1、 * BALANCE SHEET( 76_(PREPARED IN ACCORDANCE WITH PRC ACCOUNTING STANDARDS)129Shandong Xinhua Pharmaceutical Company LimitedAnnual Report 2003 *;N!ASSETS Consolidated Parent companyc20031231200212312003123120021231AT END AT BEGINNING AT END AT BEGINNINGOF YEAR OF YEAR OF YEAR OF YEAR WOOOONOTES RMB
2、RMB RMB RMBt *CURRENT ASSETSMonetary Fund 5 413,986,014.30 503,467,118.60 399,368,092.85 495,429,329.13 Short-term investments 6 31,177,842.00 31,177,842.00 CNotes receivable 7 40,950,704.97 13,256,368.20 40,950,704.97 13,256,368.20p;Dividend receivable ;Interest receiveble n Accounts receivable 8 2
3、59,673,380.86 252,888,637.49 259,623,380.86 252,888,637.49I Other receivables 9 104,258,510.22 117,596,866.22 105,353,651.38 116,167,668.67k n Accounts Prepaid 10 4,157,098.07 3,401,774.74 4,147,040.78 3,152,474.52 Inventories 11 250,537,957.72 218,634,068.33 244,114,271.13 213,030,993.62 lDeferred
4、and prepaid expenses SQ YLong-term debt investment due within a year It *Other current assets t *Total current assetsc1,104,741,508.14 1,109,244,833.58 1,084,734,983.97 1,093,925,471.63 jLONG-TERM INVESTMETScccc pLong-term equity investment 12 80,108,518.00 55,277,318.00 92,010,811.77 63,208,974.89
5、Long-term debt investment 12 75,500.00 75,500.00 75,500.00 75,500.00 Total long-term investmetsc80,184,018.00 55,352,818.00 92,086,311.77 63,284,474.89x *jFIXED ASSETSccccx *a=Fixed assets - cost 13 1,352,596,074.87 1,085,199,625.04 1,350,370,160.86 1,084,485,074.04j Less: accumulated depreciation 1
6、3 653,386,788.34 585,157,010.10 653,008,602.18 584,956,320.84x * =Fixed assets net 13 699,209,286.53 500,042,614.94 697,361,558.68 499,528,753.20jx * Less: Provision for impainment 13c=_ fixed assets x * XFixed assets net 13 699,209,286.53 500,042,614.94 697,361,558.68 499,528,753.20 JConstruction m
7、aterialsc10,206,048.73 8,558,149.83 10,206,048.73 8,558,149.83 Construction-in-progress 14 120,597,120.29 154,740,709.72 120,597,120.29 154,740,709.72x *Total fixed assetsc830,012,455.55 663,341,474.49 828,164,727.70 662,827,612.75 *I *jINTANGIBLE ASSESTS ANDOTHER ASSETSccccc *Intangible assets 15 7
8、0,442,662.78 68,331,382.56 70,442,662.78 68,331,382.56 lLong-term prepayments I *Other long-term assets *Total intangible assetsI *jand other assetsc70,442,662.78 68,331,382.56 70,442,662.78 68,331,382.56 jDEFERED TAXcccc Defered tax debit * Short-term loans 16 174,156,000.00 140,000,000.00 174,156,
9、000.00 140,000,000.00 CNotes payable 17 92,199,948.18 6,800,000.00 92,199,948.18 6,800,000.00 n Accounts payable 18 145,346,593.63 110,077,846.60 140,368,400.07 104,682,406.00k n Deposits from customers 19 8,541,346.03 6,794,110.56 8,541,346.03 6,649,110.56Accrued payroll SQ YLong term liabilities c
10、ccE; lWelfare Dividends payable 20 5,795,059.07 5,135,547.70 5,795,059.07 5,135,547.70t Taxes payable 21 (19,525,415.51) (22,029,554.22 ) (19,201,318.56) (21,331,654.46 )It Other payments I Other payables 22 37,941,290.89 32,499,211.31 37,355,557.15 32,116,375.97k d lAccrued expenses 23 7,302,547.67
11、 3,000,000.00 7,302,547.67 3,000,000.00k Estimated liabilities SQ YLong term liabilities due wihtin one year 24c 200,000,000.00 200,000,000.00It Other current liabilities t Total current liabilities 464,546,576.40 492,109,905.35 459,306,746.05 486,884,529.17 jLONG-TERM LIABILITIEScccc Long-term borr
12、owings 25 200,000,000.00c 200,000,000.00 NBonds payable Long-term payable I Other long-term liabilities 3,561,500.00 3,561,500.00 3,561,500.00 3,561,500.00 Total long term liabilities 203,561,500.00 3,561,500.00 203,561,500.00 3,561,500.00 DEFERED TAXcccc r Defered tax credit Total liabilities 668,1
13、08,076.40 495,671,405.35 662,868,246.05 490,446,029.17pp BjMINORITY SHAREHOLDERSEQUITYccccpp BMinority Shareholders Equity 26 3,968,071.03 2,676,190.62 p BjSHARE CAPITAL EQUITYccccpIShare capital 27 457,312,830.00 457,312,830.00 457,312,830.00 457,312,830.00ICapital surplus 28 558,919,077.15 558,919
14、,077.15 558,919,077.15 558,919,077.15qSurplus reserve 29 159,424,924.74 148,905,850.41 159,216,915.99 148,697,841.66I: , BIncluding: welfare fund 29 26,291,986.91 24,188,172.04 26,222,650.66 24,118,835.79J ;Undistributed profit 30 236,903,608.28 232,785,155.10 237,111,617.03 232,993,163.85Ij YInclud
15、ing: Dividend in cash to$;be distributed 18,292,513.20 27,438,769.80 18,292,513.20 27,438,769.80. QXForeign currency statementtranslation difference 31 744,056.87 p BTotal share capital equity 1,413,304,497.04 1,397,922,912.66 1,412,560,440.17 1,397,922,912.66 qp B QY $Proceeds from borrowings 494,1
16、56,000.00 494,156,000.00QYI*z Y $Cash received from other financing activities 8,598,466.84 8,598,466.84$tSUB-TOTAL OF CASH INFLOWS 504,133,506.41 502,754,466.84 Y $Repayment of borrowings 460,000,000.00 460,000,000.00 p;e;q;Distribution of dividends orY $profits and interest expenses 27,809,040.64
17、27,809,040.64YI*z Y $Payment of expenses on financing activities$tSUB-TOTAL OF CASH OUTFLOWS 487,809,040.64 487,809,040.64*z *Y $t XNET CASH FLOWS FROM FINANCING ACTIVITIES 16,324,465.77 14,945,426.20,. $YBEFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH 682,622.87 (61,434.00 ). $ $ J # XNET INCREASE
18、 IN CASH AND CASH EQUIVALENTS (89,481,104.30 ) (96,061,236.28 )$t STATEMENT OF CASH FLOW (continued)134- 6p “!Zggg ( 76_(PREPARED IN ACCORDANCE WITH PRC ACCOUNTING STANDARDS)$t ANNOTATIONSf2003ITEMS CURRENT YEAR CUMULATIVE;pN!Consolidated Parent company WOONOTES RMB RMB1. Z ;z YRECONCILIATION OF NET
19、 PROFIT TO CASH FLOWS FROM$t jOPERATING ACTIVITIES;Net profit 42,076,297.31 42,076,297.31 jppSTATEMENT OF PROVISION FOR THE PERIOD FROM 1 JANUARY TO 31 DECEMBER 2003Consolidated.20021231I # pI 7pI 7p20031231Addition for Reversal for31 DEC.2002 current year current year Transferred out 31 DEC.2003fOO
20、OOOItems RMB RMB RMB RMB RMBS.x*_ Provision for bad debts 14,078,626.74 13,195,192.41 418,368.72 10,680,468.73 17,011,719.14Ij* IncludingjAccount Receivable 12,565,517.97 13,354,840.46 418,368.72 10,680,468.73 15,658,258.42I Other Receivable 1,513,108.77 (159,648.05 ) 1,353,460.72Z. _ Provision for
21、loss on short-terminvestment Ijp CIncludingjStock investmentNBond investment g. _ Provision for loss on realisationof inventories 2,464,069.29 (79,180.66 ) 2,384,888.63IjIncludingjGoods on hand 2,464,069.29 (79,180.66 ) 2,384,888.63aRaw materials ,. =_ Provision for impairment on long-terminvestment
22、 Ij pIncludingjInvestment in equity Investment in bonds .x * =_ Provision for loss of fixed assets Ij eJIncludingjPlant IncludingjPatentszProprietary technology V. =_ Provision for impairment of constructionin progress . r =_ Provision for impairment ofdesignated loan receivable * =_ ZSTATEMENT OF P
23、ROVISION (continued)136- 6p “!Zggg ( 76_(PREPARED IN ACCORDANCE WITH PRC ACCOUNTING STANDARDS) * =_ ZN!STATEMENT OF PROVISION FOR THE PERIOD FROM 1 JANUARY TO 31 DECEMBER 2003Parent company.20021231I # pI 7pI 7p2003123131 DEC.2002 Addition Disposal Transferred out 31 DEC.2003fOOOOOItems RMB RMB RMB
24、RMB RMBS.x*_ Provision for bad debts 14,078,626.74 13,195,192.41 418,368.72 10,680,468.73 17,011,719.14Ij* IncludingjAccount Receivable 12,565,517.97 13,354,840.46 418,368.72 10,680,468.73 15,658,258.42I Other Receivable 1,513,108.77 (159,648.05 ) 1,353,460.72Z. _ Provision for loss on short-terminv
25、estment Ijp CIncludingjStock investmentsNBond investments g. _ Provision for loss on realisation ofinventories 2,464,069.29 (79,180.66 ) 2,384,888.63IjIncludingjGoods on hand 2,464,069.29 (79,180.66 ) 2,384,888.63aRaw materials ,. =_ Provision for loss on long-terminvestment Ij pIncludingjLong-term
26、equity investment Long-term debit investment .x * =_ Total amounts provided forimpairment of fixed assets Ij eJIncludingjPlant IncludingjPatentszProprietary technology V. =_ Provision for impairment ofconstruction in progress . r =_ Provision for impairment ofdesignated loan receivable 6 WQNOTES TO
27、THE ACCOUNTS(I WQ $ Wk.Ow )(UNLESS OTHERWISE INDICATED, ALL FIGURES ARE STATED IN RMB000)( 76_(PREPARED IN ACCORDANCE WITH PRC ACCOUNTING STANDARDS)137Shandong Xinhua Pharmaceutical Company LimitedAnnual Report 20031. Basic BackgroundShandong Xinhua Pharmaceutical Company Limited (the“Company“) was
28、established in 1993 as the result of thereorganization of Shandong Xinhua Pharmaceutical Factory.The Company issued its H Shares of the Peoples Republic ofChina (the “PRC“) on Hong Kong Security Exchange inDecember 1996 and listed its A Shares of the PRC onShenzhen Stock Exchange in July 1997. The C
29、ompany becamea foreign invested joint stock limited company in November 1998upon approval by the Ministry of Foreign Trade and EconomicCooperation of the PRC. The Company issued additional 30million ordinary A shares as approved and decreased 3 millionstate shares in September 2001.The registered ca
30、pital of the Company as at 31 December 2003was RMB457.31 million and its share capital for the year endedas of 31 December 2003 consists of the following:1.!Y ?I 1- 6p “!hHI!1993_- 6S mf199612I!0 j9d 6Oq 7Hpp Cf19977I! j9d 6Oq 7App Cf199811 6Oq 7. q* Xd7.p “!f20019X# Apw p C3,000pd 5 7p300pf20031231
31、dI!Y WIO45,731dpIhjp pXpIX7Number of sharesoutstanding Amount Percentage7pState shares 214,440 214,440 46.89%_6,pLegal-person shares 16,720 16,720 3.66%_6 :HpPublicly-held H shares 150,000 150,000 32.80%_6 :ApPublicly-held A shares 76,153 76,153 16.65%Total 457,313 457,313 100%The Company is mainly
32、engaged in developing, manufacturingand selling bulk pharmaceuticals, preparations and chemicalsproducts.According to the Circular of “Lu Ke Gao Zi (2001) No. 647“issued by Shandong Science 6 S,2.2.1; YajI! ZX N;*IikY d2Y=*If6 WQNOTES TO THE ACCOUNTS (continued)140- 6p “!Zggg (I WQ $ Wk.Ow )(UNLESS
33、OTHERWISE INDICATED, ALL FIGURES ARE STATED IN RMB000)( 76_(PREPARED IN ACCORDANCE WITH PRC ACCOUNTING STANDARDS)3. Significant Accounting Policies andAccounting Estimate (continued)3.6 Short-term investment (continued)3.6.2 Dividends and interest on short-term investmentsduring the holding period a
34、re netted off againstthe cost of the investments when received andnot recognized as investment income. Proceedsfrom sale of short-term investments netted offagainst their book value and dividend and interestaccrued but not received are recorded asinvestment income or loss for the period.3.6.3 Short-
35、term investments are stated at the lowerof cost or market value at the end of theaccounting period. A provision for short-terminvestment write-down is made on any differencebetween the cost and lower market value at theend of the period on the basis of a single item.3.7 Accounting for bad debts loss
36、3.7.1 Bad debts are recognized and accounted forwhen: (a) the debtor has been disbanded or hasgone bankrupt or becomes insolvent or is badlyin short of cash flows, or occurrence of a severenatural disaster causes the debtor to ceaseproduction and therefore cannot repay its debtin the foreseeable fut
37、ure; (b) the debtor has notrepaid its debt overdue 3 years; and (c) there isother absolute proof that the debts cannot berecovered or are least likely to be recovered.3.6A q63.6 Q,3.6.2 B,j 5 QYp;e; Bd Bd* I #f / Yd *e; YqXd* BiVd rX2-10;iVf6 WQNOTES TO THE ACCOUNTS (continued)144- 6p “!Zggg (I WQ $
38、 Wk.Ow )(UNLESS OTHERWISE INDICATED, ALL FIGURES ARE STATED IN RMB000)( 76_(PREPARED IN ACCORDANCE WITH PRC ACCOUNTING STANDARDS)3.6A q63.9 Q,3.9.2 3.9.2.1 Yq B,j 2_ YI*Id $_ Y Nd2Y J_Y N;d*If 2 Sa2 d;d Bf3.9.2.2 NPqYV,jI!Z NI lQ ( J_Y N;qJQY N;dNd2, Vf3.9.3 =_ Yz_q d,jI! K_95h 8K1 F aIX-*ePYVq? ld. Y3Xf x *Y Y Y l.dI li lf hgH H d x *Y Y Y l Ij(1) * i(2) l i(3)4 *:Qk4KY z f3.11.2 lIY j x * Y ldjI Ydx *:Qk4K Yd x *Id:Qk4K Yd
