Report for the Third Quarrter of 2017 of S Chennming Paper Hooldings Limited
SHANDONG CHENNMING PAPEER HOLLDINGGS LIMITED
20117 Third Quarteerly Repport
Occtober 20017
1
Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
I Important Notice
The board of directors (the “Board”), the supervisory committee (the
“Supervisory Committee”), the directors (the “Director”), the supervisors (the
“Supervisors”) and the 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, Hu Jinbao, the head in charge of
accounting, and Dong Lianming, 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.
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Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
Ⅱ General Information of the Company
I. Major financial data and change of shareholders
Retrospective adjustment to or restatement of the accounting data for prior years by the Company
□ Yes √ No
Increase/decrease as at the end
As at the end of the of the reporting period
As at the end of the prior year
reporting period compared to the end of the
prior year
Total assets (RMB) 98,789,227,727.27 82,285,354,532.14 20.06%
Net assets attributable to shareholders
26,596,099,057.59 22,218,808,367.43 19.70%
of the Company (RMB)
Increase/decrease for
the period from the
Increase/decrease for
beginning of the year
the reporting period as From the beginning of
The reporting to the end of the
compared to the the year to the end of
period reporting period
corresponding period the reporting period
compared to the
of the prior year
corresponding period
of the prior year
Revenue (RMB) 8,179,965,762.07 37.12% 21,929,200,769.31 32.33%
Net profit attributable to shareholders
966,000,240.51 57.07% 2,711,515,078.74 74.47%
of the Company (RMB)
Net profit after extraordinary gains or
losses attributable to shareholders of 927,544,638.20 77.44% 2,550,839,196.40 101.72%
the Company (RMB)
Net cash flows from operating
-- -- -1,613,139,694.33 48.30%
activities (RMB)
Basic earnings per share (RMB per
0.41 41.38% 1.16 56.76%
share)
Diluted earnings per share (RMB per
0.41 41.38% 1.16 56.76%
share)
Rate of return on net assets on
2.41% -0.50% 9.65% 0.85%
weighted average basis
Items and amounts of extraordinary gains or losses
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
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Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
Profit or loss from disposal of non-current assets (including
-475,168.69
write-off of provision for assets impairment)
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 176,601,739.21
certain standard based on state policies) accounted for in profit or
loss for the current period
Gain or loss on external entrusted loans 13,312,368.97
Non-operating income and expenses other than the above items -11,009,851.10
Gain or loss from changes in fair value of consumable biological
21,051,219.02
assets subsequently measured at fair value
Less: Effect of income tax 37,188,106.97
Effect of minority interest (after tax) 1,616,318.10
Total 160,675,882.34 --
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.
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 shareholders of preference shares with restored
voting rights and the shareholding of the top ten shareholders
Unit: share
Total number of shareholders of 89,049, of which 69,448 were holders of A Total number of shareholders of preference
ordinary shares as at the end of shares, 19,188 were holders of B shares and shares with restored voting right as at the 0
the reporting period 413 were holders of H shares end of the reporting period (if any)
Shareholding of top 10 shareholders
Percentage Share pledged or
Number of
Nature of of Number of locked-up
Name of shareholders restricted
Shareholders shareholdi shares held Status of
shares held Number
ng shares
SHOUGUANG CHENMING HOLDINGS State-owned 154,273,0
15.13% 293,003,657 0 Pledged
COMPANY LIMITED legal person 00
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Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
Overseas legal
HKSCC NOMINEES LIMITED 12.85% 248,769,250 0
person
CHENMING HOLDINGS (HONG KONG) Overseas legal
11.75% 227,556,921 0
LIMITED person
CENTRAL HUIJIN ASSET MANAGEMENT State-owned
2.07% 40,137,900 0
LTD. legal person
CHINA MERCHANTS BANK CO., LTD. Others
—EVERBRIGHT PRAMERICA
0.75% 14,497,314 0
ADVANTAGE ALLOCATION STOCK
FUND
NATIONAL SOCIAL SECURITY FUND 403 Others 0.56% 10,853,596 0
BBH A/C VANGUARD EMERGING Overseas legal
0.44% 8,608,238 0
MARKETS STOCK INDEX FUND person
INDUSTRIAL AND COMMERCIAL BANK Others
OF CHINA LIMITED –EVERBRIGHT
PRAMERICA MADE IN CHINA 2025 0.43% 8,280,589 0
FLEXIBLE ALLOCATION MIXED
SECURITIES INVESTMENT FUND
Domestic
JIN Xing 0.39% 7,630,100 0
nature person
HONG KONG SECURITIES CLEARING Overseas legal
0.36% 6,899,610 0
COMPANY LIMITED person
Shareholding of the top ten shareholders of non-restricted shares
Number of Class of shares
Name of shareholders non-restricted
Class of shares Number
shares held
SHOUGUANG CHENMING HOLDINGS COMPANY LIMITED 293,003,657 RMB ordinary shares 293,003,657
Overseas listed
HKSCC NOMINEES LIMITED 248,769,250 248,769,250
foreign shares
Domestic listed
125,280,921
foreign shares
CHENMING HOLDINGS (HONG KONG) LIMITED 227,556,921
Overseas listed
102,276,000
foreign shares
CENTRAL HUIJIN ASSET MANAGEMENT LTD. 40,137,900 RMB ordinary shares 40,137,900
CHINA MERCHANTS BANK CO., LTD. —EVERBRIGHT
14,497,314 RMB ordinary shares 14,497,314
PRAMERICA ADVANTAGE ALLOCATION STOCK FUND
NATIONAL SOCIAL SECURITY FUND 403 10,853,596 RMB ordinary shares 10,853,596
BBH A/C VANGUARD EMERGING MARKETS STOCK INDEX FUND Domestic listed
8,608,238 8,608,238
foreign shares
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Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED –
EVERBRIGHT PRAMERICA MADE IN CHINA 2025 FLEXIBLE 8,280,589 RMB ordinary shares 8,280,589
ALLOCATION MIXED SECURITIES INVESTMENT FUND
JIN Xing Domestic listed
7,630,100 7,630,100
foreign shares
HONG KONG SECURITIES CLEARING COMPANY LIMITED 6,899,610 RMB ordinary shares 6,899,610
A shareholder, CHENMING HOLDINGS (HONG KONG) LIMITED, which is an overseas legal person, is
a wholly-owned subsidiary of a shareholder, SHOUGUANG CHENMING HOLDINGS COMPANY
Related party
LIMITED, which is a state-owned legal person. Hence they are persons acting in concert under
relationship or acting
Administration of Disclosure of Information on the Change of Shareholding in Listed Companies
in concert relationship
Procedures. HKSCC NOMINEES LIMITED and HONG KONG SECURITIES CLEARING COMPANY
among the above
LIMITED are wholly-owned subsidiaries of HONG KONG EXCHANGES AND CLEARING LIMITED.
shareholders
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 related to 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.
2. Total number of shareholders of preference shares and shareholding of the top ten shareholders of
preference shares
√ Applicable □ Not applicable
Unit: share
Total number of shareholders of preference shares as at the end of the reporting period 7
Shareholding of the top ten shareholders of preference shares
Share pledged or
Percentage Number of
Nature of Number of locked-up
Name of shareholder of restricted
Shareholders shares held Status of
shareholding shares held Number
shares
BEIJING YIBEN ZHONGXING Domestic
INVESTMENT MANAGEMENT CO., non-state-owned 27.78% 12,500,000 0 Pledged 12,500,000
LTD. legal person
BANK OF COMMUNICATIONS Others
INTERNATIONAL TRUST CO., LTD. - 22.44% 10,100,000 0
HUILI NO.167 SINGLE CAPITAL TRUST
BANK OF COMMUNICATIONS Others
INTERNATIONAL TRUST CO., LTD. - 14.22% 6,400,000 0
HUILI NO.136 SINGLE CAPITAL TRUST
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Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
QILU BANK CO., LTD. - QILU BANK Others
QUANXIN WEALTH MANAGEMENT 13.33% 6,000,000 0
PRODUCT SERIES
Domestic
HENGFENG BANK CO., LTD. non-state-owned 11.11% 5,000,000 0
legal person
SHANGHAI STATE-OWNED State-owned
6.67% 3,000,000 0
ASSETS OPERATION CO., LTD. legal person
NCF - MINSHENG BANK - CHINA
FORTUNE INTERNATIONAL TRUST –
Others 4.44% 2,000,000 0
CHINA FORTUNE TRUSTMIN XIN NO.
11 SINGLE CAPITAL TRUST
The aforesaid holders of preference shares, “BANK OF COMMUNICATIONS INTERNATIONAL
Related party
TRUST CO., LTD. - HUILI NO.167 SINGLE CAPITAL TRUST” and “BANK OF
relationship or acting in
COMMUNICATIONS INTERNATIONAL TRUST CO., LTD. - HUILI NO.136 SINGLE CAPITAL
concert relationship
TRUST”, are persons acting in concert. Save for the above, it is not aware that the remaining holders of
among the above
preference shares, and the top ten holders of preference shares and the top ten holders of ordinary shares
shareholders
are related to each other or are persons acting in concert.
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Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
III Material matters
I. Details and reasons for changes of major financial data and financial indicators during
the reporting period
√Applicable □ No applicable
(I) Analysis of the assets and liabilities of the Company
Unit: RMB
Item 30 September 2017 31 December 2016 Change Reason for change
Monetary funds 14,767,294,153.38 10,109,930,319.49 46.07% （1）
Bills receivable 4,667,456,461.50 1,590,460,875.23 193.47% （2）
Prepayments 2,456,350,916.92 1,511,362,674.64 62.53% （3）
Other current assets 11,472,578,975.95 6,616,744,831.28 73.39% （4）
Long-term equity investments 196,324,628.83 67,251,992.88 191.92% （5）
Construction in progress 6,943,190,111.56 4,115,194,870.23 68.72% （6）
Intangible assets 2,099,221,292.45 1,540,959,330.74 36.23% （7）
Bills payable 1,378,417,276.47 515,301,703.08 167.50% （8）
Interest payable 208,900,615.00 30,731,253.71 579.77% （9）
Long-term payables 6,015,612,933.90 3,951,368,854.00 52.24% （10）
Explanation of the reasons leading to the major changes:
(1) Monetary funds increased by 46.07% as compared to the beginning of the year mainly due to an increase in other monetary
funds of the Company.
(2) Bills receivable increased by 193.47% as compared to the beginning of the year mainly due to an increase in sales income of
the Company, as well as an increase in letters of credit for pledged bills and bills.
(3) Prepayments increased by 62.53% as compared to the beginning of the year mainly due to an increase in prepayments for raw
materials in order to reduce the procurement costs.
(4) Other current assets increased by 73.39% as compared to the beginning of the year mainly due to an increase in receivables
under financial lease due within one year.
(5) Long-term equity investments increased by 191.92% as compared to the beginning of the year mainly due to the new equity
investment in Weifang Sime Darby West Port.
(6) Construction in progress increased by 68.72% as compared to the beginning of the year mainly due to an increase in
investments in projects, including the forestry paper integration project of Huanggang Chenming.
(7) Intangible assets increased by 36.23% as compared to the beginning of the year mainly due to the land use rights newly
acquired by Huanggang Pulp and Haiming Mining, the subsidiaries of the Company.
(8) Bills payable increased by167.50% as compared to the beginning of the year mainly due to an increase in payments for goods
through issuance of bills.
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Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
(9) Interest payable increased by 579.77% as compared to the beginning of the year mainly due to an increase in outstanding
payables for corporate bonds and interests for medium-term notes.
(10) Long-term payables increased by 52.24% as compared to the beginning of the year mainly due to the addition of payables
under financial leaseback leases.
(II) Reasons for significant year-on-year changes of income statement items during the
reporting period
Unit: RMB
Item January - September 2017 January - September 2016 Change Reason for change
Sales revenue 21,929,200,769.31 16,572,058,544.35 32.33% （1）
Business taxes and surcharges 162,946,170.78 115,224,750.98 41.42% （2）
Administrative expenses 1,359,800,918.78 1,085,916,429.65 25.22% （3）
Finance expenses 1,723,984,373.79 1,393,180,175.66 23.74% （4）
Investment income 121,348,201.62 59,098,978.74 105.33% （5）
Non-operating income 210,450,367.20 331,382,681.55 -36.49% （6）
Explanation of the reasons leading to the major changes:
(1) Sales revenue increased by 32.33% as compared to the corresponding period of last year mainly due to an increase in sales
volume of machine made paper and the rise in selling prices.
(2) Business taxes and surcharges increased by 41.42% as compared to the corresponding period of last year mainly due to the
reclassification of taxes under administrative expenses.
(3) Administrative expenses increased by 25.22% as compared to the corresponding period of last year mainly due to an increase in
expenses for research and development as compared to the corresponding period of last year.
(4) Finance expenses increased by 23.74% as compared to the corresponding period of last year mainly due to an increase in
expenses for interests as compared to the corresponding period of last year.
(5) Investment income increased by 105.33% as compared to the corresponding period of last year mainly due to the provision
made by the Company for the investment income from Guangdong Dejun.
(6) Non-operating income decreased by 36.49% as compared to the corresponding period of last year mainly due to a decrease in
government grants received by the Company during the period.
(III) Analysis of cash flows during the reporting period
Unit: RMB
Item January - September 2017 January - September 2016 Change Reason for change
Net cash flows from operating activities -1,613,139,694.33 -3,120,091,496.30 48.30% （1）
Net cash flows from investment activities -1,483,934,428.52 -895,903,143.36 -65.64% （2）
Net cash flows from financing activities 4,859,032,582.33 4,698,016,246.43 3.43% -
Explanation of the reasons leading to the major changes:
(1) Net cash flows from operating activities increased by 48.30% as compared to the corresponding period of last year mainly due
to an increase in sales revenue resulting from the recovery of the paper market and a decrease in net investments in financial leases.
(2) Net cash flows from investment activities decreased by 65.64% as compared to the corresponding period of last year mainly
due to an increase in cash paid for investments by the Company.
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Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
II. Progress in respect to material matters and analysis of the related effects and solutions
□Applicable √ No applicable
III. Undertakings made by parties involved in undertakings including the Company’s
beneficial controllers, shareholders, related parties, bidders and the Company subsisting
during the reporting period
□Applicable √ No applicable
During the reporting period, there was no undertaking made by parties involved in undertakings including the Company’s beneficial
controllers, shareholders, related parties, bidders and the Company during the reporting period or prior periods but subsisting to the
end of the reporting period.
IV. Estimate of the operating results for 2017
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 √ No applicable
V. Security investments
□Applicable √ No applicable
The Company did not have any security investments during the reporting period.
VI. Derivatives investments
□Applicable √ No 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 √ No 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 √ No applicable
There was no external guarantee provided by the Company which was against the rules and regulations during the reporting period.
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Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
IX. Appropriation of funds of the Company by the controlling shareholder and its related
parties for non-operating purposes
□Applicable √ No 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.
X. Fulfilment of social responsibility regarding specialised poverty relief
□Applicable √ No applicable
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Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
IV Financial Statements
I. Financial Statements
1. Consolidated Balance Sheet
Prepared by: Shandong Chenming Paper Holdings Limited
30 September 2017 Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 14,767,294,153.38 10,109,930,319.49
Bills receivable 4,667,456,461.50 1,590,460,875.23
Accounts receivable 3,949,840,303.80 3,974,065,104.15
Prepayments 2,456,350,916.92 1,511,362,674.64
Other receivables 1,843,427,753.66 1,614,214,645.48
Inventories 5,408,154,387.01 4,862,668,746.90
Non-current assets due within one year 5,409,102,920.25 5,487,376,588.22
Other current assets 11,472,578,975.95 6,616,744,831.28
Total current assets 49,974,205,872.47 35,766,823,785.39
Non-current assets:
Available-for-sale financial assets 2,453,000,000.00 1,945,000,000.00
Long-term receivables 8,764,627,044.99 8,844,262,173.65
Long-term equity investments 196,324,628.83 67,251,992.88
Investment properties 14,258,675.83
Fixed assets 27,270,769,747.52 28,811,555,365.39
Construction in progress 6,943,190,111.56 4,115,194,870.23
Construction materials 12,186,789.61 18,847,584.79
Intangible assets 2,099,221,292.45 1,540,959,330.74
Goodwill 20,283,787.17 20,283,787.17
Long-term prepaid expenses 140,919,078.86 157,772,100.69
Deferred income tax assets 513,772,113.99 497,457,826.70
Other non-current assets 400,727,259.82 485,687,038.68
Total non-current assets 48,815,021,854.80 46,518,530,746.75
Total assets 98,789,227,727.27 82,285,354,532.14
Current liabilities:
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Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
Short-term borrowings 32,460,742,633.40 27,875,506,988.53
Bills payable 1,378,417,276.47 515,301,703.08
Accounts payable 3,422,433,283.43 3,724,266,382.06
Advance receipts 348,029,214.86 377,135,566.33
Staff remuneration payables 176,726,960.48 159,968,262.82
Taxes payable 342,381,176.72 236,927,459.78
Interest payable 208,900,615.00 30,731,253.71
Other payables 1,268,610,813.05 948,919,195.80
Non-current liabilities due within one year 7,124,994,924.39 6,237,021,557.17
Other current liabilities 8,157,339,181.03 6,602,863,069.45
Total current liabilities 54,888,576,078.83 46,708,641,438.73
Non-current liabilities:
Long-term borrowings 6,314,079,606.96 6,935,598,781.23
Bonds payable 2,196,003,710.72
Long-term payables 6,015,612,933.90 3,951,368,854.00
Special payables 681,039,716.66 681,039,716.66
Deferred income 1,449,022,671.76 1,443,846,526.33
Other non-current liabilities 250,000,000.00
Total non-current liabilities 16,905,758,640.00 13,011,853,878.22
Total liabilities 71,794,334,718.83 59,720,495,316.95
Owners’ equity:
Share capital 1,936,405,467.00 1,936,405,467.00
Other equity instruments 10,048,300,000.00 7,060,300,000.00
Including: Preference shares 4,477,500,000.00 4,477,500,000.00
Perpetual bonds 5,570,800,000.00 2,582,800,000.00
Capital reserves 6,149,257,784.90 6,149,257,784.90
Other comprehensive -478,784,772.93 -805,245,771.89
Surplus reserves 1,132,116,106.40 1,132,116,106.40
Retained profit 7,808,804,472.22 6,745,974,781.02
Total equity attributable to shareholders of the Company 26,596,099,057.59 22,218,808,367.43
Minority interest 398,793,950.85 346,050,847.76
Total owners’ equity 26,994,893,008.44 22,564,859,215.19
Total liabilities and owners’ equity 98,789,227,727.27 82,285,354,532.14
Legal Representative: Chen Hongguo Financial controller: Hu Jinbao Head of the financial department: Dong Lianming
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Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
2. Balance sheet of the Company
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 11,254,727,006.01 7,934,163,265.76
Bills receivable 840,178,623.78 112,943,069.85
Accounts receivable 50,074,012.43 84,089,911.81
Prepayments 3,329,268,322.12 1,003,699,885.05
Interest receivable 11,885,269.32
Other receivables 25,317,847,533.75 22,848,685,985.74
Inventories 784,361,615.71 663,006,714.42
Non-current assets due within one year 900,000,000.00
Total current assets 41,588,342,383.12 33,546,588,832.63
Non-current assets:
Available-for-sale financial assets 2,453,000,000.00 1,909,000,000.00
Long-term equity investments 16,526,374,314.95 14,558,097,658.49
Investment properties 14,258,675.83
Fixed assets 2,381,873,175.73 3,343,366,320.45
Construction in progress 985,994,828.50 52,757,799.47
Construction materials 71,973.35
Intangible assets 473,409,711.42 300,218,996.05
Deferred income tax assets 164,239,626.96 164,139,190.27
Other non-current assets 54,800,000.00 67,400,000.00
Total non-current assets 23,039,691,657.56 20,409,310,613.91
Total assets 64,628,034,040.68 53,955,899,446.54
Current liabilities:
Short-term borrowings 6,881,572,995.23 8,203,392,554.58
Bills payable 7,475,670,000.00 3,057,000,000.00
Accounts payable 545,682,916.92 654,411,787.56
Advance receipts 83,292,178.72 537,139,483.60
Staff remuneration payables 65,037,092.32 58,599,576.37
Taxes payable 78,812,639.95 43,087,056.70
Interest payable 174,160,615.00 30,731,253.71
Other payables 5,586,207,008.40 3,689,371,275.46
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Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
Non-current liabilities due within one year 5,559,196,937.99 5,648,861,310.04
Other current liabilities 8,157,339,181.03 6,602,863,069.45
Total current liabilities 34,606,971,565.56 28,525,457,367.47
Non-current liabilities:
Long-term borrowings 771,497,413.63 1,521,611,382.77
Bonds payable 1,198,260,000.00
Long-term payables 5,070,422,830.39 3,005,178,750.49
Deferred income 52,738,483.25 56,572,797.75
Other non-current liabilities 250,000,000.00
Total non-current liabilities 7,342,918,727.27 4,583,362,931.01
Total liabilities 41,949,890,292.83 33,108,820,298.48
Owners’ equity:
Share capital 1,936,405,467.00 1,936,405,467.00
Other equity instruments 10,048,300,000.00 7,060,300,000.00
Including: Preference shares 4,477,500,000.00 4,477,500,000.00
Perpetual bonds 5,570,800,000.00 2,582,800,000.00
Capital reserves 5,938,960,168.19 5,938,960,168.19
Surplus reserves 1,119,926,524.49 1,119,926,524.49
Retained profit 3,634,551,588.17 4,791,486,988.38
Total owners’ equity 22,678,143,747.85 20,847,079,148.06
Total liabilities and owners’ equity 64,628,034,040.68 53,955,899,446.54
3. Consolidated income statement during the reporting period
Unit: RMB
Item Amounts for the period Amounts for the prior period
I. Total revenue 8,179,965,762.07 5,965,699,811.33
Including: Revenue 8,179,965,762.07 5,965,699,811.33
II. Total operating costs 7,089,959,307.39 5,377,887,845.68
Including: Operating costs 5,463,612,011.51 4,144,701,407.84
Taxes and surcharges 56,986,158.42 29,736,313.69
Sales and distribution expenses 343,307,442.54 289,990,334.43
General and administrative expenses 503,445,919.61 391,902,602.27
Finance expenses 668,587,867.43 424,836,614.05
Loss on impairment of assets 54,019,907.88 96,720,573.40
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Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
Plus: Investment income (“-” denotes loss) 55,483,529.26 22,090,548.96
Including: Investment income from associates and
27,516,929.26 392,435.75
joint ventures
III. Operating profit (“-” denotes loss) 1,145,489,983.94 609,902,514.61
Plus: Non-operating income 51,931,072.52 102,474,327.24
Including: Gain on disposal of non-current assets 1,243,031.34 324,435.53
Less: Non-operating expenses 3,578,969.93 801,515.18
Including: Loss on disposal of non-current assets 2,063,003.02 34,165.48
IV. Total profit (“-” denotes total loss) 1,193,842,086.53 711,575,326.67
Less: Income tax expenses 217,301,563.56 99,388,566.27
V. Net profit (“-” denotes net loss) 976,540,522.97 612,186,760.40
Net profit attributable to shareholders of the Company 966,000,240.51 614,998,648.94
Profit or loss of minority interest 10,540,282.46 -2,811,888.54
VI. Net other comprehensive income after tax 155,763,579.06 -50,780,213.13
Net other comprehensive income after tax attributable to
155,763,579.06 -50,780,213.13
shareholders of the Company
Other comprehensive income that will be reclassified to
155,763,579.06 -50,780,213.13
profit or loss in subsequent periods
Translation difference of financial statements denominated
155,763,579.06 -50,780,213.13
in foreign currency
VII. Total comprehensive income 1,132,304,102.03 561,406,547.27
Total other comprehensive income attributable to
1,121,763,819.57 564,218,435.81
shareholders of the Company
Total comprehensive income attributable to minority
10,540,282.46 -2,811,888.54
interest
VIII. Earnings per share:
(I) Basic earnings per share 0.41 0.29
(II) Diluted earnings per share 0.41 0.29
Legal Representative: Chen Hongguo Financial controller: Hu Jinbao Head of the financial department: Dong Lianming
4. Income statement of the Company during the reporting period
Unit: RMB
Item Amounts for the period Amounts for the prior period
I. Revenue 1,706,131,164.94 1,800,634,310.34
Less: Operating costs 1,193,116,257.66 1,433,887,369.01
16
Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
Taxes and surcharges 18,092,927.04 10,099,093.08
Sales and distribution expenses 64,749,892.58 68,618,973.83
General and administrative expenses 158,346,538.91 140,786,536.50
Finance expenses 224,536,497.92 54,057,408.65
Loss on impairment of assets -1,721,797.89 -4,942,941.64
Plus: Investment income (“-” denotes loss) 27,471,467.73 21,954,581.39
Including: Investment income from associates and joint
-495,132.27 256,468.18
ventures
II. Operating profit (“-” denotes loss) 76,482,316.45 120,082,452.30
Plus: Non-operating income 4,343,228.95 51,354,806.03
Including: Gain on disposal of non-current assets 564,393.38
Less: Non-operating expenses 1,825,070.96 470,784.28
Including: Loss on disposal of non-current assets 1,325,070.96 784.28
III. Total profit (“-” denotes total loss) 79,000,474.44 170,966,474.05
Less: Income tax expenses -20,254,937.09 19,922,995.56
IV. Net profit (“-” denotes net loss) 99,255,411.53 151,043,478.49
V. Net other comprehensive income after tax 0 0
VI. Total comprehensive income 99,255,411.53 151,043,478.49
VII. Earnings per share:
(I) Basic earnings per share - -
(II) Diluted earnings per share - -
5. Consolidated income statement from the beginning of the year to the end of the reporting period
Unit: RMB
Item Amounts for the period Amounts for the prior period
I. Total revenue 21,929,200,769.31 16,572,058,544.35
Including: Revenue 21,929,200,769.31 16,572,058,544.35
II. Total operating costs 18,970,046,742.20 15,000,475,024.81
Including: Operating costs 14,634,679,000.00 11,408,668,718.07
Taxes and surcharges 162,946,170.78 115,224,750.98
Sales and distribution expenses 984,805,717.89 863,724,991.48
General and administrative expenses 1,359,800,918.78 1,085,916,429.65
Finance expenses 1,723,984,373.79 1,393,180,175.66
Loss on impairment of assets 103,830,560.96 133,759,958.97
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Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
Plus: Gain on change in fair value (“-” denotes loss) -11,009,851.10 -10,599,543.68
Investment income (“-” denotes loss) 121,348,201.62 59,098,978.74
Including: Investment income from associates and
23,362,635.96 -6,811,398.62
joint ventures
III. Operating profit (“-” denotes loss) 3,069,492,377.63 1,620,082,954.60
Plus: Non-operating income 210,450,367.20 331,382,681.55
Including: Gain on disposal of non-current assets 3,065,955.29 2,741,063.58
Less: Non-operating expenses 7,129,672.35 6,804,497.54
Including: Loss on disposal of non-current assets 3,541,123.98 4,077,479.69
IV. Total profit (“-” denotes total loss) 3,272,813,072.48 1,944,661,138.61
Less: Income tax expenses 548,554,890.64 406,419,988.73
V. Net profit (“-” denotes net loss) 2,724,258,181.84 1,538,241,149.88
Net profit attributable to shareholders of the Company 2,711,515,078.74 1,554,163,519.54
Profit or loss of minority interest 12,743,103.10 -15,922,369.66
VI. Net other comprehensive income after tax 326,460,998.96 -205,097,483.27
Net other comprehensive income after tax attributable to
326,460,998.96 -205,097,483.27
shareholders of the Company
Other comprehensive income that will be reclassified to
326,460,998.96 -205,097,483.27
profit or loss in subsequent periods
Translation difference of financial statements denominated
326,460,998.96 -205,097,483.27
in foreign currency
VII. Total comprehensive income 3,050,719,180.80 1,333,143,666.61
Total other comprehensive income attributable to
3,037,976,077.70 1,349,066,036.27
shareholders of the Company
Total comprehensive income attributable to minority interest 12,743,103.10 -15,922,369.66
VIII. Earnings per share:
(I) Basic earnings per share 1.16 0.74
(II) Diluted earnings per share 1.16 0.74
6. Income statement of the Company from the beginning of the year to the end of the reporting period
Unit: RMB
Item Amounts for the period Amounts for the prior period
I. Revenue 5,388,701,473.86 5,205,542,239.30
Less: Operating costs 3,753,815,510.75 4,183,283,135.43
Taxes and surcharges 56,290,076.46 23,130,058.25
18
Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
Sales and distribution expenses 196,448,912.34 196,681,913.14
General and administrative expenses 464,970,811.33 408,342,264.32
Finance expenses 526,756,927.96 544,626,983.09
Loss on impairment of assets 11,317,153.72 -3,586,791.16
Plus: Investment income (“-” denotes loss) 96,961,416.40 266,126,747.21
Including: Investment income from associates and joint
-525,752.57 216,369.85
ventures
II. Operating profit (“-” denotes loss) 476,063,497.70 119,191,423.44
Plus: Non-operating income 17,494,858.09 91,356,544.13
Including: Gain on disposal of non-current assets 933,699.78 373,450.11
Less: Non-operating expenses 1,908,805.14 492,515.62
Including: Loss on disposal of non-current assets 1,408,805.14 22,515.62
III. Total profit (“-” denotes total loss) 491,649,550.65 210,055,451.95
Less: Income tax expenses -100,436.69 -13,617,000.87
IV. Net profit (“-” denotes net loss) 491,749,987.34 223,672,452.82
V. Net other comprehensive income after tax 0 0
VI. Total comprehensive income 491,749,987.34 223,672,452.82
VII. Earnings per share:
(I) Basic earnings per share - -
(II) Diluted earnings per share - -
7. Consolidated cash flow statement from the beginning of the year to the end of the reporting period
Unit: RMB
Item Amounts for the period Amounts for the prior period
I. Cash flows from operating activities:
Cash received from sales of goods and rendering of services 20,682,008,390.14 16,060,904,509.24
Tax rebates received 6,142,112.71 5,646,133.71
Cash received relating to other operating activities 679,050,296.06 651,590,955.66
Subtotal of cash inflows from operating activities 21,367,200,798.91 16,718,141,598.61
Cash paid for goods and services 13,560,139,182.92 11,147,598,194.09
Cash paid to and for employees 796,561,408.01 714,282,143.95
Payments of taxes 1,212,046,214.97 969,117,648.05
Cash paid relating to other operating activities 7,411,593,687.34 7,007,235,108.82
Subtotal of cash outflows from operating activities 22,980,340,493.24 19,838,233,094.91
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Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
Net cash flows from operating activities -1,613,139,694.33 -3,120,091,496.30
II. Cash flows from investment activities:
Cash received from investment income 16,861,112.27 68,750,383.34
Net cash received from disposal of fixed assets, intangible assets and
395,843.67 215,006.40
other long-term assets
Cash received relating to other investment activities 972,391,073.00 304,056,200.00
Subtotal of cash inflows from investment activities 989,648,028.94 373,021,589.74
Cash paid for purchase of fixed assets, intangible assets and other
1,859,472,457.46 1,268,924,733.10
long-term assets
Cash paid on investments 614,110,000.00
Subtotal of cash outflows from investment activities 2,473,582,457.46 1,268,924,733.10
Net cash flows from investment activities -1,483,934,428.52 -895,903,143.36
III. Cash flows from financing activities:
Cash received from investments 40,000,000.00
Cash received from borrowings 39,497,574,620.08 37,799,886,869.48
Cash received relating to other financing activities 13,220,512,476.06 18,328,338,789.75
Subtotal of cash inflows from financing activities 52,758,087,096.14 56,128,225,659.23
Cash paid for repayments of amounts borrowed 31,347,684,782.25 32,481,340,263.49
Cash paid for dividend and profit distribution or interest payment 3,743,137,077.79 1,570,444,086.84
Cash paid relating to other financing activities 12,808,232,653.77 17,378,425,062.47
Subtotal of cash outflows from financing activities 47,899,054,513.81 51,430,209,412.80
Net cash flows from financing activities 4,859,032,582.33 4,698,016,246.43
IV. Effect of foreign exchange rate changes on cash and cash
-28,349,867.42 -2,961,648.36
equivalents
V. Net increase in cash and cash equivalents 1,733,608,592.06 679,059,958.41
Plus: Balance of cash and cash equivalents as at the beginning of the
1,979,861,045.62 1,888,107,493.76
period
VI. Balance of cash and cash equivalents as at the end of the period 3,713,469,637.68 2,567,167,452.17
8. Cash flow statement of the Company from the beginning of the year to the end of the reporting period
Unit: RMB
Item Amounts for the period Amounts for the prior period
I. Cash flows from operating activities:
Cash received from sales of goods and rendering of services 4,878,948,116.17 5,414,479,352.87
Cash received relating to other operating activities 1,113,913,447.97 167,105,052.62
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Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
Subtotal of cash inflows from operating activities 5,992,861,564.14 5,581,584,405.49
Cash paid for goods and services 3,360,835,113.73 3,892,542,059.80
Cash paid to and for employees 303,489,318.02 287,707,598.25
Payments of taxes 281,187,045.12 185,838,759.30
Cash paid relating to other operating activities 689,143,413.39 184,927,673.92
Subtotal of cash outflows from operating activities 4,634,654,890.26 4,551,016,091.27
Net cash flows from operating activities 1,358,206,673.88 1,030,568,314.22
II. Cash flows from investment activities:
Cash received from investment income 16,861,111.11 268,750,383.34
Net cash received from disposal of fixed assets, intangible assets and
17,628.00 93,406.40
other long-term assets
Cash received relating to other investment activities 900,000,000.00
Subtotal of cash inflows from investment activities 916,878,739.11 268,843,789.74
Cash paid for purchase of fixed assets, intangible assets and other
54,575,321.80 62,251.00
long-term assets
Cash paid on investments 2,673,511,220.00 1,240,000,000.00
Subtotal of cash outflows from investment activities 2,728,086,541.80 1,240,062,251.00
Net cash flows from investment activities -1,811,207,802.69 -971,218,461.26
III. Cash flows from financing activities:
Cash received from borrowings 21,235,270,880.03 27,598,877,726.66
Cash received relating to other financing activities 12,686,968,650.12 14,478,903,288.89
Subtotal of cash inflows from financing activities 33,922,239,530.15 42,077,781,015.55
Cash paid for repayments of amounts borrowed 19,317,134,289.21 23,603,939,264.28
Cash paid for dividend and profit distribution or interest payment 3,220,449,336.43 1,041,349,301.02
Cash paid relating to other financing activities 10,548,021,423.28 16,891,324,487.90
Subtotal of cash outflows from financing activities 33,085,605,048.92 41,536,613,053.20
Net cash flows from financing activities 836,634,481.23 541,167,962.35
IV. Effect of foreign exchange rate changes on cash and cash
-368,087.45 -14,150,795.86
equivalents
V. Net increase in cash and cash equivalents 383,265,264.97 586,367,019.45
Plus: Balance of cash and cash equivalents as at the beginning of the
582,578,426.62 49,438,736.95
period
VI. Balance of cash and cash equivalents as at the end of the period 965,843,691.59 635,805,756.40
21
Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
II. Auditors’ Report
Has the third quarterly report been audited?
□ Yes √ No
The third quarterly report of the Company is unaudited.
Board of Directors
SHANDONG CHENMING PAPER HOLDINGS LIMITED
25 October 2017
22
