2017 Interim Results Summary of Shandong Chenming Paper Holdings Limited
Stock code: 000488, 200488 Stock abbreviation: Chenming Paper, Chenming B Announcement No.: 2017-092
2017 Interim Results Summary of
Shandong Chenming Paper Holdings Limited
I. IMPORTANT NOTICE
This interim report summary is extracted from the text of the interim report. For the full understanding of the operating results,
financial position and plan for further development, investors should carefully read the text of the interim report published, at the
same time, on the designated websites such as the websites of CNINFO or Shenzhen Stock Exchange as approved by China
Securities Regulatory Commission or the website of The Stock Exchange of Hong Kong Limited.
Non-standard auditor’s opinion
□ Applicable √ Not applicable
Plans for profit distribution on ordinary shares or conversion of capital reserves into share capital proposed to the Board during the
reporting period
□ Applicable √ Not applicable
The Company does not propose distribution of cash dividends or bonus shares, and there will be no increase of share capital from
reserves.
Plans for profit distribution on preference shares for the reporting period approved by the Board
√ Applicable □ Not applicable
Distribution amount In compliance with Dividend Dividend Participation in
Distribution Dividend
(RMB) (tax distribution conditions and payment accumulated distribution of retained
date rate
inclusive) relevant procedures or not method or not earnings or not
17 March 2017 4.36% 98,100,000.00 Yes Cash dividend No Yes
II. BASIC INFORMATION ABOUT THE COMPANY
1. Company profile
Stock abbreviation 晨鸣纸业, 晨鸣 B Stock Code 000488 and 200488
Stock abbreviation 晨鸣优 01, 晨鸣优 02 and 晨鸣优 03 Stock Code 140003, 140004 and 140005
Stock exchanges on which the shares are
Shenzhen Stock Exchange
listed
Stock abbreviation Chenming Paper Stock Code 01812
Stock exchanges on which the shares are
The Stock Exchange of Hong Kong Limited
listed
Legal name in Chinese of the Company 山东晨鸣纸业集团股份有限公司
Legal short name in Chinese of the
晨鸣纸业
Company (if any)
Legal name in English of the Company (if
SHANDONG CHENMING PAPER HOLDINGS LIMITED
any)
Legal short name in English of the
SCPH
Company (if any)
Legal representative of the Company Chen Hongguo
2. Major financial data and financial indicators
Retrospective adjustment to or restatement of the accounting data for prior years by the Company
□ Yes √ No
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2017 Interim Results Summary of Shandong Chenming Paper Holdings Limited
The corresponding Increase/decrease for the reporting
The reporting period period of the prior period as compared to the corresponding
year period of the prior year
Revenue (RMB) 13,749,235,007.24 10,606,358,733.02 29.63%
Net profit attributable to shareholders of
1,745,514,838.23 939,164,870.60 85.86%
the Company (RMB)
Net profit after extraordinary gains or
losses attributable to shareholders of the 1,623,294,558.21 741,811,083.82 118.83%
Company (RMB)
Net cash flows from operating activities
-4,471,728,995.24 -2,697,509,853.04 -65.77%
(RMB)
Basic earnings per share (RMB per share) 0.75 0.45 66.67%
Diluted earnings per share (RMB per
0.75 0.45 66.67%
share)
Rate of return on net assets on weighted
7.24% 5.89% 1.35%
average basis
Increase/decrease as at the end of the
As at the end of the As at the end of the
reporting period as compared to the end
reporting period prior year
of the prior year
Total assets (RMB) 91,768,113,395.50 82,285,354,532.14 11.52%
Net assets attributable to shareholders of
22,755,800,238.01 22,218,808,367.43 2.42%
the Company (RMB)
Explanation: Net profit attributable to shareholders of the Company does not exclude the effect of interest payment deferred and
accumulated to subsequent periods for perpetual bonds under other equity instruments. When calculating financial indicators such as
earnings per share and rate of return on net assets on weighted average basis, the interest for perpetual bonds from 1 January 2017 to
30 June 2017 of RMB76,570,000.00 and the dividend of preference shares paid in March and June 2017 of RMB217,377,107.35 are
deducted.
3. Total number of shareholders and shareholdings
Unit: share
Total number of
94,435, of which 74,291 were
Total number of shareholders of shareholders of preference
holders of A shares, 19,731 were
ordinary shares as at the end of the shares with restored voting 0
holders of B shares and 413 were
reporting period right as at the end of the
holders of H shares
reporting period (if any)
Shareholdings of Top 10 shareholders
Share pledged or
Percentage Number of locked-up
Nature of Number of
Name of shareholders of restricted
shareholders shares held Status of
shareholding shares held Number
shares
SHOUGUANG CHENMING State-owned
15.13% 293,003,657 0 Pledged 209,643,000
HOLDINGS COMPANY LIMITED legal person
Overseas legal
HKSCC NOMINEES LIMITED 12.87% 249,125,250 0
person
CHENMING HOLDINGS (HONG Overseas legal
11.64% 225,333,881 0
KONG) LIMITED person
CENTRAL HUIJIN ASSET State-owned
2.07% 40,137,900 0
MANAGEMENT LTD. legal person
CHINA MERCHANTS BANK CO.,
LTD. - EVERBRIGHT PRAMERICA
Others 1.20% 23,300,839 0
ADVANTAGE ALLOCATION STOCK
FUND
ANBANG ASSET MANAGEMENT -
CHINA MERCHANTS BANK - Others 0.95% 18,417,737 0
ANBANG ASSET MANAGEMENT -
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2017 Interim Results Summary of Shandong Chenming Paper Holdings Limited
WIN-WIN NO. 3 COLLECTIVE ASSET
MANAGEMENT PRODUCT
NATIONAL SOCIAL SECURITY FUND
Others 0.56% 10,853,596 0
403
BBH A/C VANGUARD EMERGING Overseas legal
0.44% 8,608,238 0
MARKETS STOCK INDEX FUND person
Domestic nature
JIN Xing 0.38% 7,410,100 0
person
Domestic nature
CHEN Hongguo 0.33% 6,434,527 0
person
A shareholder, Chenming Holdings (Hong Kong) Limited, which is an overseas legal
person, is a wholly-owned subsidiary of a shareholder, Shouguang Chenming Holdings
Connected relationship or connected party Company Limited, which is a state-owned legal person. Hence, they are persons acting
relationship among the above in concert under Administration of Disclosure of Information on the Change of
shareholders 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 is also not
aware that any other shareholders of tradable shares are connected with each other.
4. Change of controlling shareholders or beneficial controllers
The change of controlling shareholders during the reporting period
□ Applicable √ Not applicable
There was no change of controlling shareholders of the Company during the reporting period.
As at the end of the reporting period, Shouguang Chenming Holdings Company Limited, the controlling shareholder of the Company,
and its party acting in concert, namely Chenming Holdings (Hong Kong) Limited, held 293,003,657 A shares, 123,413,881 B shares
and 101,920,000 H shares of the Company in aggregate, representing a shareholding of 26.77%.
Change of beneficial controller during the reporting period
□ Applicable √ Not applicable
There was no change of beneficial controller of the Company during the reporting period.
5. Total number of holders of preference shares and top 10 holders of preference shares
√ Applicable □ Not applicable
Unit: share
Total number of shareholders of
preference shares as at the end 7
of the reporting period
Shareholdings of top ten holders of preference shares
Share pledged or
Number of locked-up
Nature of Preference
Name of shareholders preference
shareholders shareholding Status of
shares held Number
shares
Domestic
BEIJING YIBEN ZHONGXING INVESTMENT
non-state-owned 27.78% 12,500,000 Pledged 12,500,000
MANAGEMENT CO., LTD.
legal person
BANK OF COMMUNICATIONS INTERNATIONAL
TRUST CO., LTD. - HUILI NO.167 SINGLE CAPITAL Others 22.44% 10,100,000
TRUST
BANK OF COMMUNICATIONS INTERNATIONAL Others
TRUST CO., LTD. - HUILI NO.136 SINGLE CAPITAL 14.22% 6,400,000
TRUST
QILU BANK CO., LTD. - QILU BANK QUANXIN Others
13.33% 6,000,000
WEALTH MANAGEMENT PRODUCT SERIES
HENGFENG BANK CO., LTD. Domestic 11.11% 5,000,000
non-state-owned
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2017 Interim Results Summary of Shandong Chenming Paper Holdings Limited
legal person
SHANGHAI STATE-OWNED ASSETS OPERATION State-owned legal
6.67% 3,000,000
CO., LTD. person
NCF - MINSHENG BANK - CHINA FORTUNE
INTERNATIONAL TRUST – CHINA FORTUNE Others 4.44% 2,000,000
TRUSTMIN XIN NO. 11 SINGLE CAPITAL TRUST
The aforesaid holders of preference shares, “BANK OF
COMMUNICATIONS INTERNATIONAL TRUST CO., LTD. - HUILI
NO.167 SINGLE CAPITAL TRUST” and “BANK OF
Connected relationship or connected party relationship COMMUNICATIONS INTERNATIONAL TRUST CO., LTD. - HUILI
among the above shareholders NO.136 SINGLE CAPITAL TRUST”, are persons acting in concert.
Save for the above, it is not aware that whether there is any connected
relationship or connected party relationship among the remaining
holders of preference shares.
6. Corporate bonds
Are there any corporate bonds offered to the public and listed on stock exchanges which do not become due as at the date of approval
of interim report or overdue but not fully settled?
Yes
(1) Basic information on corporate bonds
Outstanding amount
Name of bond Bond abbreviation Bond code Maturity date of the bonds Interest rate
(RMB’0,000)
2012 corporate bonds of
Shandong Chenming Paper 12 Chenming Bond 112144 26 December 2017 380,000 5.65%
Holdings Limited
(2) Financial indicators as at the end of the reporting period
Unit: RMB ’0,000
Increase/decrease as at the end
As at the end of the reporting of the reporting period as
Item As at the end of the prior year
period compared to the end of the prior
year
Current ratio 79.80% 76.57% 3.23%
Gearing ratio 74.78% 72.58% 2.20%
Quick ratio 68.48% 66.16% 2.32%
Increase/decrease of the
The corresponding period of the reporting period as compared to
The reporting period
prior year corresponding period of the
prior year
EBITDA interest coverage ratio 5.87 4.26 37.79%
Loans payment ratio 100.00% 100.00% 0.00%
Interest payment ratio 100.00% 100.00% 0.00%
III. Discussion and Analysis of Operations
1. Operation during the reporting period
Whether the Company needs to comply with the disclosure requirements for specific industries
No
Since 2017, China’s economy extended its development trend at stable pace, and gradually showed steady growth with favourable
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2017 Interim Results Summary of Shandong Chenming Paper Holdings Limited
momentum. With the continuous introduction of production capacity reduction, the supply-side reform and other policies, the
environmental protection policy had become stricter. The elimination of backward production capacity in the paper making industry
progressed smoothly. New production capacity mainly came from large enterprises. It was expected that the industry concentration
ratio was going to further increase. Since the second half of 2016, there was a general increase in prices in the paper making industry
in China due to the increased costs of, among other things, wood pulp, waste paper, logistics and coal. Product prices rose with a
boom in the industry to be prolonged.
During the reporting period, the Company established and implemented new management concept by adhering to the main
theme of “achieving growth amid stability” and committed itself to “team building, management enhancement, outstanding business
performance and good results”. It has completed various works on maintaining stable operation, promoting growth, adjusting
structure, preventing risk exposures and formulating favourable policies for employees.
In the first half of 2017, the Company completed the production of machine-made paper of 2.56 million tonnes with sales of 2.44
million tonnes and achieved revenue of RMB13,749 million, a year-on-year increase of 29.63%. The Company recorded operating
costs of RMB9,530 million, a year-on-year increase of 25.78%. Total profit and net profit attributable to equity holders of the Company
were RMB2,079 million and RMB1,746 million respectively, up by 68.60% and 85.86% from the prior year. The Company’s total
assets amounted to RMB91,768 million. The financial segment experienced stable development across businesses with ever improving
management systems and effective risk preventions.
1. Upgraded corporate management
The Company performed its tasks on schedule in strict compliance with the plans as formulated by the management consulting
companies and the information technology companies. Through learning their advanced philosophies and methods, together with the
help of external experts, corporate management standard has significantly enhanced. The Company has enhanced its management at
hierarchy level and skill training, thus building a talented employee team and improved its comprehensive management capability.
2. Operation management
The Company regulated its market-oriented operations. It has increased the selling prices in a timely manner based on the
market conditions, and improved efficiency through the measures such adjustment to the product structure, investment in products of
higher returns, investment in markets of close proximity and turning inefficient entities around. The Company controlled the
appropriation of funds through the measures such as increase in prepayments, sales on contract with customers, and bartering, thus
enhancing the quality of operations. The Company made every effort to recover overdue amount. It has improved the quality of
collateral security to prevent risks.
3. Production and project management
The Company focused on the improvement of management level for production and operation while ensuring stable operation
and put greater efforts into efficiency utilisation, research and development innovation as well as environmental protection and safety.
During the first half of 2017, over 30 types of high value-added products were produced, focusing on the development and
production of high value-added products including lightweight white paper board, coated paper, business card paper, high-end white
paper board and food card paper etc. Through optimising pulp composition, the Company has lowered the proportion of chemical
materials and introduced new raw materials. It has promoted and applied new technology, such as strengthening of paper surface,
thus enhancing efficiency. The Company implemented safety standardisation management and pay attention to environmental
protection in accordance with national standards and requirements. The Company has set up and closely monitored the safety factors
for internal control indicators so as to ensure standardised emission. Phase I of Haiming mining project has commenced the key stage.
Huanggang Chenming’s integrated forestry, pulp and paper project, 400,000 tonne chemical pulp project and other projects under
construction has proceeded strictly on schedule.
4. Financial capital management
Leveraging professional teams, the Company optimised its business risk management system and set up a customer
classification evaluation system. Financing and project investments were under centralised management of the Group so as to prevent
business risk. The Company enhanced the incentive and appraisal mechanism for middle and senior management for the financial
segment. The Company strengthened the ideological education and comprehensive capabilities training for cadres to enhance team
cohesion. By virtue of additional investment through the leasing company and expansion in the scale of cooperation with the industry
peers through the Finance Company, the Company engaged in new businesses including industry chain finance to increase benefits.
5. Supply chain and logistics management
The establishment of information platform and international tender network had processed on schedule, which fully enhance the
level of information management for procurement. The Company strengthened the bulk procurement of raw materials, established
strategic cooperation relationship with quality customers, and reduced procurement costs. The Company gave full play to the
electronic merchandise exchange centre for pulp and paper products, and established a supply chain system integrating warehousing
and logistics for pulp and paper products in China. The Company closely followed the coordination and payment process and further
utilised acceptance payment to facilitate the cooperation with electronic commercial draft business. The construction of phase I of the
Shouguang Chenming international logistics centre project and the main building of the Qingdao innovative industry park project has
proceeded on schedule. The Company facilitated the establishment of logistics information platform so as to accomplish the
integration between business flow, material flow and information flow. The information platform integrated logistics resources to
build an intelligent logistics system. The Company utilised the function of supervision stations, bonded warehouses and other
existing facilities to customise comprehensive logistics service programs for different corporate customers.
(I) Year on year changes in major financial information
Unit: RMB
During the
During the reporting Increase/decr
corresponding period Reason for the change
period ease
of the prior year
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2017 Interim Results Summary of Shandong Chenming Paper Holdings Limited
Mainly due to the increased sales and
Revenue 13,749,235,007.24 10,606,358,733.02 29.63% prices of machine-made paper of the
Company
Mainly due to the increased sales of
Operating costs 9,529,854,215.34 7,576,566,708.17 25.78%
machine-made paper of the Company.
Mainly due to the increased sales of
Selling and distribution expenses 641,498,275.35 573,734,657.05 11.81%
machine-made paper of the Company.
Mainly due to the increased investment in
Administrative expenses 856,354,999.17 694,013,827.38 23.39% research and development of the
Company.
Mainly due to the increased interest
Finance expenses 696,609,279.51 655,744,163.67 6.23%
expenses.
Mainly due to the improved profitability
Income tax expenses 331,253,327.08 307,031,422.46 7.89%
of the Company.
Mainly due to the increased investment in
Investments in research and
446,835,957.44 305,617,867.77 46.21% research and development of the
development
Company for market expansion.
Mainly due to the increased use of bills
Net cash flows from operating
-4,471,728,995.24 -2,697,509,853.04 -65.77% and the reduced discounting of bills
activities
receivable by the Company.
Mainly due to the capital increase to
Net cash flows from investing Guangdong Dejun and the increased
-363,428,930.29 -840,208,267.12 56.75%
activities investment in Sime Darby West Port by
the Company during this year.
Net cash flows from financing
5,384,179,679.92 5,225,021,178.25 3.05%
activities
Net increase in cash and cash
441,630,376.91 1,679,333,857.39 -73.70%
equivalents
(II) Development strategy
Looking forward, the Company will adhere to the principal of emphasising on environmental protection, low carbon, recycling
and sustainable development. Following the “Made in China 2025 Plan” and the principles of scientific development and quality and
efficiency enhancement, it will comprehensively improve its quality and efficiency, management level, technology application, sense
of happiness and brand image through the integration between its production and manufacture segment and financial services
segment, incorporation of smart technology into its industrial activities, reorganised methodology and restructuring so as to expand
and improve itself and strive to achieve taxable profit over RMB10 billion and strive to become one of the world-class companies
with the highest growth rate and hundreds of billions in value during the “Thirteenth Five Year Plan” period.
(III) Operation plans for the second half of 2017
In the second half of 2017, the main goal of the Company is still adherence to the main theme of achieving growth amid stability
and the guiding principal of work of “team building, management enhancement, outstanding business performance and good results”.
A new management philosophy will be firmly established and consistently practised. The Company will commit itself to, among other
things, operating steadily, boosting growth, adjusting the structure, preventing risks and benefiting the employees. The major measures
are as follows:
1. Determined to upgrade corporate management
The Company will enhance its corporate management level with the help of external experts. The Company commits itself to
performing its tasks up to standard and on schedule in strict compliance with the plans as formulated by the management consulting
companies and the information technology companies. The Company will work together with external experts to learn their advanced
philosophies and methods.
The Company will focus on team building to enhance its comprehensive management capability. The hierarchical management
will improve to make the management at each hierarchy level function and to establish cadres with designated duties and full of energy.
Staff teams will excel themselves during skill training. Hierarchical training will be given in terms of, among other things, ideology,
morals, business skills, theory and knowledge.
2. Determined to strengthen market-oriented operations in terms of operations management
The Company will strengthen its market-oriented operations. It will increase the selling prices in a timely manner based on the
actual market conditions, and increase its revenue through the measures such adjustment to the product structure, investment in
products of higher returns, investment in markets of close proximity and turning inefficient entities around. The Company will
control the appropriation of funds through the measures such as increase in prepayments, sales on contract with customers, and
bartering, thus enhancing the quality of operations.
The Company will commit itself to working together with the management consulting companies and the information
technology companies. The Company will enhance its sales management level by well defining job duties based on the sales
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2017 Interim Results Summary of Shandong Chenming Paper Holdings Limited
structure, formulating standard procedures, and paying attention to key points through full mechanical operation.
The Company will make every effort to recover the amount past due with a view to the collection of all past due accounts. The
Company will improve the quality of collateral security to prevent risks.
3. Determined to promote innovation with higher efficiency in terms of production management
The Company will focus on the improvement of management level for production and operation while ensuring stable operation
and put more efforts into efficiency utilisation, research and development innovation as well as environmental protection and safety.
The Company will motivate the employees through appraisals at levels and attach great importance to training programmes for staff
at entry level. The Company will cooperate with information technology companies to facilitate early warning and examination
through mechanical operation during production. The Company will introduce high-end technicians to improve the research and
development capabilities of the teams. The Company will encourage technology innovation and apply for 20 national patents. The
Company will adjust the product mix and focus on the research and development as well as marketing of unbleached household
paper, anti-counterfeiting white paper board, cigarette card board and other high value-added products. The Company will introduce
new types of raw materials and promote the application of technologies including paper surface enhancement. The Company will be
strict with product quality and work on increases in prices and benefits in sales. The Company will implement safety standardisation
management and pay attention to environmental protection in accordance with national standards and requirements. The Company
will set up and closely monitor the safety factors for internal control indicators so as to ensure standardised emission.
4. Determined to maintain quality and be on track in terms of project management
The Company will make sure the phase I of Haiming mining project to commence production on schedule. The Company will
also pay close attention to Huanggang Chenming’s integrated forestry and pulp project, Shouguang Chenming’s chemical pulp
project and other projects under construction to ensure such projects will proceed on schedule.
5. Determined to achieve stable growth in terms of financial capital management
The Company will regard risk management as the most important task for financial capital management. Leveraging
professional teams, the Company will optimise its business risk management system and set up a customer classification evaluation
system. Financing and project investment will be under centralised management of the Group so as to prevent business risk.
The Company will proceed with capital financing to reduce its gearing ratio and optimise the structure of assets and liabilities.
The Company will also proceed with direct financing for the medium to long term so as to prevent liquidity risk.
The Company will enhance the incentive and appraisal mechanism for middle and senior management for the financial segment.
The Company will strengthen the ideological education and comprehensive capabilities training for cadres to enhance team cohesion.
By virtue of additional investment through the leasing company and expansion in the scale of cooperation with the industry peers
through the Finance Company, the Company will engage in new businesses including industry chain finance to increase benefits.
6. Determined to grow revenue from trading in terms of supply chain management
Cooperating with management consulting companies and professional information technology companies, the Company will
strive to the establishment of information platform and international tender network so as to enhance the level of information
management for procurement. The Company will place great emphasis on bulk procurement of raw materials and establish strategic
cooperation relationship with quality customers while putting more efforts into market analysis and improving analysis and
judgement capabilities for market conditions so as to reduce procurement costs. The Company will give full play to the electronic
merchandise exchange centre for pulp and paper products and establish a supply chain system integrating warehousing and logistics
for pulp and paper products in China. The Company will expand sales channels in the market to improve trading volume. The
Company will closely follow the coordination and payment process and further utilise acceptance payment to facilitate the
cooperation with electronic commercial draft business.
7. Determined to consolidate resources in terms of logistics management
The Company will rationalise its organisation structure and introduce logistics professionals to facilitate the greater reforms of
the logistics of the Group. The Company will ensure the timely completion of phase I of the Shouguang Chenming international
logistics centre project and the main building of the Qingdao innovative industry park project. The Company will facilitate the
establishment of logistics information platform so as to accomplish the integration between business flow, material flow and
information flow. The information platform will integrate logistics resources to build an intelligent logistics system. The Company
will utilise the function of supervision stations, bonded warehouses and other existing facilities to customise comprehensive logistics
service programs for different corporate customers.
8. Caring for employees with more and more employee benefits
The Company will rationalise the salary increment mechanism to improve staff’s income in real terms so as to make sure the
salary level of its staff is relatively higher than those of its local counterparts and industry peers. Making reference to renowned
enterprises, the Company will improve the living standards of staff quarters through further improvement in basic facilities and
amenities. The Company will commence physical training and testing for staff to improve their physical quality. Focusing on green
landscaping, the Company will build more garden-like factory areas so as to create a more pleasant working environment for
employees.
2. Events relating to the financial report
(1) Reason for changes in accounting policies, accounting estimates and accounting methods as compared
to the financial report for the prior accounting period
□ Applicable √ Not applicable
There was no change in accounting policies, accounting estimates and accounting methods of the Company during the reporting
period.
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2017 Interim Results Summary of Shandong Chenming Paper Holdings Limited
(2) Reason for retrospective restatement to correct major accounting errors during the reporting period
□ Applicable √ Not applicable
No retrospective restatement was made to correct major accounting errors during the reporting period.
(3) Reason for changes in scope of the consolidated financial statements as compared to the financial
report for the prior accounting period
√ Applicable □ Not applicable
① Newly established subsidiaries
Name of company Time of Scope of business Scope of business Shareholding
incorporation （RMB0,000）
Conducting spot transactions, trading of and electronic
Qingdao Chenming commerce of pulp, finished paper products,
Electronic Commodity paper-making auxiliary materials, etc., online sale of
2017.05 3,000.00 100%
Exchange for Pulp and pulp, paper, paper products, etc., warehousing services,
Paper Co., Ltd. logistics distribution and economic information
consultation, etc.
Packaging and production of pulp, finished paper
Xuchang Chenming Paper products and paper products, generation and supply of
2017.04 40,000.00 60%
Co., Ltd. thermal power, treatment and recycling of sewage, and
recycling of recycling materials, etc.
Shandong Chenming Relevant consultation services for domestic factoring,
Commercial Factoring 2017.06 export factoring and commercial factoring, corporate 20,000.00 100%
Co., Ltd. management consultation, and asset valuation services.
② Disposal of subsidiaries
Nature of The difference between the consideration
Consideration Shareholding
Name of disposal of Time of loss and the share of the net assets of the
of disposal of of disposal of Basis for time
subsidiary equity of control subsidiary for such disposal in the
equity interest equity interest
interest consolidated financial statements(RMB)
Jilin Chenming
Machinery Equity transfer
0 100% Transfer 2017.05 480,189.88
Manufacturing agreement
Co., Limited
③ Business combinations under common control
Income of the Net profit of the
Shareholding party being party being
acquired Basis for business absorbed from the absorbed from the
Name of the party Basis for the
during the combination under Combination date beginning of the beginning of the
being absorbed combination date
business common control current period to current period to
combination the combination the combination
date date(RMB)
Completion of the
Both were cancellation of
Shouguang Chenming
subsidiaries of industry and
Hongxin Packaging 100% 2017.06 0 -92,680.78
Shandong commerce
Co., Ltd.
Chenming registration and
tax registration
Board of Directors of Shandong Chenming Paper Holdings Limited
15 August 2017
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