SINOPHARM : Announcement on 2017 Interim Results

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(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 ON 2017 INTERIM RESULTS

The board of directors (the "Board") of Sinopharm Group Co. Ltd. (the "Company") is pleased to announce the unaudited interim results of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2017 (the "Reporting Period") together with the comparative figures for the corresponding period of last year as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

(All amounts in Renminbi thousands unless otherwise stated)

Six months ended 30 June
Notes	2017	2016
(Unaudited)	(Unaudited) (Restated)
Revenue	5	137,767,540	126,798,950
Cost of sales	8	(126,875,479)	(116,525,312)
Gross profit	10,892,061	10,273,638
Other income	6	211,681	76,484
Selling and distribution expenses	8	(3,311,234)	(3,146,393)
Administrative expenses	8	(1,906,842)	(1,980,268)
Operating profit	5,885,666	5,223,461
Other gains - net	7	29,566	426,512
Finance income	152,326	108,792
Finance costs	(1,150,449)	(1,002,580)
Finance costs - net	10	(998,123)	(893,788)
Share of profits and losses of: Associates	238,460	104,839
A joint venture	1,735	-
240,195	104,839
Profit before tax	5,157,304	4,861,024
Income tax expense	11	(1,125,467)	(1,106,467)
Profit for the period	4,031,837	3,754,557
Attributable to:
Owners of the parent	2,764,650	2,535,507
Non-controlling interests	1,267,187	1,219,050
4,031,837	3,754,557
Earnings per share attributable to ordinary equity holders of the parent (expressed in RMB per share)
- Basic	12	1.00	0.92
- Diluted	12	1.00	0.92

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(All amounts in Renminbi thousands unless otherwise stated)

Six months ended 30 June
2017	2016
(Unaudited)	(Unaudited) (Restated)
Profit for the period	4,031,837	3,754,557
Other comprehensive income/(loss):
Other comprehensive income/(loss) not be reclassified to profit or loss in subsequent periods
Remeasurements of post-employment benefit obligations	9,003	(1,310)
Other comprehensive income/(loss) to be reclassified to profit or loss in subsequent periods
Available-for-sale investments: Change in fair value, net of tax	(12,326)	(15,421)
Exchange differences	7,205	(11,008)
Share of other comprehensive income of associates	2,843	-
Net other comprehensive loss to be reclassified to profit or loss in subsequent periods	(2,278)	(26,429)
Other comprehensive income/(loss) for the period, net of tax	6,725	(27,739)
Total comprehensive income for the period	4,038,562	3,726,818
Attributable to:
Owners of the parent	2,775,619	2,519,037
Non-controlling interests	1,262,943	1,207,781
4,038,562	3,726,818

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(All amounts in Renminbi thousands unless otherwise stated)

Notes	30 June 2017	31 December 2016
(Unaudited)	(Audited)
ASSETS
Non-current assets
Prepaid land lease payments	1,312,912	1,328,555
Investment properties	403,434	407,552
Property, plant and equipment	7,408,208	6,752,464
Intangible assets	6,588,146	6,282,772
Investment in a joint venture	4,675	2,940
Investments in associates	3,500,364	3,327,990
Available-for-sale investments	505,178	461,980
Finance lease receivables	5,832,322	3,788,098
Deferred tax assets	744,372	791,208
Other non-current assets	2,156,764	1,808,312
Total non-current assets	28,456,375	24,951,871
Current assets
Inventories	24,338,257	25,759,525
Trade receivables	14	87,532,908	69,245,421
Prepayments and other receivables	6,367,630	5,677,916
Available-for-sale investments	929	5,468
Finance lease receivables	2,482,849	1,480,990
Pledged deposits and restricted cash	4,409,803	5,017,640
Cash and cash equivalents	20,070,920	25,572,759
Total current assets	145,203,296	132,759,719
Total assets	173,659,671	157,711,590
Current liabilities
Trade payables	15	69,311,128	66,745,815
Accruals and other payables	8,824,535	9,679,585
Dividends payable	1,418,395	93,770
Tax payable	642,645	855,611
Interest-bearing bank and other borrowings	34,917,539	22,362,578
Total current liabilities	115,114,242	99,737,359
Net current assets	30,089,054	33,022,360
Total assets less current liabilities	58,545,429	57,974,231