2020 Interim Report Summary of Shandong Chenming Paper Holdings Limited
Stock code: 000488, 200488 Stock abbreviation: Chenming Paper Chenming B Announcement No.:2020-076
2020 Interim Report Summary of
SHANDONG CHENMING PAPER HOLDINGS LIMITED
1. IMPORTANT NOTICE
This interim report summary is extracted from the text of the interim report. For the full understanding of the
operating results, financial situation and plan for future development of the Company, investors should read the
full version of the interim report carefully published on the media designated by the CSRC and the website of The
Stock Exchange of Hong Kong Limited.
Notice of non-standard auditor’s opinion
□ Applicable √ Not applicable
A proposed profit distribution plan on ordinary shares or a proposed plan on conversion of capital reserves into
share capital for the reporting period was considered and passed by the Board
□ Applicable √ Not applicable
The Company plans not to distribute cash dividends or bonus shares or convert capital reserve into share capital.
A proposed profit distribution plan on preference shares for the reporting period was considered and approved by
the Board
□ Applicable √ Not applicable
II. BASIC IMFORMATION ON THE COMPANY
1. Company profile
晨鳴紙業 000488
晨鳴B 200488
Stock abbreviation 晨鳴優01 Stock code 140003
晨鳴優02 140004
晨鳴優03 140005
Stock exchanges on which the shares are listed Shenzhen Stock Exchange
Stock abbreviation Chenming Paper Stock code 01812
Stock exchanges on which the shares are listed The Stock Exchange of Hong Kong Limited
Legal name in Chinese of the Company 山東晨鳴紙業集團股份有限公司
Legal short name in Chinese of the Company 晨鳴紙業
Legal name in English of the Company (if any) SHANDONG CHENMING PAPER HOLDINGS LIMITED
Legal short name in English of the Company (if SCPH
any)
Legal representative of the Company Chen Hongguo
1
2020 Interim Report Summary of Shandong Chenming Paper Holdings Limited
2. 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 for
The
the reporting period as
The reporting corresponding
compared to the
period period of the prior
corresponding period
year
of the prior year
Revenue (RMB) 13,599,805,765.86 13,348,648,113.70 1.88%
Net profit attributable to shareholders of the
516,326,703.48 509,795,572.29 1.28%
Company (RMB)
Net profit after extraordinary gains or losses
attributable to shareholders of the Company 67,882,116.23 303,144,996.21 -77.61%
(RMB)
Net cash flows from operating activities (RMB) 2,327,033,784.68 2,699,770,891.69 -13.81%
Basic earnings per share (RMB per share) 0.051 0.013 292.31%
Diluted earnings per share (RMB per share) 0.051 0.013 292.31%
Increase by 0.63
Rate of return on weighted average net assets 0.84% 0.21%
percentage point
Increase/decrease as at
As at the end of the end of the reporting
As at the end of
the reporting period as compared to
the prior year
period the end of the prior
year
Total assets (RMB) 99,034,079,672.06 97,958,909,935.15 1.10%
Net assets attributable to shareholders of the
24,907,632,671.76 25,169,743,863.75 -1.04%
Company (RMB)
Data description of basic earnings per share, diluted earnings per share, and rate of return on weighted average net
assets:
Net profit attributable to shareholders of the Company does not exclude the effect of interest on perpetual
bonds and the dividends on preference shares paid and declared to be paid. When calculating financial indicators
such as earnings per share and the rate of return on weighted average net assets, the interest on perpetual bonds
from 1 January 2020 to 30 June 2020 of RMB96,734,246.58 and the dividend on preference shares paid and
declared to be paid in 2020 of RMB270,776,073.42 are deducted.
3. Total number of shareholders and shareholdings
Unit: share
109,060, of which 88,863 were Total number of holders of
Total number of ordinary
holders of A shares, 19,834 were preference shares with restored
shareholders as at the end 0
holders of B shares and 363 were voting right as at the end of the
of the reporting period
holders of H shares reporting period (if any)
Shareholdings of ordinary shareholders interested in more than 5% of the shares of the Company or Top 10
ordinary shareholders
Name of shareholder Nature of Percentage Number of Changes Number Number Share pledged or
2
2020 Interim Report Summary of Shandong Chenming Paper Holdings Limited
shareholder of shares held (increase of of locked-up
shareholdi at the end of or restricted non-restr
Statu
ng the reporting decrease) shares ict shares
s of
period during the held held Number
share
reporting
s
period
CHENMING State-owne
Pledg 322,700,00
HOLDINGS COMPANY d legal 14.93% 445,396,128
e 0
LIMITED person
Overseas
HKSCC NOMINEES
legal 12.51% 373,325,625 161,750
LIMITED
person
CHENMING Overseas
HOLDINGS (HONG legal 12.20% 364,131,563
KONG) LIMITED person
CENTRAL HUIJIN State-owne
ASSET d legal 2.02% 60,206,850
MANAGEMENT LTD. person
Domestic
20,000,00 28,310,0 2,770,01
Chen Hongguo natural 1.04% 31,080,044
0 33 1
person
HONG KONG
Overseas
SECURITIES 10,195,64
legal 0.79% 23,434,111
CLEARING COMPANY 8
person
LIMITED
VANGUARD TOTAL Overseas
INTERNATIONAL legal 0.49% 14,603,170 1,988,000
STOCK INDEX FUND person
VANGUARD Overseas
EMERGING MARKETS legal 0.44% 13,121,946 209,589
STOCK INDEX FUND person
Domestic
Chen Suiqiang natural 0.43% 12,800,000 1,789,800
person
NATIONAL SOCIAL
Others 0.42% 12,633,902 9,427,651
SECURITY FUND 418
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 Limited, which is a state-owned
Related party relationship or acting in legal person. A shareholder, Chen Hongguo, is the legal representative,
concert among the above shareholders 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. It is also not aware that any other
shareholders of tradable shares are related to each other.
Zhitong Certified Public Accountants issued the capital verification report
on June 28, 2020, examined the subscription and contribution of A-share
Other explanation: restricted stock equity incentive plan of the company up to June 23, 2020,
and determined that the total share capital of the company has changed to
2984208200 shares.
3
2020 Interim Report Summary of Shandong Chenming Paper Holdings Limited
On July 15, 2020, 79600000 restricted shares granted to the incentive
personnel were issued and listed, and the number of shares held by Mr.
Chen Hongguo became 31080044.
Shareholdings of the top ten ordinary shareholders of non-restricted shares
Number of Class of shares
non-restricted
Name of shareholder ordinary shares held
Class of shares Number
as at the end of the
reporting period
RMB ordinary
CHENMING HOLDINGS COMPANY LIMITED 445,396,128 445,396,128
shares
Domestic listed
HKSCC NOMINEES LIMITED 373,325,625 373,325,625
foreign shares
Domestic listed
210,717,563
foreign shares
CHENMING HOLDINGS (HONG KONG) LIMITED 364,131,563
Overseas listed
153,414,000
foreign shares
RMB ordinary
CENTRAL HUIJIN ASSET MANAGEMENT LTD. 60,206,850 60,206,850
shares
HONG KONG SECURITIES CLEARING COMPANY RMB ordinary
23,434,111 23,434,111
LIMITED shares
VANGUARD TOTAL INTERNATIONAL STOCK Domestic listed
14,603,170 14,603,170
INDEX FUND foreign shares
VANGUARD EMERGING MARKETS STOCK INDEX Domestic listed
13,121,946 13,121,946
FUND foreign shares
RMB ordinary
Chen Suiqiang 12,800,000 12,800,000
shares
RMB ordinary
NATIONAL SOCIAL SECURITY FUND 418 12,633,902 12,633,902
shares
CITIC Securities Co., Ltd.-Social Security Fund 1106 RMB ordinary
10,679,175 10,679,175
Portfolio shares
Related party relationship or acting
A shareholder, Chenming Holdings (Hong Kong) Limited, which is an
in concert among the top ten
overseas legal person, is a wholly-owned subsidiary of a shareholder,
ordinary shareholders of non-
Shouguang Chenming Holdings Company Limited, which is a state-owned
restricted shares, and between the
legal person. Save for the above, it is not aware that any other shareholders
top ten ordinary shareholders of
of tradable shares are persons acting in concert. It is also not aware that any
non-restricted shares and the top ten
other shareholders of tradable shares are related to each other.
ordinary shareholders
Chenming Holdings Company Limited held 445,396,128 RMB ordinary
shares, of which 402,196,128 shares were held through ordinary account and
Securities margin trading of top 10 43,200,000 shares were held through credit guarantee security account.
ordinary shareholders, if any Chen Suiqiang held 12,800,000 RMB ordinary shares, of which 0 share was
held through ordinary account and 12,800,000 shares were held through
credit guarantee security account.
4. Change of controlling shareholders or beneficial controllers
The change of controlling shareholders during the reporting period
4
2020 Interim Report Summary of Shandong Chenming Paper Holdings Limited
□ Applicable √ Not applicable
There was no change of controlling shareholders of the Company during the reporting period.
Change of beneficial controllers during the reporting period
□ Applicable √ Not applicable
There was no change of beneficial controllers of the Company during the reporting period.
5. Total number of holders of preference shares and the shareholdings of top ten holders of preference
shares
√ Applicable □ Not applicable
Unit: share
Total number of shareholders of preference
8
shares as at the end of the reporting period
Holders holdings more than 5% of the preference shares or top ten holders of preference shares
Number of Changes Share pledged or
preference (increase locked-up
Preference shares held or
Nature of
Name of shareholder shareholdi at the end decrease)
shareholder Status of
ng of the during the Number
shares
reporting reporting
period period
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.,
Others 22.44% 10,100,000 0
LTD. – HUILI NO.167 SINGLE
CAPITAL TRUST
BANK OF COMMUNICATIONS
MINTERNATIONAL TRUST CO.,
Others 14.22% 6,400,000 0
LTD. – HUILI NO.136 SINGLE
CAPITAL TRUST
QILU BANK CO., LTD. – QILU
BANK QUANXIN WEALTH
Others 13.33% 6,000,000 0
MANAGEMENT PRODUCT
SERIES
Domestic
HENGFENG BANK CO., LTD. non-state-owned 11.11% 5,000,000 0
legal person
Domestic
SHANGHAI STATE-OWNED
non-state-owned 8.59% 3,867,000 2,867,000
ASSETS OPERATION CO., LTD.
legal person
LEAD CAPITAL MANAGEMENT
CO., LTD.- LEAD CAPITAL - LI
Others 1.51% 680,000 680,000
DE YING NO. 1 ASSET
MANAGEMENT PLAN
LEAD CAPITAL MANAGEMENT
Others 1.01% 453,000 453,000
CO., LTD. - LEAD CAPITAL- LI
5
2020 Interim Report Summary of Shandong Chenming Paper Holdings Limited
DE YING NO. 2 ASSET
MANAGEMENT PLAN
Description of different requirements on other terms of
preference shares held other than dividend distribution Nil
and residual property distribution (Note 4)
The aforesaid holders of preference shares, “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
TRUST” are persons acting in concert, and “LEAD
Related party relationship or acting in concert among CAPITAL MANAGEMENT CO., LTD.- LEAD
the top ten holders of preference shares, and between CAPITAL - LI DE YING NO. 1 ASSET
the top ten holders of preference shares and the top ten MANAGEMENT PLAN” and “LEAD CAPITAL
ordinary shareholders MANAGEMENT CO., LTD. - LEAD CAPITAL- LI DE
YING NO. 2 ASSET MANAGEMENT PLAN” are
persons acting in concert. Save for the above, it is not
aware that whether the remaining holders of preference
shares are persons acting in concert. It is also not aware
that the top ten holders of preference shares and the top
ten ordinary shareholders are related to each other.
6. Information on corporate bonds
Are there any corporate bonds offered to the public by the Company and listed on stock exchanges which do not
become due as at the date of approval of the interim report or overdue but not fully settled?
Yes
(1) Basic information on corporate bonds
Outstanding
Bond
amount of Interest
Name of bond abbreviatio Bond code Issue date Maturity date Payment method
the bonds rate
n
(RMB’0,000)
The public
issuance of the
Interest is paid
corporate bonds
annually. The
of Shandong
17 principal amount
Chenming Paper 17 August 21 August
Chenming 112570 9,000 7.28% and the last
Holdings 2017 2022
Bond 01 interest payment
Limited to
will be paid on the
qualified
maturity date.
investors in 2017
(tranche I)
The public Interest is paid
issuance of the 18 annually. The
29 March
corporate bonds Chenming 112641 2 April 2023 35,000 7.60% principal amount
2018
of Shandong Bond 01 and the last
Chenming Paper interest payment
6
2020 Interim Report Summary of Shandong Chenming Paper Holdings Limited
Holdings will be paid on the
Limited to maturity date.
qualified
investors in 2018
(tranche I)
Stock exchange on which
corporate bonds are listed or Shenzhen Stock Exchange
transferred
Online subscription: Public investors with A share security account opened under
Investor eligibility China Securities Depository and Clearing Co., Ltd. Offline subscription:
arrangement Institutional investors with A share security account opened under China Securities
Depository and Clearing Co., Ltd.
The payment of principal and interest for the bond repurchase portion of 18
Chenming Bond 01 and the resale of the bonds was completed during the reporting
Interest payment of corporate
period. The number of the resale was 3,500,000, and the average resale price was
bonds during the reporting
RMB100 each. For details, please refer to the relevant announcements as disclosed
period
on 19 February, 11 February, 25 February, 28 February, 31 March, 30 April and 1
June 2020.
Both 17 Chenming Bond 01 and 18 Chenming Bond 01 attach with options for the
Performance of relevant issuer to adjust the coupon rate and for investors to resell. The issuer has the right to
terms during the reporting determine the adjustment to the coupon rate for the following 3 years at the end of
period, for special terms such the second year and the adjustment to the coupon rate for the following year as the
as issuer or investor option end of the fourth year. After issuing the announcement on whether the coupon rate
and interchangeable for of the relevant tranche of bonds will be adjusted and the range of adjustment, the
corporate bonds (if any) investors have the right to register for reselling during the period as announced to
resell all or part of the relevant tranche of bonds held to the issuer at par value.
(2) Financial indicators as at the end of the reporting period
Unit: RMB’0,000
Increase/decrease as at the end of the
As at the end of the As at the end of the
Item reporting period as compared to the end
reporting period prior year
of the prior year
Gearing ratio 82.81% 85.30% -2.49%
Current ratio 73.49% 73.11% 0.38%
Quick ratio 72.80% 76.24% -3.44%
The corresponding Increase/decrease of the reporting
The reporting period period of the prior period as compared to corresponding
year period of the prior year
EBITDA interest coverage
2.75 2.20 25%
ratio
Loans payment ratio 100.00% 100.00% 0.00%
Interest payment ratio 100.00% 100.00% 0.00%
Major reason for more than 30% in year-on-year change for the above accounting data and financial indicators:
√ Applicable □ Not applicable
EBITDA interest coverage ratio recorded an increase of 25% mainly due to the year-on-year decrease of interest
7
2020 Interim Report Summary of Shandong Chenming Paper Holdings Limited
expenses during the reporting period.
III. Discussion and Analysis of Operations
1. Overview of operations during the reporting period
Whether the Company needs to comply with the disclosure requirements of specific industries
No
During the reporting period, the paper making industry was greatly affected by the epidemic, the paper
industry was in short supply of raw materials, logistics was blocked, and the operation and production resumption
rate was low within the industry. The overseas epidemic outbreak suppressed the overseas demand for paper
products in the paper industry. In addition, the domestic demand for paper had been sluggish since the epidemic.
The downward pressure on the prices of major paper types had increased. There was a significant decline in the
economic benefit of the paper making industry as a whole.
Wuhan Chenming and Huanggang Chenming, subsidiaries of the Company, were at the centre of the epidemic.
Their suspension of production to fight against the epidemic affected the overall performance of the Company to a
certain extent. However, other major production bases of the Company not only did their best to prevent and control
the epidemic, but also achieved production at close to full capacity, gradually demonstrating the benefits of pulp
and paper integration. Various operating indicators improved during the first half of the year as compared to the
corresponding period of last year, including completing pulp production of 1.66 million tonnes and machine-made
paper production of 2.75 million tonnes, representing a year-on-year increase of 59.70% and 27.90% respectively;
achieving revenue of RMB13.6 billion, representing a year-on-year increase of 1.88%; and achieving net profit of
RMB516 million, steadily increasing from the corresponding period of last year.
In the second half of the year, with the epidemic further under control, the economy is expected to gradually
regain its vitality, market demand will gradually rebound, and the prices of the Company’s major paper types will
steadily rise. Coupled with the gradual recovery of wood pulp market prices, the core advantage of pulp and paper
balance of the Company will be further brought into play. The performance of the Company will significantly
improve with the recovery of the national economy and market conditions.
The major financial data of the Company during the reporting period are as follows:
During the Increase/
During the corresponding decrease
Item Reason for the change
reporting period period of the prior year on
year year
Revenue 13,599,805,765.86 13,348,648,113.70 1.88%
Operating costs 10,185,300,033.31 9,754,097,799.82 4.42%
Selling and
Transportation expenses increased year
distribution 652,742,420.35 590,584,957.47 10.52%
on year during the reporting period.
expenses
Administrative Depreciation expenses decreased year
491,987,245.33 562,417,399.25 -12.52%
expenses on year during the reporting period.
Research and The Company increased efforts in
development 548,557,146.89 431,483,716.06 27.13% research and development during the
expense reporting period.
Income expenses decreased year on
Finance expenses 1,346,217,562.46 1,516,848,723.80 -11.25%
year during the reporting period.
Net cash flows Net recovery of the leasing company
from operating 2,327,033,784.68 2,699,770,891.69 -13.81% decreased year on year during the
activities reporting period.
Net cash flows 94,823,534.32 -2,094,526,965.30 104.53% The payment for the equity interest in
8
2020 Interim Report Summary of Shandong Chenming Paper Holdings Limited
from investing Nanyue Bank was made during the
activities corresponding period of last year.
Net cash flows The Company reduced its debts during
from financing -3,094,384,197.10 -780,976,710.04 -296.22% the reporting period.
activities
2. Events relating to financial reporting
(1) Reason for changes in accounting policies, accounting estimates and accounting methods as compared to
the financial report for the prior year
□ Applicable √ Not applicable
There was no change in accounting policies, accounting estimates and accounting methods of the Company during
the reporting period.
(2) Reason for retrospective restatement to correct major accounting errors during the reporting period
□ Applicable √ Not applicable
No retrospective restatement was made to correct major accounting errors during the reporting period.
(3) Reason for changes in scope of the consolidated financial statements as compared to the financial report
for the prior accounting period
√ Applicable □ Not applicable
During the reporting period, two companies were removed from the scope of consolidation, namely Qingdao
Chenming International Logistics Co., Ltd. and Shouguang Chenming Art Paper Co., Ltd; and two companies
were added into the scope of consolidation, namely Chenming (Overseas) Co., Ltd. and Chenming (Singapore)
Co., Ltd.
9
