山 東 晨 鳴 紙 業 集 團 股 份 有 限 公 司
SHANDONG CHENMING PAPER HOLDINGS LIMITED*
(A joint stock company incorporated in the People’s Republic of China with limited liability)
First Quarterly Report 2010
§1 IMPORTANT NOTICE
1.1 The board of directors (the “Board”), the supervisory committee (the “Supervisory Committee”), directors (the “Directors”), supervisors (the “Supervisors”) and the senior management (the “Senior Management”) of the Company warrant that this report does not contain any false information, misleading statements or material omissions, and accept joint and several responsibility for the truthfulness, accuracy and completeness of the contents of this report. This report has been prepared in both Chinese and English. For any discrepancies, the Chinese version shall prevail.
1.2 None of the Directors, Supervisors and Senior Management is unable to warrant the truthfulness, accuracy and completeness of the contents of this report or hold any dissenting views.
1.3 This quarterly report has been considered and approved by the second meeting of the sixth session of the Board of the Company. All Directors attended this meeting.
1.4 The first quarterly financial report of the Company prepared in accordance with Accounting Standards for Business Enterprises issued by the Ministry of Finance of the People’s Republic of China (the “PRC”) by the Company and its subsidiaries (collectively referred to as the “Group”) are unaudited.
1.5 Chen Hongguo, the person in charge of the Company, Wang Chunfang, the financial controller of the Company, and Li Dong, head of accounting department (the person in charge of accounting) hereby declare their assurance for the truthfulness and completeness of the financial report contained in the quarterly report.
1§2 BASIC COMPANY INFORMATION
2.1 Major accounting data and financial indicators prepared in accordance with Accounting Standards for Business Enterprises
Unit: RMB
At the end of the current reporting period
At the end of last year
Increase/decrease (%)
Total Assets (RMB)
29,647,238,365.47
28,213,084,875.02
5.08%
Equity attributable to equity holders of the Company
13,230,000,797.84
12,991,904,321.68
1.83%
Share capital (shares)
2,062,045,941.00
2,062,045,941.00
0
Net assets per share attributable to equity holders of the Company (RMB per share)
6.416
6.3
1.84%
The current reporting period
The corresponding period of last year
Increase/decrease (%)
Total operating revenue (RMB)
3,917,441,890.00
2,874,448,414.82
36.28%
Net profit attributable to equity holders of the Company (RMB)
238,099,243.24
7,846,215.38
2934.57%
2At the end of
the current
reporting period
At the end of
last year
Increase/decrease
(%)
Net cash flow generated from operating activities (RMB)
656,022,760.24
-149,042,774.41
540.16%
Net cash flow per share generated from operating activities (RMB per share)
0.32
-0.07
557.14%
Basic earnings per share (RMB per share)
0.12
0.0038
3057.89%
Diluted earnings per share (RMB per share)
N/A
N/A
N/A
Return on net assets on weighted average basis #%
1.82%
0.06%
Increased by 1.76 percentage points
Return on net assets on weighted average basis after extraordinary gains or losses #%
1.57%
-0.02%
Increased by 1.59 percentage points
Unit: RMB
Extraordinary gains or losses items
From beginning of the year to the end of the reporting period
Gains or losses from disposal of non-current assets
281,749.99
Government grants received
40,101,348.47
Net gains or losses attributable to debt restructuring
-272,462.50
Non-operating net gain or loss other than the above
936,010.36
Effect of extraordinary gains or losses on income tax
-5,694,406.82
Effect of minority interests
-3,076,083.31
Total
32,276,156.19
32.2 Total number of shareholders and the top ten shareholders of non-restricted shares at the end of the reporting period
Unit: shares
Total number of shareholders at the end of the reporting period
Total number of shareholders was 153,084, including 120,907 equity holders of A shares, 31,495 equity holders of B shares and 682 equity holders of H shares.
Shareholdings of the top ten shareholders of non-restricted outstanding shares
Name of shareholder (full name)
Number of non-restricted outstanding shares held at the end of the period
Class of shares
HKSCC Nominees Limited
390,006,000
H share
China Construction Bank — 鵬華價值優勢股票型證券投資基金
38,031,345
A share
NIHK-CUSTOMERS’ SEGREGATEDD ACCOUNT
30,421,008
B share
PLATINUM ASIA FUND
28,760,276
B share
KEYWISE GREATER CHINA OPPORTUNITIES MASTER FUND
19,557,609
B share
Bank of China — 華夏行業精選股票型證券投資基金（LOF）
19,514,046
A share
BILL & MELINDA GATES FOUNDATION TRUST
19,495,444
A share
Industrial and Commercial Bank of China — 諾安股票證券投資基金
16,259,170
A share
Bank of China — 易方達深證100交易型開放式證券投資基金
15,321,040
A share
BBH BOS S/A FIDELITY FD — CHINA FOCUS FD
15,189,926
B share
4§3 SIGNIFICANT EVENTS
3.1 Details of and reasons for significant changes in major accounting statement items and financial indicators of the Company
.. Applicable Not Applicable
Unit: RMB
Balance sheet items
Items
31 March 2010
31 December 2009
Increase/decrease
Other current assets
135,701,063.89
90,756,205.60
49.52%
Bills payable
351,214,277.59
544,532,508.19
-35.50%
Interests payable
22,023,249.99
5,050,000.00
336.10%
Short-term debentures payable
1,503,172,083.33
0
100%
Other non-current liabilities
2,290,341,489.83
1,189,484,415.60
92.55%
Income statement items
Items
31 March 2010
31 March 2009
Increase/decrease
Operating revenue
3,917,441,890.00
2,874,448,414.82
36.28%
Selling expenses
206,922,027.74
145,167,431.90
42.54%
Loss on impairment of assets
16,074,481.93
-133,662,338.10
112.03%
Investment income
-1,672,580.37
-3,932,216.58
57.46%
Operating profit
280,266,177.20
-5,176,752.36
5513.94%
Non-operating income
45,633,132.91
19,421,985.71
134.96%
Total profit
323,087,823.52
10,541,936.70
2964.79%
Income tax
59,383,482.51
5,153,688.42
1052.25%
Net profit
263,704,341.01
5,388,248.28
4794.06%
Of which: Net profit attributable to equity holders of the Company
238,099,243.24
7,846,215.38
2934.57%
Minority interests
25,605,097.77
-2,457,967.10
1141.72%
5Cash flow statement items
Items
The current reporting period
The corresponding period of last year
Increase(+)/ decrease(-)
Net cash flows generated from operating activities
656,022,760.24
-149,042,774.41
540.16%
Net cash flows generated from investment activities
-519,414,420.50
-174,294,857.25
-198.01%
Net cash flows generated from financing activities
665,825,205.59
1,418,958,100.96
-53.08%
Changes were mainly due to:
1. Other current assets increased by 49.52% mainly due to an increase in non-credited VAT and income tax payment.
2. Bills payable decreased by 35.5% mainly due to the expiry of the payment of the bills payable as at the end of the previous period.
3. Interests payable increased by 336.1% mainly due to appropriation of the interests of the medium term bills issued by the Company.
4. Short-term debentures payable increased mainly due to the issuance of short-term debentures of RMB1.5 billion during the period.
5. Other non-current liabilities increased by 92.55% mainly due to the new issuance of medium-term notes of RMB1.1 billion by the Company during the period.
6. Operating revenue increased by 36.28% over the corresponding period of last year mainly due to the greater sales volume during the period as compared to the corresponding period of last year as a result of better economic conditions and the great increase in the selling price.
7. Selling expenses increased by 42.54% over the corresponding period of last year mainly due to higher transportation costs resulting from an increase in sales and an oil price rise.
8. Loss on impairment of assets increased by 112.03% over the corresponding period of last year mainly due to reversal of the allowance for inventories in 2008 during the corresponding period of last year.
69. Investment income increased by 57.46% over the corresponding period of last year mainly due to a decrease in the losses of associates.
10. Operating profit, total profit, income tax, net profit, net profit attributable to equity holders of the Company and minority interests increased by 5513.94%, 2964.79%, 1052.25%, 4794.06%, 2934.57% and 1141.72% respectively over the corresponding period of last year mainly due to the significant increase in the sales volume and the selling price during the period as a result of the factors such as better economic conditions, and the significant change of the above items was also caused by the greater gross profit margin of the products.
11. Non-operating income increased by 134.96% over the corresponding period of last year mainly because more government grants received in the period were recognized in profit or loss.
12. Net cash flows generating from operating activities increased by 540.16% over the corresponding period of last year mainly due to a significant increase in sales volume, sales revenue and profit during the period over the corresponding period of last year.
13. Net cash flows generating from investment activities decreased by 198.01% over the corresponding period of last year mainly due to the investments in the copperplate paper project with annual production capacity of 800,000-tonne and the tissue paper project with annual production capacity of 98,000-tonne of 壽光美倫紙業有限責任公司 (Shouguang Meilun Paper Co., Ltd.), a subsidiary of the Company, the Zhanjiang pulp project and the high-end culture paper project during the reporting period.
14. Net cash flows generating from financing activities decreased by 53.08% over the corresponding period of last year mainly due to more repayments made during the period over the corresponding period of last year.
3.2 The progress of significant events and analysis of their impact and solutions
Applicable .. Not Applicable
3.3 Performance of undertakings by the Company, shareholders and de facto controller
Applicable .. Not Applicable
73.4 Warning on the potential loss in accumulated net profit for the period from the beginning of the year to the end of the next reporting period or any material change in accumulated net profit from the corresponding period of last year and analysis of the reasons thereof
Applicable .. Not Applicable
3.5 Other significant events that require explanation
3.5.1 Investment in securities
Applicable .. Not Applicable
3.5.2 Table setting out reception activities including investigation and research, communication and interviews during the reporting period
Time of reception
Place of reception
Manner of reception
Visitor
Main topics of discussion and information provided
19 January 2010
Shouguang, Shandong
On-site research and investigation
CSC International Holdings Ltd. Shanghai Representative Office
Matters including recent development of the industry and development trend in the future, production and operation of the Company, as well as strategic development
27 January 2010
Shouguang, Shandong
On-site research and investigation
Penghua Fund
Matters including recent development of the industry and development trend in the future, production and operation of the Company, as well as strategic development
2 February 2010
Shouguang, Shandong
On-site research and investigation
Over 10 securities research institutes such as Sinolink Securities
Matters including recent development of the industry and development trend in the future, production and operation of the Company, as well as strategic development
8 March 2010
Shouguang, Shandong
On-site research and investigatio
Macquarie Securities
Matters including recent development of the industry and
8n
development trend in the future, production and operation of the Company, as well as strategic development
17 March 2010
Shouguang, Shandong
On-site research and investigation
Poyry Forest Industry Consulting
Matters including recent development of the industry and development trend in the future, production and operation of the Company, as well as strategic development
31 March 2010
Shouguang, Shandong
On-site research and investigation
The investment bank of Morgan Stanley
Matters including recent development of the industry and development trend in the future, production and operation of the Company, as well as strategic development
3.5.3 Explanation on other significant events
Applicable .. Not Applicable
93.6 Investment in dervatives
.. Applicable Not Applicable
Risk analysis of positions in derivatives during the reporting period and explanation on risk control measures (including but not limited to market risk, liquidity risk, credit risk, operation risk, legal risk etc.)
The Company held two transactions in future pooling foreign exchange portfolio products amounting to USD150 million during the reporting period. The Company made forward exchange settlement contracts in China and Chenming (HK) Limited made forward exchange sale contracts in Hong Kong. The product transactions were handled by the Shouguang branch of China Construction Bank Corporation and the Hong Kong branch of China Construction Bank Corporation at the same time. The currency risk was jointly locked up by the Company and Chenming (HK) Limited. The risk in the products had been assessed by the related departments of the Company and the risk was under control.
Change in market price or fair value of derivatives invested during the reporting period, where specific methods and relevant assumptions and parameters used shall be disclosed in the analysis of the fair value of derivatives
Based on the exchange rate on 31 March 2010 as confirmed by China Construction Bank, the Company recognized the change in the fair value of the derivatives in the reporting period. There was on change in fair value during the reporting period.
Explanation on any significant changes in the Company’s accounting policies and specific accounting principles on derivatives between the reporting period and the last reporting period
The investment in derivatives was subsequently measured at fair value by the Company. The gain or loss on change in fair value was recognized through profit or loss for the current period.
10Specific opinions of independent directors, the sponsor or financial advisor on the investment in derivatives and risk control of the Company
The future polling foreign exchange portfolio products held by the Company in the prior year subsisted during the reporting period. In the opinion of the Audit Committee of the Board and the independent Directors of the Company, the future pooling foreign exchange portfolio products of the Company were operated in accordance with the “Rules on the Administration of Financial Derivatives＂ (《關於金融衍生品管理辦法》) of Shenzhen Stock Exchange and in strict compliance with the “internal management policy for future pooling foreign exchange portfolio products＂ (《遠期結售匯內控管理制度》) established by the Company. The currency risk of the transactions was jointly locked up by the Company and Chenming (HK) Limited and the transaction risk was under control. The pricing of the transactions were objective and fair at arm’s length, thus safeguarding the interest of the shareholders of the Company.
3.6.1 Positions in investment in derivatives at the end of the reporting period
.. Applicable Not Applicable
Unit: RMB
Type of contract
Opening contract amount
Closing contract amount
Gain or loss in the reporting period
Closing contract amount as a percentage of the net assets of the Company as at the end of the reporting period (%)
Buy USD50.00 million
(328,900,000.00)
(328,900,000.00)
—
-2.49%
Buy USD100.00 million
(669,900,000.00)
(669,900,000.00)
—
-5.06%
Sell USD50.00 million
332,200,000.00
332,200,000.00
—
2.51%
Sell USD100.00 million
676,400,000.00
676,400,000.00
—
5.11%
Total
9,800,000.00
9,800,000.00
—
0.07%
11§4 APPENDICES
4.1 Balance Sheet
Prepared by Shandong Chenming Paper Holdings Limited
31 March 2010 Unit: RMB
Balance at the end of period (31 March 2010)
Balance at the beginning of the period (31 December 2009)
Items
Consolidated
The Company
Consolidated
The Company
CURRENT ASSETS:
Monetary assets
3,510,819,766.27
2,505,193,829.69
2,892,923,245.93
2,037,930,262.40
Settlement reserves
—
—
—
—
Lendings to banks
—
—
—
—
Marketable financial assets
14,900,000.00
—
14,900,000.00
—
Bills receivable
2,561,156,320.42
1,713,092,304.94
2,704,799,074.02
1,915,645,987.88
Accounts receivable
1,712,781,529.65
1,678,625,916.25
1,528,991,497.69
1,387,208,451.92
Advance to suppliers
1,080,818,368.92
807,732,351.26
1,000,772,875.85
826,816,984.44
Premiums receivable
—
—
—
—
Reinsurance accounts receivable
—
—
—
—
Reinsurance reserve receivable
—
—
—
—
Interest receivable
—
—
—
—
Dividend receivable
—
164,435,649.61
—
188,362,997.10
Other receivables
102,810,332.48
2,504,775,087.79
81,210,643.94
2,045,123,389.13
Financial assets purchased under repurchase agreements
—
—
—
—
Inventory
2,552,831,408.36
1,236,108,887.83
2,226,579,492.59
901,471,663.46
Entrusted loans due within one year
—
1,717,000,000.00
—
1,688,000,000.00
Other current assets
135,701,063.89
106,617,859.58
90,756,205.60
35,927,902.98
TOTAL CURRENT ASSETS
11,671,818,789.99
12,433,581,886.95
10,540,933,035.62
11,026,487,639.31
12Balance at the end of period
(31 March 2010)
Balance at the beginning of
the period
(31 December 2009)
Items Consolidated The Company Consolidated The Company
NON-CURRENT ASSETS:
Loans and advances provided
—
—
—
—
Available-for-sale financial assets
—
—
—
—
Entrusted loans
—
355,000,000.00
—
395,000,000.00
Long-term receivables
—
—
—
—
Long-term equity investments
80,312,107.12
4,090,997,915.00
80,984,687.49
4,091,670,495.37
Investment properties
25,991,904.10
25,991,904.10
26,426,468.11
26,426,468.11
Fixed assets
13,454,131,364.79
5,615,927,687.67
13,529,590,915.63
5,741,048,494.95
Construction in progress
2,337,571,430.33
165,793,486.97
1,997,961,262.18
139,440,285.68
Construction materials
32,149,507.50
2,333,354.01
42,912,962.27
6,592,106.05
Disposal of fixed assets
—
—
—
—
Productive biological assets
—
—
—
—
Oil and gas assets
—
—
—
—
Intangible assets
1,315,425,501.11
346,865,046.00
1,313,428,867.12
349,130,281.02
Development costs
—
—
—
—
Goodwill
20,283,787.17
—
20,283,787.17
—
Long term amortisation charges
29,232,475.01
—
32,411,932.85
—
Deferred income tax assets
148,944,997.47
87,430,947.27
131,425,981.64
73,479,449.99
Other non-current assets
531,376,500.88
—
496,724,974.94
—
Total non-current assets
17,975,419,575.48
10,690,340,341.02
17,672,151,839.40
10,822,787,581.17
TOTAL ASSETS
29,647,238,365.47
23,123,922,227.97
28,213,084,875.02
21,849,275,220.48
13Balance at the end of period
(31 March 2010)
Balance at the beginning of
the period
(31 December 2009)
Items Consolidated The Company Consolidated The Company
CURRENT LIABILITIES:
Short-term borrowings
2,354,262,014.72
1,894,571,640.62
3,103,153,828.18
2,637,914,967.54
Borrowings from the central bank
—
—
—
—
Deposits taken and balances with other banks
—
—
—
—
Borrowings from banks
—
—
—
—
Marketable financial liabilities
6,450,000.00
6,450,000.00
6,450,000.00
6,450,000.00
Notes payable
351,214,277.59
256,914,277.59
544,532,508.19
456,914,277.59
Accounts payable
2,541,512,230.55
1,720,721,573.88
2,122,860,892.58
1,349,629,055.79
Advances from customers
301,897,902.40
202,857,955.93
233,123,691.11
168,878,896.38
Financial assets sold under repurchase agreements
—
—
—
—
Fees and commissions payable
—
—
—
—
Employee benefits payable
261,479,795.54
144,894,654.93
245,501,281.04
133,530,934.62
Taxes payable
125,750,861.44
52,269,219.40
137,491,104.68
70,066,082.73
Interest payable
22,023,249.99
22,023,249.99
5,050,000.00
5,050,000.00
Dividend payable
78,807.71
78,807.71
78,807.70
78,807.71
Other payables
371,403,348.27
242,124,105.65
321,220,579.61
225,959,345.59
Reinsurance accounts payable
—
—
—
—
Insurance reserve
—
—
—
—
Trading securities on a commissioned basis
—
—
—
—
Underwriting securities on a commissioned basis
—
—
—
—
Non-current liabilities due within one year
293,592,309.25
202,394,500.00
345,353,527.87
252,423,000.00
Short-term debentures payable
1,503,172,083.33
1,503,172,083.33
—
—
TOTAL CURRENT LIABILITIES
8,132,836,880.79
6,248,472,069.03
7,064,816,220.96
5,306,895,367.95
14Balance at the end of period
(31 March 2010)
Balance at the beginning of
the period
(31 December 2009)
Items Consolidated The Company Consolidated The Company
NON-CURRENT LIABILITIES:
Long-term borrowings
4,101,119,807.75
2,408,125,535.94
5,087,424,182.26
3,418,358,035.94
Bonds payable
—
—
—
—
Long-term payables
—
—
—
—
Deferred gains
128,615,189.63
11,080,523.14
121,890,615.92
11,222,282.74
Anticipated liabilities
—
—
—
—
Deferred income tax liabilities
12,408,618.13
—
12,408,618.13
—
Other non-current liabilities
2,290,341,489.83
2,290,341,489.83
1,189,484,415.60
1,189,484,415.60
TOTAL NON-CURRENT LIABILITIES
6,532,485,105.34
4,709,547,548.91
6,411,207,831.91
4,619,064,734.28
TOTAL LIABILITIES
14,665,321,986.13
10,958,019,617.94
13,476,024,052.87
9,925,960,102.23
OWNERS’ EQUITY (or SHAREHOLDERS’ EQUITY):
Paid-up captial (or Share capital)
2,062,045,941.00
2,062,045,941.00
2,062,045,941.00
2,062,045,941.00
Capital surplus
6,093,483,801.92
6,184,215,988.77
6,093,483,801.92
6,184,215,988.77
Less: treasury shares
—
—
—
—
Special reserve
—
—
—
—
Surplus reserve
906,929,047.49
894,739,465.58
906,929,047.49
894,739,465.58
General risk reserve
—
—
—
—
Undistributed profits
4,166,685,540.79
3,024,901,214.68
3,928,586,297.55
2,782,313,722.90
Difference on translation
856,466.64
—
859,233.72
—
TOTAL EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY
13,230,000,797.84
12,165,902,610.03
12,991,904,321.68
11,923,315,118.25
Minority interests
1,751,915,581.50
—
1,745,156,500.47
—
TOTAL OWNERS’ EQUITY
14,981,916,379.34
12,165,902,610.03
14,737,060,822.15
11,923,315,118.25
TOTAL LIABILITIES AND OWNERS’ EQUITY
29,647,238,365.47
23,123,922,227.97
28,213,084,875.02
21,849,275,220.48
154.2 Income Statement
Prepared by Shandong Chenming Paper Holdings Limited
January-March 2010 Unit: RMB
The current period (January-March 2010)
The previous period (January-March 2009)
Items
Consolidated
The Company
Consolidated
The Company
I.Total operating revenue
3,917,441,890.00
3,312,237,226.65
2,874,448,414.82
2,587,541,859.63
Including: Operating revenue
3,917,441,890.00
3,312,237,226.65
2,874,448,414.82
2,587,541,859.63
Interest income
—
—
—
—
Premiums earned
—
—
—
—
Fees and commission income
—
—
—
—
II.Total costs of operations
3,635,503,132.43
3,078,618,711.94
2,875,692,950.60
2,595,114,554.53
Including: Costs of operations
3,141,673,026.32
2,810,911,841.68
2,597,352,358.53
2,416,136,937.91
Interest expenses
—
—
—
—
Fees and commission expenses
—
—
—
—
Surrender charges
—
—
—
—
Net claim payments
—
—
—
—
Net premium reserves on drawn-down polices
—
—
—
—
Policy dividend payments
—
—
—
—
Reinsurance fee
—
—
—
—
Tax and levies on operations
3,901,057.41
49,940.69
3,243,353.16
93,180.33
Selling and distribution expenses
206,922,027.74
101,865,373.94
145,167,431.90
91,734,763.53
General and administrative expenses
201,176,256.05
96,726,207.06
170,541,864.99
56,843,714.91
Finance expenses
65,756,282.98
52,772,422.66
93,050,280.12
76,573,187.14
Loss on impairment of assets
16,074,481.93
16,292,925.91
— 133,662,338.10
-46,267,229.29
Add: Gain on change in fair value (“-” denotes loss)
—
—
—
—
16The current period
(January-March 2010)
The previous period
(January-March 2009)
Items Consolidated The Company Consolidated The Company
Investment income (“-” denotes loss)
-1,672,580.37
24,480,569.13
-3,932,216.58
19,720,223.17
Including:Investment income from associates and joint ventures
-1,672,580.37
-1,672,580.37
-3,932,216.58
-3,932,216.58
Gain on translation (“-” denotes loss)
—
—
—
—
III.Operating profit (“-” denotes loss)
280,266,177.20
258,099,083.84
-5,176,752.36
12,147,528.27
Add: Non-operating income
45,633,132.91
31,679,777.35
19,421,985.71
12,481,357.27
Less: Non-operating expenses
2,811,486.59
2,172,470.78
3,703,296.65
3,220,140.90
Including: Loss on disposal of non-current assets
—
—
—
—
IV.Total profit (“-” denotes total loss)
323,087,823.52
287,606,390.41
10,541,936.70
21,408,744.64
Less: Income tax expenses
59,383,482.51
45,018,898.63
5,153,688.42
7,292,169.77
V.Net profit (“-” denotes net loss)
263,704,341.01
242,587,491.78
5,388,248.28
14,116,574.87
Net profit attributable to equity holders of the Company
238,099,243.24
242,587,491.78
7,846,215.38
14,116,574.87
Profit and loss of minority interests
25,605,097.77
—
-2,457,967.10
—
VI.Earnings per share:
(I)Basic earnings per share
0.12
0.12
0.0038
0.0068
(II)Diluted earnings per share
N/A
N/A
N/A
N/A
VII.Other comprehensive income
(2,767.08)
—
1,294.41
—
VIII.Total comprehensive income
263,701,573.93
242,587,491.78
5,389,542.69
14,116,574.87
Total comprehensive income attributable to equity holders of the Company
238,096,476.16
242,587,491.78
7,847,509.79
14,116,574.87
Total comprehensive income attributable to minority interests
25,605,097.77
—
-2,457,967.10
—
174.3 Cash Flow Statement
Prepared by Shandong Chenming Paper Holdings Limited
January-March 2010 Unit: RMB
The current period (January-March 2010)
The previous period (January-March 2009)
Items
Consolidated
The Company
Consolidated
The Company
I.Cash flows from operating activities:
Cash received from sales of goods and rendering of services
4,004,494,020.37
2,479,208,090.97
2,000,606,763.32
1,398,718,345.94
Net increase in customer deposits and balances with other banks
—
—
—
—
Net increase in borrowings from the central bank
—
—
—
—
Net increase in borrowings from other financial institutions
—
—
—
—
Cash received as premiums under original policies
—
—
—
—
Net cash received from the reinsurance business
—
—
—
—
Net increase in reserves and investments funds held under trust for customers
—
—
—
—
Net increase in disposal of marketable financial assets
—
—
—
—
Cash received as interest, fees and commission
—
—
—
—
Net increase in borrowings from other banks
—
—
—
—
18The current period
(January-March 2010)
The previous period
(January-March 2009)
Items Consolidated The Company Consolidated The Company
Net increase in funds related to the repurchase business
—
—
—
—
Refund of taxes and levies
9,378,100.97
—
4,108,626.89
—
Cash received relating to other operating activities
44,161,584.31
39,069,098.18
66,456,349.04
26,684,837.77
Subtotal of cash inflows from operating activities
4,058,033,705.65
2,518,277,189.15
2,071,171,739.25
1,425,403,183.71
Cash paid for goods and services
2,688,505,769.18
1,750,017,341.55
1,864,339,058.22
1,790,311,954.65
Net increase in customer loans and advances
—
—
—
—
Net increase in funds placed with the central bank and other banks
—
—
—
—
Cash paid for claims under original policies
—
—
—
—
Cash paid as interest, fees and commissions
—
—
—
—
Cash paid as policy dividends
—
—
—
—
Cash paid to and on behalf of employees
158,130,451.51
55,098,679.25
120,182,981.65
45,865,461.81
Payments of taxes and levies
376,042,339.97
263,901,407.49
138,374,063.90
73,980,310.59
Cash paid relating to other operating activities
179,332,384.75
461,700,609.60
97,318,409.89
47,823,677.51
Subtotal of cash outflows from operating activities
3,402,010,945.41
2,530,718,037.89
2,220,214,513.66
1,957,981,404.56
Net cash flows from operating activities
656,022,760.24
-12,440,848.74
— 149,042,774.41
— 532,578,220.85
II.Cash flows from investing activities
Cash received from investments
—
126,000,000.00
—
480,000,000.00
Cash received from investment income
—
26,153,149.50
—
28,652,439.75
19The current period
(January-March 2010)
The previous period
(January-March 2009)
Items Consolidated The Company Consolidated The Company
Net cash received from disposal of fixed assets, intangible assets and other long-term assets
52,207.60
4,629.80
718,071.92
496,994.00
Net cash received from disposal of subsidiaries and other operating entities
—
—
—
—
Cash received relating to other investing activities
4,000,000.00
—
35,000,000.00
—
Subtotal of cash inflows from investing activities
4,052,207.60
152,157,779.30
35,718,071.92
509,149,433.75
Cash paid to acquire fixed assets, intangible assets and other long-term assets
523,466,628.10
19,469,657.44
209,012,929.17
3,920,875.05
Cash paid on investments
—
115,000,000.00
—
210,000,000.00
Net increase in secured loans
—
—
—
—
Net cash received from subsidiaries and other operating entities
—
—
1,000,000.00
—
Other cash paid in relation to investing activities
—
—
—
—
Subtotal of cash outflows from investing activities
523,466,628.10
134,469,657.44
210,012,929.17
213,920,875.05
Net cash flows from investing activities
— 519,414,420.50
17,688,121.86
— 174,294,857.25
295,228,558.70
III.Cash flows from financing activities
Cash received from investment
—
—
—
—
Including: cash received from capital contribution from minority shareholders in subsidiaries
—
—
—
—
20The current period
(January-March 2010)
The previous period
(January-March 2009)
Items Consolidated The Company Consolidated The Company
Cash received from borrowings
1,431,866,401.77
1,093,937,283.91
3,345,189,024.26
3,067,588,146.95
Cash received from issuance of short-term debentures
1,494,000,000.00
1,494,000,000.00
—
—
Cash received from issuance of medium-term notes
1,100,000,000.00
1,100,000,000.00
—
—
Cash received relating to other financing activities
184,150,029.56
200,770,000.00
—
—
Subtotal of cash inflows from financing activities
4,210,016,431.33
3,888,707,283.91
3,345,189,024.26
3,067,588,146.95
Cash repayments of amounts borrowed
3,481,997,601.85
3,171,751,908.26
1,850,861,857.31
1,498,140,008.75
Cash payments for interest expenses, and dividend or profit distribution
62,193,623.89
53,842,277.70
75,369,065.99
63,030,013.30
Including: dividend and profit distribution paid by subsidiaries to their minority shareholders
—
—
—
—
Cash payments relating to other financing activities
—
—
—
—
Subtotal of cash outflows from financing activities
3,544,191,225.74
3,225,594,185.96
1,926,230,923.30
1,561,170,022.05
Net cash flows from financing activities
665,825,205.59
663,113,097.95
1,418,958,100.96
1,506,418,124.90
IV.Effect of foreign exchange rate changes on cash and cash equivalents
-386,995.43
-326,803.77
-470,811.85
-159,333.08
V.Net increase in cash and cash equivalents
802,046,549.90
668,033,567.30
1,095,149,657.45
1,268,909,129.67
Add: Balance of cash and cash equivalents at the beginning of the period
2,367,334,202.50
1,586,045,998.83
2,853,418,128.07
2,142,439,739.51
21The current period
(January-March 2010)
The previous period
(January-March 2009)
Items Consolidated The Company Consolidated The Company
VI.Balance of cash and cash equivalents at the end of the period
3,169,380,752.40
2,254,079,566.13
3,948,567,785.52
3,411,348,869.18
4.4 Auditors’ report
Auditors’ opinion: Unaudited
22 April 2010
22
