Report for the First Quarter of 2016 of Shandong Chenming Paper Holdings Limited
SHANDONG CHENMING PAPER HOLDINGS LIMITED *
2016 First Quarterly Report
April 2016
— 1 —
Report for the First Quarter of 2016 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 quarterly report are true,
accurate and complete, and there are no false representations, misleading
statements or material omissions, and are jointly and severally responsible
for the liabilities of the Company.
All Directors were present at the Board meeting to consider and approve this
quarterly report.
Chen Hongguo, the head of the Company, Dong Lianming, the head in
charge of accounting, and Li Dong, the head of the accounting department
(Accounting Officer), declare that they warrant the truthfulness, accuracy
and completeness of the financial statements in this quarterly report.
— 2 —
Report for the First Quarter of 2016 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
The reporting Corresponding period of the
period period of prior year prior year
Revenue (RMB) 4,951,931,256.74 4,456,654,640.64 11.11%
Net profit attributable to
shareholders of the
Company (RMB) 402,131,344.77 96,137,359.80 318.29%
Net profit after
extraordinary gains or
losses attributable to
shareholders of the
Company (RMB) 292,898,560.63 47,531,100.97 516.23%
Net cash flows from
operating activities (RMB) -3,936,890,898.29 -549,893,745.34 -615.94%
Basic earnings per share
(RMB per share) 0.18 0.05 260.00%
Diluted earnings per share
(RMB per share) 0.18 0.05 260.00%
Rate of return on net assets
on weighted average basis 2.48% 0.69% 1.79%
Increase/decrease as
at the end of the
reporting period
As at the end of As at the end of compared to the end
the reporting period the prior year of the prior year
Total assets (RMB) 83,937,169,224.58 77,961,699,547.59 7.66%
Net assets attributable to
shareholders of the
Company (RMB) 19,542,206,733.20 16,871,494,584.82 15.83%
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Report for the First Quarter of 2016 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) 423,932.82
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 116,605,070.58
Gain or loss from debt restructuring -76,923.05
Gain or loss on external entrusted loans 22,750,000.00
Non-operating income and expenses other
than the above items 3,416,483.00
Less: Effect of income tax 33,499,392.38
Effect of minority interest (after tax) 386,386.83
Total 109,232,784.14 —
Notes for the Company’s extraordinary gain or loss items as defined in the
Explanatory Announcement on Information Disclosure for Companies Offering
Their Securities to the Public No.1 - Extraordinary Gains or Losses and the
extraordinary gain or loss items as illustrated in the Explanatory Announcement
on Information Disclosure for Companies Offering Their Securities to the Public
No.1 - Extraordinary Gains or Losses defined as its recurring gain or loss items.
□ Applicable √ Not applicable
No extraordinary gain or loss items as defined or illustrated in the Explanatory
Announcement on Information Disclosure for Companies Offering Their
Securities to the Public No.1 - Extraordinary Gains or Losses were defined by
the Company as its recurring gain or loss items during the reporting period.
— 4 —
Report for the First Quarter of 2016 of Shandong Chenming Paper Holdings Limited
II. Total number of shareholders and the shareholding of the top ten
shareholders as at the end of the reporting period
1. Number of shareholders of ordinary shares and shareholders of preference
shares with restored voting rights and the shareholding of the top ten
shareholders
Unit: share
Total number of shareholders 101,938, of which 75,712 were Total number of shareholders of 0
of ordinary shares as at holders of A shares, 25,722 preference shares with restored
the end of the reporting were holders of B shares and voting right as at the end of the
period 504 were holders of H shares reporting period (if any)
Shareholding of top 10 shareholders
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
SHOUGUANG CHENMING State-owned legal 15.13% 293,003,657 0 Pledged 120,000,000
HOLDINGS COMPANY person
LIMITED
HKSCC NOMINEES Overseas legal 14.03% 271,771,900 0
LIMITED person
CHENMING HOLDINGS Overseas legal 5.22% 101,110,923 0
(HONG KONG) LIMITED person
CENTRAL HUIJIN ASSET State-owned legal 2.07% 40,137,900 0
MANAGEMENT LTD. person
NATIONAL SOCIAL Funds, wealth 1.51% 29,261,612 0
SECURITY FUND 110 management
products etc.
HUATAI SECURITIES CO., Domestic ordinary 1.10% 21,262,114 0
LTD. legal person
CHINA CONSTRUCTION Funds, wealth 0.58% 11,253,971 0
BANK CORPORATION — management
ABC-CA SMALL AND products etc.
MEDIUM CAP EQUITY
FUND
BOSERA FUNDS — BANK Funds, wealth 0.52% 10,000,000 0
OF CHINA — PING AN management
LIFE INSURANCE — products etc.
PING AN LIFE
INSURANCE
ENTRUSTED
INVESTMENT NO.1
ASSET MANAGEMENT
PLAN
POSTAL SAVINGS BANK Funds, wealth 0.51% 9,905,595 0
OF CHINA CO., LTD. — management
ABC-CA CONSUMPTION products etc.
THEME EQUITY FUND
BBH A/C VANGUARD Overseas legal 0.44% 8,608,238 0
EMERGING MARKETS person
STOCK INDEX FUND
— 5 —
Report for the First Quarter of 2016 of Shandong Chenming Paper Holdings Limited
Shareholding of the top ten shareholders of non-restricted shares
Number of
non-restricted Class of shares
Name of shareholders shares held Class of shares Number
SHOUGUANG CHENMING HOLDINGS COMPANY 293,003,657 RMB ordinary 293,003,657
LIMITED shares
HKSCC NOMINEES LIMITED 271,771,900 Overseas listed 271,771,900
foreign shares
CHENMING HOLDINGS (HONG KONG) LIMITED 101,110,923 Domestic listed 21,910,923
foreign shares
Overseas listed 79,200,000
foreign shares
CENTRAL HUIJIN ASSET MANAGEMENT LTD. 40,137,900 RMB ordinary 40,137,900
shares
NATIONAL SOCIAL SECURITY FUND 110 29,261,612 RMB ordinary 29,261,612
shares
HUATAI SECURITIES CO., LTD. 21,262,114 RMB ordinary 21,262,114
shares
CHINA CONSTRUCTION BANK CORPORATION — 11,253,971 RMB ordinary 11,253,971
ABC-CA SMALL AND MEDIUM CAP EQUITY FUND shares
BOSERA FUNDS-BANK OF CHINA — PING AN LIFE 10,000,000 RMB ordinary 10,000,000
INSURANCE — PING AN LIFE INSURANCE shares
ENTRUSTED INVESTMENT NO.1 ASSET
MANAGEMENT PLAN
POSTAL SAVINGS BANK OF CHINA CO., LTD. — ABC- 9,905,595 RMB ordinary 9,905,595
CA CONSUMPTION THEME EQUITY FUND shares
BBH A/C VANGUARD EMERGING MARKETS STOCK 8,608,238 Domestic listed 8,608,238
INDEX FUND foreign shares
Connected relationship or connected party relationship A shareholder, Chenming Holdings (Hong Kong) Limited,
among the above shareholders which is an overseas legal person, is a wholly-owned
subsidiary of a shareholder, Shouguang Chenming Holdings
Company Limited, which is a state-owned legal person. Hence
they are persons acting in concert under Administration of
Disclosure of Information on the Change of Shareholding 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 other.
Whether an agreed repurchase transaction was entered into during the reporting
period by the top 10 ordinary shareholders and top 10 shareholders of non-
restricted shares of the Company
□ Yes √ No
The top 10 ordinary shareholders and top 10 shareholders of non-restricted
ordinary shares of the Company did not enter into any agreed repurchase
transaction during the reporting period.
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Report for the First Quarter of 2016 of Shandong Chenming Paper Holdings Limited
2. Total number of shareholders of preference shares and shareholding of the
top ten shareholders of preference shares
√ Applicable □ No applicable
Unit: share
Total number of shareholders of preference shares as at the end of the reporting
period 5
Shareholding of the top ten shareholders of preference 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
GUOXIN LEASING CO., Domestic ordinary 35.56% 8,000,000 0 — —
LTD. legal person
QILU BANK CO., LTD. — Fund, wealth 26.67% 6,000,000 0 — —
QILU BANK QUANXIN management
WEALTH product etc.
MANAGEMENT
PRODUCT SERIES
LAIWU GUANGYANG Domestic ordinary 20.00% 4,500,000 0 — —
INVESTMENT CO., LTD. legal person
SHANDONG DONGTAI Domestic ordinary 8.89% 2,000,000 0 — —
IMPORT AND EXPORT legal person
CO., LTD.
SHANDONG TAISHAN Domestic ordinary 8.89% 2,000,000 0 — —
STEEL GROUP legal person
COMPANY LIMITED
Shareholding of the top ten shareholders of non-restricted preference shares
Total number of non-restricted
Name of shareholders preference shares held
GUOXIN LEASING CO., LTD. 8,000,000
QILU BANK CO., LTD. — QILU BANK QUANXIN WEALTH 6,000,000
MANAGEMENT PRODUCT SERIES
LAIWU GUANGYANG INVESTMENT CO., LTD. 4,500,000
SHANDONG DONGTAI IMPORT AND EXPORT CO., LTD. 2,000,000
SHANDONG TAISHAN STEEL GROUP COMPANY LIMITED 2,000,000
Connected relationship or connected party relationship among the above It is not aware that the above
shareholders shareholders of preference shares are
persons acting in concert and it is also
not aware that the above shareholders of
preference shares are connected with
each other.
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Report for the First Quarter of 2016 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
Reason for
Item 31 March 2016 31 December 2015 Change change
Prepayments 1,677,854,473.94 1,072,990,234.05 56.37% (1)
Non-current assets due
within one year 4,301,273,250.54 2,893,133,653.86 48.67% (2)
Other current assets 9,474,404,485.90 7,582,839,356.54 24.95% (3)
Staff remuneration
payables 149,143,065.75 205,840,694.03 -27.54% (4)
Interest payable 268,753,198.21 150,075,698.23 79.08% (5)
Long-term payables 575,500,000.00 344,000,000.00 67.30% (6)
Special payables 281,039,716.66 176,983,516.66 58.79% (7)
Other equity
instruments 4,821,550,000.00 2,582,800,000.00 86.68% (8)
Explanation of the reasons leading to the major changes:
(1) Prepayments increased by 56.37% as compared to the beginning of the year
mainly due to an increase in prepayments for raw materials.
(2) Non-current assets due within one year increased by 48.67% as compared
with the beginning of the year mainly due to an increase in long term finance
lease payments due within one year.
(3) Other current assets increased by 24.95% as compared to the beginning of
the year mainly due to an increase in receivables under financial lease due
within one year.
(4) Staff remuneration payables decreased by 27.54% as compared to the
beginning of the year mainly due to the payment of year-end bonus at the
beginning of the year.
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Report for the First Quarter of 2016 of Shandong Chenming Paper Holdings Limited
(5) Interest payables increased by 79.08% as compared to the beginning of the
year mainly due to the accrued interests of corporate bonds and medium-
term notes.
(6) Long-term payables increased by 67.30% as compared to the beginning of
the year mainly due to the special funds from China Development Bank of
RMB200 million received by Zhanjiang Chenming, a subsidiary of the
Company.
(7) Special payables increased by 58.79% as compared to the beginning of the
year mainly due to the government special fund of RMB104 million received
by Huanggang Chenming, a subsidiary of the Company.
(8) Other equity instruments increased by 86.68% as compared to the beginning
of the year mainly due to the issue of preference shares in the amount of
RMB2,250 million.
(II) Reasons for significant year on year changes of income statement items
during the reporting period
Unit: RMB
Reasons
Item January - March 2016 January - March 2015 Change for change
Business taxes and
surcharges 35,522,816.60 20,088,579.62 76.83% (1)
Finance expenses 492,709,119.49 297,978,452.89 65.35% (2)
Investment income 14,515,005.16 23,610,110.99 -38.52% (3)
Non-operating income 122,346,818.32 37,469,403.87 226.52% (4)
Income tax expenses 163,276,472.80 67,828,016.18 140.72% (5)
Explanation of the reasons leading to the major changes:
(1) Business taxes and surcharges increased by 76.83% as compared to the
corresponding period of last year mainly due to a year-on-year increase in
financial leasing business of the Company.
(2) Finance expenses increased by 65.35% as compared to the corresponding
period of last year mainly due to an increase in interest expenses and
exchange loss.
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Report for the First Quarter of 2016 of Shandong Chenming Paper Holdings Limited
(3) Investment income decreased by 38.52% as compared to the corresponding
period of last year mainly due to an increase in investment loss from long-
term equity investments accounted for using the equity method.
(4) Non-operating income increased by 226.52% as compared to the
corresponding period of last year mainly due to an increase in the
government subsidies received by the Company.
(5) Income tax expenses increased by 140.72% as compared to the
corresponding period of last year mainly due to the higher profitability of
the Company.
(III) Analysis of cash flows during the reporting period
Unit: RMB
Reasons
Item January - March 2016 January - March 2015 Change for change
Net cash flows from
operating activities -3,936,890,898.29 -549,893,745.34 -615.94% (1)
Net cash flows from
investment activities -447,467,552.31 -846,978,295.42 47.17% (2)
Net cash flows from
financing activities 4,315,067,987.52 1,430,099,524.47 201.73% (3)
Explanation of the reasons leading to the major changes:
(1) Net cash flows from operating activities decreased by 615.94% mainly due
to an increase in external investment of the financial leasing business.
(2) Net cash flows from investing activities increased by 47.17% mainly due to
a decrease in cash paid for construction of fixed assets during the period.
(3) Net cash flows from financial activities increased by 201.73% mainly due to
the issue of short-term commercial paper and preference shares during the
period.
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Report for the First Quarter of 2016 of Shandong Chenming Paper Holdings Limited
II. Progress in respect to material matters and analysis of the related effects
and solutions
√ Applicable □ Not applicable
1. Report on details of changes of equity.
2. Prospectus of non-public issue of preference shares and report on non-public
issue of preference shares.
3. Notice on replacement of self-raised funds invested in advance to projects
with proceeds from issue of preference shares.
4. Notice on obtaining high and new tech enterprise qualifications for the
Company and its subsidiaries.
5. Transfer announcement on non-public issue of preference shares.
6. Proposal of non-public issue of shares for 2016.
Material matter Date of disclosure Search index of the ad-hoc report disclosure website
Report on non-public issue of 25 March 2016 http://www.cninfo.com.cn
preference shares
Prospectus of non-public 25 March 2016 http://www.cninfo.com.cn
issue of preference shares
Report on details of changes 15 January 2016 http://www.cninfo.com.cn
of equity
Notice on replacement of 25 March 2016 http://www.cninfo.com.cn
self-raised funds invested
in advance to projects with
proceeds from issue of
preference shares.
Notice on obtaining high and 29 March 2016 http://www.cninfo.com.cn
new tech enterprise
qualifications for
subsidiaries
Notice on obtaining high and 2 April 2016 http://www.cninfo.com.cn
new tech enterprise
qualifications for the
Company and its
subsidiaries
Transfer announcement on 7 April 2016 http://www.cninfo.com.cn
non-public issue of
preference shares
Proposal of non-public issue 16 April 2016 http://www.cninfo.com.cn
of shares for 2016
— 10 —
Report for the First Quarter of 2016 of Shandong Chenming Paper Holdings Limited
III. Undertakings made by the Company, shareholders, beneficial controllers,
bidders, directors, supervisors, senior management or other related parties
during the reporting period or prior periods but subsisting to the end of the
reporting period
√ Applicable □ Not applicable
Particulars
Party involved Type of Undertaking on the
Undertaking in undertaking undertaking Details of undertaking date Term performance
Undertaking on
shareholding
structure
reformation
Undertaking made in
offering
documents or
shareholding
alternation
documents
Undertaking made
during asset
reconstruction
Undertaking made on Shouguang Non-competitive (1) Shouguang Chenming Holdings Co., Ltd. 22 May 2008 9999-12-31 Strictly
initial public Chenming undertaking (“Shouguang Chenming Holdings”) shall not engage, implemented
offering or Holdings Co., whether solely, jointly, or by representing itself or any
refinancing Ltd. other persons or companies, 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 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
Company to jeopardise the legal interests of Chenming
Group and its shareholders with other persons or
companies or on their behalf.
— 11 —
Report for the First Quarter of 2016 of Shandong Chenming Paper Holdings Limited
Particulars
Party involved Type of Undertaking on the
Undertaking in undertaking undertaking Details of undertaking date Term performance
Shouguang Defective (1) According to the plan on defective properties of the 16 January 9999-12-31 Strictly
Chenming properties Company, Shouguang Chenming Holdings Co., Ltd. 2008 implemented
Holdings Co., (“Shouguang Chenming Holdings”) has guaranteed and
Ltd. undertaken that: 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.
Equity incentive undertaking
Other undertakings The Company Undertaking of Taking into consideration the dilution of the current 25 March 9999-12-31 Strictly
made to minority specific remedial return of shareholders of ordinary shares due to the issue 2016 implemented
shareholders of measures in the of preference shares, in order to maintain compliance
the Company non-public issue with the Opinions of the General Office of the State
of preference Council on Further Strengthening the Protection of
shares Legitimate Rights and Interests of Small and Medium
Investors in Capital Market, protect the interests of
shareholders of ordinary shares and make up for the
potential loss of current return due to the issue of
preference shares, the Company has undertaken to adopt
various measures to ensure the effective use of proceeds,
prevent the dilution of the current return and enhance
future profitability.
Does the undertaking Yes
performed timely?
IV. Estimate of the operating results for January - June 2016
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 2016 of Shandong Chenming Paper Holdings Limited
V. Security investments
□ Applicable √ Not applicable
The Company did not have any security investments during the reporting period.
VI. Derivatives investments
□ Applicable √ Not applicable
The Company did not have any derivative investments during the reporting
period.
VII. Registration report on reception of research investigations, communications
and interviews during the reporting period
□ Applicable √ Not applicable
The Company did not have any reception of research investigations,
communications and interviews during the reporting period.
VIII. External guarantees against the rules and regulations
□ Applicable √ Not applicable
There was no external guarantee provided by the Company which was against the
rules and regulations during the reporting period.
IX. Appropriation of funds of the Company by the controlling shareholder and
its related parties for non-operating purposes
□ Applicable √ Not applicable
There was no appropriation of funds of the Company by the controlling
shareholder and its related parties for non-operating purposes during the
reporting period.
— 13 —
Report for the First Quarter of 2016 of Shandong Chenming Paper Holdings Limited
IV Financial Statements
I. Financial Statements
1. Consolidated Balance Sheet
Prepared by: Shandong Chenming
Paper Holdings Limited 27 April 2016 Unit: RMB
Item Closing balance Opening balance
CURRENT ASSETS:
Monetary funds 10,267,015,030.65 8,984,326,016.01
Bills receivable 3,478,549,361.26 3,998,782,845.65
Accounts receivable 3,724,327,434.17 3,951,287,979.32
Prepayments 1,677,854,473.94 1,072,990,234.05
Other receivables 1,498,607,163.03 1,469,573,364.01
Inventories 5,706,431,874.90 5,210,917,891.42
Non-current assets due within one year 4,301,273,250.54 2,893,133,653.86
Other current assets 9,474,404,485.90 7,582,839,356.54
Total current assets 40,128,463,074.39 35,163,851,340.86
NON-CURRENT ASSETS:
Available-for-sale financial assets 109,000,000.00 109,000,000.00
Long-term receivables 9,756,483,234.34 9,084,087,143.84
Long-term equity investments 62,257,261.54 70,492,256.38
Investment properties 15,562,367.86 15,996,931.87
Fixed assets 25,324,396,769.40 24,169,725,529.18
Construction in progress 5,052,823,935.13 5,829,619,258.48
Construction materials 15,313,344.78 14,662,116.76
Intangible assets 1,465,086,590.80 1,462,706,060.63
Goodwill 20,283,787.17 20,283,787.17
Long-term prepaid expenses 163,861,198.68 165,686,946.61
Deferred income tax assets 576,740,667.24 613,229,310.48
Other non-current assets 1,246,896,993.25 1,242,358,865.33
Total non-current assets 43,808,706,150.19 42,797,848,206.73
Total assets 83,937,169,224.58 77,961,699,547.59
CURRENT LIABILITIES:
Short-term borrowings 26,893,983,032.11 24,755,535,672.86
Bills payable 2,727,424,310.36 3,281,599,412.31
Accounts payable 2,772,219,064.36 2,942,337,386.57
Advance receipts 179,807,515.49 180,504,227.01
Staff remuneration payables 149,143,065.75 205,840,694.03
— 14 —
Report for the First Quarter of 2016 of Shandong Chenming Paper Holdings Limited
Item Closing balance Opening balance
Taxes payable 181,935,811.06 194,852,483.80
Interest payable 268,753,198.21 150,075,698.23
Other payables 1,044,877,474.87 1,158,567,353.38
Non-current liabilities due within one
year 5,510,489,598.09 5,471,286,735.91
Other current liabilities 11,339,643,852.55 10,293,543,297.00
Total current liabilities 51,068,276,922.85 48,634,142,961.10
NON-CURRENT LIABILITIES:
Long-term borrowings 5,723,355,303.19 5,169,381,063.83
Bonds payable 3,790,965,390.33 3,788,539,249.59
Long-term payables 575,500,000.00 344,000,000.00
Special payables 281,039,716.66 176,983,516.66
Deferred income 1,482,678,540.40 1,495,104,889.26
Other non-current liabilities 1,097,029,323.85 1,094,621,421.67
Total non-current liabilities 12,950,568,274.43 12,068,630,141.01
TOTAL LIABILITIES 64,018,845,197.28 60,702,773,102.11
OWNERS’ EQUITY:
Share capital 1,936,405,467.00 1,936,405,467.00
Other equity instruments 4,821,550,000.00 2,582,800,000.00
Including: Preference shares 2,238,750,000.00
Perpetual bonds 2,582,800,000.00 2,582,800,000.00
Capital reserves 6,149,150,177.41 6,149,138,276.81
Other comprehensive income -315,195,961.25 -345,014,864.26
Surplus reserves 1,132,116,106.40 1,132,116,106.40
Retained profit 5,818,180,943.64 5,416,049,598.87
Total equity attributable to equity holders
of the company 19,542,206,733.20 16,871,494,584.82
Minority interest 376,117,294.10 387,431,860.66
Total owners’ equity 19,918,324,027.30 17,258,926,445.48
TOTAL LIABILITIES AND OWNERS’
EQUITY 83,937,169,224.58 77,961,699,547.59
Legal Representative: Financial controller: Head of the financial department:
Chen Hongguo Dong Lianming Li Dong
— 15 —
Report for the First Quarter of 2016 of Shandong Chenming Paper Holdings Limited
2. Balance sheet of the Company
Unit: RMB
Item Closing balance Opening balance
CURRENT ASSETS:
Monetary funds 6,133,913,445.75 5,700,832,345.61
Bills receivable 1,164,207,980.20 1,279,192,805.78
Accounts receivable 1,975,799,365.89 2,054,668,707.47
Prepayments 447,927,976.96 354,158,061.49
Dividend receivable 200,000,000.00 200,000,000.00
Other receivables 26,620,482,717.26 23,168,599,276.40
Inventories 985,568,253.62 770,515,314.04
Other current assets 44,180,954.64
Total current assets 37,527,899,739.68 33,572,147,465.43
NON-CURRENT ASSETS:
Available-for-sale financial assets 73,000,000.00 73,000,000.00
Long-term equity investments 13,526,805,786.90 13,526,953,706.49
Investment properties 15,562,367.86 15,996,931.87
Fixed assets 3,437,958,940.77 3,494,527,564.35
Construction in progress 46,248,610.20 39,945,237.44
Construction materials 1,474,496.52 1,480,399.83
Intangible assets 306,826,923.81 308,890,444.95
Deferred income tax assets 172,324,319.57 146,800,984.93
Other non-current assets 900,000,000.00 900,000,000.00
Total non-current assets 18,480,201,445.63 18,507,595,269.86
Total assets 56,008,101,185.31 52,079,742,735.29
CURRENT LIABILITIES:
Short-term borrowings 6,835,568,779.22 7,288,876,600.43
Bills payable 2,665,000,000.00 1,095,500,000.00
Accounts payable 1,069,714,091.21 952,024,758.38
Advance receipts 1,027,687,307.45 735,151,335.79
Staff remuneration payables 48,925,784.73 84,950,702.67
Taxes payable 22,185,163.09 37,964,445.54
Interest payable 268,753,198.21 150,075,698.23
Other payables 3,421,944,576.34 4,342,643,198.14
Non-current liabilities due within
one year 4,337,402,982.33 4,339,346,982.33
Other current liabilities 11,339,643,852.55 10,293,543,297.00
Total current liabilities 31,036,825,735.13 29,320,077,018.51
— 16 —
Report for the First Quarter of 2016 of Shandong Chenming Paper Holdings Limited
Item Closing balance Opening balance
NON-CURRENT LIABILITIES:
Long-term borrowings 1,136,014,913.83 1,051,891,417.64
Bonds payable 3,790,965,390.33 3,788,539,249.59
Deferred income 60,589,453.87 61,468,322.53
Other non-current liabilities 1,097,029,323.85 1,094,621,421.67
Total non-current liabilities 6,084,599,081.88 5,996,520,411.43
TOTAL LIABILITIES 37,121,424,817.01 35,316,597,429.94
OWNERS’ EQUITY:
Share capital 1,936,405,467.00 1,936,405,467.00
Other equity instruments 4,821,550,000.00 2,582,800,000.00
Including: Preference shares 2,238,750,000.00
Perpetual bonds 2,582,800,000.00 2,582,800,000.00
Capital reserves 5,938,852,560.70 5,938,840,660.10
Surplus reserves 1,119,926,524.49 1,119,926,524.49
Retained profit 5,069,941,816.11 5,185,172,653.76
Total owners’ equity 18,886,676,368.30 16,763,145,305.35
TOTAL LIABILITIES AND OWNERS’
EQUITY 56,008,101,185.31 52,079,742,735.29
— 17 —
Report for the First Quarter of 2016 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 4,951,931,256.74 4,456,654,640.64
Including: Revenue 4,951,931,256.74 4,456,654,640.64
II. Total operating costs 4,534,400,365.69 4,366,383,551.69
Including: Operating costs 3,427,558,022.08 3,497,227,557.16
Business taxes and
surcharges 35,522,816.60 20,088,579.62
Sales and distribution
expenses 254,937,855.85 245,633,576.10
General and administrative
expenses 327,367,757.71 305,525,329.60
Finance expenses 492,709,119.49 297,978,452.89
Loss on impairment of
assets -3,695,206.04 -69,943.68
Plus: Gain on change in fair value
(“-” denotes loss)
Investment income
(“-” denotes loss) 14,515,005.16 23,610,110.99
Including: Investment income
from associates and
joint ventures -8,234,994.84 -1,389,889.01
III. Operating profit (“-” denotes loss) 432,045,896.21 113,881,199.94
Plus: Non-operating income 122,346,818.32 37,469,403.87
Including: Gain on disposal of
non-current assets 631,136.62 4,033,128.31
Less: Non-operating expenses 299,463.53 935,152.21
Including: Loss on disposal of
non-current assets 207,203.80 675,134.05
IV. Total profit (“-” denotes total loss) 554,093,251.00 150,415,451.60
Less: Income tax expenses 163,276,472.80 67,828,016.18
V. Net profit (“-” denotes net loss) 390,816,778.20 82,587,435.42
Net profit attributable to shareholders
of the Company 402,131,344.77 96,137,359.80
Profit or loss of minority interest -11,314,566.57 -13,549,924.38
VI. Net other comprehensive income after
tax 29,818,903.01 -7,922,563.40
— 18 —
Report for the First Quarter of 2016 of Shandong Chenming Paper Holdings Limited
Am ounts for the Am ounts for the
Item period prior period
Net other comprehensive income after
tax attributable to shareholders of
the Company 29,818,903.01 -7,922,563.40
Other comprehensive income that will
be reclassified to profit or loss in
subsequent periods 29,818,903.01 -7,922,563.40
Exchange differences on translation
of foreign operations 29,818,903.01 -7,922,563.40
VII. Total comprehensive income 420,635,681.21 74,664,872.02
Total other comprehensive income
attributable to shareholders of the
Company 431,950,247.78 88,214,796.40
Total comprehensive income
attributable to minority interest -11,314,566.57 -13,549,924.38
VIII.Earnings per share:
(I) Basic earnings per share 0.18 0.05
(II) Diluted earnings per share 0.18 0.05
Legal Representative: Financial controller: Head of the financial department:
Chen Hongguo Dong Lianming Li Dong
— 19 —
Report for the First Quarter of 2016 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 1,624,983,408.12 1,429,099,351.71
Less: Operating costs 1,334,992,670.50 1,193,338,115.70
Business taxes and surcharges 3,499,786.77 4,138,298.57
Sales and distribution
expenses 57,086,536.90 57,368,291.36
General and administrative
expenses 125,978,458.42 114,067,361.81
Finance expenses 273,560,487.30 300,156,737.38
Loss on impairment of assets 3,452,110.25 2,766,714.01
Plus: Gain on change in fair value
(“-” denotes loss)
Investment income
(“-” denotes loss) 22,602,080.41 25,697,571.36
Including: Investment income
from associates and
joint ventures -147,919.59 -204,650.86
II. Operating profit (“-” denotes loss) -150,984,561.61 -217,038,595.76
Plus: Non-operating income 10,230,665.29 1,031,598.79
Including: Gain on disposal of
non-current assets 120,755.04
Less: Non-operating expenses 275.97
Including: Loss on disposal of
non-current assets 275.97
III. Total profit (“-” denotes total loss) -140,754,172.29 -216,006,996.97
Less: Income tax expenses -25,523,334.64 -36,837,714.25
IV. Net profit (“-” denotes net loss) -115,230,837.65 -179,169,282.72
V. Net other comprehensive income
after tax
VI. Total comprehensive income -115,230,837.65 -179,169,282.72
— 20 —
Report for the First Quarter of 2016 of Shandong Chenming Paper Holdings Limited
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 3,861,397,415.68 3,310,628,133.75
Tax rebates received 1,678,391.44 4,189,498.43
Cash received relating to other
operating activities 247,252,260.95 254,802,658.53
Subtotal of cash inflows from operating
activities 4,110,328,068.07 3,569,620,290.71
Cash paid for goods and services 2,329,851,383.64 2,566,090,649.82
Cash paid to and for employees 255,883,771.79 220,025,493.54
Payments of taxes and surcharges 259,042,511.99 234,920,671.82
Cash paid relating to other operating
activities 5,202,441,298.94 1,098,477,220.87
Subtotal of cash outflows from operating
activities 8,047,218,966.36 4,119,514,036.05
Net cash flows from operating activities -3,936,890,898.29 -549,893,745.34
II. Cash flows from investment
activities:
Cash received from investment
income 22,750,000.00 25,000,000.00
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets 123,100.00
Cash received relating to other
investment activities 104,056,200.00 26,736,688.00
Subtotal of cash inflows from investment
activities 126,929,300.00 51,736,688.00
Cash paid for purchase of fixed
assets, intangible assets and other
long-term assets 574,396,852.31 862,714,983.42
Cash paid on investments 36,000,000.00
Subtotal of cash outflows from
investment activities 574,396,852.31 898,714,983.42
Net cash flows from investment activities -447,467,552.31 -846,978,295.42
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Report for the First Quarter of 2016 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 borrowings 11,127,284,771.56 10,500,861,896.01
Cash received relating to other
financing activities 5,937,250,000.00
Subtotal of cash inflows from financing
activities 17,064,534,771.56 10,500,861,896.01
Cash repayments on borrowing 8,407,337,300.81 8,230,839,228.84
Cash paid for dividend and profit
distribution or interest payment 403,109,470.56 303,634,305.57
Cash paid relating to other financing
activities 3,939,020,012.67 536,288,837.13
Subtotal of cash outflows from financing
activities 12,749,466,784.04 9,070,762,371.54
Net cash flows from financing activities 4,315,067,987.52 1,430,099,524.47
IV. Effect of foreign exchange rate
changes on cash and cash
equivalents -13,417,584.13 -2,520,750.56
V. Net increase in cash and cash
equivalents -82,708,047.21 30,706,733.15
Plus: Balance of cash and cash
equivalents as at the beginning of
the period 1,888,107,493.76 976,096,861.30
VI. Balance of cash and cash equivalents
as at the end of the period 1,805,399,446.55 1,006,803,594.45
— 22 —
Report for the First Quarter of 2016 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 1,481,863,637.30 1,335,298,909.11
Cash received relating to other
operating activities 34,061,752.46 67,639,715.08
Subtotal of cash inflows from operating
activities 1,515,925,389.76 1,402,938,624.19
Cash paid for goods and services 1,360,752,845.89 1,093,277,248.24
Cash paid to and for employees 105,169,505.84 93,268,283.43
Payments of taxes and surcharges 47,215,367.24 43,101,335.55
Cash paid relating to other operating
activities 2,288,082,633.71 108,754,202.09
Subtotal of cash outflows from operating
activities 3,801,220,352.68 1,338,401,069.31
Net cash flows from operating activities -2,285,294,962.92 64,537,554.88
II. Cash flows from investment
activities:
Cash received from investments 200,000,000.00
Cash received from investment
income 22,750,000.00 25,903,625.62
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets 3,100.00
Subtotal of cash inflows from investment
activities 22,753,100.00 225,903,625.62
Cash paid for purchase of fixed
assets, intangible assets and other
long-term assets 67,855,336.46
Cash paid on investments 100,000,000.00
Subtotal of cash outflows from
investment activities 167,855,336.46
Net cash flows from investment activities 22,753,100.00 58,048,289.16
III. Cash flows from financing activities:
Cash received from borrowings 3,992,000,000.00 4,074,882,356.80
Cash received relating to other
financing activities 5,737,250,000.00 113,585,517.09
Subtotal of cash inflows from financing
activities 9,729,250,000.00 4,188,467,873.89
— 23 —
Report for the First Quarter of 2016 of Shandong Chenming Paper Holdings Limited
Am ounts for the Am ounts for the
Item period prior period
Cash repayments on borrowing 3,364,731,090.73 3,386,031,450.00
Cash paid for dividend and profit
distribution or interest payment 83,696,736.94 98,696,087.83
Cash paid relating to other financing
activities 2,922,349,824.95
Subtotal of cash outflows from financing
activities 6,370,777,652.62 3,484,727,537.83
Net cash flows from financing activities 3,358,472,347.38 703,740,336.06
IV. Effect of foreign exchange rate
changes on cash and cash
equivalents -11,576,258.45 -4,425,333.85
V. Net increase in cash and cash
equivalents 1,084,354,226.01 821,900,846.25
Plus: Balance of cash and cash
equivalents as at the
beginning of the period 49,438,736.95 40,590,357.33
VI. Balance of cash and cash equivalents
as at the end of the period 1,133,792,962.96 862,491,203.58
II. Auditors’ Report
Has the first quarterly report already been audited yet?
□ Yes √ No
The first quarterly report of the Company is unaudited.
SHANDONG CHENMING PAPER HOLDINGS LIMITED
27 April 2016
— 24 —