Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
SHANDONG CHENMING PAPER HOLDINGS LIMITED *
2017 First Quarterly Report
April 2017
1
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
I Important Notice
The board of directors (the “Board”), the supervisory committee (the
“Supervisory Committee”), the directors (the “Director”), supervisors (the
“Supervisors”) and senior management (the “Senior Management”) of the
Company hereby warrant that the contents of this quarterly report are true,
accurate and complete, and there are no false representations, misleading
statements or material omissions, and are jointly and severally responsible for
the liabilities of the Company.
All Directors were present 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 this quarterly report.
1
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
II. General Information of the Company
I. Major financial data and change of shareholders
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
compared to the
corresponding
Corresponding period of the prior
The reporting period period of prior year year
Revenue (RMB) 6,274,273,821.63 4,951,931,256.74 26.70%
Net profit attributable to
shareholders of the
Company (RMB) 702,517,923.91 402,131,344.77 74.70%
Net profit after
extraordinary gains or
losses attributable to
shareholders of the
Company (RMB) 615,479,547.22 292,898,560.63 110.13%
Net cash flows from
operating activities (RMB) -1,799,933,755.66 -3,936,890,898.29 54.28%
Basic earnings per share
(RMB per share) 0.29 0.18 61.11%
Diluted earnings per share
(RMB per share) 0.29 0.18 61.11%
Rate of return on net assets
on weighted average basis 3.67% 2.48% 1.19%
Increase/decrease as
at the end of the
reporting period
As at the end of the As at the end of the compared to the end
reporting period prior year of the prior year
Total assets (RMB) 87,326,409,059.32 82,285,354,532.14 6.13%
Net assets attributable to
shareholders of the
Company (RMB) 22,859,726,677.28 22,218,808,367.43 2.88%
2
Report for the First Quarter of 2017 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 reporting
Item period Note
Profit or loss from disposal of non-current
assets (including write-off of provision for
assets impairment) -921,000.44
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)
accounted for in profit or loss for the current
period 87,957,895.90
Gain or loss on external entrusted loans 11,530,398.32
Non-operating income and expenses other
than the above items 9,992,594.47
Less: Effect of income tax 21,284,700.25
Effect of minority interest (after tax) 236,811.31
Total 87,038,376.69 —
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
3
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
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.
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 shareholders of
preference shares with restored voting rights and the shareholding of the top
ten shareholders
Unit: share
Total number of shareholders of 98,828, of which 77,692 were Total number of shareholders of 0
ordinary shares as at the end holders of A shares, 20,709 preference shares with restored
of the reporting period were holders of B shares and voting right as at the end of the
427 were holders of H shares reporting period (if any)
Shareholding of top 10 shareholders
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
SHOUGUANG CHENMING
State-owned legal
HOLDINGS COMPANY 15.13% 293,003,657 0 Pledged 201,562,000
person
LIMITED
HKSCC NOMINEES Overseas legal
12.97% 251,110,750 0
LIMITED person
CHENMING HOLDINGS Overseas legal
9.90% 191,712,571 0
(HONG KONG) LIMITED person
CENTRAL HUIJIN ASSET State-owned legal
2.07% 40,137,900 0
MANAGEMENT LTD. person
ANBANG ASSET
MANAGEMENT - CHINA
MERCHANTS BANK -
ANBANG ASSET
MANAGEMENT - CHINA
MERCHANTS BANK -
Others 1.52% 29,403,560 0
ANBANG ASSET
MANAGEMENT -
WIN-WIN NO. 3
COLLECTIVE ASSET
MANAGEMENT
PRODUCT
BBH A/C VANGUARD
Overseas legal
EMERGING MARKETS 0.44% 8,608,238 0
person
STOCK INDEX FUND
NATIONAL SOCIAL
Others 0.42% 8,136,000 0
SECURITY FUND 406
Domestic
HUATAI SECURITIES CO.,
non-state-owned 0.40% 7,836,321 0
LTD.
legal person
Domestic nature
JIN Xing 0.40% 7,808,300 0
person
NATIONAL SOCIAL
Others 0.36% 6,935,600 0
SECURITY FUND 403
4
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
Shareholding of the top ten shareholders of non-restricted shares
Number of
Name of shareholders non-restricted Class of shares
shares held Class of shares Number
SHOUGUANG CHENMING HOLDINGS COMPANY RMB ordinary
293,003,657 293,003,657
LIMITED shares
Overseas listed
HKSCC NOMINEES LIMITED 251,110,750 251,110,750
foreign shares
Domestic listed
91,712,571
foreign shares
CHENMING HOLDINGS (HONG KONG) LIMITED 191,712,571 Overseas listed 100,000,000
foreign shares
RMB ordinary
CENTRAL HUIJIN ASSET MANAGEMENT LTD. 40,137,900 40,137,900
shares
ANBANG ASSET MANAGEMENT - CHINA MERCHANTS
BANK - ANBANG ASSET MANAGEMENT - CHINA
RMB ordinary
MERCHANTS BANK - ANBANG ASSET 29,403,560 29,403,560
shares
MANAGEMENT - WIN-WIN NO. 3 COLLECTIVE
ASSET MANAGEMENT PRODUCT
BBH A/C VANGUARD EMERGING MARKETS STOCK Domestic listed
8,608,238 8,608,238
INDEX FUND foreign shares
RMB ordinary
NATIONAL SOCIAL SECURITY FUND 406 8,136,000 8,136,000
shares
RMB ordinary
HUATAI SECURITIES CO., LTD. 7,836,321 7,836,321
shares
Domestic listed
JIN Xing 7,808,300 7,808,300
foreign shares
RMB ordinary
NATIONAL SOCIAL SECURITY FUND 403 6,935,600 6,935,600
shares
Connected relationship or A shareholder, Chenming Holdings (Hong Kong) Limited, which is an overseas legal
connected party person, is a wholly-owned subsidiary of a shareholder, Shouguang Chenming Holdings
relationship among the Company Limited, which is a state-owned legal person. Hence they are persons acting in
above shareholders 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.
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.
5
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
2. Total number of shareholders of preference shares and shareholding of the top
ten shareholders of preference shares
√ Applicable □ No applicable
Unit: share
Total number of shareholders of
preference shares as at the
end of the reporting period 7
Shareholding 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
BEIJING YIBEN
ZHONGXING Domestic
INVESTMENT non-state-owned 27.78% 12,500,000 0 Pledged 12,500,000
MANAGEMENT CO., legal person
LTD.
BANK OF
COMMUNICATIONS
INTERNATIONAL TRUST
Others 22.44% 10,100,000 0
CO., LTD. - HUILI
NO.167 SINGLE
CAPITAL TRUST
BANK OF
COMMUNICATIONS
INTERNATIONAL TRUST
Others 14.22% 6,400,000 0
CO., LTD. - HUILI
NO.136 SINGLE
CAPITAL TRUST
QILU BANK CO., LTD. -
QILU BANK QUANXIN
WEALTH Others 13.33% 6,000,000 0
MANAGEMENT
PRODUCT SERIES
HENGFENG BANK CO., Domestic
LTD. non-state-owned 11.11% 5,000,000 0
legal person
SHANGHAI STATE-OWNED
State-owned legal
ASSETS OPERATION 6.67% 3,000,000 0
person
CO., LTD.
NCF - MINSHENG BANK -
CHINA FORTUNE
INTERNATIONAL TRUST
— CHINA FORTUNE Others 4.44% 2,000,000 0
TRUSTMIN XIN NO.
11 SINGLE CAPITAL
TRUST
Connected relationship or The aforesaid holders of preference shares, “BANK OF COMMUNICATIONS
connected party INTERNATIONAL TRUST CO., LTD. - HUILI NO.167 SINGLE CAPITAL TRUST” and
relationship among the “BANK OF COMMUNICATIONS INTERNATIONAL TRUST CO., LTD. -
above shareholders HUILI NO.136 SINGLE CAPITAL TRUST”, are persons acting in concert. Save for the
above, it is not aware whether there is any connected relationship between the above holders
of preference shares nor are they persons acting in concert.
6
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
III Material matters
I. Details and reasons for changes of major financial data
and financial indicators during the reporting period
√ Applicable □ No applicable
(I) Analysis of the assets and liabilities of the Company
Unit: RMB
Reason
for
Item 31 March 2017 31 December 2016 Change change
Bills
receivable 2,039,793,921.81 1,590,460,875.23 28.25% (1)
Other
current
assets 8,782,506,684.11 6,616,744,831.28 32.73% (2)
Construction
in progress 4,995,338,316.31 4,115,194,870.23 21.39% (3)
Bills payable 637,415,703.08 515,301,703.08 23.70% (4)
Interest
payable 99,708,753.71 30,731,253.71 224.45% (5)
Other
current
liabilities 8,093,126,466.00 6,602,863,069.45 22.57% (6)
Explanation of the reasons leading to the major changes:
(1) Bills receivable increased by 28.25% as compared to the beginning of the
year mainly due to increases in bills pledged by the Company for the
issuance of letters of guarantee and bills.
(2) Other current assets increased by 32.73% as compared to the beginning of
the year mainly due to an increase in receivables under financial lease
due within one year.
(3) Construction in progress increased by 21.39% as compared to the
beginning of the year mainly due to the increased investment in the
forestry pulp integration project of Huanggang Chenming and the
chemical pulp project of Shouguang Meilun.
(4) Bills payable increased by 23.70% as compared to the beginning of the
year mainly due to an increase in payments by bills.
7
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
(5) Interest payable increased by 224.45% as compared to the beginning of the
year mainly due to an increase in the outstanding interests payable of
corporate bonds and medium-term notes.
(6) Other current liabilities increased by 22.57% as compared to the
beginning of the year mainly due to the new issue of super & short-term
commercial paper.
(II) Reasons for significant year on year changes of income statement
items during the reporting period
Unit: RMB
Reason
for
Item January - March 2017 January - March 2016 Change change
Sales
revenue 6,274,273,821.63 4,951,931,256.74 26.70% (1)
Taxes and
surcharges 54,684,663.59 35,522,816.60 53.94% (2)
Selling and
distribution
expenses 304,176,522.86 254,937,855.85 19.31% (3)
General and
administrati ve
expenses 413,588,829.04 327,367,757.71 26.34% (4)
Loss on
impairment
of assets 23,825,034.05 -3,695,206.04 744.76% (5)
Explanation of the reasons leading to the major changes:
(1) Sales revenue increased by 26.70% as compared to the corresponding
period of last year mainly due to an increase in the sales of machine-made
paper with higher selling prices.
(2) Taxes and surcharges increased by 53.94% as compared to the
corresponding period of last year mainly due to the reclassification of
taxes in general and administrative expenses.
(3) Selling and distribution expenses increased by 19.31% as compared to the
corresponding period of last year mainly due to an increase in the sales
of machine-made paper with higher sales revenue.
8
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
(4) General and administrative expenses increased by 26.34% as compared to
the corresponding period of last year mainly due to a year-on-year
increase in R&D expenses.
(5) Loss on impairment of assets increased by 744.76% as compared to the
corresponding period of last year mainly due to a year-on-year increase in
the provision for loss on bad debts made by the Sales Company.
(III) Analysis of cash flows during the reporting period
Unit: RMB
Reason
for
Item January - March 2017 January - March 2016 Change change
Net cash
flows from
operating
activities -1,799,933,755.66 -3,936,890,898.29 54.28% (1)
Net cash
flows from
investment
activities 147,890,412.84 -447,467,552.31 133.05% (2)
Net cash
flows from
financing
activities 2,013,126,167.07 4,315,067,987.52 -53.35% (3)
Explanation of the reasons leading to the major changes:
(1) Net cash flows from operating activities increased by 54.28% as
compared to the corresponding period of last year mainly due to an
increase in sales revenue resulting from the recovery of the paper market
and a decrease in net investment under financial lease.
(2) Net cash flows from investing activities increased by 133.05% as
compared to the corresponding period of last year mainly due to the
recovery of external entrusted loans amounting of RMB500 million.
(3) Net cash flows from financial activities decreased by 53.35% as
compared to the corresponding period of last year mainly due to the
repayment of short-term commercial paper due and others by the
Company.
9
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
II. Progress in respect to material matters and analysis of the related effects and
solutions
√ Applicable □ No applicable
1. Statutory demand
The Company published Indicative Announcements on CNINFO on 26
October 2016, 9 November 2016 and 22 November 2016
respectively
(announcement number: 2016-140, 2016-144 and 2016-151) in relation to
Statutory Demand and the injunction order against applicant to petition for
winding-up against the Company applied to the court by the Company. The
Court of First Instance in the High Court of Hong Kong Special Administrative
Region completed the hearing held from 21 February 2017 to 23 February 2017
and would set a date to hand down its judgment. The Company will make
timely disclosure of the relevant information pursuant to the progress of the
above matter.
2. Report on Details of Change in Shareholding
Based on the knowledge in the current capital market situation and the
confidence in the future stable development of the Company, Chenming
Holdings (Hong Kong) Limited, the person acting in concert of Shouguang
Chenming Holdings Company Limited (the controlling shareholder of the
Company), acquired 24,467,500 H shares of the Company (accounting for
approximately 6.95% of the issued H shares of the Company) and
69,191,648 B shares (accounting for approximately 14.69% of the issued B
shares of the Company) through the trading system during the period from
13 January 2016 to 9 March 2017. The H shares and B shares held by Chenming
Holdings (Hong Kong) Limited increased by 93,659,148 shares, accounting
for approximately 4.84% of the total issued shares of the Company. Upon the
completion of the change in shareholding, Chenming Holdings and its persons
acting in concert held 484,106,228 shares of the Company, accounting for
25.00% of the total share capital of the Company.
10
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
Material matter Date of disclosure Search index of the ad-hoc report disclosure website
Statutory demand 25 February 2017 http://www.cninfo.com.cn, announcement number: 2017-015
Report on details of
15 March 2017 http://www.cninfo.com.cn, announcement number:2017-024
change in shareholding
III. Undertakings made by parties involved in undertakings including the
Company’s beneficial controllers shareholders, related parties, bidders and
the Company subsisting during the reporting period
√ Applicable □ No applicable
Party Particulars
involved in Type of Undertaking on the
Undertaking 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 Non-competitive (1) Shouguang Chenming Holdings Co., Ltd. (“Shouguang 22 May 2008 During the Implementing
initial public Chenming undertaking Chenming Holdings”) shall not engage, whether solely, jointly, period when as normal
offering or Holdings or by representing itself or any other persons or companies, Chenming
refinancing Co., Ltd. and shall not procure its associates (as defined in The Listing Holdings
Rules of Hong Kong Stock Exchange) to engage, in any was the
business which competes with the business of the Company major
and its subsidiaries (“Chenming Group” or “we”) directly or shareholder
indirectly, in any country and region which our business exists of the
(or any part of the world if in any form of electronics Company
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 (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.
11
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
Party Particulars
involved in Type of Undertaking on the
Undertaking undertaking undertaking Details of undertaking date Term performance
Shouguang Defective (1) According to the plan on defective properties of the 16 January During the Implementing
Chenming properties Company, Shouguang Chenming Holdings Co., Ltd. 2008 period when as normal
Holdings (“Shouguang Chenming Holdings”) has guaranteed and Chenming
Co., Ltd. undertaken that: according to the application of the Company, Holdings
for defective property(ies) owned by the Company and its was the
holding subsidiary company which situated in the major
administrative area of Shouguang city, Shouguang Chenming shareholder
Holdings will purchase it (them) and have it(them) being of the
transferred to itself pursuant to the law in accordance with the Company
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.
Shandong Specific remedial Taking into consideration the dilution of the current return of 25 March 9999-12-31 Implementing
Chenming measures in the shareholders of ordinary shares due to the issue of preference 2016 as normal
Paper non-public issue shares, in order to maintain compliance with the Opinions of
Holdings of preference the General Office of the State Council on Further
Limited shares 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.
Equity incentive
undertaking
Other undertakings
made to minority
shareholders of the
Company
Does the undertaking Yes
performed timely?
IV. Estimate of the operating results for January - June 2017
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 √ No applicable
12
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
V. Security investments
□ Applicable √ No applicable
The Company did not have any security investments during the reporting period.
VI. Derivatives investments
□ Applicable √ No 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 √ No applicable
The Company did not have any reception of research investigations,
communications and interviews during the reporting period.
VIII. External guarantees against the rules and regulations
□ Applicable √ No 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 √ No 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.
13
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
IV Financial Statements
I. Financial Statements
1. Consolidated Balance Sheet
Prepared by: Shandong Chenming
Paper Holdings Limited 31 March 2017 Unit: RMB
Item Closing balance Opening
CURRENT ASSETS: balance
Monetary funds 11,237,874,153.33 10,109,930,319.49
Bills receivable 2,039,793,921.81 1,590,460,875.23
Accounts receivable 3,793,252,083.80 3,974,065,104.15
Prepayments 1,714,499,302.44 1,511,362,674.64
Other receivables 1,414,122,977.66 1,614,214,645.48
Inventories 5,414,248,491.58 4,862,668,746.90
Non-current assets due within one year 5,217,101,389.99 5,487,376,588.22
Other current assets 8,782,506,684.11 6,616,744,831.28
Total current assets 39,613,399,004.72 35,766,823,785.39
NON-CURRENT ASSETS:
Available-for-sale financial assets 1,945,000,000.00 1,945,000,000.00
Long-term receivables 9,517,153,410.79 8,844,262,173.65
Long-term equity investments 61,649,491.84 67,251,992.88
Investment properties 12,520,419.79 14,258,675.83
Fixed assets 28,508,557,953.20 28,811,555,365.39
Construction in progress 4,995,338,316.31 4,115,194,870.23
Construction materials 18,148,301.22 18,847,584.79
Intangible assets 1,529,626,223.84 1,540,959,330.74
Goodwill 20,283,787.17 20,283,787.17
Long-term prepaid expenses 155,956,500.81 157,772,100.69
Deferred income tax assets 510,319,913.71 497,457,826.70
Other non-current assets 438,455,735.92 485,687,038.68
Total non-current assets 47,713,010,054.60 46,518,530,746.75
Total assets 87,326,409,059.32 82,285,354,532.14
CURRENT LIABILITIES:
Short-term borrowings 28,137,792,231.04 27,875,506,988.53
Bills payable 637,415,703.08 515,301,703.08
Accounts payable 3,822,069,466.08 3,724,266,382.06
Advance receipts 292,171,502.54 377,135,566.33
Staff remuneration payables 190,947,525.66 159,968,262.82
14
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
Item Closing balance Opening
Taxes payable 324,373,998.85 balance
Interest payable 99,708,753.71 30,731,253.71
Other payables 992,718,654.91 948,919,195.80
Non-current liabilities due within one
year 7,174,385,186.92 6,237,021,557.17
Other current liabilities 8,093,126,466.00 6,602,863,069.45
Total current liabilities 49,764,709,488.79 46,708,641,438.73
NON-CURRENT LIABILITIES:
Long-term borrowings 7,086,447,664.56 6,935,598,781.23
Bonds payable 1,000,000,000.00
Long-term payables 4,152,550,721.60 3,951,368,854.00
Special payables 681,039,716.66 681,039,716.66
Deferred income 1,438,870,837.27 1,443,846,526.33
Total non-current liabilities 14,358,908,940.09 13,011,853,878.22
TOTAL LIABILITIES 64,123,618,428.88 59,720,495,316.95
OWNERS’ EQUITY:
Share capital 1,936,405,467.00 1,936,405,467.00
Other equity instruments 7,060,300,000.00 7,060,300,000.00
Including: Preference shares 4,477,500,000.00 4,477,500,000.00
Perpetual bonds 2,582,800,000.00 2,582,800,000.00
Capital reserves 6,149,257,784.90 6,149,257,784.90
Other comprehensive income -768,745,385.95 -805,245,771.89
Surplus reserves 1,132,116,106.40 1,132,116,106.40
Retained profit 7,350,392,704.93 6,745,974,781.02
Total equity attributable to equity holders
of the company 22,859,726,677.28 22,218,808,367.43
Minority interest 343,063,953.16 346,050,847.76
Total owners’ equity 23,202,790,630.44 22,564,859,215.19
TOTAL LIABILITIES AND OWNERS’
EQUITY 87,326,409,059.32 82,285,354,532.14
Legal Representative: Financial controller: Head of the financial department:
Chen Hongguo Hu Jinbao Dong Lianming
15
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
2. Balance sheet of the Company
Unit: RMB
Item Closing balance Opening balance
CURRENT ASSETS:
Monetary funds 9,080,325,324.29 7,934,163,265.76
Bills receivable 96,971,187.04 112,943,069.85
Accounts receivable 106,036,984.51 84,089,911.81
Prepayments 1,733,071,521.96 1,003,699,885.05
Other receivables 25,977,673,863.98 22,848,685,985.74
Inventories 795,030,855.17 663,006,714.42
Non-current assets due within one year 400,000,000.00 900,000,000.00
Total current assets 38,189,109,736.95 33,546,588,832.63
NON-CURRENT ASSETS:
Available-for-sale financial assets 1,909,000,000.00 1,909,000,000.00
Long-term equity investments 16,361,092,975.36 14,558,097,658.49
Investment properties 12,520,419.79 14,258,675.83
Fixed assets 3,304,268,288.38 3,343,366,320.45
Construction in progress 53,731,588.22 52,757,799.47
Construction materials 71,973.35 71,973.35
Intangible assets 479,470,727.10 300,218,996.05
Deferred income tax assets 153,476,177.41 164,139,190.27
Other non-current assets 67,400,000.00 67,400,000.00
Total non-current assets 22,341,032,149.61 20,409,310,613.91
Total assets 60,530,141,886.56 53,955,899,446.54
CURRENT LIABILITIES:
Short-term borrowings 8,360,607,909.03 8,203,392,554.58
Bills payable 3,517,000,000.00 3,057,000,000.00
Accounts payable 752,651,866.60 654,411,787.56
Advance receipts 2,346,430,617.24 537,139,483.60
Staff remuneration payables 68,146,707.90 58,599,576.37
Taxes payable 70,106,276.46 43,087,056.70
Interest payable 97,908,753.71 30,731,253.71
Other payables 5,801,019,616.43 3,689,371,275.46
Liabilities classified as held for sale
Non-current liabilities due within
one year 5,651,774,522.95 5,648,861,310.04
Other current liabilities 8,093,126,466.00 6,602,863,069.45
Total current liabilities 34,758,772,736.32 28,525,457,367.47
16
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
Item Closing balance Opening balance
NON-CURRENT LIABILITIES:
Long-term borrowings 1,636,710,158.87 1,521,611,382.77
Long-term payables 3,206,360,618.09 3,005,178,750.49
Deferred income 54,909,070.55 56,572,797.75
Total non-current liabilities 4,897,979,847.51 4,583,362,931.01
TOTAL LIABILITIES 39,656,752,583.83 33,108,820,298.48
OWNERS’ EQUITY:
Share capital 1,936,405,467.00 1,936,405,467.00
Other equity instruments 7,060,300,000.00 7,060,300,000.00
Including: Preference shares 4,477,500,000.00 4,477,500,000.00
Perpetual bonds 2,582,800,000.00 2,582,800,000.00
Capital reserves 5,938,960,168.19 5,938,960,168.19
Surplus reserves 1,119,926,524.49 1,119,926,524.49
Retained profit 4,817,797,143.05 4,791,486,988.38
Total owners’ equity 20,873,389,302.73 20,847,079,148.06
TOTAL LIABILITIES AND OWNERS’
EQUITY 60,530,141,886.56 53,955,899,446.54
17
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
3. Consolidated income statement
Unit: RMB
Amounts for the Amounts for
Item period the prior
I. Total revenue 6,274,273,821.63 4,951,931,256.
Including: Revenue 6,274,273,821.63 74
II. Total operating costs 5,540,639,425.53 4,534,400,365.6
9
Including: Operating costs 4,271,432,799.39 3,427,558,022.0
Taxes and surcharges 54,684,663.59 8 35,522,816.6
Sales and distribution 0
expenses 304,176,522.86 254,937,855.8
General and administrative 5
expenses 413,588,829.04 327,367,757.7
Finance expenses 472,931,576.60 1
Loss on impairment of 9
assets 23,825,034.05 -3,695,206.0
Plus: Gain on change in fair value (“-” 4
denotes loss)
Investment income
(“-” denotes loss) 34,080,946.51 14,515,005.1
Including: Investment income 6
from associates and
joint ventures -5,602,501.04 -8,234,994.8
Foreign exchange gains (“-”) 4
denotes loss)
III. Operating profit (“-” denotes loss) 767,715,342.61 432,045,896.2
Plus: Non-operating income 98,617,512.36 1
Including: Gain on disposal of 2
non-current assets 188,603.36 631,136.6
Less: Non-operating expenses 1,538,769.15 2
Including: Loss on disposal of 3
non-current assets 1,109,603.80 207,203.8
IV. Total profit (“-” denotes total loss) 864,794,085.82 554,093,251.0
Less: Income tax expenses 165,263,056.51 163,276,472.8
V. Net profit (“-” denotes net loss) 699,531,029.31 390,816,778.2
Net profit attributable to shareholders 0
of the Company 702,517,923.91 402,131,344.7
Profit or loss of minority interest -2,986,894.60 7-11,314,566.5
VI. Net other comprehensive income after 7
tax 36,500,385.95 29,818,903.0
1
18
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item period prior period
Net other comprehensive income after
tax attributable to shareholders of
the Company 36,500,385.95 29,818,903.01
(I) Other comprehensive income that
will not be reclassified to profit or
loss in subsequent periods
(II) Other comprehensive income that
will be reclassified to profit or
loss in subsequent periods 36,500,385.95 29,818,903.01
Exchange differences on
translation of foreign
operations 36,500,385.95 29,818,903.01
Net other comprehensive income
after tax attributable to
minority interest
VII. Total comprehensive income 736,031,415.26 420,635,681.21
Total other comprehensive income
attributable to shareholders of the
Company 739,018,309.86 431,950,247.78
Total comprehensive income
attributable to minority interest -2,986,894.60 -11,314,566.57
VIII.Earnings per share:
(I) Basic earnings per share 0.29 0.18
(II) Diluted earnings per share 0.29 0.18
Legal Representative: Financial controller: Head of the financial department:
Chen Hongguo Hu Jinbao Dong Lianming
19
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
4. Income statement of the Company
Unit: RMB
Amounts for the Amounts for the
Item period prior period
I. Revenue 1,825,135,337.89 1,624,983,408.12
Less: Operating costs 1,346,106,037.13 1,334,992,670.50
Taxes and surcharges 22,146,157.86 3,499,786.77
Sales and distribution
expenses 61,708,995.39 57,086,536.90
General and administrative
expenses 157,074,579.69 125,978,458.42
Finance expenses 133,730,116.49 273,560,487.30
Loss on impairment of assets 10,581,405.57 3,452,110.25
Plus: Gain on change in fair value
(“-” denotes loss)
Investment income
(“-” denotes loss) 39,583,206.16 22,602,080.41
Including: Investment income
from associates and
joint ventures -97,092.16 -147,919.59
II. Operating profit (“-” denotes loss) 133,371,251.92 -150,984,561.61
Plus: Non-operating income 1,715,004.61 10,230,665.29
Including: Gain on disposal of
non-current assets 32,382.30
Less: Non-operating expenses 13,089.00 275.97
Including: Loss on disposal of
non-current assets 13,089.00 275.97
III. Total profit (“-” denotes total loss) 135,073,167.53 -140,754,172.29
Less: Income tax expenses 10,663,012.86 -25,523,334.64
IV. Net profit (“-” denotes net loss) 124,410,154.67 -115,230,837.65
V. Net other comprehensive income
after tax
(I) Other comprehensive income
that will not be reclassified to
profit or loss in subsequent
periods
(II) Other comprehensive income
that will be reclassified to profit
or loss in subsequent periods
VI. Total comprehensive income 124,410,154.67 -115,230,837.65
20
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
5. Consolidated cash flow statement
Unit: RMB
Amounts for the Amounts for the
Item period prior period
I. Cash flows from operating activities:
Cash received from sales of goods
and rendering of services 6,071,765,519.77 3,861,397,415.68
Tax rebates received 49,253.28 1,678,391.44
Cash received relating to other
operating activities 344,275,340.11 247,252,260.95
Subtotal of cash inflows from operating
activities 6,416,090,113.16 4,110,328,068.07
Cash paid for goods and services 4,284,027,734.66 2,329,851,383.64
Cash paid to and for employees 254,685,584.47 255,883,771.79
Payments of taxes and surcharges 349,632,991.79 259,042,511.99
Cash paid relating to other operating
activities 3,327,677,557.90 5,202,441,298.94
Subtotal of cash outflows from operating
activities 8,216,023,868.82 8,047,218,966.36
Net cash flows from operating activities -1,799,933,755.66 -3,936,890,898.29
II. Cash flows from investment
activities:
Cash received from investment
income 13,750,000.00 22,750,000.00
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets 123,100.00
Cash received relating to other
investment activities 518,764,372.00 104,056,200.00
Subtotal of cash inflows from investment
activities 532,514,372.00 126,929,300.00
Cash paid for purchase of fixed
assets, intangible assets and other
long-term assets 384,623,959.16 574,396,852.31
Subtotal of cash outflows from
investment activities 384,623,959.16 574,396,852.31
Net cash flows from investment activities 147,890,412.84 -447,467,552.31
21
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item period prior period
III. Cash flows from financing activities:
Cash received from borrowings 13,559,751,515.69 11,127,284,771.56
Cash received from issurance of
bonds 997,000,000.00
Cash received relating to other
financing activities 5,011,942,828.52 5,937,250,000.00
Subtotal of cash inflows from financing
activities 19,568,694,344.21 17,064,534,771.56
Cash repayments on borrowing 12,943,894,864.13 8,407,337,300.81
Cash paid for dividend and profit
distribution or interest payment 468,301,155.59 403,109,470.56
Cash paid relating to other financing
activities 4,143,372,157.42 3,939,020,012.67
Subtotal of cash outflows from financing
activities 17,555,568,177.14 12,749,466,784.04
Net cash flows from financing activities 2,013,126,167.07 4,315,067,987.52
IV. Effect of foreign exchange rate
changes on cash and cash
equivalents -12,654,907.93 -13,417,584.13
V. Net increase in cash and cash
equivalents 348,427,916.32 -82,708,047.21
Plus: Balance of cash and cash
equivalents as at the beginning of
the period 1,979,861,045.62 1,888,107,493.76
VI. Balance of cash and cash equivalents
as at the end of the period 2,328,288,961.94 1,805,399,446.55
22
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
6. Cash flow statement of the Company
Unit: RMB
Amounts for the Amounts for the
Item period prior period
I. Cash flows from operating activities:
Cash received from sales of goods
and rendering of services 2,043,512,964.97 1,481,863,637.30
Cash received relating to other
operating activities 2,307,363,848.50 34,061,752.46
Subtotal of cash inflows from operating
activities 4,350,876,813.47 1,515,925,389.76
Cash paid for goods and services 1,596,601,181.89 1,360,752,845.89
Cash paid to and for employees 91,590,954.26 105,169,505.84
Payments of taxes and surcharges 93,278,359.86 47,215,367.24
Cash paid relating to other operating
activities 14,107,297.75 2,288,082,633.71
Subtotal of cash outflows from operating
activities 1,795,577,793.76 3,801,220,352.68
Net cash flows from operating activities 2,555,299,019.71 -2,285,294,962.92
II. Cash flows from investment
activities:
Cash received from investment
income 13,750,000.00 22,750,000.00
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets 3,100.00
Cash received relating to other
investment activities 500,000,000.00
Subtotal of cash inflows from investment
activities 513,750,000.00 22,753,100.00
Cash paid for purchase of fixed
assets, intangible assets and other
long-term assets 246,066.75
Cash paid on investments 2,000,000,000.00
Subtotal of cash outflows from
investment activities 2,000,246,066.75
Net cash flows from investment activities -1,486,496,066.75 22,753,100.00
III. Cash flows from financing activities:
Cash received from borrowings 2,805,500,000.00 3,992,000,000.00
Cash received relating to other
financing activities 4,495,241,096.00 5,737,250,000.00
Subtotal of cash inflows from financing
activities 7,300,741,096.00 9,729,250,000.00
23
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item period prior period
Cash repayments on borrowing 3,585,574,810.02 3,364,731,090.73
Cash paid for dividend and profit
distribution or interest payment 374,131,591.29 83,696,736.94
Cash paid relating to other financing
activities 4,660,350,945.07 2,922,349,824.95
Subtotal of cash outflows from financing
activities 8,620,057,346.38 6,370,777,652.62
Net cash flows from financing activities -1,319,316,250.38 3,358,472,347.38
IV. Effect of foreign exchange rate
changes on cash and cash 42,600.81 -11,576,258.45
equivalents
V. Net increase in cash and cash
equivalents -250,470,696.61 1,084,354,226.01
Plus: Balance of cash and cash
equivalents as at the 582,578,426.62 49,438,736.95
beginning of the period
VI. Balance of cash and cash equivalents
as at the end of the period 332,107,730.01 1,133,792,962.96
II. Auditors’ Report
Has the first quarterly report already been audited yet?
□ Yes √ No
The first quarterly report of the Company is unaudited.
SHANDONG CHENMING PAPER HOLDINGS LIMITED
24
Report for the First Quarter of 2017 of Shandong Chenming Paper Holdings Limited
27 April 2017
25
