山 東 晨 鳴 紙 業 集 團 股 份 有 限 公 司
SHANDONG CHENMING PAPER HOLDINGS LIMITED*
First Quarterly Report 2009
§1 IMPORTANT NOTICE
1.1 The board of directors (the “Board”), the supervisory committee (the “Supervisory Committee”),
directors (the “Directors”), supervisors (the “Supervisors”) and the senior management (the “Senior
Management”) of the Company warrant that this report does not contain any false information,
misleading statements or material omissions, and accept joint and several responsibility for the
truthfulness, accuracy and completeness of the contents of this report. This report has been prepared
in both Chinese and English. For any discrepancies, the Chinese version shall prevail.
1.2 None of the Directors, Supervisors and Senior Management is unable to warrant the truthfulness,
accuracy and completeness of the contents of this report or hold any dissenting views.
1.3 This quarterly report has been considered and approved by the thirteenth meeting of the fifth session
of the Board of the Company. All Directors attended this meeting.
1.4 The first quarterly financial report of the Company prepared in accordance with Accounting
Standards for Business Enterprises issued by the Ministry of Finance of the People’s Republic of
China (the “PRC”) by the Company and its subsidiaries (collectively referred to as the “Group”) are
unaudited.
1.5 Mr. Chen Hongguo, the person in charge of the Company, Mr. Wang Chunfang, the financial
controller of the Company, and Guo Xingping, Head of Accounting Department (Head of Accounting)
hereby declare their assurance for the truthfulness and completeness of the financial report contained
in the quarterly report.
1.6 Unless otherwise stated, the currency unit in this report refers to Renminbi, the lawful currency of
the
PRC.2
§2 BASIC COMPANY INFORMATION
2.1 Major accounting data and financial indicators
Unit: RMB
At the end of
the current
reporting period
(31 March 2009)
At the end of
last year
(31 December
2008)
Increase/decrease
as at the end of
the current
reporting period
compared with
the end of last
year (%)
Total Assets 27,761,051,127.76 26,299,495,745.01 5.56%
Equity attributable to equity holders of the
Company
12,266,926,411.78 12,259,078,901.99 0.06%
Share capital 2,062,045,941.00 2,062,045,941.00 —
Net assets per share attributable to equity holders
of the Company
5.9489 5.9451 0.06%
The current
reporting period
(Three months
ended
31 March 2009)
The
corresponding
period of last
year (Three
months ended
31 March 2008)
Increase/decrease
of the current
reporting period
as compared to
the
corresponding
period of last
year (%)
Total operating revenue 2,874,448,414.82 4,119,038,784.12 -30.22%
Net profit attributable to equity holders of the
Company
7,846,215.38 469,263,268.35 -98.33%
Net cash flow generated from operating activities -149,042,774.41 540,176,853.21 -127.59%
Net cash flow per share generated from operating
activities
-0.07 0.32 -121.88%
Basic earnings per share 0.0038 0.28 -98.64%
Diluted earnings per share N/A N/A N/A
Return on net assets 0.06% 5.09% Decreased by 5.03
percentage points
Return on net assets after extraordinary gains or
losses
-0.02% 4.10% Decreased by 4.12
percentage points
Extraordinary gains or losses items
From beginning of the year to the
end of the reporting period
(Three months ended
31 March 2009)
Net gains or losses from disposal of non-current assets 5,335,120.40
Government grants received 6,582,755.93
Net gains or losses from debt restructuring 225,279.02
Non-operating net gain or loss other than the above items 2,190,271.27
Effect of extraordinary gains or losses on income tax -3,053,047.20
Effect of extraordinary gains or losses on minority shareholders -1,142,064.27
Total 10,138,315.153
2.2 Total number of shareholders and shareholdings of the top ten shareholders of non-restricted
shares at the end of the reporting period
Unit: shares
Total number of shareholders at the end of the reporting period Total number of
shareholders was 172,683,
including 134,583 equity
holders of A shares, 37,302
equity holders of B shares
and 798 equity holders of H
shares.
Shareholdings of the top ten shareholders of non-restricted outstanding shares
Name of shareholder (full name)
No. of
non-restricted
outstanding
shares held at
the end of the
period
Class of
shares
HKSCC Nominees Limited 389,779,500 H share
Bank of China — 華夏行業精選股票型證券投資基金（LOF） 26,107,478 A share
Industrial and Commercial Bank of China — 諾安股票證券投資基金 24,006,306 A share
China Construction Bank — 鵬華價值優勢股票型證券投資基金 22,031,583 A share
KEYWISE GREATER CHINA OPPORTUNITIES MASTER FUND 17,476,904 B share
Agricultural Bank of China — 中郵核心成長股票型證券 — 投資基金 17,000,000 A share
PLATINUM ASIA FUND 16,234,459 B share
KEYWISE GREATER CHINA MASTER FUND 15,666,099 B share
China Construction Bank — 華寶興業行業精選股票型證券投資基金 15,134,438 A share
China Everbright Bank Company Limited — 光大保德信量化核心證券投
資基金
14,355,145 A share
§3 SIGNIFICANT EVENTS
3.1 Details of and reasons for significant changes in major accounting statement items and
financial indicators of the Company
√ Applicable Not Applicable
Balance sheet items
Items
At the end
of the current
reporting period
(31 March 2009)
At the end
of last year
(31 December
2008)
Increase/decrease
as at the current
reporting period
compared with
the end of last
year (%)
Bank balances and cash 3,948,567,785.52 2,853,418,128.07 38.38%
Bills receivable 1,436,046,137.56 974,009,788.24 47.44%
Advances to suppliers 614,900,594.05 462,526,338.87 32.94%
Construction materials 57,992,723.62 42,079,864.21 37.82%
Short-term loans 3,170,331,660.71 1,516,945,042.67 108.99%
Advances from customers 137,130,782.57 101,693,578.57 34.85%
Non-current liabilities due within one year 538,213,673.36 1,038,125,240.62 -48.16%
Deferred income 96,954,714.50 56,828,375.23 70.61%4
Income statement items
Items
The current
reporting period
(Three months
ended 31 March
2009)
The
corresponding
period of last year
(Three months
ended 31 March
2008)
Increase/decrease
of the current
reporting period
as compared to
the corresponding
period of last year
(%)
Operating revenue 2,874,448,414.82 4,119,038,784.12 -30.22%
Costs of operations 2,597,352,358.53 3,235,985,570.55 -19.74%
Selling expenses 145,167,431.90 187,410,125.54 -22.54%
Administrative expenses 170,541,864.99 138,800,704.66 22.87%
Finance costs 93,050,280.12 26,406,913.03 252.37%
Loss on impairment of assets -133,662,338.10 -8,731,979.59 -1,430.72%
Gain on change in fair value - 6,100,236.62 -100.00%
Investment income -3,932,216.58 -7,394,035.94 46.82%
Operating profit -5,176,752.36 534,871,217.35 -100.97%
Non-operating income 19,421,985.71 146,984,841.39 -86.79%
Total profit 10,541,936.70 678,969,736.26 -98.45%
Income tax expenses 5,153,688.42 143,134,610.79 -96.40%
Net profit 5,388,248.28 535,835,125.47 -98.99%
Of which: Net profit attributable to equity
holders of the Company
7,846,215.38 469,263,268.35 -98.33%
Minority interests -2,457,967.10 66,571,857.12 -103.69%
Cash flow statement items
Items
The current
reporting period
(Three months
ended
31 March 2009)
The
corresponding
period of last year
(Three months
ended 31 March
2008)
Increase/decrease
of the current
reporting period
as compared to
the corresponding
period of last year
(%)
Net cash flows generated from operating
activities
-149,042,774.41 540,176,853.21 -127.59%
Net cash flows generated from investment
activities
-174,294,857.25 -141,426,693.83 -23.24%
Net cash flows generated from financing
activities
1,418,958,100.96 115,892,950.60 1,124.37%
Changes were mainly due to:
1. Bank balances and cash increased by 38.38%, mainly due to the effects of the increase in discounted
bills of the Company between January and March 2009.
2. Bills receivable increased by 47.44%, mainly due to the increase in imported raw materials by the
Company during the current period, resulting in a corresponding decrease in external payment bills
and an increase in bills receivable.
3. Advances to suppliers increased by 32.94%, mainly due to the gradually improved market conditions,
which led to an increase in advances to suppliers.
4. Construction materials increased by 37.82%, mainly due to the increase in the construction materials
purchased by the Company.5
5. Short-term loans increased by 108.99%, mainly due to an increase in undue discounted bills of the
Company during the current period.
6. Advances from customers increased by 34.85%, mainly because the Company entered into more
sales contracts with customers under a gradually recovering market, which caused an increase in
customer advances in respect of goods purchased.
7. Non-current liabilities due within one year decreased by 48.16%, mainly due to the Company
headquarters repaid RMB 503 million of loans due within one year during the current period.
8. Deferred income increased by 70.61%, mainly due to Zhanjiang Chenming Paper Pulp Co., Ltd., a
subsidiary of the Company, received grants of RMB 35 million from Zhanjiang City in respect of the
water supply and road network construction projects for the Zhanjiang pulp project.
9. Operating revenue decreased by 30.22%, mainly due to the decrease in product sales volume and
sales price during the first quarter of 2009 as compared with the corresponding period of last year
under the influence of the economic crisis.
10. Cost of operations decreased by 19.74%, mainly due to the decrease in raw material prices leading to
lower production cost per unit and lower product sales volume in the first quarter of 2009 under the
influence of the economic crisis.
11. Selling expenses decreased by 22.54%, mainly due to reduced transportation costs as a result of lower
sales volume.
12. Administrative expenses increased by 22.87%, mainly due to the Company’s partial cessation of
production under the impact of the economic crisis.
13. Financial costs increased by 252.37%, mainly due to a quarter-on-quarter decrease in exchange gains
incurred during the first quarter of 2009 as a result of the appreciation of Renminbi.
14. Loss on impairment of assets decreased by 1,430.72%, mainly due to the Company’s reassessment on
impairment provision for commercial goods in view of recovering market conditions, for which
impairment provisions for inventories allocated at the end of 2008 were reversed.
15. Gain on change in fair value reduced by 100.00%, mainly due to a smaller change in timber
production volume and raw material prices during the first quarter of 2009; therefore, their changes in
fair values were not recognized.
16. Investment income increased by 46.82%, mainly due to the investment losses in associates reduced
during the current period.
17. Operating profit reduced by 100.97%, mainly due to the decrease in product sales volume of the
Company and a concurrent drop in gross profit margin under the influence of the economic crisis.
18. Non-operating income reduced by 86.79%, mainly due to the reduction of the government grants
received by the Company during the current period.
19. Total profit reduced by 98.45%, mainly due to lower product sales volume of the Company, reduced
sales prices of relevant products, lower gross profit margin, reduced exchange gains and the reduction
of the government grants received under the influence of the financial crisis.
20. Income tax expenses decreased by 96.4%, mainly due to lower profit.
21. Net cash flows from operating activities decreased by 127.59%, mainly due to lower product sales
volume of the Company and lower sales prices under the impact of the financial crisis, which led to a6
drop in revenue.
22. Net cash flows from investment activities decreased by 23.24%, mainly due to the payment of land
premium of the Zhanjiang pulp project which increased cash paid for purchase and construction of
fixed assets and intangible assets.
23. Net cash flows from financing activities increased by 1,124.37%, mainly due to the reduction in cash
paid for repayment of debts by the Company during the current period.
3.2 The progress of significant events and analysis of their impact and solutions
Applicable √ Not Applicable
3.3 Performance of undertakings by the Company, shareholders and de facto controller
√ Applicable Not Applicable
As of the end of the reporting period, Shougoang Cheming Holdings Co., Ltd., the controlling
shareholder of the Company, had made the following commitment during the reform of Conversion:
Shares held by Shougoang Cheming Holdings Co., Ltd. shall not be listed within 48 months from the
date of the reform of Conversion. The controlling shareholder of the Company strictly performed its
commitment.
3.4 Warning on the potential loss in accumulated net profit for the period from the beginning of the
year to the end of the next reporting period or any material change in accumulated net profit
from the corresponding period of last year and analysis of the reasons thereof
Applicable √ Not Applicable
3.5 Other significant events that require explanation
3.5.1 Investment in securities
Applicable √ Not Applicable
3.5.2 Table setting out reception activities including investigation and research, communication and
interviews during the reporting period
Time of
reception Place of reception
Manner of
reception Visitor
Main topics of
discussion and
information
provided
January 2009 Shouguang On-site
investigation and
research
Analysts from China
International Capital
Corporation Limited
Production and
operations of the
Company in 2008
and recent
developments
February 2009 Shouguang On-site
investigation and
research
Joint investigation
and research team
from Sinolink
Securities
Production and
operations of the
Company in 2008
and recent
developments
February 2009 Shouguang On-site
investigation and
research
Joint investigation
and research team
from Guotai Junan
Production and
operations of the
Company in 20087
and recent
developments
February 2009 Shouguang On-site
investigation and
research
Joint investigation
and research team
from CITIC
Securities
Production and
operations of the
Company in 2008
and recent
developments
March 2009 Shouguang On-site
investigation and
research
Analysts from
Haitong Securities
Production and
operations of the
Company in 2008
and recent
developments
3.5.3 The explanation of other significant events
Applicable √ Not Applicable
§4 APPENDICES
4.1 Balance Sheet
Prepared by Shandong Chenming Paper Holdings Limited
Unit: RMB
Balance at the end of period
(31 March 2009)
Balance at the beginning of
the period
(31 December 2008)
Items Consolidated The Company Consolidated The Company
Current assets:
Bank balances and cash 3,948,567,785.52 3,411,348,869.18 2,853,418,128.07 2,142,439,739.51
Settlement reserves — — — —
Lending to banks — — — —
Derivative financial
instruments
— — — —
Bills receivable 1,436,046,137.56 990,072,576.05 974,009,788.24 465,681,067.32
Accounts receivable 1,732,326,320.74 2,064,805,592.22 1,752,409,349.17 1,937,280,312.86
Advances to suppliers 614,900,594.05 674,762,026.26 462,526,338.87 438,759,362.48
Premiums receivable — — — —
Reinsurance accounts
receivable
— — — —
Reinsurance reserves
receivable
— — — —
Interests receivable — — — —
Dividends receivable — 139,874,997.10 — 164,874,997.10
Other receivables 132,691,409.62 1,071,063,496.87 135,889,612.93 936,468,514.72
Financial assets purchased
under repurchase agreements
— — — —
Inventory 3,366,388,329.49 1,595,021,255.23 3,397,792,930.38 1,682,657,074.51
Entrusted loans due within
one year
— 792,000,000.00 — 982,000,000.00
Other current assets 150,315,933.20 65,903,752.52 151,993,045.95 52,747,204.98
Total current assets 11,381,236,510.18 10,804,852,565.43 9,728,039,193.61 8,802,908,273.48
Non-current assets:8
Loans and advances extended — — — —
Available-for-sale financial
assets
— — — —
Entrusted loans — 885,000,000.00 — 965,000,000.00
Long-term receivables — — — —
Long-term equity investments 88,741,552.56 4,077,927,360.44 92,673,769.14 4,081,859,577.02
Investment properties 27,875,014.81 27,875,014.81 28,164,724.15 28,164,724.15
Fixed assets 13,878,434,223.62 6,084,777,611.52 14,213,441,758.08 6,258,618,550.53
Construction in progress 514,269,898.10 93,255,961.50 431,379,272.50 59,788,891.26
Construction materials 57,992,723.62 1,473,594.73 42,079,864.21 1,981,408.48
Disposal of fixed assets — — — —
Consumable biological assets 337,416,697.05 — 301,212,691.14 —
Oil and gas assets — — — —
Intangible assets 1,277,428,184.03 355,894,564.82 1,277,076,588.53 364,509,396.99
Development costs — — — —
Goodwill 20,283,787.17 — 20,283,787.17 —
Long-term deferred
expenditure
48,309,215.37 — 37,227,730.36 —
Deferred income tax assets 129,063,321.25 71,313,551.96 127,916,366.12 78,605,721.73
Other non-current assets — — — —
Total non-current assets 16,379,814,617.58 11,597,517,659.78 16,571,456,551.40 11,838,528,270.16
Total assets 27,761,051,127.76 22,402,370,225.21 26,299,495,745.01 20,641,436,543.64
Current liabilities:
Short-term loans 3,170,331,660.71 2,913,327,305.35 1,516,945,042.67 1,144,068,305.68
Borrowings from the central
bank
— — — —
Deposits taken from and
balances with other industrial
counterparts
— — — —
Borrowings from banks — — — —
Financial liabilities held for
trading
198,900.00 — 198,900.00 —
Bills payable 386,814,377.66 248,159,424.59 367,627,562.14 210,151,045.59
Accounts payable 2,361,940,585.12 1,712,730,671.81 2,642,308,185.90 1,716,031,795.17
Advances from customers 137,130,782.57 92,117,846.84 101,693,578.57 66,019,457.87
Financial assets sold under
repurchase agreements
— — — —
Fees and commissions
payable
— — — —
Employee benefits payable 206,690,641.80 108,339,162.54 190,209,067.13 98,888,359.60
Taxes payable 49,792,275.97 17,354,319.53 49,965,982.34 16,156,180.51
Interests payable — — — —
Dividends payable 36,089.31 36,089.31 36,089.31 36,089.31
Other payables 348,541,791.30 256,784,650.49 346,226,242.06 283,099,241.86
Reinsurance accounts payable — — — —
Insurance reserves — — — —
Trading securities on a
commissioned basis
— — — —
Underwriting securities on a
commissioned basis
— — — —
Non-current liabilities due
within one year
538,213,673.36 380,271,900.00 1,038,125,240.62 883,602,600.00
Short-term debentures
payable
1,966,574,444.43 1,966,574,444.43 1,941,874,444.43 1,941,874,444.439
Total current liabilities 9,166,265,222.23 7,695,695,814.89 8,195,210,335.17 6,359,927,520.02
Non-current liabilities:
Long-term loans 4,464,235,437.59 3,474,128,035.94 4,019,250,823.86 3,064,076,035.94
Bonds payable — — — —
Long-term payables — — — —
Deferred income 96,954,714.50 5,537,541.95 56,828,375.23 5,537,541.95
Estimated liabilities — — — —
Deferred income tax
liabilities
6,431,545.79 — 6,431,545.79 —
Other non-current liabilities — — — —
Total non-current liabilities 4,567,621,697.88 3,479,665,577.89 4,082,510,744.88 3,069,613,577.89
Total liabilities 13,733,886,920.11 11,175,361,392.78 12,277,721,080.05 9,429,541,097.91
Owners’ equity (or
shareholders’ equity):
Paid-up capital (or share
capital)
2,062,045,941.00 2,062,045,941.00 2,062,045,941.00 2,062,045,941.00
Capital reserves 6,093,483,801.92 6,185,212,800.60 6,093,483,801.92 6,184,215,988.77
Less: Treasury shares — — — —
Surplus reserves 825,476,850.53 813,287,268.62 825,476,850.53 813,287,268.62
General risk reserves — — — —
Undistributed profits 3,285,039,025.78 2,166,462,822.21 3,277,192,810.40 2,152,346,247.34
Translation reserve 880,792.55 — 879,498.14 —
Total equity attributable to
equity holders of the
Company
12,266,926,411.78 11,227,008,832.43 12,259,078,901.99 11,211,895,445.73
Minority interests 1,760,237,795.87 — 1,762,695,762.97 —
Total owners’ equity 14,027,164,207.65 11,227,008,832.43 14,021,774,664.96 11,211,895,445.73
Total liabilities and owners’
equity
27,761,051,127.76 22,402,370,225.21 26,299,495,745.01 20,641,436,543.64
4.2 Income Statement
Prepared by Shandong Chenming Paper Holdings Limited
Unit: RMB
Current period
(Three months ended
31 March 2009)
Previous period
(Three months ended
31 March 2008)
Items Consolidated The Company Consolidated The Company
I.Total operating revenue 2,874,448,414.82 2,587,541,859.63 4,119,038,784.12 3,381,868,413.64
Including:
Operating revenue
2,874,448,414.82 2,587,541,859.63 4,119,038,784.12 3,381,868,413.64
Interest income — — — —
Premiums earned — — — —
Fees and commission income — — — —
II.Total costs of operations 2,875,692,950.60 2,595,114,554.53 3,582,873,767.45 3,011,926,204.17
Including:
Costs of operations
2,597,352,358.53 2,416,136,937.91 3,235,985,570.55 2,865,586,796.75
Interest expenses — — — —
Fees and commission expenses — — — —
Surrender charges — — — —
Net claims payments — — — —
Net premium reserves on — — — —10
drawn-down policies
Policy dividends payments — — — —
Reinsurance fees — — — —
Tax and levies on operations 3,243,353.16 93,180.33 3,002,433.26 69,538.67
Selling expenses 145,167,431.90 91,734,763.53 187,410,125.54 96,296,454.98
Administrative expenses 170,541,864.99 56,843,714.91 138,800,704.66 55,394,613.84
Finance costs 93,050,280.12 76,573,187.14 26,406,913.03 1,198,894.44
Loss on impairment of assets -133,662,338.10 -46,267,229.29 -8,731,979.59 -6,620,094.51
Add: Gains on change in fair value
(“-” losses)
— — 6,100,236.62 —
Investment income (“-” losses) -3,932,216.58 19,720,223.17 -7,394,035.94 98,191,535.46
Including: Investment income
from associates and joint ventures
— — — —
Exchange gains (“-” losses) — — — —
III.Operating profit (“-” losses) -5,176,752.36 12,147,528.27 534,871,217.35 468,133,744.93
Add: Non-operating income 19,421,985.71 12,481,357.27 146,984,841.39 80,031,903.62
Less: Non-operating expenses 3,703,296.65 3,220,140.90 2,886,322.48 2,317,705.09
Including: Loss on disposal of
non-current assets
— — — —
IV.Total profit (“-” total losses) 10,541,936.70 21,408,744.64 678,969,736.26 545,847,943.46
Less: Income tax expenses 5,153,688.42 7,292,169.77 143,134,610.79 122,495,576.94
V.Net profit (“-” net losses) 5,388,248.28 14,116,574.87 535,835,125.47 423,352,366.52
Net profit attributable to equity
holders of the Company
7,846,215.38 14,116,574.87 469,263,268.35 423,352,366.52
Minority interests -2,457,967.10 — 66,571,857.12 —
VI.Earnings per share:
(1)Basic earnings per share 0.0038 0.0068 0.28 0.25
(2)Diluted earnings per share N/A N/A N/A N/A
4.3 Cash Flow Statement
Prepared by Shandong Chenming Paper Holdings Limited
Unit: RMB
Current period
(Three months ended
31 March 2009)
Previous period
(Three months ended
31 March 2008)
Items Consolidated The Company Consolidated The Company
I.Cash flows generated from
operating activities:
Cash received from sale of goods
and services rendered
2,000,606,763.32 1,398,718,345.94 3,859,734,440.89 3,129,893,895.36
Net increase in customer deposits
and balances with industrial
counterparts
— — — —
Net increase in borrowings from
central bank
— — — —
Net increase in borrowings from
other financial institutions
— — — —
Cash received as premiums under
original insurance policies
— — — —
Net cash received from the
reinsurance business
— — — —11
Net increase in reserves and
investment funds held under trust
for insurance policy holders
— — — —
Net increase in disposal of
derivative financial instruments
— — — —
Cash received as interests, fees
and commission
— — — —
Net increase in borrowings from
banks
— — — —
Net increase in funds related to
repurchase business
— — — —
Current period
(Three months ended
31 March 2009)
Previous period
(Three months ended
31 March 2008)
Items Consolidated The Company Consolidated The Company
Refund of taxes and levies
received
4,108,626.89 — 30,232,591.36 —
Cash received relating to other
operating activities
66,456,349.04 26,684,837.77 125,795,324.51 83,958,574.48
Subtotal of cash inflows from
operating activities
2,071,171,739.25 1,425,403,183.71 4,015,762,356.76 3,213,852,469.84
Cash paid for purchase of goods
and services
1,864,339,058.22 1,790,311,954.65 2,842,375,535.93 2,362,080,368.81
Net increase in customer loans and
advances
— — — —
Net increase in balances with
central bank and industrial
counterparts
— — — —
Cash paid for claims under
original insurance policies
— — — —
Cash paid as interests, fees and
commission
— — — —
Cash paid as insurance policy
dividends
— — — —
Cash paid to and on behalf of
employees
120,182,981.65 45,865,461.81 168,217,786.10 55,965,740.31
Payments of taxes and levies 138,374,063.90 73,980,310.59 350,918,426.78 188,862,951.20
Cash paid relating to other
operating activities
97,318,409.89 47,823,677.51 114,073,754.74 -415,988,565.28
Subtotal of cash outflows from
operating activities
2,220,214,513.66 1,957,981,404.56 3,475,585,503.55 2,190,920,495.04
Net cash flows generated from
operating activities
-149,042,774.41 -532,578,220.85 540,176,853.21 1,022,931,974.80
Current period
(Three months ended
31 March 2009)
Previous period
(Three months ended
31 March 2008)
Items Consolidated The Company Consolidated The Company
II.Cash flows generated from
investment activities:
Cash received from investments — 480,000,000.00 — 42,200,000.00
Cash received from return on
investments
— 28,652,439.75 594,066.46 64,661,272.16
Net cash received from disposal of 718,071.92 496,994.00 112,561.04 869,434.7012
fixed assets, intangible assets and
other long-term assets
Net cash received from disposal of
subsidiaries and other operating
entities
— — — —
Other cash received relating to
investment activities
35,000,000.00 — 35,549,583.33 —
Subtotal of cash inflows from
investment activities
35,718,071.92 509,149,433.75 36,256,210.83 107,730,706.86
Cash paid for purchase and
construction of fixed assets,
intangible assets and other
long-term assets
209,012,929.17 3,920,875.05 177,682,904.66 23,414,966.96
Cash paid for investments — 210,000,000.00 — 553,000,000.00
Net increase in pledged loans — — — —
Net cash paid for acquisition of
subsidiaries and other operating
entities
1,000,000.00 — — —
Other cash paid relating to
investment activities
— — — —
Subtotal of cash outflows from
investment activities
210,012,929.17 213,920,875.05 177,682,904.66 576,414,966.96
Net cash flows generated from
investment activities
-174,294,857.25 295,228,558.70 -141,426,693.83 -468,684,260.10
III.Cash flows generated from
financing activities:
Cash received from investments — — — —
Including: Cash received from
accepting investments of minority
shareholders in subsidiaries
— — — —
Cash received from borrowings
obtained
3,345,189,024.26 3,067,588,146.95 3,014,063,392.79 2,702,130,529.26
Cash received from issuance of
bonds
— — — —
Other cash received relating to
financing activities
— — 100,400,953.45 116,547,338.62
Subtotal of cash inflows from
financing activities
3,345,189,024.26 3,067,588,146.95 3,114,464,346.24 2,818,677,867.88
Cash paid for repayments of debts 1,850,861,857.31 1,498,140,008.75 2,860,369,227.61 2,713,583,589.50
Cash paid for distribution of
dividends and profit and payment
of interests
75,369,065.99 63,030,013.30 138,202,168.03 101,258,367.69
Including: Dividends and profit
paid to minority shareholders by
subsidiaries
— — — —
Other cash paid relating to
financing activities
— — — —
Subtotal of cash outflows from
financing activities
1,926,230,923.30 1,561,170,022.05 2,998,571,395.64 2,814,841,957.19
Net cash flows generated from
financing activities
1,418,958,100.96 1,506,418,124.90 115,892,950.60 3,835,910.69
IV.Effect of exchange rate changes
on cash and cash equivalents
-470,811.85 -159,333.08 -73,766.22 10,406,120.84
V.Net increase in cash and cash
equivalents
1,095,149,657.45 1,268,909,129.67 514,569,343.76 568,489,746.2313
Add: Balance of cash and cash
equivalents at the beginning of the
period
2,853,418,128.07 2,142,439,739.51 613,826,456.62 222,153,337.39
VI.Balance of cash and cash
equivalents at the end of the period
3,948,567,785.52 3,411,348,869.18 1,128,395,800.38 790,643,083.62
4.4 Audit report
Audit opinion: unaudited
By order of the Board
Chen Hongguo
Chairman
28 April 2009
