山东晨鸣纸业集团股份有限公司
SHANDONG CHENMING PAPER HOLDINGS LIMITED*
(a joint stock company incorporated in the People’s Republic of China with limited liability)
First Quarter Report 2011
§1 IMPORTANT NOTICE
1.1 The board of directors (the “Board”), the supervisory committee (the “Supervisory
Committee”), directors (the “Directors”), supervisors (the “Supervisors”) and the senior
management (the “Senior Management”) of the Company warrant that this report does not
contain any false information, misleading statements or material omissions, and accept
joint and several responsibility for the truthfulness, accuracy and completeness of the
contents of this report. This report has been prepared in both Chinese and English. For any
discrepancies, the Chinese version shall prevail.
1.2 None of the Directors, Supervisors and Senior Management is unable to warrant the
truthfulness, accuracy and completeness of the contents of this report or hold any
dissenting views.
1.3 This quarterly report has been considered and approved by the sixth meeting of the sixth
session of the Board of the Company. All Directors attended this meeting by
communication.
1.4 The first quarterly financial report of the Company prepared in accordance with
Accounting Standards for Business Enterprises issued by the Ministry of Finance of the
People’s Republic of China (the “PRC”) by the Company and its subsidiaries (collectively
referred to as the “Group”) are unaudited.
1.5 Chen Hongguo, the person in charge of the Company, Wang Chunfang, the financial
controller of the Company, and Li Dong, head of accounting department (the person in
charge of accounting) hereby declare their assurance for the truthfulness and completeness
of the financial report contained in the quarterly report.
1
§2 BASIC COMPANY INFORMATION
2.1 Major accounting data and financial indicators
Unit: RMB
As at the end of Increase/
the reporting As at the end of decrease
period the prior year (%)
Total Assets (RMB) 37,529,826,696.70 35,077,132,129.98 6.99%
Owners’ equity attributable to
shareholders of the Company 13,771,067,499.75 13,535,785,794.54 1.74%
(RMB)
Share capital (shares) 2,062,045,941.00 2,062,045,941.00 0.00%
Net assets per share attributable to
shareholders of the Company (RMB 6.68 6.56 1.83%
per share)
The
corresponding Increase/
The reporting period of the decrease
period prior year (%)
Total operating revenue (RMB) 4,215,779,027.36 3,917,441,890.00 7.62%
Net profit attributable to equity
holders of the Company (RMB) 235,410,265.86 238,099,243.24 -1.13%
Net cash flows from operating
activities (RMB) 235,068,880.84 656,022,760.24 -64.17%
Net cash flows per share from
operating activities (RMB/share) 0.11 0.32 -65.63%
Basic earnings per share
(RMB/share) 0.11 0.12 -8.33%
Diluted earnings per share
(RMB/share) N/A N/A N/A
Weighted average return on net Decreased
assets (%) by 0.1
percentage
1.72% 1.82% points
Weighted average return on net Decreased
assets after extraordinary gains or by 0.34
losses (%) percentage
1.23% 1.57% points
Extraordinary gains or losses items
√ Applicable Not Applicable
Unit: RMB
Extraordinary gains or losses items Amounts Note (if
applicable)
Gain or loss on disposal of non-current assets 129,044.99
Government grants recognised in profit or loss during the 80,813,737.63
current period, except for government grants closely
2
related to the course of ordinary operation of the Company
that were given constantly at a fixed standard amount or
quantity as stipulated by the State
Gain or loss on debt restructuring 0.00
Other non-operating income and expenses other than the 1,725,562.01
above items
Effect of income tax -11,261,777.94
Effect of minority interests -4,014,391.97
Total 67,392,174.72 —
2.2 Total number of shareholders and the shareholding of the top ten shareholders of
non-restricted shares as at the end of the reporting period
Unit: share
Total number of
shareholders as at The total number of shareholders was 157,046, of which 126,660
the end of the were holders of A shares, 29,762 were holders of B shares and
reporting period 624 were holders of H shares.
Shareholding of the top ten shareholders of non-restricted tradable shares
Number of non-restricted
tradable shares held as at
Class
Name of shareholders the end of the reporting
(Full Name) period
HKSCC NOMINEES Overseas listed foreign
LIMITED 389,860,000 shares (H Shares)
Shouguang Chenming RMB ordinary shares
Holdings Company Limited 293,003,657 (A Shares)
Domestic listed foreign
PLATINUM ASIA FUND 43,480,377 shares (B Shares)
BBH BOS S/A FIDELITY Domestic listed foreign
FD - CHINA FOCUS FD 29,800,890 shares (B Shares)
BILL & MELINDA GATES RMB ordinary shares
FOUNDATION TRUST 24,036,202 (A Shares)
HTHK-MANULIFE CHINA Domestic listed foreign
VALUE FUND 22,892,182 shares (B Shares)
MANULIFE GLOBAL Domestic listed foreign
FUND 20,324,321 shares (B Shares)
China Life Insurance
Company Limited - Dividend
- Individual Dividend - 005L RMB ordinary shares
- FH002 Shenzhen 18,819,737 (A Shares)
National Social Security Fund RMB ordinary shares (A
Combination 104 14,999,927 Shares)
DRAGON BILLION CHINA Domestic listed foreign
MASTER FUND 13,853,877 shares (B Shares)
3
§3 MATERIAL MATTERS
3.1 Details of and reasons for significant changes in major accounting statement items
and financial indicators of the Company
√ Applicable Not Applicable
1. Analysis of the assets and liabilities of the Company
Unit: RMB
Reason
Change for
Item 31 March 2011 31 December 2010 (%) change
Other receivables 246,062,181.96 117,634,380.52 109.18% (1)
Other current assets 1,058,727,036.59 658,572,125.34 60.76% (2)
Construction in progress 9,102,562,587.01 7,871,512,563.84 15.64% (3)
Construction materials 177,454,089.59 116,481,086.12 52.35% (3)
Short-term borrowings 5,672,758,395.26 3,594,157,220.47 57.83% (4)
Bills payable 825,896,324.21 218,757,186.75 277.54% (5)
Advance receipts 249,637,309.10 410,243,554.75 -39.15% (6)
Other current liabilities 1,863,877,946.13 3,412,493,915.88 -45.38% (7)
Explanation on the main reasons leading to the changes:
(1) Other receivables increased by 109.18% as compared to the beginning of the year mainly
due to the increase in the prepaid customs bonds by the Company.
(2) Other current assets increased by 60.76% as compared to the beginning of the year mainly
due to an increase of the value-added tax to be deducted resulting from the investments
such as project investments by the Company.
(3) Construction in progress increased by 15.64% and construction materials increased by
52.35% respectively as compared to the beginning of the year mainly due to the
investments made in the projects such as the Zhanjiang pulp project and the copperplate
paper project of annual production capacity of 800,000 tonnes.
(4) Short-term borrowings increased by 57.83% as compared to the beginning of the year
mainly due to the increase in the repayment of short-term debentures during the current
period and more outstanding notes being discounted.
(5) Bills payable increased by 277.54% as compared to the beginning of the year mainly due
to acceptance made for repayment of short-term debentures by the Company.
(6) Advance receipts decreased by 39.15% as compared to the beginning of the year mainly
due to receipt of less prepayments by the Company as compared to the beginning of the
year.
4
(7) Other current liabilities decreased by 45.38% as compared to the beginning of the year
mainly due to repayment of short-term debentures due during the current period by the
Company.
2. Explanation on significant change of income statement compared with the
corresponding period of the prior year
Unit: RMB
Item 31 March 2011 31 March 2010 Change Reason
(%) for
change
Business taxes and surcharges 17,610,362.77 3,901,057.41 351.43% (1)
Loss on impairment of assets -7,017,489.87 16,074,481.93 -143.66% (2)
Investment income -6,862,531.53 -1,672,580.37 -310.30% (3)
Non-operating income 93,693,686.12 45,633,132.91 105.32% (4)
Non-operating expenses 1,744,031.83 2,811,486.59 -37.97% (5)
Minority interests 17,156,577.15 25,605,097.77 -33.00% (6)
Explanation on the main reasons leading to the changes:
(1) Business taxes and surcharges increased by 351.43% as compared to the corresponding
period of the prior year mainly due to the payment of the urban maintenance and
construction tax and education surcharges by foreign-invested enterprises beginning from
December 2010 in accordance with the requirements of the tax law.
(2) Loss on impairment of assets decreased by 143.66% as compared to the corresponding
period of the prior year mainly due to the decrease in loss on impairment of assets during
the current period resulting from the change in aging of other receivables.
(3) Investment income decreased by 310.3% as compared to the corresponding period of the
prior year mainly due to the increase in loss incurred by the associates during the current
period.
(4) Non-operating income increased by 105.32% as compared to the corresponding period of
the prior year mainly due to receipt of more government grants during the current period
by the Company.
(5) Non-operating expenses decreased by 37.97% as compared to the corresponding period of
the prior year mainly due to the decrease in the donation expenses of the Company during
the current period.
(6) Minority interests decreased by 33% as compared to the corresponding period of the prior
year mainly due to the decrease in the net profit realised by non wholly-owned subsidiaries
of the Company as compared to the corresponding period of the prior year.
5
3. Cash flows during the reporting period
Amounts for the Amounts for the Change
Item current period prior period (%)
Net cash flows from operating activities 235,068,880.84 656,022,760.24 -64.17%
Net cash flows from investing activities -1,627,140,470.50 -519,414,420.50 -213.26%
Net cash flows from financing activities 797,845,888.32 665,825,205.59 19.83%
Explanation on the main reasons leading to the changes:
(1) Net cash flows from operating activities decreased by 64.17% as compared to the
corresponding period of the prior year mainly due to the increase in cash purchase
payment resulting from the rise in raw material price.
(2) Net cash flows from investment activities decreased by 213.26% as compared to the
corresponding period of the prior year mainly due to the increased investments in the
copperplate paper project of production capacity of 800,000 tonnes and the high-end white
coated linerboard project of production capacity of 600,000 tonnes of Shouguang Meilun
Paper Co., Ltd., a wholly-owned subsidiary of the Company, the Zhanjiang pulp project
and the high-end culture paper project during the reporting period.
(3) Net cash flows from financing activities increased by 19.83% as compared to the
corresponding period of the prior year mainly due to the increase in bank borrowings
resulting from the factors such as more project investments made by the Company.
3.2 The progress of significant events and analysis of their impact and solutions
3.2.1 Non-standard opinion
Applicable √ Not Applicable
3.2.2 Provision of capital to the controlling shareholder or its related parties or
provision of guarantee in favour of any external party in violation of the prescribed
procedures by the Company
Applicable √ Not Applicable
3.2.3 Execution of material contracts in the ordinary course of business and their
performance
Applicable √ Not Applicable
3.2.4 Others
√Applicable Not Applicable
6
山東菏澤晨鳴板材有限公司(hereinafter referred to as “Heze Panels”) ceased its production since June
2008. As at the end of March 2011, its net assets were RMB-26,811,762.87 and Shandong Chenming Power
Supply Holdings Co., Ltd., a controlling subsidiary of the Company, held its 67% equity interest in aggregate.
As at the end of March 2011, the net assets of Shandong Lin Dun Wood Industry Co., Ltd. (hereinafter
referred to as “Lin Dun Wood”) amounted to RMB21,724,371.93. and Shandong Chenming Panels Co., Ltd.,
a controlling subsidiary of the Company, held its 67% equity interest. The Company disposed of and
transfered its entire equity interest of Heze Panels and Lin Dun Wood to adjust its strategic positioning,
make its assets active and reduce the funds occupied.After the transfer of the equity interests, the Company
will not hold the equity interests of Heze Panels and Lin Dun Wood.
Qihe Chenming Panels Co., Ltd. (hereinafter referred to as “Qihe Panels”) ceased its production since June
2008. Shandong Chenming Paper Group Qihe Paperboard Co., Ltd. and Shandong Chenming Panels Co.,
Ltd., the controlling subsidiaries of the Company, held its 100% equity interest in aggregate. Taking the local
supplies of raw materials and the market factor into consideration, the management of the Company had no
intention to commence production again. To make the Company’s assets active, the Company transfered the
physical assets such as the land, plants, equipment, inventories and raw materials of Qihe Panels at a total
consideration to be determined based on their valuation.
The above transfer of equity interests and assets will have no substantial effect on the profit of the Company
for the second quarter.
3.3 Performance of undertakings by the Company, shareholders and beneficial
controllers
The following undertakings by the Company, its directors, supervisors and senior
management, shareholders interested in 5% or more of the shares of the Company and its
beneficial controllers in the reporting period or subsisting to the reporting period
Applicable √ Not Applicable
3.4 Warning of cumulative net profit for the period between the beginning of the year to
end of next reporting period being projected to be losses or expected material change
as compared to the same period last year and its explanation
Applicable √ Not Applicable
3.5 Other significant events that require explanation
3.5.1 Securities investment
Applicable √ Not Applicable
7
3.5.2 Reception of research investigations, communications and interviews during the
reporting period
Date of reception Place of reception Manner of Parties Main topics of
reception accommodated discussion and
information
provided
7 January 2011 Zhanjiang, On-site research Institutional Recent
Guangdong investigation analysts such as production and
朱嘉 of Qilu operation of the
Securities and Company
others
12 January 2011 Shouguang, On-site research Guan Xue of Recent
Shandong investigation China production and
International operation of the
Capital Company
Corporation
Securities Limited
and others
17 February 2011 Shouguang, On-site research Wan Youlin of Recent
Shandong investigation Sinolink production and
Securities, 梁裕 operation of the
寧 of E Fund Company
Management Co.,
Ltd.
24 February 2011 Shouguang, On-site research 曾晶晶 of China Recent
Shandong investigation Post Fund and production and
others operation of the
Company
3.6 Investment in derivatives
Applicable √ Not Applicable
3.6.1 Positions in investment in derivatives as at the end of the reporting period
Applicable √ Not Applicable
8
§4 Appendices
4.1 Balance sheet
Prepared by: Shandong Chenming Paper Holdings Limited
31 March 2011
Unit: RMB
Closing balance Opening balance
Item (31 March 2011) (31 December 2010)
Consolidated Parent company Consolidated Parent company
CURRENT ASSETS:
Monetary funds 1,725,248,537.25 333,296,115.01 1,951,854,940.72 704,109,173.25
Balances with clearing companies — — — —
Loans to banks and other — — — —
financial institutions
Held-for-trading financial assets — — — —
Bills receivable 2,740,242,779.05 2,184,880,736.31 2,762,389,909.89 1,527,349,378.06
Accounts receivable 2,316,959,918.10 846,361,775.32 2,122,578,824.27 1,621,939,553.18
Prepayments 791,278,480.06 837,183,828.07 924,354,545.55 919,638,465.71
Premium receivable — — — —
Receivables from reinsurers — — — —
Reinsurance contract reserves — — — —
receivable
Interest receivable — — — —
Dividend receivable — 25,500,000.00 — 25,500,000.00
Other receivables 246,062,181.96 5,400,656,828.49 117,634,380.52 4,773,074,610.91
Financial assets purchased under — — — —
agreements to resell
Inventory 3,696,124,544.38 1,197,647,572.79 3,047,078,215.01 798,447,611.57
Entrusted loans due within one — 1,778,721,279.90 — 1,799,625,759.18
year
Non-current assets due within one — — — —
year
Other current assets 1,058,727,036.59 69,134,655.76 658,572,125.34 —
Total current assets 12,574,643,477.39 12,673,382,791.65 11,584,462,941.30 12,169,684,551.86
NON-CURRENT ASSETS: — — — —
Entrusted loans — 500,000,000.00 — 500,000,000.00
Entrusted loans and advances to — — — —
9
Closing balance Opening balance
Item (31 March 2011) (31 December 2010)
Consolidated Parent company Consolidated Parent company
customers
Available-for-sale financial assets — — — —
Held-to-maturity investments — — — —
Long-term receivables — — — —
Long-term equity investments 60,339,400.36 6,270,887,163.24 67,201,931.89 5,957,887,739.77
Investment properties 24,253,648.06 24,253,648.06 24,688,212.07 24,688,212.07
Fixed assets 13,025,731,696.95 5,020,030,181.82 12,882,358,381.56 5,162,505,904.23
Construction in progress 9,102,562,587.01 653,388,626.67 7,871,512,563.84 377,881,973.00
Construction materials 177,454,089.59 19,465,631.16 116,481,086.12 18,789,838.50
Disposal of fixed assets — — — —
Consumable biological assets 766,393,607.75 — 726,742,568.44 —
Productive biological assets — — — —
Oil and gas assets — — — —
Intangible assets 1,450,863,516.75 327,709,802.12 1,459,453,227.94 329,934,823.01
Development expenditure — — — —
Goodwill 20,283,787.17 — 20,283,787.17 —
Long-term prepaid expenses 183,342,344.07 — 176,436,950.42 —
Deferred income tax assets 143,958,541.60 51,040,517.87 147,510,479.23 60,305,230.74
Other non-current assets — — — —
Total non-current assets 24,955,183,219.31 12,866,775,570.94 23,492,669,188.68 12,431,993,721.32
TOTAL ASSETS 37,529,826,696.70 25,540,158,362.59 35,077,132,129.98 24,601,678,273.18
CURRENT LIABILITIES: — — — —
Short-term borrowings 5,672,758,395.26 3,493,608,693.46 3,594,157,220.47 2,177,183,475.78
Borrowings from the central bank — — — —
Customer bank deposits and due to — — — —
banks and other financial institutions
Placements from banks and other — — — —
financial institutions
Held-for-trading financial liabilities — — — —
Bills payable 825,896,324.21 754,358,152.02 218,757,186.75 124,145,654.66
Accounts payable 3,086,828,667.59 1,207,369,581.80 2,708,064,676.44 995,425,830.59
Advance receipts 249,637,309.10 405,829,282.02 410,243,554.75 284,808,123.90
Assets sold under agreements to — — — —
repurchase
Handling charges and commission — — — —
10
Closing balance Opening balance
Item (31 March 2011) (31 December 2010)
Consolidated Parent company Consolidated Parent company
payable
Staff remuneration payables 126,963,448.67 81,780,642.21 169,426,660.41 106,040,498.15
Taxes payable 144,498,001.36 42,255,976.71 134,029,387.82 36,899,207.08
Interest payable — — — —
Dividend payable — — — —
Other payables 691,902,636.25 240,541,540.33 582,052,511.43 248,170,250.32
Due to reinsurers — — — —
Insurance contract reserves — — — —
Customer brokerage deposits — — — —
Securities underwriting brokerage — — — —
deposits
Non-current liabilities due within 1,423,492,513.15 1,352,332,000.00 1,432,841,463.15 1,360,951,000.00
one year
Other current liabilities 1,863,877,946.13 1,857,190,621.32 3,412,493,915.88 3,405,958,538.39
Total current liabilities 14,085,855,241.72 9,435,266,489.87 12,662,066,577.10 8,739,582,578.87
NON-CURRENT LIABILITIES: — — — —
Long-term borrowings 5,504,960,119.03 882,286,435.94 4,725,628,719.05 852,222,735.94
Bonds payable — — — —
Long-term payables — — — —
Special accounts payable — — — —
Estimated liabilities — — — —
Deferred income tax liabilities 1,340,281.66 — 1,340,281.66 —
Other non-current liabilities 2,429,933,765.42 2,310,396,335.33 2,427,897,545.67 2,309,355,287.42
Total non-current liabilities 7,936,234,166.11 3,192,682,771.27 7,154,866,546.38 3,161,578,023.36
TOTAL LIABILITIES 22,022,089,407.83 12,627,949,261.14 19,816,933,123.48 11,901,160,602.23
OWNERS’ EQUITY(OR — — — —
SHAREHOLDERS’ EQUITY):
Paid-up capital(or share capital) 2,062,045,941.00 2,062,045,941.00 2,062,045,941.00 2,062,045,941.00
Capital reserves 6,093,493,004.71 6,184,215,988.77 6,093,493,004.71 6,184,215,988.77
Less: Treasury shares — — — —
Special reserves — — — —
Surplus reserves 1,046,510,680.99 1,034,321,099.08 1,046,510,680.99 1,034,321,099.08
General risk provisions — — — —
Retained profit 4,569,142,213.82 3,631,626,072.60 4,333,731,947.96 3,419,934,642.10
Foreign currency translation -124,340.77 — 4,219.88 —
11
Closing balance Opening balance
Item (31 March 2011) (31 December 2010)
Consolidated Parent company Consolidated Parent company
differences
Total equity attributable to equity 13,771,067,499.75 12,912,209,101.45 13,535,785,794.54 12,700,517,670.95
holders of the company
Minority interests 1,736,669,789.12 — 1,724,413,211.96 —
Total owners’ equity 15,507,737,288.87 12,912,209,101.45 15,260,199,006.50 12,700,517,670.95
TOTAL LIABILITIES AND 37,529,826,696.70 25,540,158,362.59 35,077,132,129.98 24,601,678,273.18
OWNERS’ EQUITY
4.2 Income statement
Prepared by: Shandong Chenming Paper Holdings Limited
January to March 2011 Unit: RMB
Amounts for the current period Amounts for the prior period
Item (January — March 2011) (January — March 2010)
Consolidated Parent company Consolidated Parent company
I.Total operating revenue 4,215,779,027.36 1,921,785,753.13 3,917,441,890.00 3,312,237,226.65
Including: Operating revenue 4,215,779,027.36 1,921,785,753.13 3,917,441,890.00 3,312,237,226.65
Interest income — — — —
Earned premium — — — —
Handling charges and
commission income — — — —
II.Total operating costs 3,981,119,166.27 1,759,509,526.62 3,635,503,132.43 3,078,618,711.94
Including: Operating costs 3,463,359,628.05 1,555,807,983.71 3,141,673,026.32 2,810,911,841.68
Interest expenses — — — —
Handling charges and
commission expenses — — — —
Surrenders — — — —
Net claims paid — — — —
Net change in insurance
contract reserves — — — —
Policyholder dividend
expenses — — — —
Expenses for reinsurance
accepted — — — —
Business taxes and surcharges 17,610,362.77 9,678,625.14 3,901,057.41 49,940.69
Selling and distribution 202,836,197.85 61,919,884.39 206,922,027.74 101,865,373.94
12
Amounts for the current period Amounts for the prior period
Item (January — March 2011) (January — March 2010)
Consolidated Parent company Consolidated Parent company
expenses
General and administrative
expenses 235,479,987.23 100,687,131.82 201,176,256.05 96,726,207.06
Finance expenses 68,850,480.24 56,580,268.93 65,756,282.98 52,772,422.66
Loss on impairment of
assets -7,017,489.87 -25,164,367.37 16,074,481.93 16,292,925.91
Add: Gain on change in fair
value (“-” denotes loss) — — — —
Investment income (“-”
denotes loss) -6,862,531.53 23,065,936.06 -1,672,580.37 24,480,569.13
Including: Investment income
from associates and joint
ventures -6,862,531.53 -6,862,531.53 -1,672,580.37 -1,672,580.37
Foreign exchange gains (“-”
denotes loss) — — — —
III.Operating profit (“-”
denotes loss) 227,797,329.56 185,342,162.57 280,266,177.20 258,099,083.84
Add: Non-operating income 93,693,686.12 67,364,389.08 45,633,132.91 31,679,777.35
Less: Non-operating
expenses 1,744,031.83 1,069,164.50 2,811,486.59 2,172,470.78
Including: Loss on disposal of
non-current assets — — — —
IV.Total profit (“-” denotes
total loss) 319,746,983.85 251,637,387.15 323,087,823.52 287,606,390.41
Less: Income tax expenses 67,180,140.84 39,945,956.65 59,383,482.51 45,018,898.63
V. Net profit (“-” denotes net
loss) 252,566,843.01 211,691,430.50 263,704,341.01 242,587,491.78
Net profit attributable to
owners of the Company 235,410,265.86 211,691,430.50 238,099,243.24 242,587,491.78
Minority interests 17,156,577.15 — 25,605,097.77 —
VI.Earnings per share: — — — —
(I)Basic earnings per share 0.11 0.10 0.12 0.12
(II)Diluted earnings per share N/A N/A N/A N/A
VII.Other comprehensive
income -128,560.65 — -2,767.08 —
VIII.Total comprehensive
income 252,438,282.36 211,691,430.50 263,701,573.93 242,587,491.78
Total comprehensive income 235,281,705.21 211,691,430.50 238,096,476.16 242,587,491.78
13
Amounts for the current period Amounts for the prior period
Item (January — March 2011) (January — March 2010)
Consolidated Parent company Consolidated Parent company
attributable to owners of the
Company
Total comprehensive income
attributable to minority
interests 17,156,577.15 — 25,605,097.77 —
For the business combination under common control for the current period, the acquiree
realised net profit of RMB nil before the combination.
4.3 Cash flow statement
Prepared by: Shandong Chenming Paper Holdings Limited
January to March 2011 Unit: RMB
Amounts for the current period Amounts for the prior period
Item (January — March 2011) (January — March 2010)
Consolidated Parent company Consolidated Parent company
I.Cash flows from operating activities: — — — —
Cash received from sales of goods and 4,373,729,942.37 1,797,302,681.18 4,004,494,020.37 2,479,208,090.97
rendering of services
Net increase in customer bank — — — —
deposits and due to banks and other
financial institutions
Net increase in borrowings from the — — — —
central bank
Net increase in placements from other — — — —
financial institutions
Cash received from premiums under — — — —
original insurance contracts
Net cash received from reinsurance — — — —
business
Net increase in deposits from — — — —
policyholders
Net increase from disposal of — — — —
held-for-trading financial assets
Cash received from interest, handling — — — —
charges and commissions
Net increase in placements from — — — —
banks and other financial institutions
14
Amounts for the current period Amounts for the prior period
Item (January — March 2011) (January — March 2010)
Consolidated Parent company Consolidated Parent company
Net capital increase of repurchase — — — —
business
Tax rebates received 9,072,328.56 — 9,378,100.97 —
Cash received relating to other 209,741,362.82 77,243,590.61 44,161,584.31 39,069,098.18
operating activities
Subtotal of cash inflows from 4,592,543,633.75 1,874,546,271.79 4,058,033,705.65 2,518,277,189.15
operating activities
Cash paid for goods and services 3,592,629,084.34 1,175,552,333.83 2,688,505,769.18 1,750,017,341.55
Net increase in loans and advances to — — — —
customers
Net increase in deposits with the — — — —
central bank and other financial
institutions
Cash paid for claims under original — — — —
insurance contracts
Cash paid for interest, handling — — — —
charges and commission
Cash paid for policyholder dividend — — — —
Cash paid to and for employees 207,060,248.25 59,273,939.28 158,130,451.51 55,098,679.25
Payments of taxes and surcharges 461,128,266.94 195,314,473.88 376,042,339.97 263,901,407.49
Cash paid relating to other operating 96,657,153.38 182,600,639.67 179,332,384.75 461,700,609.60
activities
Subtotal of cash outflows from 4,357,474,752.91 1,612,741,386.66 3,402,010,945.41 2,530,718,037.89
operating activities
Net cash flows from operating 235,068,880.84 261,804,885.13 656,022,760.24 -12,440,848.74
activities
II.Cash flows from investing — — — —
activities:
Cash received from investments — 20,904,479.28 — 126,000,000.00
Cash received from investment — 122,480,481.09 — 26,153,149.50
income
Net cash received from disposal of 953,872.96 — 52,207.60 4,629.80
fixed assets, intangible assets and
other long-term assets
Net cash received from disposal of — — — —
subsidiaries and other business units
Cash received relating to other 3,016,038.73 — 4,000,000.00 —
investing activities
15
Amounts for the current period Amounts for the prior period
Item (January — March 2011) (January — March 2010)
Consolidated Parent company Consolidated Parent company
Subtotal of cash inflows from 3,969,911.69 143,384,960.37 4,052,207.60 152,157,779.30
investing activities
Cash paid for purchase of fixed assets, 1,631,110,382.19 140,688,974.01 523,466,628.10 19,469,657.44
intangible assets and other long-term
assets
Cash paid on investments — 319,533,425.00 — 115,000,000.00
Net increase in pledged loans — — — —
Net cash paid for acquisition of — — — —
subsidiaries and other business units
Cash paid relating to other investing — — — —
activities
Subtotal of cash outflows from 1,631,110,382.19 460,222,399.01 523,466,628.10 134,469,657.44
investing activities
Net cash flows from investing -1,627,140,470.5 -316,837,438.64 -519,414,420.50 17,688,121.86
activities 0
III.Cash flows from financing — — — —
activities:
Cash received from capital — — — —
contribution
Including: Cash received from — — — —
minority interest contribution to
subsidiaries
Cash received from borrowings 4,632,330,615.82 2,296,907,172.87 1,431,866,401.77 1,093,937,283.91
Cash received from issue of — — 1,494,000,000.00 1,494,000,000.00
short-term debentures
Cash received from issue of — — 1,100,000,000.00 1,100,000,000.00
medium-term notes
Cash received from bond issue — — — —
Cash received relating to other — — 184,150,029.56 200,770,000.00
financing activities
Subtotal of cash inflows from 4,632,330,615.82 2,296,907,172.87 4,210,016,431.33 3,888,707,283.91
financing activities
Cash repayments of amounts 1,783,746,991.05 959,037,255.19 3,481,997,601.85 3,171,751,908.26
borrowed
Cash paid for dividend and profit 80,392,732.83 53,157,784.69 62,193,623.89 53,842,277.70
distribution or interest payment
Including: Dividend and profit paid to — — — —
minority interests to subsidiaries
Cash repayments of short-term 1,549,650,000.00 1,549,650,000.00 — —
16
Amounts for the current period Amounts for the prior period
Item (January — March 2011) (January — March 2010)
Consolidated Parent company Consolidated Parent company
debentures
Cash paid relating to other financing 420,695,003.62 128,370,986.04 — —
activities
Subtotal of cash outflows from 3,834,484,727.50 2,690,216,025.92 3,544,191,225.74 3,225,594,185.96
financing activities
Net cash flows from financing 797,845,888.32 -393,308,853.05 665,825,205.59 663,113,097.95
activities
IV.Effect of foreign exchange rate -2,566,650.95 -352,637.72 -386,995.43 -326,803.77
changes on cash and cash equivalents
V.Net increase in cash and cash -596,792,352.29 -448,694,044.28 802,046,549.90 668,033,567.30
equivalents
Add: Balance of cash and cash 1,855,235,979.80 662,209,607.29 2,367,334,202.50 1,586,045,998.83
equivalents as at the beginning of the
period
VI.Balance of cash and cash 1,258,443,627.51 213,515,563.01 3,169,380,752.40 2,254,079,566.13
equivalents as at the end of the period
4.4 Audit report
Audit opinion: unaudited
17
