2023 Interim Report Summary of Shandong Chenming Paper Holdings Limited
Stock code: 000488, 200488 Stock abbreviation: Chenming Paper Chenming B Announcement No.:2023-066
2023 Interim Report Summary of
Shandong Chenming Paper Holdings Limited
I. IMPORTANT NOTICE
This interim report summary is extracted from the text of the interim report. For the full understanding of the operating results,
financial position and plan for further development, investors should carefully read the text of the interim report published on the
media as designated by the CSRC.
All directors have attended the board meeting to review this report.
Notice of non-standard auditor’s opinion
□ Applicable Not applicable
A proposed profit distribution plan on ordinary shares or a proposed plan on conversion of capital reserves into share capital for
the reporting period was considered and passed by the Board
□ Applicable Not applicable
The Company proposes not to distribute cash dividend, issue bonus share, or capitalise from capital reserves
A proposed profit distribution plan on preference shares for the reporting period was considered and approved by the Board
□ Applicable Not applicable
II. BASIC INFORMATION ABOUT THE COMPANY
1. Company profile
晨鸣纸业 000488
Stock abbreviation Stock code
晨鸣 B 200488
Stock exchange on which the shares are listed Shenzhen Stock Exchange
Stock abbreviation CHENMING PAPER Stock code 01812
Stock exchange on which the shares are listed The Stock Exchange of Hong Kong Limited
Stock abbreviation before any changes (if
None
any)
Contact persons and contact methods Secretary to the Board Hong Kong Company Secretary
Name Yuan Xikun Chu Hon Leung
No.2199East Nongsheng Road, 22nd Floor, World Wide House, Central,
Correspondence address
Shouguang City, Shandong Province Hong Kong
Telephone 0536-2158008 00852-21629600
Email address chenmmingpaper@163.com liamchu@li-partners.com
2. Major financial data and financial indicators
Retrospective adjustment to or restatement of the accounting data for prior years by the Company
□ Yes No
The corresponding Increase/decrease for the reporting
The reporting
period of the prior period as compared to the
period
year corresponding period of the prior year
Revenue (RMB) 12,564,962,781.31 16,676,428,365.83 -24.65%
Net profit attributable to shareholders of the
-688,080,164.10 230,141,463.76 -398.98%
Company (RMB)
Net profit after extraordinary gains or losses
-811,839,217.49 173,407,927.13 -568.17%
attributable to shareholders of the Company
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2023 Interim Report Summary of Shandong Chenming Paper Holdings Limited
(RMB)
Net cash flows from operating activities
1,783,087,747.59 998,264,209.45 78.62%
(RMB)
Basic earnings per share (RMB per share) -0.250 0.064 -490.63%
Diluted earnings per share (RMB per share) -0.250 0.064 -490.63%
Rate of return on weighted average net assets -4.15% 1.02% Decrease by 5.17 percentage points
Increase/decrease as at the end of the
As at the end of the As at the end of the
reporting period as compared to the
reporting period prior year
end of the prior year
Total assets (RMB) 82,652,860,756.58 84,301,017,409.62 -1.96%
Net assets attributable to shareholders of the
18,287,406,923.90 19,084,565,494.92 -4.18%
Company (RMB)
Data specification: The net profit attributable to shareholders of the Company does not exclude the effect of the interest
payment deferred and accumulated to subsequent periods for Perpetual Bonds. When calculating financial indicators such as
earnings per share and rate of return on weighted average net assets, the interest on Perpetual Bonds of RMB44,481,369.86 during
the reporting period is deducted.
3. Share capital and shareholders
Unit: Shares
Total number of ordinary 146,991, of which 125,210 were holders Total number of holders of preference
shareholders as at the end of the of A shares, 21,454 were holders of B shares with restored voting right as at 0
reporting period shares and 327 were holders of H shares the end of the reporting period (if any)
Shareholdings of top 10 shareholders
Share pledged, marked
Percentage Number of
Number of or locked-up
Name of shareholder Nature of shareholder of restricted
shares held Status of
shareholding shares held Number
shares
CHENMING HOLDINGS State-owned legal
15.35% 457,322,919 0 Pledged 247,040,000
COMPANY LIMITED person
HKSCC NOMINEES LIMITED Overseas legal person 12.53% 373,440,375 0
CHENMING HOLDINGS (HONG
Overseas legal person 12.22% 364,131,563 0
KONG) LIMITED(Note 1)
Hong Zejun Domestic natural person 3.02% 90,000,000 0
Chen Hongguo Domestic natural person 1.04% 31,080,044 23,310,033
SHANDONG SUN HOLDINGS Domestic non-state-
0.84% 24,987,117 0
GROUP CO., LTD. owned legal person
CHINA MERCHANTS
Overseas legal person 0.58% 17,378,201 0
SECURITIES (HK) CO., LIMITED
HONG KONG SECURITIES
Overseas legal person 0.54% 15,968,039 0
CLEARING COMPANY LIMITED
Du Haibin Domestic natural person 0.53% 15,766,502 0
VANGUARD EMERGING
Overseas legal person 0.50% 14,852,146 0
MARKETS STOCK INDEX FUND
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
Related party relationship or acting
state-owned legal person; A shareholder, Chen Hongguo, is the legal representative and chairman
in concert among the above
of Chenming Holdings Company Limited. Save for the above, it is not aware that any other
shareholders
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 457,322,919 RMB ordinary shares, of which
326,322,919 shares were held through ordinary account and 131,000,000 shares were held through
credit guarantee security account;
Securities margin trading of Hong Zejun held 90,000,000 RMB ordinary shares, of which 5.800.000 shares were held through
shareholders ordinary account and 84,200,000 shares were held through credit guarantee security account;
Shandong Sun Holdings Group Co., Ltd. held 24,987,117 RMB ordinary shares, of which no share
was held through ordinary account and 24,987,117 shares were held through credit guarantee
security account.
Note 1: In order to meet its own capital needs, Chenming Holdings (Hong Kong) Limited conducted share financing business with
overseas institutions, entrusting 210,717,563 B shares and 153,414,000 H shares of the Company held by it to the custody
brokerage designated by overseas institutions. The aforesaid shares are subject to the risk of not to be recovered, which may lead
to a reduction in the Company’s shareholding, but does not affect Chenming Holdings’ position as the largest shareholder, and
does not affect the Company’s control. For details, please refer to the announcement disclosed by the Company on CNINFO on 18
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2023 Interim Report Summary of Shandong Chenming Paper Holdings Limited
July 2023 (announcement no.: 2023-058) and the insider information disclosed by the Company on the website of Hong Kong
Stock Exchange on 18 July 2023.
4. Change of controlling shareholders or beneficial controllers
Change of controlling shareholders during the reporting period
□Applicable Not applicable
There was no change of controlling shareholders of the Company during the reporting period.
Change of beneficial controllers during the reporting period
□Applicable Not applicable
There was no change of beneficial controllers of the Company during the reporting period.
5. Total number of holders of preference shares and the shareholdings of top ten holders of preference
shares
□Applicable Not applicable
There was no shareholding by holders of preference shares of the Company during the reporting period.
6. Bonds subsisting as at the date of approval of the interim report
Applicable □ Not applicable
(1) Basic information on bonds
Outstanding
Issue amount of the Interest
Name of bond Bond abbreviation Bond code Maturity date
date bonds rate
(RMB’0,000)
2017 first tranche of medium-term notes of 17 Lu Chenming 11 July
101779001 12 July 2023 100,000.00 8.97%
Shandong Chenming Paper Holdings Limited MTN001 2017
Other explanations:
According to the “Prospectus of the 2017 First Tranche of Medium-term Notes of Shandong Chenming Paper Holdings
Limited”, “17 Lu Chenming MTN001” is subject to the issuer’s redemption option. On 11 May 2023, the Company published the
Announcement on the Exercise of the Redemption Option of the 2017 First Tranche of Medium-term Notes and the
Announcement on the Redemption of the 2017 First Tranche of Medium-term Notes on Shanghai Clearing House
(www.shclearing.com) and Chinamoney (www.chinamoney.com.cn). The Company chose to redeem “17 Lu Chenming MTN001”
in full, and completed the payment of the principal and interest on 12 July 2023. To date, all the bonds of the Company have been
redeemed.
(2) Financial indicators as at the end of the reporting period
Unit: RMB’0,000
Item As at the end of the reporting period As at the end of the prior year
Gearing ratio 72.28% 71.85%
Current ratio 62.61% 63.04%
Quick ratio 49.20% 49.90%
Item The reporting period The corresponding period of the prior year
Net profit after extraordinary gains or losses -81,183.92 17,340.79
EBITDA interest coverage ratio 1.36 2.72
Interest coverage ratio -0.09 1.33
Cash interest coverage ratio 2.98 2.11
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2023 Interim Report Summary of Shandong Chenming Paper Holdings Limited
III. Matters of significance
1. Entering into the Strategic Cooperation Agreement with China Construction Bank Shandong Branch
On 24 April 2023, The Company entered into the Strategic Cooperation Agreement with China Construction Bank Co., Ltd.
Shandong Branch (hereinafter referred to as “CCB Shandong”), in which both parties agreed to conduct comprehensive cooperatio n
in the commercial banking and investment banking business, provided that laws and regulations, regulatory requirements, internal
risk management system and relevant business operation procedures of CCB Shandong are complied, internal approval from CCB
Shandong is obtained and credit conditions are met. After entering into the Agreement, Shandong Construction Bank will be able to
fully utilise its service resources to prioritise providing comprehensive financial services to the Company and its subsidiaries, which
will help the Company further broaden financing channels, optimise capital structure, enhance capital strength and achieve sound
development by relying on the high-quality resources and platforms of large state-owned commercial banks.
For details, please refer to the relevant announcement disclosed by the Company on Cninfo on 26 April 2023 (announcement
number: 2023-036) and the overseas regulatory announcement disclosed by the Company on the website of Hong Kong Stock
Exchange on 25 April 2023.
2. Repayment of the“18 Chenming Bond 01”of RMB350 million on schedule and completion of delisting
On 3 April 2023, the Company entrusted the Shenzhen Branch of China Securities Depository & Clearing Co., Ltd. to complete
the payment of principal and interest of “18 Chenming Bond 01” of RMB350 million in accordance with the "First Tranche of
Corporate Bonds Publicly Issued to Qualified Investors in 2018”. The bond was delisted from the Shenzhen Stock Exchange on the
same day.
For details, please refer to the relevant announcement disclosed by the Company on CNINFO on 30 March 2023 (announcement
number: 2023-015) and the overseas regulatory announcement disclosed by the Company on the website of Hong Kong Stock
Exchange on 30 March 2023.
3. Proposed full redemption of perpetual bonds of RMB1 billion
On 11 July 2017, the Company issued “17 Lu Chenming MTN001” amounting to RMB1 billion with a term of 3+N. According
to the “Prospectus of the Company’s 2017 first tranche of medium-term notes”, “17 Lu Chenming MTN001” is subject to the issuer ’s
redemption option. The Company proposed to redeem the RMB1 billion perpetual bonds in full. The principal and interest payment
on 12 July 2023 amounted to RMB1,089.70 million. To date, all the bonds of the Company have been redeemed.
For details, please refer to the relevant announcement disclosed by the Company on Shanghai Clearing (www.shclearing.com)
and China Money (www.chinamoney.com.cn) on 11 May 2023.
4. Termination of asset purchase through the issuance of shares and cash payments
On 27 February 2023, the Company convened the 2023 first extraordinary general meeting, the 2023 first class meeting for
holders of domestic-listed shares and the 2023 first class meeting for holders of overseas-listed shares, at which the Company
considered and approved relevant resolutions including the Report on the Agreement on Asset Purchase through Issuance of Shares
and Cash Payments and Connected Transactions (Draft) of the Company. The Company intended to acquire 1.19% equity interests in
Shouguang Meilun held by Dongxing Securities Investment Co., Ltd., 44.44% limited partnership share in Chenrong Fund held by
Chongqing International Trust Inc. through issuance of shares. The Company’s wholly-owned subsidiary, Chenming Investment,
intends to acquire 0.22% general partnership interest in Chenrong Fund held by Chenming (Qingdao) Asset Management Co., Ltd.’s
through cash payment. The type of shares to be issued by the Company is A shares, the price of the shares to be issued is RMB 4.42
per share, and the number of shares to be issued is 71,841,345 shares.
On 14 March 2023, the Company received the Notice on the Acceptance of Application Documents for Asset Purchase through
the Issuance of Shares of Shandong Chenming Paper Holdings Limited (Shen Zheng Shang Shen [2023] No. 259) (《關於受理山東
晨鳴紙業集團股份有限公司發行股份購買資產申請文件的通知》(深證上審[2023]259號)) from the Shenzhen Stock Exchange.
On 29 June 2023, the Company convened the eighth extraordinary general meeting of the tenth session of the Board and the
Fourth extraordinary general meeting of the tenth session of the Supervisory Committee, at which the Company considered and
approved the Resolution on the Termination of the Asset Purchase through Issuance of Shares and Cash Payments and Connected
Transactions and Withdrawal of the Application Documents and agreed to terminate the transaction, sign the relevant termination
agreement with the counterparty if needed and apply to the Shenzhen Stock Exchange for relevant application documents for the
withdrawal of the transaction.
For details, please refer to the relevant announcement disclosed by the Company on CNINFO on 28 February 2023, 16 March
2023 and 30 June 2023 (announcement number: 2023-010, 2023-014, 2023-048) and the relevant announcement disclosed by the
Company on the website of Hong Kong Stock Exchange on 27 February 2023, 15 March 2023 and 29 June 2023.
The Board of Shandong Chenming Paper Holdings Limited
30 August 2023
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