Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
SHANDONG CHENMING PAPER HOLDINGS LIMITED*
201 Third Quarterly Report
October 2019
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
I Important Notice
The board of directors (the “Board”), the supervisory committee (the
“Supervisory Committee”) and the directors (the “Directors”), supervisors
(the “Supervisors”) and senior management (the “Senior Management”) of
the Company hereby warrant the truthfulness, accuracy and completeness of
this quarterly report which does not contain false representations, misleading
statements or material omissions, and severally and jointly accept legal
responsibility for its contents.
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.
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
II General Information of the Company
I. Major accounting data and financial indicators
Retrospective adjustment to or restatement of the accounting data for prior years by the Company
□ Yes √ No
Increase / decrease
As at the end of the reporting As at the end of the prior as at the end of the
period year reporting period as
compared to the end of the
prior year
Total assets (RMB) 104,117,892,347.23 105,318,734,827.82 -1.14%
Net assets attributable to shareholders
24,484,857,440.77 25,048,731,454.79 -2.25%
of the Company (RMB)
Increase/decrease for the
Increase/decrease The period from period from the beginning
compared to the the beginning of of the year to the end of
The reporting
corresponding the year to the end the reporting period as
period period of the prior of the reporting compared to the
year period corresponding period of
the prior year
Revenue (RMB) 8,665,530,249.94 9.12% 22,014,178,363.64 -6.29%
Net profit attributable to shareholders
557,960,253.43 -19.89% 1,067,755,825.72 -56.97%
of the Company (RMB)
Net profit after extraordinary gains or
losses attributable to shareholders of 447,511,508.11 -30.70% 750,656,504.32 -65.62%
the Company (RMB)
Net cash flows from operating
-- -- 6,499,224,141.50 -28.37%
activities (RMB)
Basic earnings per share (RMB per
0.14 -22.22% 0.15 -72.22%
share)
Diluted earnings per share (RMB per
0.14 -22.22% 0.15 -72.22%
share)
Rate of return on net assets on
2.26% -0.73% 2.47% -6.29%
weighted average basis
Explanation:
Net profit attributable to shareholders of the Company does not exclude the effect of the interest of
perpetual bonds and the dividends of preference shares paid and declared to be paid. When calculating
financial indicators such as earnings per share and the rate of return on net assets on weighted average basis,
the interest for perpetual bonds from 1 January 2019 to 30 September 2019 of RMB145,101,369.86 and the
dividend on preference shares paid in 2019 of RMB493,494,767.52 are deducted.
Items and amounts of extraordinary gains or losses
√ Applicable □ Not applicable
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
Unit: RMB
Amount for the period from
the beginning of the year to
Item Explanation
the end of the reporting
period
Profit or loss from disposal of non-current assets (including
write-off of asset impairment provision) 152,787,688.63
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 243,404,400.04
certain standard based on state policies) accounted for in
profit or loss for the current period
Non-operating gains and losses other than the above items 10,767,741.03
Gain or loss from changes in fair value of consumable
biological assets subsequently measured at fair value -1,883,064.80
Less: Effect of income tax 86,364,950.62
Effect of minority interests (after tax) 1,612,492.88
Total 317,099,321.40 —
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 shareholdings 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 Total number of shareholders of
127,898, of which 107,553 were holders preference shares with restored
ordinary shares as at the end of the of A shares, 19,975 were holders of B 0
as end
reporting period holders of H shares shares and 370 were holders of H shares voting rightperiodat (iftheany) of the
reporting
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
Shareholding of top 10 shareholders
Nature of Percentage of Number of Number ofShare pledged or locked-up
Name of shareholders restricted
shareholders shareholding shares held
shares held Status of Number
shares
CHENMIN GHOLDINGS COMPANY State-owned 15.33% 445,396,128 0 Pledged 354,643,395
LIMITED legal person
Overseas
HKSCC NOMINEES LIMITED 12.84% 373,065,875 0
legal person
CHENMING HOLDINGS Overseas
12.54% 364,131,563 0
(HONG KONG) LIMITED legal person
CENTRAL HUIJIN ASSET State-owned
2.07% 60,206,850 0
MANAGEMENT LTD. legal person
AGRICULTURAL BANK OF CHINA
LIMITED – CHINA SECURITIES 500 0.50% 14,435,450 0
Others
INDEX ETF SECURITIES
INVESTMENT FUND
VANGUARD EMERGING Overseas
0.44% 12,912,357 0
MARKETS STOCK INDEX FUND legal person
VANGUARD TOTAL Overseas
INTERNATIONAL STOCK INDEX legal person 0.42% 12,233,170 0
FUND
Domestic
CHEN Hongguo 0.38% 11,080,044 8,310,033
nature person
Domestic
CHEN Suiqiang (陳穗強) 0.38% 11,010,200 0
nature person
Domestic
JIN Xing 0.34% 9,917,002 0
nature person
Shareholding of the top ten shareholders of non-restricted shares
Number of Class of shares
Name of shareholders non-restricted
shares held Class of shares Number
CHENMING HOLDINGS COMPANY LIMITED 445,396,128 RMB ordinary shares 445,396,128
HKSCC NOMINEES LIMITED 373,065,875 Overseas listed foreign shares 373,065,875
Domestic listed foreign shares 210,717,563
CHENMING HOLDINGS (HONG KONG) 364,131,563
LIMITED Overseas listed foreign shares 153,414,000
CENTRAL HUIJIN ASSET MANAGEMENT LTD. 60,206,850 RMB ordinary shares 60,206,850
AGRICULTURAL BANK OF CHINA LIMITED –
CHINA SECURITIES 500 INDEX ETF 14,435,450 RMB ordinary shares 14,435,450
SECURITIES INVESTMENT FUND
VANGUARD EMERGING MARKETS STOCK 12,912,357 Domestic listed foreign shares 12,912,357
INDEX FUND
VANGUARD TOTAL INTERNATIONAL STOCK 12,233,170 Domestic listed foreign shares 12,233,170
INDEX FUND
Chen Suiqiang (陳穗強) 11,010,200 RMB ordinary shares 11,010,200
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
JIN Xing 9,917,002 Domestic listed foreign shares 9,917,002
LSV EMERGING MARKETS EQUITY FUND,L.P. 9,154,200 Domestic listed foreign shares 9,154,200
Chenming Holdings (Hong Kong) Limited, an overseas legal person shareholder, is a
wholly-owned subsidiary of Chenming Holdings Company Limited, which is a state-owned
legal person shareholder. Hence they are persons acting in concert under Administration
Measure on Disclosure of Information on the Change of Shareholding in Listed Companies
Related party relationship
or acting in concert among (上市公司股東持股變動信息披露管理辦法). A shareholder, Chen Hongguo, is the legal
the above shareholders representative, chairman and general manager of Chenming Holdings Company Limited.
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.
Chenming Holdings Company Limited holds 445,396,128 RMB ordinary shares, of which
402,196,128 shares are held through ordinary account and 43,200,000 shares are held
Securities margin trading through credit guarantee securities accounts;
of top 10 ordinary
shareholders (if any) Chen Suiqiang (陳穗強) holds 11,010,200 RMB ordinary shares, of which 0 shares are held
through ordinary account and 11,010,200 shares are held through credit guarantee securities
accounts.
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
7
period
Shareholding of the top ten shareholders of preference shares
Share pledged or
Nature of Percentag Number of Number of locked-up
e of share
Name of shareholders
shareholders shares held restricted Status of
holding shares held Number
shares
BEIJING YIBEN ZHONGXING Domestic
INVESTMENT MANAGEMENT non-state-owned 27.78% 12,500,000 0
Pledged 12,500,000
CO., LTD. legal person
BANK OF COMMUNICATIONS
INTERNATIONAL TRUST CO., 0
Others 22.44% 10,100,000
LTD. –HUILI NO.167 SINGLE
CAPITAL TRUST
BANK OF COMMUNICATIONS
INTERNATIONAL TRUST CO., Others 14.22% 6,400,000 0
LTD. – HUILI NO.136 SINGLE
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
CAPITAL TRUST
QILU BANK CO., LTD. – QILU
BANK QUANXIN WEALTH 0
Others 13.33% 6,000,000
MANAGEMENT PRODUCT
SERIES
Domestic
HENGFENG BANK CO., LTD. non-state-owned 11.11% 5,000,000 0
legal person
SHANGHAI STATE-OWNED State-owned 0
6.67% 3,000,000
ASSETS OPERATION CO., LTD. legal person
NCF – MINSHENG BANK –
CHINA FORTUNE
INTERNATIONAL TRUST – 0
Others 4.44% 2,000,000
CHINA FORTUNE TRUSTMIN
XIN NO. 11 SINGLE CAPITAL
TRUST
Shareholders of preference shares, namely “BANK OF COMMUNICATIONS
INTERNATIONAL TRUST CO., LTD. – HUILI NO.167 SINGLE CAPITAL
Related party relationship or acting TRUST” and “BANK OF COMMUNICATIONS INTERNATIONAL TRUST
in concert among the above CO., LTD. – HUILI NO.136 SINGLE CAPITAL TRUST”, are persons acting in
shareholders concert. Save for the above, it is not aware that any other shareholders of
preference shares are persons acting in concert and it is also not aware that any
other shareholders of preference shares are related to each other.
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
III Material Matters
I. Details of changes in major financial data and financial indicators during the
reporting period and reasons thereof
√ Applicable □ Not applicable
(I) Analysis of the assets and liabilities of the Company
Unit: RMB
30 September Reason for
Item 31 December 2018 Change
2019 change
Bills receivable 783,620,411.85 1,213,116,491.46 -35.40% （1）
Non-current assets due within one year 5,671,647,640.06 4,007,503,281.86 41.53% （2）
Long-term receivables 3,877,741,117.94 7,926,610,770.86 -51.08% （3）
Other non-current financial assets 763,160,000.00 103,000,000.00 640.93% （4）
Bills payable 2,271,206,630.23 4,218,969,554.93 -46.17% （5）
Contract liabilities 1,078,697,907.67 419,540,133.74 157.11% （6）
Other payables 2,627,180,153.42 1,777,718,017.48 47.78% （7）
Other current liabilities 930,173,869.45 2,816,956,481.68 -66.98% （8）
Other non-current liabilities 3,043,787,568.44 2,047,948,069.73 48.63% （9）
Explanation of the reasons leading to the major changes:
(1) Bills receivable decreased by 35.40% as compared to the beginning of the year mainly due to the
Company’s increased payment by bills resulting in decreased subsisting bills.
(2) Non-current assets due within one year increased by 41.53% as compared to the beginning of the year
mainly due to increased payments for financing lease due within one year.
(3) Long-term receivables decreased by 51.08% as compared to the beginning of the year mainly due to
reduced size of financing lease business of the Company.
(4) Other non-current financial assets increased by 640.93% as compared to the beginning of the year mainly
due to the Company’s increased investment of RMB662 million in Guangdong Nanyue Bank during the
reporting period.
(5) Bill receivables decreased by 46.17% as compared to the beginning of the year mainly due to decreased
payment for goods by bills subsisting at the end of the reporting period.
(6) Contract liabilities increased by 157.11% as compared to the beginning of the year mainly due to increased
receipt of prepayment by the Company during the reporting period.
(7) Other payables increased by 47.78% as compared to the beginning of the year mainly due to the
Company’s increase in borrowings from its controlling shareholder Chenming Holdings Company
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
Limited during the reporting period.
(8) Other current liabilities decreased by 66.98% as compared to the beginning of the year mainly due to the
Company’s repayment of part of the short-term commercial paper falling due during the reporting period.
(9) Other non-current liabilities increased by 48.63% as compared to the beginning of the year mainly due to
the Company’s issue of RMB1.2 billion medium-term notes during the reporting period.
(II) Reasons for significant year-on-year changes of income statement items
Unit: RMB
January - September January - September Reason for
Item Change
2019 2018 change
Interest income 304,096,729.01 240,596,355.69 26.39% （1）
Loss on impairment of credit -261,549,886.93 -183,525,156.37 42.51% （2）
Non-operating income 268,505,785.14 213,875,626.25 25.54% （3）
Income tax espenses 286,659,474.62 553,555,763.61 -48.21% （4）
Explanation of the reasons leading to the major changes:
(1) Interest income increased by 26.39% as compared to the corresponding period of last year mainly due to
the year-on-year increase in subsisting monetary funds during the reporting period.
(2) Loss on impairment of credit increased by 42.51% as compared to the corresponding period of last year
mainly due to the year-on-year increase in the Company’s impairment provision for accounts receivable.
(3) Non-operating income increased by 25.54% as compared to the corresponding period of last year mainly
due to increased government grants received by the Company during the reporting period
(4) Income tax expenses decreased by 48.21% as compared to the corresponding period of last year mainly
due to year-on-year decrease in profit recorded by the Company during the reporting period.
(III) Analysis of cash flows during the reporting period
Unit: RMB
January - September January - September Reason for
Item Change
201９ 2018 change
Net cash flows from operating
6,499,224,141.50 9,073,361,847.59 -28.37% （1）
activities
Net cash flows from investment
-1,620,520,894.62 -2,476,359,313.37 34.56% （2）
activities
Net cash flows from financing
-4,486,844,584.52 -4,988,513,761.32 10.06% （3）
activities
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
Explanation of the reasons leading to the major changes:
(1) Net cash flows from operating activities decreased by 28.37% as compared to the corresponding period of
last year mainly due to year-on-year decrease in profit recorded by the Company during the reporting
period.
(2) Net cash flows from investing activities increased by 34.56% as compared to the corresponding period of
last year mainly due to year-on-year decrease in projects during the reporting period.
(3) Net cash flows from financing activities increased by 10.06% as compared to the corresponding period of
last year mainly due to year-on-year decrease in bonus distribution by the Company during the reporting
period.
II. Analysis of and description on the progress of material matters, their impacts and
solutions
□ Applicable √ Not applicable
Progress of the implementation of share repurchase
□ Applicable √ Not applicable
Progress of the implementation of reduction of shares repurchased by way of centralized 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. Security investments
□ Applicable √ Not applicable
The Company did not have any security investments during the reporting period.
V. Entrusted wealth management
□ Applicable √ Not applicable
The Company did not have any entrusted wealth management during the reporting period.
VI. Derivative investments
□ Applicable √ Not applicable
The Company did not have any derivative investments during the reporting period.
VII. Registration form for reception of research investigations, communications and
interviews during the reporting period
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
□ Applicable √ Not applicable
No research investigations, communications and interviews of the Company occurred
during the reporting period.
VIII. External guarantees against rules and regulations
□ Applicable √ Not applicable
There was no external guarantee provided by the Company which was against rules and
regulations during the reporting period.
VIII. 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.
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
IV Financial Statements
I. Financial Statements
1. Consolidated balance sheet
Prepared by: Shandong Chenming Paper Holdings Limited
30 September 2019
Unit: RMB
Item 30 September 2019 31 December 2018
CURRENT ASSETS：
Monetary funds 21,902,281,589.46 19,292,774,747.79
Bills receivable 783,620,411.85 1,213,116,491.46
Accounts receivable 3,568,511,583.34 3,404,487,004.59
Prepayments 668,903,792.02 863,739,020.74
Other receivables 2,832,210,651.42 2,133,089,983.39
Including: Interest receivable 152,432,010.49 198,577,632.43
Inventories 4,804,144,399.56 6,771,488,433.74
Non-current assets due within one year 5,671,647,640.06 4,007,503,281.86
Other current assets 9,122,121,778.38 10,281,312,825.13
Total current assets 49,353,441,846.09 47,967,511,788.70
NON-CURRENT ASSETS：
Long-term receivables 3,877,741,117.94 7,926,610,770.86
Long-term equity investments 631,018,808.70 484,674,282.77
Other non-current financial assets 763,160,000.00 103,000,000.00
Investment properties 4,693,663,472.02 4,844,993,039.62
Fixed assets 29,770,120,566.35 27,913,986,152.68
Construction in progress 9,792,251,992.31 11,871,350,821.55
right-of-use asset
Intangible assets 1,805,080,230.05 1,939,355,274.98
Goodwill 5,969,626.57 5,969,626.57
Long-term prepaid expenses 127,173,284.78 134,916,241.81
Deferred income tax assets 811,119,510.65 603,873,698.62
Other non-current assets 2,487,151,891.77 1,522,493,129.66
Total non-current assets 54,764,450,501.14 57,351,223,039.12
Total assets 104,117,892,347.23 105,318,734,827.82
CURRENT LIABILITIES：
Short-term borrowings 44,411,584,724.66 40,227,945,361.89
Bills payable 2,271,206,630.23 4,218,969,554.93
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
Accounts payable 3,504,666,567.82 4,150,228,644.66
Staff remuneration payables 167,458,919.28 135,373,407.70
Taxes payable 414,935,438.62 451,651,198.64
Other payables 2,627,180,153.42 1,777,718,017.48
Including: Interest payable 152,427,875.76 226,788,777.59
Contract liabilities 1,078,697,907.67 419,540,133.74
Non-current liabilities due within one year 5,295,745,735.86 7,216,305,771.01
Other current liabilities 930,173,869.45 2,816,956,481.68
Total current liabilities 60,701,649,947.01 61,414,688,571.73
NON-CURRENT LIABILITIES：
Long-term borrowings 7,710,298,646.89 7,798,934,484.94
Bonds payable 2,143,362,700.00 2,097,562,500.00
Lease liability
Long-term payables 3,223,265,717.82 3,900,255,693.44
Provisions 325,259,082.28 325,259,082.28
Deferred income 1,788,699,616.43 1,862,395,197.61
Other non-current liabilities 3,043,787,568.44 2,047,948,069.73
Total non-current liabilities 18,234,673,331.86 18,032,355,028.00
TOTAL LIABILITIES 78,936,323,278.87 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 -983,549,285.23 -736,520,181.01
Special reserves 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 8,793,835,779.52 9,107,422,690.85
Total equity attributable to equity holders of the
24,484,857,440.77 25,048,731,454.79
company
Minority interest 696,711,627.59 822,959,773.30
Total owners’ equity 25,181,569,068.36 25,871,691,228.09
TOTAL LIABILITIES AND OWNERS’ EQUITY 104,117,892,347.23 105,318,734,827.82
Legal Representative: Head in charge of accounting: Head of the accounting department:
Chen Hongguo Dong Lianming Zhang Bo
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
2、Balance sheet of the Company
Unit: RMB
Item 30 September 2019 31 December 2018
CURRENT ASSETS:
Monetary funds 10,059,882,337.31 8,160,234,434.15
Bills receivable 110,992,047.81 436,662,187.80
Accounts receivable 214,885,021.93 1,349,276,965.04
Prepayments 1,229,473,417.10 1,584,388,551.00
Other receivables 12,993,562,279.42 19,405,314,961.24
Including: Interest receivable 77,237,795.30 77,257,506.25
Dividends receivable 23,353,000.00
Inventories 674,822,830.84 1,133,888,230.37
Other current assets 116,840,878.41 140,126,157.18
Total current assets 25,400,458,812.82 32,209,891,486.78
NON-CURRENT ASSETS:
Long-term receivables 499,325,607.06 516,925,607.06
Long-term equity investments 23,474,557,179.93 22,487,417,443.24
Investment in other equity instruments 3,000,000.00
Other non-current financial assets 104,000,000.00 103,000,000.00
Fixed assets 3,745,689,416.60 2,103,164,588.93
Construction in progress 560,423,045.57 2,014,493,138.68
right-of-use asset
Intangible assets 449,414,082.63 458,365,862.52
Deferred income tax assets 417,818,598.32 303,861,021.95
Other non-current assets 49,300,000.00 9,800,000.00
Total non-current assets 29,300,527,930.11 28,000,027,662.38
Total assets 54,700,986,742.93 60,209,919,149.16
CURRENT LIABILITIES:
Short-term borrowings 9,041,667,219.00 7,668,689,104.31
Bills payable 10,806,174,171.79 10,595,836,030.46
Accounts payable 1,071,011,265.11 722,999,244.33
Contract liabilities 3,239,026,611.09 3,299,778,982.47
Staff remuneration payables 66,714,895.93 53,899,651.15
Taxes payable 77,347,779.14 59,595,083.56
Other payables 3,022,054,639.84 5,465,488,890.52
Including: Interest payable 114,939,083.35 139,444,333.34
Non-current liabilities due within one year 2,885,129,810.97 3,256,715,148.39
Other current liabilities 1,860,519,444.45 3,527,956,481.68
Total current liabilities 32,069,645,837.32 34,650,958,616.87
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
NON-CURRENT LIABILITIES:
Long-term borrowings 311,892,587.73 1,335,482,969.43
Bonds payable 988,035,000.00 2,097,562,500.00
Lease liability
Long-term payables 965,186,645.51 2,072,502,840.48
Provisions 325,259,082.28 325,259,082.28
Deferred income 43,156,133.95 46,412,014.99
Other non-current liabilities 2,787,883,339.67 1,592,166,670.00
Total non-current liabilities 5,421,412,789.14 7,469,386,077.18
TOTAL LIABILITIES 37,491,058,626.46 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 749,563,151.08 1,629,209,489.72
Total owners’ equity 17,209,928,116.47 18,089,574,455.11
TOTAL LIABILITIES AND OWNERS’ EQUITY 54,700,986,742.93 60,209,919,149.16
3. Consolidated income statement for the Period
Unit: RMB
Amounts for the Amounts for the
Item
period prior period
I. Total revenue 8,665,530,249.94 7,941,434,778.16
Including: Revenue 8,665,530,249.94 7,941,434,778.16
II. Total operating costs 7,902,495,189.97 7,218,784,688.46
Including: Operating costs 6,283,700,892.83 5,506,076,479.61
Taxes and surcharges 57,547,747.02 68,040,535.03
Sales and distribution expenses 373,167,721.36 324,607,159.50
General and administrative expenses 246,100,352.99 230,957,952.48
Research and development expenses 274,206,599.62 245,095,355.24
Finance expenses 667,771,876.15 844,007,206.60
Including: Interest expenses 777,506,849.57 909,153,291.74
Interest income 90,102,448.79 81,499,764.35
Plus: Other income 20,809,943.31 23,494,829.18
Investment income (“-” denotes loss) 175,779,271.30 127,336,281.28
Including: Investment income from associates and joint
811,698.89 -6,572,934.11
ventures
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
Credit impairment loss (“-” denotes loss) -199,109,603.59 -33,069,486.40
Gain on disposal of assets (“-” denotes loss) -38,828,228.51 2,935,235.19
III. Operating profit (“-” denotes loss) 721,686,442.48 843,346,948.95
Plus: Non-operating income 31,033,192.17 22,243,068.90
Less: Non-operating expenses 11,007,861.52 13,045,182.22
IV. Total profit (“-” denotes total loss) 741,711,773.13 852,544,835.63
Less: Income tax expenses 160,781,655.00 119,353,651.11
V. Net profit (“-” denotes net loss) 580,930,118.13 733,191,184.52
(I) Classification according to the continuity of operation
Net profit from continuing operations (“-” denotes net loss) 580,930,118.13 733,191,184.52
(II) Classification according to ownership
1. Net profit attributable to
557,960,253.43 696,526,748.13
shareholders of the Company
2. Profit or loss of minority
22,969,864.70 36,664,436.39
interest
VI. Net other comprehensive income after tax -231,012,416.02 -300,157,276.21
Net other comprehensive income after tax attributable to
-231,012,416.02 -300,157,276.21
shareholders of the Company
Other comprehensive income that will be reclassified to
-231,012,416.02 -300,157,276.21
profit or loss in subsequent periods
Exchange differences on translation of foreign operations -231,012,416.02 -300,157,276.21
VII. Total comprehensive income 349,917,702.11 433,033,908.31
Total other comprehensive income attributable to
326,947,837.41 396,369,471.92
shareholders of the Company
Total comprehensive income attributable to minority interest 22,969,864.70 36,664,436.39
VIII. Earnings per share:
(I) Basic earnings per share 0.14 0.18
(II) Diluted earnings per share 0.14 0.18
Legal Representative: Head in charge of accounting: Head of the accounting department:
Chen Hongguo Dong Lianming Zhang Bo
4. Income statement of the Company
Unit: RMB
Amounts for the Amounts for the
Item
period prior period
I. Revenue 2,000,086,603.00 1,261,921,341.41
Less: Operating costs 1,509,980,777.19 908,457,085.81
Taxes and surcharges 8,956,107.34 12,885,905.11
Sales and distribution expenses 60,328,897.34 47,689,998.79
General and administrative expenses 97,046,884.52 93,493,353.35
Research and development expenses 82,066,921.93 59,219,583.02
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
Finance expenses 527,818,510.79 453,694,048.02
Including: Interest expenses 680,271,275.54 696,626,615.28
Interest income 160,658,344.73 314,594,724.63
Plus: Other income 1,075,008.68
Investment income (“-” denotes loss) 276,223,938.89 294,222,268.43
Including: Investment income from associates and
-1,560,406.88 -5,777,731.57
joint ventures
Credit impairment loss (“-” denotes loss) -47,516,333.91 -7,239,283.13
Gain on disposal of assets (“-” denotes loss) -5,712,679.60 1,970,855.12
II. Operating Profit (“-“ denotes loss) -62,041,562.05 -24,564,792.27
Plus: Non-operating income 11,070,851.80 268,363.50
Less: Non-operating expenses 6,387,118.13 6,916,026.81
III. Total profit (“-” denotes total loss) -57,357,828.38 -31,212,455.58
Less: Income tax expenses -17,381,871.64 -59,221,592.13
IV. Net profit (“-” denotes net loss) -39,975,956.74 28,009,136.55
Net profit from continuing operations (“-” denotes net loss) -39,975,956.74 28,009,136.55
IV. Total comprehensive income -39,975,956.74 28,009,136.55
5. Consolidated income statement for the period from the beginning of the year to the end of the
reporting period
Unit: RMB
Amounts for the Amounts for the
Item
period prior period
I. Total revenue 22,014,178,363.64 23,492,768,818.05
Including: Revenue 22,014,178,363.64 23,492,768,818.05
II. Total operating costs 20,892,416,331.43 20,685,327,112.35
Including: Operating costs 16,037,798,692.65 15,765,961,398.47
Taxes and surcharges 192,036,292.08 197,549,747.01
Sales and distribution expenses 963,752,678.83 930,070,485.21
General and administrative expenses 808,517,752.24 725,799,621.03
Research and development expenses 705,690,315.68 723,110,209.34
Finance expenses 2,184,620,599.95 2,342,835,651.29
Including: Interest expenses 2,354,263,128.87 2,466,934,321.95
Interest income 304,096,729.01 240,596,355.69
Plus: Other income 59,641,233.95 83,167,106.06
Investment income (“-” denotes loss) 166,312,098.33 185,650,350.16
Including: Investment income from associates and joint
-8,655,474.08 -23,726,437.11
ventures
Gain on change in fair value (“-” denotes loss) -1,883,064.80 -23,973,841.55
Credit impairment loss (“-” denotes loss) -261,549,886.93 -183,525,156.37
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
Asset impairment loss (“-” denotes loss) 82,790,921.68
Gain on disposal of assets (“-” denotes loss) -15,331,491.17 725,186.56
III. Operating profit (“-” denotes loss) 1,151,741,843.27 2,869,485,350.56
Plus: Non-operating income 268,505,785.14 213,875,626.25
Less: Non-operating expenses 16,057,989.71 13,491,403.54
IV. Total profit (“-” denotes total loss) 1,404,189,638.70 3,069,869,573.27
Less: Income tax expenses 286,659,474.62 553,555,763.61
V. Net profit (“-” denotes net loss) 1,117,530,164.08 2,516,313,809.66
(I) Classification according to the continuity of operation
Net profit from continuing operations (“-” denotes net loss) 1,117,530,164.08 2,516,313,809.66
(II) Classification according to ownership
3. Net profit attributable to
1,067,755,825.72 2,481,157,773.44
shareholders of the Company
4. Profit or loss of minority
49,774,338.36 35,156,036.22
interest
VI. Net other comprehensive income after tax -247,029,104.22 -403,391,386.59
Net other comprehensive income after tax attributable to
-247,029,104.22 -403,391,386.59
shareholders of the Company
Other comprehensive income that will be reclassified to
-247,029,104.22 -403,391,386.59
profit or loss in subsequent periods
Exchange differences on translation of foreign operations -247,029,104.22 -403,391,386.59
VII. Total comprehensive income 870,501,059.86 2,112,922,423.07
Total other comprehensive income attributable to
820,726,721.50 2,077,766,386.85
shareholders of the Company
Total comprehensive income attributable to minority interest 49,774,338.36 35,156,036.22
VIII. Earnings per share:
(I) Basic earnings per share 0.15 0.54
(II) Diluted earnings per share 0.15 0.54
Legal Representative: Head in charge of accounting: Head of the accounting department:
Chen Hongguo Dong Lianming Zhang Bo
6. Income statement of the Company for the period from the beginning of the year to the end of the
reporting period
Unit: RMB
Amounts for the Amounts for the
Item
period prior period
I. Revenue 4,696,099,019.10 4,078,215,827.23
Less: Operating costs 3,613,267,928.83 2,882,818,698.89
Taxes and surcharges 31,340,628.12 57,455,929.28
Sales and distribution expenses 156,262,010.50 137,742,324.61
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
General and administrative expenses 257,448,680.43 233,936,154.40
Research and development expenses 204,332,393.43 172,154,901.59
Finance expenses 1,379,257,085.04 903,986,694.58
Including: Interest expenses 1,977,451,686.00 1,910,292,825.08
Interest income 684,663,818.41 1,152,849,226.50
Interest income 3,255,881.04 2,170,587.30
Investment income (“-” denotes loss) 1,286,777,082.46 351,894,141.34
Including: Investment income from associates and joint
-14,360,263.31 -9,855,858.66
ventures
Credit impairment loss (“-” denotes loss) -48,361,072.12 -3,976,204.29
Gain on disposal of assets (“-” denotes loss) 16,703,489.82 566,364.87
II. Operating profit (“-” denotes loss) 312,565,673.95 40,776,013.10
Plus: Non-operating income 89,014,190.80 159,402,602.05
Less: Non-operating expenses 10,583,044.24 6,916,026.81
III. Total profit (“-” denotes total loss) 390,996,820.51 193,262,588.34
Less: Income tax expenses -113,957,576.37 -32,650,646.92
IV. Net profit (“-” denotes net loss) 504,954,396.88 225,913,235.26
Net profit from continuing operations (“-” denotes net loss) 504,954,396.88 225,913,235.26
VI. Total comprehensive income 504,954,396.88 225,913,235.26
7. Consolidated cash flow statement for the period from the beginning of the year to the end of the
reporting period
Unit: RMB
Amounts for the Amounts for the
Item
period prior period
I. Cash flows from operating activities:
Cash received from sales of goods and rendering of
24,694,452,196.67 22,826,321,614.77
services
Tax refund received 3,235,185.49 9,286,422.78
Cash received relating to other operating activities 4,789,319,464.29 6,112,249,944.86
Subtotal of cash inflows from operating activities 29,487,006,846.45 28,947,857,982.41
Cash paid for goods and services 18,654,617,667.62 15,406,856,581.77
Cash paid to and for employees 957,941,627.76 931,350,643.01
Payments of taxes and surcharges 1,440,370,577.89 1,712,799,956.34
Cash paid relating to other operating activities 1,934,852,831.68 1,823,488,953.71
Subtotal of cash outflows from operating activities 22,987,782,704.95 19,874,496,134.83
Net cash flows from operating activities 6,499,224,141.50 9,073,361,847.59
II. Cash flows from investment activities:
Cash received from investments 2,784,345.77 2,390,000,000.00
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
Cash received from investment income 12,000,000.00 375,641,400.00
Net cash received from disposal of fixed assets,
131,375,805.90 393,600.22
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries and
221,000,000.00 19,610,260.70
other business units
Cash received relating to other investment activities 767,670,000.00 69,843,200.00
Subtotal of cash inflows from investment activities 1,134,830,151.67 2,855,488,460.92
Cash paid for purchase of fixed assets, intangible assets
926,528,167.05 3,142,851,174.29
and other long-term assets
Cash paid on investments 1,639,194,479.24 2,085,954,389.46
Cash paid relating to other investment activities 189,628,400.00 103,042,210.54
Subtotal of cash outflows from investment activities 2,755,351,046.29 5,331,847,774.29
Net cash flows from investment activities -1,620,520,894.62 -2,476,359,313.37
III. Cash flows from financing activities:
Cash received from borrowings 28,024,258,208.07 36,121,975,695.37
Cash received relating to other financing activities 4,096,789,134.60 14,012,509,155.81
Subtotal of cash inflows from financing activities 32,121,047,342.67 50,134,484,851.18
Cash repayments on borrowing 23,844,425,199.09 27,467,045,407.89
Cash paid for dividend and profit distribution or interest
3,051,263,128.87 4,438,836,047.90
payment
Cash paid relating to other financing activities 9,712,203,599.23 23,217,117,156.71
Subtotal of cash outflows from financing activities 36,607,891,927.19 55,122,998,612.50
Net cash flows from financing activities -4,486,844,584.52 -4,988,513,761.32
IV. Effect of foreign exchange rate changes on cash and cash
-377,093,948.33 120,553,325.21
equivalents
V. Net increase in cash and cash equivalents 14,764,714.03 1,729,042,098.10
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
2,396,322,956.55 4,533,450,472.56
period
8. Cash flow statement of the Company for the period from the beginning of the year to the end of the
reporting period
Unit: RMB
Amounts for the Amounts for the
Item
period prior period
I. Cash flows from operating activities:
Cash received from sales of goods and rendering of
6,426,249,401.49 5,529,614,111.40
services
Cash received relating to other operating activities 1,296,334,093.23 2,427,573,406.75
Subtotal of cash inflows from operating activities 7,722,583,494.72 7,957,187,518.15
Cash paid for goods and services 1,643,706,437.55 1,963,218,833.84
Cash paid to and for employees 324,122,682.18 299,290,526.60
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
Payments of taxes and surcharges 145,658,208.00 286,150,551.10
Cash paid relating to other operating activities 815,945,979.17 1,834,166,575.63
Subtotal of cash outflows from operating activities 2,929,433,306.90 4,382,826,487.17
Net cash flows from operating activities 4,793,150,187.82 3,574,361,030.98
II. Cash flows from investment activities:
Cash received from investments 2,784,345.77 2,350,000,000.00
Cash received from investment income 2,000,000.00 284,041,400.00
Net cash received from disposal of fixed assets,
75,806,913.60
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries and
221,000,000.00 19,610,260.70
other business units
Cash received relating to other investment activities 767,670,000.00
Subtotal of cash inflows from investment activities 1,069,261,259.37 2,653,651,660.70
Cash paid for purchase of fixed assets, intangible assets
39,680,681.99 47,475,737.37
and other long-term assets
Cash paid on investments 1,147,500,000.00 2,301,714,807.50
Subtotal of cash outflows from investment activities 1,187,180,681.99 2,349,190,544.87
Net cash flows from investment activities -117,919,422.62 304,461,115.83
III. Cash flows from financing activities:
Cash received from borrowings 8,067,108,555.77 9,487,503,196.92
Cash received relating to other financing activities 5,638,813,889.00 11,525,489,947.95
Subtotal of cash inflows from financing activities 13,705,922,444.77 21,012,993,144.87
Cash repayments on borrowing 8,335,983,231.30 8,707,654,631.90
Cash paid for dividend and profit distribution or interest
1,471,593,054.48 2,426,583,005.38
payment
Cash paid relating to other financing activities 8,479,116,872.45 13,496,703,811.58
Subtotal of cash outflows from financing activities 18,286,693,158.23 24,630,941,448.86
Net cash flows from financing activities -4,580,770,713.46 -3,617,948,303.99
IV. Effect of foreign exchange rate changes on cash and cash
-3,844,637.47 -16,058,996.41
equivalents
V. Net increase in cash and cash equivalents 90,615,414.27 244,814,846.41
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
698,420,477.29 1,265,076,916.26
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
adoption starting from 2019 of the New Standards for Financial Instruments, the New Standards for
Revenue and the New Standards for Lease
□ Applicable √ Not applicable
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
2. Reason for the retrospective adjustment to the comparative data in the prior period due to the
adoption starting from 2019 of the New Standards for Financial Instruments and the New Standards for
Lease
□ Applicable √ Not applicable
III. Auditors’ Report
Has the third quarterly report already been audited yet?
□ Yes √ No
The third quarterly report of the Company is unaudited.
By order of the Board
Shandong Chenming Paper Holdings Limited
25 October 2019
