / 18Joincare Pharmaceutical Group Industry Co. Ltd. 2021 Third Quarterly Report
with selling
Share
restrictions Number
status
Domestic
Shenzhen Baiyeyuan Investment Co.non-state-owned 895653653 47.01 0 Pledge 95679725
Ltd.*(深圳市百业源投资有限公司)
legal person
Hong Kong Securities Clearing
Unknown 88941864 4.67 0 Unknown
Company Limited
Might Seasons Limited Overseas legal
71859334 3.77 0 Unknown
(鸿信行有限公司) person
108 portfolio of national social security
Unknown 12461721 0.65 0 Unknown
fund
16011 portfolio of basic endowment
Unknown 12119743 0.64 0 Unknown
insurance fund
Overseas legal
Abu Dhabi Investment Authority 12018189 0.63 0 Unknown
person
Hua Life Insurance Co. Ltd. -
Unknown 9112618 0.48 0 Unknown
proprietary investment account
Bosera Funds Management Co. Ltd. -
Unknown 8732946 0.46 0 Unknown
419 portfolio of social security funds
Domestic natural
He Zhong 7650024 0.40 0 Unknown
person
Agricultural Bank of China Limited -
China 500 Exchange Traded Open-End Unknown 6295902 0.33 0 Unknown
Index Securities Investment Fund (ETF)
Shareholdings of the top 10 shareholders without selling restrictions
Number of tradable shares held without selling Class and number of shares
Name of shareholders
restrictions Class Number
Shenzhen Baiyeyuan Investment Co. Ordinary shares
895653653895653653
Ltd.*(深圳市百业源投资有限公司) denominated in Renminbi
Hong Kong Securities Clearing Ordinary shares
8894186488941864
Company Limited denominated in Renminbi
Might Seasons Limited Ordinary shares
7185933471859334
(鸿信行有限公司) denominated in Renminbi
108 portfolio of national social security Ordinary shares
1246172112461721
fund denominated in Renminbi
16011 portfolio of basic endowment Ordinary shares
1211974312119743
insurance fund denominated in Renminbi
Ordinary shares
Abu Dhabi Investment Authority 12018189 12018189
denominated in Renminbi
Hua Life Insurance Co. Ltd. - Ordinary shares
91126189112618
proprietary investment account denominated in Renminbi
Bosera Funds Management Co. Ltd. - Ordinary shares
87329468732946
419 portfolio of social security funds denominated in Renminbi
Ordinary shares
He Zhong 7650024 7650024
denominated in Renminbi
Agricultural Bank of China Limited -
Ordinary shares
China 500 Exchange Traded Open-End 6295902 6295902
denominated in Renminbi
Index Securities Investment Fund (ETF)
There was no connection or acting-in-concert relationship between Shenzhen Baiyeyuan
Description of connection or
Investment Co. Ltd. the controlling shareholder of the Company and other shareholders;
acting-in-concert relationship of the
whether there is connection or acting-in-concert relationship among other shareholders is
above shareholders
unknown.Description of the participation of the top
10 shareholders and the top 10
Shareholder He Zhong held 850000 shares through an ordinary securities account and
shareholders without selling restriction in
6800024 shares through a customer's margin account namely 7650024 shares in total.
securities margin trading and securities
financing (if any)
As at the end of the Reporting Period the special repurchase account of the Company
Notes on the special repurchase account
(special securities repurchase account of Joincare Pharmaceutical Group Industry Co. Ltd.)
among the top 10 shareholders
owned 17459813 shares in total accounting for 0.92% of total share capital of the Company.
6 / 18Joincare Pharmaceutical Group Industry Co. Ltd. 2021 Third Quarterly Report
III Other Information
Other key information on the operations of the Company during the Reporting Period to which investors
should be reminded to pay attention
√Applicable □N/A
1. Use of Proceeds
According to the Reply to the Approval of Share Allotment of Joincare Pharmaceutical Group
Industry Co. Ltd. issued by China Securities Regulatory Commission (Zheng Jian Xu Ke [2018] No.
1284) the Company allotted 365105066 new shares to the original shareholders. The total amount of
actual proceeds from the allotment was RMB 1715993810.20; the deducted distribution expenses were
RMB 46253565.29; the net amount of proceeds was RMB 1669740244.91. As at October 16 2018
the said proceeds were in place which was validated by the Capital Verification Report of Joincare
Pharmaceutical Group Industry Co. Ltd. issued by Ruihua Certified Public Accountants (Rui Hua Yan
Zi [2018] No. 40060006).As at September 30 2021 the use of proceeds was as follows:
Unit: RMB 10000
Total Total amount Use of proceeds as Balance of proceeds
Project name amount of of proceeds at September 30 as at September 30
investment invested 2021 2021
Zhuhai Health Industry Base
98066.8476974.023386.2973587.73
Construction Project
Haibin Pharma Pingshan
Pharmaceutical Industrialization Base 125471.35 90000.00 63350.74 26649.26
Project
Total 223538.19 166974.02 66737.03 100236.99
Pursuant to the Resolution on the Temporary Replenishment of Working Capital with Idle Proceeds
considered and approved at the 37th Meeting of the 7th Session of the Board of the Company on 30
December 2020 it was agreed that the Company temporarily replenished the working capital with no
more than RMB 900 million of idle proceeds from January 1 2021 to December 31 2021 so as to
improve the use efficiency of proceeds and reduce financial expenses of the Company. Pursuant to the
Resolution on Cash Management with Idle Proceeds considered and approved it was agreed that the
Company carried out cash management with no more than RMB 250 million of idle proceeds and
purchased principal-guaranteed bank cash management products with high security and good liquidity or
deposit products with high investment incomes without prejudice to the implementation of projects
invested with proceeds and the use of proceeds. Duration of the said cash management was from January
1 2021 to December 31 2021; the funds may be used on revolving basis within the approved limit.
7 / 18Joincare Pharmaceutical Group Industry Co. Ltd. 2021 Third Quarterly Report
As at the date of disclosure of the Report the balance for temporary replenishment of working
capital was RMB 860 million. The outstanding balance for cash management with idle proceeds was
RMB 130 million.
2. Matters About Equity Incentives
Pursuant to the Resolution relating to Cancellation of Certain Share Options under the 2018 Share
Option Incentive Plan considered and approved at the 52nd Meeting of the 7th Session of the Board and
the 38th Meeting of the 7th Session of the Supervisor Committee of the Company on August 10 2021
share options under the first grant and reserved grant that have been granted but not yet exercised due to
resignation of some Incentive Participants or other reasons were canceled. The number of Incentive
Participants for the first grant was adjusted from 233 to 211 while the number of unexercised share
options under the first grant was adjusted from 9505859 to 8827859 with 678000 share options
canceled; the number of Incentive Participants for the reserved grant was adjusted from150 to 142 and
the number of unexercised share options under the reserved grant was adjusted from 3370472 to
3210472 with 160000 share options canceled. See the Announcement on the Cancellation of Certain
Share Options of Joincare Pharmaceutical Group Industry Co. Ltd. Granted but Not Yet Exercised under
the 2018 Share Option Incentive Plan (Lin 2021-098) disclosed by the Company on August 11 2021 for
details. The Company completed the above stock option cancellation on August 17 2021; the
cancellation was validated and confirmed by Shanghai Branch of China Securities Depository and
Clearing Corporation Limited.The Resolution on Fulfillment of Exercise Conditions for the Second Exercise Period of the
Reserved Grant under the 2018 Share Options Incentive Scheme was considered and approved at the
53rd Meeting of the 7th Session of the Board and the 40th Meeting of the 7th Session of the Supervisory
Committee of the Company on August 25 2021. The independent directors of the Company voiced
independent opinions on the resolution and the supervisors voiced opinions on approval of the resolution.The number of exercisable options during the second exercise period of the reserved grant under the
2018 Share Options Incentive Scheme of the Company was 2935000 and the exercise period was from
September 23 2021 to September 22 2022. The share options may be exercised on a voluntary basis.See the Announcement on Fulfillment of Exercise Conditions for the Second Exercise Period of the
Reserved Grant under the 2018 Share Options Incentive Scheme of Joincare Pharmaceutical Group
8 / 18Joincare Pharmaceutical Group Industry Co. Ltd. 2021 Third Quarterly Report
Industry Co. Ltd. (Lin 2021-107) disclosed by the Company on August 26 2021 for details.As at the end of the Reporting Period the number of options cumulatively exercised and
completing share transfer registration under the first grant and reserved grant of the 2018 Share Options
Incentive Scheme of the Company was 22459801. In 2021 Q3 the paid-in capital for exercise was
RMB 16219524.94 among which the newly registered capital was RMB 1899922 and RMB
14319602.94 was recognized as capital reserve (additional paid in capital). The exercise this time did
not impose a heavy impact on the financial status and operating results of the Company. See the
Announcement on 2021 Q3 Voluntary Exercise Results of the 2018 Share Options Incentive Scheme of
Joincare Pharmaceutical Group Industry Co. Ltd. & Changes in Shares (Lin 2021-124) disclosed by the
Company on October 9 2021 for details.
3. Matters About Share Repurchase
Pursuant to the Resolution on Share Repurchase Scheme by Way of Centralized Price Bidding and
other resolutions considered and approved at the 41st Meeting of the 7th Session of the Board and the
2021 First Extraordinary General Meeting of the Company on February 9 2021 and February 25 2021
respectively it was approved that the Company repurchased company shares by way of centralized price
bidding with its own funds or self-raised funds; the total amount of repurchase funds should be no less
than RMB 350 million (inclusive) and no more than RMB 700 million (inclusive); the repurchase price
should be no more than RMB 20/share (inclusive); the repurchase term should be no more than 12
months from the date when the repurchase scheme was approved by the General Meeting of the
Company. See the Announcement of Joincare Pharmaceutical Group Industry Co. Ltd. on the Share
Repurchase Scheme by Way of Centralized Price Bidding (Lin 2021-016) and the Announcement on the
Resolution of the 2021 First Extraordinary General Meeting of Joincare Pharmaceutical Group Industry
Co. Ltd. (Lin 2021-025) disclosed by the Company on February 10 2021 and February 26 2021 for
details. The Repurchase Report of Joincare Pharmaceutical Group Industry Co. Ltd. on Share
Repurchase by Way of Centralized Price Bidding (Lin 2021-027) was disclosed by the Company on
March 5 2021.As at September 14 2021 the Company cumulatively repurchased 55135296 shares by way of
centralized price bidding representing 2.81% of total share capital of the Company (1959977436
shares); the maximum repurchase price was RMB 16.92/share; the minimum repurchase price was RMB
9 / 18Joincare Pharmaceutical Group Industry Co. Ltd. 2021 Third Quarterly Report
10.80/share; the average repurchase price was RMB 12.69/share; and the total amount paid was RMB
699900526.87 (including commissions). The Company completed the cancellation of repurchased
shares with the Shanghai Branch of China Securities Depository and Clearing Corporation Limited on
September 16 2021. See the Announcement of Joincare Pharmaceutical Group Industry Co. Ltd. on the
Results of Share Repurchase & Changes in Shares (Lin 2021-122) disclosed by the Company on
September 16 2021 for details.
4. Medium to Long-term Business Partner Share Ownership Scheme
Pursuant to the Resolution on the First Phase Ownership Scheme under Medium to Long-term
Business Partner Share Ownership Scheme of the Company and its Summary considered and approved
at the 48th Meeting of the 7th Session of the Board on June 10 2021 and the 2021 Second Extraordinary
General Meeting on June 29 2021 the Company compiled the First Phase Ownership Scheme under
Medium to Long-term Business Partner Share Ownership Scheme of Joincare Pharmaceutical Group
Industry Co. Ltd. (hereinafter referred to as this "Scheme") and its Summary to guide the
implementation of this Scheme. The participants of this Scheme include senior management of the
Company and core R&D production sales and management personnel who have made outstanding
contribution to the Company during the performance appraisal period or have a significant impact on the
future performance of the Company. The total number of participants in the phase shall not exceed 41
and the final participants shall be determined according to the actual subscription. The source of funds
shall be the special fund for the Scheme as withdrawn by the Company in amount totaling RMB
31038241.
According to the "Confirmation Letter on Securities Transfer and Registration" received from
China Securities Depository and Clearing Corporation Limited on August 5 2021 2430800 shares held
in the Company's special security repurchase account had been transferred to the Company's first phase
share ownership scheme account by way of non-trade transfer on August 4 2021 at a price of RMB
12.75/share representing 0.12% of the total share capital of the Company (1959507007 shares). The
shares acquired by employees under the Scheme will be locked up for 36 months from August 4 2021
to August 3 2024. See the Announcement of Joincare Pharmaceutical Group Industry Co. Ltd. on
Completion of the Non-Trade Transfer of Shares under the First Phase Ownership Scheme under
Medium to Long-term Business Partner Share Ownership Scheme (Lin 2021-091) disclosed by the
10 / 18Joincare Pharmaceutical Group Industry Co. Ltd. 2021 Third Quarterly Report
Company on August 6 2021 for details.The 1st meeting of participants of the First Phase Share Ownership Scheme under Medium to
Long-term Business Partner Share Ownership Scheme (hereinafter referred to as the "First Phase Share
Ownership Scheme") was held on August 10 2021 at which the management committee for the First
Phase Share Ownership Scheme was established and three members were elected. The management
committee was authorized to handle matters related to the Scheme. See the Announcement of Joincare
Pharmaceutical Group Industry Co. Ltd. on Resolution of the 1st Meeting of Participants of the First
Phase Share Ownership Scheme under Medium to Long-term Business Partner Share Ownership
Scheme (Lin 2021-092) disclosed by the Company on August 11 2021 for details.IV Quarterly Financial Statements
(I) Audit Opinion
□Applicable √N/A
(II) Financial statements
11 / 18Joincare Pharmaceutical Group Industry Co. Ltd. 2021 Third Quarterly Report
Consolidated Balance Sheet
At 30 September 2021
Prepared by: Joincare Pharmaceutical Group Industry Co. Ltd.Unit：Yuan Currency：RMB Unaudited
Item 30 September 2021 31 December 2020
Current assets:
Monetary fund 10550971638.68 12289098613.19
Financial assets held for trading 189909950.41 28328748.72
Bills receivables 1733017107.76 1343013818.54
Accounts receivables 3018237975.29 2447406222.52
Receivables financing
Prepayments 522396275.49 209926040.57
Other receivables 213796272.84 177240162.81
Of which: Interest receivable
Dividends receivable
Inventories 1855536544.45 1831509012.27
Contract assets
Held-for-sale assets
Non-current assets due within one year 8634022.41 19934376.07
Other current assets 69332467.13 58098049.20
Total current assets 18161832254.46 18404555043.89
Non-current assets:
Debt investments
Other debt investments
Long-term receivables 584284.36 584284.36
Long-term equity investments 1418022709.96 628279599.73
Other equity instrument investments 1405665198.19 1576391663.13
Other non-current financial assets
Investment properties 6191475.43 6191475.43
Fixed assets 4531137755.33 4380285156.93
Construction in progress 811363845.40 648478042.42
Productive biological assets
Oil and gas assets
Right-of-use assets 15403116.86 18030132.69
Intangible assets 468512047.53 468087916.05
Development expenditure 467080044.56 399119603.78
Goodwill 614468698.73 614468698.73
Long-term deferred expenses 196581636.02 170049601.98
Deferred income tax assets 449029594.13 468898469.23
Other non-current assets 608764830.86 373557910.72
Total non-current assets 10992805237.36 9752422555.18
Total assets 29154637491.82 28156977599.07
Current liabilities:
Short-term loans 1854753015.63 2110942804.06
Financial liabilities held for trading 39018.28 212.07
Bills payables 1411712620.87 1087759353.31
Accounts payables 868649376.95 832632206.53
Receipts in advance
Contract liabilities 96384826.19 133422354.03
Employee benefits payables 280937529.46 476521798.51
Tax and surcharge payables 276034461.08 298342182.44
12 / 18Joincare Pharmaceutical Group Industry Co. Ltd. 2021 Third Quarterly Report
Other payables 3272120955.95 2847688065.59
Of which: Interest payable
Dividends payable 40826174.22 8418590.50
Held-for-sale liabilities
Non-current liabilities due within one year 9821001.35 8539077.05
Other current liabilities 3343666.92 6267034.79
Total current liabilities 8073796472.68 7802115088.38
Non-current liabilities:
Long-term loans 688100000.00 360324027.48
Notes payables
Leasing liabilities 6042261.51 9817780.04
Long-term payables
Long-term employee benefits payables
Provisions
Deferred gains 454618399.79 467562770.49
Deferred income tax liabilities 188101595.20 202259855.68
Other non-current liabilities 78000000.00 78000000.00
Total non-current liabilities 1414862256.50 1117964433.69
Total liabilities 9488658729.18 8920079522.07
Owners’ (or shareholders’) equity
Paid-in capital (or share capital) 1905357843.00 1952780764.00
Other equity instruments
Of which: Preferred shares
Perpetual bonds
Capital reserve 2061174342.81 2533288674.28
Less: Treasury shares 222644454.50 253637154.50
Other consolidated earnings 25758615.13 116300559.28
Special reserve
Surplus reserve 515941465.20 515941465.19
Undistributed profits 7028492804.87 6231451582.26
Total owners’ equity (or shareholders’ equity)
11314080616.5111096125890.51
attributable to equity holders of the parent company
Minority interests 8351898146.13 8140772186.49
Total owners’ (or shareholders’) equity 19665978762.64 19236898077.00
Total liabilities and owners’ (or
29154637491.8228156977599.07
shareholders’) equity
Person-in-charge of the Person-in-charge of the Person-in-charge of the
Company: Zhu Baoguo Company’s accounting work: accounting department:
Qiu Qingfeng Qiu Qingfeng
13 / 18Joincare Pharmaceutical Group Industry Co. Ltd. 2021 Third Quarterly Report
Consolidated Income Statement
January to September 2021
Prepared by: Joincare Pharmaceutical Group Industry Co. Ltd.Unit：Yuan Currency：RMB Unaudited
First three quarters of 2021 First three quarters of 2020
Item（January to September） （January to September）
I. Total revenues 11933648988.85 10103029326.93
Of which: operating revenues 11933648988.85 10103029326.93
II. Total operating costs 9728395382.69 7866803182.98
Of which: Operating costs 4202628262.24 3580932722.96
Tax and surcharge 138588360.34 117469489.45
Selling expenses 3820420328.92 2933764220.56
Administrative expenses 651003507.97 630954329.04
R&D expenses 959056925.14 695722058.28
Finance expenses -43302001.92 -92039637.31
Of which: Interest expenses 73581421.29 22518905.86
Interest income 111786015.39 139660448.43
Add: Other income 177015688.29 202763992.92
Investment income (“-” represents
69260277.50140803971.20
losses)
Of which: Income from investments in
11789322.817593871.51
associates and joint ventures
Gains from terminated recognition of
financial assets measured at amortized cost
(“-” represents losses)
Gains from hedging net exposure (“-”
represents losses)
Gains from changes in fair value (“-”
-18014545.966163867.32
represents losses)
Credit impairment loss (“-” represents
-10549870.63-3974299.64
losses)
Asset impairment loss (“-” represents
-35798711.62-26883492.66
losses)
Gains from disposal of assets (“-”
18357859.21-43950.50
represents losses)
III. Operating profit (“-” represents losses) 2405524302.95 2555056232.59
Add: non-operating income 5662349.74 5112433.42
Less: non-operating expenditure 19120502.95 25809994.34
IV. Total profit (“-” represents net losses) 2392066149.74 2534358671.67
Less: income tax expenses 316486740.44 354387233.65
V. Net profit (“-” represents net losses) 2075579409.30 2179971438.02
(I) Classified by continuing operations:
1.Net profit from continuing
2075579409.302179971438.02
operations (“-” represents net losses)
2.Net profit from discontinued
operations (“-” represents net losses)
(II) Classified by attribution to ownership:
1. Net profit attributable to
shareholders of the parent company (“-” 1008675184.73 927470889.00
represents net losses)
2. Profit and loss attributable to
minority interests (“-” represents net 1066904224.57 1252500549.02
losses)
14 / 18Joincare Pharmaceutical Group Industry Co. Ltd. 2021 Third Quarterly Report
Ⅵ. Other comprehensive net income after
-177089388.22-31992939.62
taxation
（I）Other comprehensive net income
after taxation attributable to shareholders -90541944.15 -28845456.03
of the parent company
1. Other comprehensive income not to
-55197967.72-9381197.73
be reclassified into profit or loss
（1）Changes in re-measurement of
defined benefit plans
（2）Other comprehensive income not
to be reclassified into profit or loss under -3992639.64
equity method
（3）Changes in fair value of other
-51205328.08-9381197.73
equity instruments
（4）Changes in fair value of
enterprise’s own credit risk
2. Other comprehensive income to be
-35343976.43-19464258.30
reclassified as profit or loss
（1）Other comprehensive income to
be reclassified into profit or loss under
equity method
（2）Changes in fair value of other
debt investments
（3）Financial assets reclassified into
other comprehensive income
（4）Credit impairment provision for
other debt investments
（5）Reserve for cash flow hedging
（6）Translation difference of financial
statements denominated in foreign -35343976.43 -19464258.30
currency
（7）Others（II）Other comprehensive net income
after taxation attributable to minority -86547444.07 -3147483.59
interests
Ⅶ. Total comprehensive income 1898490021.08 2147978498.40
（I）Total comprehensive income
attributable to shareholders of the parent 918133240.58 898625432.97
company（II）Total comprehensive income
980356780.501249353065.43
attributable to minority interests
Ⅷ. Earnings per share:
（I）Basic earnings per share 0.5154 0.4788（II）Diluted earnings per share 0.5142 0.4763
Person-in-charge of the Person-in-charge of the Person-in-charge of the
Company: Zhu Baoguo Company’s accounting work: accounting department:
Qiu Qingfeng Qiu Qingfeng
15 / 18Joincare Pharmaceutical Group Industry Co. Ltd. 2021 Third Quarterly Report
Consolidated Cash Flow Statement
January to September 2021
Prepared by: Joincare Pharmaceutical Group Industry Co. Ltd.Unit：Yuan Currency：RMB Unaudited
Item First three quarters of 2021 First three quarters of 2020（January to September） （January to September）
I、Cash flow from operating activities:
Cash received from sale of goods and services
11899181183.249671345406.05
rendered
Refund of taxes and levies 117304422.29 99308914.72
Cash received relating to other operating
357722261.48510886420.13
activities
Subtotal of cash inflow from operating
12374207867.0110281540740.90
activities
Cash paid for purchase of goods and services
3161363236.722588418331.36
rendered
Cash paid to and on behalf of employees 1546737299.97 1126745210.15
Payments for various taxes and levies 1263867720.70 1008790561.58
Cash paid relating to other operating activities 4781069905.04 3573070935.44
Subtotal of cash outflow from operating
10753038162.438297025038.53
activities
Net cash flow from operating activities 1621169704.58 1984515702.37
II、Cash flow from investing activities:
Cash received from disposal of investments 110302936.39 157344429.75
Cash received on investment income 93348249.99 30382854.27
Net cash received from disposal of fixed assets
8684509.741630636.20
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries
3311220.535339063.95
and other operating units
Cash received relating to other investing
14765008.3421369351.43
activities
Sub-total of cash inflow from investing activities 230411924.99 216066335.60
Cash payments for acquisition of fixed assets
960679392.16516342226.37
intangible assets and other long-term assets
Cash payments for investments 774000000.00 94514395.92
Net cash paid for acquisition of subsidiaries and
other operating units
Cash paid relating to other investing activities 5067470.33 7658080.29
Sub-total of cash outflow from investing
1739746862.49618514702.58
activities
Net cash flow from investing activities -1509334937.50 -402448366.98
III. Cash flow from financing activities:
Cash received from absorption of investments 521836124.79 397884596.14
Of which: Cash received by subsidiaries from
324225000.008000000.00
investments of minority interests
Cash received from borrowings 2354753015.63 1853579914.03
Cash received relating to other financing
34430100.745582663.82
activities
Sub-total of cash inflow from financing activities 2911019241.16 2257047173.99
Cash paid on repayment of debts 2282684146.53 2929711030.60
Cash paid for distribution of dividends and profit
1211553686.471031200679.92
or interest payments
Of which: Dividends and profits paid to minority 846741767.14 673935179.07
16 / 18Joincare Pharmaceutical Group Industry Co. Ltd. 2021 Third Quarterly Report
interests by subsidiaries
Cash paid relating to other financing activities 1200553298.22 497107442.96
Sub-total of cash outflow from financing
4694791131.224458019153.48
activities
Net cash flow from financing activities -1783771890.06 -2200971979.49
IV. Effect of changes in foreign exchange rates
-20822588.77-36878975.00
on cash and cash equivalents
V. Net increase in cash and cash equivalents -1692759711.75 -655783619.10
Add: Balance of cash and cash equivalents at
12122781311.4910940305225.81
the beginning of the period
VI. Cash and cash equivalents at the end of the
10430021599.7410284521606.71
period
Person-in-charge of the Person-in-charge of the Person-in-charge of the
Company: Zhu Baoguo Company’s accounting work: accounting department:
Qiu Qingfeng Qiu Qingfeng
17 / 18Joincare Pharmaceutical Group Industry Co. Ltd. 2021 Third Quarterly Report
(III) Information on adjustment to relevant items in the financial statements at the beginning of the
year of first implementation in respect of the new leasing standards adopted for the first time starting
from 2021
□Applicable √N/A
Notice is hereby given.Joincare Pharmaceutical Group Industry Co. Ltd.October 26 2021