Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
SHANDONG CHENMING PAPER HOLDINGS LIMITED
2015 Third Quarter Report
October 2015
— 1 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
I Important Notice
The board of directors (the “Board”), the supervisory committee (the
“Supervisory Committee”) and the directors (the “Directors”), supervisors (the
“Supervisors”) and senior management (the “Senior Management”) of the
Company hereby warrant the truthfulness, accuracy and completeness of the
contents of the quarterly report, guarantee that there are no false representations,
misleading statements or material omissions contained in this quarterly report,
and are jointly and severally responsible for the liabilities of the Company.
All Directors were present in person at the Board meeting to consider and
approve this quarter report.
Chen Hongguo, head of the Company, Dong Lianming, head in charge of
accounting and Li Dong, head of the accounting department (Accounting
Officer), declare that they warrant the truthfulness, accuracy and completeness
of the financial statements in the quarter report.
— 2 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
II Major financial data and change of shareholders
I. Major accounting data and financial indicators
Retrospective adjustment to or restatement of the accounting data for prior years
by the Company due to change of accounting policies and correction of
accounting errors
□ Yes √ No
Increase/decrease
as at the
end of the
reporting
period
compared to
As at the end of the end of
the reporting As at the end of the prior
period the prior year year
Total assets (RMB) 72,005,914,451.70 56,822,026,545.21 26.72%
Net assets attributable to
shareholders of the
Company (RMB) 16,531,169,468.81 13,917,343,301.15 18.78%
Increase/decrease
for the period
from the
beginning of the
Increase/decrease year to the end
for the reporting of the reporting
period as From the period compared
compared to the beginning of the to the
corresponding year to the end corresponding
The reporting period of the of the reporting period of the
period prior year period prior year
Revenue (RMB) 5,176,528,453.85 4.41% 14,895,226,131.61 6.09%
Net profit attributable to
shareholders of the
Company (RMB) 284,937,568.33 188.58% 561,325,638.84 64.52%
Net profit after extraordinary
gains or losses attributable
to shareholders of the
Company (RMB) 209,199,874.65 301.85% 383,662,094.59 249.19%
Net cash flows from operating
activities (RMB) — — -8,624,463,334.43 -740.92%
Basic earnings per share
(RMB per share) 0.15 150.00% 0.29 61.11%
Diluted earnings per share
(RMB per share) 0.15 150.00% 0.29 61.11%
Rate of return on net assets on
weighted average basis 1.79% 1.06% 3.76% 1.31%
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Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Items and amounts of extraordinary gains or losses
√ Applicable □ Not applicable
Unit: RMB
Amounts for the period
from the beginning of the
year to the end of the
Item reporting period Note
Profit or loss from disposal
of non-current assets
(including write-off of
provision for asset
impairment) 4,599,072.37
Government grants (except
for the government grants
closely related to the
normal operation of the
company and granted
constantly at a fixed
amount or quantity in
accordance with a certain
standard based on state
policies) 123,009,380.79
Profit or loss from debt
restructuring 248,346.17
Profit or loss arising from
external entrusted loans 71,777,777.77
Non-operating gains and
losses other than the above
items 9,513,142.36
Gain or loss from changes in
fair value of consumable
productive assets
subsequently measured at
fair value -2,177,906.88
Less: Effect of income tax 29,025,762.22
Effect of minority
interests (after tax) 280,506.11
Total 177,663,544.25 —
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Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Notes for the Company‘s extraordinary gain or loss items as defined in the
Explanatory Announcement on Information Disclosure for Companies Offering Their
Securities to the Public No.1 - Extraordinary Gains or Losses and the extraordinary
gain or loss items as illustrated in the Explanatory Announcement on Information
Disclosure for Companies Offering Their Securities to the Public No.1 -
Extraordinary Gains or Losses defined as its recurring gain or loss items
□ Applicable √ Not applicable
No extraordinary gain or loss items as defined or illustrated in the Explanatory
Announcement on Information Disclosure for Companies Offering Their Securities to
the Public No.1 - Extraordinary Gains or Losses were defined by the Company as its
recurring gain or loss items during the reporting period.
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Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
II. Total number of shareholders and the shareholding of the top ten
shareholders as at the end of the reporting period
1. Total number of shareholders of ordinary shares and the shareholding of
the top ten shareholders of ordinary shares as at the end of the reporting
period
Unit: share
Total number of shareholders 117,584, of which 88,562 holders of A shares, 28,511 holders of B shares and 511
of ordinary shares as at holders of H shares.
the end of the reporting
period
Shareholdings of top ten shareholders of ordinary shares
Share pledged or
Number of locked-up
Nature of Percentage of Number of Restricted Status of
Name of shareholders shareholders shareholding shares held shares held shares Number
HKSCC NOMINEES Overseas legal 18.11% 350,706,900 0 0
LIMITED person
SHOUGUANG CHENMING State-owned legal 15.13% 293,003,657 0 Pledged 146,500,000
HOLDINGS COMPANY person
LIMITED
CENTRAL HUIJIN Domestic ordinary 2.07% 40,137,900 0 0
INVESTMENT LTD. legal person
CHINA SECURITIES Domestic ordinary 1.79% 34,709,519 0 0
FINANCE legal person
CORPORATION
LIMITED
AGRICULTURAL BANK OF Others 1.06% 20,502,241 0 0
CHINA LIMITED —
BAOYING
TRANSITIONAL
MOMENTUM FLEXIBLE
ALLOCATION HYBRID
SECURITIE
INVESTMENT FUND
NATIONAL SOCIAL Others 0.89% 17,238,339 0 0
SECURITY FUND 110
AGRICULTURAL BANK OF Others 0.88% 16,974,585 0 0
CHINA LIMITED - E
FUND RUIHUI
FLEXIBLE
CONFIGURATION
HYBRID SECURITIES
INVESTMENT FUND
HARVEST FUND - Others 0.50% 9,694,900 0 0
AGRICULTURAL BANK
- HARVEST CHINA
SECURITIES FINANCE
ASSET MANAGEMENT
PLAN
— 6 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Share pledged or
Number of locked-up
Nature of Percentage of Number of Restricted Status of
Name of shareholders shareholders shareholding shares held shares held shares Number
ICBC CREDIT SUISSE Others 0.49% 9,562,602 0 0
FUND - AGRICULTURAL
BANK - ICBC CREDIT
SUISSE CHINA
SECURITIES FINANCE
ASSET MANAGEMENT
PLAN
JIN Xing Domestic nature 0.47% 9,087,700 0 0
person
— 7 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Shareholdings of the top ten shareholders of ordinary shares of non-restricted shares
Number of Class of shares
non-restricted
Name of shareholders shares held Class of shares Number
HKSCC NOMINEES LIMITED 350,706,900 Overseas listed 350,706,900
foreign shares
SHOUGUANG CHENMING 293,003,657 RMB ordinary 293,003,657
HOLDINGS COMPANY LIMITED shares
CENTRAL HUIJIN INVESTMENT 40,137,900 RMB ordinary 40,137,900
LTD. shares
CHINA SECURITIES FINANCE 34,709,519 RMB ordinary 34,709,519
CORPORATION LIMITED shares
AGRICULTURAL BANK OF CHINA 20,502,241 RMB ordinary 20,502,241
LIMITED — BAOYING shares
TRANSITIONAL MOMENTUM
FLEXIBLE ALLOCATION HYBRID
SECURITIE INVESTMENT FUND
NATIONAL SOCIAL SECURITY 17,238,339 RMB ordinary 17,238,339
FUND 110 shares
AGRICULTURAL BANK OF CHINA 16,974,585 RMB ordinary 16,974,585
LIMITED - E FUND RUIHUI shares
FLEXIBLE CONFIGURATION
HYBRID SECURITIES
INVESTMENT FUND
HARVEST FUND - AGRICULTURAL 9,694,900 RMB ordinary 9,694,900
BANK - HARVEST CHINA shares
SECURITIES FINANCE ASSET
MANAGEMENT PLAN
ICBC CREDIT SUISSE FUND - 9,562,602 RMB ordinary 9,562,602
AGRICULTURAL BANK - ICBC shares
CREDIT SUISSE CHINA
SECURITIES FINANCE ASSET
MANAGEMENT PLAN
JIN Xing 9,087,700 RMB ordinary 1,231,600
shares
Domestic listed 7,856,100
foreign shares
Explanation of the connected Shouguang Chenming Holdings Company Limited, a
relationship or acting-in-concert state-owned legal person shareholder, is not connected with any
relationship of the above of the shareholders above. They are not persons acting in
shareholders concert under Administration of Disclosure of Information on
the Change of Shareholdings in Listed Companies Procedures.
Save for the above, it is not aware that any other shareholders
of tradable shares are persons acting in concert and is also not
aware that any other shareholders of tradable shares are
connected with each others.
Whether an agreed repurchase transaction was entered into during the reporting
period by the top 10 shareholders of ordinary shares and top 10 shareholders of
non-restricted shares of the Company
□ Yes √ No
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Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
The top 10 shareholders of ordinary shares and top 10 shareholders of non-
restricted shares of the Company did not enter any agreed repurchase
transaction during the reporting period.
2. Total number of shareholders of preference shares and the shareholding
of the top ten shareholders of preference shares as at the end of the
reporting period
□ Applicable √ Not applicable
III Material matters
I. Details and reasons for changes of major accounting statement items and
financial indicators during the reporting period
√ Applicable □ Not applicable
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Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
(I) Analysis of the assets and liabilities of the Company
Unit: RMB
Reason
Item 30 September 2015 31 December 2014 Change for change
Monetary funds 7,275,659,314.22 5,475,658,186.10 32.87% (1)
Bills receivable 4,486,548,541.86 3,047,541,556.15 47.22% (2)
Other receivables 4,601,621,364.74 1,776,467,886.07 159.03% (3)
Available-for-sale
financial assets 109,000,000.00 73,000,000.00 49.32% (4)
Long-term receivables 9,528,717,700.36 1,420,598,667.99 570.75% (5)
Long-term equity
investments 82,439,231.42 36,087,848.12 128.44% (6)
Construction in
progress 5,594,217,039.73 3,709,270,828.53 50.82% (7)
Bills payable 3,265,284,261.70 1,598,110,792.85 104.32% (8)
Interest payable 246,098,198.25 150,047,305.50 64.01% (9)
Other payables 1,187,723,709.51 783,790,884.61 51.54% (10)
Other comprehensive
income -202,575,135.06 33,763,168.13 -699.99% (11)
Explanation on major changes:
(1) Monetary funds increased by 32.87% mainly due to the increase in
guarantee deposit for bank acceptance, guarantees and loan application by
the Company.
(2) Bills receivable increased by 47.22% mainly due to the increase in the
receivables settled by bills.
(3) Other receivables increased by 159.03% mainly due to the new financial
leasing business due within one year of the financial leasing company
（the“Financial Leasing Company”）, a subsidiary of the company.
(4) Available-for-sale financial assets increased by 49.32% mainly due to the
new equity investment made by the Financial Leasing Company, a
subsidiary of the company, into Shanghai Leadbank Asset Management Co.,
Ltd.
(5) Long-term receivables increased by 570.75% mainly due to the new long-
term financial leasing business of more than one year of the Financial
Leasing Company, a subsidiary of the company.
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Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
(6) Long-term equity investments increased by 128.44% mainly due to the new
equity investment made by the Company into Zhuhai Dechen New Third
Board Equity Investment Fund Company (Limited Partnership).
(7) Construction in progress increased by 50.82% mainly due to the increased
investment in Zhanjiang Chenming 190,000 tonne high-end cultural paper
project, Huanggang Chenming Forestry pulp integration project and Jiangxi
Chenming Food packaging paper project.
(8) Bills payable increased by 104.32% mainly due to the increase in the
payment for goods by bank acceptance by the Company.
(9) Interest payable increased by 64.01% mainly due to the interest on corporate
bonds and medium-term notes accrued by the Company.
(10) Other payables increased by 51.54% mainly due to the deposits received by
the Financial Leasing Company, a subsidiary of the company, for the new
financial leasing business due within one year.
(11) Other comprehensive income decreased by 699.99% mainly due to exchange
differences on translation of foreign operations resulting from fluctuation in
RMB exchange rate.
(II) Reasons for significant year on year changes of income statement items
during the reporting period
Unit: RMB
Reason
January - January - for
Item September 2015 September 2014 Change change
Business taxes and
surcharges 87,653,078.10 59,123,220.53 48.25% (1)
Administrative
expenses 1,013,255,447.51 804,817,760.04 25.90% (2)
Finance expenses 1,233,143,023.92 946,282,893.04 30.31% (3)
Loss on impairment
of assets 68,857,328.06 22,008,283.96 212.87% (4)
Investment income 77,519,744.85 45,626,015.23 69.90% (5)
Non-operating
income 145,464,747.36 324,243,019.51 -55.14% (6)
Non-operating
expenses 5,005,703.10 14,344,376.32 -65.10% (7)
Income tax expenses 293,576,753.60 56,092,305.40 423.38% (8)
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Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Explanation on major changes:
(1) Business taxes and surcharges increased by 48.25% mainly due to the new
financial leasing business of the Financial Leasing Company, a subsidiary
of the company .
(2) Administrative expenses increased by 25.90% mainly due to the increase in
research and development expenditure due to greater research and
development investment of Meilun Paper and Zhanjiang Chenming, two
subsidiaries of the company.
(3) Finance expenses increased by 30.31% mainly due to interest expenses and
the increase in exchange loss resulting from the depreciation of RMB.
(4) Loss on impairment of assets increased by 212.87% mainly due to the
increase in bad debt provision resulting from the increase in receivables
(5) Investment income increased by 69.90% mainly due to the increase in the
income from external entrusted loans, as well as the loss on disposal of Xinli
Power in the prior year.
(6) Non-operating income decreased by 55.14% mainly due to the gain on
disposal of intangible assets by Jiangxi Chenming, a subsidiary of the
company, in the prior year.
(7) Non-operating expenses decreased by 65.10% mainly due to the decrease in
the loss on disposal of non-current assets by the Company.
(8) Income tax expenses increased by 423.38% mainly due to the year-on-year
increase in the profitability of the Company.
(III) Analysis of cash flows during the reporting period
Unit: RMB
Reason
January - January - for
Item September 2015 September 2014 Change change
Net cash flows from
operating activities -8,624,463,334.43 1,345,633,170.22 -740.92% (1)
Net cash flows from
investing activities -1,169,249,574.83 -2,315,636,367.42 49.51% (2)
Net cash flows from
financing activities 9,447,300,758.44 1,856,086,808.55 408.99% (3)
— 11 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Explanation on major changes:
(1) Net cash flows from operating activities decreased by 740.92% mainly due
to the new financial leasing business of the Financial Leasing Company, a
subsidiary of the company.
(2) Net cash flows from investing activities increased by 49.51% mainly due to
the new business of entrusted loans of RMB1.0 billion undertaken by the
Company in the prior year.
(3) Net cash flows from financing activities increased by 408.99% mainly due
to the issue of short-term commercial paper and perpetual bonds by the
Company during the current period.
II. Progress in respect to material matters and analysis of the related effects
and solutions
√ Applicable □ Not applicable
Matters relating to non-public offer of preference shares
On 29 December 2014, the resolution on the proposal on non-public offer of
preference shares and related resolutions were considered and approved at the
fifth extraordinary general meeting of the seventh session of the Board of the
Company.
On 11 February 2015, the Company received the Reply on Issues Regarding the
Non-public Offer of Preference Shares by Shandong Chenming Paper Holdings
Limited (Lu Quo Zi Chan Quan Zi [2015] No. 4) issued by Stated-owned Assets
Supervision and Administration Commission of Shandong Province, which
agreed the non-public offer of not more than 45 million preference shares by the
Company.
On 13 February 2015, the Company convened the 2015 First Extraordinary
General Meeting, the 2015 First Class Meeting for Holders of Domestic Listed
Shares (A shares and B shares) and the 2015 First Class Meeting for Holders of
Overseas Listed Shares (H shares), at which the resolutions on the non-public
offer of preference share proposal and related resolutions were considered and
approved respectively.
On 2 March 2015, the Company received China Securities Regulatory
Commission ( “CSRC”) Notice of acceptance of application for administrative
approval (No. 150373) from CSRC. Having examined the information
submitted by the Company in support of its application for
— 12 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
administrative approval for Confirmation of Issue of Preference Shares by Listed
Company, CSRC was of the opinion that the information in support of
application was complete and complied with legal requirements, and decided to
accept the said application for administrative approval.
On 15 May 2015, the Company and its sponsor for the non-public issue of the
preference shares received Reply on Application for Non-Public Issue of
Preference Shares by Shandong Chenming Paper Holdings Limited (CSRC
Notice of Reply on Administrative Approval-requiring Projects (No. 150373)
(the “Reply”) from CSRC. According to the requirements of the Reply,
explanation and analysis had been made by the Company on relevant issues in
accordance therewith.
On 5 June 2015, the Company convened the sixth board meeting of the seventh
Board, at which the resolution on the amendments to the non-public offer of
preference share proposal and disclosed the proposal as amended on the same
date.
On 9 June 2015, the Company published the announcement in respect of the
Reply on Application for Non-Public Issue of Preference Shares and the
Announcement in Respect of Supplementary Disclosure Required under the
Reply from CSRC on Application for Issue of Non-Public Preference Shares.
Materials for the supplementary disclosure required were sent to the CSRC
within two business days.
On 21 August 2015, the application for non-public issue of preference shares of
the Company was reviewed and approved by the Public Offering Review
Committee of the CSRC.
On 22 September 2015, the Company obtained the Reply on Approval of Non-
public Issue of Preference Shares of Shandong Chenming Paper Holdings
Limited (CSRC Approval [2015] No. 2130) from CSRC, which approved the
non-public issue of no more than 45 million preference shares of RMB100 each
by the Company.
Overview of material Disclosure website index of
matters Date of disclosure tentative announcements
Approval of Application
for Non-public Issue of
Preference Shares by
CSRC http://www.cninfo.com.cn,
23 September 2015 2015-056
— 13 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
III. Undertakings made by the Company and shareholders interested in 5%
or more of the shares of the Company made during the reporting period
or prior periods but subsisting to the reporting period
√ Applicable □ Not applicable
Party Particulars
involved in Undertaking on the
Undertaking undertaking Details of undertaking date Term performance
Undertaking on
shareholding structure
reformation
Undertaking made in
offering documents or
shareholding
alternation documents
Undertaking made during
asset reconstruction
Undertaking made on Shouguang (1) Shouguang Chenming Holdings Co., 22 May 2008 During the Strictly
initial public offering Chenming Ltd. (“Shouguang Chenming Holdings”) period when implemented
or refinancing Holdings Co., shall not engage, whether solely, jointly, or Chenming
Ltd. by representing itself or any other persons Holdings was
or companies, and shall not procure its the major
associates (as defined in The Listing Rules shareholder of
of Hong Kong Stock Exchange) to engage, the Company
in any business which competes with the
business of the Company and its
subsidiaries (“Chenming Group” or “we”)
directly or indirectly, in any country and
region which our business exists (or any
part of the world if in any form of
electronics business), or in any business
that directly or indirectly competes with
Chenming Group’s business which we
operate from time to time (including but not
limited to any business in the form of sole
proprietorship, joint ventures or
acquisitions, or holding interests directly or
indirectly in such enterprises, or by any
other means); (2) in the event that
Shouguang Chenming Holdings is required
by its business to, whether solely, jointly, or
by representing itself or any other persons
or companies, engage in business which
directly or indirectly competes against the
business of Chenming Group, or obtain any
business opportunity which directly or
indirectly competes against the business of
Chenming Group, it shall endeavour to
procure that Chenming Group shall have
priority to obtain the right to operate such
business or to obtain such business
opportunity; (3) if Shouguang Chenming
Holdings is in breach of the
abovementioned undertakings, it shall
indemnify the Company for any loss caused
by such breach and the Company shall have
the right to acquire all businesses of
Shouguang Chenming Holdings, which
directly or indirectly compete with the
businesses of our Group, at market price or
cost price (whichever price is lower); (4)
Shouguang Chenming Holdings shall not
make use of its position as the controlling
shareholder (as defined in The Listing Rules
of Hong Kong Stock Exchange) of our
Group to jeopardise the legal interests of
Chenming Group and its shareholders with
other persons or companies or on their
behalf.
— 14 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Party Particulars
involved in Undertaking on the
Undertaking undertaking Details of undertaking date Term performance
Shouguang (1) According to the plan on defective 16 January During the Strictly
Chenming properties of the Company, Shouguang 2008 period when implemented
Holdings Co., Chenming Holdings Co., Ltd. (“Shouguang Chenming
Ltd. Chenming Holdings”) has guaranteed and Holdings was
undertaken that: according to the the major
application of the Company, for defective shareholder of
property(ies) owned by the Company and its the Company
holding subsidiary company which situated
in the administrative area of Shouguang
city, Shouguang Chenming Holdings will
purchase it(them) and have it(them) being
transferred to itself pursuant to the law in
accordance with the result of the related
asset valuation if the Company decides to
transfer and dispose of it(them) and there is
no other transferee; (2) before the Company
transfers and disposes of the defective
properties pursuant to the law, if the
Company suffers any economic losses due
to the defects of the title (including but not
limited to damages, penalties and relocation
costs), Shouguang Chenming Holdings will
bear such economic losses; (3) during the
regulatory process taken to the defective
properties of buildings and land of
subsidiaries of the Company situated
outside the local areas (outside the
administrative area of Shouguang city), the
economic losses such as penalties or
relocation costs imposed by competent
administrative authorities to be borne by the
subsidiaries arising from defects of
insufficient title documents shall be paid
pursuant to the law by Shouguang
Chenming Holdings after verification.
Other undertakings made
to minority
shareholders of the
Company
Does the undertaking Yes
performed timely?
IV. Estimate of the operating results for 2015
Warning of projection on cumulative net profit for the period from the beginning
of the year to the end of the next reporting period to be at a loss or expected to
have material changes as compared to the corresponding period of prior year and
its explanation
□ Applicable √ Not applicable
V. Security investments
□ Applicable √ Not applicable
The Company did not have any security investments during the reporting period.
— 15 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
VI. Equity interests held in other listed companies
□ Applicable √ Not applicable
The Company did not hold any equity interests in other listed companies as at
the end of the reporting period.
VII. Derivatives investments
□ Applicable √ Not applicable
The Company did not have any derivative investments during the reporting
period.
VIII. Registration report on reception of research investigations, communications
and interviews during the reporting period
√ Applicable □ Not applicable
Main topics
of discussion
and
Place of Manner of Class of parties information
Date of reception reception reception accommodated Parties accommodated provided
13 January 2015 The On-site Institution Guotai Junan Securities Co. Ltd. Recent
Company’s research production
conference investigation and
room operation of
the Company
and
development
of the
industry
13 January 2015 The On-site Institution 27 fund companies including Shenyin Recent
Company’s research Wanguo, BOC Schroder Fund, HuaAn production
conference investigation Funds, GTJA Allianz Funds, Fullgoal and
room Fund, Zhong Ou AMC, Lion Fund, operation of
CPIC, Harfor Fund, Caitong Securities, the Company
Franklin Templeton Sealand Fund, and
Baoying Fund, Caitong Fund, development
First-Trust Fund, Tongben Investment, of the
Oriental Capital, Minsheng Royal Fund, industry
HFT Investment, China Life Asset
Management, Yongjin Asset
Management, CICC, ICBCCS,
CITICPE, China AMC, Minsen
Investment etc
28 January 2015 The On-site Institution Brilliance Asset Management Limited Recent
Company’s research production
conference investigation and
room operation of
the Company
and
development
of the
industry
— 16 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
IV Financial Statements
I. Financial Statements
1. Consolidated Balance Sheet
Prepared by: Shandong Chenming Paper Holdings Limited
30 September 2015 Unit: RMB
Item Closing balance Opening balance
CURRENT ASSETS:
Monetary funds 7,275,659,314.22 5,475,658,186.10
Bills receivable 4,486,548,541.86 3,047,541,556.15
Accounts receivable 3,797,927,782.56 3,489,409,369.20
Prepayments 1,771,760,324.52 1,838,017,454.90
Other receivables 4,601,621,364.74 1,776,467,886.07
Inventories 5,272,000,785.01 5,420,740,468.60
Non-current assets due within one year 531,953,215.18 865,738,333.65
Other current assets 1,471,503,086.68 1,656,602,232.09
Total current assets 29,208,974,414.77 23,570,175,486.76
NON-CURRENT ASSETS:
Available-for-sale financial assets 109,000,000.00 73,000,000.00
Long-term receivables 9,528,717,700.36 1,420,598,667.99
Long-term equity investments 82,439,231.42 36,087,848.12
Investment property 16,431,495.88 17,735,187.91
Fixed assets 23,944,718,312.93 24,744,731,705.04
Construction in progress 5,594,217,039.73 3,709,270,828.53
Construction materials 16,545,864.01 22,955,982.38
Intangible assets 1,470,811,921.34 1,319,104,425.04
Goodwill 20,283,787.17 20,283,787.17
Long-term prepaid expenses 168,236,214.50 173,690,747.83
Deferred income tax assets 651,414,227.59 620,267,636.44
Other non-current assets 1,194,124,242.00 1,094,124,242.00
Total non-current assets 42,796,940,036.93 33,251,851,058.45
Total assets 72,005,914,451.70 56,822,026,545.21
CURRENT LIABILITIES:
Short-term borrowings 23,543,580,333.86 20,470,296,592.92
Bills payable 3,265,284,261.70 1,598,110,792.85
Accounts payable 3,148,768,075.86 3,408,366,113.93
Advance receipts 270,040,619.71 270,056,726.88
Staff remuneration payables 193,770,342.24 153,926,042.30
— 17 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Item Closing balance Opening balance
Taxes payable 201,026,653.89 161,100,088.94
Interest payable 246,098,198.25 150,047,305.50
Dividend payable 1,187,723,709.51 783,790,884.61
Other payables 1,155,263,500.00 1,099,968,900.00
Non-current liabilities due within one
year 7,201,960,555.55
Total current liabilities 40,413,516,250.57 28,095,663,447.93
NON-CURRENT LIABILITIES:
Long-term borrowings 4,504,586,347.85 4,378,290,245.19
Bonds payable 5,784,055,517.50 5,777,131,308.01
Long-term payables 184,000,000.00
Special payables 161,983,516.66 161,983,516.66
Deferred income 1,440,956,975.54 1,476,121,434.78
Other non-current liabilities 2,590,779,342.55 2,584,768,359.64
Total non-current liabilities 14,666,361,700.10 14,378,294,864.28
TOTAL LIABILITIES 55,079,877,950.67 42,473,958,312.21
OWNERS’ EQUITY:
Share capital 1,936,405,467.00 1,936,405,467.00
Other equity instruments 2,582,800,000.00
Including: Perpetual bonds 2,582,800,000.00
Capital reserves 6,149,138,276.81 6,149,136,873.41
Other comprehensive income -202,575,135.06 33,763,168.13
Surplus reserves 1,132,116,106.40 1,132,116,106.40
Retained profit 4,933,284,753.66 4,665,921,686.21
Total equity attributable to equity holders
of the company 16,531,169,468.81 13,917,343,301.15
Minority interest 394,867,032.22 430,724,931.85
Total owners’ equity 16,926,036,501.03 14,348,068,233.00
TOTAL LIABILITIES AND OWNERS’
EQUITY 72,005,914,451.70 56,822,026,545.21
Legal Representative: Financial controller: Head of the
Chen Hongguo Dong Lianming accountarydepartment: Li Dong
— 18 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
2. Balance sheet of the Company
Unit: RMB
Item Closing balance Opening balance
CURRENT ASSETS:
Monetary funds 4,366,073,237.20 2,345,637,944.73
Bills receivable 1,675,767,730.02 3,516,397,335.06
Accounts receivable 2,166,245,219.83 3,503,819,172.94
Prepayments 1,542,557,668.55 1,734,892,571.69
Other receivables 16,972,335,044.54 9,312,981,273.16
Inventories 912,713,230.45 824,854,551.21
Non-current assets due within one year 300,000,000.00
Other current assets 42,494,564.53 114,216,338.90
Total current assets 27,678,186,695.12 21,652,799,187.69
NON-CURRENT ASSETS:
Available-for-sale financial assets 73,000,000.00 73,000,000.00
Long-term equity investments 12,526,665,506.00 12,370,935,132.02
Investment property 16,431,495.88 17,735,187.91
Fixed assets 3,437,526,203.14 3,350,685,307.94
Construction in progress 122,112,865.46 323,543,539.92
Construction materials 1,494,815.38 1,564,277.42
Intangible assets 310,953,966.09 246,581,452.71
Deferred income tax assets 149,419,011.05 41,033,875.05
Other non-current assets 900,000,000.00 900,000,000.00
Total non-current assets 17,537,603,863.00 17,325,078,772.97
TOTAL ASSETS 45,215,790,558.12 38,977,877,960.66
CURRENT LIABILITIES:
Short-term borrowings 6,267,700,091.21 9,143,654,360.01
Bills payable 1,008,267,187.81 680,548,319.01
Accounts payable 897,054,487.69 693,506,846.35
Advance receipts 692,267,441.52 1,724,744.50
Staff remuneration payables 101,570,049.13 75,683,362.25
Taxes payable 17,775,972.54 30,908,886.06
Interest payable 246,098,198.25 150,047,305.50
Dividend payable
Other payables 2,790,154,542.78 4,141,133,979.84
Non-current liabilities due within one
year 781,678,000.00 494,760,000.00
Other current liabilities 7,201,960,555.55
Total current liabilities 20,004,526,526.48 15,411,967,803.52
NON-CURRENT LIABILITIES:
Long-term borrowings 350,692,035.94 867,832,035.94
Bonds payable 5,784,055,517.50 5,777,131,308.01
Deferred income 62,174,938.01 44,507,433.25
— 19 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Item Closing balance Opening balance
Other non-current liabilities 2,590,779,342.55 2,584,768,359.64
Total non-current liabilities 8,787,701,834.00 9,274,239,136.84
Total liabilities 28,792,228,360.48 24,686,206,940.36
OWNERS’ EQUITY:
Share capital 1,936,405,467.00 1,936,405,467.00
Other equity instruments 2,582,800,000.00
Including: Preference shares
Perpetual bonds 2,582,800,000.00
Capital reserves 5,938,840,660.10 5,938,839,256.70
Surplus reserves 1,119,926,524.49 1,119,926,524.49
Retained profit 4,845,589,546.05 5,296,499,772.11
Total owners’ equity 16,423,562,197.64 14,291,671,020.30
TOTAL LIABILITIES AND OWNERS’
EQUITY 45,215,790,558.12 38,977,877,960.66
— 20 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
3. Consolidated Income Statement for the Reporting Period
Unit: RMB
Amounts for the Amounts for the
Item reporting period prior period
I. Total revenue 5,176,528,453.85 4,957,710,823.44
Including: Revenue 5,176,528,453.85 4,957,710,823.44
II. Total operating costs 4,884,195,563.83 4,941,446,219.63
Including: Operating costs 3,663,452,008.01 3,984,381,243.53
Business taxes and surcharges 36,419,101.44 23,622,752.75
Sales expenses 304,163,150.41 303,393,591.78
Administrative expenses 359,001,478.25 304,683,878.41
Finance expenses 487,670,744.81 319,671,104.57
Loss on impairment of assets 33,489,080.91 5,693,648.59
Plus: Gain on change in fair value
(“-” denotes loss)
Investment income (“-” denotes
loss) 30,886,998.53 24,407,767.41
Including: Investment income from
associates and joint ventures -1,503,585.25 -1,072,793.04
III. Operating profit (“-” denotes loss) 323,219,888.55 40,672,371.22
Plus: Non-operating income 70,374,708.87 70,531,646.73
Including: Gain on disposal of
non-current assets 489,331.81 3,350,564.03
Less: Non-operating expenses 1,674,673.26 316,270.45
Including: Loss on disposal of
non-current assets 249,189.04 856,245.58
IV. Total profit (“-” denotes total loss) 391,919,924.16 110,887,747.50
Less: Income tax expenses 120,165,450.99 22,059,260.28
V. Net profit (“-” denotes net loss) 271,754,473.17 88,828,487.22
Net profit attributable to owners of
the Company 284,937,568.33 98,736,396.40
Minority interest -13,183,095.16 -9,907,909.18
VI. Other comprehensive income after
tax, net -252,355,593.07 5,074,774.50
Other comprehensive income after tax
attributable to owners of the Company,
net -252,355,593.07 5,074,774.50
(I) Other comprehensive income
that will not be reclassified to
profit and loss in subsequent
periods
— 21 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item reporting period prior period
1. Change in remeasurement
of net defined benefit
liability or assets
2. Share of other
comprehensive income of
investees that will not be
reclassified to profit and
loss
(II) Other comprehensive income
that will be reclassified to profit
and loss in subsequent periods -252,355,593.07 5,074,774.50
1. Share of other
comprehensive income of
equity accounted investees
that will be reclassified to
profit and loss in
subsequent periods
2. Gains and losses from
changes in fair value of
available-for-sale financial
assets
3. Gains and losses from
held-to-maturity investment
reclassified as
available-for-sale financial
assets
4. Effective portion of hedging
gains and losses from cash
flows
5. Exchange differences on
translation of foreign
operations -252,355,593.07 5,074,774.50
Net other comprehensive income after tax
attributable to minority interests
VII. Total comprehensive income 19,398,880.10 93,903,261.72
Total comprehensive income
attributable to owners of the
Company 32,581,975.26 103,811,170.90
— 22 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item reporting period prior period
Total comprehensive income
attributable to minority interest -13,183,095.16 -9,907,909.18
VIII.Earnings per share:
(I) Basic earnings per share 0.15 0.06
(II) Diluted earnings per share 0.15 0.06
Legal Representative: Financial controller: Head of the financial department:
Chen Hongguo Dong Lianming Li Dong
— 23 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
4. Income statement of the Company for the Reporting Period
Unit: RMB
Amounts for the Amounts for the
Item reporting period prior period
I. Revenue 1,878,838,439.05 2,090,570,411.61
Less: Operating costs 1,537,566,162.27 1,690,111,970.35
Business taxes and
surcharges 7,890,558.36 11,091,563.47
Selling expenses 73,636,182.42 75,639,274.24
Administrative expenses 132,936,512.18 134,735,705.98
Finance expenses 389,353,175.95 256,461,350.38
Loss on impairment of
assets 2,884,263.80 2,603,282.18
Plus: Gain on change in fair
value (“-” denotes loss)
Investment income (“-”
denotes loss) 32,467,707.72 726,068,888.89
Including: Investment
income from associates
and joint ventures -65,625.61 74,995.11
II. Operating profit (“-” denotes loss) -232,960,708.21 645,996,153.90
Plus: Non-operating income 36,199,171.33 20,615,908.61
Including: Gain on
disposal of non-current
assets 7,836.79
Less: Non-operating expenses 646,959.76 1,822,855.67
Including: Loss on
disposal of non-current
assets 96,959.76 822,855.67
III. Total profit (“-” denotes total loss) -197,408,496.64 664,789,206.84
Less: Income tax expenses -34,405,902.11 -10,305,116.56
IV. Net profit (“-” denotes net loss) -163,002,594.53 675,094,323.40
V. Other comprehensive income after
tax, net
(I) Other comprehensive income
that will not be reclassified to
profit and loss in subsequent
periods
— 24 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item reporting period prior period
1. Change in remeasurement
of net defined benefit
liability or assets
2. Share of other
comprehensive income of
investees that will not be
reclassified to profit and
loss
(II) Other comprehensive income
that will be reclassified to
profit and loss in subsequent
periods
1. Share of other
comprehensive income of
equity accounted
investees that will be
reclassified to profit and
loss in subsequent
periods
2. Gains and losses from
changes in fair value of
available-for-sale
financial assets
3. Gains and losses from
held-to-maturity
investment reclassified as
available-for-sale
financial assets
4. Effective portion of
hedging gains and losses
from cash flows
5. Exchange differences on
translation of foreign
operations
6. Others
VI. Total comprehensive income -163,002,594.53 675,094,323.40
VIII.Earnings per share:
— 25 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item reporting period prior period
(I) Basic earnings per share
(II) Diluted earnings per share
— 26 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
5. Consolidated Income Statement from the beginning of the year to the end
of the reporting period
Unit: RMB
Amounts for the Amounts for the
Item reporting period prior period
I. Total revenue 14,895,226,131.61 14,039,731,402.45
Including: Revenue 14,895,226,131.61 14,039,731,402.45
II. Total operating costs 14,291,982,521.03 14,023,599,432.69
Including: Operating costs 11,033,836,669.32 11,363,379,871.84
Business taxes and
surcharges 87,653,078.10 59,123,220.53
Sales expenses 855,236,974.12 827,987,403.28
Administrative expenses 1,013,255,447.51 804,817,760.04
Finance expenses 1,233,143,023.92 946,282,893.04
Loss on impairment of
assets 68,857,328.06 22,008,283.96
Plus: Gain on change in fair
value (“-” denotes loss) -2,177,906.88 967,670.22
Investment income (“-”
denotes loss) 77,519,744.85 45,626,015.23
Including: Investment
income from associates
and joint ventures -3,648,616.70 -2,962,964.04
Exchange gains (“-” denotes
loss)
III. Operating profit (“-” denotes loss) 678,585,448.55 62,725,655.21
Plus: Non-operating income 145,464,747.36 324,243,019.51
Including: Gain on disposal
of non-current assets 7,532,010.75 85,880,173.65
Less: Non-operating expenses 5,005,703.10 14,344,376.32
Including: Loss on disposal
of non-current assets 2,932,938.38 9,620,919.84
IV. Total profit (“-” denotes total loss) 819,044,492.81 372,624,298.40
Less:SpaceIncome tax expenses 293,576,753.60 56,092,305.40
V. Net profit (“-” denotes net loss) 525,467,739.21 316,531,993.00
Net profit attributable to owners of
the Company 561,325,638.84 341,197,491.42
Minority interest -35,857,899.63 -24,665,498.42
— 27 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item reporting period prior period
VI. Other comprehensive income after
tax, net -236,338,303.19 2,768,996.58
Other comprehensive income after
tax attributable to owners of the
Company, net -236,338,303.19 2,768,996.58
(I) Other comprehensive income
that will not be reclassified to
profit and loss in subsequent
periods
1. Change in remeasurement
of net defined benefit
liability or assets
2. Share of other
comprehensive income of
investees that will not be
reclassified to profit and
loss
(II) Other comprehensive income
that will be reclassified to profit
and loss in subsequent periods -236,338,303.19 2,768,996.58
1. Share of other
comprehensive income of
equity accounted investees
that will be reclassified to
profit and loss in
subsequent periods
2. Gains and losses from
changes in fair value of
available-for-sale financial
assets
3. Gains and losses from
held-to-maturity investment
reclassified as
available-for-sale financial
assets
— 28 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item reporting period prior period
4. Effective portion of hedging
gains and losses from cash
flows
5. Exchange differences on
translation of foreign
operations -236,338,303.19 2,768,996.58
6. Others
Net other comprehensive income after tax
attributable to minority interests
VII. Total comprehensive income 289,129,436.02 319,300,989.58
Total comprehensive income
attributable to owners of the
Company 324,987,335.65 343,966,488.00
Total comprehensive income
attributable to minority interest -35,857,899.63 -24,665,498.42
VIII.Earnings per share:
(I) Basic earnings per share 0.29 0.18
(II) Diluted earnings per share 0.29 0.18
— 29 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
6. Income Statement from the beginning of the year to the end of the
reporting period of the Company
Unit: RMB
Amounts for the Amounts for the
Item reporting period prior period
I. revenue 5,047,278,382.44 6,087,362,415.99
Less: Operating costs 4,136,925,880.78 4,847,384,999.67
Business taxes and
surcharges 21,119,502.75 27,340,586.96
Sales expenses 206,026,652.66 217,177,078.18
Administrative expenses 379,989,979.55 398,140,062.77
Finance expenses 1,044,808,233.11 675,547,032.46
Loss on impairment of
assets 3,497,972.04 3,134,745.48
Plus: Gain on change in fair
value (“-” denotes loss)
Investment income (“-”
denotes loss) 441,800,307.30 954,100,926.82
Including: Investment
income from associates
and joint ventures -413,026.02 343.23
II. Operating profit (“-” denotes loss) -303,289,531.15 872,738,837.29
Plus: Non-operating income 40,822,266.23 73,241,851.40
Including: Gain on disposal
of non-current assets 2,770,339.41 1,152,350.23
Less: Non-operating expenses 2,722,776.20 4,459,000.11
Including: Loss on disposal of
non-current assets 2,019,888.74 1,030,707.27
III. Total profit (“-” denotes total loss) -265,190,041.12 941,521,688.58
Less:SpaceIncome tax expenses -108,385,136.00 -9,419,183.74
IV. Net profit (“-” denotes net loss) -156,804,905.12 950,940,872.32
V. Other comprehensive income after
tax, net
(I) Other comprehensive income
that will not be reclassified to
profit and loss in subsequent
periods
— 30 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item reporting period prior period
1. Change in remeasurement
of net defined benefit
liability or assets
2. Share of other
comprehensive income of
investees that will not be
reclassified to profit and
loss
(II) Other comprehensive income
that will be reclassified to profit
and loss in subsequent periods
1. Share of other
comprehensive income of
equity accounted investees
that will be reclassified to
profit and loss in
subsequent periods
2. Gains and losses from
changes in fair value of
available-for-sale financial
assets
3. Gains and losses from
held-to-maturity investment
reclassified as
available-for-sale financial
assets
4. Effective portion of hedging
gains and losses from cash
flows
5. Exchange differences on
translation of foreign
operations
6. Others
VI. Total comprehensive income -156,804,905.12 950,940,872.32
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
— 31 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
7. Consolidated cash flow statement from the beginning of the year to the
end of the reporting period
Unit: RMB
Amounts for the Amounts for the
Item reporting period prior period
I. Cash flows from operating activities:
Cash received from sales of goods
and rendering of services 15,190,399,778.65 14,904,943,600.80
Tax rebates received 3,089,102.57 10,401,960.37
Cash received relating to other
operating activities 1,054,621,353.56 303,995,832.41
Subtotal of cash inflows from operating
activities 16,248,110,234.78 15,219,341,393.58
Cash paid for goods and services 12,298,195,594.69 11,659,833,146.60
Cash paid to and for employees 635,401,102.08 636,888,268.64
Payments of taxes 779,860,506.20 679,879,465.81
Cash paid relating to other operating
activities 11,159,116,366.24 897,107,342.31
Subtotal of cash outflows from operating
activities 24,872,573,569.21 13,873,708,223.36
Net cash flows from operating activities -8,624,463,334.43 1,345,633,170.22
II. Cash flows from investing activities:
Cash received from investments 400,000,000.00
Cash received from investment
income
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets 175,409.96 38,059,229.00
Net cash received from disposal of
subsidiaries and other business
units 75,035,211.41
Cash received relating to other
investing activities 46,401,366.66 292,669,675.00
Subtotal of cash inflows from investing
activities 446,576,776.62 405,764,115.41
Cash paid for purchase of fixed
assets, intangible assets and other
long-term assets 1,229,826,351.45 1,718,400,482.83
— 32 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item reporting period prior period
Cash paid on investments 386,000,000.00 3,000,000.00
Net cash paid for acquisition of
subsidiaries and other business
units
Cash paid relating to other investing
activities 1,000,000,000.00
Subtotal of cash outflows from investing
activities 1,615,826,351.45 2,721,400,482.83
Net cash flows from investing activities -1,169,249,574.83 -2,315,636,367.42
III. Cash flows from financing activities:
Cash received from borrowings 25,899,697,270.87 18,618,568,208.40
Cash received from bond issue
Cash received relating to other
financing activities 9,663,427,778.00 746,800,830.12
Subtotal of cash inflows from financing
activities 35,563,125,048.87 19,365,369,038.52
Cash repayments of amounts
borrowed 22,645,377,952.17 14,065,961,967.04
Cash paid for dividend and profit
distribution or interest payment 1,358,824,694.29 1,517,548,355.93
Including: dividend and profit paid to
minority interest by subsidiaries 3,251,866.09
Cash paid relating to other financing
activities 2,111,621,643.97 1,925,771,907.00
Subtotal of cash outflows from financing
activities 26,115,824,290.43 17,509,282,229.97
Net cash flows from financing activities 9,447,300,758.44 1,856,086,808.55
IV. Effect of foreign exchange rate
changes on cash and cash equivalents 34,793,895.67 -15,067,277.57
V. Net increase in cash and cash
equivalents -311,618,255.15 871,016,333.78
Plus: Balance of cash and cash
equivalents as at the
beginning of the period 976,096,861.30 726,532,928.96
VI. Balance of cash and cash equivalents
as at the end of the period 664,478,606.15 1,597,549,262.74
— 33 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
8. Cash flow statement of the Company from the beginning of the year to
the end of the reporting period
Unit: RMB
Amounts for the Amounts for the
Item reporting period prior period
I. Cash flows from operating activities:
Cash received from sales of goods
and rendering of services 5,210,843,830.78 5,371,474,096.02
Tax rebates received
Cash received relating to other
operating activities 141,891,448.03 110,879,238.34
Subtotal of cash inflows from operating
activities 5,352,735,278.81 5,482,353,334.36
Cash paid for goods and services 8,327,029,875.12 2,488,364,932.95
Cash paid to and for employees 260,064,379.66 299,515,071.91
Payments of taxes 102,183,916.09 244,244,379.01
Cash paid relating to other operating
activities 162,169,448.03 152,112,593.05
Subtotal of cash outflows from operating
activities 8,851,447,618.90 3,184,236,976.92
Net cash flows from operating activities -3,498,712,340.09 2,298,116,357.44
II. Cash flows from investing activities:
Cash received from investments 600,000,000.00 1,000,000,000.00
Cash received from investment
income 903,625.62 64,127,102.21
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets 63,697.60 17,069.00
Net cash received from disposal of
subsidiaries and other business
units
Cash received relating to other
investing activities 31,144,666.66
Subtotal of cash inflows from investing
activities 632,111,989.88 1,064,144,171.21
Cash paid for purchase of fixed
assets, intangible assets and other
long-term assets 83,729,374.57 115,959,072.50
Cash paid on investments 459,143,400.00 2,748,929,592.00
— 34 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item reporting period prior period
Net cash paid for acquisition of
subsidiaries and other business
units
Cash paid relating to other investing
activities 1,000,000,000.00
Subtotal of cash outflows from investing
activities 542,872,774.57 3,864,888,664.50
Net cash flows from investing activities 89,239,215.31 -2,800,744,493.29
III. Cash flows from financing activities:
Cash received from capital
contribution
Cash received from borrowings 7,779,390,636.80 10,978,803,329.35
Cash received from bond issue
Cash received relating to other
financing activities 9,663,427,778.00 884,960,591.31
Subtotal of cash inflows from financing
activities 17,442,818,414.80 11,863,763,920.66
Cash repayments of amounts
borrowed 10,884,994,455.54 8,187,049,989.79
Cash paid for dividend and profit
distribution or interest payment 1,142,470,646.57 1,085,259,221.76
Cash paid relating to other financing
activities 1,018,085,783.84 1,904,400,000.00
Subtotal of cash outflows from financing
activities 13,045,550,885.95 11,176,709,211.55
Net cash flows from financing activities 4,397,267,528.85 687,054,709.11
IV. Effect of foreign exchange rate
changes on cash and cash equivalents 14,555,105.56 -9,697,907.74
V. Net increase in cash and cash
equivalents 1,002,349,509.63 174,728,665.52
Plus: Space Balance of cash and cash
equivalents as at the beginning
of the period 40,590,357.33 64,392,029.09
VI. Balance of cash and cash equivalents
as at the end of the period 1,042,939,866.96 239,120,694.61
— 35 —
Report for the Third Quarter of 2015 of Shandong Chenming Paper Holdings Limited
II. Auditors’ Report
Is the third quarter report audited
□ Yes √ No
The third quarter report of the Company is unaudited.
Shandong Chenming Paper Holdings Limited
22 October 2015
— 36 —
