Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Stock code：000488 200488 Stock abbreviation：Chenming Paper Chenming B Announcement No.:2015-018
SHANDONG CHENMING PAPER HOLDINGS LIMITED
2015 First Quarter Report
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Report for the First Quarter of 2015 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.
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
II Major financial data and change of shareholders
I. Major accounting data and financial indicators
Retrospective adjustment to or restatement of the accounting data for prior years
by the Company due to change of accounting policies and correction of
accounting errors
□ Yes √No
Increase/decrease
compared to the
corresponding
This reporting Corresponding period of the
period period of prior year prior year
Revenue (RMB) 4,456,654,640.64 4,078,069,314.47 9.28%
Net profit attributable
to shareholders of the
Company (RMB) 96,137,359.80 81,273,928.14 18.29%
Net profit after
extraordinary gains or
losses attributable to
shareholders of the
Company (RMB) 47,531,100.97 -48,792,027.97 197.42%
Net cash flows from
operating activities
(RMB) -524,893,745.34 631,844,125.85 -183.07%
Basic earnings per
share (RMB per
share) 0.05 0.04 25.00%
Diluted earnings per
share (RMB per
share) 0.05 0.04 25.00%
Rate of return on net
assets on weighted
average basis 0.69% 0.58% 0.11%
Increase/decrease as
at the end of the
reporting period
As at the end of the As at the end compared to the end
reporting period of the prior year of the prior year
Total assets (RMB) 59,632,819,205.30 56,822,026,545.21 4.95%
Net assets attributable
to shareholders of the
Company (RMB) 14,005,559,500.95 13,917,343,301.15 0.63%
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Items and amounts of extraordinary gains or losses
√ Applicable □Not applicable
Unit: RMB
Am ounts 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) 3,357,994.26
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 26,832,002.10
Payment for use of funds from
non-financial institutions accounted
for in profit or loss for the current
period 25,000,000.00
Non-operating gains and losses other
than the above items 2,154,756.87
Less:Effect of income tax 8,763,655.65
Effect of minority interest (after tax) -25,161.25
Total 48,606,258.83 —
Notes for the Companys 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
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
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 the shareholding of
the top ten shareholders of ordinary shares as at the end of the reporting
period
Unit: share
Total number of shareholders of ordinary shares as 121,187 holders, of which 94,470 were holders of A shares, 26,175
at the end of the reporting period holders of B shares and 542 holders of H shares.
Shareholding of the top ten shareholders of ordinary shares
Share pledged or
Number of locked-up
Nature of Percentage of Number of Restricted Status of
Name of shareholders shareholders shareholding shares held shares held shares Number
HKSCC NOMINEES Overseas legal 18.11% 350,642,500 0 0
LIMITED person
SHOUGUANG CHENMING State-owned legal 15.13% 293,003,657 0 Pledged 146,500,000
HOLDINGS COMPANY person
LIMITED
PLATINUM ASIA FUND Overseas legal 0.83% 16,165,052 0 0
person
RONGTONG NEW BLUE Others 0.77% 15,000,050 0 0
CHIP SECURITIES
INVESTMENT FUND
BBH A/C VANGUARD Overseas legal 0.54% 10,417,538 0 0
EMERGING MARKETS person
STOCK INDEX FUND
JIN Xing Domestic natural 0.46% 8,899,300 0 0
person
XIAMEN INTERNATIONAL Others 0.39% 7,620,132 0 0
TRUST CO., LTD. —
XIAMEN TRUST —
TIANCHEN NO. 1 NEW
STRUCTURED
SECURITIES
INVESTMENT
ASSEMBLED FUND
TRUST PLAN
CHINA CONSTRUCTION Others 0.33% 6,447,300 0 0
BANK — BANK OF
COMMUNICATIONS
SCHRODERS THEME
SELECTED DYNAMIC
ASSET ALLOCATION
MIXED TYPE FUND
CHEN Hongguo Domestic natural 0.33% 6,434,527 0 0
person
LSV EMERGING MARKETS Overseas legal 0.32% 6,102,800 0 0
EQUITY FUND, L.P. person
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Shareholdings of the top ten shareholders of non-restricted ordinary shares
Number of
non-restricted
ordinary shares Share class
Name of shareholders held Share class Number
HKSCC NOMINEES LIMITED 350,642,500 Overseas listed 350,642,500
foreign shares
SHOUGUANG CHENMING HOLDINGS COMPANY 293,003,657 RMB ordinary 293,003,657
LIMITED shares
PLATINUM ASIA FUND 16,165,052 Domestic listed 16,165,052
foreign shares
RONGTONG NEW BLUE CHIP SECURITIES 15,000,050 RMB ordinary 15,000,050
INVESTMENT FUND shares
BBH A/C VANGUARD EMERGING MARKETS STOCK 10,417,538 Domestic listed 10,417,538
INDEX FUND foreign shares
JIN Xing 8,899,300 RMB ordinary 1,860,500
shares
Domestic listed 7,038,800
foreign shares
XIAMEN INTERNATIONAL TRUST CO., LTD. — 7,620,132 RMB ordinary 7,620,132
XIAMEN TRUST — TIANCHEN NO. 1 NEW shares
STRUCTURED SECURITIES INVESTMENT
ASSEMBLED FUND TRUST PLAN
CHINA CONSTRUCTION BANK — BANK OF 6,447,300 RMB ordinary 6,447,300
COMMUNICATIONS SCHRODERS THEME SELECTED shares
DYNAMIC ASSET ALLOCATION MIXED TYPE FUND
CHEN Hongguo 6,434,527 RMB ordinary 6,434,527
shares
LSV EMERGING MARKETS EQUITY FUND, L.P. 6,102,800 Domestic listed 6,102,800
foreign shares
Connected relationship or connected party relationship Shouguang Chenming Holdings Company, a state-owned legal
among the above shareholders person shareholder, is not connected with any of 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.
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.
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.
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
III Material matters
I. Details and reasons for changes of major accounting statement items and
financial indicators during the reporting period
√ Applicable □ Not Applicable
(I) Analysis of the assets and liabilities of the Company
Unit: RMB
Reasons
Item 31 March 2015 31 December 2014 Change for change
Prepayments 3,336,802,106.47 1,838,017,454.90 81.54% (1)
Long-term receivables 1,810,797,634.25 1,420,598,667.99 27.47% (2)
Available-for-sale
financial assets 109,000,000.00 73,000,000.00 49.32% (3)
Bills payable 2,072,049,789.77 1,598,110,792.85 29.66% (4)
Interest payable 270,444,257.14 150,047,305.50 80.24% (5)
Explanation of the reasons leading to the major changes:
(1) Prepayments increased by 81.54% mainly due to an increase in prepayments
for raw materials by the Company and the new financial leasing business of
Financial Leasing Company, a sub-subsidiary of the Company.
(2) Long-term receivables increased by 27.47% mainly due to the new financial
leasing business of Financial Leasing Company, a sub-subsidiary of the
Company.
(3) Available-for-sale financial assets increased by 49.32% mainly due to
investment in Shanghai Leadbank Asset Management Co., Ltd. by Financial
Leasing Company.
(4) Bills payable increased by 29.66% mainly due to an increase in payment for
goods by bills by the Company.
(5) Interest payable increased by 80.24% mainly due to the provision for
interest on corporate bonds and medium-term notes by the Company.
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Report for the First Quarter of 2015 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
Item January - March 2015 January - March 2014 Change for change
Business taxes and
surcharges 20,088,579.62 12,633,196.68 59.01% (1)
General and
administrative
expenses 305,525,329.60 242,648,227.81 25.91% (2)
Loss on impairment of
assets -69,943.68 -9,028,147.99 99.23% (3)
Investment income 23,610,110.99 -3,377,138.33 799.12% (4)
Non-operating income 37,469,403.87 176,033,614.08 -78.71% (5)
Non-operating
expenses 935,152.21 7,932,048.84 -88.21% (6)
Income tax expenses 67,828,016.18 21,288,605.27 218.61% (7)
Explanation of the reasons leading to the major changes:
(1) Business taxes and surcharges increased by 59.01% mainly due to the new
financial leasing business of Financial Leasing Company, a sub-subsidiary
of the Company.
(2) General and administrative expenses increased by 25.91% mainly due to the
increase in research and development investment of Meilun Paper and
Zhanjiang Chenming, both subsidiaries of the Company.
(3) Loss on impairment of assets increased by 99.23% mainly due to a lower
decrease of accounts receivable as compared to last year.
(4) Investment income increased by 799.12% mainly due to the loss on disposal
of Shandong Chenming Xinli Power Co., Ltd. incurred by Chenming Power
last year.
(5) Non-operating income decreased by 78.71% mainly due to the gain on
disposal of intangible assets by Jiangxi Chenming, a subsidiary of the
Company, last year.
(6) Non-operating expenses decreased by 88.21% mainly due to the decrease in
loss on disposal of non-current assets by the Company.
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
(7) Income tax expenses increased by 218.61%, mainly due to the higher
profitability level of the Company as compared to last year.
(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 -524,893,745.34 631,844,125.85 -183.07% (1)
Net cash flows from
investing activities -871,978,295.42 -722,180,627.88 -20.74% (2)
Net cash flows from
financial activities 1,430,099,524.47 225,246,123.67 534.91% (3)
Explanation of the reasons leading to the major changes:
(1) Net cash flows from operating activities decreased by 183.07% mainly due
to the new financial leasing business of Financial Leasing Company, a sub-
subsidiary of the Company.
(2) Net cash flows from investing activities decreased by 20.74% mainly due to
the acquisition of fixed assets and intangible assets by the Company for its
projects.
(3) Net cash flows from financial activities increased by 534.91% mainly due to
an increase in borrowings as a result of project investment and the new
financial leasing business of Financial Leasing Company.
II. Progress in respect to material matters and analysis of the related effects
and solutions
√ Applicable □ Not Applicable
Date of
Material matter disclosure Temporary access to disclosure materials
Capital increase of Shandong 27 March 2015 http://www.cninfo.com.cn, announcement number: 2015-009.
Chenming Financial
Leasing Co., Ltd.
Non-public offer of 3 March 2015 http://www.cninfo.com.cn, announcement number: 2015-006.
preference shares 27 March 2015 http://www.cninfo.com.cn, the annual report for 2014.
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
III. Undertakings made by the Company and shareholders interested in 5%
or m ore of the shares of the Company made in the reporting period or
subsisting to the reporting period
√ Applicable □ Not Applicable
Party Particulars on
involved in Undertaking 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) Shouguang Chenming 22 May 2008 During the Strictly
initial public offering Chenming Holdings Co., Ltd period when implemented
or refinancing Holdings (“Shouguang Chenming Chenming
Co., Ltd. Holdings”) shall not engage, Holdings was
whether solely, jointly, or by the major
representing itself or any shareholder of
other persons or companies, the Company
and shall not procure its
associates (as defined in The
Listing Rules of Hong Kong
Stock Exchange) to engage,
in any business which
competes with the business
of the Company and its
subsidiaries (“Chenming
Group” or “we”) directly or
indirectly, in any country
and region which our
business exists (or any part
of the world if in any form
of electronics business), or
in any business that directly
or indirectly competes with
Chenming Groups 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
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Party Particulars on
involved in Undertaking the
Undertaking undertaking Details of undertaking date Term performance
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.
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Party Particulars on
involved in Undertaking the
Undertaking undertaking Details of undertaking date Term performance
Shouguang (1) According to the plan on 16 January 2008 During the Strictly
Chenming defective properties of the period when implemented
Holdings Company, Shouguang Chenming
Co., Ltd. Chenming Holdings Co., Ltd Holdings was
(“Shouguang Chenming the major
Holdings”) has guaranteed shareholder of
and undertaken that: the Company
according to the application
of the Company, for
defective property(ies)
owned by the Company and
its holding subsidiary
company which situated in
the administrative area of
Shouguang city, Shouguang
Chenming Holdings will
purchase it(them) and have
it(them) being transferred to
itself pursuant to the law in
accordance with the result of
the related asset valuation if
the Company decides to
transfer and dispose of
it(them) and there is no
other transferee; (2) before
the Company transfers and
disposes of the defective
properties pursuant to the
law, if the Company suffers
any economic losses due to
the defects of the title
(including but not limited to
damages, penalties and
relocation costs), Shouguang
Chenming Holdings will bear
such economic losses; (3)
during the regulatory process
taken to the defective
properties of buildings and
land of subsidiaries of the
Company situated outside the
local areas (outside the
administrative area of
Shouguang city), the
economic losses such as
penalties or relocation costs
imposed by competent
administrative authorities to
be borne by the subsidiaries
arising from defects of
insufficient title documents
shall be paid pursuant to the
law by Shouguang Chenming
Holdings after verification.
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Party Particulars on
involved in Undertaking the
Undertaking undertaking Details of undertaking date Term performance
Other undertakings made
to minority
shareholders of the
Company
Does the undertaking Yes
performed timely?
IV. Estimate of the operating results for January - June 2015
Warning of projection on cumulative net profit for the period from the beginning
of the year to the end of the next reporting period to be at a loss or expected to
have material changes as compared to the corresponding period of prior year and
its explanation
□ Applicable √ Not applicable
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
V. Registration report on reception of research investigations,
communications and interviews during the reporting period
√Applicable □ Not Applicable
Main topics of
discussion and
Date of Place of Manner of Class of parties Parties information
reception reception reception accommodated accommodated provided
13 January 2015 The Companys On-site research Institution Guotai Junan Recent production
conference room investigation Securities Co. Ltd. and operation of the
Company and
development of the
industry
13 January 2015 The Companys On-site research Institution 27 fund companies Recent production
conference room investigation including Shenyin and operation of the
Wanguo, BOC Company and
Schroder Fund, development of the
HuaAn Funds, GTJA industry
Allianz Funds,
Fullgoal Fund, Zhong
Ou AMC, Lion Fund,
CPIC, Harfor Fund,
Caitong Securities,
Franklin Templeton
Sealand Fund,
Baoying Fund,
Caitong Fund,
First-Trust Fund,
Tongben Investment,
Oriental Capital,
Minsheng Royal
Fund, HFT
Investment, China
Life Asset
Management, Yongjin
Asset Management,
CICC, ICBCCS,
CITIC PE, China
AMC, Minsen
Investment and
others
28 January 2015 The Companys On-site research Institution Brilliance Asset Recent production
conference room investigation Management Limited and operation of the
Company and
development of the
industry
Shandong Chenming Paper Holdings Limited
27 April 2015
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