SHAANDONG CHENNMING PAPEER HOLLDINGS LIMIT ED *
20116 Third Quarteerly Repport
Occtober 20016
Report for the Third Quarter of 2016 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 quarterly report.
Chen Hongguo, the head of the Company, Hu Jinbao, the head in charge of
accounting and Dong Lianming, the head of the accounting department
(Accounting Officer), declare that they warrant the truthfulness, accuracy and
completeness of the financial statements in the quarterly report.
— 2—
Report for the Third Quarter of 2016 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) 85,756,600,987.16 77,961,699,547.59 10.00%
Net assets attributable to
shareholders of the
Company (RMB) 21,965,933,958.53 16,871,494,584.82 30.20%
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) 5,965,699,811.33 15.25% 16,572,058,544.35 11.26%
Net profit attributable to
shareholders of the
Company (RMB) 614,998,648.94 115.84% 1,554,163,519.54 176.87%
Net profit after extraordinary
gains or losses attributable
to shareholders of the
Company (RMB) 522,725,460.32 149.87% 1,264,536,544.14 229.60%
Net cash flows from operating
activities (RMB) — — -3,120,091,496.30 63.82%
Basic earnings per share
(RMB per share) 0.29 93.33% 0.74 155.17%
Diluted earnings per share
(RMB per share) 0.29 93.33% 0.74 155.17%
Rate of return on net assets on
weighted average basis 2.91% 1.12% 8.80% 5.04%
Note: Net profit attributable to ordinary shareholders of the Company shall exclude the effect of
interest payment deferred and accumulated to subsequent periods for perpetual bonds under
other equity instruments. The interest accrued but not yet declared for the perpetual bonds for
the period from January to September of 2016 (of RMB114,645,792.35) was deducted when
calculating the financial indicators such as earnings per share and the rate of return on net
assets on weighted average basis.
— 3—
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
Unit: RMB
Am ounts 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) -1,336,416.11
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) 312,406,806.87
Profit or loss from debt
restructuring 1,832,079.05
Profit or loss arising from
external entrusted loans 65,910,377.36
Non-operating gains and
losses other than the above
items 6,029,580.49
Gain or loss from changes in
fair value of consumable
biological assets
subsequently measured at
fair value -10,599,543.68
Less: Effect of income tax 81,481,835.71
Effect of minority
interests (after tax) 3,134,072.87
Total 289,626,975.40 —
— 4—
Report for the Third Quarter of 2016 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 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.
— 5—
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
II. Total number of shareholders and the shareholdings of the top ten
shareholders as at the end of the reporting period
1. Total number of shareholders of ordinary shares and shareholders of
preference shares with restored voting rights and the shareholdings of the
top ten shareholders
Unit: share
Total number of shareholders of 102,567, of which 78,829 were Total number of shareholders of 0
ordinary shares as at the end holders of A shares, 23,251 were preference shares with restored voting
of the reporting period holders of B shares and 487 were right as at the end of the reporting
holders of H shares period (if any)
Shareholdings of top 10 shareholders
Name of shareholders Nature of Percentage of Number of Number of Share pledged or
shareholders shareholding shares held restricted locked-up
shares held Status of Number
shares
SHOUGUANG CHENMING State-owned legal 15.13% 293,003,657 0 Pledged 188,089,000
HOLDINGS COMPANY person
LIMITED
HKSCC NOMINEES Overseas legal 13.26% 256,807,900 0
LIMITED person
CHENMING HOLDINGS Overseas legal 7.26% 140,662,979 0
(HONG KONG) LIMITED person
CENTRAL HUIJIN ASSET Domestic 2.07% 40,137,900 0
MANAGEMENT LTD. non-state-owned
legal person
HUATAI SECURITIES CO., Domestic 1.22% 23,654,061 0
LTD. non-state-owned
legal person
BOSERA FUNDS — BANK Others 0.93% 18,000,000 0
OF CHINA — PING AN
LIFE INSURANCE —
PING AN LIFE
INSURANCE
ENTRUSTED
INVESTMENT
NO.1 ASSET
MANAGEMENT PLAN
ANBANG ASSET Others 0.91% 17,584,190 0
MANAGEMENT —
CHINA MERCHANTS
BANK — ANBANG
ASSET — CHINA
MERCHANTS BANK —
ANBANG ASSET —
WIN-WIN NO.3
COLLECTIVE ASSET
MANAGEMENT
PRODUCT
NATIONAL SOCIAL Others 0.58% 11,156,400 0
SECURITY FUND 418
— 6—
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
INDUSTRIAL AND Others 0.49% 9,500,000 0
COMMERCIAL BANK
OF CHINA CO., LTD. —
BOSERA EXCELLENT
BRAND STOCK FUND
(LOF)
BBH A/C VANGUARD Overseas legal 0.44% 8,608,238 0
EMERGING MARKETS person
STOCK INDEX FUND
— 7—
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
Shareholdings of the top ten shareholders of non-restricted shares
Number of Class of shares
non-restricted
Name of shareholders shares held Class of shares Number
SHOUGUANG CHENMING 293,003,657 RMB ordinary 293,003,657
HOLDINGS COMPANY LIMITED shares
HKSCC NOMINEES LIMITED 256,807,900 Overseas listed 256,807,900
foreign shares
CHENMING HOLDINGS (HONG 140,662,979 Domestic listed 46,447,979
KONG) LIMITED foreign shares
Overseas listed 94,215,000
foreign shares
CENTRAL HUIJIN ASSET 40,137,900 RMB ordinary 40,137,900
MANAGEMENT LTD. shares
HUATAI SECURITIES CO., LTD. 23,654,061 RMB ordinary 23,654,061
shares
BOSERA FUNDS — BANK OF 18,000,000 RMB ordinary 18,000,000
CHINA — PING AN LIFE shares
INSURANCE — PING AN LIFE
INSURANCE ENTRUSTED
INVESTMENT NO.1 ASSET
MANAGEMENT PLAN
ANBANG ASSET MANAGEMENT — 17,584,190 RMB ordinary 17,584,190
CHINA MERCHANTS BANK — shares
ANBANG ASSET — CHINA
MERCHANTS BANK — ANBANG
ASSET — WIN-WIN NO.3
COLLECTIVE ASSET
MANAGEMENT PRODUCT
NATIONAL SOCIAL SECURITY 11,156,400 RMB ordinary 11,156,400
FUND 418 shares
INDUSTRIAL AND COMMERCIAL 9,500,000 RMB ordinary 9,500,000
BANK OF CHINA CO., LTD. — shares
BOSERA EXCELLENT BRAND
STOCK FUND (LOF)
BBH A/C VANGUARD EMERGING 8,608,238 Domestic listed 8,608,238
MARKETS STOCK INDEX FUND foreign shares
Connected relationship or A shareholder, Chenming Holdings (Hong Kong) Limited,
acting-in-concert relationship among which is an overseas legal person, is a wholly-owned
the above shareholders subsidiary of a shareholder, Shouguang Chenming Holdings
Company Limited, which is a state-owned legal person.
Hence they are persons acting in concert under
Administration of Disclosure of Information on the Change
of Shareholding 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 it is also
not aware that any other shareholders of tradable shares are
connected with each other.
— 8—
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
Whether an agreed repurchase transaction was entered into during the reporting
period by the top 10 ordinary shareholders and top 10 shareholders of non-
restricted shares of the Company
□ Yes √ No
The top 10 ordinary shareholders and top 10 shareholders of non-restricted
ordinary shares of the Company did not enter into any agreed repurchase
transaction during the reporting period.
2. Total number of shareholders of preference shares and shareholdings of
the top ten shareholders of preference shares
√ Applicable □ No applicable
Unit: share
Total number of shareholders 10
of preference shares as at
the end of the reporting
period
Shareholdings of the top ten shareholders of preference 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
GUOXIN LEASING CO., Domestic 17.78% 8,000,000 0
LTD. non-state-owned
legal person
BANK OF Others 14.22% 6,400,000 0
COMMUNICATIONS
INTERNATIONAL
TRUST CO.,LTD. —
HUILI NO.136 SINGLE
CAPITAL TRUST
BEIJING YIBEN Domestic 13.56% 6,100,000 0
ZHONGXING non-state-owned
INVESTMENT legal person
MANAGEMENT CO.,
LTD.
— 9—
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
QILU BANK CO., LTD. — Others 13.33% 6,000,000 0
QILU BANK QUANXIN
WEALTH
MANAGEMENT
PRODUCT SERIES
HENGFENG BANK CO., Domestic 11.11% 5,000,000 0
LTD. non-state-owned
legal person
LAIWU GUANGYANG Domestic 10.00% 4,500,000 0
INVESTMENT CO., LTD. non-state-owned
legal person
SHANGHAI STATE-OWNED State-owned legal 6.67% 3,000,000 0
ASSETS OPERATION person
CO., LTD.
NCF — MINSHENG BANK Others 4.44% 2,000,000 0
— CHINA FORTUNE
INTERNATIONAL
TRUST — CHINA
FORTUNE TRUSTMIN
XIN NO. 11 SINGLE
CAPITAL TRUST
SHANDONG TAISHAN Domestic 4.44% 2,000,000 0
STEEL GROUP non-state-owned
COMPANY LIMITED legal person
SHANDONG DONGTAI Domestic 4.44% 2,000,000 0
IMPORT AND EXPORT non-state-owned
CO., LTD. legal person
Shareholdings of the top ten shareholders of non-restricted preference shares
Name of shareholders Total number of non-restricted preference shares held
GUOXIN LEASING CO., LTD. 8,000,000
BANK OF COMMUNICATIONS INTERNATIONAL TRUST
CO.,LTD. — HUILI NO.136 SINGLE CAPITAL TRUST 6,400,000
BEIJING YIBEN ZHONGXING INVESTMENT 6,100,000
MANAGEMENT CO., LTD.
QILU BANK CO., LTD. — QILU BANK QUANXIN 6,000,000
WEALTH MANAGEMENT PRODUCT SERIES
HENGFENG BANK CO., LTD. 5,000,000
LAIWU GUANGYANG INVESTMENT CO., LTD. 4,500,000
SHANGHAI STATE-OWNED ASSETS OPERATION CO., 3,000,000
LTD.
NCF — MINSHENG BANK — CHINA FORTUNE 2,000,000
INTERNATIONAL TRUST — CHINA FORTUNE
TRUSTMIN XIN NO. 11 SINGLE CAPITAL TRUST
SHANDONG TAISHAN STEEL GROUP COMPANY 2,000,000
LIMITED
SHANDONG DONGTAI IMPORT AND EXPORT CO., LTD. 2,000,000
Connected relationship or acting-in-concert relationship It is not aware that the above shareholders of preference
among the above shareholders shares are persons acting in concert and it is also not aware
that the above shareholders of preference shares are
connected with each other.
— 10
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
III Material matters
I. Details and reasons for changes of major accounting statement items and
financial indicators during the reporting period
√ Applicable □ Not applicable
(I) Analysis of the assets and liabilities of the Company
Unit: RMB
30 September 31 December Reason
Item 2016 2015 Change for change
Prepayments 1,858,415,373.03 1,072,990,234.05 73.20% (1)
Non-current assets due within
one year 4,510,195,162.57 2,893,133,653.86 55.89% (2)
Other current assets 9,882,868,253.14 7,582,839,356.54 30.33% (3)
Other non-current assets 317,421,600.75 1,242,358,865.33 -74.45% (4)
Bills payable 2,279,626,195.75 3,281,599,412.31 -30.53% (5)
Non-current liabilities due
within one year 3,205,586,768.36 5,471,286,735.91 -41.41% (6)
Long-term payables 3,297,077,770.35 344,000,000.00 858.45% (7)
Special payables 481,039,716.66 176,983,516.66 171.80% (8)
Other equity instruments 7,060,300,000.00 2,582,800,000.00 173.36% (9)
Explanation of the reasons leading to the major changes:
(1) Prepayments increased by 73.20% as compared to the beginning of the year
mainly due to an increase in prepayments for raw materials for the year.
(2) Non-current assets due within one year increased by 55.89% as compared to
the beginning of the year mainly due to an increase in long-term finance
lease payments due within one year and the reclassification of entrusted
loans of RMB900 million due within one year.
(3) Other current assets increased by 30.33% as compared to the beginning of
the year mainly due to an increase in receivables under financial leases due
within one year.
(4) Other non-current liabilities decreased by 74.45% as compared to the
beginning of the year mainly due to the reclassification of entrusted loans
of RMB900 million into non-current assets due within one year.
(5) Bills payable decreased by 30.53% as compared to the beginning of the year
mainly due to an decrease in payments by bills.
— 10 —
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
(6) Non-current assets due within one year decreased by 41.41% as compared to
the beginning of the year mainly due to the repayment of corporate bonds of
RMB2,000 million.
(7) Long-term payables increased by 858.45% as compared to the beginning of
the year mainly due to an increase of payments for equipment finance leases
of the Company.
(8) Special payables increased by 171.80% as compared to the beginning of the
year mainly due to the government special fund of RMB304 million received
by Huanggang Chenming, a subsidiary of the Company.
(9) Other equity instruments increased by 173.36% as compared to the
beginning of the year mainly due to the issue of preference shares in the
amount of RMB4,500 million.
(II) Reasons for significant year-on-year changes of income statement items
during the reporting period
Unit: RMB
January - January -
September September Reasons
Item 2016 2015 Change for change
Business taxes and surcharges 115,224,750.98 87,653,078.10 31.46% (1)
Asset impairment losses 133,759,958.97 68,857,328.06 94.26% (2)
Investment income 59,098,978.74 77,519,744.85 -23.76% (3)
Non-operating income 331,382,681.55 145,464,747.36 127.81% (4)
Non-operating expenses 6,804,497.54 5,005,703.10 35.93% (5)
Income tax expenses 406,419,988.73 293,576,753.60 38.44% (6)
Explanation of the reasons leading to the major changes:
(1) Business taxes and surcharges increased by 31.46% as compared to the
corresponding period of last year mainly due to the higher revenues of the
Company resulting from a rise in prices of the products and an increase of
sales.
(2) Asset impairment losses increased by 94.26% as compared to the
corresponding period of last year mainly due to impairment provisions for
fixed assets made by Fuyu Chenming, a subsidiary of the Company.
— 11 —
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
(3) Investment income decreased by 23.76% as compared to the corresponding
period of last year mainly due to an increase in investment loss from long-
term equity investments accounted for using the equity method.
(4) Non-operating income increased by 127.81% as compared to the
corresponding period of last year mainly due to an increase in the
government grants received by the Company.
(5) Non-operating expenses increased by 35.93% as compared to the
corresponding period of last year mainly due to an increase in net loss on
disposal of fixed assets.
(6) Income tax expenses increased by 38.44% as compared to the corresponding
period of last year mainly due to the higher profitability of the Company.
(III) Analysis of cash flows during the reporting period
Unit: RMB
January - January -
September September Reasons
Item 2016 2015 Change for change
Net cash flows from operating
activities -3,120,091,496.30 -8,624,463,334.43 63.82% (1)
Net cash flows from
investment activities -895,903,143.36 -1,169,249,574.83 23.38% (2)
Net cash flows from financing
activities 4,698,016,246.43 9,447,300,758.44 -50.27% (3)
Explanation of the reasons leading to the major changes:
(1) Net cash flows from operating activities increased by 63.82% mainly due to
a decrease in net external investment of the financial leasing business.
(2) Net cash flows from investing activities increased by 23.38% mainly due to
an increase in special government grants received during the period.
(3) Net cash flows from financial activities decreased by 50.27% mainly due to
the repayment of short-term commercial paper, corporate bonds and
privately placed bonds during the period.
— 12 —
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
II. Progress in respect to material matters and analysis of the related effects
and solutions
√ Applicable □ Not applicable
1. Completion of the non-public issue of 45.00 million preference shares with
proceeds of RMB4,500 million.
On 17 September 2015, as approved by the document Zheng Jian Xu Ke No.
[2015] 2130 issued by China Securities Regulatory Commission to issue not
more than 45,000,000 preference shares, the Company issued 22,500,000
preference shares on 17 March 2016 with actual net proceeds of
RMB2,238.75 million (net of issue also expenses) from the non-public issue
of this tranche of preference shares; 10,000,000 preference shares were
issued by the Company on 17 August 2016 with actual net proceeds of
RMB995.00 million (net of issue expenses) from the non-public issue of this
tranche of preference shares were; and 12,500,000 preference shares were
issued by the Company on 22 September 2016 with actual net proceeds of
RMB1,243.75 million (net of issue expenses) from the non-public issue of
this tranche of preference shares.
2. Non-public issue of A shares
At the fourth extraordinary meeting of the eight session of the Board, the
Resolution on the Adjustments to the Use of Proceeds, Proceeds Amount,
Issue Price and Issue Volume for the Non-Public Issues of A Shares and
relevant resolutions were considered and approved. In view of recent
fluctuation in the securities market and the actual condition of the Company,
based on the authorisation granted to the Board at the general meeting, the
Company intended to cancel the utilisation of proceeds of RMB1,500.00
million for the repayment of bank loans. The proceeds to be raised from the
issue will be adjusted from not more than RMB5,200.00 million (inclusive)
to not more than RMB3,700.00 million (inclusive). It is proposed that the
proceeds, net of issue expenses, will be fully utilised for the bleached
sulfate pine chemical pulp project with annual production capacity of
400,000 tonnes. On 27 September 2016, the Company issued the
Announcement on the Reply on the Supplementary Feedback on the
Application Documents Regarding the Non-public Issue of Shares and the
Reply on the Supplementary Feedback on the Application Documents
Regarding the Non-public Issue of Shares.
— 13 —
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
As of the disclosure date of this report, the Company has not obtained
relevant approval from China Securities Regulatory Commission (“CSRC”).
The Company will disclose information on CSRC approval in a timely
manner.
Search index of the ad-hoc
Material matter Date of disclosure report disclosure website
Second Revised Proposal on the
Non-public Issue of Shares for
2016 27 September 2016 http://www.cninfo.com.cn
Reply on the Supplementary
Feedback on the Application
Documents Regarding the
Non-public Issue of Shares (I) 27 September 2016 http://www.cninfo.com.cn
Announcement on the Reply on
the Supplementary Feedback
on the Application Documents
Regarding the Non-public Issue
of Shares 27 September 2016 http://www.cninfo.com.cn
Report on Non-public Issue of
Preference Shares (Third
Tranche) 30 September 2016 http://www.cninfo.com.cn
Report on Non-public Issue of
Preference Shares (Second
Tranche) 25 August 2016 http://www.cninfo.com.cn
Report on Non-public Issue of
Preference Shares 25 March 2016 http://www.cninfo.com.cn
— 14 —
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
III. Undertakings of the Company, shareholders, beneficial controllers,
acquirers, directors, supervisors, senior management or other related
parties performed during the reporting period and not yet performed and
subsisting as at the end of the reporting period
√ Applicable □ Not applicable
Particulars
Party involved Type of Date of on the
Undertaking in undertaking undertaking Details of undertaking undertaking Term performance
Undertaking on
shareholding
structure
reformation
Undertaking
made in
offering
documents or
shareholding
alternation
documents
Undertaking
made during
asset
reconstruction
Undertaking Shouguang Non-competitive (1) Shouguang Chenming Holdings Co., 22 May 2008 9999-12-31 Strictly
made on Chenming undertaking Ltd. (“Shouguang Chenming Holdings”) performed
initial public Holdings Co., shall not engage, whether solely, jointly, or
offering or Ltd. by representing itself or any other persons
refinancing or companies, and shall not procure its
associates (as defined in The Listing Rules
of Hong Kong Stock Exchange) to engage,
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 Company to jeopardise
the legal interests of Chenming Group and
its shareholders with other persons or
companies or on their behalf.
— 15 —
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
Shouguang Defective (1) According to the plan on defective 16 January 9999-12-31 Strictly
Chenming properties properties of the Company, Shouguang 2008 performed
Holdings Co., Chenming Holdings Co., Ltd. (“Shouguang
Ltd. Chenming Holdings”) has guaranteed and
undertaken that: according to the
application of the Company, for defective
property(ies) owned by the Company and
its 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.
Equity incentive
undertaking
Other The Company Undertaking of Taking into consideration the dilution of 25 March 2016 9999-12-31 Strictly
undertakings specific the current return of shareholders of performed
made to remedial ordinary shares due to the issue of
minority measures in the preference shares, in order to maintain
shareholders non-public issue compliance with the Opinions of the
of the of preference General Office of the State Council on
Company shares Further Strengthening the Protection of
Legitimate Rights and Interests of Small
and Medium Investors in Capital Market,
protect the interests of shareholders of
ordinary shares and make up for the
potential loss of current return due to the
issue of preference shares, the Company
has undertaken to adopt various measures
to ensure the effective use of proceeds,
prevent the dilution of the current return
and enhance future profitability.
Does the Yes
undertaking
performed
timely?
IV. Estimate of the operating results for 2016
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
explanation
□ Applicable √ Not applicable
— 16 —
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
V. Security investments
□ Applicable √ Not applicable
The Company did not have any security investments during the reporting period.
VI. Derivatives investments
□ Applicable √ Not applicable
The Company did not have any derivative investments during the reporting
period.
VII. Registration report on reception of research investigations, communications
and interviews during the reporting period
√ Applicable □ Not applicable
Index of the basic
Manner of Class of parties information on research
Date of reception reception accomm odated investigations
5 May 2016 On-site research Institutions http://www.cninfo.com.cn
investigation
19 May 2016 On-site research Institutions http://www.cninfo.com.cn
investigation
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VIII. External guarantees against the rules and regulations
□ Applicable √ Not applicable
There was no external guarantee provided by the Company which was against the
rules and regulations during the reporting period.
IX. Appropriation of funds of the Company by the controlling shareholder
and its related parties for non-operating purposes
□ Applicable √ Not applicable
There was no appropriation of funds of the Company by the controlling
shareholder and its related parties for non-operating purposes during the
reporting period.
— 17 —
Report for the Third Quarter of 2016 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 2016
Unit: RMB
Item Closing balance Opening balance
CURRENT ASSETS:
Monetary funds 11,556,857,100.00 8,984,326,016.01
Bills receivable 2,918,489,409.92 3,998,782,845.65
Accounts receivable 3,629,832,726.16 3,951,287,979.32
Prepayments 1,858,415,373.03 1,072,990,234.05
Other receivables 1,620,882,909.58 1,469,573,364.01
Inventories 5,199,609,548.00 5,210,917,891.42
Non-current assets due within one year 4,510,195,162.57 2,893,133,653.86
Other current assets 9,882,868,253.14 7,582,839,356.54
Total current assets 41,177,150,482.40 35,163,851,340.86
NON-CURRENT ASSETS:
Available-for-sale financial assets 109,000,000.00 109,000,000.00
Long-term receivables 10,697,834,976.50 9,084,087,143.84
Long-term equity investments 63,680,857.75 70,492,256.38
Investment property 14,693,239.84 15,996,931.87
Fixed assets 24,651,242,069.32 24,169,725,529.18
Construction in progress 6,479,169,627.05 5,829,619,258.48
Construction materials 17,631,449.28 14,662,116.76
Intangible assets 1,547,109,861.69 1,462,706,060.63
Goodwill 20,283,787.17 20,283,787.17
Long-term prepaid expenses 159,639,080.28 165,686,946.61
Deferred income tax assets 501,743,955.13 613,229,310.48
Other non-current assets 317,421,600.75 1,242,358,865.33
Total non-current assets 44,579,450,504.76 42,797,848,206.73
Total assets 85,756,600,987.16 77,961,699,547.59
CURRENT LIABILITIES:
Short-term borrowings 28,509,061,842.06 24,755,535,672.86
Bills payable 2,279,626,195.75 3,281,599,412.31
Accounts payable 2,904,703,825.68 2,942,337,386.57
Advance receipts 229,741,598.03 180,504,227.01
Staff remuneration payables 177,092,814.74 205,840,694.03
Taxes payable 189,353,706.24 194,852,483.80
— 18 —
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
Item Closing balance Opening balance
Interest payable 178,253,753.71 150,075,698.23
Other payables 930,743,530.04 1,158,567,353.38
Non-current liabilities due within one year 3,205,586,768.36 5,471,286,735.91
Other current liabilities 9,161,954,101.68 10,293,543,297.00
Total current liabilities 47,766,118,136.29 48,634,142,961.10
NON-CURRENT LIABILITIES:
Long-term borrowings 6,641,725,554.98 5,169,381,063.83
Bonds payable 3,792,620,016.26 3,788,539,249.59
Long-term payables 3,297,077,770.35 344,000,000.00
Special payables 481,039,716.66 176,983,516.66
Deferred income 1,440,576,343.09 1,495,104,889.26
Other non-current liabilities 0.00 1,094,621,421.67
Total non-current liabilities 15,653,039,401.34 12,068,630,141.01
TOTAL LIABILITIES 63,419,157,537.63 60,702,773,102.11
OWNERS’ EQUITY:
Share capital 1,936,405,467.00 1,936,405,467.00
Other equity instruments 7,060,300,000.00 2,582,800,000.00
Including: Preference shares 4,477,500,000.00 0.00
Perpetual bonds 2,582,800,000.00 2,582,800,000.00
Capital reserves 6,149,150,177.41 6,149,138,276.81
Other comprehensive income -550,112,347.53 -345,014,864.26
Surplus reserves 1,132,116,106.40 1,132,116,106.40
Retained profit 6,238,074,555.25 5,416,049,598.87
Total equity attributable to equity holders of
the company 21,965,933,958.53 16,871,494,584.82
Minority interest 371,509,491.00 387,431,860.66
Total owners’ equity 22,337,443,449.53 17,258,926,445.48
TOTAL LIABILITIES AND OWNERS’
EQUITY 85,756,600,987.16 77,961,699,547.59
Legal Representative: Head in charge of Head of the accounting
Chen Hongguo accounting: department:
Hu Jinbao Dong Lianming
— 19 —
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
2. Balance sheet of the Company
Unit: RMB
Item Closing balance Opening balance
CURRENT ASSETS:
Monetary funds 7,693,569,916.06 5,700,832,345.61
Bills receivable 405,420,289.67 1,279,192,805.78
Accounts receivable 2,119,523,678.37 2,054,668,707.47
Prepayment 961,849,838.50 354,158,061.49
Interest receivable 5,277,524.75 0.00
Dividend receivable 200,000,000.00 200,000,000.00
Other receivables 26,835,382,857.96 23,168,599,276.40
Inventories 765,625,458.88 770,515,314.04
Non-current assets due within one year 900,000,000.00 0.00
Other current assets 0.00 44,180,954.64
Total current assets 39,886,649,564.19 33,572,147,465.43
NON-CURRENT ASSETS:
Available-for-sale financial assets 73,000,000.00 73,000,000.00
Long-term equity investments 14,767,170,076.34 13,526,953,706.49
Investment property 14,693,239.84 15,996,931.87
Fixed assets 3,374,995,429.64 3,494,527,564.35
Construction in progress 50,679,037.47 39,945,237.44
Construction materials 71,973.35 1,480,399.83
Intangible assets 302,728,264.73 308,890,444.95
Deferred income tax assets 157,647,459.43 146,800,984.93
Other non-current assets 0.00 900,000,000.00
Total non-current assets 18,740,985,480.80 18,507,595,269.86
TOTAL ASSETS 58,627,635,044.99 52,079,742,735.29
CURRENT LIABILITIES:
Short-term borrowings 7,486,448,606.02 7,288,876,600.43
Bills payable 2,305,000,000.00 1,095,500,000.00
Accounts payable 1,009,126,854.94 952,024,758.38
Advance receipts 3,203,012,664.28 735,151,335.79
Staff remuneration payables 73,643,744.23 84,950,702.67
Taxes payable 34,728,038.71 37,964,445.54
Interest payable 178,253,753.71 150,075,698.23
Other payables 4,465,354,796.73 4,342,643,198.14
Non-current liabilities due within one year 2,231,500,380.11 4,339,346,982.33
Other current liabilities 9,161,954,101.68 10,293,543,297.00
Total current liabilities 30,149,022,940.41 29,320,077,018.51
NON-CURRENT LIABILITIES:
Long-term borrowings 1,551,378,311.41 1,051,891,417.64
Bonds payable 3,792,620,016.26 3,788,539,249.59
Long-term payables 2,346,687,666.84 0.00
— 20 —
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
Item Closing balance Opening balance
Deferred income 57,658,091.40 61,468,322.53
Other non-current liabilities 0.00 1,094,621,421.67
Total non-current liabilities 7,748,344,085.91 5,996,520,411.43
Total liabilities 37,897,367,026.32 35,316,597,429.94
OWNERS’ EQUITY:
Share capital 1,936,405,467.00 1,936,405,467.00
Other equity instruments 7,060,300,000.00 2,582,800,000.00
Including: Preference shares 4,477,500,000.00 0.00
Perpetual bonds 2,582,800,000.00 2,582,800,000.00
Capital reserves 5,938,852,560.70 5,938,840,660.10
Surplus reserves 1,119,926,524.49 1,119,926,524.49
Retained profit 4,674,783,466.48 5,185,172,653.76
Total owners’ equity 20,730,268,018.67 16,763,145,305.35
TOTAL LIABILITIES AND OWNERS’
EQUITY 58,627,635,044.99 52,079,742,735.29
3. Consolidated Income Statement for the Reporting Period
Unit: RMB
Am ounts for the Am ounts for the
Item reporting period prior period
I. Total revenue 5,965,699,811.33 5,176,528,453.85
Including: Revenue 5,965,699,811.33 5,176,528,453.85
II. Total operating costs 5,377,887,845.68 4,884,195,563.83
Including: Operating costs 4,144,701,407.84 3,663,452,008.01
Business taxes and surcharges 29,736,313.69 36,419,101.44
Sales and distribution expenses 289,990,334.43 304,163,150.41
General and administrative
expenses 391,902,602.27 359,001,478.25
Finance expenses 424,836,614.05 487,670,744.81
Loss on impairment of assets 96,720,573.40 33,489,080.91
Plus: Gain on change in fair value (“-”
denotes loss) 0.00 0.00
Investment income (“-” denotes
loss) 22,090,548.96 30,886,998.53
Including: Investment income from
associates and joint
ventures 392,435.75 -1,503,585.25
III. Operating profit (“-” denotes loss) 609,902,514.61 323,219,888.55
Plus: Non-operating income 102,474,327.24 70,374,708.87
Including: Gain on disposal of
non-current assets 324,435.53 489,331.81
Less: Non-operating expenses 801,515.18 1,674,673.26
Including: Loss on disposal of non-current
assets 34,165.48 249,189.04
— 21 —
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
Am ounts for the Am ounts for the
Item reporting period prior period
IV. Total profit (“-” denotes total loss) 711,575,326.67 391,919,924.16
Less: Income tax expenses 99,388,566.27 120,165,450.99
V. Net profit (“-” denotes net loss) 612,186,760.40 271,754,473.17
Net profit attributable to shareholders of
the Company 614,998,648.94 284,937,568.33
Profit or loss of minority interest -2,811,888.54 -13,183,095.16
VI. Other comprehensive income after tax,
(net) -50,780,213.13 -252,355,593.07
Other comprehensive income after tax
attributable to shareholders of the
Company, (net) -50,780,213.13 -252,355,593.07
(II) Other comprehensive income that will
be reclassified to profit or loss in
subsequent periods -50,780,213.13 -252,355,593.07
5. Exchange differences on translation of
foreign operations -50,780,213.13 -252,355,593.07
VII. Total comprehensive income 561,406,547.27 19,398,880.10
Total other comprehensive income
attributable to shareholders of the
Company 564,218,435.81 32,581,975.26
Total comprehensive income attributable
to minority interest -2,811,888.54 -13,183,095.16
VIII. Earnings per share:
(I) Basic earnings per share 0.29 0.15
(II) Diluted earnings per share 0.29 0.15
Legal Representative: Head in charge of Head of the financial
Chen Hongguo accounting: department:
Hu Jinbao Dong Lianming
— 22 —
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
4. Income statement of the Company for the Reporting Period
Unit: RMB
Am ounts for the Am ounts for the
Item reporting period prior period
I. Revenue 1,800,634,310.34 1,878,838,439.05
Less: Operating costs 1,433,887,369.01 1,537,566,162.27
Business taxes and surcharges 10,099,093.08 7,890,558.36
Sales and distribution expenses 68,618,973.83 73,636,182.42
General and administrative
expenses 140,786,536.50 132,936,512.18
Finance expenses 54,057,408.65 389,353,175.95
Loss on impairment of assets -4,942,941.64 2,884,263.80
Plus: Gain on change in fair value (“-”
denotes loss) 0.00 0.00
Investment income (“-” denotes
loss) 21,954,581.39 32,467,707.72
Including: Investment income from
associates and joint
ventures 256,468.18 -65,625.61
II. Operating profit (“-” denotes loss) 120,082,452.30 -232,960,708.21
Plus: Non-operating income 51,354,806.03 36,199,171.33
Including: Gain on disposal of non-
current assets 0.00 7,836.79
Less: Non-operating expenses 470,784.28 646,959.76
Including: Loss on disposal of non-current
assets 784.28 96,959.76
III. Total profit (“-” denotes total loss) 170,966,474.05 -197,408,496.64
Less: Income tax expenses 19,922,995.56 -34,405,902.11
IV. Net profit (“-” denotes net loss) 151,043,478.49 -163,002,594.53
V. Other comprehensive income after tax,
(net) 0.00 0.00
VI. Total comprehensive income 151,043,478.49 -163,002,594.53
VII. Earnings per share:
(I) Basic earnings per share — —
(II) Diluted earnings per share — —
— 23 —
Report for the Third Quarter of 2016 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
Am ounts for the Am ounts for the
Item reporting period prior period
I. Total revenue 16,572,058,544.35 14,895,226,131.61
Including: Revenue 16,572,058,544.35 14,895,226,131.61
II. Total operating costs 15,000,475,024.81 14,291,982,521.03
Including: Operating costs 11,408,668,718.07 11,033,836,669.32
Business taxes and surcharges 115,224,750.98 87,653,078.10
Sales and distribution expenses 863,724,991.48 855,236,974.12
General and administrative
expenses 1,085,916,429.65 1,013,255,447.51
Finance expenses 1,393,180,175.66 1,233,143,023.92
Loss on impairment of assets 133,759,958.97 68,857,328.06
Plus: Gain on change in fair value (“-”
denotes loss) -10,599,543.68 -2,177,906.88
Investment income (“-”denotes loss) 59,098,978.74 77,519,744.85
Including: Investment income from
associates and joint ventures -6,811,398.62 -3,648,616.70
III. Operating profit (“-” denotes loss) 1,620,082,954.60 678,585,448.55
Plus: Non-operating income 331,382,681.55 145,464,747.36
Including: Gain on disposal of
non-current assets 2,741,063.58 7,532,010.75
Less: Non-operating expenses 6,804,497.54 5,005,703.10
Including: Loss on disposal of non-current
assets 4,077,479.69 2,932,938.38
IV. Total profit (“-” denotes total loss) 1,944,661,138.61 819,044,492.81
Less: Income tax expenses 406,419,988.73 293,576,753.60
V. Net profit (“-” denotes net loss) 1,538,241,149.88 525,467,739.21
Net profit attributable to owners of the
Company 1,554,163,519.54 561,325,638.84
Minority interest -15,922,369.66 -35,857,899.63
VI. Other comprehensive income after tax, net -205,097,483.27 -236,338,303.19
Other comprehensive income after tax
attributable to owners of the Company,
(net) -205,097,483.27 -236,338,303.19
(II) Other comprehensive income that will
be reclassified to profit and loss in
subsequent periods -205,097,483.27 -236,338,303.19
5. Exchange differences on translation of
foreign operations -205,097,483.27 -236,338,303.19
VII. Total comprehensive income 1,333,143,666.61 289,129,436.02
Total comprehensive income attributable
to owners of the Company 1,349,066,036.27 324,987,335.65
— 24 —
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
Am ounts for the Am ounts for the
Item reporting period prior period
Total comprehensive income attributable
to minority interest -15,922,369.66 -35,857,899.63
VIII. Earnings per share:
(I) Basic earnings per share 0.74 0.29
(II) Diluted earnings per share 0.74 0.29
6. Income Statement of the Company from the beginning of the year to the end
of the reporting period
Unit: RMB
Am ounts for the Am ounts for the
Item reporting period prior period
I. Revenue 5,205,542,239.30 5,047,278,382.44
Less: Operating costs 4,183,283,135.43 4,136,925,880.78
Business taxes and surcharges 23,130,058.25 21,119,502.75
Sales and distribution expenses 196,681,913.14 206,026,652.66
General and administrative
expenses 408,342,264.32 379,989,979.55
Finance expenses 544,626,983.09 1,044,808,233.11
Loss on impairment of assets -3,586,791.16 3,497,972.04
Plus: Gain on change in fair value (“-”
denotes loss) 0.00 0.00
Investment income (“-”denotes loss) 266,126,747.21 441,800,307.30
Including: Investment income from
associates and joint ventures 216,369.85 -413,026.02
II. Operating profit (“-” denotes loss) 119,191,423.44 -303,289,531.15
Plus: Non-operating income 91,356,544.13 40,822,266.23
Including: Gain on disposal of non-
current assets 373,450.11 2,770,339.41
Less: Non-operating expenses 492,515.62 2,722,776.20
Including: Loss on disposal of non-current
assets 22,515.62 2,019,888.74
III. Total profit (“-” denotes total loss) 210,055,451.95 -265,190,041.12
Less: Income tax expenses -13,617,000.87 -108,385,136.00
IV. Net profit (“-” denotes net loss) 223,672,452.82 -156,804,905.12
V. Other comprehensive income after tax,
(net) 0.00 0.00
VI. Total comprehensive income 223,672,452.82 -156,804,905.12
VII. Earnings per share:
(I) Basic earnings per share — —
(II) Diluted earnings per share — —
— 25 —
Report for the Third Quarter of 2016 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
Am ounts for the Am ounts for the
Item reporting period prior period
I. Cash flows from operating activities:
Cash received from sales of goods and
rendering of services 16,060,904,509.24 15,190,399,778.65
Tax rebates received 5,646,133.71 3,089,102.57
Cash received relating to other operating
activities 651,590,955.66 1,054,621,353.56
Subtotal of cash inflows from operating
activities 16,718,141,598.61 16,248,110,234.78
Cash paid for goods and services 11,147,598,194.09 12,298,195,594.69
Cash paid to and for employees 714,282,143.95 635,401,102.08
Payments of taxes 969,117,648.05 779,860,506.20
Cash paid relating to other operating
activities 7,007,235,108.82 11,159,116,366.24
Subtotal of cash outflows from operating
activities 19,838,233,094.91 24,872,573,569.21
Net cash flows from operating activities -3,120,091,496.30 -8,624,463,334.43
II. Cash flows from investing activities:
Cash received from investments 0.00 400,000,000.00
Cash received from investment income 68,750,383.34 0.00
Net cash received from disposal of fixed
assets, intangible assets and other
long-term assets 215,006.40 175,409.96
Cash received relating to other investing
activities 304,056,200.00 46,401,366.66
Subtotal of cash inflows from investing
activities 373,021,589.74 446,576,776.62
Cash paid for purchase of fixed assets,
intangible assets and other long-term
assets 1,268,924,733.10 1,229,826,351.45
Cash paid on investments 0.00 386,000,000.00
Subtotal of cash outflows from investing
activities 1,268,924,733.10 1,615,826,351.45
Net cash flows from investing activities -895,903,143.36 -1,169,249,574.83
III. Cash flows from financing activities:
Cash received from borrowings 37,799,886,869.48 25,899,697,270.87
Cash received relating to other financing
activities 18,328,338,789.75 9,663,427,778.00
Subtotal of cash inflows from financing
activities 56,128,225,659.23 35,563,125,048.87
Cash repayments of amounts borrowed 32,481,340,263.49 22,645,377,952.17
— 26 —
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
Am ounts for the Am ounts for the
Item reporting period prior period
Cash paid for dividend and profit
distribution or interest payment 1,570,444,086.84 1,358,824,694.29
Cash paid relating to other financing
activities 17,378,425,062.47 2,111,621,643.97
Subtotal of cash outflows from financing
activities 51,430,209,412.80 26,115,824,290.43
Net cash flows from financing activities 4,698,016,246.43 9,447,300,758.44
IV. Effect of foreign exchange rate changes
on cash and cash equivalents -2,961,648.36 34,793,895.67
V. Net increase in cash and cash equivalents 679,059,958.41 -311,618,255.15
Plus: Balance of cash and cash
equivalents as at the beginning of the
period 1,888,107,493.76 976,096,861.30
VI. Balance of cash and cash equivalents as
at the end of the period 2,567,167,452.17 664,478,606.15
8. Cash flow statement of the Company from the beginning of the year to the
end of the reporting period
Unit: RMB
Am ounts for the Am ounts for the
Item reporting period prior period
I. Cash flows from operating activities:
Cash received from sales of goods and
rendering of services 5,414,479,352.87 5,210,843,830.78
Cash received relating to other operating
activities 167,105,052.62 141,891,448.03
Subtotal of cash inflows from operating
activities 5,581,584,405.49 5,352,735,278.81
Cash paid for goods and services 3,892,542,059.80 8,327,029,875.12
Cash paid to and for employees 287,707,598.25 260,064,379.66
Payments of taxes 185,838,759.30 102,183,916.09
Cash paid relating to other operating
activities 184,927,673.92 162,169,448.03
Subtotal of cash outflows from operating
activities 4,551,016,091.27 8,851,447,618.90
Net cash flows from operating activities 1,030,568,314.22 -3,498,712,340.09
II. Cash flows from investing activities:
Cash received from investments 0.00 600,000,000.00
Cash received from investment income 268,750,383.34 903,625.62
Net cash received from disposal of fixed
assets, intangible assets and other
long-term assets 93,406.40 63,697.60
— 27 —
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
Am ounts for the Am ounts for the
Item reporting period prior period
Cash received relating to other investing
activities 0.00 31,144,666.66
Subtotal of cash inflows from investing
activities 268,843,789.74 632,111,989.88
Cash paid for purchase of fixed assets,
intangible assets and other long-term
assets 62,251.00 83,729,374.57
Cash paid on investments 1,240,000,000.00 459,143,400.00
Subtotal of cash outflows from investing
activities 1,240,062,251.00 542,872,774.57
Net cash flows from investing activities -971,218,461.26 89,239,215.31
III. Cash flows from financing activities:
Cash received from borrowings 27,598,877,726.66 7,779,390,636.80
Cash received relating to other financing
activities 14,478,903,288.89 9,663,427,778.00
Subtotal of cash inflows from financing
activities 42,077,781,015.55 17,442,818,414.80
Cash repayments of amounts borrowed 23,603,939,264.28 10,884,994,455.54
Cash paid for dividend and profit
distribution or interest payment 1,041,349,301.02 1,142,470,646.57
Cash paid relating to other financing
activities 16,891,324,487.90 1,018,085,783.84
Subtotal of cash outflows from financing
activities 41,536,613,053.20 13,045,550,885.95
Net cash flows from financing activities 541,167,962.35 4,397,267,528.85
IV. Effect of foreign exchange rate changes
on cash and cash equivalents -14,150,795.86 14,555,105.56
V. Net increase in cash and cash equivalents 586,367,019.45 1,002,349,509.63
Plus: Balance of cash and cash
equivalents as at the beginning of the
period 49,438,736.95 40,590,357.33
VI. Balance of cash and cash equivalents as
at the end of the period 635,805,756.40 1,042,939,866.96
— 28 —
Report for the Third Quarter of 2016 of Shandong Chenming Paper Holdings Limited
II. Auditors’ Report
Is the third quarterly report audited
□ Yes √ No
The third quarterly report of the Company is unaudited.
Board of Directors
SHANDONG CHENMING PAPER HOLDINGS LIMITED
25 October 2016
— 29 —