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晨 鸣B:2020年第一季度报告全文(英文版)2020-04-21  

						                  Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited




SHANDONG CHENMING PAPER HOLDINGS LIMITED

            2020 First Quarterly Report




                    April 2020
                                      Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited

I.   Important Notice

     The board of directors (the “Board”), the supervisory committee (the “Supervisory
     Committee”), and the directors (the “Directors”), supervisors (the “Supervisors”) and
     senior management (the “Senior Management”) of the Company hereby warrant that the
     truthfulness, accuracy and completeness of this quarterly report which does not contain
     false representations, misleading statements or material omissions, and are jointly and
     severally responsible for the liabilities of the Company.

     All Directors were present at the Board meeting to consider and approve this quarterly
     report.

     Chen Hongguo, the head of the Company, Dong Lianming, the head in charge of
     accounting, and Zhang Bo, the head of the accounting department (Accounting Officer),
     declare that they warrant the truthfulness, accuracy and completeness of the financial
     statements in this quarterly report.




                                                1
                                                Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited


II.   General Information of the Company

I.    Major accounting data and financial indicators

      Retrospective adjustment to or restatement of the accounting data for prior years by the
      Company

      □ Yes √ No

                                                                                             Increase/decrease
                                                    The reporting          The corresponding compared to the
                                                       period                period of the     corresponding
                                                                               prior year    period of the prior
                                                                                                    year
Revenue (RMB)                                        6,085,376,805.28          6,159,836,579.24                     -1.21%
Net profit attributable to shareholders of the
Company (RMB)                                          202,790,856.25              38,223,111.21                  430.55%
Net profit after extraordinary gains or losses
attributable to shareholders of the Company            143,993,251.71             -23,652,252.85                  708.79%
(RMB)
Net cash flows from operating activities
(RMB)                                                  655,581,522.20          1,424,685,047.04                    -53.98%
Basic earnings per share (RMB per share)                           0.019                   -0.037                 151.35%
Diluted earnings per share (RMB per share)                         0.019                   -0.037                 151.35%
                                                                                              Increase of 0.93
Rate of return on weighted average net assets                    0.32%                    -0.61%
                                                                                              percentage point
                                                                                          Increase/decrease
                                                                                         as at the end of the
                                                   As at the end of As at the end of the       reporting
                                                    the reporting       prior year       period compared to
                                                       period                                  the end of
                                                                                            the prior year
Total assets (RMB)                                 96,849,000,201.11         97,958,909,935.15                      -1.13%
Net assets attributable to shareholders of the
                                                   25,164,443,617.31         25,169,743,863.75                      -0.02%
Company (RMB)

Explanation:

Net profit attributable to shareholders of the Company does not exclude the effect of the interest
of perpetual bonds and the dividends of preference shares paid and declared to be paid. When
calculating financial indicators such as earnings per share and the rate of return on weighted
average net assets, the interest for perpetual bonds from 1 January 2020 to 31 March 2020 of
RMB48,367,123.29 and the dividend on preference shares paid in 2020 of RMB98,100,000 are
deducted.
                                                           2
                                          Report for the First Quarter of 2020 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                 Note
                             Item
                                                                       to the end of the
                                                                       reporting period
Profit or loss from disposal of non-current assets
                                                                                   -4,496,557.63
(including write-off of asset impairment provision)

Government grants(except for the government grants closely
related to thenormal operation of the company and granted
constantly at a fixed amount or quantity in accordance with                       86,170,502.36
acertain standard based on state policies) accounted for in
profit or loss for the current period

Non-operating income and expenses other than the above
                                                                                      961,050.14
items
Less: Effect of income tax                                                        23,489,605.82
Effect of minority interest (after tax)                                               347,784.51
                             Total                                                58,797,604.54              –

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.




                                                     3
                                                     Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited


II.    Total number of shareholders and shareholdings of the top ten shareholders as at the
       end of the reporting period

1.     Total number of shareholders of ordinary shares and shareholders of preference shares
       with restored voting rights and shareholdings of the top ten shareholders

                                                                                                                        Unit: share

                                     117,887, of which 97,790 were
Total number of shareholders of                                           Total number of shareholders of preference
                                     holders of A shares, 19,731 were
ordinary shares as at the end of the
                                     holders of B shares and 366 were
                                                                          shares with restored voting right as at the              0
reporting period                                                          end of the reporting period (if any)
                                     holders of H shares

                                              Shareholding of top ten shareholders

                                                                                                              Share pledged or
                                                                                                Number of         locked-up
               Name of shareholders
                                                      Nature of         Percentage of Number of restricted
                                                     shareholders       shareholding shares held shares
                                                                                                           Status of
                                                                                                   held                Number
                                                                                                            shares

                                                   State-owned legal
CHENMING HOLDINGS COMPANY LIMITED                                            15.33% 445,396,128            0 Pledged 298,970,000
                                                   person
                                                   Overseas legal
HKSCC NOMINEES LIMITED                                                       12.85% 373,355,875            0
                                                   person
CHENMING HOLDINGS (HONG KONG)                      Overseas legal
                                                                             12.54% 364,131,563            0
LIMITED                                            person
CENTRAL HUIJIN ASSET MANAGEMENT                    State-owned legal
                                                                               2.07% 60,206,850            0
LTD.                                               person
HONG KONG SECURITIES CLEARING                      Overseas legal
                                                                               0.63% 18,232,012            0
COMPANY LIMITED                                    person
VANGUARD EMERGING MARKETS STOCK                    Overseas legal
                                                                               0.45% 13,176,446            0
INDEX FUND                                         person
VANGUARD TOTAL INTERNATIONAL                       Overseas legal
                                                                               0.45% 13,139,970            0
STOCK INDEX FUND                                   person
AGRICULTURAL BANK OF CHINA LIMITED –
                                      Others                                   0.42% 12,304,250            0
CHINA CSI 500 ETF
                                      Domestic nature
Chen Suiqiang                                                                  0.42% 12,270,300            0
                                      person
                                      Domestic nature
Chen Hongguo                                                                   0.38% 11,080,044 8,310,033
                                      person
                                Shareholdings of the top ten shareholders of non-restricted shares


                                                                       Number of non-                  Class of shares
                                                                    restricted shares held
                      Name of shareholders
                                                                                               Class of shares           Number

CHENMING HOLDINGS COMPANY LIMITED                                             445,396,128 RMB ordinary shares            445,396,128
                                                                                          Overseas listed foreign
HKSCC NOMINEES LIMITED                                                        373,355,875                                373,355,875
                                                                                          shares
                                                                                          Domestic listed foreign
                                                                                                                         210,717,563
                                                                                          shares
CHENMING HOLDINGS (HONG KONG) LIMITED                                         364,131,563
                                                                                          Domestic listed foreign
                                                                                                                         153,414,000
                                                                                          shares
CENTRAL HUIJIN ASSET MANAGEMENT LTD.                                           60,206,850 RMB ordinary shares             60,206,850


                                                                4
                                                       Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited


HONG KONG SECURITIES CLEARING COMPANY LIMITED                                  18,232,012 RMB ordinary shares            18,232,012
                                                                                          Domestic listed foreign
VANGUARD EMERGING MARKETS STOCK INDEX FUND                                     13,176,446                                13,176,446
                                                                                          shares
                                                                                          Domestic listed foreign
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND                                  13,139,970                                13,139,970
                                                                                          shares
AGRICULTURAL BANK OF CHINA LIMITED – CHINA CSI
                                                                               12,304,250 RMB ordinary shares            12,304,250
500 ETF
Chen Suiqiang                                                                  12,270,300 RMB ordinary shares            12,270,300
                                                                                            Domestic listed foreign
Jin Xing                                                                       10,210,000                                10,210,000
                                                                                            shares
                                          A shareholder, Chenming Holdings (Hong Kong) Limited, which is an overseas legal
                                          person, is a wholly-owned subsidiary of a shareholder, Chenming Holdings Company
                                          Limited, which is a state-owned legal person. A shareholder, Chen Hongguo, is the legal
Related party relationship or acting in
                                          representative, chairman and general manager of Chenming Holdings Company Limited.
concert among the above shareholders
                                          Save for the above, it is not aware that any other shareholders of tradable shares are
                                          persons acting in concert. It is also not aware that any other shareholders of tradable
                                          shares are related to each other.

                                          Chenming Holdings Company Limited held 445,396,128 RMB ordinary shares, of which
                                          402,196,128 shares were held through ordinary account and 43,200,000 shares were held
Securities margin trading of top 10       through credit guarantee securities account;
ordinary shareholders, if any             Chen Suiqiang held 12,270,300 RMB ordinary shares, of which 0 shares were held
                                          through ordinary account and 12,270,300 shares were held through credit guarantee
                                          securities account.


Whether an agreed repurchase transaction was entered into during the reporting period by the top
10 ordinary shareholders and top 10 shareholders of non-restricted shares of the Company
□ Yes √ No

The top 10 ordinary shareholders and top 10 shareholders of non-restricted ordinary shares of the
Company did not enter into any agreed repurchase transaction during the reporting period.




                                                                  5
                                                      Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited


2.     Total number of shareholders of preference shares and shareholding of the top ten
       shareholders of preference shares
       √ Applicable □ Not applicable

                                                                                                                      Unit: share

Total number of shareholders of preference shares as at the end of the reporting period                                           8

                                  Shareholdings of the top ten shareholders of preference shares

                                                                          Percentage             Number of Share pledged or
                                                         Nature of             of     Number of restricted     locked-up
              Name of shareholders
                                                        shareholders      shareholdin shares held shares tatus of
                                                                               g                   held             Number
                                                                                                           shares
BEIJING YIBEN ZHONGXING INVESTMENT                 Domestic non-state-
                                                                              27.78% 12,500,000              0 Pledged 12,500,000
MANAGEMENT CO., LTD.                               owned legal person
BANK OF COMMUNICATIONS
INTERNATIONAL TRUST CO., LTD. – HUILI             Others                     22.44% 10,100,000              0
NO. 167 SINGLE CAPITAL TRUST
BANK OF COMMUNICATIONS
INTERNATIONAL TRUST CO., LTD. – HUILI             Others                     14.22%      6,400,000          0
NO. 136 SINGLE CAPITAL TRUST
QILU BANK CO., LTD. – QILU BANK
QUANXIN WEALTH MANAGEMENT                          Others                     13.33%      6,000,000          0
PRODUCT SERIES
                                                   Domestic non-state-
HENGFENG BANK CO., LTD.                                                       11.11%      5,000,000          0
                                                   owned legal person

SHANGHAI STATE-OWNED ASSETS                        State-owned legal
                                                                               4.44%      2,000,000          0
OPERATION CO., LTD.                                person
NCF – MINSHENG BANK – CHINA FORTUNE
INTERNATIONAL TRUST – CHINA FORTUNE
                                      Others                                   4.44%      2,000,000          0
TRUST  MIN XIN NO. 11 SINGLE CAPITAL
TRUST
SHANGHAI SHIJIE BUSINESS CONSULTING                Domestic non-state-
                                                                               2.22%      1,000,000          0
CO., LTD.                                          owned legal person

                                        The shareholders of preference shares, namely “BANK OF COMMUNICATIONS
                                        INTERNATIONAL TRUST CO., LTD. – HUILI NO. 167 SINGLE CAPITAL TRUST”
                                        and “BANK OF COMMUNICATIONS INTERNATIONAL TRUST CO., LTD. – HUILI
Related party relationship or acting in NO.136 SINGLE CAPITAL TRUST”, are persons acting in concert. Save for the above, it
concert among the above shareholders is not aware that any other shareholders of preference shares are persons acting in
                                        concert, and it is also not aware whether there is any related party relationship between
                                        the above shareholders of preference shares and the top ten shareholders of ordinary
                                        shares.




                                                                 6
                                         Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited


III   Material matters

I.    Details and reasons for changes of major financial data and financial indicators during
      the reporting period
      √ Applicable □ Not applicable

(1)   Accounts receivable financing increased by 68.72% as compared to the beginning of the year
      mainly due to the increase in the payment for goods made by bills at the end of the reporting
      period.

(2)   Construction in progress decreased by 91.03% as compared to the beginning of the year
      mainly due to the reclassification of the Huanggang Chenming Chemical pulp project during
      the reporting period.

(3)   Investment income increased by 1,124 times as compared to the corresponding period of the
      prior year mainly due to the recognised investment income from Guangdong Nanyue Bank by
      the Company during the reporting period.

(4)   Loss on impairment of assets increased by 100.2% as compared to the corresponding period
      of the prior year mainly due to receipt of confirmation letter in respect of assumption of
      expenses of the Guangdong Huirui BT project from the government during the corresponding
      period of the prior year.

(5)   Credit impairment loss increased by 397.65% as compared to the corresponding period of the
      prior year mainly due to an increase in the provision for impairment based on the receivables
      ageing made by the Company during the reporting period.

(6)   Gain on disposal of assets decreased by 367.96% as compared to the corresponding period of
      the prior year mainly due to a year-on-year increase in the loss on disposal of assets by the
      Company during the reporting period.

(7)    Net cash flows from operating activities decreased by 53.98% as compared to the
      corresponding period of the prior year mainly due to a year-on-year decrease in the expiry
      of the financial leasing business of the Company during the reporting period from the
      government.

(8)    Net cash flows from investment activities increased by 138.16% as compared to the
      corresponding period of the prior year mainly due to receipt of the equity and debt transfer
      payments for Haiming Mining by the Company during the reporting period.

(9)    Net cash flows from financing activities decreased by 2,106.14% as compared to the
      corresponding period of the prior year mainly due to greaten debt repayments during the
      reporting period resulting from the active debt reduction by the Company during the reporting
      period.




                                                   7
                                           Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited


II.    Progress in respect of material matters and analysis of the related effects and solutions
       □ Applicable   √ Not applicable

       Progress of share repurchase
       □ Applicable   √ Not applicable

       Progress of decrease in the holding of repurchased shares by way of bidding
       □ Applicable   √ Not applicable

III.    Undertakings made by parties involved in undertakings including the Company’s
       beneficial controllers, shareholders, related parties, bidders and the Company subsisting
       during the reporting period
       □ Applicable   √ Not applicable

       During the reporting period, there were no undertakings made by parties involved in
       undertakings including the Company’s beneficial controllers, shareholders, related parties,
       bidders and the Company subsisting during the reporting period.

       Estimate of the operating results for January – June 2020

       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




                                                      8
                                       Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited


V.   Security investments
     □ Applicable √ Not applicable

     The Company did not have any security investments during the reporting period.

VI. Derivatives investments
     □ Applicable √ Not applicable

     The Company did not have any derivative investments during the reporting period.

VII. Registration report on reception of research investigations, communications and
     interviews during the reporting period
     □ Applicable √ Not applicable

     No research investigations, communications and interviews of the Company occurred during
     the reporting period.

VIII. External guarantees against the rules and regulations
     □ Applicable √ Not applicable

     There was no external guarantee provided by the Company which was against rules and
     regulations during the reporting period.

IX. Appropriation of funds of the Company by the controlling shareholder and its related
    parties for non-operating purposes
     □ Applicable √ Not applicable

     There was no appropriation of funds of the Company by the controlling shareholder and its
     related parties for non-operating purposes during the reporting period.




                                                 9
                                        Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited


IV   Financial Statements

I.   Financial Statements

1.   Consolidated balance sheet

     Prepared by: Shandong Chenming Paper Holdings Limited

                                            31 March 2020

                                                                                                       Unit: RMB

                           Item                          31 March 2020                  31 December 2019
     CURRENT ASSETS:
       Monetary funds                                      17,945,064,973.73                19,306,529,473.33
       Accounts receivable                                  2,585,913,010.42                  2,525,083,311.03
       Accounts receivable financing                           747,303,546.42                   442,915,861.70
       Prepayments                                             683,531,207.43                   603,573,549.08
       Other receivables                                    2,256,642,821.36                  2,216,654,598.66
         Including: Dividends receivable                         13,000,000.00                    13,000,000.00
       Inventories                                          5,324,637,789.32                  4,774,430,110.81
       Non-current assets due within one year               6,761,429,946.67                  6,974,539,613.30
       Other current assets                                 8,359,300,190.82                  8,108,707,394.70
     Total current assets                                  44,663,823,486.17                44,952,433,912.61
     NON-CURRENT ASSETS:
       Long-term receivables                                   895,274,094.34                 1,200,575,810.95
       Long-term equity investments                         3,690,225,211.59                  3,606,339,023.74
       Other non-current financial assets                      147,445,653.55                   147,445,653.55
       Investment properties                                5,052,099,663.96                  5,082,362,293.11
       Fixed assets                                        38,906,325,693.85                34,439,935,032.69
       Construction in progress                                490,984,338.97                 5,476,122,928.95
       Right-of-use assets                                     151,075,369.06                   152,141,882.05
       Intangible assets                                    1,670,534,278.92                  1,781,061,904.51
       Goodwill                                                   5,969,626.57                      5,969,626.57
       Long-term prepaid expenses                                53,752,451.32                    48,203,408.71
       Deferred income tax assets                              954,862,303.05                   892,442,631.04
       Other non-current assets                                166,628,029.76                   173,875,826.67
     Total non-current assets                              52,185,176,714.94                53,006,476,022.54
     Total assets                                          96,849,000,201.11                97,958,909,935.15




                                                  10
                                    Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited


                      Item                             31 March 2020                31 December 2019
CURRENT LIABILITIES:
  Short-term borrowings                                 37,162,255,680.29               36,883,156,014.19
  Bills payable                                          1,605,128,806.38                 1,515,048,206.00
  Accounts payable                                       4,172,061,533.86                 4,351,087,581.98
  Contract liabilities                                   1,146,463,617.24                   968,082,063.13
  Staff remuneration payables                              232,917,423.69                   190,229,883.52
  Taxes payable                                            398,048,496.05                   311,554,116.73
  Other payables                                         1,957,321,349.68                 2,594,249,626.54
     Including: Interest payable                           127,487,697.54                   208,189,699.15
  Non-current liabilities
    due within one year                                  5,207,469,837.04                 5,662,958,920.03
  Other current liabilities                                166,483,533.24                   222,402,500.00
Total current liabilities                               52,048,150,277.47               52,698,768,912.12
NON-CURRENT LIABILITIES:
  Long-term borrowings                                   9,850,422,478.38                 9,140,339,693.56
  Bonds payable                                          1,275,802,390.11                 1,258,270,909.49
  Lease liabilities                                          59,697,128.65                    59,697,128.65
  Long-term payables                                     2,864,252,501.15                 3,321,535,538.94
  Provisions                                               325,259,082.28                   325,259,082.28
  Deferred income                                        1,698,711,138.49                 1,771,013,335.11
  Deferred income tax liabilities                             1,411,125.59                      1,411,125.59
  Other non-current liabilities                          2,382,732,408.47                 3,042,841,328.86
Total non-current liabilities                           18,458,288,253.12               18,920,368,142.48
TOTAL LIABILITIES                                       70,506,438,530.59               71,619,137,054.60




                                                  11
                                   Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited


                     Item                             31 March 2020                31 December 2019
OWNERS’ EQUITY:
  Share Capital                                         2,904,608,200.00                 2,904,608,200.00
  Other equity instruments                              7,465,500,000.00                 7,465,500,000.00
    Including: Preference shares                        4,477,500,000.00                 4,477,500,000.00
               Perpetual bonds                          2,988,000,000.00                 2,988,000,000.00
  Capital reserves                                      5,086,686,427.30                 5,086,686,427.30
  Other comprehensive income                             -989,443,237.79                  -879,452,135.10
  Surplus reserves                                      1,212,009,109.97                 1,212,009,109.97
  General risk provisions                                   74,122,644.20                    74,122,644.20
  Retained profit                                       9,410,960,473.63                 9,306,269,617.38
TOTAL EQUITY ATTRIBUTABLE TO
  OWNERS OF THE COMPANY                                25,164,443,617.31               25,169,743,863.75
  Minority interest                                     1,178,118,053.21                 1,170,029,016.80
Total owners’ equity                                  26,342,561,670.52               26,339,772,880.55
TOTAL LIABILITIES AND OWNERS’
  EQUITY                                               96,849,000,201.11               97,958,909,935.15

                                                                                Head of the
Legal Representative:        Head in charge of accounting:                 accounting department:
  Chen Hongguo                     Dong Lianming                                Zhang Bo




                                                 12
                                        Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited


2.   Balance sheet of the Company
                                                                                                   Unit: RMB
                              Item                            31 December 2020              31 December 2019
     CURRENT ASSETS:
       Monetary funds                                           8,480,014,351.40              9,001,257,324.52
       Bills receivable                                         2,253,460,000.00              3,254,460,000.00
       Accounts receivable                                      1,259,347,483.21                  39,204,670.00
       Accounts receivable financing                               275,058,915.16               189,873,567.14
       Prepayments                                                 378,971,965.98               722,472,479.01
       Other receivables                                      12,187,585,712.86             13,975,590,537.58
       Inventories                                              1,040,723,685.75                696,487,727.53
       Non-current assets due within one year                      119,546,826.00               129,546,826.00
       Other current assets                                         87,479,947.99                 80,815,659.84
     Total current assets                                     26,082,188,888.35             28,089,708,791.62
     NON-CURRENT ASSETS:
       Long-term receivables                                       418,750,862.51               418,750,862.51
       Long-term equity investments                           23,645,643,907.57             23,629,780,317.87
       Investment in other equity instruments                                                       3,000,000.00
       Other non-current financial assets                          147,445,653.55               147,445,653.55
       Fixed assets                                             3,866,844,374.90              3,901,007,932.88
       Construction in progress                                    343,878,791.95               350,623,821.42
       Intangible assets                                           443,446,229.37               446,430,156.00
       Deferred income tax assets                                  421,577,745.82               426,711,909.98
       Other non-current assets                                    110,930,000.00               110,930,000.00
     Total non-current assets                                 29,398,517,565.67             29,434,680,654.21
     Total assets                                             55,480,706,454.02             57,524,389,445.83
     CURRENT ASSETS:
       Short-term borrowings                                  11,656,207,709.50             11,601,509,632.09
       Bills payable                                            8,876,900,869.81              9,890,041,170.20
       Accounts payable                                         2,453,278,350.44                833,526,295.40
       Contract liabilities                                     2,234,960,927.54              2,096,436,345.90
       Staff remuneration payables                                  84,915,868.36                 71,040,017.13
       Taxes payable                                                57,631,625.70                 76,872,851.56
       Other payables                                           4,880,617,762.52              6,426,648,847.95
          Including: Interest payable                               44,143,333.31               127,278,083.35
       Non-current liabilities due within one year              3,002,733,964.90              3,695,934,663.30
       Other current liabilities                                   312,810,000.00               932,402,500.00
     Total current liabilities                                33,560,057,078.77             35,624,412,323.53
                                                  13
                                      Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited


               Item                                         31 December 2020             31 December 2019
NON-CURRENT LIABILITIES:
  Long-term borrowings                                           850,692,035.94               150,692,035.94
  Bonds payable                                                   88,350,000.00                 89,070,000.00
  Long-term payables                                          1,012,327,385.48              1,167,426,124.98
  Provisions                                                     325,259,082.28               325,259,082.28
  Deferred income                                                 40,985,546.59                 42,070,840.27
  Other non-current liabilities                               1,790,683,341.67              2,789,283,340.67
Total non-current liabilities                                 4,108,297,391.96              4,563,801,424.14
Total liabilities                                           37,668,354,470.73             40,188,213,747.67
OWNERS’ EQUITY:
  Share capital                                               2,904,608,200.00              2,904,608,200.00
  Other equity instruments                                    7,465,500,000.00              7,465,500,000.00
     Including: Preference shares                             4,477,500,000.00              4,477,500,000.00
                    Perpetual bonds                           2,988,000,000.00              2,988,000,000.00
  Capital reserves                                            4,953,557,435.19              4,953,557,435.19
  Surplus reserves                                            1,199,819,528.06              1,199,819,528.06
  Retained profit                                             1,288,866,820.04                812,690,534.91
Total owners’ equity                                       17,812,351,983.29             17,336,175,698.16
TOTAL LIABILITIES AND OWNERS’
EQUITY                                                      55,480,706,454.02             57,524,389,445.83




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                                             Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited


3.   Consolidated Income Statement

                                                                                                            Unit: RMB

                                                                        Amounts for the           Amounts for the
                                 Item
                                                                           period                  prior period
     I.    Total revenue                                                  6,085,376,805.28          6,159,836,579.24
             Including: Revenue                                           6,085,376,805.28          6,159,836,579.24
     II.   Total operating costs                                          5,834,610,012.18          6,294,268,043.62
             Including: Operating costs                                   4,367,126,791.55          4,741,194,631.64
                         Taxes and surcharges                                 47,639,420.31             65,722,322.73
                         Sales and distribution expenses                    267,671,791.96            287,382,511.79
                         General and administrative expenses                246,726,191.21            272,195,901.33
                         Research and development expenses                  253,652,714.07            192,763,955.03
                         Finance expenses                                   651,793,103.08            735,008,721.10
                         Including: Interest expenses                       673,866,359.05            785,193,442.24
                                      Interest income                         81,512,048.23             85,022,879.60
             Plus: Other income                                               60,795,590.78             18,406,874.30
                   Investment income (“-” denotes loss)                     89,156,680.14                   79,234.37
                   Including: Investment income from
                                associates and joint ventures                 76,715,510.22                   79,234.37
                   Credit impairment loss (“-” denotes loss)             -179,716,703.05              60,378,880.05
                   Loss on impairment of assets
                     (“-” denotes loss)                                        -164,217.76            82,790,921.68
                   Gain on disposal of assets
                    (“-” denotes loss)                                     -16,937,727.55             -3,619,496.92
     III. Operating profit (“-” denotes loss)                             203,900,415.66              23,604,949.10
           Plus: Non-operating income                                         29,326,528.55             85,638,465.22
           Less: Non-operating expenses                                         2,456,719.00              4,104,746.56
     IV. Total profit (“-” denotes total loss)                            230,770,225.21            105,138,667.76
           Less: Income tax expenses                                          19,890,332.52             66,242,708.11
     V.    Net profit (“-” denotes net loss)                              210,879,892.69              38,895,959.65
           (I)   Classification according to the
                   continuity of operation
                 Net profit from continuing operations
                  (“-” denotes net loss)                                  210,879,892.69              38,895,959.65
           (II) Classification according to ownership
                 1.    Net profit attributable to shareholders
                         of the Company                                     202,790,856.25              38,223,111.21
                 2.    Profit or loss of minority interest                      8,089,036.44                672,848.44

                                                       16
                                      Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited


                                                                 Amounts for the Amounts for the
                            Item
                                                                    period        prior period
VI. Net other comprehensive income after tax                        -109,991,102.69            153,048,157.14
     Net other comprehensive income after tax
          attributable to shareholders of the Company               -109,991,102.69            153,048,157.14
     Other comprehensive income that will be
          reclassified to profit and loss in subsequent
          periods                                                   -109,991,102.69            153,048,157.14
        Including Exchange differences on translation               -109,991,102.69            153,048,157.14
VII. Total comprehensive income                                      100,888,790.00            191,944,116.79
     Total comprehensive income attributable to
           shareholders of the Company                                 92,799,753.56           191,271,268.35
     Total comprehensive income attributable to
           minority interest                                             8,089,036.44                672,848.44
VIII. Earnings per share:
     (I)   Basic earnings per share                                               0.019                    -0.037
     (II) Diluted earnings per share                                              0.019                    -0.037

                                                                                   Head of the
Legal Representative:          Head in charge of accounting:                  accounting department:
  Chen Hongguo                       Dong Lianming                                 Zhang Bo




                                                    17
                                             Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited


4.   Income statement of the Company

                                                                                                            Unit: RMB

                                                                        Amounts for the           Amounts for the
                                 Item                                      period                  prior period
     I.    Revenue                                                        1,916,635,173.20          1,180,608,914.97
           Less: Operating costs                                          1,442,158,792.79            996,667,766.88
                 Taxes and surcharges                                           9,314,020.08            11,315,088.59
                 Sales and distribution expenses                              53,050,071.32             41,028,655.63
                 General and administrative expenses                          72,148,076.69             79,878,521.50
                 Research and development expenses                            61,093,032.27             53,425,038.77
                 Finance expenses                                           227,917,229.09            359,385,884.76
                    Including: Interest expenses                            422,979,137.81            604,583,755.19
                               Interest income                              231,893,683.70            257,495,978.51
           Plus: Other income                                                   1,085,293.68              1,085,293.68
                 Investment income (“-” denotes loss)                     501,463,589.70                  312,370.63
                 Including: Investment income from
                   associates and joint ventures                              -1,636,410.30                 312,370.63
                 Credit impairment loss (“-” denotes loss)                  17,806,046.25             -1,063,774.22
                 Gain on disposal of assets (“-” denotes loss)                5,198,189.62             -3,632,875.13
     II.   Operating profit (“-” denotes loss)                            576,507,070.21           -364,391,026.20
           Plus: Non-operating income                                           3,006,242.05              2,648,246.00
           Less: Non-operating expenses                                           102,862.97              3,482,007.43
     III. Total profit (“-” denotes total loss)                           579,410,449.29           -365,224,787.63
           Less: Income tax expenses                                            5,134,164.16           -61,173,011.98
     IV. Net profit (“-” denotes net loss)                                574,276,285.13           -304,051,775.65
           Net profit from continuing operations
            (“-” denotes net loss)                                        574,276,285.13           -304,051,775.65
     V.    Total comprehensive income                                       574,276,285.13           -304,051,775.65
     VI. Earnings per share:
           (I)   Basic earnings per share
           (II) Diluted earnings per share




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                                          Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited


5.   Consolidated cash flow statement

                                                                                                         Unit: RMB

                                                                     Amounts for the           Amounts for the
                               Item
                                                                        period                  prior period
     I.    Cash flows from operating activities:
            Cash received from sales of goods and
              rendering of services                                    6,083,538,589.42          6,865,397,396.38
            Tax rebates received                                               152,548.94                345,075.02
            Cash received relating to other operating
              activities                                                 654,984,761.52          1,574,349,856.47
     Subtotal of cash inflows from operating activities                6,738,675,899.88          8,440,092,327.87
            Cash paid for goods and services                           5,294,624,400.87          5,663,841,703.91
            Cash paid to and for employees                               262,530,875.99            346,721,083.55
            Payments of taxes and surcharges                             193,288,988.68            552,838,124.31
            Cash paid relating to other operating activities             332,650,112.15            452,006,369.06
     Subtotal of cash outflows from operating activities               6,083,094,377.68          7,015,407,280.83
     Net cash flows from operating activities                            655,581,522.20          1,424,685,047.04
     II.   Cash flows from investing activities:
            Net cash received from disposal of fixed assets,
             intangible assets and other long-term assets                  73,153,160.00                   76,631.50
            Net cash received from disposal of subsidiaries
             and other business units                                    217,810,000.00
            Cash received relating to other investing
              activities                                                 129,197,968.06
     Subtotal of cash inflows from investing activities                  420,161,128.06                    76,631.50
            Cash paid for purchase of fixed assets,
              intangible assets and other long-term assets                 57,107,045.84           176,754,169.25
            Cash paid on investments                                       32,253,000.00
            Cash paid relating to other investing activities                                       690,140,000.00
     Subtotal of cash outflows from investing activities                   89,360,045.84           866,894,169.25
     Net cash flows from investing activities                            330,801,082.22           -866,817,537.75




                                                    19
                                     Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited


                                                                Amounts for the           Amounts for the
                         Item
                                                                   period                  prior period
III. Cash flows from financing activities:
       Cash received from borrowings                              8,767,475,858.20          9,537,282,829.45
       Cash received relating to other financing
         activities                                                 320,000,000.00          2,432,706,925.14
Subtotal of cash inflows from financing activities                9,087,475,858.20 11,969,989,754.59
       Cash repayments of amounts borrowed                        9,045,058,473.31          8,052,875,959.00
       Cash paid for dividend and profit distribution or
         interest payment                                           718,587,541.06            712,139,280.54
       Cash paid relating to other financing activities           1,410,982,326.58          3,100,936,139.44
Subtotal of cash outflows from financing activities             11,174,628,340.95 11,865,951,378.98
Net cash flows from financing activities                         -2,087,152,482.74            104,038,375.61
IV. Effect of foreign exchange rate changes on cash
      and cash equivalents                                            -8,973,806.00          -202,918,477.21
V.   Net increase in cash and cash equivalents                   -1,109,743,084.32            458,987,407.69
       Plus: Balance of cash and cash equivalents as at
         the beginning of the period                              2,890,328,027.41          2,381,558,242.52
VI. Balance of cash and cash equivalents as at the end
      of the period                                               1,780,584,343.09          2,840,545,650.21




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                                          Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited


6.   Cash flow statement of the Company

                                                                                                         Unit: RMB

                                                                     Amounts for the           Amounts for the
                               Item
                                                                        period                  prior period
     I.    Cash flows from operating activities:
            Cash received from sales of goods and rendering
              of services                                              2,016,322,718.53          1,344,720,749.36
            Cash received relating to other operating
              activities                                                   80,132,375.79           618,744,996.01
     Subtotal of cash inflows from operating activities                2,096,455,094.32          1,963,465,745.37
            Cash paid for goods and services                           1,053,052,884.20            610,419,459.85
            Cash paid to and for employees                                 77,807,706.74           113,868,782.40
            Payments of taxes and surcharges                               30,799,543.79             30,119,219.00
            Cash paid relating to other operating activities               98,434,983.32           395,606,491.12
     Subtotal of cash outflows from operating activities               1,260,095,118.05          1,150,013,952.37
     Net cash flows from operating activities                            836,359,976.26            813,451,793.00
     II.   Cash flows from investing activities:
            Cash received from investment income                         500,000,000.00
            Net cash received from disposal of fixed assets,
             intangible assets and other long-term assets                    1,153,160.00                  25,022.00
            Net cash received from disposal of subsidiaries
             and other business units                                    217,810,000.00
            Cash received relating to other investing
              activities                                                 129,197,968.06
     Subtotal of cash inflows from investing activities                  848,161,128.06                    25,022.00
            Cash paid for purchase of fixed assets,
              intangible assets and other long-term assets                   2,025,213.00              2,752,000.00
            Cash paid on investments                                       27,500,000.00         1,047,500,000.00
     Subtotal of cash outflows from investing activities                   29,525,213.00         1,050,252,000.00
     Net cash flows from investing activities                            818,635,915.06 -1,050,226,978.00




                                                    21
                                           Report for the First Quarter of 2020 of Shandong Chenming Paper Holdings Limited


                                                                      Amounts for the           Amounts for the
                               Item
                                                                         period                  prior period
      III. Cash flows from financing activities:
             Cash received from borrowings                              5,527,955,369.41          3,608,046,421.28
             Cash received relating to other
               financing activities                                       695,738,215.55          1,399,028,643.17
      Subtotal of cash inflows from financing activities                6,223,693,584.96          5,007,075,064.45
             Cash repayments of amounts borrowed                        6,174,301,531.59          2,213,232,691.23
             Cash paid for dividend and profit distribution
               or interest payment                                        422,979,137.81            364,442,666.62
             Cash paid relating to other financing activities           1,389,481,422.69          2,224,412,965.16
      Subtotal of cash outflows from financing activities               7,986,762,092.09          4,802,088,323.01
      Net cash flows from financing activities                         -1,763,068,507.13            204,986,741.44
      IV. Effect of foreign exchange rate changes on cash
          and cash equivalents                                                  226,208.85               -296,116.69
      V.   Net increase in cash and cash equivalents                     -107,846,406.96             -32,084,560.25
             Plus: Balance of cash and cash equivalents
               as at the beginning of the period                          136,328,721.71            607,805,063.02
      VI. Balance of cash and cash equivalents as at the end
          of the period                                                     28,482,314.75           575,720,502.77

II.   Reason for Adjustment in the Financial Statement

1.    Adjustment to the relevant items in the financial statements at the beginning of the
      year due to the first adoption of the New Standards for Financial Instruments, the New
      Standards for Revenue and the New Standards for Lease
      □ Applicable √ Not applicable

2.    Reason for the retrospective adjustment to the comparative data in the prior period
      due to the first adoption of the New Standards for Financial Instruments and the New
      Standards for Lease
      □ Applicable √ Not applicable

III. Auditors’ Report

      Has the first quarterly report already been audited yet?

      □ Yes √ No

      The first quarterly report of the Company is unaudited.

                                                                    By order of the Board
                                                          Shandong Chenming Paper Holdings Limited
                                                                        20April 2020

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