Report for the First Quarter of 2019 of Shandong Chenming Paper Holdings Limited
Report for the First Quarter of 2019 of Shandong Chenming Paper Holdings Limited
SHANDONG CHENMING PAPER HOLDINGS LIMITED
2019 First Quarterly Report
April 2019
1
Report for the First Quarter of 2019 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 Zhang Bo, 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 First Quarter of 2019 of Shandong Chenming Paper Holdings Limited
II. General Information of the Company
I. Major financial data and financial indicators
Retrospective adjustment to or restatement of the accounting data for prior years by the Company
□ Yes √ No
Increase/decrease
Corresponding period of compared to the
The reporting period
prior year corresponding period of
the prior year
Revenue (RMB) 6,159,836,579.24 7,241,811,895.12 -14.94%
Net profit attributable to shareholders of the
38,223,111.21 782,500,357.98 -95.12%
Company (RMB)
Net profit after extraordinary gains or losses
attributable to shareholders of the Company -23,652,252.85 733,118,818.26 -103.23%
(RMB)
Net cash flows from operating activities (RMB) 1,424,685,047.04 1,267,680,953.19 12.39%
Basic earnings per share (RMB per share) -0.037 0.207 -117.87%
Diluted earnings per share (RMB per share) -0.037 0.207 -117.87%
Rate of return on weighted average net assets -0.61% 3.32% -3.93%
Increase/decrease
Corresponding period of compared to the
The reporting period
prior year corresponding period of
the prior year
Total assets (RMB) 106,040,273,940.00 105,318,734,827.82 0.69%
Net assets attributable to shareholders of the
25,141,902,723.14 25,048,731,454.79 0.37%
Company (RMB)
Data description:
① The net profit attributable to shareholders of the Company does not exclude the effect of the interest on perpetual bonds and
the effect of the dividends on preference shares that have been distributed and declared. When calculating financial indicators such as
earnings per share and rate of return on weighted average net assets, the interest on perpetual bonds of RMB47,835,616 from 1
January 2019 to 31 March 2019 and the distributed dividends on preference shares of RMB98,100,000 for 2019 are deducted.
② Pursuant to the proposed profit distribution plan for 2017 approved at the 2017 annual general meeting of the Company,
based on the total ordinary share capital of 1,936,405,467 shares as at the end of 2017, a cash dividend of RMB6 (tax inclusive) per
10 shares was distributed to ordinary shareholders; and a capitalisation issue made out of the capital reserves of 5 shares for every 10
shares held was distributed to ordinary shareholders. The Company’s share capital increased by 968,202,733 shares. The earnings per
share for the corresponding period of last year were also adjusted accordingly.
Items and amounts of extraordinary gains or losses
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Report for the First Quarter of 2019 of Shandong Chenming Paper Holdings Limited
√ Applicable □ Not applicable
Unit: RMB
Amounts for the period from the
Item beginning of the year to the end Note
of the reporting period
Profit or loss from disposal of non-current assets (including write-off of
-452,007.43
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 certain 77,271,053.63
standard based on state policies) accounted for in profit or loss for the
current period
Non-operating income and expenses other than the above items 4,714,672.46
Less: Effect of income tax 19,917,068.20
Effect of minority interest (after tax) -258,713.60
Total 61,875,364.06 --
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
123,152, of which 102,479 were
of preference shares with
Total number of shareholders of ordinary shares as holders of A shares, 20,307 were
restored voting right as at the 0
at the end of the reporting period holders of B shares and 366 were
end of the reporting period (if
holders of H shares
any)
Shareholding of top ten shareholders
Number of Share pledged or locked-up
Nature of Percentage of Number of
Name of shareholders restricted
shareholders shareholding shares held Status of shares Number
shares held
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Report for the First Quarter of 2019 of Shandong Chenming Paper Holdings Limited
CHENMING HOLDINGS COMPANY State-owned
15.29% 444,146,128 0 Pledged 314,739,850
LIMITED legal person
Overseas
HKSCC NOMINEES LIMITED 12.85% 373,353,125 0
legal person
CHENMING HOLDINGS (HONG KONG) Overseas
12.54% 364,131,563 0
LIMITED legal person
CENTRAL HUIJIN ASSET State-owned
2.07% 60,206,850 0
MANAGEMENT LTD. legal person
NATIONAL SOCIAL SECURITY FUND 418
Others 0.64% 18,648,662 0
PORTFOLIO
CHINA UNIVERSAL FUND - CHINA
CONSTRUCTION BANK - CHINA LIFE
INSURANCE – CHINA LIFE
Others 0.47% 13,701,360 0
INSURANCE’S EQUITY PORTFOLIO
ENTRUSTED TO CHINA UNIVERSAL
FUND
AGRICULTURAL BANK OF CHINA
Others 0.47% 13,637,850 0
LIMITED - CHINA CSI 500 ETF
VANGUARD EMERGING MARKETS Overseas
0.44% 12,912,357 0
STOCK INDEX FUND legal person
Domestic
JIN Xing 0.40% 11,690,950 0
nature person
VANGUARD TOTAL INTERNATIONAL Overseas
0.39% 11,350,008 0
STOCK INDEX FUND legal person
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
CHENMING HOLDINGS COMPANY LIMITED 444,146,128 RMB ordinary shares 444,146,128
Overseas listed
HKSCC NOMINEES LIMITED 373,353,125 373,353,125
foreign shares
Domestic listed
210,717,563
foreign shares
CHENMING HOLDINGS (HONG KONG) LIMITED 364,131,563
Overseas listed
153,414,000
foreign shares
CENTRAL HUIJIN ASSET MANAGEMENT LTD. 60,206,850 RMB ordinary shares 60,206,850
NATIONAL SOCIAL SECURITY FUND 418 PORTFOLIO 18,648,662 RMB ordinary shares 18,648,662
CHINA UNIVERSAL FUND - CHINA CONSTRUCTION BANK -
CHINA LIFE INSURANCE - CHINA LIFE INSURANCE’S 13,701,360 RMB ordinary shares 13,701,360
EQUITY PORTFOLIO ENTRUSTED TO CHINA UNIVERSAL
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Report for the First Quarter of 2019 of Shandong Chenming Paper Holdings Limited
FUND
AGRICULTURAL BANK OF CHINA LIMITED - CHINA CSI 500
13,637,850 RMB ordinary shares 13,637,850
ETF
Domestic listed
VANGUARD EMERGING MARKETS STOCK INDEX FUND 12,912,357 12,912,357
foreign shares
Domestic listed
JIN Xing 11,690,950 11,690,950
foreign shares
Domestic listed
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 11,350,008 11,350,008
foreign shares
A shareholder, Chenming Holdings (Hong Kong) Limited, which is an overseas
legal person, is a wholly-owned subsidiary of a shareholder, Shouguang Chenming
Related party relationship or acting in concert Holdings Company Limited, which is a state-owned legal person. Save for the
among the above shareholders above, it is not aware that any other shareholders of tradable shares are persons
acting in concert. It is also not aware that any other shareholders of tradable shares
are related to each other.
Chenming Holdings Company Limited held 444,146,128 RMB ordinary shares, of
Securities margin trading of top 10 ordinary
which 397,746,128 shares were held through ordinary account and 46,400,000
shareholders, if any
shares were held through credit guarantee securities account.
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 □ No applicable
Unit: share
Total number of shareholders of preference shares
7
as at the end of the reporting period
Shareholding of the top ten shareholders of preference shares
Share pledged or
Number of
Nature of Percentage of Number of locked-up
Name of shareholders restricted
shareholders shareholding shares held Status of
shares held Number
shares
Domestic
BEIJING YIBEN ZHONGXING
non-state-owned 27.78% 12,500,000 0 Pledged 12,500,000
INVESTMENT MANAGEMENT CO., LTD.
legal person
BANK OF COMMUNICATIONS Others 22.44% 10,100,000 0
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Report for the First Quarter of 2019 of Shandong Chenming Paper Holdings Limited
INTERNATIONAL TRUST CO., LTD. –
HUILI NO. 167 SINGLE CAPITAL TRUST
BANK OF COMMUNICATIONS
INTERNATIONAL TRUST CO., LTD. – Others 14.22% 6,400,000 0
HUILI NO. 136 SINGLE CAPITAL TRUST
QILU BANK CO., LTD. - QILU BANK
QUANXIN WEALTH MANAGEMENT Others 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 ASSETS State-owned
6.67% 3,000,000 0
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 shareholders of preference shares, namely “BANK OF
COMMUNICATIONS INTERNATIONAL TRUST CO., LTD. - HUILI NO.
167 SINGLE CAPITAL TRUST” and “BANK OF COMMUNICATIONS
INTERNATIONAL TRUST CO., LTD. - HUILI NO.136 SINGLE CAPITAL
Related party relationship or acting in concert
TRUST”, are persons acting in concert. Save for the above, it is not aware that
among the above shareholders
any other shareholders of preference shares are persons acting in concert, and it
is also not aware whether there is any related party relationship between the
above shareholders of preference shares and the top ten shareholders of
ordinary shares.
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Report for the First Quarter of 2019 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 □ Not applicable
(I) Analysis of the assets and liabilities of the Company
Unit: RMB
Item 31 March 2019 31 December 2018 Change Reason for change
Bills receivable 1,564,424,793.74 1,213,116,491.46 28.96% (1)
Prepayments 1,166,925,861.32 863,739,020.74 35.10% (2)
Non-current assets due within one year 5,255,022,836.99 4,007,503,281.86 31.13% (3)
Other non-current assets 2,185,530,770.12 1,522,493,129.66 43.55% (4)
Explanation of the reasons leading to the major changes:
(1) Bills receivable increased by 28.96% as compared to the beginning of the year mainly due to the increase in the payment for
goods made by bills at the end of the reporting period.
(2) Prepayments increased by 35.10% as compared to the beginning of the year mainly due to the increase in prepayments for
materials during the reporting period.
(3) Non-current assets due within one year increased by 31.13% as compared to the beginning of the year mainly due to the increase
in lease receivable due within one year at the end of the reporting period.
(4) Other non-current assets increased by 43.55% as compared to the beginning of the year mainly due to the subscription of shares
of Nanyue Bank by the Company during the reporting period.
(II) Reasons for significant year on year changes of income statement items during the
reporting period
Unit: RMB
Item January – March 2019 January – March 2018 Change Reason for change
Revenue 6,159,836,579.24 7,241,811,895.12 -12.86% (1)
Loss on impairment of assets -82,790,921.68
59,082,697.85 -342.32% (2)
Credit impairment loss -60,378,880.05
Non-operating income 85,638,465.22 2,608,937.24 3182.50% (3)
Income tax expenses 66,242,708.11 207,172,541.16 -68.03% (4)
Explanation of the reasons leading to the major changes:
(1) Revenue decreased by 12.86%as compared to the corresponding period of last year mainly due to a year-on-year decrease in the prices of
machine-made paper.
(2) Loss on impairment of assets and credit impairment loss decreased by 342.32% as compared to the corresponding period of last year
mainly due to the change of the conditions that caused inventory impairment and reversal of inventory impairment provision.
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Report for the First Quarter of 2019 of Shandong Chenming Paper Holdings Limited
(3) Non-operating income increased by 3182.50% as compared to the corresponding period of last year mainly due to the increase of
government grants during the reporting period.
(4) Income tax expenses decreased by 68.03% as compared to the corresponding period of last year mainly due to a year-on-year decrease in
the profit of the Company during the reporting period..
(III) Analysis of cash flows during the reporting period
Unit: RMB
Item January – March 2019 January – March 2018 Change Reason for change
Net cash flows from operating activities 1,424,685,047.04 1,267,680,953.19 12.39% (1)
Net cash flows from investment activities -866,817,537.75 -1,724,411,977.89 49.73% (2)
Net cash flows from financing activities 104,038,375.61 -134,535,571.79 177.33% (3)
Explanation of the reasons leading to the major changes:
(1) Net cash flows from operating activities increased by 12.39% as compared to the beginning of the year mainly due to a
year-on-year increase in net recovery of proceeds of the financial leasing business.
(2) Net cash flows from investing activities increased by 49.73% as compared to the beginning of the year mainly due to the decrease
in capital expenditures after work in progress basically completed.
(3) Net cash flows from financial activities increased by 177.33% as compared to the beginning of the year mainly due to a
year-on-year decrease in repayment of debts due by the Company during the reporting period
II. Progress in respect to material matters and analysis of the related effects and solutions
□Applicable √ Not applicable
Progress of share repurchase
□ Applicable √ Not applicable
Progress of decrease in the holding of repurchased shares by way of bidding
□ Applicable √ Not 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 √ Not applicable
During the reporting period, there were no 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.
IV. Estimate of the operating results for January - June 2019
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
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Report for the First Quarter of 2019 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.
10
Report for the First Quarter of 2019 of Shandong Chenming Paper Holdings Limited
IV Financial Statements
I. Financial Statements
1. Consolidated balance sheet
Prepared by: Shandong Chenming Paper Holdings Limited
31 March 2019
Unit: RMB
Item 31 March 2019 31 December 2018
CURRENT ASSETS:
Monetary funds 20,195,953,397.17 19,292,774,747.79
Bills receivable and accounts receivable 5,224,506,450.29 4,617,603,496.05
Including: Bills receivable 1,564,424,793.74 1,213,116,491.46
Accounts receivable 3,660,081,656.55 3,404,487,004.59
Prepayments 1,166,925,861.32 863,739,020.74
Other receivables 2,131,155,979.26 2,133,089,983.39
Including: Interest receivable 145,717,684.31 198,577,632.43
Inventories 5,777,025,018.30 6,771,488,433.74
Non-current assets due within one year 5,255,022,837.00 4,007,503,281.86
Other current assets 9,578,368,257.36 10,281,312,825.13
Total current assets 49,328,957,800.70 47,967,511,788.70
NON-CURRENT ASSETS:
Long-term receivables 6,101,078,391.22 7,926,610,770.86
Long-term equity investments 484,753,517.14 484,674,282.77
Other non-current financial assets 103,000,000.00 103,000,000.00
Investment properties 4,759,298,096.95 4,844,993,039.62
Fixed assets 29,123,100,818.09 27,913,986,152.68
Construction in progress 11,232,178,807.62 11,871,350,821.55
Intangible assets 1,928,405,206.91 1,939,355,274.98
Goodwill 5,969,626.57 5,969,626.57
Long-term prepaid expenses 132,377,479.80 134,916,241.81
Deferred income tax assets 655,623,424.88 603,873,698.62
Other non-current assets 2,185,530,770.12 1,522,493,129.66
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Report for the First Quarter of 2019 of Shandong Chenming Paper Holdings Limited
Total non-current assets 56,711,316,139.30 57,351,223,039.12
Total assets 106,040,273,940.00 105,318,734,827.82
CURRENT LIABILITIES:
Short-term borrowings 42,415,220,578.50 40,227,945,361.89
Bills payable and accounts payable 8,186,746,903.16 8,369,198,199.59
Staff remuneration payables 125,556,633.11 135,373,407.70
Taxes payable 428,529,364.48 451,651,198.64
Other payables 1,567,918,963.25 1,777,718,017.48
Including: Interest payable 225,561,505.67 226,788,777.59
Contract liabilities 450,838,151.37 419,540,133.74
Non-current liabilities due within one year 6,038,703,014.40 7,216,305,771.01
Other current liabilities 2,983,332,844.66 2,816,956,481.68
Total current liabilities 62,196,846,452.93 61,414,688,571.73
NON-CURRENT LIABILITIES:
Long-term borrowings 7,922,301,553.56 7,798,934,484.94
Bonds payable 2,097,720,000.00 2,097,562,500.00
Long-term payables 3,735,359,917.94 3,900,255,693.44
Provisions 325,259,082.28 325,259,082.28
Deferred income 1,822,732,572.82 1,862,395,197.61
Other non-current liabilities 1,974,519,015.59 2,047,948,069.73
Total non-current liabilities 17,877,892,142.19 18,032,355,028.00
TOTAL LIABILITIES 80,074,738,595.12 79,447,043,599.73
OWNERS’ EQUITY:
Share capital 2,904,608,200.00 2,904,608,200.00
Other equity instruments 7,465,500,000.00 7,465,500,000.00
Including: Preference shares 4,477,500,000.00 4,477,500,000.00
Perpetual bonds 2,988,000,000.00 2,988,000,000.00
Capital reserves 5,091,449,915.14 5,091,449,915.14
Other comprehensive income -583,472,023.87 -736,520,181.01
Special reserves 3,257,998.47 3,257,998.47
Surplus reserves 1,148,888,912.11 1,148,888,912.11
General risk reserves 64,123,919.23 64,123,919.23
Retained profit 9,047,545,802.06 9,107,422,690.85
Total equity attributable to equity holders of the company 25,141,902,723.14 25,048,731,454.79
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Report for the First Quarter of 2019 of Shandong Chenming Paper Holdings Limited
Minority interest 823,632,621.74 822,959,773.30
Total owners’ equity 25,965,535,344.88 25,871,691,228.09
TOTAL LIABILITIES AND OWNERS’ EQUITY 106,040,273,940.00 105,318,734,827.82
Legal Representative: Chen Hongguo Head in charge of accounting: Dong Lianming Head of the accounting department: Zhang Bo
2. Balance sheet of the Company
Unit: RMB
Item 31 March 2019 31 December 2018
CURRENT ASSETS:
Monetary funds 8,133,817,288.55 8,160,234,434.15
Bills receivable and accounts receivable 2,117,516,939.60 1,785,939,152.84
Including: Bills receivable 1,341,393,665.34 436,662,187.80
Accounts receivable 776,123,274.26 1,349,276,965.04
Prepayments 4,010,051,371.76 1,584,388,551.00
Other receivables 17,131,850,216.88 19,405,314,961.24
Including: Interest receivable 78,320,102.39 77,257,506.25
Inventories 956,794,487.03 1,133,888,230.37
Other current assets 151,630,899.25 140,126,157.18
Total current assets 32,501,661,203.07 32,209,891,486.78
NON-CURRENT ASSETS:
Long-term receivables 516,925,607.06 516,925,607.06
Long-term equity investments 23,535,229,813.87 22,487,417,443.24
Investment in other equity instruments 3,000,000.00 3,000,000.00
Other non-current financial assets 103,000,000.00 103,000,000.00
Fixed assets 3,647,516,368.70 2,103,164,588.93
Construction in progress 598,757,990.85 2,014,493,138.68
Intangible assets 455,381,935.89 458,365,862.52
Deferred income tax assets 365,034,033.93 303,861,021.95
Other non-current assets 9,800,000.00 9,800,000.00
Total non-current assets 29,234,645,750.30 28,000,027,662.38
Total assets 61,736,306,953.37 60,209,919,149.16
CURRENT LIABILITIES:
Short-term borrowings 9,091,326,249.07 7,668,689,104.31
Bills payable and accounts payable 12,488,642,728.92 11,318,835,274.79
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Report for the First Quarter of 2019 of Shandong Chenming Paper Holdings Limited
Contract liabilities 4,001,450,623.08 3,299,778,982.47
Staff remuneration payables 63,662,541.20 53,899,651.15
Taxes payable 66,861,870.20 59,595,083.56
Other payables 5,284,469,913.82 5,465,488,890.52
Including: Interest payable 139,804,333.34 139,444,333.34
Non-current liabilities due within one year 3,308,818,149.56 3,256,715,148.39
Other current liabilities 3,294,105,426.06 3,527,956,481.68
Total current liabilities 37,599,337,501.91 34,650,958,616.87
NON-CURRENT LIABILITIES:
Long-term borrowings 864,438,729.84 1,335,482,969.43
Bonds payable 2,097,720,000.00 2,097,562,500.00
Long-term payables 1,598,835,567.57 2,072,502,840.48
Provisions 325,259,082.28 325,259,082.28
Deferred income 45,326,721.31 46,412,014.99
Other non-current liabilities 1,517,966,671.00 1,592,166,670.00
Total non-current liabilities 6,449,546,772.00 7,469,386,077.18
TOTAL LIABILITIES 44,048,884,273.91 42,120,344,694.05
OWNERS’ EQUITY:
Share capital 2,904,608,200.00 2,904,608,200.00
Other equity instruments 7,465,500,000.00 7,465,500,000.00
Including: Preference shares 4,477,500,000.00 4,477,500,000.00
Perpetual bonds 2,988,000,000.00 2,988,000,000.00
Capital reserves 4,953,557,435.19 4,953,557,435.19
Surplus reserves 1,136,699,330.20 1,136,699,330.20
Retained profit 1,227,057,714.07 1,629,209,489.72
Total owners’ equity 17,687,422,679.46 18,089,574,455.11
TOTAL LIABILITIES AND OWNERS’ EQUITY 61,736,306,953.37 60,209,919,149.16
3. Consolidated income statement
Unit: RMB
Item Amounts for the period Amounts for the prior period
I. Total revenue 6,159,836,579.24 7,241,811,895.12
Including: Revenue 6,159,836,579.24 7,241,811,895.12
II. Total operating costs 6,151,098,241.89 6,348,793,347.27
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Report for the First Quarter of 2019 of Shandong Chenming Paper Holdings Limited
Including: Operating costs 4,741,194,631.64 4,692,310,599.07
Taxes and surcharges 65,722,322.73 62,538,374.77
Sales and distribution expenses 287,382,511.79 270,903,272.57
General and administrative expenses 272,195,901.33 277,118,055.37
Research and development expenses 192,763,955.03 218,189,602.03
Finance expenses 735,008,721.10 768,650,745.61
Including: Interest expenses 785,193,442.24 740,613,828.95
Interest income 85,022,879.60 54,514,358.78
Loss on impairment of assets -82,790,921.68 59,082,697.85
Credit impairment loss -60,378,880.05
Plus: Other income 18,406,874.30 35,587,255.87
Investment income (“-” denotes loss) 79,234.37 38,745,214.22
Including: Investment income from associates and
79,234.37 -5,008,613.46
joint ventures
Gain on change in fair value (“-” denotes loss) 18,500,000.00
Gain on disposal of assets (“-” denotes loss) -3,619,496.92 5,264.44
III. Operating profit (“-” denotes loss) 23,604,949.10 985,856,282.38
Plus: Non-operating income 85,638,465.22 2,608,937.24
Less: Non-operating expenses 4,104,746.56 905,848.50
IV. Total profit (“-” denotes total loss) 105,138,667.76 987,559,371.12
Less: Income tax expenses 66,242,708.11 207,172,541.16
V. Net profit (“-” denotes net loss) 38,895,959.65 780,386,829.96
(I) Classification according to the continuity of operation
Net profit from continuing operations (“-” denotes net
38,895,959.65 780,386,829.96
loss)
(II) Classification according to ownership
1. Net profit attributable to shareholders of the Company 38,223,111.21 782,500,357.98
2. Profit or loss of minority interest 672,848.44 -2,113,528.02
VI. Net other comprehensive income after tax 153,048,157.14 280,681,880.86
Net other comprehensive income after tax attributable to
153,048,157.14 280,681,880.86
shareholders of the Company
Other comprehensive income that will be reclassified
153,048,157.14 280,681,880.86
to profit or loss in sub sequent periods
Exchange differences on translation of foreign
153,048,157.14 280,681,880.86
operations
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Report for the First Quarter of 2019 of Shandong Chenming Paper Holdings Limited
VII. Total comprehensive income 191,944,116.79 1,061,068,710.82
Total other comprehensive income attributable to
191,271,268.35 1,063,182,238.84
shareholders of the Company
Total comprehensive income attributable to minority
672,848.44 -2,113,528.02
interest
VIII. Earnings per share:
(I) Basic earnings per share -0.037 0.207
(II) Diluted earnings per share -0.037 0.207
Legal Representative: Chen Hongguo Head in charge of accounting: Dong Lianming Head of the accounting department: Zhang Bo
4. Income statement of the Company
Unit: RMB
Item Amounts for the period Amounts for the prior period
I. Revenue 1,180,608,914.97 1,450,100,125.24
Less: Operating costs 996,667,766.88 1,004,299,850.90
Taxes and surcharges 11,315,088.59 23,185,158.78
Sales and distribution expenses 41,028,655.63 41,118,479.35
General and administrative expenses 79,878,521.50 71,959,572.80
Research and development expenses 53,425,038.77 56,885,732.93
Finance expenses 359,385,884.76 160,195,809.53
Including: Interest expenses 604,583,755.19 567,560,286.21
Interest income 257,495,978.51 415,216,766.54
Loss on impairment of assets -3,637,308.53
Credit impairment loss 1,063,774.22
Plus: Other income 1,085,293.68 1,085,293.65
Investment income (“-” denotes loss) 312,370.63 35,095,805.72
Including: Investment income from associates and
312,370.63 -154,294.28
joint ventures
Gain on change in fair value (“-” denotes loss) 18,500,000.00
Gain on disposal of assets (“-” denotes loss) -3,632,875.13 121.63
II. Operating profit (“-” denotes loss) -364,391,026.20 150,774,050.48
Plus: Non-operating income 2,648,246.00 164,617.03
Less: Non-operating expenses 3,482,007.43 621,903.47
III. Total profit (“-” denotes total loss) -365,224,787.63 150,316,764.04
Less: Income tax expenses -61,173,011.98 18,641,304.02
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Report for the First Quarter of 2019 of Shandong Chenming Paper Holdings Limited
IV. Net profit (“-” denotes net loss) -304,051,775.65 131,675,460.02
Net profit from continuing operations (“-” denotes net
-304,051,775.65 131,675,460.02
loss)
V. Total comprehensive income -304,051,775.65 131,675,460.02
VI. Earnings per share:
(I) Basic earnings per share - -
(II) Diluted earnings per share - -
5. Consolidated cash flow statement
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
6,865,397,396.38 8,279,206,351.45
services
Tax rebates received 345,075.02 2,412,586.40
Cash received relating to other operating activities 1,574,349,856.47 580,565,896.58
Subtotal of cash inflows from operating activities 8,440,092,327.87 8,862,184,834.43
Cash paid for goods and services 5,663,841,703.91 6,100,012,550.54
Cash paid to and for employees 346,721,083.55 338,948,088.15
Payments of taxes and surcharges 552,838,124.31 497,568,122.37
Cash paid relating to other operating activities 452,006,369.06 657,975,120.18
Subtotal of cash outflows from operating activities 7,015,407,280.83 7,594,503,881.24
Net cash flows from operating activities 1,424,685,047.04 1,267,680,953.19
II. Cash flows from investment activities:
Cash received from investments 30,000,000.00
Cash received from investment income 112,541,400.00
Net cash received from disposal of fixed assets,
76,631.50 17,384.00
intangible assets and other long-term assets
Subtotal of cash inflows from investment activities 76,631.50 142,558,784.00
Cash paid for purchase of fixed assets, intangible assets
176,754,169.25 591,970,761.89
and other long-term assets
Cash paid on investments 1,171,957,789.46
Cash paid relating to other investment activities 690,140,000.00 103,042,210.54
Subtotal of cash outflows from investment activities 866,894,169.25 1,866,970,761.89
Net cash flows from investment activities -866,817,537.75 -1,724,411,977.89
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Report for the First Quarter of 2019 of Shandong Chenming Paper Holdings Limited
III. Cash flows from financing activities:
Cash received from borrowings 9,537,282,829.45 9,233,253,564.49
Cash received relating to other financing activities 2,432,706,925.14 6,034,958,302.56
Subtotal of cash inflows from financing activities 11,969,989,754.59 15,268,211,867.05
Cash repayments on borrowing 8,052,875,959.00 10,182,447,626.95
Cash paid for dividend and profit distribution or interest
712,139,280.54 651,766,445.79
payment
Cash paid relating to other financing activities 3,100,936,139.44 4,568,533,366.10
Subtotal of cash outflows from financing activities 11,865,951,378.98 15,402,747,438.84
Net cash flows from financing activities 104,038,375.61 -134,535,571.79
IV. Effect of foreign exchange rate changes on cash and
-202,918,477.21 -18,600,721.48
cash equivalents
V. Net increase in cash and cash equivalents 458,987,407.69 -609,867,317.97
Plus: Balance of cash and cash equivalents as at the
2,381,558,242.52 2,804,408,374.46
beginning of the period
VI. Balance of cash and cash equivalents as at the end of the
2,840,545,650.21 2,194,541,056.49
period
6. Cash flow statement of the Company
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
1,344,720,749.36 1,646,162,348.96
services
Cash received relating to other operating activities 618,744,996.01 21,435,511.08
Subtotal of cash inflows from operating activities 1,963,465,745.37 1,667,597,860.04
Cash paid for goods and services 610,419,459.85 800,010,191.80
Cash paid to and for employees 113,868,782.40 109,109,796.36
Payments of taxes and surcharges 30,119,219.00 129,294,420.54
Cash paid relating to other operating activities 395,606,491.12 2,483,754,448.42
Subtotal of cash outflows from operating activities 1,150,013,952.37 3,522,168,857.12
Net cash flows from operating activities 813,451,793.00 -1,854,570,997.08
II. Cash flows from investment activities:
Cash received from investments 30,000,000.00
Cash received from investment income 112,541,400.00
Net cash received from disposal of fixed assets, 25,022.00
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Report for the First Quarter of 2019 of Shandong Chenming Paper Holdings Limited
intangible assets and other long-term assets
Subtotal of cash inflows from investment activities 25,022.00 142,541,400.00
Cash paid for purchase of fixed assets, intangible assets
2,752,000.00 6,127,000.00
and other long-term assets
Cash paid on investments 1,047,500,000.00
Subtotal of cash outflows from investment activities 1,050,252,000.00 6,127,000.00
Net cash flows from investment activities -1,050,226,978.00 136,414,400.00
III. Cash flows from financing activities:
Cash received from borrowings 3,608,046,421.28 2,680,503,196.92
Cash received relating to other financing activities 1,399,028,643.17 5,408,064,947.95
Subtotal of cash inflows from financing activities 5,007,075,064.45 8,088,568,144.87
Cash repayments on borrowing 2,213,232,691.23 3,605,796,202.77
Cash paid for dividend and profit distribution or interest
364,442,666.62 438,519,151.51
payment
Cash paid relating to other financing activities 2,224,412,965.16 2,710,525,941.91
Subtotal of cash outflows from financing activities 4,802,088,323.01 6,754,841,296.19
Net cash flows from financing activities 204,986,741.44 1,333,726,848.68
IV. Effect of foreign exchange rate changes on cash and
-296,116.69 5,801,533.68
cash equivalents
V. Net increase in cash and cash equivalents -32,084,560.25 -378,628,214.72
Plus: Balance of cash and cash equivalents as at the
607,805,063.02 1,020,262,069.85
beginning of the period
VI. Balance of cash and cash equivalents as at the end of the
575,720,502.77 641,633,855.13
period
II. Reason for Adjustment in the Financial Statement
1. Adjustment to the relevant items in the financial statements at the beginning of the year
due to the first adoption of the New Standards for Financial Instruments, the New Standards
for Revenue and the New Standards for Lease
□Applicable √ Not applicable
2. Reason for the retrospective adjustment to the comparative data in the prior period due to
the first adoption of the New Standards for Financial Instruments and the New Standards for
Lease
□ Applicable √ Not applicable
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Report for the First Quarter of 2019 of Shandong Chenming Paper Holdings Limited
III. Auditors’ Report
Has the first quarterly report already been audited yet?
□ Yes √ No
The first quarterly report of the Company is unaudited.
By order of the Board
Shandong Chenming Paper Holdings Limited
29 April 2019
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