Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
SHANDONG CHENMING PAPER HOLDINGS LIMITED
2014 Third Quarter Report
October 2014
— 1 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
I Important Notice
The board of directors (the “Board”), the supervisory committee (the “Supervisory
Committee”), the directors (the “Directors”), supervisors (the “Supervisors”) and
senior management (the “Senior Management”) of the Company hereby warrant that
the contents of this quarter report are true, accurate and complete, and there are no
false representations, misleading statements or material omissions, and 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, head of the Company, Dong Lianming, head in charge of accounting
and Liu Jun, head of the accounting department (Accounting Officer), declare that
they warrant the truthfulness, accuracy and completeness of the financial statements
in this quarter report.
— 2 —
Report for the Third Quarter of 2014 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 the end of the
As at the end of As at the end of the prior year prior year (%)
the reporting Before After After
period adjustment adjustment adjustment
Total assets (RMB) 51,161,153,036.96 47,521,883,569.18 47,521,883,569.18 7.66%
Net assets attributable to
shareholders of the
Company (RMB) 13,739,249,109.88 14,039,888,226.11 14,039,888,226.11 -2.14%
Increase/decrease
from the
beginning of the
Increase/decrease year to the end
for the reporting of the reporting
period compared From the period 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) 4,957,710,823.44 -1.34% 14,039,731,402.45 -6.73%
Net profit attributable to
shareholders of the
Company (RMB) 98,736,396.40 -49.77% 341,197,491.42 -35.62%
Net profit after extraordinary
gains or losses attributable
to shareholders of the
Company (RMB) 52,059,625.26 -63.88% 109,873,098.53 -60.57%
Net cash flows from operating
activities (RMB) — — 1,345,633,170.22 28.78%
Basic earnings per share
(RMB per share) 0.06 -40.00% 0.18 -30.77%
Diluted earnings per share
(RMB per share) 0.06 -40.00% 0.18 -30.77%
Rate of return on net assets on
weighted average basis 0.73% -0.68% 2.45% -1.36%
— 3 —
Report for the Third Quarter of 2014 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) 76,259,253.81
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
163,646,172.81
Gain or loss from debt restructuring 633,062.97
Non-operating gains and losses other than
the above items 63,105,193.22
Other gain or loss within the
definition of extraordinary gain or loss
967,670.22
Less: Effect of income tax 58,207,998.61
Effect of minority interest (after tax) 15,078,961.53
Total 231,324,392.89 —
Notes for the Company‘s extraordinary gain or loss items as defined in the
Explanatory Announcement on Information Disclosure for Companies Offering Their
Securities to the Public No.1 - Extraordinary Gains or Losses and the extraordinary
gain or loss items as illustrated in the Explanatory Announcement on Information
Disclosure for Companies Offering Their Securities to the Public No.1 -
Extraordinary Gains or Losses defined as its recurring gain or loss items
□ Applicable √ Not applicable
No extraordinary gain or loss items as defined or illustrated in the Explanatory
Announcement on Information Disclosure for Companies Offering Their Securities to
the Public No.1 - Extraordinary Gains or Losses were defined by the Company as its
recurring gain or loss items during the reporting period.
— 4 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
II. Total number of shareholders and the shareholding of the top ten
shareholders as at the end of the reporting period
1. Total number of shareholders of ordinary shares and the shareholding of
the top ten shareholders of ordinary shares as at the end of the reporting
period
Unit: share
Total number of 123,083, of which 95,005 were holders of A shares, 27,526 holders of B shares and
shareholders of ordinary 552 holders of H shares
shares as at the end of
the reporting period
Shareholding of the top ten shareholders of ordinary shares
Share pledged or
locked-up
Number of Status
Nature of Percentage of Number of Restricted of
Name of shareholders shareholders shareholding shares held shares held shares Number
HKSCC NOMINEES Overseas legal 18.11% 350,691,500 0 — 0
LIMITED person
SHOUGUANG State-owned 15.13% 293,003,657 0 — 0
CHENMING legal person
HOLDINGS COMPANY
LIMITED
PLATINUM ASIA FUND Overseas legal 1.67% 32,341,052 0 — 0
person
CAITONG FUND - Others 1.62% 31,306,508 0 — 0
EVERBRIGHT BANK -
CAITONG FUND -
YUAN MEI NO. 2
ASSETS
MANAGEMENT
PROGRAMME
CAITONG FUND - Others 1.54% 29,868,220 0 — 0
EVERBRIGHT BANK -
YUAN MEI NO. 1
ASSETS
MANAGEMENT
PROGRAMME
WU Jianrong Domestic nature 0.94% 18,277,723 0 — 0
person
YUNNAN Others 0.88% 17,030,727 0 — 0
INTERNATIONAL
TRUST CO., LTD. -
YUNNAN TRUST
GROWTH 2013 - NO. 2
ASSEMBLED FUNDS
TRUST PROGRAMME
KONG Qingping Domestic nature 0.79% 15,273,341 0 — 0
person
YAO Liangjin Domestic nature 0.76% 14,786,187 0 — 0
person
BBH A/C VANGUARD Overseas legal 0.62% 12,036,985 0 — 0
EMERGING MARKETS person
STOCK INDEX FUND
— 5 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
Shareholdings of the top ten shareholders of non-restricted ordinary shares
Number of
non-restricted Share class
ordinary shares Share class Number
Name of shareholders held
HKSCC NOMINEES LIMITED 350,691,500 Overseas listed 350,691,500
foreign shares
SHOUGUANG CHENMING 293,003,657 RMB ordinary 293,003,657
HOLDINGS COMPANY LIMITED shares
PLATINUM ASIA FUND 32,341,052 Domestic listed 32,341,052
foreign shares
CAITONG FUND - EVERBRIGHT 31,306,508 RMB ordinary 31,306,508
BANK - CAITONG FUND - YUAN shares
MEI NO. 2 ASSETS MANAGEMENT
PROGRAMME
CAITONG FUND - EVERBRIGHT 29,868,220 RMB ordinary 29,868,220
BANK - YUAN MEI NO. 1 ASSETS shares
MANAGEMENT PROGRAMME
WU Jianrong 18,277,723 RMB ordinary 18,277,723
shares
YUNNAN INTERNATIONAL TRUST 17,030,727 RMB ordinary 17,030,727
CO., LTD. - YUNNAN TRUST shares
GROWTH 2013 - NO. 2 ASSEMBLED
FUNDS TRUST PROGRAMME
KONG Qingping 15,273,341 RMB ordinary 15,273,341
shares
YAO Liangjin 14,786,187 RMB ordinary 14,786,187
shares
BBH A/C VANGUARD EMERGING 12,036,985 Domestic listed 12,036,985
MARKETS STOCK INDEX FUND foreign shares
Connected relationship or connected Shouguang Chenming Holdings Company Limited, a state-
party relationship among the above owned legal person shareholder, is not connected with any of
shareholders the shareholders above. They are not persons acting in
concert under Administration of Disclosure of Information on
the Change of Shareholdings in Listed Companies Procedures.
Both Caitong Fund - Everbright Bank - Caitong Fund — Yuan
Mei No. 2 Assets Management Programme and Caitong Fund —
Everbright Bank - Yuan Mei No. 1 Assets Management
Programme are funds managed by Caitong Fund Management
Co., Ltd. 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 others.
Particulars on top ten shareholders of Wu Jianrong held 18,277,723 RMB ordinary shares of the
non-restricted ordinary shares engaged Company through the client credit trading guarantee securities
in margin trading and short selling (if account at GF Securities Co. Limited. Kong Qingping held
any) 15,273,341 RMB ordinary shares of the Company through the
client credit trading guarantee securities account at Haitong
Securities Company Limited. Yao Liangjin held 14,784,987
RMB ordinary shares of the Company through the client credit
trading guarantee securities account at GF Securities Co.
Limited.
— 6 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
Whether an agreed repurchase transaction was entered into during the reporting
period by the top ten shareholders of ordinary shares and top ten shareholders of
non-restricted ordinary shares of the Company
□ Yes √ No
The top ten shareholders of ordinary shares and the top ten 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 the shareholding
of the top ten shareholders of preference shares as at the end of the
reporting period
□ Applicable √ Not applicable
III Material matters
I. Details and reasons for changes of major accounting statement items and
financial indicators during the reporting period
√ Applicable □ Not applicable
(I) Analysis of the assets and liabilities of the Company
Unit: RMB
Reasons
Item 30 September 2014 31 December 2013 Change for change
Prepayments 2,069,146,732.30 1,589,021,331.24 30.22% (1)
Construction in
progress 3,703,529,027.43 5,266,031,817.60 -29.67% (2)
Construction
materials 19,222,923.50 63,968,067.62 -69.95% (3)
Long-term receivables 500,900,000.00 0 100% (4)
Other non-current
assets 900,000,000.00 0 100% (5)
Short-term
borrowings 14,367,452,048.71 9,818,885,237.85 46.32% (6)
Bills payable 475,104,139.58 290,403,790.59 63.60% (7)
Interest payable 246,069,805.52 153,189,860.42 60.63% (8)
Other payables 697,273,000.24 486,836,595.89 43.23% (9)
Other current
liabilities 2,136,058,869.87 3,878,735,536.52 -44.93% (10)
Long-term payables 265,958,679.90 60,000,000.00 343.26% (11)
— 7 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
Explanation of the reasons leading to the major changes:
(1) Prepayments increased by 30.22% mainly due to an increase in prepayments
for raw materials by the Company.
(2) Construction in progress decreased by 29.67% mainly due to the
reclassification of Jilin Chenming’s environmental protection relocation
project, Wuhan Chenming’s household paper project and Meilun Paper’s
paper additives project as fixed assets upon completion. They are
subsidiaries of the Company.
(3) Construction materials decreased by 69.95% mainly due to the
reclassification of Jilin Chenming’s environmental protection relocation
project as fixed assets.
(4) Long-term receivables increased by 100% mainly due to the new external
businesses of the financial leasing company.
(5) Other non-current assets increased by 100% mainly due to the new external
entrusted loans due after 1 year.
(6) Short-term borrowings increased by 46.32% mainly due to repayment for
short-term commercial paper due and project investment.
(7) Bills payable increased by 63.60% mainly due to an increase in payment for
goods by bills.
(8) Interest payable increased by 60.63% mainly due to the provision for
interest on corporate bonds and medium-term notes.
(9) Other payables increased by 43.23% mainly due to an increase in the
provision for interest payable and expense and the guarantee amount
received.
(10) Other current liabilities decreased by 44.93% mainly due to the repayment
of short-term commercial paper due.
(11) Long-term payables increased by 343.62% mainly due to an increase in the
borrowings of RMB168 million from the Management Committee of
Nanchang Economic and Technological Development Zone to the phase II
project of Jiangxi Chenming.
— 8 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
(II) Reasons for significant year on year changes of income statement items
during the reporting period
Unit: RMB
Reasons
January - January - for
Item September 2014 September 2013 Change change
Finance expenses 946,282,893.04 717,678,559.57 31.85% (1)
Loss on impairment
of assets 22,008,283.96 -8,879,885.44 347.84% (2)
Gain on change in
fair value 967,670.22 9,229,042.51 -89.51% (3)
Investment income 45,626,015.23 5,313,584.84 758.67% (4)
Non-operating
expenses 14,344,376.32 62,821,989.23 -77.17% (5)
Income tax expenses 56,092,305.40 117,976,857.82 -52.45% (6)
Explanation of the reasons leading to the major changes:
(1) Finance expenses increased by 31.85% mainly due to the depreciation of
RMB resulting in increase in exchange loss.
(2) Loss on impairment of assets increased by 347.84% mainly due to an
increase in bad debt provision for accounts receivable.
(3) Gain on change in fair value decreased by 89.51% mainly due to an increase
in logging woodland.
(4) Investment income increased by 758.67% mainly due to receipt of the
interest on new entrusted loans made by the Company.
(5) Non-operating expenses decreased by 77.17% mainly due to the loss on
disposal of non-current assets during the prior period.
(6) Income tax expenses decreased by 52.45% mainly due to the year on year
decrease of the profitability of the Company as affected by the factors such
as market and exchange rate changes.
— 9 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
(III) Analysis of cash flows during the reporting period
Unit: RMB
Amounts for the
Amounts for the corresponding period Reasons
Item period of the prior year Change for change
Net cash flows from
operating activities 1,345,633,170.22 1,044,925,354.18 28.78% (1)
Net cash flows from
investment activities -2,315,636,367.42 -1,676,114,442.20 -38.16% (2)
Net cash flows from
financial activities 1,856,086,808.55 -1,120,946,082.01 265.58% (3)
Explanation of the reasons leading to the major changes:
(1) Net cash flows from operating activities increased by 28.78% mainly due to
an increase proportion in payment for goods by bills.
(2) Net cash flows from investment activities decreased by 38.16% mainly due
to the increase in entrusted loans to other companies.
(3) Net cash flows from financial activities increased by 265.58% mainly due to
an increase in borrowings for the period as a result of the projects.
(IV) Implementation of new or amended accounting standards
In accordance with the requirements of “Notice on the issuance of ‘Accounting
Standard for Business Enterprises No. 39 — Fair value measurement’” (Cai Kuai
[2014] No. 6), “Notice on the issuance of amendment to ‘Accounting Standard
for Business Enterprises No. 30 — Presentation of financial statements’” (Cai
Kuai [2014] No. 7), “Notice on the issuance of amendment to ‘Accounting
Standard for Business Enterprises No. 9 — Employee benefits’” (Cai Kuai
[2014] No. 8), “Notice on the issuance of amendment to ‘Accounting Standard
for Business Enterprises No. 33 — Consolidated financial statements’” (Cai
Kuai [2014] No. 10), “Notice on the issuance of ‘Accounting Standard for
Business Enterprises No. 40 — Joint arrangement’” (Cai Kuai [2014] No.
11),“Notice on the issuance of ‘Accounting Standard for Business Enterprises
No. 2 — Long-term equity investments’” (Cai Kuai [2014] No. 14) and “Notice
on the issuance of ‘Accounting Standard for Business Enterprises No. 41 —
Disclosure of interests in other entities’” (Cai Kuai [2014] No. 16), entities
listed overseas are encouraged to early adopt the above seven accounting
standards newly adopted or amended in 2014. As a company listed in the PRC
and Hong Kong, the Company implemented the above newly adopted or amended
accounting standards in preparation of the financial statements for 2013 and the
first half of 2014 prospectively.
— 10
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
II. Progress in respect to material matters and analysis of the related effects
and solutions
□ Applicable √ Not applicable
III. Undertakings made by the Company and shareholders interested in 5%
or more of the shares of the Company made in the reporting period or
subsisting to the reporting period
√ Applicable □ Not applicable
Party Particulars
involved in Undertaking on the
Undertaking undertaking Details of undertaking date Term performance
Undertaking on change
in shareholding
structure
Undertaking made in
offering documents
or shareholding
alternation
documents
Undertaking made
during asset
reconstruction
Undertaking made on Shouguang (1) According to the plan on defective 16 January During the Strictly
initial public Chenming properties of the Company, Shouguang 2008 period when implemented
offering or Holdings Chenming Holdings has guaranteed Chenming
refinancing Co., Ltd, the and undertaken that: according to the Holdings
controlling application of the Company, for was the
shareholder defective property(ies) owned by the major
of the Company and its holding subsidiary shareholder
Company company which situated in the of the
administrative area of Shouguang city, Company
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.
— 10 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
Party Particulars
involved in Undertaking on the
Undertaking undertaking Details of undertaking date Term performance
Shouguang (1) Shouguang Chenming Holdings 22 May During the Strictly
Chenming shall not engage, whether solely, 2008 period when implemented
Holdings jointly, or by representing itself or Chenming
Co., Ltd, the any other persons or companies, and Holdings
controlling shall not procure its associates (as was the
shareholder defined in The Listing Rules of Hong major
of the Kong Stock Exchange) to engage, in shareholder
Company any business which competes with the of the
business of the Company and its Company
subsidiaries (“Chenming Group” or
“we”) directly or indirectly, in any
country and region which our business
exists (or any part of the world if in
any form of electronics business), or
in any business that directly or
indirectly competes with Chenming
Group’s business which we operate
from time to time (including but not
limited to any business in the form of
sole proprietorship, joint ventures or
acquisitions, or holding interests
directly or indirectly in such
enterprises, or by any other means);
(2) in the event that Shouguang
Chenming Holdings is required by its
business to, whether solely, jointly, or
by representing itself or any other
persons or companies, engage in
business which directly or indirectly
competes against the business of
Chenming Group, or obtain any
business opportunity which directly or
indirectly competes against the
business of Chenming Group, it shall
endeavour to procure that Chenming
Group shall have priority to obtain the
right to operate such business or to
obtain such business opportunity; (3)
if Shouguang Chenming Holdings is in
breach of the abovementioned
undertakings, it shall indemnify the
Company for any loss caused by such
breach and the Company shall have
the right to acquire all businesses of
Shouguang Chenming Holdings, which
directly or indirectly compete with the
businesses of our Group, at market
price or cost price (whichever price is
lower); (4) Shouguang Chenming
Holdings shall not make use of its
position as the controlling shareholder
(as defined in The Listing Rules of
Hong Kong Stock Exchange) of our
Group to jeopardise the legal interests
of Chenming Group and its
shareholders with other persons or
companies or on their behalf.
Other undertakings
made to minority
shareholders of the
Company
Does the undertaking Yes
performed timely?
— 11 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
IV. Estimate of the operating results for 2014
Warning of projection on cumulative net profit for the period from the beginning
of the year to the end of the next reporting period to be at a loss or expected to
have material changes as compared to the corresponding period of prior year and
its explanation
□ Applicable √ Not applicable
V. Security investments
□ Applicable √ Not applicable
The Company did not have any security investments during the reporting period.
Equity interests held in other listed companies
□ Applicable √ Not applicable
The Company did not hold any equity interests in other listed companies as at
the end of the reporting period.
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
Main topics of
Class of discussion and
Date of Place of Manner of parties Parties information
reception reception reception accommodated accommodated provided
2 July 2014 The Company’s On-site research Institution Shanghai Recent
conference investigation Chongyang production and
room Investment operation of the
Management Company and
Co., Ltd. development of
the industry
23 July 2014 The Company’s Conference call Institution Everbright Recent
conference Pramerica Fund production and
room Management operation of the
Co., Ltd. Company and
development of
the industry
23 July 2014 The Company’s On-site research Institution Dongxing Recent
conference investigation Securities Co., production and
room Ltd. operation of the
Company and
development of
the industry
— 12 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
IV Financial Statements
I. Financial Statements
1. Consolidated Balance Sheet
Prepared by: Shandong Chenming Paper Holdings Limited
Unit: RMB
Item Closing balance Opening balance
CURRENT ASSETS:
Monetary funds 2,899,945,297.91 2,547,729,794.24
Balances with clearing companies
Loans to banks and other financial
institutions
Financial assets at fair value through
profit or loss
Bills receivable 2,247,684,127.58 2,870,443,681.49
Accounts receivable 3,228,364,134.44 3,102,643,083.54
Prepayments 2,069,146,732.30 1,589,021,331.24
Premium receivable
Receivables from reinsurers
Reinsurance contract reserves receivable
Interest receivable
Dividend receivable
Other receivables 1,371,531,593.23 1,331,900,749.84
Financial assets purchased under
agreements to resell
Inventories 4,186,103,929.23 3,725,809,877.25
Assets classified as held-for-sale
Non-current assets due within one year 100,000,000.00
Other current assets 1,647,947,637.47 1,740,520,586.37
Total current assets 17,750,723,452.16 16,908,069,103.97
NON-CURRENT ASSETS:
Entrusted loans and advances to
customers
Available-for-sale financial assets 73,000,000.00 83,000,000.00
Held-to-maturity investments
Long-term receivables 500,900,000.00
Long-term equity investments 38,206,830.18 32,477,214.86
Investment properties 18,169,751.92 19,473,443.95
Fixed assets 24,050,203,071.48 21,181,647,488.39
— 13 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
Item Closing balance Opening balance
Construction in progress 3,703,529,027.43 5,266,031,817.60
Construction materials 19,222,923.50 63,968,067.62
Disposal of fixed assets 639,720,623.62 588,181,647.53
Consumable biological assets 1,376,029,496.97 1,317,141,123.77
Oil and gas assets
Intangible assets 1,327,283,237.46 1,365,418,002.26
Development expenditure
Goodwill 20,283,787.17 20,283,787.17
Long-term prepaid expenses 169,915,695.20 168,538,483.68
Deferred income tax assets 573,965,139.87 507,653,388.38
Other non-current assets 900,000,000.00
Total non-current assets 33,410,429,584.80 30,613,814,465.21
Total assets 51,161,153,036.96 47,521,883,569.18
CURRENT LIABILITIES:
Short-term borrowings 14,367,452,048.71 9,818,885,237.85
Borrowings from the central bank
Customer bank deposits and due to
banks and other financial institutions
Placements from banks and other
financial institutions
Financial liabilities at fair value through
profit or loss
Bills payable 475,104,139.58 290,403,790.59
Accounts payable 3,094,876,439.92 2,695,169,927.14
Advance receipts 343,370,592.34 442,432,261.58
Assets sold under agreements to
repurchase
Handling charges and commission
payable
Staff remuneration payables 131,629,204.37 130,271,812.18
Taxes payable 126,714,449.74 130,192,936.87
Interest payable 246,069,805.52 153,189,860.42
Dividend payable
Other payables 697,273,000.24 486,836,595.89
Due to reinsurers
Insurance contract reserves
Customer brokerage deposits
Securities underwriting brokerage
deposits
— 14 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
Item Closing balance Opening balance
Liabilities classified as held-for-sale
Non-current liabilities due within one
year 1,061,286,800.00 1,287,804,452.66
Other current liabilities 2,136,058,869.87 3,878,735,536.52
Total current liabilities 22,679,835,350.29 19,313,922,411.70
NON-CURRENT LIABILITIES:
Long-term borrowings 3,982,520,207.90 3,723,865,807.90
Bonds payable 5,774,953,134.19 5,768,418,612.73
Long-term payables 265,958,679.90 60,000,000.00
Special payables 1,200,116,148.84 971,805,561.39
Estimated liabilities
Deferred income 477,698,296.20 468,354,064.53
Deferred income tax liabilities
Other non-current liabilities 2,582,867,164.24 2,577,163,578.04
Total non-current liabilities 14,284,113,631.27 13,569,607,624.59
TOTAL LIABILITIES 36,963,948,981.56 32,883,530,036.29
OWNERS’ EQUITY (OR
SHAREHOLDERS’ EQUITY):
Paid-up capital (or share capital) 1,936,405,467.00 1,975,471,967.00
Capital reserves 6,149,109,673.41 6,204,682,028.94
Less: Treasury shares 30,954,891.40
Other comprehensive income 19,703,070.17 16,934,073.59
Special reserves
Surplus reserves 1,132,116,106.40 1,132,116,106.40
General risk provisions
Retained profit 4,501,914,792.90 4,741,638,941.58
Difference in foreign currency
translation
Total equity attributable to equity
holders of the company 13,739,249,109.88 14,039,888,226.11
Minority interest 457,954,945.52 598,465,306.78
Total owners’ equity (or shareholders’
equity) 14,197,204,055.40 14,638,353,532.89
TOTAL LIABILITIES AND OWNERS’
EQUITY (OR SHAREHOLDERS’
EQUITY) 51,161,153,036.96 47,521,883,569.18
Legal Representative: Financial controller: Head of the financial department:
Chen Hongguo Dong Lianming Liu Jun
— 15 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
2. Balance sheet of the Company
Prepared by: Shandong Chenming Paper Holdings Limited
Unit: RMB
Item Closing balance Opening balance
CURRENT ASSETS:
Monetary funds 744,010,694.61 1,454,242,620.40
Financial assets at fair value through
profit or loss
Bills receivable 2,676,592,194.26 945,832,396.01
Accounts receivable 4,212,731,180.80 3,814,654,532.05
Prepayments 1,325,097,639.95 762,470,888.60
Interest receivable
Dividend receivable 191,300,102.21
Other receivables 8,901,124,886.55 11,051,622,177.96
Inventories 917,211,052.87 857,030,449.25
Assets classified as held-for-sale
Non-current assets due within one year 100,000,000.00 200,000,000.00
Other current assets 113,391,914.23 103,214,843.26
Total current assets 18,990,159,563.27 19,380,368,009.74
NON-CURRENT ASSETS:
Available-for-sale financial assets 73,000,000.00 83,000,000.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 10,721,593,518.04 8,780,738,003.45
Investment properties 18,169,751.92 19,473,443.95
Fixed assets 4,907,570,512.65 5,170,770,619.87
Construction in progress 310,088,608.55 127,095,105.63
Construction materials 1,592,459.26 1,813,442.43
Disposal of fixed assets
Consumable biological assets
Oil and gas assets
Intangible assets 300,708,837.52 308,163,298.83
Development expenditure
Goodwill
Long-term prepaid expenses
Deferred income tax assets 20,070,135.76 17,082,162.53
Other non-current assets 900,000,000.00
Total non-current assets 17,252,793,823.70 14,508,136,076.69
TOTAL ASSETS 36,242,953,386.97 33,888,504,086.43
CURRENT LIABILITIES:
Short-term borrowings 6,956,930,952.02 5,119,632,573.69
Financial liabilities at fair value through
profit or loss
— 16 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
Item Closing balance Opening balance
Bills payable 213,178,871.28 500,000.00
Accounts payable 745,288,743.08 891,996,724.44
Advance receipts 6,021,330.56 185,524,508.71
Staff remuneration payables 80,502,427.56 62,091,273.25
Taxes payable 39,523,057.82 8,949,746.01
Interest payable 246,069,805.52 150,047,305.56
Dividend payable
Other payables 1,744,045,260.98 431,217,791.18
Liabilities classified as held-for-sale
Non-current liabilities due within one
year 480,675,000.00 343,876,000.00
Other current liabilities 2,112,229,467.97 3,856,239,467.95
Total current liabilities 12,624,464,916.79 11,050,075,390.79
NON-CURRENT LIABILITIES:
Long-term borrowings 1,069,842,035.94 594,568,035.94
Bonds payable 5,774,953,134.19 5,768,418,612.73
Long-term payables
Special payables
Estimated liabilities
Deferred income 27,244,498.97 30,016,933.24
Deferred income tax liabilities
Other non-current liabilities 2,582,867,164.24 2,577,163,578.04
Total non-current liabilities 9,454,906,833.34 8,970,167,159.95
TOTAL LIABILITIES 22,079,371,750.13 20,020,242,550.74
OWNERS’ EQUITY (OR
SHAREHOLDERS’ EQUITY):
Paid-up capital (or share capital) 1,936,405,467.00 1,975,471,967.00
Capital reserves 5,938,839,256.70 6,005,426,779.17
Less: Treasury shares 30,954,891.40
Special reserves
Surplus reserves 1,119,926,524.49 1,119,926,524.49
General risk provisions
Retained profit 5,168,410,388.65 4,798,391,156.43
Difference in foreign currency
translation
Total owners’ equity (or shareholders’
equity) 14,163,581,636.84 13,868,261,535.69
TOTAL LIABILITIES AND OWNERS’
EQUITY (OR SHAREHOLDERS’
EQUITY) 36,242,953,386.97 33,888,504,086.43
Legal Representative: Financial controller: Head of the financial department:
Chen Hongguo Dong Lianming Liu Jun
— 17 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
3. Consolidated income statement for the reporting period
Prepared by: Shandong Chenming Paper Holdings Limited
Unit: RMB
Amounts for the Amounts for the
Item reporting period prior period
I. Total revenue 4,957,710,823.44 5,025,294,991.60
Including: Revenue 4,957,710,823.44 5,025,294,991.60
Interest income
Earned premium
Handling charges and
commission income
II. Total operating costs 4,941,446,219.63 4,870,088,378.83
Including: Operating costs 3,984,381,243.53 4,038,682,108.57
Interest expenses
Handling charges and
commission expenses
Surrenders
Net claims paid
Net change in insurance
contract reserves
Policyholder dividend
expenses
Expenses for reinsurance
accepted
Business taxes and
surcharges 23,622,752.75 24,719,816.87
Sales and distribution
expenses 303,393,591.78 270,152,438.87
General and
administrative expenses 304,683,878.41 309,492,033.30
Finance expenses 319,671,104.57 231,269,441.78
Loss on impairment of
assets 5,693,648.59 -4,227,460.57
Plus: Gain on change in fair
value (“-” denotes loss)
Investment income (“-”
denotes loss) 24,407,767.41 130,399.74
Including: Investment income from
associates and joint
ventures -1,072,793.04 -440,786.76
Foreign exchange gains
(“-” denotes loss)
— 18 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item reporting period prior period
III. Operating profit (“-” denotes loss) 40,672,371.22 155,337,012.51
Plus: Non-operating income 70,531,646.73 96,133,155.39
Less: Non-operating expenses 316,270.45 23,281,361.85
Including: Loss on disposal of
non-current assets 856,245.58 21,879,442.43
IV. Total profit (“-” denotes total loss) 110,887,747.50 228,188,806.05
Less: Income tax expenses 22,059,260.28 35,105,651.56
V. Net profit (“-” denotes net loss) 88,828,487.22 193,083,154.49
Including: Net profit achieved by
the acquiree before
business merger
Net profit attributable to
shareholders of the
Company 98,736,396.40 196,585,533.20
Minority interest -9,907,909.18 -3,502,378.71
VI. Earnings per share: — —
(I) Basic earnings per share 0.06 0.10
(II) Diluted earnings per share 0.06 0.10
VII. Other comprehensive income 5,074,774.50 1,848,169.03
Including: Other comprehensive
income not to be
reclassified into profit or
loss in subsequent
periods
Other comprehensive income to be
reclassified into profit or loss after
meeting certain criteria in
subsequent periods 5,074,774.50 1,848,169.03
VIII. Total comprehensive income 93,903,261.72 194,931,323.52
Total comprehensive income
attributable to shareholders of the
Company 103,802,466.90 198,433,702.23
Total comprehensive income
attributable to minority interest -9,899,205.18 -3,502,378.71
Legal Representative: Financial controller: Head of the financial department:
Chen Hongguo Dong Lianming Liu Jun
— 19 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
4. Income statement of the Company for the reporting period
Prepared by: Shandong Chenming Paper Holdings Limited
Unit: RMB
Amounts for the Amounts for the
Item reporting period prior period
I. Revenue 2,090,570,411.61 2,370,392,217.26
Less: Operating costs 1,690,111,970.35 1,864,167,775.77
Business taxes and
surcharges 11,091,563.47 9,922,947.86
Sales and distribution
expenses 75,639,274.24 70,574,883.94
General and
administrative
expenses 134,735,705.98 147,351,141.86
Finance expenses 256,461,350.38 136,913,959.08
Loss on impairment of
assets 2,603,282.18 4,501,623.46
Plus: Gain on change
in fair value (“-”
denotes loss)
Investment income (“-”
denotes loss) 726,068,888.89 130,399.74
Including: Investment
income from
associates and joint
ventures 74,995.11 -440,786.76
II. Operating profit (“-” denotes loss) 645,996,153.90 137,090,285.03
Plus: Non-operating income 20,615,908.61 1,578,011.65
Less: Non-operating expenses 1,822,855.67 6,270,701.36
Including: Loss on disposal of
non-current assets 822,855.67 5,270,701.36
III. Total profit (“-” denotes total loss) 664,789,206.84 132,397,595.32
Less: Income tax expenses -10,305,116.56 14,687,750.26
IV. Net profit (“-” denotes net loss) 675,094,323.40 117,709,845.06
V. Earnings per share: — —
(I) Basic earnings per share
(II) Diluted earnings per share
— 20 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item reporting period prior period
VI. Other comprehensive income
Including: Other comprehensive
income not to be
reclassified into profit
or loss in subsequent
periods
Other comprehensive income to be
reclassified into profit or loss
after meeting certain criteria in
subsequent periods
VII. Total comprehensive income 675,094,323.40 117,709,845.06
Legal Representative: Financial controller: Head of the financial department:
Chen Hongguo Dong Lianming Liu Jun
5. Consolidated Income Statement from the beginning of the year to the end
of the reporting period
Prepared by: Shandong Chenming Paper Holdings Limited
Unit: RMB
Amounts for the Amounts for the
Item reporting period prior period
I. Total revenue 14,039,731,402.45 15,053,196,350.03
Including: Revenue 14,039,731,402.45 15,053,196,350.03
Interest income
Earned premium
Handling charges and
commission income
II. Total operating costs 14,023,599,432.69 14,815,085,090.52
Including: Operating costs 11,363,379,871.84 12,290,031,922.92
Interest expenses
Handling charges and
commission expenses
Surrenders
Net claims paid
Net change in insurance
contract reserves
— 21 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item reporting period prior period
Policyholder dividend
expenses
Expenses for reinsurance
accepted
Business taxes and
surcharges 59,123,220.53 63,687,324.86
Sales and distribution
expenses 827,987,403.28 840,551,181.32
General and
administrative expenses 804,817,760.04 912,015,987.28
Finance expenses 946,282,893.04 717,678,559.57
Loss on impairment of
assets 22,008,283.96 -8,879,885.44
Plus: Gain on change in fair value
(“-” denotes loss) 967,670.22 9,229,042.51
Investment income (“-”
denotes loss) 45,626,015.23 5,313,584.84
Including: Investment income
from associates and joint
ventures -2,962,964.04 -19,749.84
Foreign exchange gains (“-”
denotes loss)
III. Operating profit (“-” denotes loss) 62,725,655.21 252,653,886.86
Plus: Non-operating income 324,243,019.51 432,438,516.55
Less: Non-operating expenses 14,344,376.32 62,821,989.23
Including: Loss on disposal of
non-current assets 9,620,919.84 57,750,225.02
IV. Total profit (“-” denotes total loss) 372,624,298.40 622,270,414.18
Less: Income tax expenses 56,092,305.40 117,976,857.82
V. Net profit (“-” denotes net loss) 316,531,993.00 504,293,556.36
Including: Net profit achieved by
the acquiree before
business merger
Net profit attributable to shareholders
of the Company 341,197,491.42 529,995,044.93
Minority interest -24,665,498.42 -25,701,488.57
— 22 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item reporting period prior period
VI. Earnings per share: — —
(I) Basic earnings per share 0.18 0.26
(II) Diluted earnings per share 0.18 0.26
VII. Other comprehensive income 2,768,996.58 9,957,035.59
Including: Other comprehensive
income not to be
reclassified into profit or
loss in subsequent
periods
Other comprehensive income to be
reclassified into profit or loss after
meeting certain criteria in
subsequent periods 2,768,996.58 9,957,035.59
VIII. Total comprehensive income 319,300,989.58 514,250,591.95
Total comprehensive income
attributable to shareholders of the
Company 343,966,488.00 539,952,080.52
Total comprehensive income
attributable to minority interest -24,665,498.42 -25,701,488.57
Legal Representative: Financial controller: Head of the financial department:
Chen Hongguo Dong Lianming Liu Jun
— 23 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
6. Income statement of the Company from the beginning of the year to the
end of the reporting period
Prepared by: Shandong Chenming Paper Holdings Limited
Unit: RMB
Amounts for the Amounts for the
Item reporting period prior period
I. Revenue 6,087,362,415.99 7,287,424,740.19
Less: Operating costs 4,847,384,999.67 5,840,720,052.93
Business taxes and
surcharges 27,340,586.96 31,366,032.17
Sales and distribution
expenses 217,177,078.18 221,752,445.18
General and
administrative expenses 398,140,062.77 437,747,019.01
Finance expenses 675,547,032.46 391,759,346.57
Loss on impairment of
assets 3,134,745.48 8,203,458.76
Plus: Gain on change in fair
value (“-” denotes loss)
Investment income (“-”
denotes loss) 954,100,926.82 255,843,242.05
Including: Investment
income from associates
and joint ventures 343.23 -19,749.84
II. Operating profit (“-” denotes loss) 872,738,837.29 611,719,627.62
Plus: Non-operating income 73,241,851.40 95,672,454.19
Less: Non-operating expenses 4,459,000.11 35,234,864.93
Including: Loss on
disposal of
non-current
assets 1,030,707.27 33,734,864.93
III. Total profit (“-” denotes total loss) 941,521,688.58 672,157,216.88
Less: Income tax expenses -9,419,183.74 57,444,457.42
IV. Net profit (“-” denotes net loss) 950,940,872.32 614,712,759.46
V. Earnings per share: — —
(I) Basic earnings per share
(II) Diluted earnings per share
— 24 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item reporting period prior period
VI. Other comprehensive income
Including: Other comprehensive
income not to be
reclassified into profit or
loss in subsequent
periods
Other comprehensive income to be
reclassified into profit or loss after
meeting certain criteria in
subsequent periods
VII. Total comprehensive income 950,940,872.32 614,712,759.46
Legal Representative:Financial controller:Head of the financial department:
Chen Hongguo Dong Lianming Liu Jun
7. Consolidated cash flow statement from the beginning of the year to the
end of the reporting period
Prepared by: Shandong Chenming Paper Holdings Limited
Unit: RMB
Amounts for the Amounts for the
Item reporting period prior period
I. Cash flows from operating activities:
Cash received from sales of goods
and rendering of services 14,904,943,600.80 17,933,539,107.12
Net increase in customer bank
deposits and due to banks and
other financial institutions
Net increase in borrowings from the
central bank
Net increase in placements from
other financial institutions
Cash received from premiums under
original insurance contracts
Net cash received from reinsurance
business
Net increase in deposits from
policyholders
— 25 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item reporting period prior period
Net increase from disposal of
held-for-trading financial assets
Cash received from interest, handling
charges and commissions
Net increase in placements from
banks and other financial
institutions
Net capital increase of repurchase
business
Tax rebates received 10,401,960.37 18,840,149.03
Cash received relating to other
operating activities 303,995,832.41 295,449,720.11
Subtotal of cash inflows from operating
activities 15,219,341,393.58 18,247,828,976.26
Cash paid for goods and services 11,659,833,146.60 15,228,571,738.98
Net increase in loans and advances to
customers
Net increase in deposits with the
central bank and other financial
institutions
Cash paid for claims under original
insurance contracts
Cash paid for interest, handling
charges and commission
Cash paid for policyholder dividend
Cash paid to and for employees 636,888,268.64 601,968,027.11
Payments of taxes and surcharges 679,879,465.81 771,231,021.58
Cash paid relating to other operating
activities 897,107,342.31 601,132,834.41
Subtotal of cash outflows from operating
activities 13,873,708,223.36 17,202,903,622.08
Net cash flows from operating activities 1,345,633,170.22 1,044,925,354.18
— 26 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item reporting period prior period
II. Cash flows from investment
activities:
Cash received from investments
Cash received from investment
income
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets 38,059,229.00 256,077,895.62
Net cash received from disposal of
subsidiaries and other business
units 75,035,211.41 485,238,686.50
Cash received relating to other
investment activities 292,669,675.00 365,961,341.00
Subtotal of cash inflows from investment
activities 405,764,115.41 1,107,277,923.12
Cash paid for purchase of fixed
assets, intangible assets and other
long-term assets 1,718,400,482.83 2,783,392,365.32
Cash paid on investments 3,000,000.00
Net increase in pledged loans
Net cash paid for acquisition of
subsidiaries and other business
units
Cash paid relating to other
investment activities 1,000,000,000.00
Subtotal of cash outflows from investment
activities 2,721,400,482.83 2,783,392,365.32
Net cash flows from investment activities -2,315,636,367.42 -1,676,114,442.20
III. Cash flows from financing activities:
Cash received from capital
contribution 66,000,000.00
Including: cash received from
minority interest contribution to
subsidiaries 66,000,000.00
Cash received from borrowings 18,618,568,208.40 15,408,384,710.10
— 27 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item reporting period prior period
Cash received from bonds issue
Cash received relating to other
financing activities 746,800,830.12 3,283,300,000.00
Subtotal of cash inflows from financing
activities 19,365,369,038.52 18,757,684,710.10
Cash repayments on borrowing 14,065,961,967.04 16,935,564,741.60
Cash paid for dividend and profit
distribution or interest payment 1,517,548,355.93 1,041,755,837.56
Including: dividend and profit paid to
minority interest by subsidiaries 3,251,866.09 12,801,533.50
Cash paid relating to other financing
activities 1,925,771,907.00 1,901,310,212.95
Subtotal of cash outflows from financing
activities 17,509,282,229.97 19,878,630,792.11
Net cash flows from financing activities 1,856,086,808.55 -1,120,946,082.01
IV. Effect of changes in foreign
exchange rate on cash and cash
equivalents -15,067,277.57 12,146,997.98
V. Net increase in cash and cash
equivalents 871,016,333.78 -1,739,988,172.05
Plus: Balance of cash and cash
equivalents as at the
beginning of the period 726,532,928.96 2,347,264,111.98
VI. Balance of cash and cash equivalents
as at the end of the period 1,597,549,262.74 607,275,939.93
Legal Representative: Financial controller: Head of the financial department:
Chen Hongguo Dong Lianming Liu Jun
— 28 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
8. Cash flow statement of the Company from the beginning of the year to
the end of the reporting period
Prepared by: Shandong Chenming Paper Holdings Limited
Unit: RMB
Amounts for the Amounts for the
Item reporting period prior period
I. Cash flows from operating activities:
Cash received from sales of goods
and rendering of services 5,371,474,096.02 7,883,683,567.23
Tax rebates received
Cash received relating to other
operating activities 110,879,238.34 162,953,925.37
Subtotal of cash inflows from operating
activities 5,482,353,334.36 8,046,637,492.60
Cash paid for goods and services 2,488,364,932.95 9,439,155,745.46
Cash paid to and for employees 299,515,071.91 241,038,926.17
Payments of taxes and surcharges 244,244,379.01 365,280,833.76
Cash paid relating to other operating
activities 152,112,593.05 109,562,868.79
Subtotal of cash outflows from operating
activities 3,184,236,976.92 10,155,038,374.18
Net cash flows from operating activities 2,298,116,357.44 -2,108,400,881.58
II. Cash flows from investment
activities:
Cash received from investments 1,000,000,000.00 500,000,000.00
Cash received from investment
income 64,127,102.21 42,253,060.69
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets 17,069.00 88,504.24
Net cash received from disposal of
subsidiaries and other business
units 235,238,686.50
Cash received relating to other
investment activities
Subtotal of cash inflows from investment
activities 1,064,144,171.21 777,580,251.43
Cash paid for purchase of fixed
assets, intangible assets and other
long-term assets 115,959,072.50 65,385,305.23
— 29 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
Amounts for the Amounts for the
Item reporting period prior period
Cash paid on investments 2,748,929,592.00 80,813,235.00
Net cash paid for acquisition of
subsidiaries and other business
units
Cash paid relating to other
investment activities 1,000,000,000.00
Subtotal of cash outflows from investment
activities 3,864,888,664.50 146,198,540.23
Net cash flows from investment activities -2,800,744,493.29 631,381,711.20
III. Cash flows from financing activities:
Cash received from capital
contribution
Cash received from borrowings 10,978,803,329.35 9,366,866,396.82
Cash received from bonds issue 3,279,300,000.00
Cash received relating to other
financing activities 884,960,591.31
Subtotal of cash inflows from financing
activities 11,863,763,920.66 12,646,166,396.82
Cash repayments on borrowing 8,187,049,989.79 10,653,538,623.36
Cash paid for dividend and profit
distribution or interest payment 1,085,259,221.76 436,205,012.51
Cash paid relating to other financing
activities 1,904,400,000.00 1,858,777,761.06
Subtotal of cash outflows from financing
activities 11,176,709,211.55 12,948,521,396.93
Net cash flows from financing activities 687,054,709.11 -302,355,000.11
IV. Effect of changes in foreign
exchange rate on cash and cash
equivalents -9,697,907.74 1,193,190.99
V. Net increase in cash and cash
equivalents 174,728,665.52 -1,778,180,979.50
Plus: Balance of cash and cash
equivalents as at the
beginning of the period 64,392,029.09 1,786,622,854.08
VI. Balance of cash and cash equivalents
as at the end of the period 239,120,694.61 8,441,874.58
Legal Representative: Financial controller: Head of the financial department:
Chen Hongguo Dong Lianming Liu Jun
— 30 —
Report for the Third Quarter of 2014 of Shandong Chenming Paper Holdings Limited
II. Auditors’ Report
Has the third quarter report already been audited yet?
□ Yes √ No
The third quarter report of the Company is unaudited.
Shandong Chenming Paper Holdings Limited
27 October 2014
— 31 —