Section I Important Notice, Contents and Definitions
The Board of Directors and the Board of Supervisors of the Company and its directors,
supervisors and senior management warrant that the information contained in this semi-
annual report is true, accurate and complete without any false and misleading statements or
material omissions, and severally and jointly accept legal liability thereof.
Liu Peng, the person in charge of the Company, Dong Ye, the person in charge of accounting
of the Company, and Xu Xianjing, the person in charge of the accounting department of the
Company, have declared that they warrant the truthfulness, accuracy and completeness of the
financial statements set out in this semi-annual report.
All directors of the Company attended the Board meeting on which this report was reviewed.
Discrepancies in the sum of decimals in this report are caused by rounding.
The forward-looking statements in this report, including future plans and development
strategies, do not constitute substantive commitments of the Company to investors. Investors
should be aware of the investment risks.
The Company has described potential risk factors and countermeasures that may exist in its
operations in detail in Section III Discussion and Analysis of the Management and Section X
Risks Faced by the Company and Countermeasures. Investors are advised to pay attention to
the relevant contents.
The Company plans not to distribute cash dividend, issue bonus share, or transfer capital
reserve into share capital.
Contents
Section I Important Notice, Contents and Definitions ........................................................................................................ 2
Section II Company Profile and Key Financial Indicators ............................................................................................... 6
Section III Discussion and Analysis of the Management ................................................................................................... 9
Section IV Corporate Governance........................................................................................................................................... 28
Section V Environmental and Social Responsibilities ....................................................................................................... 31
Section VI Significant Events .................................................................................................................................................... 37
Section VII Changes in Shareholding and Information of Shareholders ................................................................... 55
Section VIII Particulars of Preference Shares..................................................................................................................... 64
Section IX Corporate Bonds ...................................................................................................................................................... 65
Section X Financial Report ........................................................................................................................................................ 66
Documents Available for Inspection
1. The Semi-annual Report 2022 affixed with the signature of Mr. Liu Peng, the Company’s legal
representative
2. Financial statements affixed with the signatures and stamps of Mr. Liu Peng, the legal
representative of the Company, Mr. Dong Ye, person in charge of accounting, and Ms. Xu Xianjing,
person in charge of accounting department of the Company
3. All original copies of the Company’s documents and the original drafts of the Company’s
announcements as disclosed in the newspaper designated by the CSRC during the reporting period
4. Place for document inspection: Office of the Board of Directors
Terms and Definitions
Term Definition
The Company, Company, C&S C&S Paper Co., Ltd.
Zhongshun Group Guangdong Zhongshun Paper Group Co., Ltd.
Chung Shun Co. Chung Shun Co., a Hong Kong-based company
Zhongshan Trading Zhongshan Zhongshun Trading Co., Ltd.
Zhong Shun International Zhong Shun International Co., Ltd., a Hong Kong-based company
C&S Hong Kong C&S Hong Kong Co., Ltd., a Hong Kong-based company
Beijing Trading Beijing C&S Paper Co., Ltd.
Xiaogan Trading Xiaogan C&S Trading Co., Ltd.
Chengdu Trading Chengdu Zhongshun Paper Co., Ltd.
Hangzhou Trading Hangzhou Jie Rou Trading Co., Ltd.
Shanghai Trading Shanghai Huicong Paper Co., Ltd.
C&S (Sichuan) Paper Co., Ltd., formerly known as Chengdu Tiantian
Sichuan C&S
Paper Co., Ltd.
Jiangmen C&S Jiangmen Zhongshun Paper Co., Ltd.
Zhejiang C&S Zhejiang Zhongshun Paper Co., Ltd.
C&S (Hubei) Paper Co., Ltd., formerly known as Hubei Zhongshun
Hubei C&S
Hongchang Paper Co., Ltd.
Yunfu C&S C&S (Yunfu) Paper Co., Ltd.
Yunfu Hengtai Trading Co., Ltd., formerly known as C&S (Yunfu)
Yunfu Trading
Trading Co., Ltd.
Tangshan C&S, Tangshan subsidiary C&S Paper Co., Ltd. Tangshan Branch
C&S (Zhongshan) Paper Co., Ltd., formerly known as Zhongshan Tongfu
Zhongshan Paper
Trade Co., Ltd.
Macao C&S C&S (Macao) Co., Ltd.
Dazhou C&S C&S (Dazhou) Paper Co., Ltd.
Sun C&S Sun Daily Necessities Co., Ltd.
Jiangsu C&S C&S (Jiangsu) Paper Co., Ltd.
Dolemi Dolemi Sanitary Products Co., Ltd.
Luzhou Dolemi Luzhou Dolemi Sanitary Products Co., Ltd.
Mianyang Dolemi Mianyang Dolemi Sanitary Products Co., Ltd.
Dazhou Dolemi Dazhou Dolemi Sanitary Products Co., Ltd.
Guiyang Dolemi Guiyang Dolemi Sanitary Products Co., Ltd.
Zhengzhou Dolemi Zhengzhou Dolemi Sanitary Products Co., Ltd.
Xi’an Dolemi Xi’an Dolemi Sanitary Products Co., Ltd.
Zhanjiang Dolemi Zhanjiang Dolemi Sanitary Products Co., Ltd.
Bloomage Jierou Beijing Bloomage Jierou Biotechnology Co., Ltd.
Zhongshun Health Zhongshun Health Life Technology (Shenzhen) Co., Ltd.
Mazars Mazars Certified Public Accountants (LLP)
C&S Paper Co., Ltd. Semi-annual Report 2022
Section II Company Profile and Key Financial Indicators
I. Company Profile
Stock name C&S Stock code 002511
Stock exchange on which the
Shenzhen Stock Exchange
shares are listed
Chinese name of the Company 中顺洁柔纸业股份有限公司
Abbreviation of Chinese name of
中顺洁柔
the Company (if any)
English name of the Company (if
C&S Paper Co., Ltd.
any)
Abbreviation of English name of
C&S
the company (if any)
Legal representative of the
Liu Peng
Company
II. Contact Persons and Contact Methods
Sectary to the Board Representative of securities affairs
Name Zhang Haijun Zhang Xia
No. 136 Caihong Avenue, West District, No. 136 Caihong Avenue, West District,
Address
Zhongshan City Zhongshan City
Tel 0760-87885678 0760-87885678
Fax 0760-87885669 0760-87885669
Email Zhhaijun003@163.com dsh@zsjr.com
III. Other Information
1. Contact information of the Company
Whether there are changes in the Company’s registered address, office address and postal code, website, and
email address during the reporting period
□ Applicable √ Not applicable
The registered and office addresses and their post codes, official website, and email of the Company were not
changed during the reporting period. See the 2021 Annual Report for details.
2. Information disclosure and location for inspection of documents
Where there are changes in information disclosure and location for inspection of documents during the
reporting period
□ Applicable √ Not applicable
There are no changes in the name of the newspaper selected by the Company for information disclosure,
website designated by CSRC for publicizing the semi-annual report, and the location for inspection of the semi-
6
C&S Paper Co., Ltd. Semi-annual Report 2022
annual report during the reporting period. Please refer to the Annual Report 2021 for details.
3. Other Relevant Information
Where there are changes in other relevant information
□ Applicable √ Not applicable
IV. Main Accounting Data and Financial Indicators
Whether the Company needs to perform retrospective adjustment or restatement of accounting data for previous
years
□ Yes √ No
Same period of previous Changes over same period of
Current period
year previous year
Operating income (RMB) 4,367,618,113.61 4,247,641,836.38 2.82%
Net profit attributable to shareholders of 227,639,705.35 407,161,317.15 -44.09%
the listed company (RMB)
Net profit attributable to shareholders of 220,565,031.66 398,988,234.69 -44.72%
the listed company after deducting non-
recurring profit and loss (RMB)
Net cash flow from operating activities 699,549,725.75 737,865,788.19 -5.19%
(RMB)
Basic earnings per share (RMB/share) 0.17 0.31 -45.16%
Diluted earnings per share (RMB/share) 0.17 0.31 -45.16%
Weighted average return on net assets 4.53% 7.98% -3.45%
Changes over end of previous
End of current period End of previous year
year
Total assets (RMB) 7,853,365,188.84 7,523,281,973.84 4.39%
Net assets attributable to shareholders of
the listed company (RMB) 5,036,519,666.94 4,903,552,661.58 2.71%
V. Difference in Accounting Data under Domestic and International Accounting Standards
1. Net profit and net asset differences under International Financial Reporting Standards (IFRS) and
Chinese Accounting Standards (CAS)
□ Applicable √ Not applicable
No such differences for the reporting period
2. Net profit and net asset differences under foreign accounting standards and Chinese Accounting
Standards (CAS)
□ Applicable √ Not applicable
No such differences for the reporting period
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C&S Paper Co., Ltd. Semi-annual Report 2022
VI. Non-recurring Items and Amounts
√ Applicable □ Not applicable
Unit: RMB
Item Amount Description
Profits/losses from the disposal of non-current asset
(including the write-off that accrued for impairment of -2,323,301.55
assets)
Governmental grants reckoned into current profits/losses
(not including grants enjoyed in quota or ration according
12,351,174.47
to national standards, which are closely relevant to the
company’s normal business)
Profits/losses from assets entrusted to others for Returns on principal-protected
183,493.42 wealth management products at
investment or management
maturity
Other non-operating income and expenses except
-1,367,709.56
for the aforementioned items
Less: Influence of income tax 1,768,983.09
Total 7,074,673.69
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□ Applicable √ Not applicable
The Company has no other profit and loss items that meet the definition of non-recurring profit and loss.
Descriptions where the Company defines any non-recurring profit and loss items listed in the No. 1 Explanatory Announcement on
Information Disclosure of Companies Offering Securities to the Public—Non-recurring Profit and Loss as recurring profit and loss
items during the reporting period
□ Applicable √ Not applicable
The Company did not define any non-recurring profit and loss items listed in the No. 1 Explanatory Announcement on Information
Disclosure of Companies Offering Securities to the Public—Non-recurring Profit and Loss as recurring profit and loss items
during the reporting period.
8
C&S Paper Co., Ltd. Semi-annual Report 2022
Section III Discussion and Analysis of the Management
I. Principal Businesses of the Company during the Reporting Period
Main Products
Mr. Deng Yingzhong, founder of the Company, initiated his entrepreneurial process in 1979. Starting from
intensive paper processing, the Company has developed into a diversified group company integrating R&D,
production and sales after forty plus years of striving. It is among the first batch of household paper companies
listed on China A-shares. The Company, with an adherence to the business philosophy of “building product,
enterprise and professional brands”, practices the “All We Care Is You” value proposition and continues to provide
consumers with healthy, safe, environmental-friendly, comfortable and convenient products and services.
Currently the Company features three major brands, namely C&S, Sun and Dolemi. Main products include toilet
paper, facial tissues, paper handkerchiefs, napkins, wet wipes, kitchen tissues, personal care products (sanitary
pads), baby diapers, facial towels, etc. Specifics are given in the following:
(I) Household paper
Face series: Face series are soft, delicate and pliable. Being wettable, the products can be used as face towels.
Among them, the oil painting series combine quality and artistry and are therefore praised as “artwork of paper
tissues”.
Lotion series: Specially developed for female and infant consumers, the products contain moisturizing cream.
With selected high-quality 100% virgin wood pulp and quality moisturizing cream, the paper is soft, delicate and
smooth. It is the professional moisturizing facial tissue brand trusted by consumers.
Natural Wood series: Made of 100% imported virgin wood pulp, the products are soft and pliable and meet the EU
and U.S. requirements for food contact material testing. Consumers can feel rest assured for its high quality.
C&S Jin Zun series: The products are made from 100% imported raw wood pulp and the paper is thick, pliable,
and reliable.
Sun series: The products use 100% virgin wood pulp. Targeting at the youth market, the brand serves as a
powerful supplement to the Company’s primary brand “C&S”.
Wipe series: The Company offers a variety of wet wipe products catering to different user groups (including but
not limited to adults, children and infants) and different purposes (including but not limited to c leasing wipes, wet
toilet paper and wet wipes for equipment use). From basic skin cleansing to advanced care, the series can meet
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C&S Paper Co., Ltd. Semi-annual Report 2022
increasingly segmented demands and provide a better experience to consumers.
Kitchen towel series: Using 100% virgin wood pulp, the kitchen paper towels boast stronger oil-absorption and
water-absorption power and are up to the EU and U.S. Requirements for food contact material testing, thereby
better satisfying the multi-functional wiping needs of households. Meanwhile, the kitchen wet wipes boast
expedite decontamination power without hurting hands.
(II) Personal care products
The Company streamlined the personal care product business and anchored a new track for business development.
It is committed to offering healthy life solutions with products + services for the whole family and all life
scenarios. Revolving around the “Healthy Life” brand matrix, the Company hopes to re-create brand values. In
addition, the Company has built self-operated online sales channels for care products based on e-commerce
platforms to achieve omni retail.
(III) Quality health products
Cleansing towel series: To address user pain points, the products make constant innovations in technology,
materials and craftsmanship and select 100% plant cellulose fibers. The thicker 100g Cleaning Towel series have
been introduced, which are committed to offering the optimal experience to consumers.
Business travel series: With the change of lifestyle, the Company understands that people are increasingly
concerned about the hygiene problem during business travels. In view of this, it has developed the business travel
series such as disposable compressed towels, rinse-free antibacterial hand sanitizers, alcohol sanitary pads, etc.
These products are easy to carry, clean and hygienic and can guard the health of consumers anytime, anywhere.
Among them, disposable compressed towels, disposable bath towels, etc. are made of plant fibers that are natural,
environmental friendly and degradable. They really make travel easy.
Household series: The kitchen towels adopt advanced ultrasonic non-adhesive composite technology and double-
sided texture design, with stronger water and oil absorption. With an ultra-high volume of 140 g/m2, the products
are strong, tough, scrub-resistant, and not easy to flocculate and deform. In addition, the products are up to EU
and U.S. requirements for food contact material testing.
Mask series: Since the outbreak of the pandemic in 2020, in response to the call of the government, the Company
started to produce masks to meet the demands for anti-pandemic materials. Its medical surgical masks feature
“efficient filtration, low breathing resistance and comfortable wearing”. In the future, C&S will continue to escort
the breathing health of consumers.
(IV) Commercial channel products
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C&S Paper Co., Ltd. Semi-annual Report 2022
In addition to home use, the commercial channel products target at wider use scenarios such as office buildings,
government departments, enterprises and institutions, factories, airports, hotels, restaurants, entertainment venues,
department stores, etc. We offer a full range of cleansing and sanitation solutions and may customize products and
services according to customer needs.
Development Trends of the Industry
Under the influence of the pandemic, the economy at large encountered great downward pressure. Meanwhile, the
household paper industry faced a certain degree of operating pressure due to multiple factors such as rising raw
material prices, fierce market competition, and unsmooth global supply chain. The excess capacity formed by the
rapid growth in recent years and the large production capacity base of the entire industry have slowed down its
pace of growth. Despite so, the growth rate in China will still surpass the global average. The competition in
China’s household paper industry is still fierce and industry concentration will be further strengthened. With
enhanced awareness on the concept of healthy living, consumers pay increasing attention to brands. Product
quality is still a prominent concern in the industry.
Market Position
The Company has become one of the representative brands of high-end household paper in the market through
continuous brand building and quality assurance as well as robust production capacity layout and channel
expansion. It is ranked among the first echelon in the household paper industry and is well recognized by
consumers and the market. In addition, with an adherence to the value concept of “All We Care Is You”, the
Company continues to tap consumer needs and constantly upgrades and optimizes products with leverage on its
strong R&D and innovation capabilities. The Company is committed to providing consumers with products of
better quality, more comfort, and more tailored to their individual needs. The Company aims to achieve national
product coverage which is underpinned by continuously improving product reputation among consumes and
consolidating brand awareness.
Key Performance Drivers
The situation of pandemic prevention and control was still challenging while the international political and
economic environment remained complex during the first half of 2022. Under the influence of factors such as
continual rise in raw material prices, increasingly intensified market competition, economic downturn and weak
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C&S Paper Co., Ltd. Semi-annual Report 2022
consumption, the household paper industry faced certain pressure and challenges in the short run. The
management of the Company actively responded to such a severe situation through a series of actions like
continued optimization of category structure, product innovation and upgrading, intensive cultivation of lower-
tier markets, and improvement of operational efficiency and management level. During the reporting period, the
Company recorded total revenue of RMB4.3676181 billion, up by 2.82% over the same period of previous year;
the net profit attributable to shareholders of the listed company was RMB227.6397 million, a decrease of
44.09% over the same period of previous year. Changes in performance are mainly owing to the following
factors:
1. Logistics and transportation in some areas of China were not smooth due to pandemic control, which affected
the Company's sales to a certain extent. In view of this, the Company quickly made a summary and adjusted the
channel sales strategy. The EC channel performed well during the “618” Shopping Festival. The Company
posted an operating income of RMB2.4832788 billion in the second quarter, up by 15.74% over the same period
of last year.
2. Rising raw material prices have led to an increase in production costs. The Company has implemented a price
adjustment policy since the first quarter of 2022, but it did not fully offset the increase in raw material costs.
Combined with the weak consumer market and fierce market competition, the gross profit margin showcased a
slight year-on-year decrease.
During the reporting period, the Company has been actively constructing digital transformation infrastructure,
optimizing internal processes, and improving the level of refined management. Efforts have been made to
further increase the sales of high-end and high-margin products through continual optimization of product
structure and expansion of product categories. The multi-dimensional, high-quality systematic linkage has
helped to improve the overall operational and synergistic efficiency, reduce costs and increase efficiency,
thereby laying a solid foundation for the long-term and healthy development of the Company.
II. Analysis of Core Competitiveness
1. Belonging to the first echelon of the domestic household paper industry
The Company is a top-performing enterprise in the first echelon of the domestic household paper industry with
products available at all channels and both at home and abroad. In addition, it actively taps overseas markets
including Southeast Asia, North Asia, Australia, the Middle East, and North America.
2. Constantly optimized product structure and continuously improved product competitiveness
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C&S Paper Co., Ltd. Semi-annual Report 2022
The Company boasts three major brands, namely C&S, Sun and Dolemi. Main products include paper rolls,
coreless rolls, facial tissues, tissue handkerchiefs, wipes (including wet toilet paper), personal care products, baby
diapers, face towels, kitchen towels, etc.
The Company continues to optimize product structure and increase the sales proportion of high-end, high-margin
products and non-roll categories. Efforts have been stepped up for the terminal sales of the Oil Painting, Face,
Lotion and other high-end, high-margin series. Precise brand marketing strategy combined with multi-channel
sales layout will help improve the distribution and penetration of high-end, high-margin products, drive the
growth of their shares, and hence steadily improve the profit margin and profitability of products.
In the context of COVID-19, consumers become increasingly concerned of health protection, which has driven
their differentiated demands for high-end tissue paper. In view of this, C&S has grasped the changing trend of the
market and precisely developed alcohol wet wipes, sanitary wipes, facial cleansing towel, compressed towel,
disposable bath towel, mouthwash, mask and other non-traditional dry wipe products. In addition, high-end, high-
margin non-traditional dry wipes have been positioned as a strategic category that will be prioritized in the future.
3. Professional and effective management team
The R&D, production, procurement, quality control, marketing and sales teams have successively introduced
excellent professionals since 2014. At present, the Company boasts the most outstanding R&D, production,
branding and marketing teams in the industry. As such, its new product R&D, product quality, branding, sales and
marketing have been effectively solidified. Most of the mid-level managers of the marketing team are core,
backbone employees who have served in the Company for more than five years, with high sense of loyalty and
strong professional competence. They can lead sales teams to work hard according to the strategic goals of the
Company and promote the healthy and stable development of various business indicators. The management team
of the Company has formulated long-term and strategic plans in line with actual situation of the Company,
industry development level, and market demands. Moreover, the management team is capable of making
reasonable decisions on operation management issues with relation to R&D, production, marketing, investment
and financing, and effectively implementing such decisions. The excellent management team fundamentally
guarantees the Company’s competitiveness and sustainable development in the future.
4. Nationwide marketing network
The Company has been building and improving its marketing networks with reasonable layout based on its keen
and strategic insights. It has guaranteed its profitability by expanding its channels from a single dealer channel in
2015 to five channels at present, i.e. GT (General Trade), KA (Key Account), AFH (Away From Home), EC (E-
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C&S Paper Co., Ltd. Semi-annual Report 2022
Commerce), and RC (Retail Consumer). Its current marketing network covers most of the prefecture-level (and
county-level) cities. Products are directly sold to counties and then distributed to towns. This helps achieve
segmented and flat market operation and expand the dealer network.
Additionally, while ensuring the smooth operation of other channels, the Company has established a professional
e-commerce operation team, devoted more resources to e-commerce platforms, built and strengthened the
corresponding supply chain system, and intensified its routine operation management. At present, it has cemented
long-term strategic cooperation with mainstream well-known platforms. The Company has strengthened the
layout of emerging business models such as new retail, O2O and content marketing, while efforts have been
stepped up for livestream shopping and community group buying. In addition, it has developed an AFH service
team for AFH channels and customer bases to match the growing AFH market. In response to the market changes
of modern KA channels, the Company actively adjusts strategies and strives to improve efficiency and
effectiveness of resource inputs.
Attributable to a robust sales network plus quality and diversified products, the Company is able to constantly
consolidate its market basis, improve consumer experience, and enhance brand reputation, which can help achieve
sustainable and stable growth in the future.
5. Nationwide layout of production bases
The Company has developed a production layout covering East China, South China, West China, North China,
and Central China, through its subsidiaries including Jiangmen C&S, Yunfu C&S, Sichuan C&S, Zhejiang C&S,
Hubei C&S, and Tangshan Subsidiary. Thanks to the nationwide layout of production bases, the Company has
narrowed the distance to customers, reduced transportation costs, and enhanced transportation efficiency.
6. Product quality at an international level
The Company has always regarded product quality as its lifeline of survival and development ever since its
incorporation. First-class quality derives from first-class raw materials. Raw materials of the Company have
passed the ISO quality management system certification. Besides strict feed inspection procedures, it has
introduced HACCP food hygiene and safety management system to control the hygiene and quality of products
from the source. Moreover, its products have passed ISO9001 quality management system certification which is
the strictest detecting system for product quality. The Company has observed internationally-advanced quality
management system standards and utilized advanced processes, formulas, and control procedures in production to
ensure each technical performance indicator.
7. Good R&D capabilities
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C&S Paper Co., Ltd. Semi-annual Report 2022
The Company is equipped with a complete product development system and the R&D department boasts strong
independent R&D capabilities and excellent product formula technologies. In recent years, the Company has
continuously upgraded and optimized its products, in a bid to provide consumers with products that are of better
quality, more comfortable and more aligned with their individual needs. Products of the Company have extended
from household paper to cross-category household daily necessities including cleansing towel series, sanitary
wipes, baby diapers, etc. The Company’s speed of bringing forth new products is at the forefront of the industry.
8. Advanced production equipment
The Company drives development with technological progress and has introduced advanced papermaking
equipment and processing equipment from Austria, Germany, Italy, Japan and other countries. The diversified
equipment can produce a variety of products that can meet the differentiated needs of consumers. As a first-tier
enterprise, the Company occupies a leading position in the industry when it comes to the scale and automation of
production equipment. Advanced technology and highly automated equipment have strengthened the Company’s
efficiency, further satisfied ever-growing market demands, and served as an unstoppable driving force to
development.
9. Outstanding environmental protection awareness and technology
Along with the deepening of industrialization, the concept of environmental protection has been deeply rooted
among the people. The Company has adhered to the concept of "seeking green benefits and fulfilling corporate
social responsibilities", and utilized advanced environmental protection technologies to pursue its objective of
environmental protection. Its waste water and gas emissions are superior to the national standards. The Company
actively fulfills its corporate social responsibilities and actively responds to China’s strategic goals of “carbon
peaking” in 2030 and “carbon neutrality” in 2060 by fully supporting and enforcing various environmental
protection requirements of the government. In the future, the advantages and anti-risk capabilities of C&S in
energy conservation and emission reduction will be further highlighted.
III. Analysis of Principal Businesses
Overview
Please refer to relevant contents in “I. Principal Businesses of the Company during the Reporting Period”.
YoY changes in major financial data
Unit: RMB
Same period of
Current period YoY changes Reason of change
previous year
Operating income 4,367,618,113.61 4,247,641,836.38 2.82%
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C&S Paper Co., Ltd. Semi-annual Report 2022
Operating cost 2,929,313,606.05 2,562,244,166.21 14.33%
Selling expenses 874,040,563.35 915,478,651.72 -4.53%
Administrative
180,176,434.40 165,200,078.38 9.07%
expenses
Finance expenses -1,467,050.22 -1,803,144.04 18.64%
Income tax expenses: This
item recorded a decrease of
RMB 47,366,073.26 or
58.40% in the reporting
Income tax expenses 33,733,447.46 81,099,520.72 -58.40%
period compared with the
same period of 2021, mainly
due to the decrease in total
profit in this reporting period.
R&D investment 105,182,287.61 97,414,812.32 7.97%
Net cash flow from
699,549,725.75 737,865,788.19 -5.19%
operating activities
Net cash flow from
-247,770,733.81 -267,293,095.91 7.30%
investing activities
Net cash flow from financing
activities: This item recorded
an increase of RMB
868,846,308.99 or 106.52%
Net cash flow from in the reporting period
53,218,634.40 -815,627,674.59 106.52%
financing activities compared with the same
period of 2021, mainly due to
the increase in the payment of
repurchased shares during the
reporting period.
Net increase in cash
517,377,489.31 -348,809,933.39 248.33%
and cash equivalents
Whether there are significant changes in the profit composition or source of profits of the Company during the
reporting period
□ Applicable √ Not applicable
There were no significant changes in the profit composition or source of profits of the Company during the
reporting period.
Composition of operating income
Unit: RMB
Current period Same period of previous year
Proportion in Proportion in YoY changes
Amount Amount
operating income operating income
Total operating
4,367,618,113.61 100% 4,247,641,836.38 100% 2.82%
income
By industry
Household paper 4,265,944,826.39 97.67% 4,082,881,792.19 96.12% 4.48%
Personal care 27,927,417.65 0.64% 40,295,818.30 0.95% -30.69%
Others 73,745,869.57 1.69% 124,464,225.89 2.93% -40.75%
By product
Finished products 4,268,648,501.31 97.73% 4,116,080,985.46 96.90% 3.71%
Semi-finished
25,223,742.73 0.58% 7,096,625.03 0.17% 255.43%
products
Others 73,745,869.57 1.69% 124,464,225.89 2.93% -40.75%
By region
Domestic 4,269,777,280.85 97.76% 4,149,892,689.00 97.70% 2.89%
Overseas 97,840,832.76 2.24% 97,749,147.38 2.30% 0.09%
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C&S Paper Co., Ltd. Semi-annual Report 2022
Industries, products, or regions that accounted for over 10% of the Company’s operating income or operating
profit
√ Applicable □ Not applicable
Unit: RMB
Gross YoY changes YoY changes of
YoY changes of
Operating income Operating cost profit of operating operating gross
operating cost
margin income profit margin
By industry
Household
4,265,944,826.39 2,847,927,585.27 33.24% 4.48% 16.77% -7.02%
paper
By product
Finished
4,268,648,501.31 2,840,891,217.48 33.45% 3.71% 15.63% -6.86%
products
By industry
Household
4,269,777,280.85 2,865,342,359.21 32.89% 2.89% 14.37% -6.74%
paper
Where the statistical standards for the Company’s principal business data were adjusted in the reporting period,
whether principal business data of the Company in the recent period were adjusted as per statistical standards at
the end of the reporting period
□ Applicable √ Not applicable
Reasons for YoY changes of relevant data over 30%
□ Applicable √ Not applicable
IV. Analysis of Non-principal Businesses
√ Applicable □ Not applicable
Unit: RMB
Proportion in total Is it consistently
Amount Explanation of reason
profit applied?
Returns on principal-
protected wealth
Investment income 183,493.42 0.07% No
management products at
maturity
Profit and loss from Profit or loss from changes
-2,538.48 -0.00% No
changes in fair value in stocks
Provision for impairment of
Asset impairment -1,026,689.87 -0.39% No
inventories
Income from fine and
Non-operating income 1,914,737.14 0.73% compensation, others and No
Government grants
External donations and
Non-operating expense 5,989,215.49 2.29% No
others
V. Analysis of Assets and Liabilities
1. Significant changes in the composition of assets
Unit: RMB
End of current period End of previous year Proportion Explanation of
Amount Proportion Amount Proportion changes significant changes
17
C&S Paper Co., Ltd. Semi-annual Report 2022
in total in total Amount Proportion in total
assets assets assets
Monetary funds: This
item recorded an
increase of RMB
575,737,303.28 or
65.79% in the reporting
period compared with
Monetary funds 1,450,789,796.40 18.47% 875,052,493.12 11.63% 6.84%
the end of 2021, mainly
owing to the increase in
net cash flow from
operating activities
during the reporting
period.
Accounts
1,117,200,068.59 14.23% 1,177,831,399.28 15.66% -1.43%
receivable
Inventory 1,193,701,905.65 15.20% 1,467,631,516.95 19.51% -4.31%
Investment
32,420,039.64 0.41% 33,138,481.74 0.44% -0.03%
property
Fixed assets 3,120,455,256.80 39.73% 3,129,371,506.40 41.60% -1.87%
Construction work in
progress: This item
recorded a decrease of
RMB 52,410,682.76 or
38.86% in the reporting
period compared with
Construction the end of 2021, mainly
work in 82,465,014.18 1.05% 134,875,696.94 1.79% -0.74% owing to the fact that
progress certain construction
work in progress
reached the usable state
and were thereby
transferred to fixed
assets during the
reporting period.
Right-of-use
12,668,746.74 0.16% 14,300,520.77 0.19% -0.03%
assets
Short-term borrowing:
This item recorded an
increase of RMB
242,000,000 or
100.00% in the
reporting period
Short-term
242,000,000.00 3.08% 3.08% compared with the end
borrowing
of 2021, mainly owing
to the increase in
advance discount of
bank acceptance bills
during the reporting
period.
Contract liabilities: This
item recorded a
decrease of RMB
Contract
53,611,707.18 0.68% 164,360,443.34 2.18% -1.50% 110,748,736.16 or
liabilities
67.38% in the reporting
period compared with
the end of 2021, mainly
18
C&S Paper Co., Ltd. Semi-annual Report 2022
owing to the decrease in
advances received from
customers during the
reporting period.
Lease liabilities 5,368,471.00 0.07% 5,565,928.14 0.07% 0.00%
2. Main overseas assets
□ Applicable √ Not applicable
3. Assets and liabilities measured at fair value
□ Applicable √ Not applicable
4. Restriction of asset rights as at the end of the reporting period
Item Book value at the end of the period (RMB) Reason for restriction
Monetary funds 135,614,631.39 Security deposits for issuing letter of credit and notes
Total 135,614,631.39
VI. Analysis of Investment
1. Overview
√ Applicable □ Not applicable
Investment amount during the reporting Investment amount of previous year
Changes
period (RMB) (RMB)
298,095,067.10 328,193,755.53 -9.17%
2. Major equity investment during the reporting period
□ Applicable √ Not applicable
3. Major non-equity investment during the reporting period
□ Applicable √ Not applicable
4. Financial asset investment
(1) Security investment
□ Applicable √ Not applicable
The Company did not invest in securities during the reporting period.
19
C&S Paper Co., Ltd. Semi-annual Report 2022
(2) Derivative investment
□ Applicable √ Not applicable
The Company did not invest in derivatives during the reporting period.
5. Use of raised funds
□ Applicable √ Not applicable
No raised funds were used by the Company during the reporting period.
VII. Major Asset and Equity Sales
1. Sales of major assets
□ Applicable √ Not applicable
The Company did not sell major assets during the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
20
C&S Paper Co., Ltd. Semi-annual Report 2022
VIII. Analysis of Main Holding and Joint-stock Companies
√ Applicable □ Not applicable
Description of main subsidiaries and of joint-stock companies which have influence on the Company’s net profit by over 10%
Unit: RMB
Company
Company name Principal businesses Registered capital Total assets Net assets Operating income Operating profit Net profit
type
R&D, production, and sales (including online
sales): household paper, maternal and infant
products, cosmetics, wipes, non-woven products,
daily necessities, and cleaning supplies; sales
(including online sales) of Class I and II medical
Jiangmen C&S Subsidiary devices. (The above items do not involve special RMB345,985,032 1,858,504,466.79 1,450,072,337.96 739,175,258.27 47,468,924.39 39,547,311.78
management measures for the foreign access). (For
items that must be approved in accordance with the
law, the company may carry out business
operations upon approval by competent
departments.)
R&D, production, wholesale, retail and online
sales: household paper, sanitary products, maternal
and infant products, daily necessities, cosmetics,
medical devices, sanitary materials, non-woven
fabrics and products, polymer materials and
products, daily sundries, and disinfection supplies
(excluding hazardous chemicals); wholesale, retail
and online sales: food; import and export of goods
Yunfu C&S Subsidiary and technologies (excluding the import and export RMB650 million 2,113,823,321.16 1,320,141,010.64 1,589,799,453.81 134,116,759.75 113,517,664.20
of goods and technologies prohibited by the State
or involving administrative approval); warehousing
services (limited to warehouses qualified in fire
protection without hazardous chemicals). (For
items that must be approved in accordance with the
law, the company may carry out business
operations upon approval by competent
departments.)
Sichuan C&S Subsidiary Licensed items: production of sanitary products and RMB100 million 933,182,566.61 628,181,542.11 983,922,637.58 43,969,091.92 39,599,701.12
21
C&S Paper Co., Ltd. Semi-annual Report 2022
disposable medical supplies; import and export of
goods (for items that must be approved in
accordance with the law, the company may carry
out business operations upon approval by
competent departments, and the specific business
items are subject to the approval document or the
permit issued by relevant department). General
items: sales of sanitary products and disposable
medical supplies; sales of personal hygiene
products; sales of daily necessities; manufacture of
paper products; sales of paper products;
manufacture of paper; manufacture of daily
chemical products; sales of daily chemical
products; sales of Class II medical devices; sales of
Class I medical devices; manufacture of industrial
textile products; sales of industrial textile products;
manufacture of maternal and infant products; sales
of maternal and infant products. (The company may
carry out business operations independently
according to the law based on the business license,
except for items that must be licensed according to
the law.)
Licensed items: production of sanitary products and
disposable medical supplies; production of
cosmetics (for items that must be approved in
accordance with the law, companies may carry out
business operations upon approval by relevant
departments, and the specific business items are
subject to the approval document or the permit
issued by competent department). General items:
Hubei C&S Subsidiary sales of sanitary products and disposable medical RMB200 million 1,719,230,506.18 503,409,804.43 984,047,835.32 54,254,655.30 42,420,266.07
supplies; retail of cosmetics; wholesale of
cosmetics; manufacture of paper; sales of personal
hygiene products; sales of knitwear; manufacture of
maternal and infant products; sales of maternal and
infant products; sales of paper products;
manufacture of paper products; sales of daily
necessities; sales of daily chemical products; sales
of disinfectants (excluding hazardous chemicals);
22
C&S Paper Co., Ltd. Semi-annual Report 2022
Internet sales (excluding the sales of commodities
requiring a permit); sales of Class I medical
devices; sales of Class II medical devices; import
and export of goods and technologies (excluding
the import and export of goods and technologies
prohibited by the State or involving administrative
approval). (For items that must be approved in
accordance with the law, the company may carry
out business operations upon approval by
competent departments.)
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable √ Not applicable
Description of main holding and joint-stock companies
None
23
C&S Paper Co., Ltd. Semi-annual Report 2022
IX. Structured Entities Controlled by the Company
□ Applicable √ Not applicable
X. Risks Faced by the Company and Countermeasures
1. Risk of great fluctuations in pulp prices
Pulp is an international bulk raw material and its price is obviously affected by the world economic cycle. With
the repeated outbreak of the pandemic, pulp imports were restricted by factors such as unstable shipping schedules
and blocked transportation. Coupled with factors such as RMB appreciation, buying inflation and mismatch
between supply and demand, pulp prices first surged and then eased back. Pulp is the primary raw material of the
Company’s production, accounting for 40%-60% of the total production costs. Therefore, substantial fluctuations
in pulp prices pose a risk to the Company.
The Company is equipped with a professional procurement team which, on the premise of ensuring normal
production inventory, adjusts the purchase rhythm by professionally evaluating the future trend of pump boards
and coordinating the market conditions of international pulp prices. The Company has cemented long-term supply
contracts with pulp suppliers that have large production scale, abundant forest resources and advanced production
technologies to ensure stable raw material procurement. It has established a global procurement network with
purchases in Europe, North America, South America, etc.
2. Risk of exchange rate
The import of machinery equipment and pulp and the export of products to overseas market of the Company are
mainly settled in USD, HKD, and EUR. Since exchange rates fluctuate under the impact of the international
economic situation, the Company faces exchange rate risks.
The Company pays close attention to changes in the foreign exchange market on a daily basis and hedges against
exchange losses brought by RMB depreciation or two-way fluctuations by adjusting the structure of foreign
currency assets and liabilities and reducing overall foreign currency liabilities. In addition, the Company started to
adopt the spot selling rate accounting for foreign currency transactions since 2015 in accordance with its actual
needs and in compliance with foreign exchange requirements. In this way, the Company may choose to buy
foreign currency and pay for the goods at a rate favorable to the Company at an appropriate time.
Furthermore, the Company hedges against and avoids exchange rate risks via centralized management of foreign
exchange funds, purchase payment hedging, etc. based on changes in the foreign exchange market and actual
24
C&S Paper Co., Ltd. Semi-annual Report 2022
development of the Company. With regard to exchange rate risk exposure, the Company also uses hedging and
other financial tools to conduct reasonable risk management.
3. Risk of regional market competition
Household paper is a vast market in China in terms of both geography and market space. Given the low unit value,
transportation expenses taking up a large part of the sales price, and limitations of the transportation radius, the
main competition in the household paper industry lies in regional markets. High-end, mid-end, and low-end
products compete in regional markets, with the influence of spending power and consumption habit. Judging from
the development trend of the industry, mid- and high-end household paper of national brands has more
competitive edge. However, at present, some regional brands have an advantage in some regional markets.
Compared with overseas counterparts, China’s household paper industry requires continued integration. The
Company embraces production bases and a sales network across the country and offers mid- and high-end
products under national brands. Nevertheless, it is inescapable from the risk of regional market competition.
After years of development, the Company has become one of the leading companies in the domestic household
paper industry. It has built a marketing network covering most prefecture (county) level cities and a production
base with national presence. As a result, transportation costs can be effectively reduced and transportation
efficiency effectively improved by shorting the distance with consumers. As the Company continues to deepen
and expand sales channels, it will gradually cover untapped outlets. In the future, in response to market
competition, the Company will strengthen channel sinking, increase market penetration, further expand its scale,
and further improve its overall market competitiveness and shares.
4. Risk of industrial policies
Stricter requirements have been raised for the papermaking industry in the aspects of scale, technology,
equipment, and environmental protection, as multiple industry plans and supporting policies have been
successively issued by relevant departments, including the Papermaking Industry Development Policy, the Notice
on the Management of Elevated Source Pollution Discharge Permits in Thermal Power and Papermaking
Industries and Pilot Cities of Beijing-Tianjin-Hebei Region, and the Opinions of China Paper Association on
“Thirteenth Five-year” Development Plan of the Papermaking Industry. Particularly, a number of measures have
been introduced through environmental protection policies to drive the all-round, coordinated, and sustainable
development of the household paper industry, including 1) optimizing the industrial distribution to reasonably
allocate resources and promoting clean production to preserve the ecological environment; 2) pushing energy
conservation and emission reduction to shut down outdated production facilities, and adjusting product structure
25
C&S Paper Co., Ltd. Semi-annual Report 2022
and improving product quality; 3) developing resource-saving models to advocate green consumption; and 4)
optimizing enterprise structure and driving M&A and restructuring. These policies are designated to strengthen
household paper industry concentration, close backward production facilities, and optimize resource allocation.
The Company, as an enterprise in the first echelon of the domestic household paper industry, is underpinned by
national policies related to the sustainable development of the household paper industry. Precisely because of this,
industrial policy adjustment, if any, will impact the production and operations of the Company to some extent.
In the face of increasing stringent environmental protection policies, as a responsible domestic enterprise in the
household paper industry, the Company and its subsidiaries strictly abide by environmental protection laws and
regulations of the state and local governments. Production bases are equipped with state-of-the-art papermaking
equipment, processing equipment and environmental protection treatment equipment and facilities, and adopt
advanced environmental protection technologies. With continuous capital and technological inputs and
improvement in pollution control of the production process, the Company strives to reduce environmental
pollution and ensure green production. The Company will continue to optimize production efficiency in response
to requirements of national industrial policies.
5. Risk of safe production
Most of the materials involved in the household paper industry are flammable, including the main raw material of
pulp, the main packing materials of plastic-film packing bags and cartons, the semi-finished product of body
paper, and finished products. Due to the characteristics of low unit value and large market consumption,
household paper manufacturers have to keep a mass of pulp, packing materials, and semi-finished and finished
products from the entry of raw materials into the plant to the delivery of products to the market. Thus, fire can
cause enormous losses to such manufacturers. In addition, a large number of production lines have been put into
use, which may pose certain occupational health hazard and cause harm to the occupational health of employees.
Even though the overall safe production risk of the Company is controllable, it still faces certain safe production
risks.
In view of this, the Company has formulated strict fire management regulations for raw materials and semi-
finished and finished products, established a full-time safety management department, equipped adequate fire
protection equipment in production areas, and bought full insurance for risky properties. As such, the Company’s
fire safety risk is low. In response to possible occupational health hazards, the Company, at the equipment design
and procurement stages, requires suppliers to carry out intrinsic safety design and fulfill the protection measures
during the installation process. At the same time, the Company has passed the ISO45001 occupational health and
26
C&S Paper Co., Ltd. Semi-annual Report 2022
safety (OHS) management system and continues to maintain its effective operations to reduce the occupational
health and safety risks of employees.
6. Risk of logistics transportation
The spread of the COVID-19 pandemic has hindered domestic and foreign logistics transportation by sea and land
to varying degrees, affecting both the Company’s procurement and sales and upstream suppliers and downstream
dealers. In other words, the Company has suffered from multiple dimensions. Though impacts of the pandemic are
phased and temporary, risks are unavoidable for the Company as being at the mid- and downstream of the
household paper industry chain.
The Company has quickly formulated response strategies during the pandemic and actively coordinated supply
chain allocation. In terms of supply, the Company flexibly adjusts supply area based on the optimal principle to
guarantee adequate goods supply to customers. In terms of logistics, the Company implements integrated
management for logistics and warehouses as well as production and sales under the premise of well taking safety
precautions. Personnel in all positions are asked to stick to their posts and maintain close communication with
sales to assure smooth logistics to the greatest extent.
27
C&S Paper Co., Ltd. Semi-annual Report 2022
Section IV Corporate Governance
I. Annual General Meeting and Extraordinary General Meetings Held during the Reporting
Period
1. Shareholder meetings during the reporting period
Ratio of
Session of Date of Date of
Type investor Resolutions of the meeting
meeting convening disclosure
participation
Deliberated and approved: 1. Proposal on the 2021
Annual Report and Its Summary; 2. Proposal on the
2021 Work Report of the Board of Directors; 3.
Proposal on the 2021 Work Report of the Board of
2021 Annual
Annual Supervisors; 4. Proposal on the 2021 Final
General May May
general 52.75% Financial Accounts; 5. Proposal on 2021 Profit
Meeting of 19,2022 20,2022
meeting Distribution Plan; 6. Proposal on the
Shareholders
Remuneration of Senior Management in 2021; 7.
Proposal on the Remuneration of Supervisors in
2021;8. Proposal on Amending the Articles of
Association of the Company.
Deliberated and approved: 1. Proposal on
Continued Engagement of the Accounting Firm;2.
2022 First Extraordinary Proposal on the Repurchase and Deregistration of
Extraordinary general July July Partial Restricted Stocks Awarded in the First
51.90%
General meeting of 5,2022 6,2022 Grant under the Company’s 2018 Stock Option and
Meeting shareholders Restricted Stock Incentive Plan;3. Proposal
onRreducing the Registered Capital and Amending
the Articles of Association of the Company.
2. Extraordinary general meetings of shareholders proposed to be convened by preferred shareholders
whose voting rights were resumed
□ Applicable √ Not applicable
II. Changes in Directors, Supervisors and Senior Management of the Company
√ Applicable □ Not applicable
Name Position Type Date Reason
Resign from the company for
Liu Jinfeng Director, Vice President Resigned March 23,2022
personal reasons
Resign from the company for
Deng Wenxi Vice President Resigned June 10,2022
personal reasons
III. Profit Distribution and Conversion of Capital Reserve to Share Capital during the
Reporting Period
□ Applicable √ Not applicable
28
C&S Paper Co., Ltd. Semi-annual Report 2022
The Company plans not to distribute cash dividend, issue bonus share, or transfer capital reserve into share
capital for the half year.
IV. Implementation of the Stock Incentive Plan, Employee Stock Ownership Plan, and
Other Employee Incentives of the Company
√ Applicable □ Not applicable
1. Equity incentive
During the reporting period, the implementation of the equity incentive plan was as follows:
On November 30, 2021, the Company convened the 12th meeting of the fifth session of the Board of Directors
and the 7th meeting of the fifth session of the Board of Supervisors, which considered and approved the Proposal
on the Repurchase and Deregistration of Partial Reserved Restricted Stocks under the Company’s 2018 Stock
Option and Restricted Stock Incentive Plan was reviewed and approved. The reserved restricted shares
disregistiated this time involved 17 incentive employees, and the total number of shares repurchased and
disregistiated was 139,428, accounting for 0.01% of the total share capital of the Company before deregistration.
The above-mentioned restricted shares have been disregistiated in Shenzhen Branch of China Securities
Depository and Clearing Corporation Limited on March 14, 2022.
On April 26, 2022, the Company convened the 13th meeting of the fifth session of Board of Directors and the
8th meeting of the fifth session of the Board of Supervisors, which considered and approved the Proposal on
Deregistration of Stock Options that Were Not Exercised After the Expiration of the Second Exercise Period of
Stock Options First Granted under the Company's 2018 Stock Option and Restricted Stock Incentive plan.
During the second exercise period (from June 30, 2021 to February 28, 2022) of the stock options granted for
the first time in the Company's 2018 equity incentive plan, 4 incentive employees have not exercised during the
exercise period, and a total of 2,400 stock options have to be disregistiated. The above stock options have been
disregistiated in Shenzhen Branch of China Securities Depository and Clearing Corporation Limited on May 17,
2022.
On June 16, 2022, the Company convened the 14th meeting of the fifth session of the Board of Directors and the
9th meeting of the fifth session of the Board of Supervisors, which considered and approved the Proposal on
Achieving the Unlock Conditions of the Third Unlock Period for First granted Restricted Stocks under the
Company’s 2018 Stock Option and Restricted Stock Incentive Plan, the Proposal on Adjusting the Exercise Price
of Stock Options under the 2018 Stock Option and Restricted Stock Incentive Plan, the Proposal on Repurchase
and Deregistration of Some Restricted Shares Granted for the First Time under the Company's 2018 Stock Option
and Restricted Stock Incentive Plan, and the proposal on Deregistration of Some Stock Options Granted for the
First Time under the Company's 2018 Stock Option and Restricted Stock Incentive Plan. The total number of
29
C&S Paper Co., Ltd. Semi-annual Report 2022
incentive employees meeting the unlocking conditions is 463, and the number of restricted shares that can be
released is 5,947,912; The total number of incentive employees that meet the exercise conditions is 2,000, and the
number of stock options that can be exercised is 3,314,312; 501,088 restricted shares need to be repurchased and
deregistration; The number of stock options to be deregistration is 633,088. According to the company's 2021
profit distribution plan and the relevant provisions of the 2018 stock option and restricted stock incentive plan, the
Company adjusted the exercise price of the stock option granted and reserved for the first time in the 2018 stock
option and restricted stock incentive plan. The exercise price of the first granted stock option was adjusted to
RMB 8.372/share, and the exercise price of the reserved part of the stock option was adjusted to RMB
13.765/share. The above restricted shares released from the restriction on sales have been listed and circulated on
June 29, 2022. The above-mentioned stock options have been independently exercised on June 29, 2022. As
confirmed by Shenzhen Branch of China Securities Depository and Clearing Co., Ltd., the deregistration of the
above 633,088 stock options has been completed on July 5, 2022.
2. Implementation of the employee stock ownership plan
□ Applicable √ Not applicable
3. Other employee incentives
□ Applicable √ Not applicable
30
C&S Paper Co., Ltd. Semi-annual Report 2022
Section V Environmental and Social Responsibilities
I. Main Environmental Protection Issues
Whether the listed company and its subsidiaries are the key pollution discharge units published by the environmental protection department
√ Yes □ No
Number Implemented
Total
Name of company Main pollutants and of Distribution of Concentration pollutant Total Excessive
Ways of discharge approved
or subsidiary particular pollutants discharge discharge outlets of discharge discharge discharge discharge
discharge
outlets standards
Discharge directly to the Centralized
Waste water - COD centralized sewage treatment 1 processing facilities 31.873 mg/L 200 mg/L 31.41 t 335.600 t/a None
plant in the factory
Discharge directly to the Centralized
Waste water -
centralized sewage treatment 1 processing facilities 2.576 mg/L 8 mg/L 0.95 t 13.4 t/a None
Ammonium nitrate
plant in the factory
Jiangmen C&S
Discharge directly to the Centralized
Waste water - Total
centralized sewage treatment 1 processing facilities 7.949 mg/L 12 mg/L 0.867 t / None
nitrogen
plant in the factory
Discharge directly to the Centralized
Waste water - Total
centralized sewage treatment 1 processing facilities 0.045 mg/L 0.8 mg/L 0.249 t / None
phosphorus
plant in the factory
Production waste
water discharge
Discharge to the water (DW001) flows
purification station through through the channel
Waste water - COD 1 43 mg/L 80 mg/L 21.782 t 96 t/a None
urban sewage pipeline after into the main outlet
treatment DW002 (confluent
with domestic waste
Sichuan C&S water)
Production waste
water discharge
Discharge to the water
(DW001) flows
Waste water - purification station through
1 through the channel 0.31 mg/L 8 mg/L 0.167 t 9.6 t/a None
Ammonium nitrate urban sewage pipeline after
into the main outlet
treatment
DW002 (confluent
with domestic waste
31
C&S Paper Co., Ltd. Semi-annual Report 2022
water)
1# boiler
Three chimneys (2# 1.1mg/m 2#
Waste gas - PM Discharge directly through the boiler is the standby boiler 0
3 20 mg/Nm 0.0855 t / None
(particulate matter) flue boiler, monitoring mg/m 3#
when being used) boiler
1.2mg/m
1# boiler 27
Three chimneys (2# mg/m 2#
Waste gas - Discharge directly through the boiler is the standby boiler 0
3 30 mg/Nm 2.0959 t 31.35 t/a None
Nitrogen oxide flue boiler, monitoring mg/m 3#
when being used) boiler 29
mg/m
Three chimneys (2#
Waste gas - Sulfur Discharge directly through the boiler is the standby
3 0 50 mg/Nm 0 / None
dioxide flue boiler, monitoring
when being used)
Discharge to Jiaxing
Centralized
Industrial Sewage Treatment
Waste water - COD 1 processing facilities 75.15 mg/L 500 mg/L 6.17 t 13.97 t/a None
Plant through municipal pipe
in the factory
after treatment
Zhejiang C&S
Discharge to Jiaxing
Centralized
Waste water - Industrial Sewage Treatment
1 processing facilities 6.74 mg/L 35mg/L 0.56 t 9.78 t/a None
Ammonium nitrate Plant through municipal pipe
in the factory
after treatment
Discharge to the Lvyuan
Main outlet of the
Sewage Treatment Plant in
zone (Lvyuan
Waste water - COD the zone after being treated by 1 22.4 mg/L ≤50mg/L 3.04 t 16.5 t/a None
Sewage Treatment
the plant sewage treatment
Plant)
station
Discharge to the Lvyuan
Main outlet of the
Sewage Treatment Plant in
Waste water - zone (Lvyuan
the zone after being treated by 1 0.474 mg/L ≤5mg/L 0.056 t 1.65 t/a None
Tangshan C&S Ammonium nitrate Sewage Treatment
the plant sewage treatment
Plant)
station
Waste gas - PM Discharge directly through the
1 One chimney 1.3mg/m ≤5mg/m 0.051 t 2.46 t/a None
(particulate matter) flue
Waste gas - Discharge directly through the
1 One chimney 22.52mg/m ≤30mg/m 0.747 t 18.46t/a None
Nitrogen oxide flue
Waste gas - Sulfur Discharge directly through the
1 One chimney 0 mg/m ≤10mg/m 0 6.15 t/a None
dioxide flue
Yunfu C&S Waste water - COD Discharge directly 1 Sewage treatment 28.79 mg/l 80 mg/L 27.17 t 197.71 t/a None
32
C&S Paper Co., Ltd. Semi-annual Report 2022
station in the factory
Waste water - Total Sewage treatment
Discharge directly 1 4.79 mg/l 12 mg/L 4.547 t / None
nitrogen station in the factory
Waste water - Sewage treatment
Discharge directly 1 2.747 mg/l 8 mg/L 1.851 t 19.76 t/a None
Ammonium nitrate station in the factory
Discharge to Biquan
Discharge indirectly Sewage Treatment
(discharge to Biquan Sewage Plant after pre-
Waste water - COD Treatment Plant through 1 processing with ≦87 mg/L ≤400 mg/L 23 t/a 152.25 t/a None
municipal pipe after centralized
treatment) processing facilities
in the factory,
Discharge to Biquan
Discharge indirectly Sewage Treatment
(discharge to Biquan Sewage Plant after pre-
Waste water -
Treatment Plant through 1 processing with ≦5.23 mg/L ≤30 mg/L 0.57 t/a 15.25 t/a None
Ammonium nitrate
municipal pipe after centralized
treatment) processing facilities
in the factory,
Hubei C&S Organized discharge
(dedusting by bag filter,
Waste gas - PM
desulfurization by limestone- 1 One chimney ≦5.95 mg/m ≤30 mg/m 5.9 t/a 28.63 t/a None
(particulate matter)
gypsum and denitration by
SNCR)
Organized discharge
(dedusting by bag filter,
Waste gas - Sulfur
desulfurization by limestone- 1 One chimney ≦89 mg/m ≤200 mg/m 91.2 t/a 203.87 t/a None
dioxide
gypsum and denitration by
SNCR)
Organized discharge
(dedusting by bag filter,
Waste gas -
desulfurization by limestone- 1 One chimney ≦63 mg/m ≤200 mg/m 55.61 t/a 239.85 t/a None
Nitrogen oxide
gypsum and denitration by
SNCR)
33
C&S Paper Co., Ltd. Semi-annual Report 2022
Construction and operation of pollution prevention and control facilities
(1) Duty toward compliance: The Company and its subsidiaries and branches strictly abide by national and local
environmental laws and regulations. All new projects strictly implement the environmental impact assessment
system and "three simultaneous" system. All production activities strictly comply with the Environmental
Protection Law of the People’s Republic of China, the Law of the People’s Republic of China on the Prevention
and Control of Water Pollution, the Law of the People’s Republic of China on the Prevention and Control of
Atmospheric Pollution, the Law of the People’s Republic of China on the Prevention and Control of
Environmental Pollution by Solid Waste and the Action Plan for Prevention and Control of Water Pollution, and
ensure that all pollutant treatment and discharge are in line with the requirements of laws and regulations.
(2) Configuration and operation of water treatment equipment and facilities: Each subsidiary or branch has a
complete array of environmental protection treatment equipment and facilities. The main sewage treatment
processes are anaerobic, aerobic and subsequent deep treatment processes, which can achieve the discharge
standards of various sewage indicators. In addition, each subsidiary or branch is equipped with a recycling water
system in which the reclaimed water that meets the usage standard is used for re-production to reduce the
discharge of sewage as far as possible. The sewage of Jiangmen C&S, Sichuan C&S, Zhejiang C&S, Hubei C&S
and Tangshan C&S is discharged after centralized treatment in the company and treated by the local sewage
treatment plants through urban sewage pipeline. The sewage of Yunfu C&S, after treated by the company’s
sewage treatment station and reaching the standard, is discharged in an organized manner.
(3) Online monitoring and operation of water treatment facilities: Five subsidiaries or branches in Sichuan,
Zhejiang, Tangshan, Yunfu and Hubei have all installed on-line sewage monitoring facilities, which are directly
supervised by local environmental protection bureau. After the centralized treatment within the company, the
sewage of Jiangmen C&S is discharged to the sewage plant of the local paper industry base; there is no other
sewage outlet and no online monitoring facilities. The environmental protection bureau goes to the company
regularly every quarter to compare the on-line monitoring data, which all meet the requirements.
(4) Boiler waste gas emission: Sichuan C&S and Tangshan C&S are equipped with natural gas boilers. Hubei
C&S is equipped with a coal-fired boiler, and waste gas is emitted uniformly after desulfurization and
denitrification. Boiler waste gas emission conforms to GB13271-2014 Emission Standard of Air Pollutants for
Boiler.
Environmental impact assessment of construction projects and other administrative permits for
environmental protection
(1) Administrative permits: According to the Measures for the Administration of Pollutant Discharge Permit of the
Ministry of Environmental Protection of the People’s Republic of China, the applications were submitted to the
Environmental Protection Bureau. All the subsidiaries and branches completed the renewal and change of the
pollutant discharge permit in June 2020.
(2) Construction projects: the Company has always been strictly in accordance with environmental laws and
regulations to implement the control of construction projects. Environmental impact assessment was carried out
for all construction projects and environmental protection project construction was arranged according to
34
C&S Paper Co., Ltd. Semi-annual Report 2022
construction plan, to ensure that the environmental protection facilities and the main project are designed,
constructed and put into use at the same time. At present, all construction projects put into production have
completed environmental impact assessment and acceptance and approval.
Emergency plan for sudden environmental events
(1) Preparation and reporting of emergency plan for sudden environmental events: The Company strictly
implements emergency response rules for sudden environmental events, and, in accordance with the technical
requirements in the Technical Guidelines for Preparation of Emergency Plans for Environmental Pollution
Accidents, employs a professional advisory and guidance organization to formulate the Emergency Plan for
Sudden Environmental Events, which has been reviewed by and filed with the Environmental Protection Bureau.
(2) Emergency response supplies, training and drill: The Company has matched the corresponding emergency
response supplies according to the requirements of the Emergency Plan for Sudden Environmental Events.
Emergency response measures for hazardous chemicals have been prepared according to environmental protection
requirements, and necessary labor protection supplies and emergency response supplies have been provided in
accordance with safety technical instructions, and checked and updated regularly. The Company regularly carries
out emergency training and drill and suitability assessment of the emergency plan to ensure the effectiveness and
enforceability of the emergency plan.
Environmental self-monitoring program
(1) Self-monitoring ledger: The Company strictly abides by laws and regulations, carries out self-monitoring work
in accordance with environmental protection requirements, establishes environmental management ledger and
data, and constantly improves it.
(2) Waste water monitoring: At present, self-monitoring is a combination of manual monitoring and automatic
monitoring, and qualified units are entrusted to carry out monitoring regularly. Automatic monitoring items: main
discharge outlet of waste water (COD, ammonium nitrate, flow rate, PH, total nitrogen); Manual monitoring
items: BOD, SS and chroma indicators are monitored daily or weekly; for other sewage monitoring items,
uncontrolled emissions, solid waste and factory boundary noise, each subsidiary entrusts qualified units to carry
out monitoring work monthly or quarterly according to the local environmental protection requirements.
(3) Waste gas monitoring: The main testing items are nitrogen oxide, ringelman emittance, sulfur dioxide, soot,
mercury and their compounds. The testing frequency is in compliance with the requirements of regulations.
(4) The self-monitoring data of pollutant discharge and environmental monitoring plans are disclosed on
provincial disclosure websites for key pollution source information while paper reports are submitted to the
Environmental Protection Bureau for archival.
Administrative penalties due to environmental issues during the reporting period
Impact on production and Rectification
Name of company or Reason of
Violation Penalty result operation of the listed measures of the
subsidiary penalty
company Company
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
35
C&S Paper Co., Ltd. Semi-annual Report 2022
Other environmental information that should be disclosed
(1) Emission permit information and environmental protection information related to emission permit
requirements are available on national emission permit management information platform; in the event that
competent government departments in the localities of the subsidiaries and branches have additional requirements,
such information is published on the platform for environmental information reporting prescribed by the local
government authority.
(2) Other environmental protection-related information is available in the "News" section of the Company’s
website.
Measures taken to reduce carbon emissions during the reporting period and their effects
√ Applicable □ Not applicable
In order to further reduce pollution, improve resource utilization efficiency and reduce production costs as well as
heat consumption and emission, Zhejiang C&S, under the advocacy of competent local government departments,
implemented 19 cleaner production programs, which achieved tangible results and attained the expected goals for
cleaner production and carbon reduction.
Other relevant information on environmental protection: None
II. Social Responsibilities
As a national enterprise with important social influence and a leading enterprise in the household paper industry,
the Company has actively fulfilled its corporate social responsibilities during the reporting period. Specifics are
as follows:
1. On April 14, 2022, Jiangmen C&S donated RMB 2,000 to help employees experiencing difficulties.
2. From January to June 2022, Hubei C&S cumulatively distributed a kind fund of RMB 23,400.
3. From January to June 2022, Jiangmen C&S visited veteran party members and local households in need in
Shuangshui Town, donating funds and paper tissues to them worth RMB 11,808; it has donated a kind fund up
to RMB 10,000 in total.
4. From January to June 2022, C&S has cumulatively distributed a kind fund of RMB 60,000.
5. From January to June 2022, to support the frontline anti-pandemic workers and people living in the pandemic
areas, C&S has donated medical surgical masks, children's masks, sanitary wipes, sanitary pads, paper tissues
and other pandemic prevention and control materials to Yunfu, Zhongshan, Jilin, Qingdao, Dongguan,
Shenzhen, Weihai, Shanghai and other regions, with a total market value of about RMB 8 million.
36
C&S Paper Co., Ltd. Semi-annual Report 2022
Section VI Significant Events
I. Commitments Completed by Actual Controllers, Shareholders, Related parties, Purchasers, or the Company within the Reporting
Period and Commitments Not Fulfilled by the End of the Reporting Period
√ Applicable □ Not applicable
Fulfillment
Type of Term of
Cause of Commitment Undertaking Party Content of commitment Time of commitment of
commitment commitment
commitment
Share reform commitment / / / / /
Commitments in the acquisition
report or the equity change / / / / /
report
Commitments made during
/ / / / /
asset restructuring
Directors, supervisors, and senior management promise that they will
not transfer more than 25% of the total shares of the Company they
hold each year during the term of office. If they leave office before
Commitments made during the Directors, Commitments of the expiry of the term of office, they promise not to transfer more
Strictly
initial public offering or supervisors, and shares subject to than 25% of the total shares of the Company they hold each year November 25, 2010 Long-term
observed
refinancing senior management selling restrictions within the term of office and within six months after the term of
office expires (which is agreed when they took office). Moreover,
they will not transfer their shares of the Company within half a year
after they leave office.
During the
He promises not to sell all their shares (including shares obtained implementat
Other from exercise and other shares) within six months after the end of the ion of the Strictly
Equity incentive commitments Liu Jinfeng November 12, 2020
commitments exercise of the last stock options. Besides, they promise to strictly equity observed
conform to stock trading-related laws and regulations. incentive
plan
During the
They promise not to sell all their shares (including shares obtained implementat
Dong Ye, Ye Other from exercise and other shares) within six months after the end of the ion of the Strictly
Equity incentive commitments June 25, 2021
Longfang commitments exercise of the last stock options. Besides, they promise to strictly equity observed
conform to stock trading-related laws and regulations. incentive
plan
37
C&S Paper Co., Ltd. Semi-annual Report 2022
Deng Yingzhong,
Deng Guanbiao,
Other commitments to minority Deng Guanjie, and Not-to-compete They promise not to compete with the Company in the same Strictly
January 01, 2009 Long-term
shareholders Guangdong commitments business. observed
Zhongshun Paper
Group Co., Ltd.
Cash dividends shall be distributed when dividend conditions are
met. The Board of Directors of the Company shall comprehensively
consider industry characteristics, development stage, business model,
Other commitments to minority Cash dividend Strictly
C&S Paper Co., Ltd. profitability, and major capital spending (if any), distinguish the August 28, 2014 Long-term
shareholders commitments observed
following circumstances, and propose differentiated cash dividend
policies in compliance with the procedures stipulated in the Articles
of Association.
Other commitments to minority For all employees who purchase C&S Paper stocks (no less than
shareholders 1,000 shares) between May 10 and May 31, 2021 and hold them
May 10,
Other continuously until May 30, 2022 while still serving in the Company
Deng Yingzhong May 07, 2021 2021 - June Completed
commitments by then, any losses incurred from the aforesaid stocks will be fully
30, 2022
compensated by Mr. Deng Yingzhong while any profits generated
will entirely belong to the employee.
Other commitments to minority They promise not to reduce or pledge any shares they hold directly or
shareholders indirectly in the Company in any way from May 9, 2021 to May 30,
Deng Yingzhong, 2022, including new shares added due to the transfer of capital May 10,
Other
Deng Guanbiao, reserve into share capital or distribution of stock dividends for the May 09, 2021 2021 - May Completed
commitments
Deng Guanjie aforementioned shares during the commitment period. For any 30, 2022
violation of the above commitment, all the incurred earnings will
belong to the Company.
Other commitments to minority He promises not to reduce any shares he or his parents, spouse or
shareholders children hold in the Company directly or indirectly in the Company
in any way within 12 months from the last reduction of the February
Other Company’s shares in 2021 (i.e. February 5, 2021), including new 05, 2021 - Strictly
Zhou Qichao July 10, 2021
commitments shares added due to the transfer of capital reserve into share capital or February 4, observed
distribution of stock dividends for the aforementioned shares during 2022
the commitment period. For any violation of the above commitment,
all the incurred earnings will belong to the Company.
Whether commitments are
Yes
fulfilled on time
If the commitment is not
fulfilled within the time limit,
the specific reasons for not
Not applicable
fulfilling the commitment and
the next work plan shall be
explained in detail
38
C&S Paper Co., Ltd. Semi-annual Report 2022
II. Appropriation of Funds for Non-operating Purposes by Controlling Shareholder and Its
Related Parties
□ Applicable √ Not applicable
During the reporting period, the Company did not have any funds appropriated for non-operating purposes by
the controlling shareholder and its related parties.
III. External Guarantee in Violation of Prescribed Procedures
□ Applicable √ Not applicable
During the reporting period, there was no external guarantee in violation of prescribed procedures.
IV. Engagement and Dismissal of Accounting Firm
Whether the Semi-annual Report has been audited
□ Yes √ No
The Semi-annual Report of the Company has not been audited.
V. Explanation by the Board of Directors and the Board of Supervisors of the “Non-
standard Audit Report” for the Reporting Period Issued by the Accounting Firm
□ Applicable √ Not applicable
VI. Explanation by the Board of Directors of the “Non-standard Audit Report” of the
Previous Year
□ Applicable √ Not applicable
VII. Matters relating to Bankruptcy and Restructuring
□ Applicable √ Not applicable
No bankruptcy and restructuring-related matters of the Company happened during the reporting period.
VIII. Litigations
Material litigations and arbitrations
□ Applicable √ Not applicable
There were no material litigations or arbitrations during the reporting period.
Other litigations
√ Applicable □ Not applicable
Whether Date Index
Amount Hearing results Execution of
Basic information of projected Litigation of of
involved and influences judgment of
the litigation liabilities (arbitration) disclo disclo
(RMB of the litigation the litigation
(arbitration) were progress sure sure
10,000) (arbitration) (arbitration)
incurred
39
C&S Paper Co., Ltd. Semi-annual Report 2022
The verdict of The first
The first instance first instance round of
Zhongshan Trading v.
supported all the came into force. execution
Guangzhou Yingjing
31.36 No claims by Zhongshan ended. No / /
Trade Co., Ltd. over Trading has
Zhongshan properties
sales contract dispute applied for
Trading. have been
execution.
recovered.
Both the first The verdict of
Zhongshan Trading v.
instance and the second instance
Shenzhen
second instance came into force.
Yongxinghua Trading
660.37 No ruled that Zhongshan In execution / /
Co., Ltd., Feng, &
Zhongshan Trading has
Liang over sales
Trading won the applied for
contract dispute
case. execution
Zhongshan Trading v. Both the first The verdict of
Shanghai Tongli instance and the second instance
Trading Co., Ltd. and second instance came into force.
eight natural person 2,932.01 No ruled that Zhongshan In execution / /
defendants including Zhongshan Trading has
Liu over sales Trading won the applied for
contract dispute case. execution
The first
The verdict
Zhongshan Trading v. The first instance round of
came into force.
Guangzhou Jv Se Mai supported all the execution
Zhongshan
Ke Internet Service 28.55 No claims by ended. No / /
Trading has
Co., Ltd. over sales Zhongshan properties
applied for
contract dispute Trading. have been
execution
recovered.
The
counterparty has
The case was not fulfilled
Xiaogan Tranding v. mediated and obligation in
Wuhan Xincheng closed in the first line with the
Tongda Trading Co., 525.16 No instance (with a paper of civil In execution / /
Ltd. over sales mediation amount mediation;
contract dispute of RMB4.4961 Xiaogan C&S
million). has applied for
legal
enforcement..
The verdict
The first instance
came into force.
Yunfu C&S v. Yu over ruled that Yunfu
31.08 No Yunfu C&S has In execution / /
sales contract dispute C&S won the
applied for
case.
execution
No (Note:
Whether
projected
Chongqing Xianshida
liabilities
Human Resources The first
will be The first instance
Management Co., Ltd. instance is being
30 incurred is being heard; Not applicable / /
v. C&S Paper over heard; pending
cannot be pending judgment
service contract judgment
determine
dispute
d prior to
the
verdict.)
Zhongshan Trading v. The first instance The first
475.27 No Not applicable / /
Hefei Suning Fresh is being heard; instance is being
40
C&S Paper Co., Ltd. Semi-annual Report 2022
Food Supermarket pending judgment heard; pending
Procurement Co., Ltd. judgment
over right to claims of
bills
The
counterparty has
not fulfilled
obligation in
Tangshan C&S v. The case was
line with the
Lijiang Yile Hotel mediated and
3.1 No paper of civil In execution / /
Management Co., Ltd. closed in the first
mediation;
over arrear dispute instance.
Xiaogan C&S
has applied for
legal
enforcement.
The first
Tangshan C&S v. The verdict of round of
The first instance first instance
Huangshan Langshuo execution
supported all the came into force.
Hotel Management 7.97 No ended. No / /
claims by Tangshan C&S
Co., Ltd. over arrear has applied for properties
Tangshan C&S..
dispute execution. have been
recovered.
The case has
The labor
been appealed
Chen v. Zhongshan arbitration has
to the first-
Trading over labor 20.22 Yes made a ruling of Not applicable / /
instance court,
dispute paying
which is
RMB81,142.8.
pending trial.
The labor
Yang has filed
arbitration has
Yang v. Tangshan for litigation,
made a ruling that
C&S over labor 18.6 Yes which is Not applicable / /
the Company
dispute pending further
needs to pay
trial.
RMB18,680.2.
No (Note:
Whether
projected The first
liabilities The first instance
Ha v. Sichuan C&S instance
will be accepted the
over the rights to life, accepted the
14.18 incurred appeal; pending Not applicable / /
body and health cannot be appeal; pending
trial and
dispute determine trial and
judgment.
d prior to judgment.
the
verdict.)
No (Note:
Whether
projected
liabilities Labor
Labor arbitration
will be arbitration has
Xiao v. Sichuan C&S has accepted the
10.76 incurred accepted the Not applicable / /
over labor dispute cannot be case; pending
case; pending
determine hearing
hearing
d prior to
the
verdict.)
Yao v. Sichuan C&S No (Note: Labor arbitration Labor
Whether
over labor dispute has held hearing; arbitration has
0 projected Not applicable / /
(determine labor liabilities the claimant accepted the
relations) will be withdrew the case and held
41
C&S Paper Co., Ltd. Semi-annual Report 2022
incurred arbitration request hearing;
cannot be in the hearing, pending to
determine
pending to receive receive the
d prior to
the the arbitral award. arbitral award.
verdict.)
No (Note:
Whether Labor arbitration Labor
projected has held hearing; arbitration has
Yao v. Sichuan C&S liabilities the claimant accepted the
will be
over labor dispute withdrew the case and held
0 incurred Not applicable / /
(determine labor cannot be arbitration request hearing;
relations) determine in the hearing, pending to
d prior to pending to receive receive the
the the arbitral award. arbitral award.
verdict.)
No (Note:
Whether
projected Labor
liabilities arbitration has
will be
Chen v. Sichuan C&S Labor arbitration accepted the
14 incurred Not applicable / /
over labor dispute cannot be has held hearing. case and
determine pending
d prior to hearing;
the
verdict.)
The arbitration
The arbitration
committee has
Hubei C&S v. BBK committee has
accepted the
Commercial Chain accepted the case;
case; the two
Co., Ltd. over sales the two parties
3,018.18 No parties have Not applicable / /
contract dispute have reached a
reached a
(commercial settlement
settlement
arbitration) agreement (in
agreement (in
execution)
execution).
The first
The first instance instance court
court has accepted has accepted the
Yunfu C&S v.
the case; the two case; the two
Guangxi Nancheng
parties have parties have
Department Store Co., 1,170.29 No reached a Not applicable / /
reached a
Ltd. over sales settlement
settlement
contract dispute agreement (in
agreement (in
execution).
execution).
The arbitration
The arbitration committee has
Sichuan C&S v. committee has accepted the
Sichuan BBK accepted the case; case; the two
Commercial Co., Ltd. the two parties parties have
526.46 No reached a Not applicable / /
over sales contract have reached a
dispute (commercial settlement settlement
agreement (in
arbitration) agreement (in
execution).
execution).
Zhongshan Trading v.
The case has The case has
Guangzhou Xiangxue
passed litigation passed litigation
Pharmaceutical Co., 2 No Not applicable / /
review; pending review; pending
Ltd. over sales
filing. filing.
contract dispute
Sichuan C&S v. Arbitration has Arbitration has
194.27 No Not applicable / /
Carrefour (Shanghai) accepted the case; accepted the
42
C&S Paper Co., Ltd. Semi-annual Report 2022
Supply Chain pending hearing case; pending
Management Co., Ltd. and judgment hearing and
Sichuan Branch over
judgment
sales contract dispute
(commercial
arbitration)
The first instance
court has accepted The first
Tangshan C&S v. the case, which is instance has
Carrefour Shenyang pending trial; the accepted the
433 No Not applicable / /
Branch over sales peer party has case; pending
contract dispute. raised an trial and
objection to judgment
jurisdiction.
The first instance
Hubei C&S v. court has accepted The first
Carrefour (Shanghai) the case, which is instance has
Supply Chain pending trial; the accepted the
8 No Not applicable / /
Management Co., Ltd. peer party has case; pending
Ezhou Branch over raised an trial and
objection to judgment
sales contract dispute
jurisdiction.
C&S v. Zhongshan The first
Deyi Enterprise The first instance instance has
Management Services has accepted the accepted the
3,899.2 No Not applicable / /
Co., Ltd. over case; pending trial case; pending
property sales and judgment trial and
judgment
contract dispute
The labor The company
arbitration paid
committee has RMB64,730.12
Fan v. Yunfu C&S held hearing and after first
over labor arbitration 17.36 Yes made a ruling; the instance ruling; Close the case / /
distribute first instance court the two parties
has accepted the settled the case
case and made a under
ruling. mediation.
The first instance The peer party
and second appealed to the
instance have second instance
Zhang v. Jiangmen
made a ruling, court, which
C&S over labor 84.92 No Close the case / /
with all claims ruled and
arbitration distribute
against the dismissed all
company being claims against
dismissed. the Company.
The first instance The peer party
and second appealed to the
instance have second instance
Tan v. Jiangmen C&S
made a ruling, court, which
over labor arbitration 121.39 No Close the case / /
with all claims ruled and
distribute
against the dismissed all
company being claims against
dismissed. the Company.
The first instance The peer party
and second appealed to the
Lu v. Jiangmen C&S instance have second instance
over labor arbitration 62.71 No made a ruling, court, which Close the case / /
distribute with all claims ruled and
against the dismissed all
company being claims against
43
C&S Paper Co., Ltd. Semi-annual Report 2022
dismissed. the Company.
Xi'an Minsheng
has not fulfilled
the repayment
Sichuan C&S v. Xi'an obligation in
The case was
Minsheng Department line with the
mediated and
Store Management 5.65 No civil mediation Close the case / /
closed in the first
Co., Ltd. over agreement.
instance.
contract dispute Sichuan C&S
has applied for
legal
enforcement.
The case was
settled through
Yin v. Sichuan C&S Mediation in the mediation in the
over the rights to second second instance,
health dispute 30.25 Yes Close the case / /
instance,case with a payment
closed. of RMB 200，
000, and the
case closed.
The labor
arbitration
committee has The labor
accepted the case, arbitration
which is pending committee has
hearing; the two accepted the
Li *wen v. Hubei
parties reached a case, which is
C&S over labor 0.49 Yes Close the case / /
mediation pending
dispute
agreement prior to hearing; the
hearing; case case is closed
closed. The under
Company paid mediation.
RMB4,000; case
closed.
C&S v. China
National Intellectual
Property
Administration over The case has been The case has
administrative dispute accepted; pending been accepted;
0 No Not applicable / /
for reexamination trial and pending trial
after trademark judgment. and judgment.
application rejection
(trade mark number
53017615)
C&S v. China
National Intellectual
Property
Administration over The case has been The case has
administrative dispute accepted; pending been accepted;
0 No Not applicable / /
for reexamination trial and pending trial
after trademark judgment. and judgment.
application rejection
(trade mark number
53022896)
44
C&S Paper Co., Ltd. Semi-annual Report 2022
IX. Penalty and Rectification
□ Applicable √ Not applicable
X. Integrity Records of the Company and its Controlling Shareholder and Actual Controller
□ Applicable √ Not applicable
XI. Material Related Party Transaction
1. Related party transactions relating to daily operations
√ Applicable □ Not applicable
Pric Amou Propor
Pricin e of nt of tion in Wheth
Type Conte Approve Settleme Available
Party of g rules relat related the er to
Relate of nt of d nt of market Date Index
related of ed party amoun outstri
d related related transacti related prices for of of
party related part transa t of p the
relatio party party on limit party similar disclo disclo
transacti party y ction simila appro
nship transa transa (RMB1 transacti transactio sure sure
on transa trans (RMB r ved
ction ction 0,000) on ns
ction actio 10,000 transa limit
ns ) ctions
Deng
Actual
Yingzho Mar Dece
control
ng, Marke ket Transfer
ler of 15.95 Market mber 2021-
Deng Lease Rental t fair fair 159.05 159.05 No settleme
the % fair price 01,20 145
Guanbia price pric nt
Comp 21
o, Deng e
any
Guanjie
Deng
Actual
Yingzho Mar
control
ng, Marke ket Transfer
ler of Market
Deng Lease Rental t fair fair 0.65 0.07% Yes settleme
the fair price
Guanbia price pric nt
Comp
o, Deng e
any
Guanjie
A
compa
ny in
which
the
son of
the
Pengzh
Comp
ou
any’s Daily Mar
Lexiang
Vice operat Sale Marke ket Transfer
shenghu Market
Presid ion of t fair fair 0.83 0.00% Yes settleme
o fair price
ent transa goods price pric nt
Trading e
Yue ction
Co.,
Yong
Ltd.
holds
50%
equity
and
serves
as a
superv
45
C&S Paper Co., Ltd. Semi-annual Report 2022
isor
A
compa
ny in
which
the
son of
the
Sichuan Comp
West any’s
Daily Mar
Lexiang Vice
operat Sale Marke ket Transfer
shenghu Presid Market
ion of t fair fair 0.01 0.00% Yes settleme
o ent fair price
transa goods price pric nt
Trading Yue e
ction
Co., Yong
Ltd. holds
50%
equity
and
serves
as a
superv
isor
Total -- -- 160.54 -- 159.05 -- -- -- -- --
Details of returns of large sales Not applicable
Where the total amount of daily Among the excessive amounts of related party transactions in the reporting period, RMB 6,500 is
related-party transactions occurred in
for renting properties from the related party, RMB 8,400 is for the sales of goods to the related party.
the current period is estimated by
category, actual performance during They fall within the authority of the Chairman of the Company and can be implemented without the
the reporting period (if any) approval of the Board of Directors.
Reason(s) for a large difference
between the transaction price and the Exercise at fair price
market reference price (if applicable)
2. Related party transactions relating to acquisition and sale of assets or equity
□ Applicable √ Not applicable
During the reporting period, there was no related party transaction relating to acquisition and sale of assets or
equity.
3. Related party transactions relating to joint outbound investment
□ Applicable √ Not applicable
During the reporting period, there was no related party transaction relating to joint outbound investment.
4. Related party transactions relating to creditor’s rights and debts
□ Applicable √ Not applicable
During the reporting period, there was no related party transactions relating to creditor’s rights and debts.
46
C&S Paper Co., Ltd. Semi-annual Report 2022
5. Transactions with related party financial companies
□ Applicable √ Not applicable
The Company did not have deposit, loan, credit or other financial business transactions with financial
companies that have related relationship and the associated related parties.
6. Transactions between financial companies controlled by the Company and related parties
□ Applicable √ Not applicable
Financial companies controlled by the Company did not have deposit, loan, credit or other financial business
transactions with related parties.
7. Other significant related party transactions
□ Applicable √ Not applicable
During the reporting period, there were no other significant related party transactions.
XII. Significant Contracts and Their Performance
1. Custody, contracting and leasing matters
(1) Custody
□ Applicable √ Not applicable
During the reporting period, there was no custody.
(2) Contracting
□ Applicable √ Not applicable
During the reporting period, there was no contracting.
(3) Leasing
√ Applicable □ Not applicable
Description of leasing matters
On November 30, 2021, the Company convened the 12th meeting of the fifth session of the Board of Directors
and the 7th meeting of the fifth session of the Board of Supervisors, on which the Proposal on Daily Related
Party Transactions was reviewed and approved. The Board of Directors of the Company agreed that the Company
and its wholly-owned subsidiary, Zhongshan Zhongshun Trading Co., Ltd., leased the real estate jointly owned by
Mr. Deng Yingzhong, Mr. Deng Guanbiao and Mr. Deng Guanjie, the actual controllers of the Company. The
lease term is from January 1, 2022 to December 31, 2023, and the total rent involved is RMB 7,031,600. During
47
C&S Paper Co., Ltd. Semi-annual Report 2022
the deliberation of this proposal, the Company’s three related directors, Mr. Deng Yingzhong, Mr. Deng Guanbiao
and Mr. Deng Guanjie, withdrew from voting, while the remaining six attending directors unanimously approved
this related party transaction. The three independent directors of the Company respectively issued Prior Approval
Opinions and Opinions of Independent Directors on the proposal, agreeing to submit the proposal to the Board of
Directors for deliberation and agreeing to the related party transaction.
The Company’s holding subsidiary, Dolemi Sanitary Products Co., Ltd., leased the real estate jointly owned by
actual controllers of the Company Mr. Deng Yingzhong, Mr. Deng Guanbiao and Mr. Deng Guanjie to be used as
residence. The lease term is from December 1, 2022 to December 31, 2023, and the total rent involved is RMB26,
100. The amount of this related party transaction falls within the approval authority of the Company’s Chairman
and has been approved by the Chairman.
Projects whose profits or losses brought to the Company reached more than 10% of the total profits of the
Company during the reporting period
□ Applicable √ Not applicable
During the reporting period, there were no leasing projects whose profits or losses brought to the Company
reached more than 10% of the total profits of the Company during the reporting period.
2. Material guarantee
√ Applicable □ Not applicable
Unit: RMB10,000
External guarantee of the Company and subsidiaries (excluding guarantee for subsidiaries)
Whe
Whe ther
Disclosure
ther it is
date of Actual
Actual it relat
Name of relevant guaran Collat Counter
Guarantee date of Guarant Guarantee has ed
guarantee announce tee eral (if guarantee
limit occurrenc ee type period been part
object ment on amoun any) (if any)
e com y
guarantee t
plete guar
limit
d ante
e
Joint
Wuhan Jie and Joint and
Rou E- December October several several 2021.10.8-
14,500 6,560 None No No
commerce 15,2020 08,2021 liability liability 2022.11.5
Co., Ltd. guarante guarantee
e
Joint
Shanghai and Joint and
Junmeng E- December September several several 2021.9.27-
20,000 3,500 None No No
commerce 15,2020 27,2021 liability liability 2022.9.22
Co., Ltd. guarante guarantee
e
Total approved amount of 0 Total actual 10,060
48
C&S Paper Co., Ltd. Semi-annual Report 2022
external guarantee during amount of
the reporting period (A1) external guarantee
during the
reporting period
(A2)
Total actual
Total approved amount of
guarantee balance
external guarantee at the
34,500 at the end of the 10,060
end of the reporting
reporting period
period (A3)
(A4)
Guarantee of the Company for subsidiaries
Whe
Whe ther
Disclosure
ther it is
date of Actual
Actual it relat
Name of relevant guaran Collat Counter
Guarantee date of Guarant Guarantee has ed
guarantee announce tee eral (if guarantee
limit occurrenc ee type period been part
object ment on amoun any) (if any)
e com y
guarantee t
plete guar
limit
d ante
e
Joint
and
Zhongshan December October 9,661. several 2021.10.18-
15,000 None None No No
Trading 15,2020 18,2021 75 liability 2024.9.7
guarante
e
Joint
and
Zhongshan December March 6,620. several 2021.3.2-
13,600 None None No No
Trading 15,2020 02,2021 78 liability 2026.3.1
guarante
e
Joint
and
Zhongshan December December several 2020.12.15-
25,000 0 None None No No
Trading 05,2019 15,2020 liability 2024.12.9
guarante
e
Joint
and
Zhongshan December September 6,055. several 2021.9.24-
15,000 None None No No
Trading 15,2020 24,2021 01 liability 2024.7.7
guarante
e
Joint
and
Zhongshan December August several 2021.8.21-
50,000 0 None None No No
Trading 15,2020 21,2021 liability 2025.5.11
guarante
e
Joint
and
Zhongshan November May 10,05 several 2022.5.17-
20,000 None None No No
Trading 30,2021 17,2022 0 liability 2030.2.27
guarante
e
49
C&S Paper Co., Ltd. Semi-annual Report 2022
Joint
and
Zhongshan December September several 2021.9.15-
16,000 500 None None No No
Trading 15,2020 15,2021 liability 2024.12.31
guarante
e
Joint
and
Jiangmen December October 6,352. several 2021.10.26-
12,000 None None No No
C&S 15,2020 26,2021 71 liability 2024.9.12
guarante
e
Joint
and
Jiangmen Movembe March 3,556. several 2022.3.1-
15,000 None None No No
C&S r 30,2021 01,2022 07 liability 2025.2.13
guarante
e
Joint
and
Jiangmen December December several 2020.12.23-
5,000 0 None None No No
C&S 05,2019 23,2020 liability 2025.12.23
guarante
e
Joint
and
December April several 2020.4.14-
Yunfu C&S 8,000 0 None None No No
05,2019 04,2020 liability 2028.4.14
guarante
e
Joint
and
December November several 2020.11.20-
Yunfu C&S 5,000 800 None None No No
05,2019 20,2020 liability 2023.12.31
guarante
e
Joint
and
December October 8,957. several 2021.10.26-
Yunfu C&S 20,000 None None No No
15,2020 26,2021 25 liability 2024.9.12
guarante
e
Joint
and
November March several 2022.3.1-
Yunfu C&S 7,000 0 None None No No
30,2021 01,2022 liability 2025.2.13
guarante
e
Joint
and
November March 3,371. several 2022.3.25-
Yunfu C&S 8,000 None None No No
30,2021 25,2022 99 liability 2024.12.31
guarante
e
Joint
December December and 2021.12.3-
Hubei C&S 10,000 0 None None No No
15,2020 03,2021 several 2026.9.29
liability
50
C&S Paper Co., Ltd. Semi-annual Report 2022
guarante
e
Joint
Zhongshan
and
Trading,
December June several 2021.6.1-
Hubei C&S, 10,066.35 0 None None No No
15,2020 01,2021 liability 2023.4.22
and Macao guarante
C&S e
Joint
Jiangmen and
C&S, Yunfu November January several 2022.1.17-
22,000 0 None None No No
C&S, Hubei 30,2021 17,2022 liability 2025.1.17
C&S guarante
e
C&S Hong Joint
Kong, and
Zhong Shun December November 12,14 several 2021.11.4-
33,554.5 None None No No
Internationa 15,2020 04,2021 6.12 liability 2025.7.31
l, Macao guarante
C&S e
Joint
C&S Hong
and
Kong,
December September several 2021.9.8-
Zhong Shun 17,360.56 0 None None No No
15,2020 08,2021 liability 2023.9.8
Internationa guarante
l e
Joint
March and
C&S Hong
December 17,202 年 several 2021.3.17-
Kong,, 34,208 0 None None No No
15,2020 03 月 17 liability 2025.12.31
Macao C&S guarante
日
e
C&S Hong Joint
Kong, and
Zhong Shun December February1 13,711 several 2020.2.12-
42,614.22 None None No No
Internationa 05,2019 2,2020 .05 liability 2022.2.12
l, Macao guarante
C&S e
Joint
and
C&S Hong
December December several 2021.12.3-
Kong, 6,710.9 0 None None No No
15,2020 03,2021 liability 2025.9.24
Macao C&S guarante
e
Joint
and
C&S Hong
December March 309.8 several 2020.3.27-
Kong, 16,106.16 None None No No
05,2019 27,2020 1 liability 2023.2.19
Macao C&S guarante
e
C&S Hong Joint
Kong, and
Zhong Shun December January several 2020.1.30-
20,132.7 0 None None No No
Internationa 05,2019 30,2020 liability 2023.1.30
l, Macao guarante
C&S e
December March 3,664. Joint 2018.3.23-
Macao C&S 7,381.99 None None No No
15,2017 23,2018 15 and 2022.9.23
51
C&S Paper Co., Ltd. Semi-annual Report 2022
several
liability
guarante
e
Joint
and
December August 4,425. several 2018.8.15-
Macao C&S 7,000 None None No No
15,2017 15,2018 61 liability 2025.8.15
guarante
e
Joint
and
December November 6,396. several 2021.11.12-
Macao C&S 20,132.7 None None No No
15,2020 12,2021 52 liability 2024.10.20
guarante
e
C&S Hong Joint
Kong, and
Zhong Shun December September several 2020.9.1-
23,488.15 0 None None No No
Internationa 05,2019 01,2020 liability 2022.7.9
l, Macao guarante
C&S e
Total actual
amount of
Total approved amount of
guarantee for
guarantee for subsidiaries
72,000 subsidiaries 16,978.06
during the reporting
during the
period (B1)
reporting period
(B2)
Total actual
Total approved amount of guarantee balance
guarantee for subsidiaries to subsidiaries at
505,356.23 96,578.82
at the end of the reporting the end of the
period (B3) reporting period
(B4)
Guarantee of subsidiaries to subsidiaries
Whe
Whe ther
Disclosure
ther it is
date of Actual
Actual it relat
Name of relevant guaran Collat Counter
Guarantee date of Guarant Guarantee has ed
guarantee announce tee eral (if guarantee
limit occurrenc ee type period been part
object ment on amoun any) (if any)
e com y
guarantee t
plete guar
limit
d ante
e
Total amount of the Company’s guarantee (the sum of the first three items)
Total actual
Total approved amount of amount of
guarantee during the guarantee during
72,000 27,038.06
reporting period (A1 + B1 the reporting
+ C1) period (A2 + B2 +
C2)
Total approved amount of Total actual
guarantee at the end of the guarantee balance
539,856.23 106,638.82
reporting period (A3 + B3 at the end of the
+ C3) reporting period
52
C&S Paper Co., Ltd. Semi-annual Report 2022
(A4+B4+C4)
Proportion of the total actual amount of guarantee
21.17%
(A4 + B4 + C4) in the net assets of the Company
Wherein:
Balance of guarantee for shareholders, actual
0
controllers and their related parties (D)
Balance of debt guarantee provided directly or
indirectly for objects whose asset-liability ratio 42,947.54
exceeds 70% (E)
Amount of guarantees in excess of 50% of net assets
0
(F)
Total amount of the above three guarantees (D + E +
42,947.54
F)
Description of situations that the guarantee liability
has occurred or there is evidence showing that the
Company may be jointly and severally liable for None
undue guarantee contracts during the reporting period
(if any)
Proportion of the total actual amount of guarantee
No
(A4 + B4 + C4) in the net assets of the Company
Detailed description on the guarantees with different types: None
3. Entrusted wealth management
√ Applicable □ Not applicable
Unit: RMB10,000
Amount overdue
Source of Incurred amount of but not recovered
Undue Amount overdue
Specific type entrusted wealth entrusted wealth with impairment
balance but not recovered
management funds management having been
accrued
Wealth
management
Self-owned fund 2,500 0 0 0
product of
securities company
Wealth
management Self-owned fund 2,000 0 0 0
product of bank
Total 4,500 0 0 0
Explanation of high-risk entrusted wealth management with large individual amount or low safety, poor
liquidity and no principal guarantee
□ Applicable √ Not applicable
Entrusted wealth management is expected to fail to recover the principal or there are other circumstances that
may lead to impairment
□ Applicable √ Not applicable
4.Other significant contracts
□ Applicable √ Not applicable
53
C&S Paper Co., Ltd. Semi-annual Report 2022
There were no other significant contracts during the reporting period.
XIII. Other Significant Events
√ Applicable □ Not applicable
Proposal of the actual controller for employees to increase shareholding of the Company
On May 9, 2021, the Company received the Letter on Proposing All Employees to Increase Shareholding of the
Company from the director and actual controller of the Company Mr. Deng Yingzhong. Based on his confidence
in the Company's sustained development in the future, Mr. Deng called on employees of the Company and
subsidiaries to actively buy in stocks of the Company. He also promised, “For all employees who purchase C&S
Paper stocks (no less than 1,000 shares) between May 10 and May 31, 2021 and hold them continuously until
May 30, 2022 while still serving in the Company by then, any losses incurred from the aforesaid stocks will be
fully compensated by Mr. Deng Yingzhong while any profits generated will entirely belong to the employee.”
As of May 30, 2022 (the date of loss calculation), the average buy-in price of all employees who have
responded to the aforesaid proposal was higher than RMB10.86/share (before ex-rights and ex-dividends), i.e.
the closing price of the Company's stocks on May 30, 2022. As a result, Mr. Deng Yingzhong needed to
compensate employees who bought in stocks of the Company during the period thereof. As of June 3, 2022, the
commitment has been fulfilled. For details, please refer to the Announcement on the Completion of the Actual
Controller’s Commitment Regarding Employees’ Increase of Company Shares (Announcement No. 2022-23).
XIV. Significant Events of Subsidiaries of the Company
√ Applicable □ Not applicable
1. High-tech enterprise certification
The Certificate of High-tech Enterprise of Jiangmen Zhongshun Paper Co., Ltd., the wholly-owned subsidiaries of
the Company, was re-certified upon expiration. Within three years after certification and archival, the two
subsidiaries can enjoy a preferential rate of corporate income tax at 15%.
2. Newly established subsidiaries
The Company and its wholly-owned subsidiary Zhongshan Zhongshun Trading Co., Ltd., with own funds,
jointly established Zhongshun Healthy Life Technology (Shenzhen) Co., Ltd. in Shenzhen, Guangdong
Province. The new subsidiary will focus on the personal care product business. It has completed relevant
industrial and commercial registration and obtained the business license in May 2022.
3. Changes of industrial and commercial registration
The subsidiary C&S (Jiangsu) Paper Co., Ltd. changed its legal representative due to business development
needs. It has completed relevant industrial and commercial change registration and obtained the new business
license on June 27, 2022.
54
C&S Paper Co., Ltd. Semi-annual Report 2022
Section VII Changes in Shareholding and Information of
Shareholders
I. Changes in Share Capital
1. Changes in shares
单位：股
Before change Increase/decrease (+, -) of this change After change
B
Shares
on
transferr
Percenta New shares us Percenta
Number ed from Others Subtotal Number
ge issued sh ge
surplus
ar
reserve
es
I. Shares subject
to selling 27,560,600 2.10% 112,500 -6,788,970 -6,676,470 20,884,130 1.59%
restrictions
1. Shares held
by the state
2. Shares held
by state-owned
legal person
3. Shares held
by other domestic 26,965,000 2.05% 112,500 -6,530,095 -6,417,595 20,547,405 1.56%
shareholders
Including:
Shares held by
domestic legal
persons
Shares
held by domestic 26,965,000 2.05% 112,500 -6,530,095 -6,417,595 20,547,405 1.56%
natural persons
4. Shares held
by foreign 595,600 0.05% -258,875 -258,875 336,725 0.02%
shareholders
Including:
Shares held by
foreign legal
persons
Shares
held by foreign 595,600 0.05% -258,875 -258,875 336,725 0.02%
natural persons
II. Shares without
1,285,030,233 97.90% 960,608 6,649,542 7,610,150 1,292,640,383 98.41%
selling restrictions
1. RMB-
denominated 1,285,030,233 97.90% 960,608 6,649,542 7,610,150 1,292,640,383 98.41%
ordinary shares
2. Domestic
listed foreign
shares
3. Overseas
55
C&S Paper Co., Ltd. Semi-annual Report 2022
listed foreign
shares
4. Others
III. Total number 100.00 100.00
1,312,590,833 1,073,108 -139,428 933,680 1,313,524,513
of shares % %
Explanation on changes in shares
√ Applicable □ Not applicable
1. During the reporting period, vesting incentive recipients of stock options awarded in the first grant under the
2018 Stock Option and Restricted Stock Incentive Plan exercised the rights of 31,205 shares, and recipients of
reserved stock options exercised the rights of 1,041,903 shares; a total of 1,073,108 shares were exercised. As a
result, the Company’s total share capital increased by 1,073,108 shares.
2. During the reporting period, in the second unlock period for the reserved restricted shares awarded under the
2018 Stock Option and Restricted Stock Incentive Plan, six incentive recipients lost the incentive qualification
since they left the Company prior to the unlock, which involved 134,050 restricted shares that had been
awarded but not unlocked; meanwhile, eleven incentive recipients could only unlock a proportion of the shares
since they passed the performance appraisal but failed to get a full mark, which involved 5,378 restricted shares
that had been granted but not unlocked. For the involved 17 incentive recipients due to the foregoing reasons, a
total of 139,428 restricted shares need to be repurchased and canceled. As of March 15, 2022, the repurchase
and cancellation procedures had been completed for the aforesaid restricted shares. As a result, the Company’s
total share capital decreased by 139,428 shares.
Approval of changes in shares
√ Applicable □ Not applicable
1. The Board of Directors’ disposition of the exercise matters for the second exercise period of restricted stock
options awarded in the first grant and reserved stock options under the 2018 Stock Option and Restricted Stock
Incentive Plan had been authorized by the 2019 First Extraordinary General Meeting and reviewed and approved
by the 5th meeting of the fifth session of the Board of Directors, the 3th meeting of the fifh session of the Board of
Supervisors, the 12th meeting of the fifth session of the Board of Directors, and the 7th meeting of the fifth
session of the Board of Supervisors.
2. The Board of Directors’ disposition of the repurchase and deregistration matters for the third unlocking of first
grant shares under the 2018 Stock Option and Restricted Stock Incentive Plan had been authorized by the 2019
First Extraordinary General Meeting and reviewed and approved by the 14th meeting of the fifth session of the
Board of Directors and 9th meeting of the fifth session of the Board of Supervisors.
3. The Board of Directors’ disposition of the repurchase and deregistration matters for the second unlocking of
reserved shares under the 2018 Stock Option and Restricted Stock Incentive Plan had been approved by the 12th
meeting of the fifth session of the Board of Directors, 6th meeting of the fifth session of the Board of Supervisors
and the 2021 Sixth Extraordinary General Meeting.
Transfer of title of changed shares
□ Applicable √ Not applicable
Implementation of share repurchase
√ Applicable □ Not applicable
56
C&S Paper Co., Ltd. Semi-annual Report 2022
On January 5, 2021, the Company held the 30th meeting of the fourth session of the Board of Directors which
reviewed and passed the Proposal on Share Repurchase of the Company. The Company plans to repurchase
shares of the Company via centralized bidding transaction using own funds, with a total amount of RMB 180
million to RMB 360 million. The repurchase price shall not outstrip RMB31.515/share (inclusive).
On May 21, 2021, the Company held the fifth meeting of the fifth session of the Board of Directors which
reviewed and passed the Proposal on Adjusting the Price and Amount of the Company's Share Repurchase.
According to the proposal, the Company adjusted the upper price limit of the share repurchase from RMB
31.515/share (inclusive) to RMB 45/share (inclusive) and the amount range from RMB 180-360 million to
RMB 330-660 million.
On July 29, 2021, the Company held the eighth meeting of the fifth session of the Board of Directors which
reviewed and passed the Proposal on Adjusting the Amount of the Company's Share Repurchase. According to
the proposal, the Company adjusted the amount range of the repurchase from RMB 330-660 million to RMB
660-1,000 million.
The implementation period of the repurchase plan expired on January 6, 2022, and the plan was successfully
implemented. The Company repurchased a total of 24,863,087 shares through its specialized repurchase
securities account, accounting for 1.8942% of its total share capital. The highest and lowest transaction price
was RMB34.50/share and RMB16.48/share, respectively, and the total transaction amount was RMB
661,249,972.28 (excluding transaction fee).
Implementation of share repurchase by centralized bidding
□ Applicable √ Not applicable
Impact of share changes on basic earnings per share and diluted earnings per share, net assets per share
attributable to ordinary shareholders of the Company, and other financial indicators in last year and the latest
period
□ Applicable √ Not applicable
Other contents considered necessary by the Company or required to be disclosed by the securities regulatory
authority
□ Applicable √ Not applicable
2. Changes in shares subject to selling restrictions
√ Applicable □ Not applicable
Unit: share
Number of
Increase
Number of shares Number of
in shares
shares subject released shares subject to
subject to Date of release
Shareholder’s to selling from selling Reason for Selling
selling from selling
name restrictions at selling restrictions at restrictions
restriction restrictions
the beginning restrictions the end of the
s during
of the period during the year
the period
period
Deng Lock-up shares of senior
5,064,608 5,064,608 Long-term
Yingzhong management
Lock-up shares of senior
Liu Peng 45,975 45,975 Long-term
management
57
C&S Paper Co., Ltd. Semi-annual Report 2022
Lock-up shares of senior
Deng Guanbiao 3,718,105 3,718,105 Long-term
management
Lock-up shares of senior
Deng Guanjie 900,730 900,730 Long-term
management
Lock-up shares of senior
management; the
increase in restricted
shares is due to the
Zhang Yang 37,500 120,000 157,500 locking of unlocked Long-term
restricted shares
proportional to the
position of the senior
management.
Lock-up shares of senior
management; the
increase in restricted
shares is due to the
Yue Yong 7,463,305 544,375 330,000 7,248,930 locking of unlocked Long-term
restricted shares
proportional to the
position of the senior
management.
Lock-up shares of senior
Li Zhaojin 8,100 8,100 Long-term
management
Lock-up shares of senior
Zhao Ming 6,250 6,250 Long-term
management
Lock-up shares of senior
management; the
increase in restricted
shares is due to the
Lin Tiande 212,141 26,000 238,141 locking of unlocked Long-term
restricted shares
proportional to the
position of the senior
management.
Lock-up shares of senior
management; the
increase in restricted
shares is due to the
Dong Ye 122,794 60,000 182,794 locking of unlocked Long-term
restricted shares
proportional to the
position of the senior
management.
Lock-up shares of senior
Chen Haiyuan 12,675 12,675 Long-term
management
Lock-up shares of senior
Zhang Gao 32,000 32,000 Long-term
management
Release of
Li selling
Lock-up shares of senior restrictions in
Youquan(resign 44,400 11,100 33,300
management accordance
ed) with relevant
regulations
Release of
selling
Zhou Qichao Lock-up shares of senior restrictions in
374,072 93,518 280,554
(resigned) management accordance
with relevant
regulations
Lock-up shares of senior Release of
selling
Ye Longfang management; the
150,000 37,500 112,500 225,000 restrictions in
(resigned) increase in restricted accordance
shares is due to the with relevant
58
C&S Paper Co., Ltd. Semi-annual Report 2022
locking of shares upon regulations
resignation.
Release of
selling
Dai Zhenji Lock-up shares of senior restrictions in
427,500 106,875 320,625
(resigned) management accordance
with relevant
regulations
Release of
selling
Liu Jinfeng Lock-up shares of senior restrictions in
1,375,912 449,537 926,375
(resigned) management accordance
with relevant
regulations
Lock-up shares of senior Release of
management; the selling
Deng restrictions in
increase in restricted
Wenxi(resigned 15,825 5,275 21,100 accordance
shares is due to the with relevant
)
locking of shares upon regulations
resignation.
In accordance with 2018 Pursuant to
Stock Option and 2018 Stock
Equity
Restricted Stock Option and
incentive 7,548,708 6,087,340 1,461,368
Incentive Plan, 40% of Restricted
recipients
the shares of the third Stock Incentive
phase were still locked. Plan (
Total 27,560,600 7,330,245 653,775 20,884,130 -- --
II. Issuance and Listing of Securities
□ Applicable √ Not applicable
III. Total Number of Shareholders and Shareholding
Unit: share
Total number of ordinary Total number of preferred shareholders whose
shareholders as at the end 146,178 voting rights were resumed at the end of the 0
of the reporting period reporting period (if any) (see Note VIII)
Shareholdings of ordinary shareholders with more than 5% or the top 10 ordinary shareholders
Increase Pledged, marked or frozen
Number of Number of
Shareho /decreas Number of
ordinary shares ordinary shares
Name of Nature of lding e during ordinary shares
held at the end of held subject to Share
shareholder shareholder percenta the held without Number of shares
the reporting selling
ge (%) reportin selling restrictions status
period restrictions
g period
Guangdong Domestic
Zhongshun non-state-
Paper owned 28.60% 375,655,958 375,655,958
Group Co., legal
Ltd. person
Foreign
Chung
legal 20.29% 266,504,789 266,504,789
Shun Co.
person
Hong Kong Foreign
Securities legal 3.90% 51,271,389 Reduced 51,271,389
Clearing person
59
C&S Paper Co., Ltd. Semi-annual Report 2022
Co., Ltd.
Ernest
Partners Foreign
LLC — legal 0.79% 10,402,100 10,402,100
Client person
funds
Domestic
Yue Yong natural 0.74% 9,665,241 7,248,930 2,416,311
person
Domestic
Deng
natural 0.51% 6,752,811 5,064,608 1,688,203
Yingzhong
person
#
Domestic
Zhongshan
non-state-
Xinda
owned 0.47% 6,123,636 6,123,636
Investment
legal
Manageme
person
nt Co., Ltd.
Domestic
Deng
natural 0.38% 4,957,473 3,718,105 1,239,368
Guanbiao
person
Domestic
Pledge
Li Hong natural 0.33% 4,297,300 4,297,300 4,200,000
d
person
Domestic
#Chen
natural 0.28% 3,667,600 3,667,600
Ruiqiang
person
Strategic investors or
general legal persons
becoming top ten
shareholders due to Not applicable
private placement of new
shares (if any) (see Note
3)
1. Among the top ten shareholders mentioned above, Mr. Deng Yingzhong and Mr. Deng Guanbiao are among the
actual controllers of the Company; Guangdong Zhongshun Paper Group Co., Ltd. and Chung Shun Co. are the
Description on the related enterprises controlled by actual controllers of the Company, i.e. Mr. Deng Yingzhong, Deng Guanbiao and Deng
relationship or parties Guanjie. That is, Guangdong Zhongshun Paper Group Co., Ltd. and Chung Shun Co. are related parties. Mr. Yue
acting-in-concert Yong is an incumbent senior manager of the Company.
arrangements among the 2. Except for the above situation, it is unknown to the Company whether there is related party relationship among
above shareholders other shareholders, or whether there is acting-in-concert among other shareholders as stipulated in the
Administrative Measures for the Disclosure of Information on Changes in Shareholders’ Shareholding of Listed
Companies.
Description on
entrusting/being entrusted
with voting rights and
Not applicable
waver of voting rights by
the aforementioned
shareholders:
Description on special
There is a special repurchase account “C&S Paper Special Repurchase Securities Account” among the top 10
repurchase account among
shareholders. As of the end of the reporting period, this repurchase account held 26,758,987 shares, with a
top 10 shareholders (if
shareholding ratio of 2.04%. Pursuant to relevant regulations, it is not included in the list of top 10 shareholders.
any) (see note 10)
Shareholdings of top 10 shareholders not subject to selling restrictions
Type of shares
Name of shareholder Number of shares held not subject to selling restrictions
Type of shares Number
RMB-
Guangdong Zhongshun
375,655,958 denominated 375,655,958
Paper Group Co., Ltd.
ordinary shares
RMB-
Chung Shun Co. 266,504,789 denominated 266,504,789
ordinary shares
Hong Kong Securities RMB-
51,271,389 51,271,389
Clearing Co., Ltd. denominated
60
C&S Paper Co., Ltd. Semi-annual Report 2022
ordinary shares
RMB-
Ernest Partners LLC —
10,402,100 denominated 10,402,100
Client funds
ordinary shares
# Zhongshan Xinda RMB-
Investment Management 6,123,636 denominated 6,123,636
Co., Ltd. ordinary shares
RMB-
Li Hong 4,297,300 denominated 4,297,300
ordinary shares
RMB-
#Chen Ruiqiang 3,667,600 denominated 3,667,600
ordinary shares
RMB-
ABC — CSI Smallcap
3,648,489 denominated 3,648,489
500 ETF ordinary shares
RMB-
ICBC — CSI Main
3,600,084 denominated 3,600,084
Consumer Staples ETF ordinary shares
RMB-
Yuan Xuemei 3,592,000 denominated 3,592,000
ordinary shares
Description on the related
relationship or parties
1. Among the top ten shareholders mentioned above, Guangdong Zhongshun Paper Group Co., Ltd. and Chung
acting-in-concert among
Shun Co. are the enterprises controlled by actual controllers of the Company, i.e. Mr. Deng Yingzhong, Mr. Deng
the top ten ordinary
Guanbiao and Mr. Deng Guanjie. That is, Guangdong Zhongshun Paper Group Co., Ltd. and Chung Shun Co. are
shareholders without
related parties.
selling restrictions and
2. Except for the above situation, it is unknown to the Company whether there is related party relationship among
between the top ten
other shareholders, or whether there is acting-in-concert among other shareholders as stipulated in the
ordinary shareholders
Administrative Measures for the Disclosure of Information on Changes in Shareholders’ Shareholding of Listed
without selling restrictions
Companies.
and the top ten ordinary
shareholders
Description on the top 10
ordinary shareholders’ 1. Shareholder Zhongshan Xinda Investment Management Co., Ltd. holds 6,120,602 shares through a client credit
participation in margin transaction guarantee securities account.
trading and securities 2. Shareholder Chen Ruiqiang holds 843, 500 shares through a client credit transaction guarantee securities
lending business (if any) account.
(see Note 4)
Whether the top ten ordinary shareholders and the top ten shareholders without selling restrictions conducted
the agreed repurchase transaction during the reporting period
□ Yes √ No
The Company’s top ten ordinary shareholders and top ten ordinary shareholders without selling restrictions did
not conduct agreed repurchase transactions during the reporting period.
IV. Changes in Shareholding of Directors, Supervisors and Senior Management
√ Applicable □ Not applicable
Number Number
Number of
of of
shares
shares shares
Number of Decreas subject to
Increase Number of subject subject
Positi shares held e of selling
of shares shares held to to
Name Position on at the shares restrictions
during the at the end of selling selling
status beginning of during granted at
year the year restricti restricti
the year the year the
ons ons
beginning of
granted granted
the period
in the at the
61
C&S Paper Co., Ltd. Semi-annual Report 2022
period end of
the
period
Deng
Incum
Yingzhon Director 6,752,811 6,752,811
bent
g
Chairman, Incum
Liu Peng 61,300 61,300
President bent
Deng Vice Incum
4,957,473 4,957,473
Guanbiao Chairman bent
Deng Vice Incum
1,200,974 1,200,974
Guanjie Chairman bent
Zhang Vice Incum
210,000 210,000 120,000 0
Yang President bent
Independe Incum
He Haidi nt Director 0 0
bent
He Independe Incum
nt Director 0 0
Guoquan bent
Independe Incum
Liu Die nt Director 0 0
bent
Vice Incum
Yue Yong President 9,665,241 9,665,241 440,000 0
bent
Li Vice Incum
President 10,800 10,800
Zhaojin bent
Zhao Vice Incum
President 35,000 35,000 20,000 20,000
Ming bent
Lin Vice Incum
President 317,521 317,521 26,000 0
Tiande bent
Chief
Incum
Dong Ye Financial 243,725 243,725 60,000 0
bent
Officer
Board
Zhang Secretary, Incum
0 0
Haijun Vice bent
President
Chairman
of the
Chen Incum
Board of 16,900 16,900
Haiyuan bent
Supervisor
s
Zhang Supervisor Incum
72,000 72,000 22,000 22,000
Gao bent
Liang Supervisor Incum
0 0
Yongliang bent
Ye Vice Resig
ned 150,000 150,000 300,000
Longfang President
Board Resig
Zhou Secretary, ned
374,072 93,000 281,072
Qichao Vice
President
Li Resig
Supervisor ned 65,280 5,000 60,280
Youquan
Director, Resig
Dai ned
Joint 427,500 106,875 320,625
Zhenji
President
Liu Director,V Resig
ned 1,809,350 450,975 1,358,375 432,000 432,000
Jinfeng ice
62
C&S Paper Co., Ltd. Semi-annual Report 2022
President
Deng Vice Resig
ned 21,100 21,100
Wenxi President
合计 -- -- 26,391,047 150,000 655,850 25,885,197 1,120,000 0 474,000
V. Changes of Shareholders and Actual Controllers
Changes of controlling shareholders during the reporting period
□ Applicable √ Not applicable
There was no change of the Company’s controlling shareholder during the reporting period.
Changes of actual controllers during the reporting period
□ Applicable √ Not applicable
There was no change of the Company’s actual controllers during the reporting period.
63
C&S Paper Co., Ltd. Semi-annual Report 2022
Section VIII Particulars of Preference Shares
□ Applicable √ Not applicable
The Company had no preference shares during the reporting period.
64
C&S Paper Co., Ltd. Semi-annual Report 2022
Section IX Corporate Bonds
□ Applicable √ Not applicable
65
C&S Paper Co., Ltd. Semi-annual Report 2022
Section X Financial Report
I. Audit Report
Whether the Semi-annual Report has been audited
□ Yes √ No
The Semi-annual Report of the Company has not been audited.
II. Financial Statements
Unit of financial statements: RMB
1. Consolidated balance sheet
Prepared by: C&S Paper Co., Ltd.
June 30，2022
Unit: RMB
Item June 30, 2022 January 01, 2022
Current assets:
Monetary funds 1,450,789,796.40 875,052,493.12
Settlement reserve
Lending to banks and other
financial institutions
Tradable financial assets 9,247.32
Derivative financial assets
Notes receivable 42,710,958.40 2,327,060.20
Accounts receivable 1,117,200,068.59 1,177,831,399.28
Accounts receivable financing
Prepayments 115,180,603.19 36,685,769.73
Premium receivable
Reinsurance payables
Reinsurance contract reserves
receivable
Other receivables 21,078,983.69 12,353,794.41
Including: Interest receivable
Dividends receivable
Financial assets held under resale
agreements
Inventory 1,193,701,905.65 1,467,631,516.95
Contract assets
Assets held for sale 57,073,059.69
Non-current assets due within one
year
Other current assets 193,625,193.68 123,530,879.96
Total current assets 4,134,296,756.92 3,752,485,973.34
Non-current assets:
66
C&S Paper Co., Ltd. Semi-annual Report 2022
Loans and advances to customers
Investments in creditor’s rights
Investments in other creditor’s
rights
Long-term receivable
Long-term equity investment
Investment in other equity
instruments
Other non-current financial assets
Investment property 32,420,039.64 33,138,481.74
Fixed assets 3,120,455,256.80 3,129,371,506.40
Construction work in progress 82,465,014.18 134,875,696.94
Productive biological assets
Oil & gas assets
Right-of-use assets 12,668,746.74 14,300,520.77
Intangible assets 166,085,561.50 168,453,928.11
Development expenses
Goodwill 64,654.15 64,654.15
Long-term deferred expenses 13,947,364.44 16,762,904.09
Deferred income tax assets 200,979,141.82 182,185,944.85
Other non-current assets 89,982,652.65 91,642,363.45
Total non-current assets 3,719,068,431.92 3,770,796,000.50
Total assets 7,853,365,188.84 7,523,281,973.84
Current liabilities:
Short-term borrowings 242,000,000.00
Borrowings from PBC
Placements from banks and other
financial institutions
Tradable financial liabilities
Derivative financial liabilities
Notes payable 370,849,951.28 334,969,632.58
Accounts payable 903,093,837.05 829,113,780.31
Payments received in advance
Contract liabilities 53,611,707.18 164,360,443.34
Proceeds from financial assets sold
under repo
Customer bank deposits and due to
banks and other financial institutions
Funds from securities trading
agency
Funds from securities underwriting
agency
Employee remuneration payable 111,357,699.48 139,551,406.46
Tax and fees payable 103,605,149.17 107,184,810.97
Other payables 856,826,481.55 854,872,178.78
Including: Interests payable
Dividends payable 457,998.40 1,352,746.20
Transaction fee and commission
receivable
Reinsurance payable
Liabilities held for sale
Non-current liabilities due within
8,571,955.94 8,616,487.38
one year
Other current liabilities 6,802,339.11 21,250,613.29
Total current liabilities 2,656,719,120.76 2,459,919,353.11
Non-current liabilities:
67
C&S Paper Co., Ltd. Semi-annual Report 2022
Insurance contract reserves
Long-term borrowings
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities 5,368,471.00 5,565,928.14
Long-term payable
Long-term employee remuneration
payable
Provision
Deferred income 105,718,904.25 104,483,429.54
Deferred income tax liabilities 46,349,637.34 46,514,550.50
Other non-current liabilities
Total non-current liabilities 157,437,012.59 156,563,908.18
Total liabilities 2,814,156,133.35 2,616,483,261.29
Owner’s equity:
Share capital 1,313,781,913.00 1,312,457,555.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserve 948,495,627.64 940,742,686.19
Less: Treasury shares 697,383,572.23 722,243,283.39
Other comprehensive income
Special reserves
Surplus reserves 106,984,275.42 106,984,275.42
General reserves
Retained earnings 3,364,641,423.11 3,265,611,428.36
Total equity attributable to owners of the
5,036,519,666.94 4,903,552,661.58
parent company
Equities of minority shareholders 2,689,388.55 3,246,050.97
Total owner’s equity 5,039,209,055.49 4,906,798,712.55
Total liabilities and owners’ equities 7,853,365,188.84 7,523,281,973.84
Legal representative: Liu Peng Person in charge of accounting: Dong Ye Person in charge of accounting
department: Xu Xianjing
2. Balance sheet of the Parent Company
Unit: RMB
Item June 30, 2022 January 01, 2022
Current assets:
Monetary funds 170,400,562.29 58,690,877.05
Tradable financial assets
Derivative financial assets
Notes receivable 10,185.51
Accounts receivable 96,506,312.66 171,055,039.37
Accounts receivable financing
Prepayments 49,007,960.71 3,867,904.95
Other receivables 192,989,166.37 128,580,102.05
Including: Interest receivable
Dividends receivable
Inventory 182,620,749.58 120,747,222.55
Contract assets
Assets held for sale
68
C&S Paper Co., Ltd. Semi-annual Report 2022
Non-current assets due within one
year
Other current assets 6,313,411.87 23,545,158.50
Total current assets 697,838,163.48 506,496,489.98
Non-current assets:
Investments in creditor’s rights
Investments in other creditor’s
rights
Long-term receivable
Long-term equity investment 1,947,211,642.68 1,945,421,378.56
Investment in other equity
instruments
Other non-current financial assets
Investment property 16,771,232.29 17,160,598.03
Fixed assets 364,937,716.68 238,119,182.14
Construction work in progress 39,541,385.11 114,301,119.02
Productive biological assets
Oil & gas assets
Right-of-use assets 2,771,824.48 2,207,428.16
Intangible assets 26,907,058.70 27,486,332.17
Development expenses
Goodwill
Long-term deferred expenses
Deferred income tax assets 87,651,562.33 68,572,899.42
Other non-current assets 83,165,169.26 82,852,575.28
Total non-current assets 2,568,957,591.53 2,496,121,512.78
Total assets 3,266,795,755.01 3,002,618,002.76
Current liabilities:
Short-term borrowings
Tradable financial liabilities
Derivative financial liabilities
Notes payable 90,000,000.00
Accounts payable 683,075,223.11 792,444,139.83
Payments received in advance
Contract liabilities 13,740,381.68 38,166,115.55
Employee remuneration payable 32,611,504.00 42,822,592.18
Tax and fees payable 4,977,434.98 7,119,037.16
Other payables 74,152,284.07 103,779,839.13
Including: Interests payable
Dividends payable 457,998.40 1,352,746.20
Liabilities held for sale
Non-current liabilities due within
1,506,916.84 1,125,486.62
one year
Other current liabilities 1,786,249.62 5,334,195.60
Total current liabilities 901,849,994.30 990,791,406.07
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities 1,306,789.39 1,083,172.96
Long-term payable
Long-term employee remuneration
payable
Provision
Deferred income 4,044,440.09 4,648,115.81
Deferred income tax liabilities 12,637,105.63 7,528,901.04
69
C&S Paper Co., Ltd. Semi-annual Report 2022
Other non-current liabilities
Total non-current liabilities 17,988,335.11 13,260,189.81
Total liabilities 919,838,329.41 1,004,051,595.88
Owner’s equity:
Share capital 1,313,781,913.00 1,312,457,555.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserve 872,193,199.50 863,078,990.57
Less: Treasury shares 697,383,572.23 722,243,283.39
Other comprehensive income
Special reserves
Surplus reserves 106,862,941.14 106,862,941.14
Retained earnings 751,502,944.19 438,410,203.56
Total owner’s equity 2,346,957,425.60 1,998,566,406.88
Total liabilities and owners’ equities 3,266,795,755.01 3,002,618,002.76
3. Consolidated income statement
Unit: RMB
Item Half-Year of 2022 Half-Year of 2021
I. Total Operating Income 4,367,618,113.61 4,247,641,836.38
Including: Operating income 4,367,618,113.61 4,247,641,836.38
Interest income
Gross earned premiums
Service charge and
commission income
II. Total Operating Cost 4,116,050,602.19 3,767,785,569.02
Including: Operating costs 2,929,313,606.05 2,562,244,166.21
Interest expenses
Service charge and
commission expenses
Surrender value
Net compensation expenses
Net appropriation of
insurance reserve
Policy dividends expenses
Reinsurance costs
Tax and surcharges 28,804,761.00 29,251,004.43
Selling expenses 874,040,563.35 915,478,651.72
Administrative expenses 180,176,434.40 165,200,078.38
R&D expenses 105,182,287.61 97,414,812.32
Finance expenses -1,467,050.22 -1,803,144.04
Including: Interest fees 1,730,495.87 975,546.01
Interest income 5,594,433.94 6,623,270.61
Plus: Other income 13,819,921.40 11,671,362.52
Return on investment (“-”
183,493.42 358,473.15
indicates loss)
Including: Return on
investment in associates and joint
ventures
Income from the
derecognition of financial assets
measured at amortized cost
Exchange gains (“-” indicates
70
C&S Paper Co., Ltd. Semi-annual Report 2022
loss)
Gains from net exposure
hedging (“-” indicates loss)
Gains from changes in fair
-2,538.48
value (“-” indicates loss)
Credit impairment losses (“-”
1,833,293.54 1,301,606.93
indicates loss)
Asset impairment losses (“-”
-1,026,689.87 -2,753,828.11
indicates loss)
Return on disposal of assets (“-
-1,085,279.69 -259,896.46
” indicates loss)
III. Operating Profit (“-” indicates loss) 265,289,711.74 490,173,985.39
Plus: Non-operating income 1,914,737.14 1,708,366.54
Less: Non-operating expenditure 5,989,215.49 3,638,183.86
IV. Total Profit (“-” indicates total loss) 261,215,233.39 488,244,168.07
Less: Income tax expense 33,733,447.46 81,099,520.72
V. Net Profit (“-” indicates net loss) 227,481,785.93 407,144,647.35
i. Classified by operation continuity
1. Net profit from continued
227,481,785.93 407,144,647.35
operation (“-” indicates net loss)
2. Net profit from discontinued
operation (“-” indicates net loss)
ii. Classified by attribution of
ownership
1. Net profit attributable to owners
227,639,705.35 407,161,317.15
of the parent company
2. Minority shareholders’ profits
-157,919.42 -16,669.80
and losses
VI. Net Amount of Other Comprehensive
Income after Tax
Total other comprehensive after-tax
net income attributable to owners of the
parent company
i. Other comprehensive income not
able to be reclassified into the profit or
loss
1. Changes of re-
measurement of the defined benefit plan
2. Other comprehensive
income that cannot be transferred into
the profit or loss under equity method
3. Changes in fair value of
investment in other equity instruments
4. Changes in fair value of
credit risk of the enterprise
5. Others
ii. Other comprehensive income
reclassified into the profit or loss
1. Other comprehensive
income to be transferred into the profit or
loss under equity method
2. Changes in fair value of
investment in other creditor’s rights
3. Financial assets
reclassified into other comprehensive
income
4. Impairment provision for
71
C&S Paper Co., Ltd. Semi-annual Report 2022
credit of investment in other creditor’s
rights
5. Reserve of cash flow
hedge
6. Converted difference in
foreign currency financial statements
7. Others
Total other comprehensive after-tax
net income attributable to minority
shareholders
VII. Total Comprehensive Income 227,481,785.93 407,144,647.35
Total comprehensive income
attributable to owners of the parent 227,639,705.35 407,161,317.15
company
Total comprehensive income
-157,919.42 -16,669.80
attributable to minority shareholders
VIII. Earnings per Share:
i. Basic earnings per share 0.17 0.31
ii. Diluted earnings per share 0.17 0.31
For business combinations of the current period under common control, the net profit realized by the combined party before the
combination is: RMB0.00; the net profit realized by the combined party in last period is: RMB0.00.
Legal representative: Liu Peng Person in charge of accounting: Dong Ye Person in charge of accounting
department: Xu Xianjing
4. Income statement of the Parent Company
Unit: RMB
Item Half-Year of 2022 Half-Year of 2021
I. Operating Income 1,040,228,094.53 916,066,342.46
Less: Operating cost 934,724,115.97 788,799,370.03
Tax and surcharges 1,444,145.77 2,176,306.49
Selling expenses 83,355,103.02 87,176,883.65
Administrative expenses 78,567,987.49 65,964,350.45
R&D expenses
Finance expenses 13,198,563.52 -884,099.85
Including: Interest fees 372,903.68 26,220.26
Interest income 748,450.43 809,358.94
Plus: Other income 4,064,729.62 1,516,457.89
Return on investment (“-”
491,911,145.00 482,704,072.79
indicates loss)
Including: Return on
investment in associates and joint
ventures
Profits from derecognition
of financial assets at amortized cost
Gains from net exposure
hedging (“-” indicates loss)
Gains from changes in fair
value (“-” indicates loss)
Credit impairment losses (“-”
-513,297.02 -573,774.23
indicates loss)
Asset impairment losses (“-”
-351,354.84 -15,126.42
indicates loss)
72
C&S Paper Co., Ltd. Semi-annual Report 2022
Return on disposal of assets (“-
136,016.06
” indicates loss)
II. Operating Profit (“-” indicates loss) 424,185,417.58 456,465,161.72
Plus: Non-operating income 352,230.92 204,390.14
Less: Non-operating expenditure 339,798.68 1,457,600.53
III. Total Profit (“-” indicates total loss) 424,197,849.82 455,211,951.33
Less: Income tax expense -17,504,601.41 -6,922,842.44
IV. Net Profit (“-” indicates net loss) 441,702,451.23 462,134,793.77
i. Net profit from continued
441,702,451.23 462,134,793.77
operation (“-” indicates net loss)
ii. Net profit from discontinued
operation (“-” indicates net loss)
V. Net Amount of Other Comprehensive
Income after Tax
i. Other comprehensive income not
able to be reclassified into the profit or
loss
1. Changes of re-
measurement of the defined benefit plan
2. Other comprehensive
income that cannot be transferred into
the profit or loss under equity method
3. Changes in fair value of
investment in other equity instruments
4. Changes in fair value of
credit risk of the enterprise
5. Others
ii. Other comprehensive income
reclassified into the profit or loss
1. Other comprehensive
income to be transferred into the profit or
loss under equity method
2. Changes in fair value of
investment in other creditor’s rights
3. Financial assets
reclassified into other comprehensive
income
4. Impairment provision for
credit of investment in other creditor’s
rights
5. Reserve of cash flow
hedge
6. Converted difference in
foreign currency financial statements
7. Others
VI. Total Comprehensive Income 441,702,451.23 462,134,793.77
VII. Earnings per Share:
i. Basic earnings per share
ii. Diluted earnings per share
5. Consolidated cash flow statement
Unit: RMB
Item Half-Year of 2022 Half-Year of 2021
I. Cash Flows from Operating Activities:
Cash received from sale of goods or 4,390,764,748.02 4,360,141,241.09
73
C&S Paper Co., Ltd. Semi-annual Report 2022
rendering of services
Net increase in deposits from
customers, banks and non-bank financial
institutions
Net increase in due to central banks
Net increase in placements from
other financial institutions
Net cash from reinsurance business
Net increase in deposits and
investment of the insured
Cash obtained from interest, net fee
and commission
Net cash from reinsurance business
Net increase in placements from
banks and other financial institutions
Net increase in repo service fund
Net cash from agent securities
trading
Tax rebates 9,662,927.59
Cash received related to other
52,109,531.96 38,362,676.67
operating activities
Sub-total of cash inflow from operating
4,452,537,207.57 4,398,503,917.76
activities
Cash paid for goods purchased and
2,526,209,791.30 2,487,866,757.79
services rendered
Net loans and advances to
customers
Net increase in deposits with the
central bank, banks and non-bank
financial institutions
Cash paid for claims of direct
insurance contracts
Net increase in placements with
banks and non-bank financial institutions
Cash paid for interest, fee and
commission
Cash paid for dividends of the
insured
Cash paid to and on behalf of
487,529,479.85 435,057,207.01
employees
Tax payments 268,061,564.38 310,071,504.86
Cash payments related to other
471,186,646.29 427,642,659.91
operating activities
Sub-total of cash outflow from operating
3,752,987,481.82 3,660,638,129.57
activities
Net cash flows from operating activities 699,549,725.75 737,865,788.19
II. Cash Flows from Investing Activities:
Cash from realization of investment
Cash received from the return on
188,274.88 358,473.15
investments
Net cash received from the disposal
of fixed assets, intangible assets, and 8,896,516.73 10,542,186.47
other long-term assets
Net amount of cash received from
the disposal of subsidiaries and other
operating organizations
Cash received related to other 41,239,541.68 50,000,000.00
74
C&S Paper Co., Ltd. Semi-annual Report 2022
investing activities
Sub-total of cash inflow from investing
50,324,333.29 60,900,659.62
activities
Cash paid for the acquisition and
construction of fixed assets, intangible 158,095,067.10 328,193,755.53
assets, and other long-term assets
Cash paid for investments
Net increase in pledged loans
Net amount of cash paid for
acquisition of subsidiaries and other
operating organizations
Cash payments related to other
140,000,000.00
investing activities
Sub-total of cash outflow from investing
298,095,067.10 328,193,755.53
activities
Net cash flows from investing activities -247,770,733.81 -267,293,095.91
III. Cash Flows from Financing
Activities:
Cash received from capital
5,345,461.64 11,355,276.29
contribution
Including: Proceeds received by
subsidiaries from minority shareholders’
investment
Cash received from borrowings 280,500,000.00 13,042,460.23
Cash received related to other
financing activities
Sub-total of cash inflow from financing
285,845,461.64 24,397,736.52
activities
Cash paid for repayments of
38,500,000.00 155,939,151.58
borrowings
Cash payment for interest expenses
130,888,041.74 129,388,592.82
and distribution of dividends or profits
Including: Dividend and profit paid
by subsidiaries to minority shareholders
Cash payments related to other
63,238,785.50 554,697,666.71
financing activities
Sub-total of cash outflow from financing
232,626,827.24 840,025,411.11
activities
Net cash flows from financing activities 53,218,634.40 -815,627,674.59
IV. Effect of Exchange Rate Changes on
12,379,862.97 -3,754,951.08
Cash and Cash Equivalents
V. Net Increase in Cash and Cash
517,377,489.31 -348,809,933.39
Equivalents
Plus: Opening balance of cash and
797,797,675.70 1,050,034,135.72
cash equivalents
VI. Closing Balance of Cash and Cash
1,315,175,165.01 701,224,202.33
Equivalents
6. Cash flow statement of the Parent Company
Unit: RMB
Item Half-Year of 2022 Half-Year of 2021
I. Cash Flows from Operating Activities:
Cash received from sale of goods or
887,041,490.22 825,204,668.76
rendering of services
Tax rebates 2,925,548.55
75
C&S Paper Co., Ltd. Semi-annual Report 2022
Cash received related to other
172,267,914.07 350,780,128.27
operating activities
Sub-total of cash inflow from operating
1,062,234,952.84 1,175,984,797.03
activities
Cash paid for goods purchased and
829,387,529.96 628,652,955.42
services rendered
Cash paid to and on behalf of
121,130,410.24 105,969,767.52
employees
Tax payments 7,266,606.51 12,714,786.96
Cash payments related to other
293,808,313.12 361,078,648.58
operating activities
Sub-total of cash outflow from operating
1,251,592,859.83 1,108,416,158.48
activities
Net cash flows from operating activities -189,357,906.99 67,568,638.55
II. Cash Flows from Investing Activities:
Cash from realization of investment
Cash received from the return on
491,911,145.00 482,704,072.79
investments
Net cash received from the disposal
of fixed assets, intangible assets, and 2,780.00
other long-term assets
Net amount of cash received from
the disposal of subsidiaries and other
operating organizations
Cash received related to other
10,000,000.00 50,000,000.00
investing activities
Sub-total of cash inflow from investing
501,913,925.00 532,704,072.79
activities
Cash paid for the acquisition and
construction of fixed assets, intangible 75,347,277.57 21,866,189.95
assets, and other long-term assets
Cash paid for investments 500,000.00 5,000,000.00
Net amount of cash paid for
acquisition of subsidiaries and other
operating organizations
Cash payments related to other
investing activities
Sub-total of cash outflow from investing
75,847,277.57 26,866,189.95
activities
Net cash flows from investing activities 426,066,647.43 505,837,882.84
III. Cash Flows from Financing
Activities:
Cash received from capital
5,347,319.15 10,255,276.29
contribution
Cash received from borrowings
Cash received related to other
financing activities
Sub-total of cash inflow from financing
5,347,319.15 10,255,276.29
activities
Cash paid for repayments of
borrowings
Cash payment for interest expenses
129,825,291.73 128,594,549.77
and distribution of dividends or profits
Cash payments related to other
24,740,404.55 574,898,356.02
financing activities
Sub-total of cash outflow from financing
154,565,696.28 703,492,905.79
activities
76
C&S Paper Co., Ltd. Semi-annual Report 2022
Net cash flows from financing activities -149,218,377.13 -693,237,629.50
IV. Effect of Exchange Rate Changes on
3,308.96 -783.27
Cash and Cash Equivalents
V. Net Increase in Cash and Cash
87,493,672.27 -119,831,891.38
Equivalents
Plus: Opening balance of cash and
54,273,414.25 169,851,203.76
cash equivalents
VI. Closing Balance of Cash and Cash
141,767,086.52 50,019,312.38
Equivalents
77
C&S Paper Co., Ltd. Semi-annual Report 2022
7. Consolidated statement of changes in owner’s equity
Amount of the current period
Unit: RMB
Half-Year of 2022
Owner’s equity attributable to the Parent Company
Other O
equity t
instrume h
nts e
r
c S G
P o p e
r m e n
P
e p c e
e
f r i r
r O
e e a a
p t Equity of
Item r h l l
e O Less: Treasury h minority Total owner’s equity
Share capital e Capital reserve e r Surplus reserves r Retained earnings Subtotal
t t shares e shareholders
n n e e
u h r
c s s s
a e s
e i e e
l r
v r r
b s
s e v v
o
h e e
n
a i s s
d
r n
s
e c
s o
m
e
I. Balance at
1,312,457,555.00 940,742,686.19 722,243,283.39 106,984,275.42 3,265,611,428.36 4,903,552,661.58 3,246,050.97 4,906,798,712.55
the End of
78
C&S Paper Co., Ltd. Semi-annual Report 2022
Last Year
Plus:
Alternation to
accounting
policies
Correction to
previous
errors
Business
combinations
involving
enterprises
under
common
control
Others
II. Balance at
the Beginning 1,312,457,555.00 940,742,686.19 722,243,283.39 106,984,275.42 3,265,611,428.36 4,903,552,661.58 3,246,050.97 4,906,798,712.55
of the Year
III. Changes
in the Period
1,324,358.00 7,752,941.45 -24,859,711.16 99,029,994.75 132,967,005.36 -556,662.42 132,410,342.94
(“-” Indicates
Decrease)
i. Total
comprehensiv 227,639,705.35 227,639,705.35 -157,919.42 227,481,785.93
e income
ii. Capital
contributed or
1,324,358.00 7,752,941.45 -24,859,711.16 33,937,010.61 -398,743.00 33,538,267.61
decreased by
owner
79
C&S Paper Co., Ltd. Semi-annual Report 2022
1 Ordinary
shares
1,324,358.00 13,460,603.24 14,784,961.24 -400,000.00 14,384,961.24
contributed
by owners
2 Capital
contributed
by owners of
other equity
instruments
3 Share based
payments
recognized as -5,707,661.79 -24,859,711.16 19,152,049.37 19,152,049.37
owner’s
equity
4 Others 1,257.00 1,257.00
iii. Profit
-128,609,710.60 -128,609,710.60 -128,609,710.60
distribution
1
Appropriation
of surplus
reserves
2
Appropriation
of general
risk reserves
3 Distribution
to owners (or -128,609,710.60 -128,609,710.60 -128,609,710.60
shareholders)
4 Others
iv. Interior
balance from
owner’s
equity
1 Added
80
C&S Paper Co., Ltd. Semi-annual Report 2022
capital (or
share capital)
from capital
reserves
2 Added
capital (or
share capital)
from surplus
reserves
3
Compensatio
n of loss with
surplus
reserves
4 Retained
earnings of
carry-over of
the defined
benefit plan
5 Retained
earnings of
carry-over of
other
comprehensiv
e income
6 Others
v. Special
reserves
1
Appropriation
for the period
2 Use for the
period
vi. Others
81
C&S Paper Co., Ltd. Semi-annual Report 2022
IV. Closing
Balance of 1,313,781,913.00 948,495,627.64 697,383,572.23 106,984,275.42 3,364,641,423.11 5,036,519,666.94 2,689,388.55 5,039,209,055.49
the Period
Amount of last period
Unit: RMB
Half-Year of 2021
Owner’s equity attributable to the Parent Company
Other O
equity t
instrument h
s e
r
c S G
P o p e
r m e n
e p c e
f r i r
O
e e a a
Pe t Equity of
Item r h l l Total owner’s
rp O Less: Treasury h minority
Share capital e Capital reserve e r Surplus reserves r Retained earnings Subtotal equity
et t shares e shareholders
n n e e
ua h r
c s s s
l e s
e i e e
bo r
v r r
nd s
s e v v
s
h e e
a i s s
r n
e c
s o
m
e
I. Balance at 1,311,487,077.00 907,006,505.05 96,480,911.29 61,469,258.27 2,858,664,147.39 5,042,146,076.42 5,042,146,076.42
82
C&S Paper Co., Ltd. Semi-annual Report 2022
the End of
Last Year
Plus:
Alternation to
accounting
policies
Correction to
previous
errors
Business
combinations
involving
enterprises
under
common
control
Others
II. Balance at
the Beginning 1,311,487,077.00 907,006,505.05 96,480,911.29 61,469,258.27 2,858,664,147.39 5,042,146,076.42 5,042,146,076.42
of the Year
III. Changes
in the Period
-443,106.00 34,619,056.03 502,873,236.77 278,409,787.74 -190,287,499.00 1,083,330.20 -189,204,168.80
(“-” Indicates
Decrease)
i. Total
comprehensiv 407,161,317.15 407,161,317.15 -16,669.80 407,144,647.35
e income
ii. Capital
contributed or -443,106.00 34,619,056.03 502,873,236.77 -468,697,286.74 1,100,000.00 -467,597,286.74
decreased by
83
C&S Paper Co., Ltd. Semi-annual Report 2022
owner
1 Ordinary
shares
1,578,199.00 15,730,354.61 17,308,553.61 1,100,000.00 18,408,553.61
contributed by
owners
2 Capital
contributed by
owners of
other equity
instruments
3 Share based
payments
recognized as -2,021,305.00 18,888,701.42 -29,732,395.14 46,599,791.56 46,599,791.56
owner’s
equity
4 Others 532,605,631.91 -532,605,631.91 -532,605,631.91
iii. Profit
-128,751,529.41 -128,751,529.41 -128,751,529.41
distribution
1
Appropriation
of surplus
reserves
2
Appropriation
of general risk
reserves
3 Distribution
to owners (or -128,751,529.41 -128,751,529.41 -128,751,529.41
shareholders)
4 Others
iv. Interior
balance from
owner’s
equity
84
C&S Paper Co., Ltd. Semi-annual Report 2022
1 Added
capital (or
share capital)
from capital
reserves
2 Added
capital (or
share capital)
from surplus
reserves
3
Compensation
of loss with
surplus
reserves
4 Retained
earnings of
carry-over of
the defined
benefit plan
5 Retained
earnings of
carry-over of
other
comprehensiv
e income
6 Others
v. Special
reserves
1
Appropriation
for the period
2 Use for the
period
85
C&S Paper Co., Ltd. Semi-annual Report 2022
vi. Others
IV. Closing
Balance of the 1,311,043,971.00 941,625,561.08 599,354,148.06 61,469,258.27 3,137,073,935.13 4,851,858,577.42 1,083,330.20 4,852,941,907.62
Period
8. Statement of changes in owner’s equity of the Parent Company
Amount of the current period
Unit: RMB
Half-Year of 2022
Other equity instruments Other
Item Prefer Perpet Less: Treasury compreh Special Othe Total owner’s
Share capital Capital reserve Surplus reserves Retained earnings
ence ual Others shares ensive reserves rs equity
shares bonds income
I. Balance at
the End of 1,312,457,555.00 863,078,990.57 722,243,283.39 106,862,941.14 438,410,203.56 1,998,566,406.88
Last Year
Plus:
Alternation to
accounting
policies
Correction to
previous
errors
Others
II. Balance at
the Beginning 1,312,457,555.00 863,078,990.57 722,243,283.39 106,862,941.14 438,410,203.56 1,998,566,406.88
of the Year
III. Changes
1,324,358.00 9,114,208.93 -24,859,711.16 313,092,740.63 348,391,018.72
in the Period
86
C&S Paper Co., Ltd. Semi-annual Report 2022
(“-” Indicates
Decrease)
i. Total
comprehensiv 441,702,451.23 441,702,451.23
e income
ii. Capital
contributed or
1,324,358.00 9,114,208.93 -24,859,711.16 35,298,278.09
decreased by
owner
1 Ordinary
shares
1,324,358.00 13,460,603.24 14,784,961.24
contributed by
owners
2 Capital
contributed by
owners of
other equity
instruments
3 Share based
payments
recognized as -4,346,394.31 -24,859,711.16 20,513,316.85
owner’s
equity
4 Others
iii. Profit
-128,609,710.60 -128,609,710.60
distribution
1
Appropriation
of surplus
reserves
2 Distribution
to owners (or -128,609,710.60 -128,609,710.60
shareholders)
3 Others
87
C&S Paper Co., Ltd. Semi-annual Report 2022
iv. Interior
balance from
owner’s
equity
1 Added
capital (or
share capital)
from capital
reserves
2 Added
capital (or
share capital)
from surplus
reserves
3
Compensation
of loss with
surplus
reserves
4 Retained
earnings of
carry-over of
the defined
benefit plan
5 Retained
earnings of
carry-over of
other
comprehensiv
e income
6 Others
v. Special
reserves
1
88
C&S Paper Co., Ltd. Semi-annual Report 2022
Appropriation
for the period
2 Use for the
period
vi. Others
IV. Closing
Balance of the 1,313,781,913.00 872,193,199.50 697,383,572.23 106,862,941.14 751,502,944.19 2,346,957,425.60
Period
Amount of last period
Unit: RMB
Half-Year of 2021
Other equity instruments Other
Item Less: Treasury compreh Special Othe Total owner’s
Share capital Preference Perpetua Capital reserve Surplus reserves Retained earnings
Others shares ensive reserves rs equity
shares l bonds income
I. Balance at
the End of 1,311,487,077.00 831,693,206.19 96,480,911.29 61,347,923.99 157,409,974.07 2,265,457,269.96
Last Year
Plus:
Alternation
to
accounting
policies
Correction
to previous
errors
Others
II. Balance
at the
1,311,487,077.00 831,693,206.19 96,480,911.29 61,347,923.99 157,409,974.07 2,265,457,269.96
Beginning
of the Year
III. Changes -443,106.00 29,583,893.72 502,873,236.77 333,383,264.36 -140,349,184.69
89
C&S Paper Co., Ltd. Semi-annual Report 2022
in the
Period (“-”
Indicates
Decrease)
i. Total
comprehens 462,134,793.77 462,134,793.77
ive income
ii. Capital
contributed
-443,106.00 29,583,893.72 502,873,236.77 -473,732,449.05
or decreased
by owner
1 Ordinary
shares
1,578,199.00 15,730,354.61 17,308,553.61
contributed
by owners
2 Capital
contributed
by owners
of other
equity
instruments
3 Share
based
payments
-2,021,305.00 13,853,539.11 -29,732,395.14 41,564,629.25
recognized
as owner’s
equity
4 Others 532,605,631.91 -532,605,631.91
iii. Profit
-128,751,529.41 -128,751,529.41
distribution
1
Appropriati
on of
surplus
reserves
2
-128,751,529.41 -128,751,529.41
Distribution
90
C&S Paper Co., Ltd. Semi-annual Report 2022
to owners
(or
shareholders
)
3 Others
iv. Interior
balance
from
owner’s
equity
1 Added
capital (or
share
capital)
from capital
reserves
2 Added
capital (or
share
capital)
from surplus
reserves
3
Compensati
on of loss
with surplus
reserves
4 Retained
earnings of
carry-over
of the
defined
benefit plan
5 Retained
earnings of
carry-over
of other
91
C&S Paper Co., Ltd. Semi-annual Report 2022
comprehens
ive income
6 Others
v. Special
reserves
1
Appropriati
on for the
period
2 Use for
the period
vi. Others
IV. Closing
Balance of 1,311,043,971.00 861,277,099.91 599,354,148.06 61,347,923.99 490,793,238.43 2,125,108,085.27
the Period
92
C&S Paper Co., Ltd. Semi-annual Report 2022
III. Basic Information of the Company
C&S Paper Co., Ltd. (hereinafter referred to as “the Company”) is a joint stock limited company restructured from
Zhongshan Zhongshun Paper Manufacturing Co., Ltd., with all shareholders of the original company as its
initiators. The Company has obtained a business license of enterprise legal person with the registration number of
442000400013713 issued by Guangdong Province Administration for Industry and Commerce on December 31,
2008.
As of June 30, 2022, the registered capital of the company is RMB 1,313,781,913.00, share capital is RMB
1,313,781,913.00.
1. Registered address, form of organization, and headquarters of the Company
Form of organization: Company limited by shares
Registered address: No. 1 Longcheng Road, Dongsheng Town, Zhongshan City
Office address of the headquarters of the Company: No. 136 Caihong Avenue, West District, Zhongshan City
2. Business nature and main business activities of the Company
C&S Paper Co., Ltd. and its subsidiaries (hereafter generally referred to as “the Company”) are in the household
paper industry. The Company mainly engages in the following: R&D, production, processing and sales (including
online sales): high-end household paper series products, tissue boxes, sanitary products, cosmetics, non-woven
products, daily necessities (limited to daily plastic products, daily metal products, daily rubber products, and daily
ceramic products), daily chemical products (excluding hazardous chemicals), and Class I medical devices;
operation and production of Class II and Class III medical devices.
3. Actual controller of the Company
The actual controllers of the Company are Deng Yingzhong, Deng Guanbiao, and Deng Guanjie (Deng Yingzhong
is the other two’s father).
4. Approver for the issue of the financial statements and date of approval
The financial statements were approved for issue by the Board of Directors of the Company on August 29, 2022.
5. Scope of the consolidation of financial statements
As of June 30, 2022, the Company has 29 subsidiaries which are included in the consolidated scope, as detailed in
“Note IX. Equities in Other Entities”. Compared with last year, one subsidiary has been newly added into the
consolidated scope during the reporting period. For details, see “Note VIII. Changes in Consolidated Scope”.
IV. Preparation Basis for Financial Statements
1. Basis of preparation
The financial statements of the Company have been prepared on a going concern basis based on actual
93
C&S Paper Co., Ltd. Semi-annual Report 2022
transactions and events and according to the Accounting Standards for Business Enterprises - Basic Standards
promulgated by the Ministry of Finance (MOF No. 33 Document and No. 76 Revision), the 42 accounting
standards, Guidelines for the Application of the Accounting Standards for Business Enterprises, interpretation to
the accounting standards for business enterprises and other relevant regulations that are successively promulgated
on or after February 15, 2006 (hereinafter collectively referred to as “Accounting Standards for Business
Enterprises”), and rules set out in No. 15 Preparation and Reporting Rules of Information Disclosure of Public
Offering Companies - General Rules for Financial Statements (2014 Revision) issued by China Securities
Regulatory Commission based on actual transactions and events.
In accordance with the relevant rules of Accounting Standards for Business Enterprises, the financial accounting
of the Company is based on accrual basis. Apart from some financial tools, the accounting measurement of the
financial statements is based on historical cost method. Provision for impairment of asset is set aside if it is
recognized.
2. Going concern
The Company shall be a going concern for at least 12 months following the end of the reporting period. There are
no major events that will affect the Company’s operational ability; therefore the assumption on which the
financial statements are based is reasonable.
V. Significant Accounting Policies and Accounting Estimates
Specific accounting policies and accounting estimates:
C&S Paper Co., Ltd. and all its subsidiaries have set out several specific accounting policies and accounting
estimates for transactions and events with relation to the recognition of incomes and income taxes in accordance
with the Accounting Standards for Business Enterprises and their own operational characteristics. Please refer to
“Note V (39) Revenue” for details. As for explanations of significant accounting judgments and estimates made
by the management, please refer to “Note V (44) Significant changes of accounting policies and accounting
estimates”.
1. Statement of compliance with the accounting standards for business enterprises
The financial statements of the Company conform to the requirements set out in the Accounting Standards for
Business Enterprises. The statements truthfully and completely reflect the financial status, operating results,
cash flow, and other relevant information of the Company. In addition, the financial statements of the Company
are also in accordance with disclosure requirements for financial statements and notes in No. 15 Preparation
and Reporting Rules of Information Disclosure of Public Offering Companies - General Rules for Financial
Statements of the China Securities Regulatory Commission (2014 Revision) in all material aspects.
2. Accounting period
The accounting period of the Company is divided into annual and interim periods. The interim period refers to the
reporting period shorter than a complete accounting year.The accounting year of the Company is from January 1
to December 31 of each calendar year.
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C&S Paper Co., Ltd. Semi-annual Report 2022
3. Operating cycle
The operating cycle of the Company normally refers to the periods during which the Company purchases assets
for processing and then gets cash or cash equivalents from the processed items. The Company sets 12 months as
a full operating cycle and uses the 12-month period as a standard for the liquidity of assets and liabilities.
4. Standard currency for accounting
RMB is the main currency in the main economic environments in which the Company and its domestic
subsidiaries operate. Therefore, the Company and its subsidiaries use RMB as the standard currency for
bookkeeping. The currency for accounting used in the Company’s financial statements is RMB.
5. Accounting treatment measures of business combinations involving enterprises under common control
and business combinations involving enterprises not under common control
Business combinations refer to the combination of two or more independent enterprises to form a reporting
entity of transactions or events. Business combination can be classified as business combinations involving
enterprises under common control and business combinations involving enterprises not under common control.
(1) Business combinations involving enterprises under common control
Business combinations under common control means enterprises involved in the business combination are
under ultimate control by one party or the same multi-parties before and after combination, and such control is
not temporary. For business combinations under common control, those who obtain control of enterprises
involved in the business combination on the combination date are the acquirer while other enterprises involved
in the business combination are the acquiree. Combination date is the date that the combining party actually
obtains control of the combined party.
Assets and liabilities that the acquirer gets from the acquiree are calculated and measured at the book values on
the combination date. If there are differences between the book values of the net assets the acquirer receives and
the book values of the combination consideration it pays (or the face values of the issued shares), the differences
will be used to adjust capital reserves (share premium). Where capital reserves (share premium) are insufficient
to offset, retained earnings shall be adjusted.
All direct expenses related to the business combinations paid by the acquirer shall be included in current profits
and losses upon occurrence.
(2) Business combinations involving enterprises not under common control
Business combinations not under common control means enterprises involved in the business combination are
not under ultimate control by one party or the same multi-parties before and after combination. For business
combinations not under common control, those who obtain control of enterprises involved in the business
combination on the acquisition date are the acquirer, while other enterprises involved in the business
combination are the acquiree. Acquisition date is the date that the acquirer actually obtains control of the
acquiree.
For business combinations not under common control, the costs of combination include the assets the acquirer
pays, liabilities the acquirer bears, and the fair value of the equity securities issued on the date of combination
for the acquisition of control over the acquiree. The costs of auditing, legal services, evaluation consulting,
other intermediary expenses and other management fees incurred for business combination shall be included in
current profits and losses. The transaction costs of the equity securities and debt securities issued by the acquirer
95
C&S Paper Co., Ltd. Semi-annual Report 2022
shall be included in the initially confirmed amounts of equity securities and debt securities. The contingent
consideration involved shall be included in the costs of business combination based on its fair value at the
acquisition date. If, within 12 months after the acquisition, there is new or further evidence for conditions that
have already existed on the acquisition date and the contingent consideration shall be re-adjusted, the
combination goodwill shall be adjusted accordingly. The acquirer’s costs of business combinations and its
identifiable net assets obtained from business combinations shall be assessed at the fair values on the acquisition
date. If the costs of business combinations are higher than the identifiable net assets of the acquiree on the
acquisition date, the gap between them shall be confirmed as goodwill. If the costs of business combinations are
lower than the fair values of the identifiable net assets of the acquiree on the acquisition date, the fair values of
identifiable assets, liabilities and continent liabilities as well as the measurement of combination costs shall be
reassessed; if, upon reassessment, the business combination costs are still lower than the fair values of the
identifiable net assets of the acquiree, the difference shall be included in profits and losses of the current period.
If the deductible temporary differences the acquirer gets from the acquiree are not eligible to be confirmed as
deferred tax asset on the acquisition date, and within 12 months of the acquisition, there are new or further
evidence for the conditions that have already existed on the acquisition date that the economic profits brought
by the deductible temporary differences of the acquiree could be achieved, such differences shall be confirmed
as deferred tax asset. At the same time, the goodwill shall be reduced. Where the goodwill is insufficient to be
deducted, the gap between them shall be included in current profits and losses. Apart from the aforementioned
situations, all deductible temporary differences confirmed to be relevant to the business combination shall be
recorded in current profits and losses.
For business combinations not under common control that are achieved through multiple steps, whether they
can be regarded as package deals shall be judged in accordance with Notice No.5 of the Interpretation of
Accounting Standards for Business Enterprises of the Ministry of Finance (C.K. [2012] No.19), and the
standards of “package deals” set out in Article 51 of the Accounting Standard for Business Enterprises No. 33 –
Consolidated Financial Statements (please refer to Note V (6) “methods for preparation of consolidated
financial statements” (2)). In the event that the combination is regarded as “package deals”, accounting
treatment shall be done by referring to the descriptions in previous paragraphs of this section and “Note V (22)
Long-term equity investments” herein; if not, accounting treatment shall be done by distinguishing individual
financial statements from consolidated financial statements:
In individual financial statements, the initial investment costs shall be the sum of the book value of the equity
investment of the acquiree held before the acquisition date and the new investment costs on the acquisition date;
if other comprehensive income is involved in the equities of the acquiree before the acquisition date, accounting
processing shall be done for the comprehensive income related to this investment by adopting the same basis for
directly disposing of relevant assets or liabilities of the acquiree during the disposal of this investment (that is,
except for the corresponding shares of the changes caused by re-measurement of the net liabilities or net assets
of the defined benefit plan by the acquiree, which are accounted by the equity method, others shall be
transferred to the return on investment of the current period).
In consolidated financial statements, the equities of the acquiree held before the acquisition date shall be re-
measured at the fair value of the equities on the acquisition date, and the difference between the fair value and
the book value shall be recognized as the return on investment of the current period; if other comprehensive
income is involved in the equities of the acquiree before the acquisition date, accounting processing shall be
done for the comprehensive income related to this investment by adopting the same basis for directly disposing
of relevant assets or liabilities of the acquiree .
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6. Methods for preparation of consolidated financial statements
(1) Principles of determining the scope of consolidated financial statements
The scope of consolidation of consolidated financial statements shall be subject to the basis of control. Control
refers to the power the investor owns against the investee, which allows the investor to enjoy the variable return
by attending relevant activities held by the investee, and to be capable of using such power to affect the amount
of return. The scope of consolidation is the Company and all of its subsidiaries. Subsidiaries refer to entities
controlled by the Company.
The Company shall reassess whether it controls an investee if facts and circumstances indicate that there are
changes to the relevant elements of control as defined above.
(2) Methods for preparation of consolidated financial statements
The Company shall include the subsidiaries in the scope of consolidation from the date it acquires the actual
control over the net assets and the decision-making of production and operations of such subsidiaries;
accordingly, the Company shall terminate including them in the scope of consolidation from the date it loses the
actual control. In terms of subsidiaries already disposed of, the operating results and cash flows before the
disposal date have been included in the consolidated income statements and the consolidated cash flow
statements appropriately; as for subsidiaries disposed in the current period, the opening balance in the
consolidated balance sheet shall not be adjusted. In case of subsidiaries added through business combinations
not under the same control, the operating results and cash flows after the acquisition date have been included in
the consolidated income statements and the consolidated cash flow statements appropriately, and the opening
and comparative balance in the consolidated balance sheet shall not be adjusted. In case of subsidiaries added
through business combinations under the same control, the operating results and cash flows of the combined
party from the beginning of the period in which the combination happens to the combination date have been
included in the consolidated income statements and the consolidated cash flow statements appropriately, and the
comparative balance in the consolidated balance sheet shall be adjusted simultaneously.
In case of inconsistencies in the accounting policies or periods between subsidiaries and the Company during
preparation of consolidated financial statements, financial statements of subsidiaries shall be adjusted according
to the accounting policies and periods adopted by the Company. For subsidiaries acquired by business
combinations not under the same control, their financial statements shall be adjusted based on the fair value of
the identifiable net assets on the acquisition date.
All major business transaction balance, transactions, and unrealized profit of the Company shall be offset during
preparation of consolidated financial statements.
Shareholders’ equities of subsidiaries and the part of the net profit and loss of the current period not attributable
to the Company shall be presented separately under the shareholders’ equities and the net profit in the
consolidated financial statements as equities of minority shareholders and minority shareholders’ profits and
losses. Shares of equities of minority shareholders in the net profit and loss of the current period of subsidiaries
shall be presented under the “minority shareholders’ profits and losses” in the consolidated income statement. If
the loss of a subsidiary which is shared by its minority shareholders exceeds the minority shareholders’ share in
the opening balance of the subsidiary, the minority interest shall be reduced.
If the Parent Company loses control of a subsidiary due to partial disposal of equity investment or other reasons,
it shall re-measure the remaining equity at fair value on the date of loss of control. The sum of consideration
obtained from equity disposal and fair value of the remaining equity, minus the difference between the Parent
Company’s share of the subsidiary’s net assets that is continuously calculated from the acquisition date, shall be
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recognized as investment income for the reporting period when the loss of control takes place. Accounting
processing shall be done for the other comprehensive income related to this investment in the subsidiary’s
equities by adopting the same basis for directly disposing of relevant assets or liabilities of the acquiree during
the loss of control (that is, except for the changes caused by re-measurement of the net liabilities or net assets of
the defined benefit plan by the previous subsidiary, others shall be transferred to the return on investment of the
current period). After that, subsequent measurement shall be done for the remaining equity of this part as per
relevant provisions in the Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investment
or the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments. See “Note V (22) Long-term equity investments” or “Note V (10) Financial instruments” for
details.
If the Company disposes of investments in a subsidiary’s equities by steps via transactions until it loses control,
it shall check whether these transactions from disposal of the investments in the subsidiary’s equities to the loss
of control are package deals. If the terms, conditions, and economic effects of transactions on disposing of
equity investment in the subsidiary conform to one or more of the following circumstances, that means these
multiple transactions should be treated as package deals in accounting processing: 1) Those transactions are
reached at the same time or after taking into consideration the influence of each other; 2) those transactions
together produce a complete commercial outcome; 3) the occurrence of one transaction depends on the
occurrence of at least one other transaction; 4) one transaction alone does not seem to be economical, but all
those transactions are economical when are considered as a whole. If those transactions are package deals, each
transaction shall be treated as a transaction that results in loss of control of the subsidiary in accounting
processing. However, the difference between each disposal price before loss of control and the Parent
Company’s share of the subsidiary’s net assets corresponding to the disposal investment shall be recognized as
other comprehensive income in the consolidated financial statements and, upon loss of control, transferred to
the profit and loss of the current reporting period.
7. Classification of joint operation arrangements and accounting treatment methods for joint operations
None.
8. Criteria for recognition of cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits that can be used for payment at any time, and short-term
(due within three months from the acquisition date) investment held by the Company with high liquidity, easy to
convert to cash in a known amount, and small risk of value changes.
9. Translation of transactions and financial statements denominated in foreign currencies
(1) Methods for translation of transactions denominated in foreign currencies
At the initial recognition of foreign currency transactions of the Company, foreign currency will be translated into the
amount of standard currency for accounting at the spot exchange rate or its approximate exchange rate on the
transaction date. However, the business of exchange of foreign currencies or transactions related to the exchange of
foreign currencies, foreign currency will be translated into the amount of standard currency for accounting at the
exchange rate actually adopted.
(2) Methods for translation of monetary and non-monetary items in foreign currencies
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On the balance sheet date, the foreign currency monetary items are translated at the spot exchange rate on that
date. Exchange difference resulting from the difference between the spot exchange rate on the balance sheet date
and that at the initial recognition or on the previous balance sheet date shall be recognized as the profit and loss of
the current period.
Non-monetary items that are measured at historical cost in foreign currencies shall still be converted at the spot
exchange rate on the transaction date with the amount of standard currency for accounting unchanged. Non-
monetary items that are measured at fair value in foreign currencies are translated using the foreign exchange rate
at the date the fair value is recognized. The difference between the amount of standard currency for accounting
after translation and the original amount of the standard currency for accounting shall be treated as a change in
fair value (including the change in the exchange rate) and recognized as the profit and loss of the current period or
other comprehensive income.
(3) Methods for translation of foreign-currency financial statements
Foreign-currency financial statements of overseas operations shall be translated into RMB financial statements by the
following methods: The assets and liabilities in the balance sheet shall be converted at the spot exchange rate on the
balance sheet date; except “undistributed profits”, all the other owner’s equity items are converted at the spot exchange
rate at the time of occurrence. Income and expense items in the income statement shall be translated using the foreign
exchange rates ruling at the dates of the transactions. The undistributed profit at the beginning of the year is the
undistributed profit at the end of the year after the conversion of the previous year; The undistributed profits at the end
of the period are calculated and listed according to the profit distribution items after conversion; The difference between
the total amount of assets, liabilities and shareholders' equity after translation is recognized as other comprehensive
income as the translation difference of foreign currency statements.Translation of comparative financial statements shall
be subject to the above provisions.
10. Financial instruments
When the Company becomes a party to a financial instrument contract, the financial instrument is confirmed to be
either financial assets or financial liabilities.
(1) Classification, recognition, and measurement of financial assets
According to the business model of managing financial assets and the contractual cash flow characteristics of
financial assets, the Company classified financial assets into the following categories: financial assets measured at
the amortized cost, financial assets measured at fair value through other comprehensive income and financial
assets measured at fair value through profit and loss of the current period.
Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair value
through profit and loss of the current period, transaction costs are directly included in profit and loss of the current
period. For other types of financial assets, related transaction costs are included in their initial recognized
amounts. In terms of the accounts receivable or notes receivable arising from selling products or providing labor
service without or not considering major financing component, the Company shall regard the expected
consideration amount that it has rights to charge as the initial recognition amount.
1) Financial assets measured at amortized cost
For the business model where the Company manages the financial assets carried at amortized cost, the Company
aims to charge the contract cash flows, and the characteristics of the contract cash flows of this kind of financial
assets are consistent with the basic lending arrangements. That is, cash flows generated on specified dates are
solely payments of principal and interest on the principal amount outstanding. This kind of financial assets are
subsequently measured at amortized cost using the effective interest method. Gain or loss arising from
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amortization or impairment is recognized in profit and loss of the current period.
2) Financial assets measured at fair value through other comprehensive income
The business model for the Company to manage this type of financial assets aims at both obtaining the contract
cash flows and selling the financial assets, and the characteristics of the contract cash flows of this kind of
financial assets are consistent with the basic lending arrangements. The Company measures this kind of financial
assets at fair value through other comprehensive income, but recognizes the impairment losses or gains, exchange
profit and loss, and interest income calculated by the effective interest method as the profit and loss of the current
period.
Additionally, the Company designates some non-tradable equity instruments as financial assets at fair value
through other comprehensive income. The Company recognizes relevant dividend income from such financial
assets as the profit and loss of the current period, and changes in fair value as other comprehensive income. When
such financial assets are derecognized, the accumulated gains or losses previously recognized as other
comprehensive income shall be transferred from other comprehensive income to retained earnings and not
recognized as the profit and loss of the current period.
3) Financial assets measured at fair value through profit and loss of the current period
All financial assets other than the other two preceding types are classified as financial assets measured at fair
value through profit and loss of the current period. Moreover, at initial recognition, to eliminate or significantly
reduce accounting mismatches, the Company may designate some financial assets as financial assets measured at
fair value through profit and loss of the current period. Such financial assets shall be measured at fair value, and
changes in fair value are recognized as the profit and loss of the current period.
(2) Classification, recognition, and measurement of financial liabilities
At initial recognition, financial liabilities are classified into financial liabilities measured at fair value through
profit or loss and other financial liabilities. For financial liabilities at fair value through profit and loss of the
current period, transaction costs are directly included in profit and loss of the current period. For other types of
financial liabilities, related transaction costs are included in their initial recognized amounts.
1) Financial liabilities measured at fair value through profit and loss of the current period
Financial liabilities measured at fair value through profit and loss of the current period include tradable financial
liabilities (including derivatives belonging to financial liabilities) and financial liabilities designated to be
measured at fair value through profit and loss of the current period at initial recognition.
Tradable financial liabilities (including derivatives that are financial liabilities) are subsequently measured at fair
value, and changes in fair value -- except for those related to hedging accounting -- are recognized as profit and
loss of the current period.
For those that are designated as financial liabilities measured at fair value through profit or loss, the changes in
fair value resulting from changes in the credit risk of the Company shall be recognized as other comprehensive
income; besides, when such liabilities are derecognized, the amount of accumulative changes in fair value
resulting from credit risk changes that are recognized as other comprehensive income shall be transferred to
retained earnings. Other changes in fair value shall be recognized as the profit and loss of the current period. If the
treatment of the credit risk changes in such financial liabilities by the above methods will result in expansion of
the accounting mismatch in the profit and loss, the Company shall recognize all gains or losses in such financial
liabilities (including the amount subject to the credit risk changes of the Company) as the profit and loss of the
current period.
2) Other financial liabilities
Except for financial liabilities resulting from financial asset transfers not meeting the conditions for derecognition
or the continuous involvement in the transferred financial asset, or financial guarantee contracts, other financial
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liabilities shall be classified into the financial liabilities measured at amortized cost, which shall be subsequently
measured at amortized cost, and the gains or losses resulting from derecognition or amortization shall be
recognized as the profit and loss of the current period.
(3) Recognition basis and measurement method of financial asset transfer
Once one of the following conditions is met, the financial assets shall be derecognized: 1) The contract right to
charge the cash flows of the financial assets is terminated; 2) the financial assets have been transferred, and almost
all the risks and rewards of the ownership of the financial assets are transferred to the transferee; 3) the financial
assets have been transferred, and the Company has given up the control over the financial assets although it does
not transfer or retain almost all the risks and rewards of the ownership of the financial assets.
If the Company has neither transferred nor retained almost all the risks and rewards of the ownership of the
financial assets, and the Company does not waive its control of the financial assets, it shall recognize the relevant
financial assets within the extent of its continuous involvement in the transferred financial assets and recognize
the relevant liabilities. The continuous involvement in the transferred financial assets refers to the level of risk
with which the Company is faced due to changes in the financial asset values.
When overall transfer of financial assets meets the conditions for derecognization, the book value of the
transferred financial assets and the difference between the consideration received due to transfer and the
accumulative changes in fair value that is originally recognized as other comprehensive income shall be
recognized as the profit and loss of the current period.
When partial transfer of financial assets meets the conditions for derecognization, the book value of the
transferred financial assets shall be apportioned to the fair value between the derecognized part and the recognized
part, and the consideration received due to transfer and the difference between the accumulative changes in fair
value that is originally recognized as other comprehensive income, which shall be apportioned to the derecognized
part, and the apportioned book value as mentioned above shall be recognized as the profit and loss of the current
period.
When the Company sells financial assets with additional recourse or transfers the endorsed financial assets held, it
shall check whether almost all the risks and rewards of the ownership of the financial assets are transferred. If the
Company has transferred almost all the risks and rewards of the ownership of the financial assets to the transferee,
it shall derecognize the financial assets; if the Company retains almost all the risks and rewards of the ownership
of the financial assets, it shall not derecognize the financial assets; if the Company neither transfers nor retains
almost all the risks and rewards of the ownership of the financial assets, it shall judge whether it has retained
control over the assets and conduct accounting processing following the principles described in previous
paragraphs.
(4) Derecognition of financial liabilities
If current obligations of the financial liabilities (or some of the liabilities) have been released, the Company shall
derecognize the financial liabilities (or some of the liabilities). Where the Company (borrower) and a lender sign
an agreement to replace the existing financial liability by way of assumption of new financial liability with the
terms of the new financial liability substantially different from those of the existing financial liability, it
derecognizes the existing financial liability while recognizing the new financial liability. If the contract terms of
the existing financial liability are materially changed in whole (or in part), the existing financial liability will be
derecognized, and the financial liability after changes of terms will be recognized as a new financial liability.
If a financial liability is derecognized in whole (or in part), the difference between the book value of the
derecognized portion and the consideration paid (including the non-cash assets transferred out or the new financial
liability assumed) is recognized as the profit and loss of the current period.
(5) Offsetting financial assets and financial liabilities
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When the Company has the statutory right to offset the recognized amount of financial assets and financial
liabilities, and this statutory right is currently enforceable, and the Company plans to net the financial assets or
simultaneously realize the financial assets and pay off the financial liabilities, the financial assets and financial
liabilities are presented in the balance sheet at the net amount after offsetting each other. Otherwise, financial
assets and financial liabilities are presented separately in the balance sheet and are not offset against each other.
(6) Methods for determining the fair value of financial assets and financial liabilities
The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. If there are active markets for a financial
instrument, the Company establishes its fair value by using quotes in the active markets. Quotes in active markets
refer to prices that are readily available on a regular basis from exchanges, brokers, trade associations, pricing
service institutions, etc., and represent the prices of market transactions that actually occur in a fair trade. If there
is no active market, the Company establishes fair value by using valuation techniques.
Valuation techniques include reference to price used in recent market transactions between knowledgeable, willing
parties, reference to the current fair value of other financial instruments that are substantially the same, discounted
cash flow analysis, option pricing models, etc. During valuation, the Company adopts the valuation techniques
that are applicable under current circumstances and supported by sufficient available data and other information,
selects the input values that are consistent with the characteristics of the assets or liabilities considered by the
market participants in the transaction of the relevant assets or liabilities, and preferentially uses the relevant
observable inputs. Unobservable input values are used where the relevant observable input values are not
available or are not practicable.
(7) Equity instruments
An equity instrument refers to a contract that can prove the Company owns the remaining equity in the assets after
deducting all liabilities. The Company’s issuance (including refinancing), repurchase, sales or cancellation of
equity instruments are treated as changes in equities, and transaction costs related to equity transactions are
deducted from equities. The Company does not recognize changes in the fair value of equity instruments.
The distribution of dividends by equity instruments (including “interests” generated by instruments that are
classified as equity instruments) during their period existence shall be treated as profit distribution.
(8) Impairment of financial assets
The financial assets for which the Company needs to recognize impairment losses are financial assets measured at
amortized cost, debt instrument investments measured at fair value through other comprehensive income, and
lease receivables, mainly including notes receivable, accounts receivable, and other receivables. In addition, for
some contract assets and financial guarantee contracts, impairment reserves are set aside and credit impairment
losses are recognized as per the accounting policies described in this section.
1) Methods for recognizing impairment reserves
Based on the expected credit loss, the Company sets aside provisions for impairment of the above items by
methods (general method or simplified method) for measuring expected credit loss applicable to them and
recognizes credit impairment loss.
Credit loss refers to the difference between all contract cash flow receivables discounted at the original effective
interest rate under the contract and all expected cash flow receivables, i.e., the present value of all cash shortages.
Specifically, for financial assets that have been credit-impaired at the time of purchase or origin, the Company
discounts the financial assets at the credit-adjusted actual interest rate.
The general method for measuring expected credit loss means that the Company assesses on each balance sheet
date whether the credit risk of financial assets has increased significantly since the initial recognition. If yes, the
Company measures loss reserves at an amount equivalent to the expected credit loss in the entire duration; if not,
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the Company measures loss reserves at an amount equivalent to the expected credit loss in the next 12 months.
The Company considers all reasonable and evidence-based information, including forward-looking information,
when assessing expected credit loss;
As for financial instruments with low credit risk on the balance sheet date, the Company measures the loss
reserves according to the expected credit loss in the future 12 months, assuming that its credit risk has had no
significant increase since its initial recognition. The Company chooses to measure loss reserves according to the
expected credit loss in the next 12 months or in the entire duration based on whether the credit risk has increased
significantly since initial recognition.
2) Standards for judging whether credit risk has increased significantly since initial recognition
If the probability of default (PD) of a financial asset in the expected duration recognized on the balance sheet date
is significantly higher than that in the expected duration recognized at the time of initial recognition, the credit
risk of the financial asset has increased significantly. Except for special circumstances, the Company determines
whether credit risk has increased significantly since initial recognition by reasonably assessing the changes in the
PD in the entire duration with the changes in the coming 12 months.
3) Portfolio method for assessing expected credit risk based on portfolios
The Company assesses individual credit risk of financial assets with significantly different credit risks. Examples
include the following: receivables from related parties; receivables that have disputes with counterparties or those
involved in litigation or arbitration; there are obvious signs that the debtor is very unlikely to fulfill the repayment
obligation.
In addition to financial assets whose individual credit risk is assessed, the Company divides financial assets into
different groups based on common risk characteristics, and assesses credit risk on a portfolio basis.
4) Accounting treatment methods for impairment of financial assets
At the end of the reporting period, the Company calculates the expected credit loss of financial assets. If the
expected credit loss is greater than the book value of its current impairment provisions, the difference is
recognized as an impairment loss; if it is less than the current book value of the impairment provisions, the
difference is recognized as impairment gains.
5) Methods for recognizing credit losses of financial assets
a. Notes receivable
The Company measures loss reserves for notes receivable at an amount equivalent to expected credit loss in the
entire duration. The Company divides notes receivable into different portfolios based on their credit risk
characteristics:
Item Basis for determining the portfolio
Banker’s acceptance Acceptors are banks with low credit risks.
Trade acceptance The aging of trade acceptance is used as credit risk characteristics.
b. Accounts receivable
The Company measures loss reserves for accounts receivable without major financing component at an amount
equivalent to expected credit loss in the entire duration.
The Company measures loss reserves for accounts receivable and lease receivables with major financing
component at an amount equivalent to expected credit loss in the duration.
Except for accounts receivable whose individual credit risk is assessed, the Company divides accounts receivable
into different portfolios based on their credit risk characteristics:
Item Basis for determining the portfolio
Aging portfolio This portfolio uses aging of accounts receivable as credit risk characteristics.
Related party portfolio This portfolio comprises amounts of related parties within the consolidated scope.
c. Other receivables
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The Company adopts the amount equivalent to the expected credit loss in the coming 12 months or in the entire
duration to measure impairment losses based on whether the credit risk of other receivables has increased
significantly since initial recognition. Except for other receivables whose individual credit risk is assessed, the
Company divides other receivables into different portfolios based on their credit risk characteristics:
Item Basis for determining the portfolio
Aging portfolio This portfolio uses aging of other receivables as credit risk characteristics.
Related party portfolio This portfolio comprises amounts of related parties within the consolidated scope.
11. Notes receivable
For details, please refer to 10. Financial instruments in V. Significant Accounting Policies and Accounting
Estimates of Section X.
12. Accounts receivable
For details, please refer to 10. Financial instruments in V. Significant Accounting Policies and Accounting
Estimates of Section X.
13. Accounts receivable financing: None
14. Other receivables
Recognition methods and accounting treatment methods for expected credit loss in other receivables
For details, please refer to 10. Financial instruments in V. Significant Accounting Policies and Accounting
Estimates of Section X.
15. Inventories
(1) Classification of inventories
Inventories mainly include raw materials, goods in process, materials for consigned processing, commodity
stocks, packages, and low-value consumables.
(2) Pricing methods for inventory acquisition and delivery
Inventories are priced at actual cost when they are acquired. Inventory costs include procurement costs,
processing cost, and other costs. Inventories are priced by the weighted average method during receipt and
delivery.
(3) Methods for recognition of the net realizable value of inventories and the provisions for impairment of
inventories
The net realizable value refers to the amount of the estimated selling price of the inventory minus the estimated
cost, estimated selling expenses, and related taxes and fees at the time of completion in daily activities. When
recognizing the net realizable value of inventories based on the substantial evidence obtained, the Company also
considers the purpose of holding the inventories and the impact on matters after the balance sheet date.
On the balance sheet date, inventories are measured at the lower of costs and the net realizable value. When the
net realizable value is lower than costs, the Company sets aside provisions for inventory impairment. Provisions
for inventory impairment are set aside based on the difference between the cost of individual inventory item and
its net realizable value. For inventories with a large quantity but a low unit value, provisions for inventory
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impairment are set aside according to inventory category.
After provisions for the inventory impairment are set aside, if the influencing factors in previous write-down of
the inventory value disappear, causing the net realizable value of the inventory to be higher than its book value, it
shall be reversed within the amount of the provisions for inventory impairment that have been set aside and
recognized as the profit and loss of the current period.
(4) The perpetual inventory system is adopted for the inventories.
(5) Amortization method for low-value consumables and packages
The one-time amortization method is adopted for low-value consumables and packages upon receipt.
16. Contract assets
The Company recognizes the contract amounts where the customer has not paid the consideration but the
Company has fulfilled its contractual obligation while the claim to the amount from the customer is not
unconditional (i.e. Only dependent on the passage of time) as contract assets in the balance sheet. Contract assets
and contract liabilities under the same contract are presented on a net basis; contract assets and contract liabilities
under different contracts are not offset.
17. Contract costs
If the incremental cost incurred by the Company for obtaining a contract is expected to be recovered, the cost of
obtaining the contract is recognized as an asset. However, if the amortization period of the asset does not exceed
one year, it is included into the profit and loss of the period as it occurs.
If the contract cost does not fall within other enterprise accounting standards than the Accounting Standards for
Business Enterprises No. 14 -- Revenue and meet the following conditions at the same time, it is considered as
contract performance cost and recognized as asset: 1) the cost is directly related to an existing or expected contract
including direct labor, direct material or manufacturing overhead (or similar expenses), or the cost has been
expressly defined as borne by the customer, or the cost is incurred solely as a result of the contract; 2) the cost
increases the Company’s future resources to perform contractual obligations; and 3) the cost is expected to be
recovered.
Contract cost-related assets are amortized on the same basis of goods revenue recognition relating to the asset and
included in the profit and loss of the current period.
18. Assets held for sale
The Company classifies non-current assets or a disposal group as held for sale (including exchange of non-
monetary assets with commercial substance, the same below) if their book values are recovered principally
through disposal rather than through continuing use. Specifically, the following conditions shall be met
simultaneously: A certain non-current asset or disposal group can be sold immediately under the current
conditions according to the practice of selling such assets or disposal groups in similar transactions; the Company
has made a resolution of an offer and obtained the purchase commitment; the sale is expected to be completed
within one year. Among them, the disposal group refers to a group of assets that are disposed of as a whole
through sale or other means in a transaction, and the liabilities directly related to these assets that are transferred in
the transaction. If the asset group or the combination of asset groups to which the goodwill (obtained from
business combination) has been allocated in accordance with the Accounting Standards for Business Enterprises
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No. 8 -- Impairment of Assets, the disposal group shall include the goodwill allocated to it.
During initial measurement or re-measurement of the non-current assets and disposal groups classified into held-
for-sale assets on the balance sheet date, if the book value of such assets is higher than the net value deducting the
cost of offer, the book value is written down to the recoverable amount by the Company, the written-down amount
is recognized as profit and loss of the current period and impairment provisions are set aside at the same time. For
the disposal group, the recognized asset impairment loss is first deducted from the book value of the goodwill in
the disposal group, and then deducted in proportion from the book value of non-current assets specified in the
applicable Accounting Standards for Business Enterprises No. 42 - Non-Current Assets and Disposal Groups Held
for Sale and Discontinued Operations (hereinafter referred to as the “Standards for Assets Held for Sale”). If the
fair value of the disposal group held for sale on the subsequent balance sheet date increases after deducting the
selling expenses, the previously written down amount shall be restored, and reversed within the amount of the
asset impairment losses recognized for non-current assets as per the Standards for Assets Held for Sale applicable
after the assets are classified into those held for sale, and the reversed amount shall be recognized as the profit and
loss of the current period. Besides, the book value of the reversed amount shall be increased in proportion
according to the proportion of the book value of the non-current assets specified in the Standards for Assets Held
for Sale applicable to those except for the goodwill in the disposal group. The book value of the goodwill that has
been deducted, and the asset impairment losses recognized before the non-current assets are classified into assets
held for sale as per the Standards for Assets Held for Sale shall not be reversed.
Non-current assets held for sale and non-current assets in the disposal group are not subject to depreciation or
amortization. Interest and other expenses on liabilities in the disposal group held for sale continue to be
recognized.
When the non-current assets or disposal group no longer meets the conditions for classification into the assets held
for sale, the Company no longer classifies them into the category or removes the non-current assets from the
disposal group held for sale, and measures them at the lower of the following two: (1) in terms of the book value
before classification into assets held for sale, for which the measurement standard is the amount after adjustment
according to the depreciation, amortization, or impairment that should have been recognized under the assumption
that they are not classified into assets held for sale; and (2) the recoverable amount.
19. Investments in creditor’s rights: None
20. Other investments in creditor’s rights: None
21. Long-term receivables: None
22. Long-term equity investments
The long-term equity investments herein refer to the long-term equity investments in which the Company has
control, joint control, or significant influence on the investee. Long-term equity investments where the Company
has no control, joint control, or significant influence on the investee are accounted as financial assets measured at
fair value through profit and loss of the current period. Among them, for those that are non-tradable, the Company
may choose to designate them as the financial assets measured at fair value through other comprehensive income
for accounting during initial recognition. See “Note V (10) Financial instruments” for their detailed accounting
policies.
Joint control refers to the common control over a particular arrangement according to relevant agreement, and that
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the decisions on relevant activities under such arrangement are subject to the unanimous consent from the parties
sharing the joint control. Significant influence means having the power to participate in the financial and
operating policy decision-making of the investee, but cannot control or, together with other parties, jointly control
the formulation of these policies.
(1) Determination of investment cost
For long-term equity investments obtained from combination of enterprises under common control, the share of
the combined party’s owner’s equity in the book value of the consolidated financial statements of the final
controlling party which is acquired on the combination date shall be regarded as the initial investment cost for
long-term equity investments. The capital reserves shall be adjusted if there is difference between the initial
investment cost of long-term equity investment and the cash paid, the transferred non-cash assets, and the book
value of the debts assumed; if the capital reserve is insufficient to offset, the retained earnings shall be adjusted. If
the equity securities issued are used as the combination consideration, the share of the combined party’s owner’s
equity in the book value of the consolidated financial statements of the final controlling party which is acquired on
the combination date shall be regarded as the initial investment cost for long-term equity investments; the total
book value of the shares issued shall be the share capital; the capital reserves shall be adjusted if there is
difference between the initial investment cost of long-term equity investments and the total book value of the
shares issued; if the capital reserves are insufficient to balance the difference, retained earnings shall be adjusted.
For long-term equity investments obtained from combination of enterprises under different control, the
combination costs on the acquisition date shall be used as the initial investment costs of the long-term equity
investment; the combination costs include the sum of the assets paid by the acquirer, the liabilities incurred or
assumed, and the fair value of the equity securities issued.
Intermediary expenses such as auditing, legal services, assessment and consulting and other related management
expenses incurred by the combining party or acquirer for the business combination shall be recognized as the
profit and loss of the current period.
Other equity investments except for long-term equity investments formed via business combination are initially
measured at cost. Subject to the way the long-term equity investments are obtained, the costs shall be recognized
based on the cash actually paid by the Company for acquisition, the fair value of the equity securities issued by
the Company, the value agreed in the investment contract or agreement, the fair value or original book value of
the assets swapped out in a non-monetary asset exchange transaction, and the fair value of the long-term equity
investment itself. Expenses, taxes, and other necessary expenditures directly related to acquisition of long-term
equity investments are also recognized as investment costs.
(2) Subsequent measurement and recognition of profit and loss
If the Company has common control or significant influence over the investee (except for constituting co-
proprietors), the long-term equity investment shall be accounted for by using the equity method. Additionally, the
Company’s financial statements apply the cost method for long-term equity investments that can make control in
the investee
1) Long-term equity investments accounted for using the cost method
When the cost method is used, the long-term equity investments are calculated according to the initial investment
cost. In the event that the investment is added or recovered, the cost of the long-term equity investments shall be
adjusted. With the exception of the price actually paid at the acquisition of investment or cash dividends or profits
included in consideration, declared but not issued yet, the return on investment of the current period shall be
recognized according to the cash dividends or profits declared to be issued by the investee.
2) Long-term equity investments accounted for using the equity method
When using equity method, if the initial investment cost of long-term equity investments is greater than the fair
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value share of the identifiable net assets entitled of the investee at the time of investment, the initial investment of
the long-term equity investments shall not be adjusted. If the initial investment cost of long-term equity
investments is lower than the fair value share of the identifiable net assets entitled of the investee at the time of
investment, the difference shall be recognized as profit and loss of the current period and the cost of the long-term
equity investments shall be adjusted at the same time.
When the equity method is used, return on investment and other comprehensive income shall be respectively
determined based on the share of net profit or loss and other comprehensive income realized by the investee that
shall be attributable or assumed, and the book value of long-term equity investments shall be adjusted at the same
time. Attributable share shall be calculated based on the profit or cash dividends declared by the investee and the
book value of long-term equity investments shall be accordingly decreased. In respect to other changes of owner’s
equity of the investee in addition to net profit or loss, other comprehensive income and profit distribution, the
book value of long-term equity investments shall be adjusted and recognized as capital surplus. When confirming
the share of the investee’s net profit and loss, the Company shall confirm the investee’s net profit after adjustment
based on the fair value of the identifiable net assets of the investee at the acquisition of the investment. Where the
accounting policy and accounting period adopted by the investee differs from those of the Company, the
investee’s financial statements shall be adjusted according to the Company’s accounting policy and accounting
period, and the return on investment and other comprehensive income shall be recognized accordingly. Where the
transactions are between the Company and the associates and joint ventures, and the assets that are invested or
sold do not constitute business, unrealized internal transaction profits and losses incurred between the Company
and the associates and joint ventures shall be offset with the part attributable to the Company which is calculated
on a due pro-rata basis, and the return on investment shall be recognized on this basis. However, unrealized
internal transaction losses incurred between the Company and the investees shall not be offset if they fall under
the impairment losses on assets transferred.
When confirming the limit of net loss incurred by the investee, the limit is the extent that the book value of the
long-term equity investments and other long-term equity that substantially constitutes a net investment in the
investment target is written down to zero. Additionally, if the Company has obligations to assume additional
losses of the investee, provisions are recognized according to the expected obligation, and recognized as
investment losses for the period. Where the investee records net profit in the future, the Company resumes and
recognizes the profit-sharing amount after such amount makes up the unrecognized loss-sharing amount.
23. Investment property
Measurement model for investment property
Measurement by the cost method
Depreciation or amortization method
Investment properties are real estate held to generate rental income or earn capital gains or both. Investment
properties include land use rights leased out, land use rights held for transfer after appreciation, buildings leased
out, etc.
Investment property is initially measured at cost. Subsequent costs are included in the investment property’s cost
only when it is probable that future economic benefits associated with the item will flow to the Company and the
cost of the item can be measured reliably. Other subsequent costs are recognized as profit and loss of the current
period when incurred.
The Company adopts the cost model for subsequent measurement of investment property, and depreciates or
amortizes it according to policies consistent with those for buildings or land use rights.
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Impairment test method and impairment provision method for investment property are detailed in “Note V (31)
Long-term asset impairment”.
Investment properties are derecognized when they are disposed of or permanently withdrawn from use and it is
expected that no economic benefit can be generated from its disposal. The income from selling, transferring,
writing off or destroying investment property, less its book value and relevant taxes and fees, is recognized as
profit and loss of the current period.
24. Fixed assets
(1) Recognition conditions
Fixed assets are tangible assets with a useful life of more than one accounting year that are held for production or
supply of goods or labor services, for rental to third parties, or for use in the organizations. Fixed assets shall only
be recognized when relevant economic interest may flow into the Company and costs thereof can be reliably
measured. Fixed assets shall be initially measured at cost and by taking into account the impact of estimated
disposal expense.
(2) Depreciation method
Type Depreciation method Depreciation life Residual value rate Annual depreciation rate
3.00%, 3.17% to 9.00%,
Properties and buildings Straight-line depreciation 10 to 30 years 5%. 10%
9.50%
4.50%, 4.75% to 45.00%,
Equipment Straight-line depreciation 2 to 20 years 5%. 10%
47.50%
6.43%, 6.79% to 18.00%,
Motor vehicles Straight-line depreciation 5 to 14 years 5%. 10%
19.00%
11.25%, 11.88% to
Office equipment Straight-line depreciation 3 to 8 years 5%. 10%
30.00%, 31.67%
18.00%, 19.00% to
Production equipment Straight-line depreciation 2 to 5 years 5%. 10%
45.00%, 47.50%
Estimated residual value refers to the current amount where, supposed the service life of a fixed asset has expired
and it is in the expected status of such expiration, the Company obtains from the disposal of such asset after the
estimated disposal expense is deducted.
(3) Determination basis, pricing method and depreciation method of fixed assets acquired under finance
leases：Not applicable
25. Construction work in process
Construction work in progress is measured at actual project expenditure, comprising project expenditure incurred
during construction and other necessary cost incurred.
The Company’s Construction work in progress is transferred to fixed assets when the assets are ready for their
intended use. If the fixed assets under construction have reached the expected usable status but have not yet
completed the final account for completed project, they shall be recognized as fixed assets according to the
estimated value, and accrue depreciation. After the completion of the final account for completed project, the
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original estimated value is adjusted according to the actual cost, but the original accrued depreciation amount is
not adjusted.
Impairment test method and impairment provision method for Construction work in progress are detailed in “Note
V (31) Long-term asset impairment”.
26. Borrowing costs
Borrowing costs include interest on borrowings, amortizations of discounts or premiums, incidental expenses,
exchange difference resulting from foreign-currency borrowings, etc. The borrowing costs that can be directly
attributable to the acquisition, construction or production of an asset eligible for capitalization shall be capitalized
if the capital expenditures have been incurred, the borrowing costs have been incurred, or the necessary purchase,
construction or production activities to make the asset reach the expected available or marketable state have
begun. When the assets with the purchase, construction or production meeting the capitalization conditions reach
the expected available or marketable state, they cease to be capitalized. Any other borrowing costs are recognized
as an expense in the period when they are incurred.
The amount of interest that shall be capitalized is determined based on the interest expenses incurred in the period
when a specifically borrowed fund is obtained less any income earned on the unused borrowing fund as a deposit
in a bank or as a temporary investment. Where funds are borrowed for a general purpose, the amount of interest
that shall be capitalized is determined by multiplying the part of the accumulative asset disbursements in excess of
the weighted average asset disbursement for the specifically borrowed fund by the capitalization rate of the
general borrowing used. The capitalization rate is the weighted average interest rates applicable to the general-
purpose borrowings.
During the capitalization, all exchange differences arising from earmarked foreign-currency borrowings shall be
capitalized; exchange differences arising from general-purpose foreign-currency borrowings shall be recognized
as profit and loss of the current period.
Assets eligible for capitalization refer to assets such as fixed assets, investment real estates and inventories that
can reach the expected available or marketable status after a long period of purchase, construction or production
activities.
If the acquisition, construction or production of an asset eligible for capitalization is continuously suspended for
over three months for abnormal reasons, capitalization of the borrowing costs shall be suspended, until the
acquisition, construction or production of the asset is resumed.
27. Biological assets: None
28. Oil & gas assets: None
29. Right-of-use assets
Impairment test method and impairment provision method for right-of-use assets are detailed in "Note V (42)
Leases".
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30. Intangible assets
(1) Pricing method, service life, and impairment test
Intangible assets refer to identifiable non-monetary assets without physical substance owned or controlled by the
Company.
Intangible assets are initially measured at cost. Costs of intangible assets are included in intangible assets’ book
value, only when it is probable that future economic benefits associated with the item will flow to the Company
and the cost of the item can be measured reliably. Other costs of intangible assets are recognized as profit and loss
of the current period when incurred.
Land use rights acquired are generally accounted for as intangible assets. With respect to self-built buildings
including plants, the relevant land use right expenses and buildings’ construction costs are accounted for as
intangible assets and fixed assets, respectively. For purchased houses and buildings, the price paid is distributed
between the land use right and the building. If it is difficult to distribute, it shall all be included in fixed assets.
From the beginning of use of intangible assets with finite service life, the accumulated amount of the original
value less estimated net residual value and the provisions for asset impairment set aside shall be amortized evenly
in stages by straight-line method over their service life. Intangible assets with uncertain service lives are not
amortized.
The Company reviews the service life and amortization method of intangible asset with finite service life at the
end of the reporting period, and a change therein (if any) shall be accounted for as a change in accounting
estimates. Additionally, the Company reviews the service life and amortization method of intangible asset with
uncertain service life. If there is evidence that the period when it brings economic benefits to the enterprise is
foreseeable, its service life shall be estimated and it is amortized according to the amortization policy for
intangible assets with finite service life.
Impairment test method and impairment provision method for intangible assets are detailed in “Note V (31)”.
(2) Accounting policy for expenditure on internal research and development
The Company classifies the expenditure on an internal research and development project into expenditure on the
research phase and expenditure on the development phase.
Expenditure on the research phase is recognized as profit and loss of the current period when incurred.
Expenditure on the development phase is recognized as intangible asset when all the following criteria are met,
while expenditure in the development phase that does not meet the following criteria is recognized as profit and
loss of the current period when incurred:
1) technically feasible to complete the intangible asset so that it will be available for use or sale;
2) the intention to complete the intangible asset and use or sell it;
3) how the intangible asset will generate probable future economic benefits. Among other things, the Company
can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it
is to be used internally, the usefulness of the intangible asset;
4) the availability of adequate technical, financial and other resources to complete the development and the ability
to use or sell the intangible asset;
5) the ability to measure reliably the expenditure attributable to the intangible asset during the development.
Where the expenditure on research and development incurred cannot be classified into the expenditure on research
phase or the expenditure on development phase, it shall be recognized as profit and loss of the current period
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when incurred.
31. Long-term asset impairment
The Company determines on the balance sheet date whether there is any indication that the non-current and non-
financial assets may have been impaired, including fixed assets, construction work in progress, intangible assets
with limited service life, and investment properties measured using the cost model, and long-term equity
investments in subsidiaries, joint ventures and associates. If there is any indication that the asset is likely to be
impaired, the Company will estimate the recoverable amount and carry out the impairment test. Impairment tests
shall be conducted each year for goodwill and intangible assets with uncertain service life and not yet in use,
whether or not there is any indication of impairment.
If an impairment test shows that the recoverable amount of an asset is lower than its book value, the difference is
recognized as a provision for impairment and recognized as the impairment loss. The recoverable amount is
determined based on the higher of the net amount of the fair value of the asset minus the disposal expenses and
the present value of the expected future cash flow of the asset. The fair value of asset is determined according to
the price of the sales agreement in fair trade. If there is no sales agreement but an active market for the asset, the
fair value is determined according to the price offered by the buyer for the asset. If there is neither sales agreement
nor active market for the asset, the fair value of the asset shall be estimated based on the best information
available. The disposal costs include legal fees, relevant taxes and fees, as well as handling fees related to the
disposal of asset, and the direct costs incurred to ensure the asset reaches the marketable state. The present value
of the expected future cash flow of an asset shall be determined by the discounted cash at an appropriate discount
rate, on the basis of the expected future cash flow generated during the continuous use or final disposal of an
asset. Provisions for asset impairment are calculated and recognized on an individual basis. If it is difficult to
estimate the recoverable amount of individual assets, the Company will determine the recoverable amount of the
asset group on the basis of the asset group to which the asset belongs. Asset group refers to the smallest asset
portfolio which can independently generate cash inflows.
When an impairment test is performed on the goodwill separately listed in the financial statement, book value of
such goodwill is apportioned to the asset group or combination of asset groups that can benefit from the synergy
effect of business combination. If the test result shows that the recoverable amount of the asset group or
combination of asset groups is lower than their book value, corresponding impairment losses on goodwill will be
recognized. The impairment loss shall first offset against the book value of goodwill that is apportioned to asset
group or a combination of asset groups, and then offset against the book value of assets excluding goodwill in the
asset group or the combination of asset groups on a pro-rata basis according to the proportion of their book value.
Once the aforementioned asset impairment loss is recognized, it will not be reversed in subsequent accounting
periods even if the value can be recovered.
32. Long-term unamortized expenses
Long-term unamortized expenses are expenses which have been incurred but shall be amortized over a period
longer than one year, including the reporting period and the future periods. Long-term unamortized expenses of
the Company mainly include office building decoration costs, sewage use rights and electricity use rights. Long-
term unamortized expenses shall be amortized based on the straight-line method over the expected benefit period.
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33. Contract liabilities
A contract liability is the Company’s obligation to transfer goods to a customer for which the Company has
received consideration from the customer. If the customer has paid contract consideration or the Company has
obtained the unconditional right of collection before the Company transfer goods to the customer, the amount
received or the receivable is recognized as contract liability at the earlier of the time when the customer actual
pays the amount and when the amount becomes due. Contract assets and contract liabilities under the same
contract are presented on a net basis; contract assets and contract liabilities under different contracts are not offset.
34. Employee remuneration
(1) Accounting treatment method for short-term remuneration
Short-term remuneration includes salaries, bonuses, allowances and subsidies, employee welfare, medical
insurance fees, maternity insurance fees, employment injury insurance fees, housing provident funds, labor union
fees, staff education funds, and non-monetary welfare. The Company shall, within the accounting period when its
employees provide service, recognize actual short-term remuneration as liabilities which shall be recognized as
profit and loss of the current period or relevant asset costs. Wherein, non-monetary benefits are measured at fair
value.
(2) Accounting treatment method for post-employment benefits
Post-employment benefit includes basic endowment insurance, unemployment insurance, etc. It also includes
defined contribution plans. Where defined contribution plans are adopted, the corresponding amount payable shall
be recognized as profit and loss of the current period or relevant asset costs in which it is incurred.
(3) Accounting treatment method for dismissal benefits
If the Company terminates the labor relationship with an employee before the employee’s labor contract expires,
or proposes to give the employee compensation for encouraging the employee to voluntarily accept dismissal, the
liabilities arising from the compensation giving to the employee for the termination of the labor relationship with
the employee shall be recognized as profit and loss of the current period, when the Company cannot unilaterally
withdraw the termination of the labor relationship plan or the dismissal proposal, or when it recognizes the costs
related to the restructuring of the payment of the dismissal benefits, whichever is earlier. However, if it is expected
that the dismissal benefits cannot be paid in full within twelve months after the end of the annual reporting period,
they shall be accounted for according to other long-term employee remunerations.
Internal retirement schemes for employees shall be accounted for following the same principles of the above
dismissal benefits. Where the salaries and social insurance fees of early retirees to be paid by the Company from
the date when employees stop providing services to the normal retirement date meet the recognition conditions for
projected liabilities, they shall be recognized as profit and loss of the current period.
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(4) Accounting treatment method for other long-term employee benefits
Other long-term benefits provided by the Company to employees that meet the conditions of the defined
contribution plan are accounted for in accordance with the defined contribution plan; other long-term benefits are
accounted for in accordance with the defined benefit plan.
35. Lease liabilities
Recognition and accounting treatment methods of lease liabilities are detailed in "Note V (42) Leases".
36. Provision
An obligation related to contingent issues and meeting the following conditions shall be deemed a provision: (1)
such an obligation is a current one assumed by the Company; (2) fulfilling such an obligation might cause
economic benefits to flow out of the Company; and (3) the amount of such an obligation is measurable reliably.
On the balance sheet date, a provision is measured at the best estimate of the expenditure required to settle the
related present obligation, with comprehensive consideration of factors such as the risks, uncertainty and time
value of money relating to a contingency.
A provision is separately recognized as an asset and the recognized compensation amount shall not exceed the
book value of the provision, when all or part of the expenses required to pay off the provision are expected to be
compensated by a third party and the amount of compensation is basically determined to be receivable.
37. Share-based payment
Share-based payment is the transaction made through granting equity instruments or bearing the liabilities
recognized based on such instruments in exchange for services rendered by employees or other parties. The
Company’s share-based payment includes equity-settled share-based payment and cash-settled share-based
payment.
(1) Equity-settled share-based payment
Where the share payment is settled through equity for acquisition of service from employees, it shall be measured
at the fair value of the equity instruments granted to the employees. If the right cannot be exercised until the
vesting period ends or until the prescribed performance conditions are met, the amount of such fair value shall,
based on the best estimate of the number of vested equity instruments, be recognized as the relevant costs or
expenses by straight-line method; if the right can be exercised immediately following the grant, the amount of
such fair value shall be recognized as the relevant costs or expenses on the grant date, and the capital reserve shall
be increased accordingly.
On each balance sheet date within the vesting period, the Company carries out the best estimation based on such
follow-up information such as the variation of the number of vested staff acquired recently, and revises the
number of estimated vested equity instruments. The impact of the above estimates shall be recognized as the
relevant costs or expenses of the current period, and the capital reserve shall be adjusted accordingly.
For an equity-settled share-based payment in return for the service of any other party, if the fair value of the
service of any other party can be reliably measured, it shall be measured at the fair value of the service of any
other party on the acquisition date; if the fair value of the service of any other party cannot be reliably measured,
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but the fair value of the equity instruments can be reliably measured, it shall be measured at the fair value of the
equity instruments on the acquisition date and included in the relevant costs or expenses, and the shareholders’
equity shall be increased correspondingly.
(2) Cash-settled share payment
The cash-settled share-based payment shall be measured at the fair value of the Company’s liabilities determined
based on shares or other equity instruments. If the right may be exercised immediately after the grant, relevant
costs or expenses shall be recognized the grant date, and the liabilities shall be increased accordingly. If the right
may not be exercised until the vesting period ends or until the specified performance conditions are met, on each
balance sheet date within the vesting period, the services obtained in the current period shall, based on the best
estimate of the information about the exercisable right, be recognized as the relevant costs or expenses at the fair
value of the liability undertaken by the Company, and liabilities shall be increased accordingly.
The fair value of liabilities is re-measured and any change thereto is recognized as profit and loss of the current
period on each balance sheet date and settlement date prior to settlement of the relevant liabilities.
38. Preference shares, perpetual bonds and other financial instruments: None
39. Revenue
Accounting policy for recognition and measurement of revenue
Revenue is the total inflow of economic benefits unrelated to the capital invested by the shareholders which are
formed in the daily activities of the Company and can lead to an increase in shareholders’ equity. The revenue is
recognized when the customers take control of the relevant goods (including services, same for below) if the
contract between the Company and the customers meet all the following conditions: 1) the parties to the contract
have approved such contract and undertake to perform their respective obligations; 2) the contract has specified
the rights and obligations of the parties thereto and in connection with the transfer of goods or provision of labor
services; 3) the contract sets out clear payment terms related to the transfer of goods; 4) the contract has
commercial substance, meaning that the performance thereof will change the risk, time distribution or amount of
the Company’s future cash flow; 5) the Company is very likely to recover the consideration obtained by
transferring goods to customers. Wherein, taking control of relevant goods means being able to control the use of
the goods and obtain almost all economic benefits therefrom.
On the enforcing date of the contract, the Company identifies all individual performance obligations in the
contract, and apportions the transaction price to each individual performance obligation according to the relative
proportion of the individual selling price of the goods. When determining the transaction price, the Company has
considered the impact of such factors including variable consideration, major financing component of the contract,
non-cash consideration, and consideration payable to the customer.
With respect to each individual performance obligation of the contract, the Company will recognize the
transaction price apportioned to such obligation as revenue based on the progress of performance during the
relevant performance periods, if any of the following conditions is met: 1) the customer obtains and consumes the
economic benefits brought by the Company’s performance during such performance; 2) the customer can control
the goods in progress during the Company’s performance; 3) the goods produced from the Company’s
performance has irreplaceable use, and in respect of the portion of revenue arising from the Company’s
performance completed to date, the Company is entitled to collect revenue during the entire validity period of the
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contract. The progress of performance is determined according to the nature of the transferred goods using the
input or output method. When such progress cannot be reasonably determined, if the costs incurred are expected
to be compensated, the Company recognizes revenue based on the amount of costs incurred, until the progress of
performance can be reasonably determined.
If none of the aforesaid conditions is met, the Company will recognize the transaction price apportioned to such
individual performance obligation when the customer obtains the control over relevant goods. To decide whether
the customer has obtained the control over goods, the Company takes into account the following indications: 1)
the enterprise has the present right to collection for the goods, meaning the customer bears the present obligation
to payment for the goods; 2) the enterprise has passed the legal title to the goods to the customer, meaning the
customer has had the legal title to the goods; 3) the enterprise has transferred the physical possession of the goods
to the customer, meaning the customer has had the physical possession of the goods; 4) the enterprise has
transferred the major risks and remunerations concerning the title to the goods to the customer, meaning the
customer has obtained the major risks and remunerations concerning the title to the goods; 5) the customer has
accepted the goods; 6) other indications to show that the customer has obtained the control over the goods.
Generally, the Company’s business of goods selling only comprises the performance obligation of transferring the
goods. The control of the goods is transferred when they are sent out and the Company receives the signed receipt
and other documents from the customer, so the Company confirms the realization of revenue at that point in time.
The discounts, rewards and other arrangements in some contracts between the Company and customers constitute
variable consideration. The Company uses the expected value method or the most likely amount to determine the
best estimates for variable consideration, but the transaction price containing variable consideration shall not
exceed the amount of cumulatively recognized revenue that is unlikely to have major reversals when the relevant
uncertainties are eliminated.
Different business models are adopted for different businesses, which may lead to the differences in the
accounting policy for recognition of revenue.
None
40. Government grants
Government grants are monetary or non-monetary assets acquired by the Company from the government free of
charge, excluding the capital invested by the government as an investor and granted corresponding owner’s equity.
Government grants are classified into government grants related to assets and government grants related to
income. The Company defines the government grants for purchasing or constructing or otherwise forming long-
term assets as asset-related government grants; other government grants are defined as the income-related
government grants. Government grants shall be measured at the amount received or receivable if they are
monetary assets. Non-monetary government grants shall be measured at fair value; if the fair value cannot be
reliably obtained, they shall be measured at the nominal amount. The government grants measured at the nominal
amount shall be directly recognized as the profit and loss of the current period.
Asset-related government grants are recognized as deferred income, and included in the profit and loss of the
current period in stages according to a reasonable and systematic method over the service life of the relevant
assets. The income-related government grants shall be recognized as deferred income if they are used to
compensate relevant expenses or losses in subsequent periods, and shall be recognized as profit and loss of the
current period during the recognition of related expenses; the grants used to compensate related expenses or losses
already incurred shall be directly recognized as profit and loss of the current period.
The government grants related to both assets and income shall be accounted for by distinguishing different parts;
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C&S Paper Co., Ltd. Semi-annual Report 2022
if it is difficult to distinguish, they shall be, as a whole, classified as income-related government grants.
Government grants related to the Company’s daily activities shall be recognized as other profit and loss or write
down relevant costs according to the essence of economic business; those unrelated to the Company’s daily
activities shall be recognized as non-operating income and expenditure.
If the recognized government grants need to be returned and there is relevant deferred income balance, the book
balance of relevant deferred income shall be written off, and the excess shall be recognized as profit and loss of
the current period; otherwise, government grants shall be directly recognized as profit and loss of the current
period.
41. Deferred income tax assets/deferred income tax liabilities
(1) Current income tax
On the balance sheet date, the Company measures a current tax liability (or asset) arising from the current and
prior periods based on the amount of income tax expected to be paid by the Company (or returned by tax
authority) calculated by related tax laws. The taxable income which is the basis for calculation of the current
income tax is calculated after appropriate adjustments to the pretax accounting profits for the reporting period.
(2) Deferred income tax assets and deferred income tax liabilities
For the difference between the book value of certain assets and liabilities and their tax bases, and the temporary
differences between the book values and the tax bases of items, of which the tax bases can be determined for tax
purposes according to the tax laws but which have not been recognized as assets and liabilities, the Company
recognizes deferred income tax assets and deferred income tax liabilities using the balance sheet debt method.
Where the taxable temporary differences arise from the initial recognition of goodwill and the initial recognition
of an asset or liability arising from the transaction that is not a business combination, nor, at the time of the
transaction, affects neither accounting profit and taxable profit (or deductible loss), the relevant deferred income
tax liability shall not be recognized. Additionally, in respect of taxable temporary difference associated with
investments in subsidiaries, joint ventures and associates, where the Company can control the timing of the
reversal of the temporary differences and it is probable that the temporary differences will not be reversed in the
foreseeable future, the relevant deferred income tax liability shall not be recognized. Other than the above
exceptions, the Company shall recognize deferred income tax liabilities arising out from all other taxable
temporary differences.
Where the deductible temporary differences arise from the initial recognition of an asset or liability arising from
the transaction that is not a business combination, nor, at the time of the transaction, affects neither accounting
profit and taxable profit (or deductible loss), the relevant deferred income tax liability shall not be recognized.
Additionally, in respect of deductible temporary difference associated with investments in subsidiaries, joint
ventures and associates, where it is probable that the temporary differences will not be reversed in the foreseeable
future or taxable profit will not be available against which the deductible temporary differences can be utilized in
the future, the relevant deferred income tax liability shall not be recognized. Other than the above exceptions, the
Company recognizes a deferred tax asset for other deductible temporary differences, to the extent that it is
probable that future taxable profit will be available against which the deductible temporary differences can be
utilized.
The tax effects of deductible losses and taxes available for carrying over are recognized as an asset when it is
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C&S Paper Co., Ltd. Semi-annual Report 2022
probable that future taxable profits would be available against which these losses can be utilized.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that are expected to apply
to the period when the asset is realized or the liability is settled, according to the requirements of tax laws.
The book value of deferred tax assets is reviewed at the balance sheet date and written down to the extent that it is
no longer probable that sufficient taxable profit will be available in future periods to allow the deferred tax assets
to be utilized. Such write-down is reversed when it becomes probable that sufficient taxable profits will be
available.
(3) Income tax expenses
Income taxes comprise current income tax and deferred income tax.
The current income tax and deferred income tax expense or income is recognized as the profit and loss of the
current period except that the current income tax and deferred income tax is related to transactions or events,
which are recognized as other comprehensive income or directly recognized as shareholders’ equity, and thus
recognized as other comprehensive income or shareholders’ equity, and that the book value of goodwill is adjusted
due to deferred income tax arising from business combination.
42. Leases
A lease is a contract whereby the Company assigns or acquires the right to control the use of one or more
identified assets for a specified period in exchange for or with payment of consideration. The Company
evaluates whether a contract is a lease or contains a lease at its inception date.
(1) The Company as the lessee
Main types of assets leased by the Company are properties and buildings.
① Initial measurement
Except for short-term leases or low-value asset leases, the Company recognizes the right to use the leased asset
during the lease term as a right-of-use asset and recognizes the present value of unpaid lease payments as a
lease liability. When calculating the present value of lease payments, the Company adopts the interest rate
implicit in the lease as the discount rate; if the interest rate implicit in the lease cannot be determined, the
lessee’s incremental borrowing rate is used as the discount rate.
② Follow-up measurement
The Company depreciates the right-of-use assets with reference to relevant depreciation provisions specified in
the Accounting Standards for Business Enterprises No. 4 - Fixed Assets (see "Note IV ((15) Fixed Assets"). If it
is reasonably ascertained that the ownership of the asset will be transferred to the lessee at the end of the lease
term, then depreciation period runs to the end of the useful life of the lease asset. If it cannot be reasonably
ascertained that the ownership of the leased asset will be transferred to the lessee at the end of the lease term,
then depreciation period runs to the earlier of the end of the useful life of the asset or the end of the lease term.
For lease liabilities, the Company calculates its interest expenses in each period of the lease term at a fixed
periodic interest rate which is included in the profit and loss of the current period. Variable lease payments that
are not included in the measurement of lease liabilities are included in the current profit and loss when they are
actually incurred
After the commencement date of the lease term, when there is a change in the actual fixed payment amount, a
change in the estimated payable amount of the guaranteed residual value, a change in the index or ratio used to
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C&S Paper Co., Ltd. Semi-annual Report 2022
determine the lease payment amount, or a change in the evaluation results or actual exercise of the purchase
option, renewal option or termination option, the Company re-measures the lease liability according to the
present value of the changed lease payments and adjusts the book value of the right-of-use asset accordingly. If
the book value of the right-of-use asset has been reduced to zero but the lease liability still needs to be further
reduced, the Company includes the remaining amount in the profit and loss of the current period.
③ Short-term leases and low-value asset leases
For short-term leases (leases with a term of not more than 12 months since the lease commencement date) and
low-value asset leases Lease liabilities, the Company adopts a simplified approach, i.e. Not recognizing as
right-of-use assets but as the cost of the related asset or as profit and loss of the current period in accordance
with the straight-line method or other systematically reasonable methods during each period of the lease.
(2) The Company as the lessor
On the lease commencement date, the company divides leases into finance leases and operating leases based on
the substance of the transaction. Leases of assets where substantially all the risks and rewards of ownership
have been transferred are classified as finance leases. Other leases than the finance leases are classified as
operating leases.
i. Operating lease
The Company adopts the straight-line method to recognize lease receipts from operating leases as rental income
for each period of the lease term. Variable lease payments related to operating leases that are not included in
lease receipts are included in the current profit and loss when they are actually incurred.
ii. Finance lease
The company recognizes the finance lease receivables and derecognizes the finance lease assets on the
commencement date of the lease term. The financial lease receivables are initially measured by the net
investment in the lease (the sum of the unguaranteed residual value and the present value of the lease receipts
not yet received at the beginning of the lease term, discounted at the interest rate implicit in the lease), while
interest income is calculated and recognized according to the fixed periodic interest rate in each period of the
lease term. Variable lease payments obtained by the Company that are not included in the measurement of the
net value of lease liabilities are included in the current profit and loss when they are actually incurred.
(1) Accounting treatment method for operating lease: Not applicable
(2) Accounting treatment method for finance lease: Not applicable
43. Other important accounting policies and accounting estimates
None
44. Significant changes of accounting policies and accounting estimates
(1) Significant changes of accounting policies
√ Applicable □ Not applicable
Contents and reasons for changes to accounting policies Approval procedure Remarks
On December 30, 2021, the Ministry of Finance issued the On August 29, 2022, the Details can be found in the
Interpretation No. 15 to Accounting Standards for Business Company convened the 15th Announcement on Changes to
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C&S Paper Co., Ltd. Semi-annual Report 2022
Enterprises (C.K. [2021] No. 35) (hereinafter referred to as meeting of the fifth session of Accounting Policies dated
the “Interpretation No. 15”), which stipulated that contents the Board of Directors and the August 30, 2022 on CNINFO
regarding “accounting methods for the external sales of 10th meeting of the fifth (http://www.cninfo.com.cn) .
products or by-products before they reach intended use or session of the Board of
produced during the research and development process” and Supervisors, and approved the
“judgment of loss contracts” shall be implemented from Proposal on Changes to
January 1, 2022, and contents regarding “presentation Accounting Policies.
concerning centralized management of funds” shall be
adopted from December 31, 2021. According to relevant
requirements, the Company started to implement the
Interpretation No. 15 from January 1, 2022.
(2) Significant changes of accounting estimates
□ Applicable √ Not applicable
45. Others: None
VI. Taxes
1. Main tax types and tax rates
Tax Tax basis Tax rate
Taxable VAT (calculated based on the
difference of deducting the amount of
input tax which is allowed to be deducted
Value-added tax 13%, 9%
in the current period from the result of
multiplying taxable sales by applicable
tax rate)
City construction and maintenance tax Turnover tax paid 5%, 7%
Corporate income tax Taxable income 15%, 16.5%, 20%, 25%, progressive rate
Education surcharges Turnover tax paid 3%
Local education surcharges Turnover tax paid 2%
Description of disclosure if different income tax rates apply to different corporate taxpayers
Income tax
Name of taxpayer
rate
C&S Paper Co., Ltd., Zhongshan Zhongshun Trading Co., Ltd., C&S (Hubei) Paper Co., Ltd., Zhejiang
Zhongshun Paper Co., Ltd., Chengdu Zhongshun Paper Co., Ltd., Hangzhou Jie Rou Trading Co., Ltd., Beijing
C&S Paper Co., Ltd., Sun Daily Necessities Co., Ltd., C&S (Dazhou) Paper Co., Ltd., Shanghai Huicong Paper 25%
Co., Ltd., Yunfu Hengtai Trading Co., Ltd., and C&S (Jiangsu) Paper Co., Ltd., Zhongshun Health Life
Technology (Shenzhen) Co., Ltd.,Xiaogan C&S Trading Co., Ltd.
C&S (Zhongshan) Paper Co., Ltd., Beijing Bloomage Jierou Biotechnology Co., Ltd., Dolemi Sanitary Products
Co., Ltd., Luzhou Dolemi Sanitary Products Co., Ltd., Mianyang Dolemi Sanitary Products Co., Ltd., Zhengzhou
20%
Dolemi Sanitary Products Co., Ltd., Dazhou Dolemi Sanitary Products Co., Ltd., Guiyang Dolemi Sanitary
Products Co., Ltd., Zhanjiang Dolemi Sanitary Products Co., Ltd., and Xi’an Dolemi Sanitary Products Co., Ltd.
Zhong Shun International Co., Ltd., and C&S Hong Kong Co., Ltd. (Note 1) 16.50%
Jiangmen Zhongshun Paper Co., Ltd., C&S (Sichuan) Paper Co., Ltd., and C&S (Yunfu) Paper Co., Ltd. 15%
Progressive
C&S (Macao) Co., Ltd. (Note 2)
rate
2. Tax incentive
C&S (Sichuan) Paper Co., Ltd. was certified as a high-tech enterprise of Sichuan Province in 2020 and was
awarded the Certificate of High-tech Enterprise (No. GR202051001193) in September, 2020, with a valid term of
three years. Therefore, the corporate income tax is calculated at a tax rate of 15% in 2021.
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C&S Paper Co., Ltd. Semi-annual Report 2022
C&S (Yunfu) Paper Co., Ltd. was certified as a high-tech enterprise of Guangdong Province in 2020 and was
awarded the Certificate of High-tech Enterprise (No. GR202044006774) in December, 2020, with a valid term of
three years. Therefore, the corporate income tax is calculated at a tax rate of 15% in 2021.
Jiangmen Zhongshun Paper Co., Ltd. was certified as a high-tech enterprise of Guangdong Province in 2021 and
was awarded the Certificate of High-tech Enterprise (No. GR202144006582) in December 2021, with a valid
term of three years. Therefore, the corporate income tax is calculated at a tax rate of 15% in 2021.
In accordance with relevant provisions of the Announcement of the State Administration of Taxation on Issues
Concerning the Implementation of the Inclusive Income Tax Deduction and Exemption Policies for Small Low-
profit Enterprises (STA Doc. [2019] No. 2), the policy on inclusive income tax deduction and exemption for small
low-profit enterprises is applicable to C&S (Zhongshan) Paper Co., Ltd., Beijing Bloomage Jierou Biotechnology
Co., Ltd., Dolemi Sanitary Products Co., Ltd., Luzhou Dolemi Sanitary Products Co., Ltd., Mianyang Dolemi
Sanitary Products Co., Ltd., Zhengzhou Dolemi Sanitary Products Co., Ltd., Dazhou Dolemi Sanitary Products
Co., Ltd., Guiyang Dolemi Sanitary Products Co., Ltd., Zhanjiang Dolemi Sanitary Products Co., Ltd., and Xi’an
Dolemi Sanitary Products Co., Ltd. in 2022. To be specific, the annual taxable income of these enterprises that is
not more than RMB1 million shall be included in their taxable income at the reduced rate of 25%, with the
applicable corporate income tax rate of 20%; and the annual taxable income that is not less than RMB1 million
nor more than RMB3 million shall be included in their taxable income at the reduced rate of 50%, with the
applicable enterprise income tax rate of 20%.
3. Others
Note 1: C&S Hong Kong Co., Ltd. is a Hong Kong-based company incorporated according to the laws of Hong
Kong, and adopts the tax laws thereof. The tax rate for its income tax is 16.50%.
Note 2: C&S (Macao) Co., Ltd. is a Macao-based company incorporated according to the laws of Macao. Its
complementary tax adopts a progressive rate (tax on taxable income that is less than MOP300,000 is exempted,
and the taxable income that is more than MOP300,000 is taxed at 12%).
VII. Notes to Items of the Consolidated Financial Statements
1. Monetary fund
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Cash on hand 36,546.14 46,249.83
Bank deposits 1,305,947,107.81 795,982,835.01
Other monetary funds 144,806,142.45 79,023,408.28
Total 1,450,789,796.40 875,052,493.12
Including: Total deposits in overseas
221,299,097.23 187,577,086.41
banks
Other description
Balance of other monetary funds at the end of the reporting period is the security deposit for issuing letters of
credit and bank acceptance bill and balance of Alipay. Refer to "Note VII (81)" for circumstances where
ownership of monetary funds is restricted.
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C&S Paper Co., Ltd. Semi-annual Report 2022
2. Tradable financial assets
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Financial assets measured at fair value
with changes included in current profit 9,247.32
and loss
Including：
Stock 9,247.32
Including：
Total 9,247.32
Other description: None
3. Derivative financial assets: None
4. Notes receivable
(1) Notes receivable presentation by category
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Bank acceptance bill 710,958.40 2,327,060.20
Trade acceptance bill 42,000,000.00
Total 42,710,958.40 2,327,060.20
If the bad debt reserve of notes receivable is set aside according to general model of expected credit loss, please
refer to the disclosure method of other receivables to disclose relevant information on bad debt reserve:
□ Applicable √ Not applicable
(2) Bad debt reserve that is set aside, recovered or transferred back in the reporting period: None
Wherein, the amount of recovered or transferred back bad debt reserve in the reporting period is important:
□ Applicable √ Not applicable
(3) Notes receivable that the Company has pledged at the end of the reporting period: None
(4) Notes receivable that the Company has endorsed or discounted at the end of the reporting period and
are not due on the balance sheet date: None
(5) Notes that are transferred to notes receivable because the drawer does not perform the contract at the
end of the reporting period: None
Other description
1.As of June 30, 2022, the Company has no pledged notes receivable as at the end of the year.
2.As of June 30, 2022, the Company has no derecognized notes receivable that are endorsed or discounted but not
due as at the end of the year.
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3.As of June 30, 2022, the Company has no notes that are transferred to notes receivable because the drawer does
not perform the contract as at the end of the year.
4.(6) Notes receivable actually written off in the reporting period: None
5. Accounts receivable
(1) Accounts receivable disclosure by category
Unit: RMB
Balance at the end of the period Balance at the beginning of the period
Categor Impairment Impairment
Book balance Book balance
provision Book provision Book
y
Percenta Provisio value Percenta Provisio value
Amount Amount Amount Amount
ge n ratio ge n ratio
Account
s
receivab
le for
which
41,020,4 15,136,1 25,884,3 41,279,7 15,136,1 26,143,6
bad debt 3.53% 36.90% 3.37% 36.67%
reserve 11.95 03.86 08.09 11.95 03.86 08.09
is set
aside
individu
ally
Includin
g:
Account
s
receivab
le for
which
1,120,33 29,016,8 1,091,31 1,183,69 32,012,0 1,151,68
bad debt 96.47% 2.59% 96.63% 2.70%
reserve 2,640.38 79.88 5,760.50 9,791.69 00.50 7,791.19
is set
aside in
portfolio
s
Includin
g:
Portfolio
1,120,33 29,016,8 1,091,31 1,183,69 32,012,0 1,151,68
based on 96.47% 2.59% 96.63% 2.70%
aging 2,640.38 79.88 5,760.50 9,791.69 00.50 7,791.19
1,161,35 44,152,9 1,117,20 1,224,97 47,148,1 1,177,83
Total 100.00% 3.80% 100.00% 3.85%
3,052.33 83.74 0,068.59 9,503.64 04.36 1,399.28
Bad debt reserve set aside individually: 15,136,103.86
Unit: RMB
Balance at the end of the period
Name
Book balance Impairment provision Ratio of provision Reason for provision
It is difficult to recover
all goods payments due
Institution 1 28,208,040.02 8,218,072.46 29.13% to the poor business
performance of the
customer.
It is difficult to recover
Institution 2 6,695,735.27 4,455,035.27 66.54% all goods payments due
to the poor business
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C&S Paper Co., Ltd. Semi-annual Report 2022
performance of the
customer.
It is difficult to recover
all goods payments due
Institution 3 6,116,636.66 2,462,996.13 40.27% to the poor business
performance of the
customer.
合计 41,020,411.95 15,136,103.86
Bad debt reserve set aside in portfolios: 29,016,879.88
Unit: RMB
Balance at the end of the period
Name
Book balance Impairment provision Ratio of provision
Within the credit period 967,389,567.38 19,347,791.33 2.00%
Credit period - 1 year 147,129,752.55 7,356,487.63 5.00%
1 to 2 years 1,593,634.41 239,045.16 15.00%
2 to 3 years 181,436.32 54,430.90 30.00%
3 to 5 years 4,038,249.72 2,019,124.86 50.00%
Over 5 years 1,120,332,640.38 29,016,879.88
Description of reason for the portfolio:
Accounts receivable with the same aging have similar credit risk characteristics.
If the bad debt reserve of accounts receivable is set aside according to general model of expected credit loss,
please refer to the disclosure method of other receivables to disclose relevant information on bad debt reserve:
□ Applicable √ Not applicable
Disclose by aging
Unit: RMB
Aging Book balance
Within 1 year (inclusive) 1,121,215,055.19
1 to 2 years 1,593,634.41
2 to 3 years 181,436.32
Over 3 years 38,362,926.41
3 to 4 years 4,038,249.72
4 to 5 years 0.00
Over 5 years 34,324,676.69
Total 1,161,353,052.33
(2) Bad debt reserve that is set aside, recovered or transferred back in the reporting period
Provision of bad debt reserve of the reporting period:
Unit: RMB
Balance at the Amount of change in the reporting period Balance at the
Category beginning of Recovery or end of the
the period Provision Write-off Others period
reversal
Accounts
47,148,104.36 -2,995,120.62 44,152,983.74
receivable
Total 47,148,104.36 -2,995,120.62 44,152,983.74
Wherein, the amount of recovered or transferred back bad debt reserve in the reporting period is important:
None
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C&S Paper Co., Ltd. Semi-annual Report 2022
(3) Accounts receivable actually written off in the reporting period: None
(4) Top five debtors in closing balance of accounts receivable
Unit: RMB
Balance of accounts Percentage in total balance of
Balance for bad debt reserve
Name of institution receivable at the end of the accounts receivable at the end
at the end of the period
period of the period
1st 374,161,658.50 32.22% 7,487,913.83
2nd 91,061,915.20 7.84% 2,560,009.16
3rd 41,476,407.61 3.57% 1,005,219.43
4th 34,292,226.20 2.95% 693,625.74
5th 33,752,696.77 2.91% 1,144,791.85
Total 574,744,904.28 49.49%
(5) Amounts of assets and liabilities that are formed by the transfer and ongoing involvement of accounts
receivable
The Company has no amounts of assets and liabilities that are formed by the transfer and ongoing involvement of
accounts receivable as at the end of the reporting period.
(6) Accounts receivable derecognized due to transfer of financial assets
The Company has no accounts receivable derecognized due to the transfer of financial assets as at the end of the
reporting period.
Other description: None.
6. Accounts receivable financing
Increase and decrease of accounts receivable financing and changes in fair value in the reporting period
□ Applicable √ Not applicable
If the provisions for asset impairment of accounts receivable financing are set aside according to general model
of expected credit loss, please refer to the disclosure method of other receivables to disclose relevant
information on provisions for asset impairment:
□ Applicable √ Not applicable
Other description: None.
7. Prepayments
(1) Prepayments presentation by aging
Unit: RMB
Balance at the end of the period Balance at the beginning of the period
Aging
Amount Percentage Amount Percentage
Within 1 year 115,180,603.19 100.00% 36,685,769.73 100.00%
Total 115,180,603.19 36,685,769.73
Explanation on the reason of untimely settlement of prepayments whose age exceeds one year with significant
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C&S Paper Co., Ltd. Semi-annual Report 2022
amount: None
(2) Top five payees in closing balance of prepayment
The Company’s total prepayment amount of the top five payees in closing balance of prepayment is RMB
90,626,553.73, accounting for 78.68% of closing balance of prepayment.
Other description: None
8. Other receivables
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Other receivables 21,078,983.69 12,353,794.41
Total 21,078,983.69 12,353,794.41
(1) Interest receivable
1) Classification of interest receivable: None
2) Significant overdue interest: None
Other description: None
3) Provision of bad debt reserve
□ Applicable √ Not applicable
(2) Dividends receivable
1) Classification of dividends receivable: None
2) Significant dividends receivable exceeding one year: None
3) Provision of bad debt reserve
□ Applicable √ Not applicable
Other description: None
(3) Other receivables
1) Classification of other receivables by nature
Unit: RMB
Book balance at the beginning of the
Nature Book balance at the end of the period
period
Margins and deposits 5,082,522.11 4,555,486.30
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C&S Paper Co., Ltd. Semi-annual Report 2022
Current accounts 6,210,484.43 5,834,746.14
Reserve 3,820,729.74 2,167,837.76
Others 8,797,862.70 1,937,176.46
Total 23,911,598.98 14,495,246.66
2) Provision of bad debt reserve
Unit: RMB
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Bad debt provision Expected credit loss in in the whole duration in the whole duration Total
the next 12 months (without credit (with credit
impairment) impairment)
Balance as at January
2,141,452.25 2,141,452.25
1, 2022
Balance as at January
1, 2022 in the reporting
period
Provision in the
691,163.04 691,163.04
reporting period
Balance as at June 30,
2,832,615.29 2,832,615.29
2022
Description of changes in the book balance where there are significant changes in provision for the current
period
□ Applicable √ Not applicable
Disclose by aging
Unit: RMB
Aging Balance at the end of the period
Within 1 year (inclusive) 19,000,391.09
1 to 2 years 1,441,979.54
2 to 3 years 479,100.00
Over 3 years 2,990,128.35
3 to 4 years 2,015,747.22
4 to 5 years 919,371.88
Over 5 years 55,009.25
Total 23,911,598.98
3) Bad debt reserve that is set aside, recovered or transferred back in the reporting period
Provision of bad debt reserve of the reporting period:
Unit: RMB
Balance at the Amount of change in the reporting period Balance at the
Type beginning of Recovery or end of the
the period Provision Write-off Others period
reversal
Other
2,141,452.25 691,163.04 2,832,615.29
receivables
Total 2,141,452.25 691,163.04 2,832,615.29
Where the amount of recovered or reversed bad debt reserve in the reporting period is important: None
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C&S Paper Co., Ltd. Semi-annual Report 2022
4) Other receivables actually written off in the reporting period: None
5) Top five debtors in closing balance of other accounts receivable
Unit: RMB
Percentage in total
Balance of bad
Name of Nature of the Balance at the end balance of other
Aging debt reserve at the
institution amount of the period receivables at the
end of the period
end of the period
1st Others 7,750,965.06 Within 1 year 32.42% 387,548.25
Margins and
2nd 1,100,000.00 2-3 years 4.60% 550,000.00
deposits
Margins and
3rd 800,000.00 2-3 years 3.35% 327,500.00
deposits
Margins and
4th 600,000.00 3-4 years 2.51% 300,000.00
deposits
Within 1 year, 1-2
Margins and
5th 585,000.00 years, 2- 3 years, 2.45% 162,750.00
deposits
3-4 years,4-5 years
Total 10,835,965.06 45.33% 1,727,798.25
6) Receivables involving government grants: None
7) Other receivables derecognized due to the transfer of financial assets: None
8) Amount of assets and liabilities that are formed by the transfer and ongoing involvement of other
receivables: None
9. Inventory
Whether the Company needs to comply with requirements for disclosure in the real estate industry: No
(1) Classification of inventories
Unit: RMB
Balance at the end of the period Balance at the beginning of the period
Provision for Provision for
impairment of impairment of
inventories or inventories or
Item
Book balance provision for Book value Book balance provision for Book value
contract contract
performance performance
cost cost
Raw materials 515,297,680.43 5,061,698.85 510,235,981.58 886,711,194.32 5,050,118.51 881,661,075.81
Work-in-
process 88,718,598.05 317,532.16 88,401,065.89 50,455,115.89 188,464.55 50,266,651.34
products
Commodity
520,317,951.79 4,478,575.07 515,839,376.72 458,467,589.59 4,792,993.52 453,674,596.07
stocks
Packages 30,447,249.28 399,334.03 30,047,915.25 43,288,272.57 465,044.89 42,823,227.68
Low-value 23,088,393.50 1,854,911.13 21,233,482.37 24,525,776.59 820,943.23 23,704,833.36
128
C&S Paper Co., Ltd. Semi-annual Report 2022
consumables
Materials for
consigned 27,944,083.84 27,944,083.84 15,501,132.69 15,501,132.69
processing
1,205,813,956. 1,193,701,905. 1,478,949,081. 1,467,631,516.
Total 12,112,051.24 11,317,564.70
89 65 65 95
(2) Provision for impairment of inventories or provision for contract performance cost
Unit: RMB
Balance at the Increase in the current period Decrease in the current period
Balance at the end
Item beginning of the Reversal or
Provision Others Others of the period
period written off
Raw materials 5,050,118.51 237,042.53 225,462.19 5,061,698.85
Work-in-
process 188,464.55 207,094.42 78,026.81 317,532.16
products
Commodity
4,792,993.52 2,808,039.04 3,122,457.49 4,478,575.07
stocks
Packages 465,044.89 238,237.23 303,948.09 399,334.03
Low-value
820,943.23 1,245,283.15 211,315.25 1,854,911.13
consumables
Total 11,317,564.70 4,735,696.37 3,941,209.83 12,112,051.24
(3) Explanation that balance of inventory at the end of the reporting period includes amount of
capitalization of borrowing costs: None
(4) Explanation on amortized amount of contract performance cost in the reporting period: None
10. Contract assets: None
If the bad debt reserve of contrast assets is set aside according to general model of expected credit loss, please
refer to the disclosure method of other receivables to disclose relevant information on bad debt reserve:
□ Applicable √ Not applicable
Provision for impairment of contract assets in the reporting period
Other description: None
11. Assets held for sale
Other description:
In December 2019, in order to boost the investment and construction of Phase II of the high-end household paper
project in the industrial zone in the Economic Development Area of Xiaonan District, Xiaogan City, the Company
signed an agreement on the acquisition of the immovable assets in the old factory of Hubei C&S (including land
use rights) upon consultation with Xiaonan District People’s Government of Xiaogan City. The Company believed
that the immovable assets of the old factory of Hubei C&S (including land use rights) could be sold immediately
in the current situation, according to similar transactions where such assets were sold. The Company signed a
binding purchase agreement with Xiaogan Changxing Investment Co., Ltd. and Xiaonan District People’s
Government of Xiaogan City regarding the transfer of such assets in December 2019. The Agreement contained
important terms and conditions including the price and time of the transaction as well as penalty for breach of
129
C&S Paper Co., Ltd. Semi-annual Report 2022
contract that was strict enough. Therefore, there is little possibility for the agreement to be significantly changed
or canceled. The Company originally estimated that the ultimate transfer would be completed before December
2020. However, under the impact of the Covid-19 pandemic in 2020, the government shifted its focus to anti-
pandemic work with people’s interests above everything else. Especially, Xiaogan City of Hubei Province was
one of the hardest-hit areas, so the government has put all efforts in the fight against the virus and post-pandemic
economic rejuvenation. As a result, it was unable to pay all asset transfer amount within the agreed period.
In 2021, the Company actively communicated with Xiaogan Changxing Investment Co., Ltd. and Xiaonan District
People’s Government of Xiaogan City regarding asset delivery matters. However, the delivery was not completed
at the end of 2021.
As of the end of March 2022, the Company has finally completed the asset delivery.
12. Non-current assets due within one year: None
13. Other current assets
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Wealth management products 10,000,000.00
Input VAT to be deducted 20,760,549.73 46,011,229.37
Large-denomination Certificate of
171,239,541.68 62,479,083.36
Deposit
Prepaid corporate income tax 1,625,102.27 5,040,567.23
Total 193,625,193.68 123,530,879.96
Other description: None
14. Investments in creditor’s rights
Description of changes in the book balance where there are significant changes in provision for the current
period
□ Applicable √ Not applicable
Other description: None
15. Other investments in creditor’s rights
Description of changes in the book balance where there are significant changes in provision for the current
period
□ Applicable √ Not applicable
Other description: None
16. Long-term receivables
(1) Long-term receivables
Description of changes in the book balance where there are significant changes in provision for the current
period
130
C&S Paper Co., Ltd. Semi-annual Report 2022
□ Applicable √ Not applicable
(2) Long-term receivables derecognized due to the transfer of financial assets: None
(3) Amounts of assets and liabilities that are formed by the transfer and ongoing involvement of long-
term receivables: None
17. Long-term equity investment: None
18. Investment in other equity instruments: None
19. Other non-current financial assets: None
20. Investment property
(1) Investment property measured at cost
√ Applicable □ Not applicable
Unit: RMB
Properties and Construction work in
Item Land use rights Total
buildings progress
I. Original Book Value
1. Balance at the
31,072,632.92 21,661,131.29 52,733,764.21
beginning of the period
2. Increase in the
current period
(1) External purchase
(2) Inventory\fixed
assets\transfer from
construction work in
progress
(3) Increase in business
combination
3. Decrease in the
current period
(1) Disposal
(2) Other transfers out
4. Balance at the end of
31,072,632.92 21,661,131.29 52,733,764.21
the period
II. Accumulated
Depreciation and
Amortization
1. Balance at the
14,094,505.59 5,500,776.88 19,595,282.47
beginning of the period
2. Increase in the
486,421.32 232,020.78 718,442.10
current period
(1) Provision or
486,421.32 232,020.78 718,442.10
amortization
3. Decrease in the
current period
(1) Disposal
131
C&S Paper Co., Ltd. Semi-annual Report 2022
(2) Other transfers out
4. Balance at the end of
14,580,926.91 5,732,797.66 20,313,724.57
the period
III. Impairment
Provision
1. Balance at the
beginning of the period
2. Increase in the
current period
(1) Provision
3. Decrease in the
current period
(1) Disposal
(2) Other transfers out
4. Balance at the end of
the period
IV. Book Value
1. Book value at the
16,491,706.01 15,928,333.63 32,420,039.64
end of the period
2. Book value at the
16,978,127.33 16,160,354.41 33,138,481.74
beginning of the period
(2) Investment property measured at fair value
□ Applicable √ Not applicable
(3) Investment property that the certificate of title has not been issued
The Company does not have investment property that the certificate of title has not been issued as at June 30,
2022.
21. Fixed assets
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Fixed assets 3,120,455,256.80 3,129,371,506.40
Total 3,120,455,256.80 3,129,371,506.40
(1) Information on fixed assets
Unit: RMB
Properties and Office Production
Item Equipment Motor vehicles Total
buildings equipment equipment
I. Original
Book Value
1. Balance at
1,341,340,687. 3,445,905,919. 4,964,784,614.
the beginning 61,098,219.68 21,992,518.35 94,447,269.89
24 04 20
of the period
2. Increase in
the current 13,895,541.38 166,323,082.56 5,093,045.29 817,517.08 5,600,538.09 191,729,724.40
period
132
C&S Paper Co., Ltd. Semi-annual Report 2022
(1)
118,690.27 5,093,045.29 817,517.08 5,600,538.09 11,629,790.73
Purchase
(2)
Inventory\fixed
assets\transfer
from 13,895,541.38 166,204,392.29 180,099,933.67
construction
work in
progress
(3)
Increase in
business
combination
3. Decrease
in the current 110,205.61 43,825,530.16 865,381.42 265,797.00 45,066,914.19
period
(1)
Disposal or 110,205.61 43,825,530.16 865,381.42 265,797.00 45,066,914.19
scrap
4. Balance at
1,355,126,023. 3,568,403,471. 5,111,447,424.4
the end of the 65,325,883.55 22,810,035.43 99,782,010.98
period 01 44 1
II. Accumulated
Depreciation
1. Balance at
1,429,673,509. 1,805,334,121.
the beginning 278,466,822.64 34,278,045.23 10,099,467.67 52,816,275.80
95 29
of the period
2. Increase in
the current 25,142,953.66 149,104,688.05 4,477,560.58 1,120,386.55 6,684,950.07 186,530,538.91
period
(1)
25,142,953.66 149,104,688.05 4,477,560.58 1,120,386.55 6,684,950.07 186,530,538.91
Provision
3. Decrease
in the current 923.89 15,059,060.36 775,942.96 239,217.31 16,075,144.52
period
(1)
Disposal or 923.89 15,059,060.36 775,942.96 239,217.31 16,075,144.52
scrap
4. Balance at
1,563,719,137. 1,975,789,515.
the end of the 303,608,852.41 37,979,662.85 11,219,854.22 59,262,008.56
64 68
period
III. Impairment
Provision
1. Balance at
the beginning 271,024.32 29,680,382.73 58,221.32 69,358.14 30,078,986.51
of the period
2. Increase in
the current 165,948.18 165,948.18
period
(1)
165,948.18 165,948.18
Provision
3. Decrease 15,041,477.41 805.35 15,042,282.76
133
C&S Paper Co., Ltd. Semi-annual Report 2022
in the current
period
(1)
Disposal or 15,041,477.41 805.35 15,042,282.76
scrap
4. Balance at
the end of the 271,024.32 14,804,853.50 57,415.97 69,358.14 15,202,651.93
period
IV. Book Value
1. Book
1,051,246,146. 1,989,879,480. 3,120,455,256.
value at the end 27,288,804.73 11,590,181.21 40,450,644.28
of the period 28 30 80
2. Book
value at the 1,062,602,840. 1,986,552,026. 3,129,371,506.
26,761,953.13 11,893,050.68 41,561,635.95
beginning of 28 36 40
the period
(2) Information on temporarily idle fixed assets
Unit: RMB
Original book Accumulated Impairment
Item Book value Remarks
value depreciation provision
Equipment 40,354,126.31 24,225,653.44 15,075,877.82 1,052,595.05
Office equipment 410,198.70 351,932.73 57,415.97 850.00
Production
147,951.48 68,293.34 69,358.14 10,300.00
equipment
Total 40,912,276.49 24,645,879.51 15,202,651.93 1,063,745.05
(3) Fixed assets leased through operating: None
(4) Fixed assets that the certificate of title has not been issued
Unit: RMB
Reasons for the certificate of title having
Item Book value
not been issued
Plants and warehouses of Tangshan
44,953,292.14 Processing
Branch
Total 44,953,292.14
Other description: None
(5) Disposal of fixed assets: None
22. Construction work in process
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Construction work in process 82,465,014.18 134,875,696.94
Total 82,465,014.18 134,875,696.94
134
C&S Paper Co., Ltd. Semi-annual Report 2022
(1) Construction work in progress
Unit: RMB
Balance at the end of the period Balance at the beginning of the period
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Construction
work of C&S 5,430,965.26 5,430,965.26 10,160,431.64 10,160,431.64
Paper
Construction
work of 10,188,540.39 10,188,540.39 3,894,339.75 3,894,339.75
Jiangmen C&S
Construction
work of 1,525,723.85 1,525,723.85 1,136,260.16 1,136,260.16
Zhejiang C&S
Construction
work of 7,244,798.32 7,244,798.32 4,628,355.84 4,628,355.84
Sichuan C&S
Construction
work of
34,110,419.85 34,110,419.85 104,140,687.38 104,140,687.38
Tangshan
Branch
Construction
work of Hubei 2,818,434.52 2,818,434.52 4,347,806.26 4,347,806.26
C&S
Construction
work of Yunfu 19,762,610.45 19,762,610.45 6,037,233.84 6,037,233.84
C&S
Construction
work of Jiangsu 530,582.07 530,582.07 530,582.07 530,582.07
C&S
Construction
work of 852,939.47 852,939.47
Dazhou C&S
Total 82,465,014.18 82,465,014.18 134,875,696.94 134,875,696.94
(2) Changes of significant construction work in progress in the current period
Unit: RMB
Propor Includi
Amou
tion of Accum ng: Interes
nt of
Balanc the ulative Amou t
Increas fixed Decrea Balanc
e at the cumul Constr amoun nt of capital
Budget e in assets se in e at the
beginn ative uction t of interes ization Source
Project numbe the transfe the end of
ing of constr progre interes t rate in of fund
r current rred in current the
the uction ss t capital the
period the period period
period input capital ization current
current
in ization in the period
period
budget period
Constr
uction 15,715 10,160
work 1,716, 6,446, 5,430, 75.58 75.58
,000.0 ,431.6 Others
of 770.50 236.88 965.26 % %
C&S 0 4
Paper
Constr
uction 31,209 25,582 19,288 10,188
work 3,894, 94.45 94.45
,202.0 ,810.4 ,609.7 ,540.3 Others
of 339.75 % %
Jiangm 4 2 8 9
en
135
C&S Paper Co., Ltd. Semi-annual Report 2022
C&S
Constr
uction
work
1,874, 1,136, 729,06 339,59 1,525, 99.51 99.51
of Others
Zhejia 474.81 260.16 1.08 7.39 723.85 % %
ng
C&S
Constr
uction
work 8,769, 4,628, 3,696, 1,080, 7,244, 94.93 94.93
Others
of 705.37 355.84 554.31 111.83 798.32 % %
Sichua
n C&S
Constr
uction
work 305,79 104,14 61,711 131,74 34,110
78.68 78.68
of 7,723. 0,687. ,638.5 1,906. ,419.8 Others
Tangsh % %
01 38 3 06 5
an
Branch
Constr
uction 676,17 15,862 17,391
work 4,347, 2,818, 97.22 97.22
0,426. ,064.5 ,436.3 Others
of 806.26 434.52 % %
Hubei 15 8 2
C&S
Constr
uction 26,230 17,537 19,762
work 6,037, 3,812, 89.88 89.88
,386.5 ,412.0 ,610.4 Others
of 233.84 035.41 % %
Yunfu 8 2 5
C&S
Constr
uction 695,60
work 530,58 530,58
0,000. 0.08% 0.08% Others
of 2.07 2.07
Jiangs 00
u C&S
Constr
uction
825,00
work 852,93 852,93
0,000. 0.10% 0.10% Others
of 9.47 9.47
00
Dazho
u C&S
2,586, 134,87 127,68 180,09 82,465
Total 366,91 5,696. 9,250. 9,933. ,014.1
7.96 94 91 67 8
(3) Construction-in-progress provision set aside in the current period
Other description
There was no situation where the recoverable amount of the construction work in progress is lower than the book
value which required provisions in the Company in the reporting period.
136
C&S Paper Co., Ltd. Semi-annual Report 2022
(4) Construction materials: None
23. Productive biological assets
(1) Productive biological assets measured at cost
□ Applicable √ Not applicable
(2) Productive biological assets measured at fair value
□ Applicable √ Not applicable
24. Oil & gas assets
□ Applicable √ Not applicable
25. Right-of-use assets
Unit: RMB
Item Properties and buildings Total
I. Original Book Value
1. Balance at the beginning of the
23,128,769.16 23,128,769.16
period
2. Increase in the current period 5,728,405.72 5,728,405.72
3. Decrease in the current period 2,499,625.78 2,499,625.78
4. Balance at the end of the period 26,357,549.10 26,357,549.10
II. Accumulated Depreciation
1. Balance at the beginning of the
8,828,248.39 8,828,248.39
period
2. Increase in the current period 6,768,952.23 6,768,952.23
(1) Provision 6,768,952.23 6,768,952.23
3. Decrease in the current period 1,908,398.26 1,908,398.26
(1) Disposal 1,908,398.26 1,908,398.26
4. Balance at the end of the period 13,688,802.36 13,688,802.36
III. Impairment Provision
1. Balance at the beginning of the
period
2. Increase in the current period
(1) Provision
3. Decrease in the current period
(1) Disposal
4. Balance at the end of the period
IV. Book Value
1. Book value at the end of the period 12,668,746.74 12,668,746.74
2. Book value at the beginning of the
14,300,520.77 14,300,520.77
period
Other description: None
137
C&S Paper Co., Ltd. Semi-annual Report 2022
26. Intangible assets
(1) Intangible assets
Unit: RMB
Non-patented Application Trademark
Item Land use right Patent right Total
technology software right
I. Original
Book Value
1. Balance
at the beginning 189,064,322.15 1,733,287.88 24,473,780.06 168,370.83 215,439,760.92
of the period
2. Increase
in the current 1,401,306.61 1,401,306.61
period
(1)
1,401,306.61 1,401,306.61
Purchase
(2)
Internal R&D
(3)
Increase in
business
combination
3. Decrease
in the current
period
(1)
Disposal
4. Balance
at the end of the 189,064,322.15 1,733,287.88 25,875,086.67 168,370.83 216,841,067.53
period
II. Accumulated
Amortization
1. Balance
at the beginning 33,248,263.66 1,000,988.17 12,568,210.15 168,370.83 46,985,832.81
of the period
2. Increase
in the current 1,898,651.76 66,663.30 1,804,358.16 3,769,673.22
period
(1)
1,898,651.76 66,663.30 1,804,358.16 3,769,673.22
Provision
3.
Decrease in the
current period
(1)
Disposal
4. Balance
at the end of the 35,146,915.42 1,067,651.47 14,372,568.31 168,370.83 50,755,506.03
period
III. Impairment
Provision
1. Balance
at the beginning
of the period
2. Increase
in the current
period
(1)
Provision
138
C&S Paper Co., Ltd. Semi-annual Report 2022
3.
Decrease in the
current period
(1)
Disposal
4. Balance
at the end of the
period
IV. Book Value
1. Book
value at the end 153,917,406.73 665,636.41 11,502,518.36 166,085,561.50
of the period
2. Book
value at the
155,816,058.49 732,299.71 11,905,569.91 168,453,928.11
beginning of
the period
The intangible assets generated other than internal R&D of the Company at the end of the period occupy 0.00% of the balance of
intangible assets.
(2) Information on the land use rights that the certificate of title has not been issued: None
27. Development expenses: None
28. Goodwill
(1) Original book value of goodwill
Unit: RMB
Name of Increase in the current period Decrease in the current period Balance at the
Balance at the
investee or the Formed by
beginning of end of the
matters forming business Disposal
the period period
goodwill combination
Merger of
Zhongshan
Paper involving
64,654.15 64,654.15
enterprises not
under common
control
Total 64,654.15 64,654.15
(2) Provision for impairment of goodwill
Unit: RMB
Name of Increase in the current period Decrease in the current period Balance at the
Balance at the
investee or the
beginning of end of the
matters forming Provision Disposal
the period period
goodwill
Total
Relevant information on the asset group or asset group portfolio in which the goodwill is located
Explain the method to confirm the process of goodwill impairment test, key parameters (e.g. the growth rate in the
predictive period when predicting the present value of future cash flow, the growth rate in the stable period, profit
139
C&S Paper Co., Ltd. Semi-annual Report 2022
rate, discount rate, and predictive period), and the goodwill impairment loss:
After conducting the asset impairment test by combining the goodwill with corresponding asset groups, there was
no impairment as at June 30, 2022, and provisions at the end of the reporting period were not set aside.
Influence of the goodwill impairment test
Other description: None
29. Long-term unamortized expenses
Unit: RMB
Balance at the Amortized amount
Increase in the Balance at the end
Item beginning of the of the current Other decreases
current period of the period
period period
Use rights of
923,439.53 419,080.00 818,303.72 524,215.81
sewage discharge
Decoration fees of
13,584,414.56 3,388,467.35 5,495,033.28 11,477,848.63
office buildings
Electricity use
2,255,050.00 309,750.00 1,945,300.00
rights
Total 16,762,904.09 3,807,547.35 6,623,087.00 13,947,364.44
Other description: None
30. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets that were not offset
Unit: RMB
Balance at the end of the period Balance at the beginning of the period
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Provision for asset
45,919,713.11 10,182,971.86 48,619,359.11 10,491,437.82
impairment
Unrealized profit in
28,792,173.67 5,917,449.52 48,456,053.79 10,181,650.08
internal transaction
Deductible loss 512,064,777.88 127,880,819.80 396,983,644.42 99,145,338.70
Accrued expenses 12,112,051.24 2,061,178.41 11,317,564.70 1,862,027.54
Provision for
impairment of fixed 15,202,651.93 2,868,935.97 30,078,986.51 5,111,314.51
assets
Provision for
impairment of 39,691,819.58 9,681,735.55 57,965,133.83 14,145,915.91
inventories
Equity incentive cost 96,707,743.24 24,176,935.81 96,707,743.24 24,176,935.81
Deferred income 93,276,144.04 18,208,734.13 90,270,562.19 17,071,324.48
Trading financial assets 2,538.47 380.77
Total 843,769,613.16 200,979,141.82 780,399,047.79 182,185,944.85
(2) Deferred income tax liabilities that were not offset
Unit: RMB
140
C&S Paper Co., Ltd. Semi-annual Report 2022
Balance at the end of the period Balance at the beginning of the period
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Pre-tax deduction of
fixed assets at one time
232,404,972.51 46,349,637.34 240,560,367.15 46,514,550.50
as stipulated in the tax
law
Total 232,404,972.51 46,349,637.34 240,560,367.15 46,514,550.50
(3) Presentation of deferred income tax assets or liabilities by the net amount after offset
Unit: RMB
Offset amount of the Balance of the deferred Offset amount of the Balance of the deferred
deferred income tax income tax assets or deferred income tax income tax assets or
Item assets and liabilities at liabilities after offset at assets and liabilities at liabilities after offset at
the end of the reporting the end of the reporting the beginning of the the beginning of the
period period reporting period reporting period
Deferred income tax
assets 200,979,141.82 182,185,944.85
Deferred income tax
liabilities 46,349,637.34 46,514,550.50
(4) Breakdown of unconfirmed deferred income tax assets
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Deductible temporary differences 693,698.99
Total 693,698.99
(5) Deductible losses of the unconfirmed deferred income tax assets due in the next year: None
31. Other non-current assets
Unit: RMB
Balance at the end of the period Balance at the beginning of the period
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
56,147,845.0 56,147,845.0 56,147,845.0 56,147,845.0
Prepayment for property purchase
0 0 0 0
33,071,282.0 33,071,282.0 34,786,139.7 34,786,139.7
Prepayment for engineering equipment
5 5 9 9
Prepayment for software 763,525.60 763,525.60 708,378.66 708,378.66
89,982,652.6 89,982,652.6 91,642,363.4 91,642,363.4
Total
5 5 5 5
Other description: None
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C&S Paper Co., Ltd. Semi-annual Report 2022
32. Short-term borrowings
(1) Classification of short-term borrowings
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Guaranteed borrowings 242,000,000.00
Total 242,000,000.00
Description of classification of short-term borrowings: None
(2) Short-term borrowings overdue but unpaid: None
Other description:
There were no short-term borrowings overdue but unpaid in the Company at the end of the reporting period.
33. Tradable financial liabilities: None
34. Derivative financial liabilities: None
35. Notes payable
Unit: RMB
Category Balance at the end of the period Balance at the beginning of the period
Banker’s acceptance 370,849,951.28 334,969,632.58
Total 370,849,951.28 334,969,632.58
The total amount of the notes payable due but unpaid at the end of the reporting period is RMB0.00.
36. Accounts payable
(1) List of accounts payable
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Accounts payable 903,093,837.05 829,113,780.31
Total 903,093,837.05 829,113,780.31
(2) Significant accounts payable with aging over one year
The Company has no significant accounts payable with aging over one year at the end of the reporting period.
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37. Payments received in advance
(1) List of payments received in advance: None
(2) Significant payments received in advance with aging over one year: None
38. Contract liabilities
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Advances on sales 53,611,707.18 164,360,443.34
Total 53,611,707.18 164,360,443.34
39. Employee remuneration payable
(1) List of employee remuneration payable
Unit: RMB
Balance at the beginning Increase in the current Decrease in the current Balance at the end of the
Item
of the period period period period
I. Short-term
Compensation 139,212,737.55 427,927,113.55 456,850,178.45 110,289,672.65
II. Post-employment
Benefits - Defined 338,668.91 31,727,352.84 30,997,994.92 1,068,026.83
Contribution Plan
III. Dismissal Benefits 2,650,245.60 2,650,245.60
Total 139,551,406.46 462,304,711.99 490,498,418.97 111,357,699.48
(2) List of short-term remuneration
Unit: RMB
Balance at the beginning Increase in the current Decrease in the current Balance at the end of the
Item
of the period period period period
1. Salary, bonus and
subsidy 138,256,273.82 384,531,558.60 415,533,273.88 107,254,558.54
2. Employee welfare 14,567,159.40 13,276,948.87 1,290,210.53
3. Social insurance
premiums 256,104.91 15,721,603.81 15,607,522.05 370,186.67
Including: Medical
insurance 234,279.48 14,007,452.79 13,945,675.82 296,056.45
Employment
injury insurance 20,215.91 1,363,428.97 1,321,409.84 62,235.04
Maternity
insurance 1,609.52 350,722.05 340,436.39 11,895.18
4. Housing provident
fund 429,409.73 11,114,941.91 11,030,732.38 513,619.26
5. Labor union fee and
staff education fee 270,949.09 1,991,849.83 1,401,701.27 861,097.65
Total 139,212,737.55 427,927,113.55 456,850,178.45 110,289,672.65
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C&S Paper Co., Ltd. Semi-annual Report 2022
(3) List of defined contribution plans
Unit: RMB
Balance at the beginning Increase in the current Decrease in the current Balance at the end of the
Item
of the period period period period
1. Basic endowment
insurance 327,176.38 30,654,039.68 29,938,280.28 1,042,935.78
2. Unemployment
insurance 11,492.53 1,073,313.16 1,059,714.64 25,091.05
Total 338,668.91 31,727,352.84 30,997,994.92 1,068,026.83
Other description:
There was no delinquency of employee remuneration payable by the Company at the end of the reporting period.
40. Tax and fees payable
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Value-added tax 49,478,642.01 47,434,141.38
Corporate income tax 37,457,828.44 47,999,180.89
Individual income tax 2,265,118.56 2,282,034.20
City construction and maintenance tax 2,592,769.36 3,157,814.56
Property tax 3,980,623.40 1,479,897.22
Education surcharges 1,282,401.82 1,525,822.40
Local education surcharges 854,934.55 1,017,214.96
Land use tax 753,890.91 845,611.47
Stamp tax 877,618.20 794,985.81
Security fund for the disabled 955,996.43 380,114.13
Environmental protection tax 164,953.40 183,923.63
Resource tax 135,536.79 84,070.32
Land value-added tax 2,804,835.30
Total 103,605,149.17 107,184,810.97
Other description: None
41. Other payables
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Dividend payable 457,998.40 1,352,746.20
Other payables 856,368,483.15 853,519,432.58
Total 856,826,481.55 854,872,178.78
(1) Interest payable: None
(2) Dividends payable: None
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Dividends for restricted shares 457,998.40 1,352,746.20
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C&S Paper Co., Ltd. Semi-annual Report 2022
Total 457,998.40 1,352,746.20
Other descriptions, including important dividends payable exceeding one year, and the reasons for non-payment that should be
disclosed: None
(3) Other payables
1) Other payables based on amount nature
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Unpaid fees 823,179,098.65 791,690,297.01
Margins and deposits 22,131,870.00 17,980,073.86
Repurchase obligation of restricted
8,452,878.24 33,312,589.40
shares
Authorized collection and payment of
individual income tax under the equity 345,306.18 8,360,156.40
incentive
Others 2,259,330.08 2,176,315.91
Total 856,368,483.15 853,519,432.58
2) Other important payables with aging exceeding one year
Unit: RMB
Item Balance at the end of the period Reason for unsettlement or not carry-over
1st 6,323,465.21 Not yet settled
Total 6,323,465.21 --
Other description: None
42. Liabilities held for sale: None
43. Non-current liabilities due within one year
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Lease liabilities due within one year 8,571,955.94 8,616,487.38
Total 8,571,955.94 8,616,487.38
Other description: None
44. Other current liabilities
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Tax pending changeover 6,802,339.11 21,250,613.29
Total 6,802,339.11 21,250,613.29
Other description: None
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C&S Paper Co., Ltd. Semi-annual Report 2022
45. Long-term borrowings: None
(1) List of long-term borrowings: None
46. Bonds payable
(1) Bonds payable: None
(2) Changes in the increase and decrease of the bonds payable (excluding other financial instruments
such as preference shares and perpetual bonds that are divided into financial liabilities): None
(3) Descriptions of the conditions for converting conditions and time of converting bonds: None
(4) Descriptions of other financial instruments that are divided into financial liabilities: None
47. Lease liabilities
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Properties and buildings 13,940,426.94 14,182,415.52
Lease liabilities due within one year -8,571,955.94 -8,616,487.38
Total 5,368,471.00 5,565,928.14
Other description: None
48. Long-term payables: None
(1) Long-term payables listed based on amount nature: None
(2) Special payables: None
49. Long-term employee remuneration payable
(1) Table of long-term employee remuneration payable: None
(2) Changes of the defined benefit plan: None
50. Projected liabilities: None
51. Deferred income
Unit: RMB
Balance at the
Increase in the Decrease in the Balance at the end of
Item beginning of the Reason
current period current period the period
period
Related to asset
Government grants 104,483,429.54 9,050,000.00 7,814,525.29 105,718,904.25
Government grants
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C&S Paper Co., Ltd. Semi-annual Report 2022
Total 104,483,429.54 9,050,000.00 7,814,525.29 105,718,904.25 --
Projects involving government grants:
Unit: RMB
Amount
Amount
Balance at Increased included in Amount of
included in
the amount of non- offset costs Balance at Related to
Liability other Other
beginning grants in operating in the the end of asset/incom
item income in changes
of the the current income in current the period e
the current
period period the current period
period
period
Subsidies
for the
infrastructu
re 29,464,497. 28,928,779. Related to
535,718.16
constructio 68 52 asset
n of new
factory in
Hubei
Support
funds for
the
constructio
19,627,205. 18,846,323. Related to
n of 780,882.36
86 50 asset
Automated
Storage &
Retrieval
System
Support
funds for
the
13,921,235. 1,125,711.2 12,795,523. Related to
transformat
17 4 93 asset
ion of
Phase I
project
Support
funds for
7,512,269.2 6,576,673.6 Related to
equipment 935,595.60
7 7 asset
of Phase II
project
Financial
support
funds for
constructio
n
expansion 6,827,805.9 6,515,082.0 Related to
312,723.90
of 25,000- 5 5 asset
ton high-
grade
household
paper
project
Subsidy
funds for
5,039,332.3 3,000,000.0 1,485,927.2 6,553,405.1 Related to
the smart
0 0 0 0 asset
factory
project
Ex-post
funds
awarded to
the first
3,446,992.7 3,129,699.3 Related to
batch of the 317,293.32
0 8 asset
union
enterprises
for
technical
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C&S Paper Co., Ltd. Semi-annual Report 2022
transformat
ion in 2017
Support
funds for
the
technical
2,839,945.0 2,447,743.3 Related to
transformat 392,201.70
4 4 asset
ion of
equipment
production
line
Support
funds for
the
constructio
2,713,492.1 2,553,968.3 Related to
n of 159,523.80
9 9 asset
environme
ntal
protection
facilities
Support
funds for
2,427,313.8 2,031,126.6 Related to
enterprise 396,187.14
2 8 asset
technical
upgrading
Discount
interest
2,245,718.7 2,148,781.2 Related to
funds for 96,937.50
5 5 asset
imported
equipment
Subsidies
for sewage 2,187,499.9 1,948,863.5 Related to
238,636.38
treatment 1 3 asset
station
Subsidies
for the
expansion
of the high-
grade
household 1,746,666.8 1,666,666.8 Related to
79,999.98
paper 7 9 asset
project
with an
annual
output of
25,000 tons
Special
funds for
capacity
expansion
of 25,000- 1,245,833.1 Related to
287,500.02 958,333.16
ton high- 8 asset
grade
household
paper
project
Subsidies
for
constructio
1,214,782.7 1,137,243.4 Related to
n of the 77,539.32
2 0 asset
water
treatment
project
Support
funds for Related to
850,500.00 60,750.00 789,750.00
sewage asset
centralized
148
C&S Paper Co., Ltd. Semi-annual Report 2022
water
treatment
project
Provincial
funds for
traditional Related to
803,571.46 53,571.42 750,000.04
industry asset
transformat
ion projects
Funds for
reconstructi
on project
Related to
of 368,766.67 368,766.67
asset
automatic
production
lines
Provincial-
level
special
subsidies 5,050,000.0 4,958,181.8 Related to
91,818.20
for high- 0 0 asset
quality
developme
nt
District-
level
support
1,000,000.0 Related to
funds for 17,241.38 982,758.62
0 asset
technical
transportati
on
104,483,42 9,050,000.0 7,814,525.2 105,718,90
Total
9.54 0 9 4.25
Other description: None
52. Other non-current liabilities: None
53. Share capital
Unit: RMB
Increase and decrease of this change (+ and -)
Balance at the Shares Balance at the
beginning of the Issuance of Bonus transferred
Others Subtotal end of the period
period new shares shares from surplus
reserve
Total number
of shares 1,312,457,555.00 1,324,358.00 1,324,358.00 1,313,781,913.00
Other description:
According to the Proposal on Achieving the Exercise Conditions of the Second Exercise Period for Stock Options
Awarded in the First Grant under the Company’s 2018 Stock Option and Restricted Stock Incentive Plan
approved at the 6th meeting of the fifth session of the Board of Directors, the number of stock options that had
met exercise conditions was 2,948,559 and the number of incentive recipients in conformity with the exercise
conditions reached 2,274. The exercise period was from June 30, 2021 to February 28, 2022. According to the
Proposal on Achieving the Exercise Conditions of the Second Exercise Period for Reserved Stock Options under
the Company’s 2018 Stock Option and Restricted Stock Incentive Plan approved at the 12th meeting of the fifth
149
C&S Paper Co., Ltd. Semi-annual Report 2022
session of the Board of Directors, the number of stock options that have met exercise conditions was 609,375 and
the number of incentive recipients in conformity with the exercise conditions reached 70. The exercise period is
from December 14, 2021 to September 9, 2022. As of June 30, 2022, the incentive recipients who had met the
above exercise conditions have successively begun to exercise their rights, and a total of 3,068,271 shares have
been subscribed, of which 398,538 shares were subscribed in the first half year of 2022.
According to the Proposal on Achieving the Exercise Conditions of the Third Exercise Period for Stock Options
Awarded in the First Grant under the Company’s 2018 Stock Option and Restricted Stock Incentive Plan
approved at the 14th meeting of the fifth session of the Board of Directors, the number of stock options that had
met exercise conditions was 3,314,312 and the number of incentive recipients in conformity with the exercise
conditions reached 2,000. The exercise period was from June 29, 2022 to March 3, 2023. As of June 30, 2022, all
the incentive recipients who had met the above exercise conditions have exercise their rights, and a total of
925,820 shares have been subscribed.
54. Other equity instruments
(1) Basic information on other financial instruments in issue at the end of the reporting period, such as
the preference shares and perpetual bonds: None
(2) Table of changes in other financial instruments in issue at the end of the reporting period, such as the
preference shares and perpetual bonds: None
55. Capital reserve
Unit: RMB
Balance at the beginning Increase in the current Decrease in the current Balance at the end of the
Item
of the period period period period
Capital premium (share 650,391,444.26 13,460,603.24 663,852,047.50
premium)
Other capital reserve 290,351,241.93 2,691,873.06 8,399,534.85 284,643,580.14
Total 940,742,686.19 16,152,476.30 8,399,534.85 948,495,627.64
Other descriptions, including increase/decrease in the reporting period and reasons of change:
(1) The exercise of stock options awarded in the first grant and the exercise of reserved stock options as per the
2018 Stock Option and Restricted Stock Incentive Plan increased “capital reserve-share premium” by
RMB13,460,603.24 and decreased “capital reserve-other capital reserve” by RMB 3,504,124.40.
(2) The Company set aside provision for equity incentive costs and fees in the reporting period and RMB
2,691,873.06 was included in “capital reserve - other capital reserve”. Difference between the deductible amount
before tax under the 2018 Stock Option and Restricted Stock Incentive Plan and recognized book expense was
adjusted as deferred income tax asset and RMB 4,895,410.45 was included in “capital reserve - other capital
reserve”.
56. Treasury shares
Unit: RMB
Balance at the beginning Increase in the current Decrease in the current Balance at the end of the
Item
of the period period period period
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C&S Paper Co., Ltd. Semi-annual Report 2022
Restricted shares 33,312,589.40 894,747.80 25,754,458.96 8,452,878.24
Ordinary shares 688,930,693.99 688,930,693.99
Total 722,243,283.39 894,747.80 25,754,458.96 697,383,572.23
Other descriptions, including increase/decrease in the reporting period and reasons of change:
Notes: (1) The third unlock period unlocked 5,947,91 shares of first-grant stock options at RMB4.33/share under
the 2018 Stock Option and Restricted Stock Incentive Plan. Totally RMB 25,754,458.96 was included in the
decrease of the current period; the withdrawable cash dividend of RMB 894,747.80 was included in the increase
of the current period.
57. Other comprehensive income: None
58. Special reserves: None
59. Surplus reserve
Unit: RMB
Balance at the beginning Increase in the current Decrease in the current Balance at the end of the
Item
of the period period period period
Statutory surplus reserve 106,984,275.42 106,984,275.42
Total 106,984,275.42 106,984,275.42
Explanation of surplus reserves, including increase/decrease in the reporting period and reasons of change:
None
60. Retained earnings
Unit: RMB
Item Current period Last period
Retained earnings before adjustment at the end of
the last period 3,265,611,428.36 2,858,664,147.39
Retained earnings at the beginning of the period
after adjustment 3,265,611,428.36 2,858,664,147.39
Plus: Net profit attributable to owners of the
parent company of the current period 227,639,705.35 407,161,317.15
Dividends on ordinary shares payable 128,609,710.60 128,751,529.41
Retained earnings at the end of the period 3,364,641,423.11 3,137,073,935.13
Details on adjusting retained earnings at the beginning of the period:
(1) As a result of retrospective adjustments according to the Accounting Standards for Business Enterprises and
its related new provisions, the impact on retained earnings at the beginning of the period was RMB0.00.
(2) Due to the changes in accounting policies, the impact on retained earnings at the beginning of the period was
RMB0.00.
(3) Due to the correction of material accounting errors, the impact on retained earnings at the beginning of the
period was RMB0.00.
(4) Due to the changes in the scope of combination caused by the same control, the impact on retained earnings
151
C&S Paper Co., Ltd. Semi-annual Report 2022
at the beginning of the period was RMB0.00.
(5) Other adjustments affected retained earnings at the beginning of the period by a total of RMB0.00.
61. Operating income and operating cost
Unit: RMB
Incurred in the current period Incurred in the prior period
Item
Income Cost Income Cost
Principal business 4,293,872,244.04 2,862,695,454.50 4,123,177,610.49 2,462,562,811.28
Other businesses 73,745,869.57 66,618,151.55 124,464,225.89 99,681,354.93
Total 4,367,618,113.61 2,929,313,606.05 4,247,641,836.38 2,562,244,166.21
Information related to income:
Unit: RMB
Contract classification Branch 1 Branch 2 Total
By product type 4,367,618,113.61 4,367,618,113.61
Including:
Household paper 4,265,944,826.39 4,265,944,826.39
Personal care 27,927,417.65 27,927,417.65
Others 73,745,869.57 73,745,869.57
By operating region 4,367,618,113.61 4,367,618,113.61
Including:
Domestic 4,269,777,280.85 4,269,777,280.85
Abroad 97,840,832.76 97,840,832.76
By market or customer
type
Including:
Contract type
Including:
By the time of goods
transfer
Including:
By contract term
Including:
By sales channel 4,367,618,113.61 4,367,618,113.61
Including:
Traditional 2,173,015,039.52 2,173,015,039.52
Non-traditional 2,120,857,204.52 2,120,857,204.52
Others 73,745,869.57 73,745,869.57
Total 4,367,618,113.61 4,367,618,113.61
Information related to performance obligation: None
Information related to the transaction price apportioned to the remaining performance obligation:
152
C&S Paper Co., Ltd. Semi-annual Report 2022
The amount of income corresponding to the obligations of contract performance with an executed contract that is not performed or
fully performed at the end of the reporting period is RMB 18,339,223.74, of which the income of RMB 18,339,223.74 is expected
to be confirmed as income in the year of 2022.
Other description: None
62. Tax and surcharges
Unit: RMB
Item Incurred in the current period Incurred in the prior period
City construction and maintenance tax 10,114,833.70 10,406,083.91
Education surcharges 4,692,198.88 4,922,998.46
Resource tax 59,687.49 55,344.16
Property tax 5,340,991.61 5,361,355.73
Land use tax 1,177,751.78 1,364,954.29
Vehicle and vessel tax 5,030.00 9,030.00
Stamp tax 3,793,856.69 3,544,054.89
Local education surcharges 3,128,132.57 3,281,999.30
Environmental protection tax 492,278.28 305,183.69
Total 28,804,761.00 29,251,004.43
Other description: None
63. Selling expenses
Unit: RMB
Item Incurred in the current period Incurred in the prior period
Employee remuneration 215,826,656.37 188,440,219.32
Advertising expenses 78,819,182.16 136,856,089.50
Product promotion fees 478,680,276.28 486,488,574.50
Shopping mall management fees 41,890,271.35 42,603,638.54
Transportation expenses 38,605,993.98 44,766,089.36
Traveling expenses 9,946,888.53 9,543,610.64
Business entertainment expenses 1,735,211.16 899,984.09
Rental fees 4,118,619.21 3,629,055.21
Depreciation of use right assets 1,613,750.38 650,033.82
Others 2,803,713.93 1,601,356.74
Total 874,040,563.35 915,478,651.72
Other description: None
64. Administrative expenses
Unit: RMB
Item Incurred in the current period Incurred in the prior period
Employee remuneration 80,051,121.32 74,061,162.35
Equity incentive cost 2,691,873.06 12,167,835.66
Depreciation and amortization fees 39,110,201.78 34,639,880.19
Office allowance 14,202,117.04 12,660,998.77
Consulting service fees 9,814,899.14 8,688,604.92
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C&S Paper Co., Ltd. Semi-annual Report 2022
Outsourcing warehouse management fees 14,769,362.63 8,791,106.82
Business entertainment expenses 3,161,028.12 2,582,730.40
Traveling expenses 1,093,846.41 950,329.72
Environmental protection fees 1,482,429.20 1,244,274.84
Rental fees 1,917,577.82 2,504,088.00
Depreciation of use right assets 5,039,222.82 1,175,102.64
Others 6,842,755.06 5,733,964.07
Total 180,176,434.40 165,200,078.38
Other description: None
65. R&D expenses
Unit: RMB
Item Incurred in the current period Incurred in the prior period
Employee remuneration 18,993,635.08 18,956,073.80
Direct investment 72,375,500.71 62,873,043.34
Depreciation and amortization fees 12,333,210.15 13,685,779.13
Others 1,479,941.67 1,899,916.05
Total 105,182,287.61 97,414,812.32
Other description: None
66. Finance expenses
Unit: RMB
Item Incurred in the current period Incurred in the prior period
Interest fees 1,730,495.87 975,546.01
Less: Interest income 5,594,433.94 6,623,270.61
Exchange profit and loss 282,584.01 1,346,250.22
Add:Transaction fee and others 2,114,303.84 2,498,330.34
Total -1,467,050.22 -1,803,144.04
Other description: None
67. Other income
Unit: RMB
Sources of other income Incurred in the current period Incurred in the prior period
Refund of individual income tax 1,478,746.93 1,137,762.21
Subsidies for provincial new-generation IT and industrial 1,980,000.00
development projects in 2022
Subsidy funds for the smart factory project 1,485,927.20 585,657.16
Subsidies for internship, employment, job stabilization and 1,266,892.81 489,780.86
training
Support funds for the transformation of Phase I project 1,125,711.24 1,125,711.24
Support funds for equipment of Phase II project 935,595.60 985,624.08
Support funds for the construction of Automated Storage & 780,882.36 780,882.36
Retrieval System
Subsidies for Hubei C&S’s new factory infrastructure 535,718.16 535,718.16
construction
154
C&S Paper Co., Ltd. Semi-annual Report 2022
Automatic payment of Xinhui District for enterprise awards under 500,000.00
the “Ten Golden Rules” 2021
Support funds for enterprise technical upgrading 396,187.14 396,187.14
Support funds for the technical transformation of equipment 392,201.70 403,311.72
Funds for reconstruction project of automatic production lines 368,766.67 510,600.00
Ex-post funds awarded to the first batch of the union enterprises 317,293.32 317,293.32
for the technical transformation in 2017
2013-2017 financial support funds of the Management Committee 312,723.90 312,723.90
of Pengzhou Industrial Development Zone, Sichuan Province
25,000 tons capacity expansion project of Tangshan Subsidiary 287,500.02 287,500.02
Financial support for the sewage treatment station project of 238,636.38 238,636.38
Tangshan Subsidiary
Tax contribution reward 200,000.00 100,000.00
One-time job retention subsidy from the employee unemployment 185,000.00
insurance fund
Support funds for the construction of environmental protection 159,523.80 159,523.80
facilities
Industrial comprehensive policy fulfillment fund 2020; Special 150,000.00
subsidy for high-tech enterprise identification 2020
Import interest discounts on imported equipment in 2014 96,937.50 96,937.50
Provincial-level special subsidies for high-quality development 91,818.20
Import interest discounts on imported equipment in 2014 82,871.51 31,604.66
Special subsidy for the construction expansion of the 25,000-ton 79,999.98 79,999.98
household paper project
Subsidies for construction of the water treatment project 77,539.32 77,539.32
VAT exemption for employment of retired soldiers and poor 73,950.00 411,700.00
population
Financial support for sewage centralized water treatment project 60,750.00 60,750.00
Provincial funds for traditional industry transformation projects 53,571.42 53,571.42
Rewards for creation of odor-free enterprise 41,834.86 62,752.29
Industrial comprehensive policy fulfillment fund 2020; Special 30,000.00
subsidy for high-tech enterprise identification 2020
District-level support funds for technical transportation 17,241.38
Project fund (first batch) from the foreign trade high-quality and 10,000.00
innovative development fund
Subsidies for employees’ training while working 4,000.00
Energy review fee from the reform and development department's 1,500.00
special business fee
Unemployment dynamic monitoring subsidy 600.00
Subsidies for R&D, famous-brand and high-quality products, and 1,020,000.00
income/efficiency increase
Subsidies for renovation 700,000.00
Technical demonstration subsidies for water intake points 280,000.00
Special award funds for the restructuring of industrial enterprises 210,900.00
Subsidies for job creation for the poor 97,995.00
Financial rewards for cleaner production transformation 50,000.00
Enterprise support funds 50,000.00
Subsidies for encouraging scaled development of enterprises 20,000.00
Subsidies for supporting enterprises to expand import and export 700.00
scale
Total 13,819,921.40 11,671,362.52
68. Return on investment
Unit: RMB
155
C&S Paper Co., Ltd. Semi-annual Report 2022
Item Incurred in the current period Incurred in the prior period
Others 183,493.42 358,473.15
Total 183,493.42 358,473.15
Other description:
"Others" refer to returns on principal-protected wealth management products at maturity and reverse repo of treasury bonds of the
Company.
69. Profit of net exposure hedging: None
70. Income from changes in fair value
Unit: RMB
Sources of income from changes in fair
Incurred in the current period Incurred in the prior period
value
Stock -2,538.48
Total -2,538.48
Other description:None
71. Credit impairment loss
Unit: RMB
Item Incurred in the current period Incurred in the prior period
Bad debt loss from other receivables -691,163.04 -464,824.58
Bad debt loss from accounts receivable 2,524,456.58 1,766,431.51
Total 1,833,293.54 1,301,606.93
Other description: None
72. Asset impairment loss
Unit: RMB
Item Incurred in the current period Incurred in the prior period
II. Impairment Loss of Inventories and
Contract Performance Cost -1,026,689.87 -468,530.30
V. Impairment Loss of Fixed Assets -2,285,297.81
Total -1,026,689.87 -2,753,828.11
Other description: None
73. Return on disposal of assets
Unit: RMB
Source Incurred in the current period Incurred in the prior period
Disposal of fixed assets -1,085,279.69 -259,896.46
Total -1,085,279.69 -259,896.46
156
C&S Paper Co., Ltd. Semi-annual Report 2022
74. Non-operating income
Unit: RMB
Amount recognized as
Incurred in the current Incurred in the prior
Item profit or loss of the
period period
current period
Government grants 10,000.00 23,000.00 10,000.00
Profit from damage and
retirement of non-current 561.25 98,166.07 561.25
assets
Including: Fixed assets 561.25 98,166.07 561.25
Income from fine and
1,038,029.70 907,005.44 1,038,029.70
compensation
Others 866,146.19 680,195.03 866,146.19
Total 1,914,737.14 1,708,366.54 1,914,737.14
Government grants recognized as profit and loss of the current period:
Unit: RMB
Whether
the grant Amount Amount
Whether a Related to
Nature and affected the incurred in incurred in
Grants Issuer Reason special asset/incom
type profit and the current the last
grant e
loss of the period period
year
Grants
Municipal received
party for the
Party performanc
building
Building e of the
funds for State’s
Work
demonstrati function of
Office of
ve new ensuring Related to
Xiaolan Grant No No 10,000.00
economic the supply income
Town or price
organizatio
Committee, control of a
ns and new
Zhongshan public
social utility or
City
organizatio socially
ns necessary
product
Grants
received
for the
People's performanc
Rewards
Governmen e of the
for State’s
t of
advanced function of
Shuangshui
party ensuring Related to
Town, Grant No No 2,000.00
organizatio the supply income
Xinhui or price
ns and
District, control of a
individuals
Jiangmen public
2020 utility or
City
socially
necessary
product
Subsidies Human Grants
for Resources received
for the Related to
enterprises’ and Social Grant No No 21,000.00
performanc income
employee Security e of the
training on Bureau of State’s
157
C&S Paper Co., Ltd. Semi-annual Report 2022
job Yunfu City function of
adaptation ensuring
the supply
or price
control of a
public
utility or
socially
necessary
product
Total 10,000.00 23,000.00
Other description: None
75. Non-operating expenses
Unit: RMB
Amount recognized as profit or
Item Incurred in the current period Incurred in the prior period
loss of the current period
External donations 4,397,406.24 1,760,851.30 4,397,406.24
Loss from damage and
retirement of non-current assets 1,238,583.11 725,313.88 1,238,583.11
Including: Fixed assets 1,238,583.11 725,313.88 1,238,583.11
Others 353,226.14 1,152,018.68 353,226.14
Total 5,989,215.49 3,638,183.86 5,989,215.49
Other description: None
76. Income tax expenses
(1) Table of income tax expenses
Unit: RMB
Item Incurred in the current period Incurred in the prior period
Current income tax expense 57,586,968.04 87,232,248.96
Deferred income tax expense -23,853,520.58 -6,132,728.24
Total 33,733,447.46 81,099,520.72
(2) Adjustment process of accounting profits and income tax expenses
Unit: RMB
Item Incurred in the current period
Total profit 261,215,233.39
Income tax expenses calculated at the statutory/applicable tax
rate 65,303,808.35
Impacts of different tax rates applied to subsidiaries -28,098,024.90
Impacts of adjustments to income taxes during the prior period -4,336,592.29
Impacts of non-deductible costs, expenses and losses 864,256.30
Income tax expenses 33,733,447.46
Other description: None
158
C&S Paper Co., Ltd. Semi-annual Report 2022
77. Other comprehensive income
Please refer to the notes for details.
78. Items of the cash flow statement
(1) Cash received related to other operating activities
Unit: RMB
Item Incurred in the current period Incurred in the prior period
Current accounts 25,466,487.76 10,003,853.92
Government grants 13,512,699.18 7,136,732.81
Interest income 5,595,579.89 6,623,270.61
Authorized collection of individual income
tax under the equity incentive 3,109,401.56 9,395,040.46
Others 4,425,363.57 5,203,778.87
Total 52,109,531.96 38,362,676.67
Explanation of cash received related to other operating activities: None
(2) Cash payments related to other operating activities
Unit: RMB
Item Incurred in the current period Incurred in the prior period
Expenses paid 451,722,872.22 409,369,512.68
Current accounts 7,036,365.56 6,431,125.10
Authorized payment of individual income
tax under the equity incentive 12,239,910.53 10,715,472.44
Others 187,497.98 1,126,549.69
Total 471,186,646.29 427,642,659.91
Explanation of cash paid related to other operating activities: None
(3) Cash received related to other investing activities
Unit: RMB
Item Incurred in the current period Incurred in the prior period
Principal repayment on maturity of
41,239,541.68 50,000,000.00
wealth management products
Total 41,239,541.68 50,000,000.00
Explanation of cash received related to other investment activities: None
(4) Cash payments related to other investing activities
Unit: RMB
Item Incurred in the current period Incurred in the prior period
Purchasing large-denomination Certificate
of Deposit 140,000,000.00
159
C&S Paper Co., Ltd. Semi-annual Report 2022
Total 140,000,000.00
Explanation of cash paid related to other investment activities: None
(5) Cash received related to other financing activities：None
(6) Cash payments related to other financing activities
Unit: RMB
Item Incurred in the current period Incurred in the prior period
Repurchase and deregistration of equity
8,752,250.65
incentives
Share repurchase 532,605,631.91
Deposits of security deposits for bills,
58,359,813.97 12,315,870.82
letters of guarantee and letters of credit
Cash paid for lease liabilities 4,878,971.53 1,023,913.33
Total 63,238,785.50 554,697,666.71
Explanation of cash paid related to other financing activities: None
79. Supplementary information to cash flow statement
(1) Supplementary information to cash flow statement
Unit: RMB
Supplementary information Amount of the current period Amount of last period
1 Reconciliation of net profit to cash
flows from operating activities:
Net Profit 227,481,785.93 407,144,647.35
Plus: Provisions for asset
-806,603.67 1,452,221.18
impairment
Depreciation of fixed assets,
oil and gas assets and productive 187,248,981.01 163,103,078.23
biological assets
Depreciation of use right assets 6,768,952.23 2,181,245.94
Intangible asset amortization 3,769,673.22 3,326,149.16
Long-term unamortized
6,623,087.00 5,792,540.92
expenses
Losses from disposal of fixed
assets, intangible assets and other long- 1,085,279.69 259,896.46
term assets ("-" indicates income)
Losses from fixed assets write-
1,238,021.86 627,147.81
off ("-" indicates income)
Losses from changes in fair
2,538.48
value ("-" indicates income)
Finance expenses ("-" indicates
-10,649,367.10 4,730,497.09
income)
Investment losses ("-" indicates
-183,493.42 -358,473.15
income)
Decrease in deferred income
-23,688,607.42 -17,332,968.85
tax assets ("-" indicates increase)
Increase in deferred income tax
-164,913.16 11,200,240.61
liabilities ("-" indicates decrease)
Decrease in inventories ("-"
273,929,611.30 36,965,050.50
indicates increase)
Decrease in operating
-99,226,492.95 78,196,966.06
receivables ("-" indicates increase)
160
C&S Paper Co., Ltd. Semi-annual Report 2022
Increase in operating payables
126,121,272.75 40,577,548.88
("-" indicates decrease)
Others
Net cash flow from operating
699,549,725.75 737,865,788.19
activities
2 Significant investment and financing
activities not involving cash:
Conversion of debt to capital
Convertible corporate bonds due
within one year
Fixed assets acquired under finance
lease
3 Net changes in cash and cash
equivalents:
Balance of cash at the end of the
1,315,175,165.01 701,224,202.33
period
Less: Balance of cash at the
797,797,675.70 1,050,034,135.72
beginning of the period
Plus: Balance of cash equivalents at
the end of the period
Less: Balance of cash equivalents at
the beginning of the period
Net increase in cash and cash
517,377,489.31 -348,809,933.39
equivalents
(2) Net cash paid to acquire subsidiaries during the period: None
(3) Net cash received from the disposal of subsidiaries during the period
(4) Constitution of cash and cash equivalents
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
I. Cash 1,315,175,165.01 797,797,675.70
Including: Cash on hand 36,546.14 46,249.83
Bank deposits always available for
payment 1,305,947,107.81 795,982,835.01
Other monetary funds always
available for payment 9,191,511.06 1,768,590.86
III. Balance of Cash and Cash Equivalents at
the End of the Period 1,315,175,165.01 797,797,675.70
Other description: None
80. Notes to items in the statement of changes in owner’s equity
Description on the name and amount of items under "Others" whose closing balance in last year was adjusted and other relevant
issues: None
81. Assets with restricted right to use or ownership
Unit: RMB
Item Book value at the end of the period Reason for restriction
Other monetary funds 135,614,631.39 Security deposits for issuing letter of credit
161
C&S Paper Co., Ltd. Semi-annual Report 2022
and notes
Total 135,614,631.39 --
Other description: None
82. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Balance of foreign currency at Balance of converted RMB at
Item Conversion rate
the end of the period the end of the period
Monetary funds 445,710,687.22
Including: USD 64,466,516.30 6.7109 432,628,344.24
EUR
HKD 15,297,359.07 0.8552 13,082,301.48
Mop 50.00 0.8300 41.50
Accounts receivable 34,042,608.98
Including: USD 190,427.45 6.7109 1,277,939.57
EUR
HKD 38,312,288.83 0.8552 32,764,669.41
Long-term borrowings -- --
Including: USD
EUR
HKD
Other receivables 240,687.40
Including: HKD 281,439.90 0.8552 240,687.40
Accounts payable 392,957,752.59
Including: USD 58,353,748.17 6.7109 391,606,168.59
JPY 27,360,000.00 0.0494 1,351,584.00
Other payables 4,584,852.07
Including: HKD 5,361,146.01 0.8552 4,584,852.07
Other description: None
(2) For overseas business entities, especially important ones, disclose their main overseas business address,
the standard currency for accounting and selection basis. If there are changes in the standard currency
for accounting, reasons shall be also provided.
√ Applicable □ Not applicable
Overseas business entity Business address Standard currency for
accounting
Zhong Shun International Co., Ltd. Hong Kong RMB
C&S Hong Kong Co., Ltd. Hong Kong RMB
C&S (Macao) Co., Ltd. Macao RMB
162
C&S Paper Co., Ltd. Semi-annual Report 2022
83. Hedges
Disclosure of hedged items and related hedging instruments and qualitative and quantitative information about hedged risks
according to the type of hedging: None
84. Government grants
(1) Basic information on government grants
Unit: RMB
Amount recognized as profit or
Category Amount Reporting items
loss for the current period
Related to asset 9,050,000.00 Deferred income, other income 386,157.12
Related to income 4,526,649.18 Other income 4,526,649.18
Related to income 10,000.00 Non-operating income 10,000.00
Total 13,586,649.18 4,922,806.30
(2) Return of government grants
□ Applicable √ Not applicable
Other description:
Please refer to Note VII (51), (67) and (74) for details.
85. Others: None
VIII. Changes in the Consolidated Scope
1. Business combinations of enterprises not under common control
(1) Business combinations of enterprises not under common control in the reporting period: None
(2) Combination costs and goodwill: None
(3) Acquiree’s identifiable assets and liabilities on the acquisition date: None
(4) Profit or loss arising from the recalculation based on fair value of equities held before the acquisition
date
Whether there are transactions through which business combination is achieved in stages while control is
obtained within the reporting period
□ Yes √ No
163
C&S Paper Co., Ltd. Semi-annual Report 2022
(5) Descriptions of being unable to determine the consideration or the fair value of acquiree’s identifiable
assets and liabilities on the acquisition date or at the end of the current period of combination: None
(6) Other description: None
2. Business combinations of enterprises under common control
(1) Business combinations of enterprises under common control in the current period: None
(2) Combination costs: None
(3) Book value of assets and liabilities of the combined party on the date of combination: None
3. Reverse purchase: None
4. Disposal of subsidiaries
Whether there is situation that one disposal of investment in a subsidiary results in a loss of control
□ Yes √ No
Whether there is situation that the disposal of investment in a subsidiary is achieved in stages through multiple
transactions while the control is lost in the reporting period
□ Yes √ No
5. Changes in the scope of consolidation due to other reasons
Description of changes in the scope of combination due to other reasons (establishment or liquidation of
subsidiaries, etc.) and related situations:
On May 20, 2022, the Company and its wholly-owned subsidiary Zhongshan Zhongshun Trading Co., Ltd.
jointly invested and established Zhongshun Healthy Life Technology (Shenzhen) Co., Ltd. with a registered
capital of RMB10 million. The Company holds 60% of the shares while Zhongshan Zhongshun Trading holds
40% of the shares. The Company has incorporated Zhongshun Healthy Life Technology (Shenzhen) Co., Ltd.
into the scope of its consolidated statements since June 2022. Currently, the new subsidiary has not started
operating activities.
6. Others: None
IX. Equities in Other Entities
1. Equities in subsidiaries
(1) Composition of the enterprise group
Shareholding
Name of Main business Registered percentage Obtaining
Principal businesses
subsidiary address address method
Direct Indirect
164
C&S Paper Co., Ltd. Semi-annual Report 2022
R&D, production, and sales (including online sales):
household paper, maternal and infant products,
cosmetics, wipes, non-woven products, daily
Capital
Jiangmen necessities, and cleaning supplies; sales (including
contributio
Zhongshun Jiangmen, Jiangmen, online sales) of Class I and II medical devices. (The
88.25% 11.75% n for
Paper Co., Guangdong Guangdong above items do not involve special management
establishme
Ltd. measures for the foreign access). (For items that must
nt
be approved in accordance with the law, the company
may carry out business operations upon approval by
competent departments.)
General items: manufacture of paper products; sales
of paper products; sales of paper pulp; sales of
personal hygiene products; sales of hygiene products
and disposable medical products; sales of
disinfectants (excluding hazardous chemicals); sales
of Class I medical devices; retail of Class I medical
devices; sales of Class II medical devices; retail of
class II medical devices; wholesale of medical face
masks; retail of medical face masks; sales of general
merchandise; retail of daily necessities; sales of
maternal and infant products; wholesale of Capital
Zhejiang
kitchenware, sanitary ware and daily sundries; contributio
Zhongshun Jiaxing, Jiaxing,
wholesale of cosmetics; retail of cosmetics; wholesale 75.00% 25.00% n for
Paper Co., Zhejiang Zhejiang
of needle textiles and raw materials; sales of needle establishme
Ltd.
textiles; sales of chemical industry products nt
(excluding chemical products that need to be
licensed); Internet sales (excluding the sales of
commodities requiring a permit) (The company may
carry out business operations independently
according to the law based on the business license,
except for items that must be licensed according to
the law.) (For items that must be approved in
accordance with the law, the company may carry out
business operations upon approval by competent
departments.)
Capital
C&S Hong contributio
Kong Co., Hong Kong Hong Kong Purchase of pulp 100.00% n for
Ltd. establishme
nt
R&D, production, wholesale, retail and online sales:
household paper, sanitary products, maternal and
infant products, daily necessities, cosmetics, medical
devices, sanitary materials, non-woven fabrics and
products, polymer materials and products, daily
sundries, and disinfectant products (excluding
Capital
hazardous chemicals); wholesale, retail and online
C&S (Yunfu) contributio
Yunfu, Yunfu, sales: food; import and export of goods and
Paper Co., 100.00% n for
Guangdong Guangdong technologies (excluding the import and export of
Ltd. establishme
goods and technologies prohibited by the State or
nt
involving administrative approval); warehousing
services (limited to warehouses qualified in fire
protection without hazardous chemicals). (For items
that must be approved in accordance with the law, the
company may carry out business operations upon
approval by competent departments.)
Wholesale, retain and online sales: paper, wood pulp,
sanitary products, maternal and infant products,
cosmetics, daily necessities, medical equipment, daily Capital
Yunfu Hengtai sundries, disinfection supplies (excluding dangerous contributio
Yunfu, Yunfu,
Trading Co., 100.00% n for
Guangdong Guangdong chemicals); import and export of goods or
Ltd. technologies (excluding the import and export of establishme
goods and technologies prohibited by the State or nt
involving administrative approval). (For items that
must be approved in accordance with the law, the
165
C&S Paper Co., Ltd. Semi-annual Report 2022
company may carry out business operations upon
approval by competent departments.)
Capital
contributio
C&S (Macao)
Macao Macao Wholesale, trade 100.00% n for
Co., Ltd.
establishme
nt
Wholesale, retail and online sales (sales only on third-
party platforms) of paper supplies, paper products
(excluding printing products), wood pulp, general
merchandise, hygiene products, cosmetics, nonwoven
products, chemical products for daily use, Class I
medical devices and food; warehousing (excluding
Business
hazardous chemicals and precursor chemicals);
combinatio
import and export of goods and technologies;
Zhongshan ns
operations of Class II and Class III medical devices.
Zhongshun Zhongshan, Zhongshan, involving
(The above business scope involves food operations, 100.00%
Trading Co., Guangdong Guangdong enterprises
import and export of goods, and import and export of
Ltd. under
technologies.) (Exclude items prohibited by laws and
common
administrative regulations; items whose operations
control
are restricted by laws and administrative regulations
shall not be carried out unless the permit has been
obtained.) (For items that must be approved in
accordance with the law, the company may carry out
business operations upon approval by competent
departments.)
Business
Import, export and sales of paper products, general
combinatio
merchandise and pulp boards; sales of cosmetics,
ns
Xiaogan C&S shower gel and sanitary pads; sales of baby products
Xiaogan, Xiaogan, involving
Trading Co., (excluding food). (For items that must be approved in 100.00%
Hubei Hubei enterprises
Ltd. accordance with the law, the company may carry out
under
business operations upon approval by competent
common
departments.)
control
Sales of paper products, daily necessities, paper pulp,
and pulp boards; import and export of goods. (The
Business
company may independently select business items
combinatio
and carry out business activities in accordance with
ns
Beijing C&S the law; for items that must be approved in
involving
Paper Co., Beijing Beijing accordance with the law, the company may carry out 100.00%
enterprises
Ltd. business operations upon approval by competent
under
departments based on contents of the approval; it is
common
prohibited to engage in business activities of items
control
prohibited and restricted by the city’s industrial
policies.)
Sales of household paper, cleaning products, general
merchandise, hygiene products, baby products, Business
cosmetics, nonwoven products, feminine hygiene combinatio
Chengdu products, chemical products for daily use, daily ns
Zhongshun Pengzhou, Pengzhou, necessities, medical devices, medical supplies and involving
100.00%
Paper Co., Sichuan Sichuan disinfectant products (excluding hazardous enterprises
Ltd. chemicals); e-commerce [For items that must be under
approved in accordance with the law, the company common
may carry out business operations upon approval by control
competent departments.]
Wholesale, retail: paper products, paper pulp, general Business
merchandise; import and export of goods and combinatio
technologies (exclude items prohibited by laws and ns
Hangzhou Jie administrative regulations; items whose operations
Hangzhou, Hangzhou, involving
Rou Trading are restricted by laws and administrative regulations 100.00%
Zhejiang Zhejiang enterprises
Co., Ltd. shall not be carried out unless the permit has been under
obtained); other legitimate items that do not need common
approval according to the law) (for items that must be control
approved in accordance with the law, the company
166
C&S Paper Co., Ltd. Semi-annual Report 2022
may carry out business operations upon approval by
competent departments)
Business
combinatio
Household paper, paper pulp, pulp boards, import and
ns
Shanghai export of goods and technologies. (For items that
involving
Huicong Paper Shanghai Shanghai must be approved in accordance with the law, the 100.00%
enterprises
Co., Ltd. company may carry out business operations upon
under
approval by competent departments.)
common
control
Licensed items: production of sanitary products and
disposable medical supplies; production of cosmetics
(for items that must be approved in accordance with
the law, companies may carry out business operations
upon approval by relevant departments, and the
specific business items are subject to the approval
document or the permit issued by competent
department). General items: sales of sanitary products
and disposable medical supplies; retail of cosmetics;
Business
wholesale of cosmetics; manufacture of paper; sales
combinatio
of personal hygiene products; sales of knitwear;
ns
C&S (Hubei) manufacture of maternal and infant products; sales of
Xiaogan, Xiaogan, involving
Paper Co., maternal and infant products; sales of paper products; 93.375% 6.625%
Hubei Hubei enterprises
Ltd. manufacture of paper products; sales of daily
under
necessities; sales of daily chemical products; sales of
common
disinfectants (excluding hazardous chemicals);
control
Internet sales (excluding the sales of commodities
requiring a permit); sales of Class I medical devices;
sales of Class II medical devices; import and export
of goods and technologies (excluding the import and
export of goods and technologies prohibited by the
State or involving administrative approval). (For
items that must be approved in accordance with the
law, the company may carry out business operations
upon approval by competent departments.)
Business
combinatio
ns
Zhong Shun
Hong Kong, Hong Kong, involving
International Sales of paper products 100.00%
China China enterprises
Co., Ltd.
under
common
control
Licensed items: production of sanitary products and
disposable medical supplies; import and export of
goods (for items that must be approved in accordance
with the law, the company may carry out business
operations upon approval by competent departments,
and the specific business items are subject to the
approval document or the permit issued by relevant
department). General items: sales of sanitary products Business
and disposable medical supplies; sales of personal combinatio
C&S hygiene products; sales of daily necessities; ns
(Sichuan) Pengzhou, Pengzhou, manufacture of paper products; sales of paper involving
100.00%
Paper Co., Sichuan Sichuan products; manufacture of paper; manufacture of daily enterprises
Ltd. chemical products; sales of daily chemical products; under
sales of Class II medical devices; sales of Class I common
medical devices; manufacture of industrial textile control
products; sales of industrial textile products;
manufacture of maternal and infant products; sales of
maternal and infant products. (The company may
carry out business operations independently
according to the law based on the business license,
except for items that must be licensed according to
the law.)
167
C&S Paper Co., Ltd. Semi-annual Report 2022
Production, processing and sales: high-class
household paper products (excluding printing Business
process); import and export of pulp boards (exclude combinatio
C&S items prohibited by laws and administrative ns
(Zhongshan) Zhongshan, Zhongshan, regulations; items whose operations are restricted by involving
100.00%
Paper Co., Guangdong Guangdong laws and administrative regulations shall not be enterprises
Ltd. carried out unless the permit has been obtained). (For under
items that must be approved in accordance with the common
law, the company may carry out business operations control
upon approval by competent departments.)
R&D, production, processing, and sales (including
online sales): household paper, tissue boxes, hygiene
products, cosmetics, non-woven products, plastic
products, metalware, rubber products, ceramics, baby
products, feminine hygiene products and daily
necessities; bamboo and forest trees planting;
acquisition of raw materials of bamboo and wood for
paper making; R&D, production and sales of bamboo Capital
C&S
pulp, wood pulp, bamboo chips and wood chips; contributio
(Dazhou) Dazhou, Dazhou,
combined heat and power and sales; warehouse 100.00% n for
Paper Co., Sichuan Sichuan
leasing; processing and sales of lime and limestone; establishme
Ltd.
processing of industrial wastewater and gray water nt
reuse; general import and export business; sales of
construction materials, hardware and electrical
products, and chemical products (excluding
hazardous products). (For items that must be
approved in accordance with the law, the company
may carry out business operations upon approval by
competent departments.)
R&D, production, processing, and online sales: paper
products, hygiene products, cosmetics, nonwoven
products, plastic products for daily use, chemical
products for daily use, metalware for daily use, rubber
Capital
products for daily use, and ceramics for daily use;
Sun Daily contributio
Yunfu, Yunfu, import and export of goods or technologies
Necessities 50.00% 50.00% n for
Guangdong Guangdong (excluding the import and export of goods and
Co., Ltd. establishme
technologies prohibited by the State or involving
nt
administrative approval). (For items that must be
approved in accordance with the law, the company
may carry out business operations upon approval by
competent departments.)
General items: manufacture of paper products;
Internet sales (sales only on third-party platforms)
(excluding the sales of commodities requiring a
permit); sales of personal hygiene products; sales of
household products, sales of hygiene products and
disposable medical products; retail of cosmetics; sales
Capital
Dolemi of general merchandise; sales of plastic products;
contributio
Sanitary Zhongshan, Zhongshan, sales of metal products; sales of rubber products;
60.00% 40.00% n for
Products Co., Guangdong Guangdong manufacture of daily-use ceramic products. (The
establishme
Ltd. company may carry out business operations
nt
independently according to the law based on the
business license, except for items that must be
licensed according to the law.) (For items that must be
approved in accordance with the law, the company
may carry out business operations upon approval by
competent departments.)
Licensed items: manufacture of Class II medical
devices; import and export of goods; import and Capital
C&S (Jiangsu) export of technologies; manufacture of Class III contributio
Suqian, Suqian, medical devices; operation of Class III medical
Paper Co., 100.00% n for
Jiangsu Jiangsu devices (for items that must be approved in
Ltd. establishme
accordance with the law, companies may carry out nt
business operations upon approval by relevant
departments, and the specific business items are
168
C&S Paper Co., Ltd. Semi-annual Report 2022
subject to approval result). General items:
manufacture of paper products; sales of plastic
products; sales of paper products; Internet sales
(excluding the sales of commodities requiring a
permit); sales of daily necessities; sales of personal
hygiene products; sales of household products; sales
of sanitary products and disposable medical products;
retail of cosmetics; wholesale of cosmetics; sales of
knitwear; wholesale of kitchen utensils and daily
groceries; sales of metal products; sales of rubber
products; manufacture of daily-sue ceramic products;
R&D of kitchen utensils and daily groceries; retail of
kitchen utensils and daily groceries; sewage treatment
and recycling; manufacture of Class I medical
devices; sales of Class I medical devices; sales of
Class II medical devices; sales of disinfectants
(excluding hazardous chemicals). (The company may
carry out business operations independently
according to the law based on the business license,
except for items that must be licensed according to
the law)
Technology development, technology consultation,
technology transfer, technology promotion, and
technical services; sales of paper products, daily
necessities, hygiene products, cosmetics, chemical
products (excluding hazardous chemicals), Class I
medical devices, Class II medical devices,
Beijing Capital
disinfection products and non-medical masks. (The
Bloomage contributio
market entity may independently select business
Jierou Beijing Beijing 51.00% n for
items and carry out business activities in accordance
Biotechnology establishme
with the law; for items that must be approved in
Co., Ltd. nt
accordance with the law, the company may carry out
business operations upon approval by competent
departments based on contents of the approval; it is
prohibited to engage in business activities of items
prohibited and restricted by national and municipal
industrial policies.)
General items: sales of personal hygiene products;
sales of paper products; Internet sales (excluding the
sales of commodities requiring a permit); sales of
household products; sales of sanitary products and
disposable medical products; sales of daily
Luzhou necessities; sales of plastic products; sales of metal Capital
Dolemi products; sales of rubber products; manufacture of contributio
Luzhou, Luzhou,
Sanitary daily-use ceramic products (the company may carry 60.00% n for
Sichuan Sichuan
Products Co., out business operations independently according to establishme
Ltd. the law based on the business license, except for nt
items that must be licensed according to the law) (The
company may carry out business operations
independently according to the law based on the
business license, except for items that must be
licensed according to the law.)
General items: wholesale of cosmetics; sales of
personal hygiene products; manufacture of paper
products; Internet sales (excluding the sales of
commodities requiring a permit); sales of household
Mianyang Capital
products; sales of sanitary products and disposable
Dolemi contributio
Mianyang, Mianyang, medical products; retail of cosmetics; sales of daily
Sanitary 60.00% n for
Sichuan Sichuan necessities; sales of plastic products; sales of metal
Products Co., establishme
products; sales of rubber products; manufacture of
Ltd. nt
daily-use ceramic products (the company may carry
out business operations independently according to
the law based on the business license, except for
items that must be licensed according to the law).
Zhengzhou Zhengzhou, Zhengzhou, General items: sales of personal hygiene products; 60.00% Capital
169
C&S Paper Co., Ltd. Semi-annual Report 2022
Dolemi Henan Henan sales of household products; sales of sanitary contributio
Sanitary products and disposable medical products; retail of n for
Products Co., cosmetics; sales of daily necessities; sales of plastic establishme
Ltd. products; sales of paper products; sales of metal nt
products; sales of rubber products; manufacture of
daily-use ceramic products (the company may carry
out business operations independently according to
the law based on the business license, except for
items that must be licensed according to the law).
General items: sales of personal hygiene products;
sales of sanitary products and disposable medical
products; sales of paper products; Internet sales
(excluding the sales of commodities requiring a
Dazhou permit); sales of household products; retail of Capital
Dolemi cosmetics; sales of daily necessities; sales of plastic contributio
Dazhou, Dazhou,
Sanitary products; sales of metal products; sales of rubber 60.00% n for
Sichuan Sichuan
Products Co., products; manufacture of daily-use ceramic products; establishme
Ltd. convention and exhibition services (the company may nt
carry out business operations independently
according to the law based on the business license,
except for items that must be licensed according to
the law)
Items prohibited by laws, regulations and decisions of
the State Council cannot be engaged; items whose
operation requires permission (approval) as stipulated
by laws, regulations and decisions of the State
Council can be engaged after obtaining the permit
(approval) document; for items requiring no
permission (approval) under laws, regulations and
Guiyang Capital
decisions of the State Council, market entity may
Dolemi contributio
Guiyang, Guiyang, choose whether to engage independently. Other
Sanitary 60.00% n for
Guizhou Guizhou unspecified retail trade; sales of paper products; sales
Products Co., establishme
of daily necessities; retail of cosmetics; sales of
Ltd. nt
sundries; sales of household products; retail of arts
and crafts and collectibles (except ivory and its
products); brand management; convention and
exhibition services (for items that must be approved
in accordance with the law, the company may carry
out business operations upon approval by competent
departments)
General items: sales of hygiene products and
disposable medical products; sales of personal
hygiene products; retail of cosmetics; sales of daily
Zhanjiang Capital
necessities; sales of sundries; sales of rubber
Dolemi contributio
Zhanjiang, Zhanjiang, products; sales of plastic products; sales of metal
Sanitary 60.00% n for
Guangdong Guangdong products; sales of paper products; convention and
Products Co., establishme
exhibition services. (The company may carry out
Ltd. nt
business operations independently according to the
law based on the business license, except for items
that must be licensed according to the law)
General items: sales of daily necessities; retail of
cosmetics; sales of household goods; sales of office
supplies; sales of arts and crafts and etiquette
products (except ivory and its products); sales of
building decoration materials; sales of knitwear; sales
of machinery and equipment; sales of instruments and Capital
Xi’an Dolemi
meters; retail of clothes and apparels; retail of shoes contributio
Sanitary Xi’an,
Xi’an, Shanxi and hats; sales of foods (only pre-packaged foods); 60.00% n for
Products Co., Shanxi
sales of sundries; sales of electronic products; establishme
Ltd.
landscaping engineering construction; advertising nt
design and agency; network technology services;
marketing planning; convention and exhibition
services; etiquette services. (The company may carry
out business operations independently according to
the law based on the business license, except for
170
C&S Paper Co., Ltd. Semi-annual Report 2022
items that must be licensed according to the law)
The general business items are: Internet sales (except
for the sales of commodities that need to be licensed);
Sales of paper products; Sales of daily necessities;
Sales of daily necessities; Sales of daily necessities;
Sales of household goods; Sales of mother and baby
products; Wholesale of pet food and supplies; Retail
of pet food and supplies; Sales of knitwear and raw
materials; Knitwear sales; Cosmetics wholesale;
Cosmetics retail; Sales of packaging materials and
products; Sales of chemical products (excluding
licensed chemical products); Sales of washing
machinery; Sales of electronic products; Clothing
wholesale; Clothing retail; Sales of leather products;
Wholesale of shoes and hats; Retail of shoes and hats;
Sales of household appliances; Toy sales; Sales of
toys, animation and entertainment supplies;
Consulting and planning services; Marketing
planning; Project planning and public relations
services; Experiential expansion activities and
Zhongshun planning; Health consulting services (excluding Capital
health life diagnosis and treatment services); Conference and contributio
Shenzhen, Shenzhen,
technology exhibition services; Brand management; Camera and 60.00% 40.00% n for
Guangdong Guangdong
(Shenzhen) video production services; Advertising (non radio, establishme
Co., Ltd. television and newspaper publishing units); nt
Advertising production; Advertising design and
agency; Business information consulting (excluding
investment consulting); Professional design services;
Internet data service; Domestic trade agency; Trade
agency; Organize cultural and artistic exchange
activities; Corporate image planning; Enterprise
management consulting; Sales of class I medical
devices; Sales of veterinary medical devices. (except
for the items subject to approval according to law, the
business activities shall be carried out independently
according to law with the business license). The
permitted business items are: Sales of class II medical
devices; Internet information service; Import and
export of goods. (for projects subject to approval
according to law, business activities can only be
carried out after approval by relevant departments.
The specific business projects shall be subject to the
approval documents or permits issued by relevant
departments.)
Description of the difference between the percentage of shares held in a subsidiary and the percentage of voting rights: None
Basis for holding 50% or less than of the voting rights but controlling the investee, or holding 50% or more of the voting rights but
not controlling the investee: None
Basis for controlling the important consolidated structured entities: None
Basis for determining whether the Company is an agent or a principal: None
Other descriptions: All shares held indirectly belong to the shares held by wholly-owned subsidiaries of the Company
(2) Important non-wholly-owned subsidiaries: None
Other description:
171
C&S Paper Co., Ltd. Semi-annual Report 2022
The Company does not have important non-wholly-owned subsidiaries.
(3) Main financial information of important non-wholly-owned subsidiaries: None
(4) Significant restrictions on the use of the assets and the repayment of the debts of the enterprise group:
None
(5) Financial or other support provided to consolidated structured entities: None
2. Transactions in which the share of owner’s equity in a subsidiary changes while control of the
subsidiary is still retained
(1) Description of changes in the share of owner’s equity in the subsidiary: None
(2) Impact of the transaction on the equity of minority shareholders and the equity attributable to owners
of the Parent Company: None
Other description
There are no transactions of the Company in which the share of owner’s equity in a subsidiary changes and
control of the subsidiary is retained.
3. Interests in joint arrangements or associates
(1) Important joint ventures or associates: None
(2) Main financial information of important joint ventures: None
(3) Main financial information of important associates: None
(4) Summary financial information of unimportant joint ventures and associates: None
(5) Description of significant restrictions on the ability of joint ventures or associates to transfer funds to
the Company: None
(6) Excess losses incurred by joint ventures or associates: None
(7) Unconfirmed commitments related to the investment in joint ventures: None
(8) Contingent liabilities related to the investment in joint ventures or associates: None
4. Important joint operation: None
Other description
The Company does not have important joint operations..
172
C&S Paper Co., Ltd. Semi-annual Report 2022
5. Interests in unconsolidated structured entities
Description of unconsolidated structured entities:
The Company does not have interests in unconsolidated structured entities.
6. Others: None
X. Risks Associated with Financial Instruments
The main financial instruments of the Company include monetary funds, notes receivable, accounts receivable,
notes payable, accounts payable, other payables, loans, etc. Please refer to relevant items of "Note VII" for
detailed information of all financial instruments. The risks associated with these financial instruments and the risk
management policies adopted by the Company to reduce these risks are as follows. The management of the
Company manages and monitors these risk exposures to ensure that the above risks are kept within control.
The Company adopts the sensitivity analysis method to analyze the possible impact of reasonable and possible
changes in risk variables on the profit and loss or shareholder equities in the current period. Since any risk
variable rarely changes in isolation and the correlation between the variables will have a significant effect on the
ultimate financial impact of changes in a certain risk variable, the following contents are under the consumption
that changes of a variable are independent.
The goal of the Company’s risk management is to strike a proper balance between risks and gains and to minimize
the negative impact of risks on the business performance of the Company while maximizing the interests of
shareholders and other equity investors. Based on this risk management goal, the basic strategy of the Company’s
risk management is to determine and analyze all kinds of risks faced by the Company, clarify the minimum of risk
acceptance and conduct risk management, and monitor risks of all kinds in a timely and reliable manner to control
risks within the limits.
1. Credit risk
Credit risk refers to the risk of financial losses of one party caused by the failure of the other party to perform its
obligations. As of June 30, 2022, the largest credit exposure that may cause financial losses to the Company
mainly comes from the losses of the Company’s financial assets due to failure of the other contractual party to
perform its obligations.
In order to reduce credit risk, the Company only conducts transactions with recognized customers with good
credit status, and continuously monitors the accounts receivable through credit monitoring of existing customers
and aging analysis to ensure that the Company does not face the risk of bad debts and keep the overall credit risk
within control.
Liquid funds of the Company are deposited in banks with high credit ratings, so the credit risk of liquid funds is
low.
2. Interest rate risk
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flow of financial instruments due
to changes in market interest rates. The interest rate risk faced by the Company mainly comes from bank
borrowings. By developing a good relationship with banks and carrying out proper design of credit lines, types of
credits, and credit terms, the Company ensures sufficient bank credit lines to meet its various financing needs. The
risk of interest rate fluctuation can be reasonably reduced by shortening the term of a single loan and specially
stipulating early prepayment terms.
3. Foreign exchange risk
173
C&S Paper Co., Ltd. Semi-annual Report 2022
Foreign exchange risk refers to the risk of fluctuations in the fair value or future cash flow of financial instruments
due to changes in foreign exchange rates. The Company tries its best to match foreign currency income with
foreign currency expenditure to reduce foreign exchange risks.
Foreign exchange risks borne by the Company are mainly related to USD and HKD. Except for purchasing and
selling in USD and HKD by its overseas subsidiaries, other major business activities of the Company are priced
and settled in RMB. See "Note VII (82)" for the conversion of foreign currency financial assets and liabilities into
RMB as of June 30, 2022. During the reporting period, the Company generated exchange profit and loss of RMB
282,584.01.
Sensitivity analysis of foreign exchange risk:
Analysis assumption: On the basis that all other variables remain constant on the balance sheet date, the possible,
reasonable changes of foreign exchange rate will have the following pre-tax effects on the Company’s profit and
loss and shareholders’ equity in the current period:
Item End of year
Impact on profit Impact on shareholders’
equity
Appreciation of RMB against foreign currency by 1.00% -824,512.96 -824,512.96
Depreciation of RMB against foreign currency by 1.00% 824,512.96 824,512.96
4. Liquidity risk
Liquidity risk refers to the risk of capital shortage when an enterprise fulfills its obligation to settle accounts by
delivering cash or other financial assets. The Company’s policy is to ensure that it has sufficient cash to repay
mature debts. Liquidity risk is centrally controlled by the financial departments of the Company. The financial
departments monitor cash balances, negotiable securities that can be cashed in at any time, and carry out rolling
forecasts on cash flows in the next six months to ensure that the Company has sufficient funds to repay debts
under all reasonable forecasts.
Financial liabilities held by the Company as of June 30, 2022 analyzed based on the maturity period of
undiscounted remaining contractual obligations are as follows:
Item Within 1 year Over 1 year Total
Notes payable 370,849,951.28 370,849,951.28
Accounts payable 900,205,369.24 2,888,467.81 903,093,837.05
Other payables 854,150,437.55 2,676,044.00 856,826,481.55
Non-current liabilities
8,571,955.94 8,571,955.94
due within one year
Lease liabilities 5,368,471.00 5,368,471.00
Total 2,133,777,714.01 10,932,982.81 2,144,710,696.82
174
C&S Paper Co., Ltd. Semi-annual Report 2022
XI. Disclosure of Fair Value
1. Fair value of assets and liabilities measured at fair value at the end of the reporting period: None
2. Basis for determining the market price of recurring and non-recurring fair value measurement items
in Level 1: None
3. Qualitative and quantitative information on important parameters and valuation techniques used for
recurring and non-recurring fair value measurement items in Level 2: None
4. Qualitative and quantitative information on important parameters and valuation techniques used for
recurring and non-recurring fair value measurement items in Level 3: None
5. Adjustment information and sensitivity analysis of unobservable parameters between the opening and
closing book values of recurring fair value measurement items of Level 3: None
6. For recurring fair value measurement items with transfer between different levels, reasons for such
transfer and policies for determining the time of conversion: None
7. Changes in valuation techniques within the reporting period and reasons for such changes: None
8. Fair value of financial assets and financial liabilities not measured at fair value: None
9. Others: None
XII. Related Parties and Related Party Transactions
1. Information on the Parent Company of the Company
Shareholding
Percentage of
percentage of
Name of Parent Registered Registered voting right of the
Principal businesses the Parent
Company address capital Parent Company to
Company to the
the Company
Company
External investment; consulting
Guangdong of information on commodities
Zhongshan, RMB30
Zhongshun Paper circulation (exclusive of real 28.60% 28.60%
Guangdong million
Group Co., Ltd. estate, labor services, financial
futures, and studying abroad)
Information on the Company’s Parent Company
The ultimate controller of the Company is Mr. Deng Yingzhong, the father, and Mr. Deng Guanbiao and Mr. Deng Guanjie, whose
two sons.
Other description: None
2. Information on subsidiaries of the Company
See Note IX Equities in Other Entities for detailed information on the subsidiaries of the Company.
175
C&S Paper Co., Ltd. Semi-annual Report 2022
3. Information on the joint ventures and associates of the Company
For important joint ventures or associates, please refer to the notes for details.
Other description
The Company does not have interests in joint venture arrangements or associates.
4. Information on other related parties
Name of other related parties Relationship between other related parties and the Company
A company controlled by the Company’s actual controller/other
Chung Shun Co.
shareholder holding 5% or more of shares
A company controlled by the nephew and the husband of the niece of Mr.
Guangzhou Zhongshun Trade Co., Ltd.
Deng Yingzhong, director of the Company
A company in which the Company’s actual controller Mr. Deng
Bama Zhongshun Health Products Co., Ltd.
Yingzhong serves as a director
The partially-owned subsidiary of Bama Zhongshun Health Products Co.,
Yantai Zhongshun Network Technology Co., Ltd.
Ltd. controlled by the Company’s controlling shareholders
A company jointly controlled by the Company’s actual controllers Mr.
Shenzhen Zhongshun Caizhi Investment Co., Ltd.
Deng Yingzhong, Mr. Deng Guanbiao and Mr. Deng Guanjie
A company in which the son of the Company’s Vice President Yue Yong
Pengzhou Enjoying Life Trading Co., Ltd.
holds 50% equity and serves as a supervisor
A company where the son of the Company’s Vice President Yue Yong
Sichuan West Enjoying Life Trading Co., Ltd.
holds 50% equity and serves as a supervisor
Chongqing Qinyue Trading Co., Ltd.
A company in which the spouse of the brother of the Company’s Vice
(Former: Chongqing Fuling District Qinyue Household President Yue Yong holds 99% equity
Necessities Co., Ltd.)
A company in which the Company’s actual controller Mr. Deng Guanbiao
Shenzhen Jinju Investment Co., Ltd.
serves as a director and Mr. Deng Guanjie serves as a supervisor
A company in which the Company’s actual controller Mr. Deng Guanjie
Zhongshan Zhongshun Caizhi Trading Co., Ltd. serves as the manager and executive director and Mr. Deng Guanbiao
serves as a supervisor.
Zhongshan Qianlai Network Technology Co., Ltd. A company controlled by the Company’s independent director Mr. Liu Die
Foshan Yingfang Jiayu Consulting Services Co., Ltd. A company controlled by the Company’s supervisor Liang Yongliang
A company in which the brother of the Company’s director and actual
Foshan Shunde Taogang Trading Co., Ltd. controller Mr. Deng Yingzhong holds 50% of the shares and serves as the
legal representative
A company in which the mother-in-law of the Company’s actual controller
Meizhou Xinhong Electronics Co., Ltd. Mr. Deng Guanbiao serves as the legal representative 、the General
Manager and executive director
A company in which the sibling-in-laws of the Company’s supervisor
Guangzhou Chenhui Paper Co., Ltd.
Zhang Gao controls and acts as the legal representative
A company in which the sibling-in-laws of the Company’s supervisor
Zhang Gao hold 99% of the shares and act as the legal representative
Guangzhou Jiahui Enterprise Management Co., Ltd.
while Mr. Zhang’s spouse holds 1% of the shares and serve as the
executive director
A company in which the sibling-in-laws of the Company’s supervisor
China Paper Investment Co., Ltd.
Zhang Gao serve as directors
A company in which the sibling-in-laws of the Company’s supervisor
Zhejiang FTZ Xinjiachang Trading Co., Ltd.
Zhang Gao controls and act as directors
Zhuhai High-tech Zone Shengda Engineering A company in which the son of the Company’s CFO Dong Ye serves as
Consulting Service Center the legal representative
Zhongshan Jufengbao Trading Co., Ltd. A company in which the Company’s Board Secretary and Vice President
hold 90% of the shares and serve as the executive director and legal
176
C&S Paper Co., Ltd. Semi-annual Report 2022
representative
Other description
Note: The Company’s directors, supervisors, senior managers and their close family members are related parties
of the Company.
5. Information on related party transactions
(1) Related party transactions for purchase and sale of goods, and provision and acceptance of labor
services
Purchase of goods/acceptance of labor services：None
Table of sale of goods/provision of labor services
Unit: RMB
Content of related party
Related party Incurred in the current period Incurred in the prior period
transaction
Pengzhou Enjoying Life
Sale of goods 8,288.50 796,449.56
Trading Co., Ltd.
Sichuan West Enjoying Life
Sale of goods 111.50 289,094.73
Trading Co., Ltd.
Explanation of the related party transactions for purchase and sale of goods, and provision and acceptance of labor services：None
(2) Related entrusted management/contracting and entrusting management/contracting out: None
(3) Related lease
The Company as the lessor: None
The Company as the lessee:
Unit: RMB
Rental costs for Variable lease
simplified short- payments not
term leases and included in the Interest expense of Increased use right
Name Type of low value asset measurement of Rent paid lease liabilities assets
of leased leases (if lease liabilities (if undertaken
lessor assets applicable) applicable)
Incurre Incurre Incurre Incurre Incurre Incurre Incurre Incurre Incurre Incurre
d in the d in the d in the d in the d in the d in the d in the d in the d in the d in the
current prior current prior current prior current prior current prior
period period period period period period period period period period
Mr.
Deng 1,473,9 1,214,7 136,797 174,761 1,029,6
Yingzh
25.82 45.47 .37 .25 07.91 -
ong,
Mr.
Housin
Deng
g lease
Guanbi
ao and
Mr.
Deng
Guanjie
Explanation of related lease: None
177
C&S Paper Co., Ltd. Semi-annual Report 2022
(4) Related guarantee: None
(5) Interbank borrowing between related parties: None
(6) Asset transfer and debt reorganization between related parties: None
(7) Remuneration for key managers
Unit: RMB
Item Incurred in the current period Incurred in the prior period
Remuneration for key managers 13,310,774.14 11,500,854.16
(8) Other related party transactions
6. Receivables from and payables to related parties
(1) Receivables：None
(2) Payables
Unit: RMB
Book balance at the end of the Book balance at the
Project Related party
period beginning of the period
Sichuan West Enjoying Life Trading
Other payables 139,767.62 282,242.81
Co., Ltd.
Sichuan West Enjoying Life Trading
Contract liabilities 0.90 126.90
Co., Ltd.
Pengzhou Enjoying Life Trading
Contract liabilities 8.37 9,374.37
Co., Ltd.
7. Commitments of related parties: None
8. Others: None
XIII. Share-based Payment
1. Overall information on share-based payment
√ Applicable □ Not applicable
Unit: RMB
The Company’s total amount of all
equity instruments granted in the 0.00
current period
The Company’s total amount of all
equity instruments exercised in the 7,272,270.00
current period
The Company’s total amount of all
equity instruments expired in the 1,134,176.00
current period
178
C&S Paper Co., Ltd. Semi-annual Report 2022
The grant price for restricted stock options awarded by the Company in the first grant
Scope of exercise prices and remaining period as at the end of reporting period is RMB8.472/share, and that for reserved stock
contractual term of the Company’ stock
options is RMB13.765/share; the validity period is from the grant date of the stock
options issued as at the end of the
reporting period options to the date when all stock options are exercised or canceled, with a maximum
period of 60 months.
Other description: None
2. Equity-settled share-based payment
√ Applicable □ Not applicable
Unit: RMB
Method of determining the fair value of equity instruments at Restricted shares: the stock closing prices at the grant date
the grant date Stock options: Black-Scholes model for option pricing
Basis for determining the number of vested equity instruments Upon approval of the general meeting of shareholders
Reasons for significant differences between current estimates
None
and previous estimates
Cumulative amount of equity-settled share-based payments
118,325,340.59
recognized as capital surplus
Total fees confirmed by the equity-settled share-based payment
2,691,873.06
in the current period
Other description：None
3. Cash-settled share-based payment
□ Applicable √ Not applicable
4. Revision and termination of share-based payment
There was no revision and termination of share-based payment of the Company during the reporting period.
5. Others
None
XIV. Commitments and Contingencies
1. Significant commitments
Significant commitments on the balance sheet date
As at June 30, 2022, the Company had no significant commitments that should have been disclosed but are not
disclosed.
2. Contingencies
(1) Significant contingent matters on the balance sheet date
As at June 30, 2022, the Company had no significant contingent matters that should have been disclosed but are
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C&S Paper Co., Ltd. Semi-annual Report 2022
not disclosed.
(2) Explanations are also necessary if the Company has no significant contingent matters to be disclosed
There are no significant contingent matters to be disclosed in the Company.
3. Others
None
XV. Events after Balance Sheet Date
1. Significant non-adjusting events: None
2. Profit distribution: None
3. Sales return: None
4. Explanation on other events after the balance sheet date: None
XVI. Other Significant Matters
1. Corrections to previous accounting errors
(1) Retroactive restatement approach: None
(2) Prospective approach: None
2. Debt restructuring: None
3. Assets replacing
(1) Exchange of non-monetary assets: None
(2) Other asset replacing: None
4. Annuities plan: None
5. Operation discontinuation: None
6. Segment information
(1) Determination basis and accounting policies of reporting segments
The Company does not have operating segments with different economic features and hence has not identified
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operating segments according to internal organization structure, management requirements and internal reporting
policies. Therefore, there was no information on reporting segments based on operating segments to be disclosed.
(2) Financial information on reporting segments: None
(3) Explanation on reasons if the Company has no reporting segments or is unable to disclose the total
assets and liabilities of the reporting segments: None
(4) Other description: None
7. Other important transactions and matters that may affect the decisions of investors: None
8. Others
External guarantees of the Company
In 2021, the Company signed the XIAOYIDA Business Cooperation Agreement with Bank of China Limited
Zhongshan Branch and Shanghai Junmeng E-commerce Co., Ltd. (No. 2021-XYDXY-33725001), under which
the bank offers a credit line of XIAOYIDA service up to RMB200 million to Shanghai Junmeng and the Company
provides a joint and several liability guarantee. The line of credit is valid until June 22, 2022，the maximum
financing period shall not exceed 90 days. Shanghai Junmeng E-commerce Co., Ltd. has a financing balance of
RMB 35 million in sales of XIAOYIDA business.
In 2021, Zhongshan Zhongshun Trading Co., Ltd., a subsidiary of the Company, signed the XIAOYIDA Business
Cooperation Agreement with Bank of China Limited Zhongshan Branch and Wuhan Jie Rou E-commerce Co.,
Ltd. (No. 2021-XYDXY-33725002), under which the bank offers a credit line of XIAOYIDA service up to
RMB145 million to Wuhan Jie Rou and the Company provides a joint and several liability guarantee. The line of
credit is valid until August 5, 2022，The maximum financing period shall not exceed 90 days. As of June 30,
2022, Wuhan Jie Rou E-commerce Co., Ltd. has a financing balance of RMB 65.6 million in sales of XIAOYIDA
business.
XVII. Notes to Major Items of Financial Statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable disclosure by category
Unit: RMB
Balance at the end of the period Balance at the beginning of the period
Impairment Impairment
Book balance Book balance
Category provision Book provision
Book value
Percenta Provision value Percentag Provision
Amount Amount Amount Amount
ge ratio e ratio
Including:
Accounts receivable 98,829,2 2,322,98 96,506,31 173,226,6 2,171,652 171,055,03
for which bad debt 100.00% 2.35% 100.00% 1.25%
94.34 1.68 2.66 92.33 .96 9.37
reserve is set aside in
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C&S Paper Co., Ltd. Semi-annual Report 2022
portfolios
Including:
Portfolio based on 88,083,6 2,322,98 85,760,71 82,828,53 2,171,652 80,656,882.
aging 89.13% 2.64% 47.82% 2.62%
95.25 1.68 3.57 5.15 .96 19
Portfolio based on 10,745,5 10,745,59 90,398,15 90,398,157.
related parties 10.87% 52.18%
99.09 9.09 7.18 18
98,829,2 2,322,98 96,506,31 173,226,6 2,171,652 171,055,03
Total 100.00% 2.35% 100.00% 1.25%
94.34 1.68 2.66 92.33 .96 9.37
Bad debt reserve set aside in portfolios: 2,322,981.68
Unit: RMB
Balance at the end of the period
Name
Book balance Impairment provision Ratio of provision
Within the credit period 72,047,509.98 1,440,950.20 2.00%
Credit period - 1 year 15,645,641.49 782,282.07 5.00%
1 to 2 years 272,921.38 40,938.21 15.00%
2 to 3 years
3 to 5 years 117,622.40 58,811.20 50.00%
Over 5 years
Total 88,083,695.25 2,322,981.68
Description of reason for the portfolio:
Accounts receivable with the same aging have similar credit risk characteristics.
Description of reason for the portfolio:
If the bad debt reserve of accounts receivable is set aside according to general model of expected credit loss, please refer to the
disclosure method of other receivables to disclose relevant information on bad debt reserve:
□ Applicable √ Not applicable
Disclose by aging
Unit: RMB
Aging Book balance
Within 1 year (inclusive) 98,438,750.56
1 to 2 years 272,921.38
Over 3 years 117,622.40
3 to 4 years 117,622.40
Total 98,829,294.34
(2) Bad debt reserve that is set aside, recovered or transferred back in the reporting period
Provision of bad debt reserve of the reporting period:
Unit: RMB
Balance at the Amount of change in the reporting period
Balance at the
Category beginning of the Recovery or
Provision Write-off Others end of the period
period reversal
Accounts
receivable 2,171,652.96 151,328.72 2,322,981.68
Total 2,171,652.96 151,328.72 2,322,981.68
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C&S Paper Co., Ltd. Semi-annual Report 2022
Wherein, the amount of recovered or transferred back bad debt reserve in the reporting period is important: None
(3) Accounts receivable actually written off in the reporting period
Description on the write-offs of accounts receivables:
The Company did not have written-off accounts receivable in the reporting period.
(4) Top five debtors in closing balance of accounts receivable
Unit: RMB
Percentage in total balance of
Balance of accounts receivable Balance for bad debt reserve at
Name of institution accounts receivable at the end
at the end of the period the end of the period
of the period
1st 32,230,271.22 32.61% 652,386.64
2nd 26,468,647.85 26.78%
3rd 9,291,108.77 9.40% 185,822.18
4th 8,142,026.59 8.24%
5th 5,750,817.81 5.82% 189,338.13
Total 81,882,872.24 82.85%
(5) Amounts of assets and liabilities that are formed by the transfer and ongoing involvement of accounts
receivable
The Company has no accounts receivable derecognized due to the transfer of financial assets as at the end of the
reporting period.
(6) Accounts receivable derecognized due to transfer of financial assets: None
2. Other receivables
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Other receivables 192,989,166.37 128,580,102.05
Total 192,989,166.37 128,580,102.05
(1) Interest receivable
1) Classification of interest receivable: None
2) Significant overdue interest: None
3) Provision of bad debt reserve
□ Applicable √ Not applicable
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(2) Dividends receivable
1) Classification of dividends receivable: None
2) Significant dividends receivable exceeding one year: None
3) Provision of bad debt reserve
□ Applicable √ Not applicable
Other description: None
(3) Other receivables
1) Classification of other receivables by nature
Unit: RMB
Book balance at the beginning of the
Nature Book balance at the end of the period
period
Current accounts 184,045,786.97 125,981,678.74
Reserve 1,411,829.76 724,829.00
Margins and deposits 346,299.76 253,137.00
Others 7,771,605.47 1,844,844.60
Total 193,575,521.96 128,804,489.34
2) Provision of bad debt reserve
Unit: RMB
Phase I Phase II Phase III
Bad debt provision Expected credit losses in Expected credit losses in Total
Expected credit loss
the whole duration (without the whole duration (with
in the next 12 months
credit impairment) credit impairment)
Balance as at January 1,
2021 224,387.29 224,387.29
Balance as at January 1,
2021 in the reporting
period
Transferred-back in the
reporting period 361,968.30 361,968.30
Balance as at December
31, 2021 586,355.59 586,355.59
Description of changes in the book balance where there are significant changes in provision for the current period
□ Applicable √ Not applicable
Disclose by aging
Unit: RMB
Aging Book balance
Within 1 year (inclusive) 193,435,861.91
1 to 2 years 105,306.00
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C&S Paper Co., Ltd. Semi-annual Report 2022
2 to 3 years 26,000.00
Over 3 years 8,354.05
Over 5 years 8,354.05
Total 193,575,521.96
3) Bad debt reserve that is set aside, recovered or transferred back in the reporting period
Provision of bad debt reserve of the reporting period:
Unit: RMB
Balance at the Amount of change in the reporting period
Balance at the end
Category beginning of Recovery or
Provision Write-off Others of the period
the period reversal
Other receivables 224,387.29 361,968.30 586,355.59
Total 224,387.29 361,968.30 586,355.59
The Company did not have other receivables that were not written off in the reporting period.
Where the amount of recovered or reversed bad debt reserve in the reporting period is important: None
4) Other receivables actually written off in the reporting period: None
5) Top five debtors in closing balance of other accounts receivable
Unit: RMB
Percentage in total
Balance of bad
Name of Nature of the Balance at the end balance of other
Aging debt reserve at the
institution amount of the period receivables at the
end of the period
end of the period
1st Others 103,243,400.98 Within 1 year 53.33%
2nd Others 9,460,860.30 Within 1 year 4.89%
3rd Others 163,112.43 Within 1 year 0.08% 8,155.62
4th Current accounts 88,661.21 Within 1 year 0.05% 4,433.06
5th Current accounts 50,000.00 Within 1 year 0.03% 2,500.00
Total 113,006,034.92 58.38% 15,088.68
6) Receivables involving government grants: None
7) Other receivables derecognized due to the transfer of financial assets: None
8) Amount of assets and liabilities that are formed by the transfer and ongoing involvement of other
receivables: None
3. Long-term equity investments
Unit: RMB
Balance at the end of the period Balance at the beginning of the period
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment in
subsidiaries 1,947,211,642.68 1,947,211,642.68 1,945,421,378.56 1,945,421,378.56
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C&S Paper Co., Ltd. Semi-annual Report 2022
Total 1,947,211,642.68 1,947,211,642.68 1,945,421,378.56 1,945,421,378.56
(1) Investment in subsidiaries
Unit: RMB
Balance at Increase/decrease in the period Closing
Closing
the beginning balance of
Investee Increase in Decrease in Impairment balance
of the period Others impairment
investment investment Provision (book value)
(Book value) provision
Zhongshan
Zhongshun 96,707,066.5 96,983,679.1
276,612.54
Trading Co., 6 0
Ltd.
C&S
(Sichuan) 176,473,327. 176,874,606.
401,279.04
Paper Co., 30 34
Ltd.
Zhejiang
Zhongshun 58,065,272.5 58,251,215.8
185,943.36
Paper Co., 3 9
Ltd.
C&S
(Zhongshan) 12,683,100.0 12,683,100.0
Paper Co., 0 0
Ltd.
Jiangmen
Zhongshun 699,174,385. 699,251,899.
77,514.00
Paper Co., 09 09
Ltd.
C&S (Hubei)
197,476,637. 197,680,247.
Paper Co., 203,610.36
16 52
Ltd.
C&S (Yunfu)
658,596,481. 658,715,021.
Paper Co., 118,539.90
82 72
Ltd.
Yunfu
Hengtai 30,201,144.0 30,201,239.3
95.34
Trading Co., 1 5
Ltd.
Chengdu
Zhongshun
670,057.03 4,187.34 674,244.37
Paper Co.,
Ltd.
Xiaogan
C&S Trading 320,405.66 871.98 321,277.64
Co., Ltd.
Shanghai
Huicong
8,099.98 238.32 8,338.30
Paper Co.,
Ltd.
Hangzhou Jie
Rou Trading 126,440.02 2,179.98 128,620.00
Co., Ltd.
Zhong Shun
International 881,263.57 9,649.98 890,913.55
Co., Ltd.
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C&S Paper Co., Ltd. Semi-annual Report 2022
Sun Daily
Necessities 200,000.00 200,000.00
Co., Ltd.
C&S
(Dazhou)
6,000,000.00 6,000,000.00
Paper Co.,
Ltd.
Dolemi
Sanitary
869.50 95.34 964.84
Products Co.,
Ltd.
Beijing
Bloomage
Jierou 2,040,000.00 2,040,000.00
Biotechnolog
y Co., Ltd.
C&S
(Jiangsu)
5,796,828.33 500,000.00 9,446.64 6,306,274.97
Paper Co.,
Ltd.
1,945,421,37 1,947,211,64
合计 500,000.00 1,290,264.12
8.56 2.68
(2) Investment in associates and joint ventures: None
(3) Other description: None
4. Operating income and operating cost
Unit: RMB
Incurred in the current period Incurred in the prior period
Item
Income Cost Income Cost
Principal business 464,675,689.71 400,334,582.19 506,782,115.67 414,158,999.43
Other businesses 575,552,404.82 534,389,533.78 409,284,226.79 374,640,370.60
Total 1,040,228,094.53 934,724,115.97 916,066,342.46 788,799,370.03
Information related to income:
Unit: RMB
Contract classification Branch 1 Branch 2 Total
By product type 1,040,228,094.53 1,040,228,094.53
Including:
Household paper 460,980,209.96 460,980,209.96
Personal care 3,695,479.75 3,695,479.75
Others 575,552,404.82 575,552,404.82
By operating region 1,040,228,094.53 1,040,228,094.53
Including:
Domestic 1,040,228,094.53 1,040,228,094.53
Abroad
By market or customer
type
Including:
Contract type
Including:
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C&S Paper Co., Ltd. Semi-annual Report 2022
By the time of goods
transfer
Including:
By contract term
Including:
By sales channel 1,040,228,094.53 1,040,228,094.53
Including:
Traditional 339,762,455.57 339,762,455.57
Non-traditional 124,913,234.14 124,913,234.14
Others 575,552,404.82 575,552,404.82
Total 1,040,228,094.53 1,040,228,094.53
Information related to performance obligation: None
Information related to the transaction price apportioned to the remaining performance obligation:
The amount of income corresponding to the obligations of contract performance with an executed contract that is not performed or
fully performed at the end of the reporting period is RMB 2,024,491.41, of which the income of RMB 2,024,491.41 is expected to
be confirmed as income in the year of 2022.
Other description: None
5. Return on investment
Unit: RMB
Item Incurred in the current period Incurred in the prior period
Income from long-term equity-based
investment accounted for using the cost 491,775,000.00 482,375,000.00
method
Others 136,145.00 329,072.79
Total 491,911,145.00 482,704,072.79
6. Others: None
XVIII. Supplementary Information
1.List of non-recurring profits and losses of the reporting period
√ Applicable □ Not applicable
Unit: RMB
Item Amount Description
Profits/losses from the disposal of non-
-2,323,301.55
current asset
Governmental grants reckoned into
current profits/losses (not including
grants enjoyed in quota or ration
12,351,174.47
according to national standards, which
are closely relevant to the company’s
normal business)
Profits/losses from assets entrusted to Returns on principal-protected wealth
183,493.42
others for investment or management management products at maturity
Other non-operating income and -1,367,709.56
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C&S Paper Co., Ltd. Semi-annual Report 2022
expenses except for the aforementioned
items
Less: Influence of income tax 1,768,983.09
Total 7,074,673.69 --
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□ Applicable √ Not applicable
The Company has no other profit and loss items that meet the definition of non-recurring profit and loss.
Descriptions where the Company defines any non-recurring profit and loss items listed in the No. 1 Explanatory Announcement on
Information Disclosure of Companies Offering Securities to the Public—Non-recurring Profit and Loss as recurring profit and loss
items during the reporting period
□ Applicable √ Not applicable
2. Return on net assets and earnings per share
Earnings per share
Profit in the reporting period Weighted average return on net assets Basic earnings per share Diluted earnings per
(RMB/share) share (RMB/share)
Net profit attributable to the
ordinary shareholders of the 4.53% 0.17 0.17
Company
Net profit attributable to the
ordinary shareholders of the
4.39% 0.17 0.17
Company after excluding non-
recurring profit and loss
3. Difference in accounting data under domestic and international accounting standards
(1) Net profit and net asset differences under International Financial Reporting Standards (IFRS) and
Chinese Accounting Standards (CAS)
□ Applicable √ Not applicable
(2) Net profit and net asset differences under foreign accounting standards and Chinese Accounting
Standards (CAS)
□ Applicable √ Not applicable
(3) Explanation of reasons for the differences between accounting data disclosed under domestic and
overseas accounting standards. If differences are adjusted based on data audited by overseas audit
institutions, the name of the institution should be noted.
4. Others
If there are any ambiguities, the Chinese version shall prevail.
189
