Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
SHANDONG CHENMING PAPER HOLDINGS LIMITED *
2015 First Quarter Report
April 2015
— 1—
Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
I Important Notice
The board of directors (the “Board”), the supervisory committee (the
“Supervisory Committee”), the directors (the “Directors”), supervisors (the
“Supervisors”) and senior management (the “Senior Management”) of the
Company hereby warrant that the contents of this quarter report are true,
accurate and complete, and there are no false representations, misleading
statements or material omissions, and jointly and severally responsible for the
liabilities of the Company.
All Directors were present at the Board meeting to consider and approve this
quarterly report.
Chen Hongguo, head of the Company, Dong Lianming, head in charge of
accounting and Liu Jun, head of the accounting department (Accounting
Officer), declare that they warrant the truthfulness, accuracy and completeness
of the financial statements in this quarter report.
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
II Major financial data and change of shareholders
I. Major accounting data and financial indicators
Retrospective adjustment to or restatement of the accounting data for prior years
by the Company due to change of accounting policies and correction of
accounting errors
□ Yes √No
Increase/decrease
compared to the
corresponding
This reporting Corresponding period of the
period period of prior year prior year
Revenue (RMB) 4,456,654,640.64 4,078,069,314.47 9.28%
Net profit attributable
to shareholders of the
Company (RMB) 96,137,359.80 81,273,928.14 18.29%
Net profit after
extraordinary gains or
losses attributable to
shareholders of the
Company (RMB) 47,531,100.97 -48,792,027.97 197.42%
Net cash flows from
operating activities
(RMB) -524,893,745.34 631,844,125.85 -183.07%
Basic earnings per
share (RMB per
share) 0.05 0.04 25.00%
Diluted earnings per
share (RMB per
share) 0.05 0.04 25.00%
Rate of return on net
assets on weighted
average basis 0.69% 0.58% 0.11%
Increase/decrease as
at the end of the
reporting period
As at the end of the As at the end compared to the end
reporting period of the prior year of the prior year
Total assets (RMB) 59,632,819,205.30 56,822,026,545.21 4.95%
Net assets attributable
to shareholders of the
Company (RMB) 14,005,559,500.95 13,917,343,301.15 0.63%
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Items and amounts of extraordinary gains or losses
√ Applicable □Not applicable
Unit: RMB
Am ounts for the
period from the
beginning of the
year to the end of
the reporting
Item period Note
Profit or loss from disposal of
non-current assets (including
write-off of provision for assets
impairment) 3,357,994.26
Government grants (except for the
government grants closely related to
the normal operation of the Company
and granted constantly at a fixed
amount or quantity in accordance
with a certain standard based on state
policies) accounted for in profit or
loss for the current period 26,832,002.10
Payment for use of funds from
non-financial institutions accounted
for in profit or loss for the current
period 25,000,000.00
Non-operating gains and losses other
than the above items 2,154,756.87
Less:Effect of income tax 8,763,655.65
Effect of minority interest (after tax) -25,161.25
Total 48,606,258.83 —
Notes for the Company‘s extraordinary gain or loss items as defined in the
Explanatory Announcement on Information Disclosure for Companies Offering
Their Securities to the Public No.1 - Extraordinary Gains or Losses and the
extraordinary gain or loss items as illustrated in the Explanatory Announcement
on Information Disclosure for Companies Offering Their Securities to the Public
No.1 - Extraordinary Gains or Losses defined as its recurring gain or loss items
□ Applicable √Not applicable
No extraordinary gain or loss items as defined or illustrated in the Explanatory
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Announcement on Information Disclosure for Companies Offering Their
Securities to the Public No.1 - Extraordinary Gains or Losses were defined by
the Company as its recurring gain or loss items during the reporting period.
II. Total number of shareholders and the shareholding of the top ten
shareholders as at the end of the reporting period
1. Total number of shareholders of ordinary shares and the shareholding of
the top ten shareholders of ordinary shares as at the end of the reporting
period
Unit: share
Total number of shareholders of ordinary shares as 121,187 holders, of which 94,470 were holders of A shares, 26,175
at the end of the reporting period holders of B shares and 542 holders of H shares.
Shareholding of the top ten shareholders of ordinary shares
Share pledged or
Number of locked-up
Nature of Percentage of Number of Restricted Status of
Name of shareholders shareholders shareholding shares held shares held shares Number
HKSCC NOMINEES Overseas legal 18.11% 350,642,500 0 0
LIMITED person
SHOUGUANG CHENMING State-owned legal 15.13% 293,003,657 0 Pledged 146,500,000
HOLDINGS COMPANY person
LIMITED
PLATINUM ASIA FUND Overseas legal 0.83% 16,165,052 0 0
person
RONGTONG NEW BLUE Others 0.77% 15,000,050 0 0
CHIP SECURITIES
INVESTMENT FUND
BBH A/C VANGUARD Overseas legal 0.54% 10,417,538 0 0
EMERGING MARKETS person
STOCK INDEX FUND
JIN Xing Domestic natural 0.46% 8,899,300 0 0
person
XIAMEN INTERNATIONAL Others 0.39% 7,620,132 0 0
TRUST CO., LTD. —
XIAMEN TRUST —
TIANCHEN NO. 1 NEW
STRUCTURED
SECURITIES
INVESTMENT
ASSEMBLED FUND
TRUST PLAN
CHINA CONSTRUCTION Others 0.33% 6,447,300 0 0
BANK — BANK OF
COMMUNICATIONS
SCHRODERS THEME
SELECTED DYNAMIC
ASSET ALLOCATION
MIXED TYPE FUND
CHEN Hongguo Domestic natural 0.33% 6,434,527 0 0
person
LSV EMERGING MARKETS Overseas legal 0.32% 6,102,800 0 0
EQUITY FUND, L.P. person
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Shareholdings of the top ten shareholders of non-restricted ordinary shares
Number of
non-restricted
ordinary shares Share class
Name of shareholders held Share class Number
HKSCC NOMINEES LIMITED 350,642,500 Overseas listed 350,642,500
foreign shares
SHOUGUANG CHENMING HOLDINGS COMPANY 293,003,657 RMB ordinary 293,003,657
LIMITED shares
PLATINUM ASIA FUND 16,165,052 Domestic listed 16,165,052
foreign shares
RONGTONG NEW BLUE CHIP SECURITIES 15,000,050 RMB ordinary 15,000,050
INVESTMENT FUND shares
BBH A/C VANGUARD EMERGING MARKETS STOCK 10,417,538 Domestic listed 10,417,538
INDEX FUND foreign shares
JIN Xing 8,899,300 RMB ordinary 1,860,500
shares
Domestic listed 7,038,800
foreign shares
XIAMEN INTERNATIONAL TRUST CO., LTD. — 7,620,132 RMB ordinary 7,620,132
XIAMEN TRUST — TIANCHEN NO. 1 NEW shares
STRUCTURED SECURITIES INVESTMENT
ASSEMBLED FUND TRUST PLAN
CHINA CONSTRUCTION BANK — BANK OF 6,447,300 RMB ordinary 6,447,300
COMMUNICATIONS SCHRODERS THEME SELECTED shares
DYNAMIC ASSET ALLOCATION MIXED TYPE FUND
CHEN Hongguo 6,434,527 RMB ordinary 6,434,527
shares
LSV EMERGING MARKETS EQUITY FUND, L.P. 6,102,800 Domestic listed 6,102,800
foreign shares
Connected relationship or connected party relationship Shouguang Chenming Holdings Company, a state-owned legal
among the above shareholders person shareholder, is not connected with any of the
shareholders above. They are not persons acting in concert
under Administration of Disclosure of Information on the
Change of Shareholdings in Listed Companies Procedures.
Save for the above, it is not aware that any other shareholders
of tradable shares are persons acting in concert and it is also
not aware that any other shareholders of tradable shares are
connected with each others.
Whether an agreed repurchase transaction was entered into during the reporting
period by the top ten shareholders of ordinary shares and top ten shareholders of
non-restricted ordinary shares of the Company
□ Yes √No
The top ten shareholders of ordinary shares and the top ten shareholders of non-
restricted ordinary shares of the Company did not enter into any agreed repurchase
transaction during the reporting period.
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
III Material matters
I. Details and reasons for changes of major accounting statement items and
financial indicators during the reporting period
√ Applicable □ Not Applicable
(I) Analysis of the assets and liabilities of the Company
Unit: RMB
Reasons
Item 31 March 2015 31 December 2014 Change for change
Prepayments 3,336,802,106.47 1,838,017,454.90 81.54% (1)
Long-term receivables 1,810,797,634.25 1,420,598,667.99 27.47% (2)
Available-for-sale
financial assets 109,000,000.00 73,000,000.00 49.32% (3)
Bills payable 2,072,049,789.77 1,598,110,792.85 29.66% (4)
Interest payable 270,444,257.14 150,047,305.50 80.24% (5)
Explanation of the reasons leading to the major changes:
(1) Prepayments increased by 81.54% mainly due to an increase in prepayments
for raw materials by the Company and the new financial leasing business of
Financial Leasing Company, a sub-subsidiary of the Company.
(2) Long-term receivables increased by 27.47% mainly due to the new financial
leasing business of Financial Leasing Company, a sub-subsidiary of the
Company.
(3) Available-for-sale financial assets increased by 49.32% mainly due to
investment in Shanghai Leadbank Asset Management Co., Ltd. by Financial
Leasing Company.
(4) Bills payable increased by 29.66% mainly due to an increase in payment for
goods by bills by the Company.
(5) Interest payable increased by 80.24% mainly due to the provision for
interest on corporate bonds and medium-term notes by the Company.
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
(II) Reasons for significant year on year changes of income statement items
during the reporting period
Unit: RMB
Reasons
Item January - March 2015 January - March 2014 Change for change
Business taxes and
surcharges 20,088,579.62 12,633,196.68 59.01% (1)
General and
administrative
expenses 305,525,329.60 242,648,227.81 25.91% (2)
Loss on impairment of
assets -69,943.68 -9,028,147.99 99.23% (3)
Investment income 23,610,110.99 -3,377,138.33 799.12% (4)
Non-operating income 37,469,403.87 176,033,614.08 -78.71% (5)
Non-operating
expenses 935,152.21 7,932,048.84 -88.21% (6)
Income tax expenses 67,828,016.18 21,288,605.27 218.61% (7)
Explanation of the reasons leading to the major changes:
(1) Business taxes and surcharges increased by 59.01% mainly due to the new
financial leasing business of Financial Leasing Company, a sub-subsidiary
of the Company.
(2) General and administrative expenses increased by 25.91% mainly due to the
increase in research and development investment of Meilun Paper and
Zhanjiang Chenming, both subsidiaries of the Company.
(3) Loss on impairment of assets increased by 99.23% mainly due to a lower
decrease of accounts receivable as compared to last year.
(4) Investment income increased by 799.12% mainly due to the loss on disposal
of Shandong Chenming Xinli Power Co., Ltd. incurred by Chenming Power
last year.
(5) Non-operating income decreased by 78.71% mainly due to the gain on
disposal of intangible assets by Jiangxi Chenming, a subsidiary of the
Company, last year.
(6) Non-operating expenses decreased by 88.21% mainly due to the decrease in
loss on disposal of non-current assets by the Company.
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
(7) Income tax expenses increased by 218.61%, mainly due to the higher
profitability level of the Company as compared to last year.
(III) Analysis of cash flows during the reporting period
Unit: RMB
Amounts for the
Amounts for the corresponding period Reasons
Item period of the prior year Change for change
Net cash flows from
operating activities -524,893,745.34 631,844,125.85 -183.07% (1)
Net cash flows from
investing activities -871,978,295.42 -722,180,627.88 -20.74% (2)
Net cash flows from
financial activities 1,430,099,524.47 225,246,123.67 534.91% (3)
Explanation of the reasons leading to the major changes:
(1) Net cash flows from operating activities decreased by 183.07% mainly due
to the new financial leasing business of Financial Leasing Company, a sub-
subsidiary of the Company.
(2) Net cash flows from investing activities decreased by 20.74% mainly due to
the acquisition of fixed assets and intangible assets by the Company for its
projects.
(3) Net cash flows from financial activities increased by 534.91% mainly due to
an increase in borrowings as a result of project investment and the new
financial leasing business of Financial Leasing Company.
II. Progress in respect to material matters and analysis of the related effects
and solutions
√ Applicable □ Not Applicable
Date of
Material matter disclosure Temporary access to disclosure materials
Capital increase of Shandong 27 March 2015 http://www.cninfo.com.cn, announcement number: 2015-009.
Chenming Financial
Leasing Co., Ltd.
Non-public offer of 3 March 2015 http://www.cninfo.com.cn, announcement number: 2015-006.
preference shares 27 March 2015 http://www.cninfo.com.cn, the annual report for 2014.
— 9—
Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
III. Undertakings made by the Company and shareholders interested in 5%
or m ore of the shares of the Company made in the reporting period or
subsisting to the reporting period
√ Applicable □ Not Applicable
Party Particulars on
involved in Undertaking the
Undertaking undertaking Details of undertaking date Term performance
Undertaking on change
in shareholding
structure
Undertaking made in
offering documents or
shareholding
alternation documents
Undertaking made during
asset reconstruction
Undertaking made on Shouguang (1) Shouguang Chenming 22 May 2008 During the Strictly
initial public offering Chenming Holdings Co., Ltd period when implemented
or refinancing Holdings (“Shouguang Chenming Chenming
Co., Ltd. Holdings”) shall not engage, Holdings was
whether solely, jointly, or by the major
representing itself or any shareholder of
other persons or companies, the Company
and shall not procure its
associates (as defined in The
Listing Rules of Hong Kong
Stock Exchange) to engage,
in any business which
competes with the business
of the Company and its
subsidiaries (“Chenming
Group” or “we”) directly or
indirectly, in any country
and region which our
business exists (or any part
of the world if in any form
of electronics business), or
in any business that directly
or indirectly competes with
Chenming Group’s business
which we operate from time
to time (including but not
limited to any business in
the form of sole
proprietorship, joint ventures
or acquisitions, or holding
interests directly or
indirectly in such
enterprises, or by any other
means); (2) in the event that
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Party Particulars on
involved in Undertaking the
Undertaking undertaking Details of undertaking date Term performance
Shouguang Chenming
Holdings is required by its
business to, whether solely,
jointly, or by representing
itself or any other persons or
companies, engage in
business which directly or
indirectly competes against
the business of Chenming
Group, or obtain any
business opportunity which
directly or indirectly
competes against the
business of Chenming Group,
it shall endeavour to procure
that Chenming Group shall
have priority to obtain the
right to operate such
business or to obtain such
business opportunity; (3) if
Shouguang Chenming
Holdings is in breach of the
abovementioned
undertakings, it shall
indemnify the Company for
any loss caused by such
breach and the Company
shall have the right to
acquire all businesses of
Shouguang Chenming
Holdings, which directly or
indirectly compete with the
businesses of our Group, at
market price or cost price
(whichever price is lower);
(4) Shouguang Chenming
Holdings shall not make use
of its position as the
controlling shareholder (as
defined in The Listing Rules
of Hong Kong Stock
Exchange) of our Group to
jeopardise the legal interests
of Chenming Group and its
shareholders with other
persons or companies or on
their behalf.
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Party Particulars on
involved in Undertaking the
Undertaking undertaking Details of undertaking date Term performance
Shouguang (1) According to the plan on 16 January 2008 During the Strictly
Chenming defective properties of the period when implemented
Holdings Company, Shouguang Chenming
Co., Ltd. Chenming Holdings Co., Ltd Holdings was
(“Shouguang Chenming the major
Holdings”) has guaranteed shareholder of
and undertaken that: the Company
according to the application
of the Company, for
defective property(ies)
owned by the Company and
its holding subsidiary
company which situated in
the administrative area of
Shouguang city, Shouguang
Chenming Holdings will
purchase it(them) and have
it(them) being transferred to
itself pursuant to the law in
accordance with the result of
the related asset valuation if
the Company decides to
transfer and dispose of
it(them) and there is no
other transferee; (2) before
the Company transfers and
disposes of the defective
properties pursuant to the
law, if the Company suffers
any economic losses due to
the defects of the title
(including but not limited to
damages, penalties and
relocation costs), Shouguang
Chenming Holdings will bear
such economic losses; (3)
during the regulatory process
taken to the defective
properties of buildings and
land of subsidiaries of the
Company situated outside the
local areas (outside the
administrative area of
Shouguang city), the
economic losses such as
penalties or relocation costs
imposed by competent
administrative authorities to
be borne by the subsidiaries
arising from defects of
insufficient title documents
shall be paid pursuant to the
law by Shouguang Chenming
Holdings after verification.
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Party Particulars on
involved in Undertaking the
Undertaking undertaking Details of undertaking date Term performance
Other undertakings made
to minority
shareholders of the
Company
Does the undertaking Yes
performed timely?
IV. Estimate of the operating results for January - June 2015
Warning of projection on cumulative net profit for the period from the beginning
of the year to the end of the next reporting period to be at a loss or expected to
have material changes as compared to the corresponding period of prior year and
its explanation
□ Applicable √ Not applicable
— 12 —
Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
V. Registration report on reception of research investigations,
communications and interviews during the reporting period
√Applicable □ Not Applicable
Main topics of
discussion and
Date of Place of Manner of Class of parties Parties information
reception reception reception accommodated accommodated provided
13 January 2015 The Company’s On-site research Institution Guotai Junan Recent production
conference room investigation Securities Co. Ltd. and operation of the
Company and
development of the
industry
13 January 2015 The Company’s On-site research Institution 27 fund companies Recent production
conference room investigation including Shenyin and operation of the
Wanguo, BOC Company and
Schroder Fund, development of the
HuaAn Funds, GTJA industry
Allianz Funds,
Fullgoal Fund, Zhong
Ou AMC, Lion Fund,
CPIC, Harfor Fund,
Caitong Securities,
Franklin Templeton
Sealand Fund,
Baoying Fund,
Caitong Fund,
First-Trust Fund,
Tongben Investment,
Oriental Capital,
Minsheng Royal
Fund, HFT
Investment, China
Life Asset
Management, Yongjin
Asset Management,
CICC, ICBCCS,
CITIC PE, China
AMC, Minsen
Investment and
others
28 January 2015 The Company’s On-site research Institution Brilliance Asset Recent production
conference room investigation Management Limited and operation of the
Company and
development of the
industry
— 13 —
Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
IV Financial Statements
I. Financial Statements
1. Consolidated Balance Sheet
Prepared by: Shandong Chenming Paper Holdings Limited
31 March 2015
Unit: RMB
Item Closing balance Opening balance
CURRENT ASSETS:
Monetary funds 6,042,538,416.38 5,475,658,186.10
Balances with clearing companies
Loans to banks and other financial
institutions
Financial assets at fair value through
profit or loss
Derivative financial assets
Bills receivable 3,136,820,296.71 3,047,541,556.15
Accounts receivable 3,349,037,199.28 3,489,409,369.20
Prepayments 3,336,802,106.47 1,838,017,454.90
Premium receivable
Receivables from reinsurers
Reinsurance contract reserves receivable
Interest receivable
Dividend receivable
Other receivables 1,615,934,056.40 1,776,467,886.07
Financial assets purchased under
agreements to resell
Inventories 5,658,072,465.16 5,420,740,468.60
Assets classified as held-for-sale
Non-current assets due within one year 768,789,198.28 865,738,333.65
Other current assets 1,661,284,353.07 1,656,602,232.09
Total current assets 25,569,278,091.75 23,570,175,486.76
NON-CURRENT ASSETS:
Loans and advances to customers
Available-for-sale financial assets 109,000,000.00 73,000,000.00
Held-to-maturity investments
Long-term receivables 1,810,797,634.25 1,420,598,667.99
Long-term equity investments 34,697,959.11 36,087,848.12
Investment properties 17,300,623.90 17,735,187.91
— 14 —
Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Item Closing balance Opening balance
Fixed assets 24,603,892,484.29 24,744,731,705.04
Construction in progress 4,042,366,395.42 3,709,270,828.53
Construction materials 16,977,438.61 22,955,982.38
Disposal of fixed assets
Productive biological assets
Oil and gas assets
Intangible assets 1,412,782,536.26 1,319,104,425.04
Development expenditure
Goodwill 20,283,787.17 20,283,787.17
Long-term prepaid expenses 171,816,557.42 173,690,747.83
Deferred income tax assets 629,501,455.12 620,267,636.44
Other non-current assets 1,194,124,242.00 1,094,124,242.00
Total non-current assets 34,063,541,113.55 33,251,851,058.45
Total assets 59,632,819,205.30 56,822,026,545.21
CURRENT LIABILITIES:
Short-term borrowings 22,981,844,664.35 20,470,296,592.92
Borrowings from the central bank
Customer bank deposits and due to banks
and other financial institutions
Placements from banks and other
financial institutions
Financial liabilities at fair value through
profit or loss
Derivative financial liabilities
Bills payable 2,072,049,789.77 1,598,110,792.85
Accounts payable 3,134,396,967.00 3,408,366,113.93
Advance receipts 297,698,488.85 270,056,726.88
Assets sold under agreements to
repurchase
Handling charges and commission
payable
Staff remuneration payables 160,843,102.24 153,926,042.30
Taxes payable 145,470,305.24 161,100,088.94
Interest payable 270,444,257.14 150,047,305.50
Dividend payable
Other payables 904,132,267.11 783,790,884.61
Due to reinsurers
Insurance contract reserves
Customer brokerage deposits
Securities underwriting brokerage
deposits
— 15 —
Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Item Closing balance Opening balance
Liabilities classified as held-for-sale
Non-current liabilities due within one
year 1,216,071,300.00 1,099,968,900.00
Other current liabilities
Total current liabilities 31,182,951,141.70 28,095,663,447.93
NON-CURRENT LIABILITIES:
Long-term borrowings 4,020,258,245.19 4,378,290,245.19
Bonds payable 5,779,439,377.84 5,777,131,308.01
Of which: Preference shares
Perpetual bonds
Long-term payables
Long-term staff remuneration
Special payables 161,983,516.66 161,983,516.66
Estimated liabilities
Deferred income 1,478,680,394.88 1,476,121,434.78
Deferred income tax liabilities
Other non-current liabilities 2,586,772,020.61 2,584,768,359.64
Total non-current liabilities 14,027,133,555.18 14,378,294,864.28
TOTAL LIABILITIES 45,210,084,696.88 42,473,958,312.21
OWNERS’ EQUITY:
Share capital 1,936,405,467.00 1,936,405,467.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserves 6,149,138,276.81 6,149,136,873.41
Less: Treasury shares
Other comprehensive income 25,840,604.73 33,763,168.13
Special reserves
Surplus reserves 1,132,116,106.40 1,132,116,106.40
General risk provisions
Retained profit 4,762,059,046.01 4,665,921,686.21
Total equity attributable to equity
holders of the company 14,005,559,500.95 13,917,343,301.15
Minority interest 417,175,007.47 430,724,931.85
Total owners’ equity 14,422,734,508.42 14,348,068,233.00
TOTAL LIABILITIES AND OWNERS’
EQUITY (OR SHAREHOLDERS’
EQUITY) 59,632,819,205.30 56,822,026,545.21
Legal Representative: Financial controller: Head of the financial department:
Chen Hongguo Dong Lianming Liu Jun
— 16 —
Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
2. Balance sheet of the Company
Unit: RMB
Item Closing balance Opening balance
CURRENT ASSETS:
Monetary funds 3,053,953,273.89 2,345,637,944.73
Financial assets at fair value through
profit or loss
Derivative financial assets
Bills receivable 1,322,164,856.58 3,516,397,335.06
Accounts receivable 3,315,763,257.07 3,503,819,172.94
Prepayments 2,131,711,303.55 1,734,892,571.69
Interest receivable
Dividend receivable
Other receivables 8,423,290,474.39 9,312,981,273.16
Inventories 953,069,169.97 824,854,551.21
Assets classified as held-for-sale
Non-current assets due within one year 100,000,000.00 300,000,000.00
Other current assets 104,506,996.92 114,216,338.90
Total current assets 19,404,459,332.37 21,652,799,187.69
NON-CURRENT ASSETS:
Available-for-sale financial assets 73,000,000.00 73,000,000.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 12,470,730,481.16 12,370,935,132.02
Investment properties 17,300,623.90 17,735,187.91
Fixed assets 3,261,487,681.99 3,350,685,307.94
Construction in progress 382,940,604.87 323,543,539.92
Construction materials 1,531,214.66 1,564,277.42
Disposal of fixed assets
Productive biological assets
Oil and gas assets
Intangible assets 244,602,799.25 246,581,452.71
Development expenditure
Goodwill
Long-term prepaid expenses
Deferred income tax assets 77,871,589.30 41,033,875.05
Other non-current assets 900,000,000.00 900,000,000.00
Total non-current assets 17,429,464,995.13 17,325,078,772.97
Total assets 36,833,924,327.50 38,977,877,960.66
CURRENT LIABILITIES:
Short-term borrowings 7,915,771,307.60 9,143,654,360.01
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
— 17 —
Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Item Closing balance Opening balance
Bills payable 1,885,419,447.73 680,548,319.01
Accounts payable 675,033,076.00 693,506,846.35
Advance receipts 123,741,251.60 1,724,744.50
Staff remuneration payables 81,827,093.01 75,683,362.25
Taxes payable 17,590,059.86 30,908,886.06
Interest payable 268,724,805.48 150,047,305.50
Dividend payable
Other payables 2,205,930,922.36 4,141,133,979.84
Liabilities classified as held-for-sale
Non-current liabilities due within one
year 595,688,000.00 494,760,000.00
Other current liabilities
Total current liabilities 13,769,725,963.64 15,411,967,803.52
NON-CURRENT LIABILITIES:
Long-term borrowings 523,536,035.94 867,832,035.94
Bonds payable 5,779,439,377.84 5,777,131,308.01
Of which: Preference shares
Perpetual bonds
Long-term payables
Long-term staff remuneration
Special payables
Estimated liabilities
Deferred income 61,947,788.49 44,507,433.25
Deferred income tax liabilities
Other non-current liabilities 2,586,772,020.61 2,584,768,359.64
Total non-current liabilities 8,951,695,222.88 9,274,239,136.84
TOTAL LIABILITIES 22,721,421,186.52 24,686,206,940.36
OWNERS’ EQUITY:
Share capital 1,936,405,467.00 1,936,405,467.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserves 5,938,840,660.10 5,938,839,256.70
Less: Treasury shares
Other comprehensive income
Special reserves
Surplus reserves 1,119,926,524.49 1,119,926,524.49
Retained profit 5,117,330,489.39 5,296,499,772.11
Total owners’ equity 14,112,503,140.98 14,291,671,020.30
TOTAL LIABILITIES AND OWNERS’
EQUITY (OR SHAREHOLDERS’
EQUITY) 36,833,924,327.50 38,977,877,960.66
— 18 —
Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
3. Consolidated income statement
Unit: RMB
Am ounts for the Am ounts for the
Item period prior period
I. Total revenue 4,456,654,640.64 4,078,069,314.47
Including: Revenue 4,456,654,640.64 4,078,069,314.47
Interest income
Earned premium
Handling charges and
commission income
II. Total operating costs 4,366,383,551.69 4,148,662,180.31
Including: Operating costs 3,497,227,557.16 3,344,912,892.71
Interest expenses
Handling charges and
commission expenses
Surrenders
Net claims paid
Net change in insurance
contract reserves
Policyholder dividend
expenses
Expenses for reinsurance
accepted
Business taxes and
surcharges 20,088,579.62 12,633,196.68
Sales and distribution
expenses 245,633,576.10 225,061,937.13
General and
administrative expenses 305,525,329.60 242,648,227.81
Finance expenses 297,978,452.89 332,434,073.98
Loss on impairment of
assets -69,943.68 -9,028,147.99
Plus: Gain on change in fair
value (“-” denotes loss)
Investment income (“-”
denotes loss) 23,610,110.99 -3,377,138.33
Including:Investment
income from associates
and joint ventures -1,389,889.01 -873,265.33
Foreign exchange gains
(“-” denotes loss)
— 19 —
Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Am ounts for the Am ounts for the
Item period prior period
III. Operating profit (“-” denotes loss) 113,881,199.94 -73,970,004.17
Plus: Non-operating income 37,469,403.87 176,033,614.08
Of which: Gain on
disposal of non-current
assets 4,033,128.31 71,464,757.44
Less: Non-operating expenses 935,152.21 7,932,048.84
Including: Loss on
disposal of non-current
assets 675,134.05 7,846,801.90
IV. Total profit (“-” denotes total loss) 150,415,451.60 94,131,561.07
Less: Income tax expenses 67,828,016.18 21,288,605.27
V. Net profit (“-” denotes net loss) 82,587,435.42 72,842,955.80
Net profit attributable to
shareholders of the Company 96,137,359.80 81,273,928.14
Minority interest -13,549,924.38 -8,430,972.34
VI. Total comprehensive income -7,922,563.40 -3,614,222.32
Net other comprehensive income
after tax attributable to
shareholders of the Company -7,922,563.40 -3,614,222.32
(I) Other comprehensive income
that will not be reclassified to
profit and loss in subsequent
periods
1. Change in remeasurement of
net defined benefit liability
or assets
2. Share of other
comprehensive income of
investees that will not be
reclassified to profit and
loss
(II) Other comprehensive income
that will be reclassified to profit
and loss in subsequent periods -7,922,563.40 -3,614,222.32
1. Share of other
comprehensive income of
equity accounted investees
that will be reclassified to
profit and loss in
subsequent periods
2. Gains and losses from
changes in fair value of
available-for-sale financial
assets
— 20 —
Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Am ounts for the Am ounts for the
Item period prior period
3. Gains and losses from
held-to-maturity investment
reclassified as
available-for-sale financial
assets
4. Effective portion of hedging
gains and losses from cash
flows
5. Exchange differences on
translation of foreign
operations -7,922,563.40 -3,614,222.32
6. Others
Net other comprehensive income
after tax attributable to minority
interests
VII. Net other comprehensive income
after tax 74,664,872.02 69,228,733.48
Including:Other comprehensive
income not to be reclassified into
profit or loss in subsequent periods 88,214,796.40 77,659,705.82
Other comprehensive income to be
reclassified into profit or loss after
meeting certain criteria in
subsequent periods -13,549,924.38 -8,430,972.34
VIII.Earnings per share:
(I) Basic earnings per share 0.05 0.04
(II) Diluted earnings per share 0.05 0.04
Legal Representative: Financial controller: Head of the financial department:
Chen Hongguo Dong Lianming Liu Jun
— 21 —
Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
4. Income statement of the Company
Unit: RMB
Am ounts for the Am ounts for the
Item period prior period
I. Revenue 1,429,099,351.71 1,903,584,305.09
Less: Operating costs 1,193,338,115.70 1,513,584,658.28
Business taxes and surcharges 4,138,298.57 7,907,580.86
Sales and distribution
expenses 57,368,291.36 64,359,201.62
General and administrative
expenses 114,067,361.81 129,561,706.59
Finance expenses 300,156,737.38 206,460,474.81
Loss on impairment of assets 2,766,714.01 297,314.42
Plus: Gain on change in fair value
(“-” denotes loss)
Investment income (“-”
denotes loss) 25,697,571.36 11,097,565.47
Including:Investment income
from associates and joint
ventures -204,650.86 343.23
II. Operating profit (“-” denotes loss) -217,038,595.76 -7,489,066.02
Plus: Non-operating income 1,031,598.79 32,419,650.20
Of which: Gain on disposal of
non-current assets 120,755.04 95,194.59
Less: Non-operating expenses 181,032.31
Including: Loss on disposal of
non-current assets
III. Total profit (“-” denotes total loss) -216,006,996.97 24,749,551.87
Less: Income tax expenses -36,837,714.25 -1,330,488.35
IV. Net profit (“-” denotes net loss) -179,169,282.72 26,080,040.22
V. Total comprehensive income
(I) Other comprehensive income
that will not be reclassified to
profit and loss in subsequent
periods
1. Change in remeasurement of
net defined benefit liability
or assets
2. Share of other
comprehensive income of
investees that will not be
reclassified to profit and
loss
— 22 —
Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Am ounts for the Am ounts for the
Item period prior period
(II) Other comprehensive income
that will be reclassified to profit
and loss in subsequent periods
1. Share of other
comprehensive income of
equity accounted investees
that will be reclassified to
profit and loss in
subsequent periods
2. Gains and losses from
changes in fair value of
available-for-sale financial
assets
3. Gains and losses from
held-to-maturity investment
reclassified as
available-for-sale financial
assets
4. Effective portion of hedging
gains and losses from cash
flows
5. Exchange differences on
translation of foreign
operations
6. Others
VI. Net other comprehensive income
after tax -179,169,282.72 26,080,040.22
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated cash flow statement
Unit: RMB
Am ounts for the Am ounts for the
Item period prior period
I. Cash flows from operating activities:
Cash received from sales of goods
and rendering of services 3,310,628,133.75 3,254,244,610.20
Net increase in customer bank
deposits and due to banks and
other financial institutions
Net increase in borrowings from the
central bank
Net increase in placements from
other financial institutions
— 23 —
Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Am ounts for the Am ounts for the
Item period prior period
Cash received from premiums under
original insurance contracts
Net cash received from reinsurance
business
Net increase in deposits from
policyholders
Net increase from disposal of
financial assets at fair value
through profit or loss
Cash received from interest,
handling charges and commissions
Net increase in placements from
banks and other financial
institutions
Net capital increase of repurchase
business
Tax rebates received 4,189,498.43
Cash received relating to other
operating activities 254,802,658.53 54,267,362.88
Subtotal of cash inflows from operating
activities 3,569,620,290.71 3,308,511,973.08
Cash paid for goods and services 2,566,090,649.82 2,198,868,884.22
Net increase in loans and advances to
customers
Net increase in deposits with the
central bank and other financial
institutions
Cash paid for claims under original
insurance contracts
Cash paid for interest, handling charges
and commission
Cash paid for policyholder dividend
Cash paid to and for employees 220,025,493.54 210,850,810.31
Payments of taxes and surcharges 234,920,671.82 212,537,359.84
Cash paid relating to other operating
activities 1,073,477,220.87 54,410,792.86
Subtotal of cash outflows from
operating activities 4,094,514,036.05 2,676,667,847.23
Net cash flows from operating
activities -524,893,745.34 631,844,125.85
II. Cash flows from investment
activities:
Cash received from investments
— 24 —
Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Am ounts for the Am ounts for the
Item period prior period
Cash received from investment
income
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets 107,087,245.87
Net cash received from disposal of
subsidiaries and other business
units 38,097,000.00
Cash received relating to other
investment activities 26,736,688.00 230,778,041.00
Subtotal of cash inflows from investment
activities 26,736,688.00 375,962,286.87
Cash paid for purchase of fixed
assets, intangible assets and other
long-term assets 862,714,983.42 596,984,126.16
Cash paid on investments 36,000,000.00
Net increase in pledged loans
Net cash paid for acquisition of
subsidiaries and other business
units
Cash paid relating to other
investment activities 501,158,788.59
Subtotal of cash outflows from
investment activities 898,714,983.42 1,098,142,914.75
Net cash flows from investment activities -871,978,295.42 -722,180,627.88
— 25 —
Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Am ounts for the Am ounts for the
Item period prior period
III. Cash flows from financing activities:
Cash received from capital
contribution
Including: cash received from
minority interest contribution to
subsidiaries
Cash received from borrowings 10,500,861,896.01 4,163,220,000.91
Cash received from bonds issue
Cash received relating to other
financing activities 117,626,757.04
Subtotal of cash inflows from
financing activities 10,500,861,896.01 4,280,846,757.95
Cash repayments on borrowing 8,230,839,228.84 3,592,001,541.79
Cash paid for dividend and profit
distribution or interest payment 303,634,305.57 271,198,731.49
Including: dividend and profit paid
to minority interest by subsidiaries
Cash paid relating to other financing
activities 536,288,837.13 192,400,361.00
Subtotal of cash outflows from financing
activities 9,070,762,371.54 4,055,600,634.28
Net cash flows from financing activities 1,430,099,524.47 225,246,123.67
IV. Effect of changes in foreign
exchange rate on cash and cash
equivalents -2,520,750.56 -8,617,565.75
V. Net increase in cash and cash
equivalents 30,706,733.15 126,292,055.89
Plus: Balance of cash and cash
equivalents as at the
beginning of the period 976,096,861.30 726,532,928.95
VI. Balance of cash and cash equivalents
as at the end of the period 1,006,803,594.45 852,824,984.84
— 26 —
Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
6. Cash flow statement of the Company
Unit: RMB
Am ounts for the Am ounts for the
Item period prior period
I. Cash flows from operating activities:
Cash received from sales of goods
and rendering of services 1,335,298,909.11 1,554,908,976.13
Tax rebates received
Cash received relating to other
operating activities 67,639,715.08 42,325,614.38
Subtotal of cash inflows from operating
activities 1,402,938,624.19 1,597,234,590.51
Cash paid for goods and services 1,093,277,248.24 1,742,167,010.96
Cash paid to and for employees 93,268,283.43 101,860,522.50
Payments of taxes and surcharges 43,101,335.55 96,035,474.74
Cash paid relating to other operating
activities 83,754,202.09 -643,175,490.68
Subtotal of cash outflows from operating
activities 1,313,401,069.31 1,296,887,517.52
Net cash flows from operating activities 89,537,554.88 300,347,072.99
II. Cash flows from investment
activities:
Cash received from investments 200,000,000.00 280,000,000.00
Cash received from investment
income 903,625.62 1,375,000.00
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets 120.00
Net cash received from disposal of
subsidiaries and other business
units
Cash received relating to other
investment activities
Subtotal of cash inflows from investment
activities 200,903,625.62 281,375,120.00
Cash paid for purchase of fixed
assets, intangible assets and other
long-term assets 67,855,336.46 154,880,130.57
Cash paid on investments 100,000,000.00 220,889,592.00
— 27 —
Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
Am ounts for the Am ounts for the
Item period prior period
Net cash paid for acquisition of
subsidiaries and other business
units
Cash paid relating to other
investment activities 500,000,000.00
Subtotal of cash outflows from
investment activities 167,855,336.46 875,769,722.57
Net cash flows from investment
activities 33,048,289.16 -594,394,602.57
III. Cash flows from financing activities:
Cash received from capital
contribution
Cash received from borrowings 4,074,882,356.80 2,966,288,013.90
Cash received from bonds issue
Cash received relating to other
financing activities 113,585,517.09
Subtotal of cash inflows from
financing activities 4,188,467,873.89 2,966,288,013.90
Cash repayments on borrowing 3,386,031,450.00 2,497,163,624.96
Cash paid for dividend and profit
distribution or interest payment 98,696,087.83 78,238,444.72
Cash paid relating to other financing
activities 108,171,440.69
Subtotal of cash outflows from financing
activities 3,484,727,537.83 2,683,573,510.37
Net cash flows from financing activities 703,740,336.06 282,714,503.53
IV. Effect of changes in foreign
exchange rate on cash and cash
equivalents -4,425,333.85 -3,794,125.42
V. Net increase in cash and cash
equivalents 821,900,846.25 -15,127,151.47
Plus: Balance of cash and cash
equivalents as at the
beginning of the period 40,590,357.33 64,392,029.09
VI. Balance of cash and cash equivalents
as at the end of the period 862,491,203.58 49,264,877.62
— 28 —
Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
II. Auditors’ Report
Has the first quarter report already been audited yet?
□ Yes √ No
The first quarter report of the Company is unaudited.
SHANDONG CHENMING PAPER HOLDINGS LIMITED
27 April 2015
— 29 —