Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
SHANDONG CHENMING PAPER HOLDINGS LIMITED*
2020 Third Quarterly Report
October 2020
1
Shangdong Chenming Paper Holdings Limited 2020 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.
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Shangdong Chenming Paper Holdings Limited 2020 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
As at the end of the As at the end of the the end of the reporting
reporting period prior year period as compared to
the end of the prior year
Total assets (RMB) 94,595,089,642.04 97,958,909,935.15 -3.43%
Net assets attributable to
shareholders of the Company 23,352,056,656.52 25,169,743,863.75 -7.22%
(RMB)
Increase/decrease
for the period
from the
Increase/decrease The period from beginning of the
compared to the the beginning of year to the end of
The reporting
corresponding the year to the end the reporting
period
period of the of the reporting period as
prior year period compared to the
corresponding
period of the prior
year
Revenue (RMB) 8,473,304,915.35 -2.22% 22,073,110,681.21 0.27%
Net profit attributable to
shareholders of the Company 560,227,575.14 0.41% 1,076,554,278.62 0.82%
(RMB)
Net profit after extraordinary gains
or losses attributable to
463,336,879.91 3.54% 531,218,996.14 -29.23%
shareholders of the Company
(RMB)
Net cash flows from operating
-- -- 7,268,850,121.56 11.84%
activities (RMB)
Basic earnings per share (RMB per
0.136 0.74% 0.187 26.35%
share)
Diluted earnings per share (RMB
0.136 0.74% 0.187 26.35%
per share)
Rate of return on net assets on
2.23% -0.03% 3.07% 0.60%
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 2020 to 30 September 2020 of RMB145,632,876.71 and the dividend on preference shares
paid in 2020 of RMB387,101,073.42 are deducted.
Items and amounts of extraordinary gains or losses
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
Applicable □ Not applicable
Unit: RMB
Amount for the period from
Item the beginning of the year to the Explanation
end of the reporting period
Profit or loss from disposal of non-current assets (including
39,182,017.64
write-off of asset impairment provision)
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 standard based on state policies) accounted for in profit
or loss for the current period 872,260,380.05
Gain or loss arising from change in fair value of financial assets
held for trading and financial liabilities held for trading, as well
as investment gain on disposal of financial assets held for
trading, financial liabilities held for trading and
available-for-sale financial assets, excluding the effective
hedging business related to the normal operations of the
Company -6,592,990.05
Change in fair value of consumable biological assets/change in
fair value of other non-current financial assets -9,246,743.86
Non-operating income and expense other than the above items -1,565,525.92
Subtotal 894,037,137.86
Less: Effects of income tax 206,911,149.92
Effects of non-controlling interests (after tax) 141,790,705.46
Total 545,335,282.48 --
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.
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
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
118,875, of which 97,991
Total number of shareholders of
Total number of shareholders were holders of A shares,
preference shares with restored
of ordinary shares as at the end 20,521 were holders of B 0
voting right as at the end of the
of the reporting period shares and 363 were holders
reporting period (if any)
of H shares
Shareholding of the top ten shareholders
Share pledged or
Percentage Number of
locked-up
Nature of of Number of restricted
Name of shareholders
shareholders shareholdin shares held shares Status
g held of Number
shares
CHENMING HOLDINGS State-owned Pledge 349,370,00
15.32% 457,322,919 0
COMPANY LIMITED legal person d 0
Overseas legal
HKSCC NOMINEES LIMITED 12.51% 373,331,125 0
person
CHENMING HOLDINGS Overseas legal
12.20% 364,131,563 0
(HONG KONG) LIMITED person
CENTRAL HUIJIN ASSET State-owned
2.02% 60,206,850 0
MANAGEMENT LTD. legal person
Domestic natural 28,310,03
CHEN Hongguo 1.04% 31,080,044
person 3
NATIONAL SOCIAL
Others 0.63% 18,734,946 0
SECURITY FUND 418
VANGUARD TOTAL
Overseas legal
INTERNATIONAL STOCK 0.59% 17,655,985 0
person
INDEX FUND
BASIC PENSION
Others 0.46% 13,684,084 0
INSURANCE FUND 1208
VANGUARD EMERGING
Overseas legal
MARKETS STOCK INDEX 0.44% 13,121,946 0
person
FUND
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
Domestic natural
CHEN Suiqiang 0.42% 12,600,000 0
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
RMB ordinary
CHENMING HOLDINGS COMPANY LIMITED 457,322,919 457,322,919
shares
Overseas listed
HKSCC NOMINEES LIMITED 373,331,125 373,331,125
foreign shares
Domestic listed
210,717,563
foreign shares
CHENMING HOLDINGS (HONG KONG) LIMITED 364,131,563
Overseas listed
153,414,000
foreign shares
RMB ordinary
CENTRAL HUIJIN ASSET MANAGEMENT LTD. 60,206,850 60,206,850
shares
RMB ordinary
NATIONAL SOCIAL SECURITY FUND 418 18,734,946 18,734,946
shares
VANGUARD TOTAL INTERNATIONAL STOCK Domestic listed
17,655,985 17,655,985
INDEX FUND foreign shares
RMB ordinary
BASIC PENSION INSURANCE FUND 1208 13,684,084 13,684,084
shares
VANGUARD EMERGING MARKETS STOCK INDEX Domestic listed
13,121,946 13,121,946
FUND foreign shares
RMB ordinary
CHEN Suiqiang 12,600,000 12,600,000
shares
CITIC SECURITIES CO., LTD. - SOCIAL SECURITY RMB ordinary
10,679,175 10,679,175
FUND 1106 shares
A shareholder, Chenming Holdings (Hong Kong) Limited, which is an
overseas legal person, is a wholly-owned subsidiary of a shareholder,
Chenming Holdings Company Limited, which is a state-owned legal person.
Hence, they are persons acting in concert under the Measures for the
Related party relationship or
Administration of Disclosure of Shareholder Equity Changes of Listed
acting in concert among the above
Companies. A shareholder, Chen Hongguo, is the legal representative,
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.
Securities margin trading of top Chenming Holdings Company Limited held 457,322,919 RMB ordinary
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
10 ordinary shareholders, if any shares, of which 414,122,919 shares were held through ordinary account and
43,200,000 shares were held through credit guarantee security account.
Chen Suiqiang held 12,600,000 RMB ordinary shares, of which 0 share was
held through ordinary account and 12,600,000 shares were held through
credit guarantee security account.
Whether an agreed repurchase transaction was entered into during the reporting period by the top 10 ordinary
shareholders and top 10 non-restricted ordinary shareholders 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
8
period
Shareholding of the top ten shareholders of preference shares
Share pledged or
Number of Number of locked-up
Nature of Percentage of
Name of shareholders shares restricted Status
shareholders shareholding
held shares held of Number
shares
BEIJING YIBEN ZHONGXING Domestic
12,500,00 Pledge 12,500,00
INVESTMENT MANAGEMENT non-state-owne 27.78% 0
0 d 0
CO., LTD. d legal person
BANK OF COMMUNICATIONS
INTERNATIONAL TRUST CO., 10,100,00
Others 22.44% 0
LTD. - HUILI NO.167 SINGLE 0
CAPITAL TRUST
BANK OF COMMUNICATIONS
INTERNATIONAL 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
SHANGHAI SHIJIE BUSINESS
non-state-owne 9.20% 4,140,100 0
CONSULTING CO., LTD.
d legal person
Domestic
HENGFENG BANK CO., LTD. non-state-owne 8.89% 4,000,000 0
d legal person
LEAD CAPITAL MANAGEMENT
CO., LTD. – LEAD CAPITAL - LI
Others 2.62% 1,179,900 0
DE YING NO. 2 ASSET
MANAGEMENT PLAN
LEAD CAPITAL MANAGEMENT Others 1.51% 680,000 0
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
CO., LTD.- LEAD CAPITAL – LI
DE YING NO. 1 ASSET
MANAGEMENT PLAN
Among the above 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”, and “LEAD CAPITAL
Related party relationship or acting MANAGEMENT CO., LTD. – LEAD CAPITAL – LI DE YING NO.1
in concert among the above ASSET MANAGEMENT PLAN” and “LEAD CAPITAL
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 aforesaid ordinary shareholders are
related to each other.
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Shangdong Chenming Paper Holdings Limited 2020 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
Item 30 September 2020 31 December 2019 Change Reason for change
Accounts receivable financing 646,109,530.46 442,915,861.70 45.88% (1)
Financial assets held for trading 189,091,827.10 - 100% (2)
Other current assets 4,876,429,272.68 8,108,707,394.70 -39.86% (3)
Construction in progress 455,329,505.32 5,476,122,928.95 -91.69% (4)
Bills payable 4,165,556,883.13 1,515,048,206.00 174.95% (5)
Taxes payable 473,218,536.70 311,554,116.73 51.89% (6)
Other non-current liabilities 1,387,172,269.72 3,042,841,328.86 -54.41% (7)
Other equity instruments 5,473,500,000.00 7,465,500,000.00 -26.68% (8)
Minority interest 1,647,087,783.82 1,170,029,016.80 40.77% (9)
Explanation of the reasons leading to the major changes:
(1) Accounts receivable financing increased by 45.88% as compared to the beginning of the year, mainly due to the
increase in bills held at the end of the reporting period from the beginning of the year.
(2) Financial assets held for trading increased by 100%, mainly due to the increase in the securities investment
during the reporting period.
(3) Other current assets decreased by 39.86% as compared to the beginning of the year, mainly due to the decrease
in the size of the short-term financial lease business as at the end of the reporting period from the beginning of the
year.
(4) Construction in progress decreased by 91.69% as compared to the beginning of the year, mainly due to the
reclassification of the Huanggang Chenming pulp production project during the reporting period.
(5) Bills payable increased by 174.95% as compared to the beginning of the year, mainly due to the increase in
payment for goods with bills during the reporting period.
(6) Taxes payable increased by 51.89% as compared to the beginning of the year, mainly due to the increase in
income tax payable at the end of the reporting period from the beginning of the year.
(7) Other non-current liabilities decreased by 54.41% as compared to the beginning of the year, mainly due to the
reclassification of the Company’s RMB2 billion medium-term notes to liabilities due within one year during the
reporting period.
(8) Other equity instruments decreased by 26.68% as compared to the beginning of the year, mainly due to the
payment of RMB2 billion perpetual bonds by the Company during the reporting period.
(9) Minority interest increased by 40.77% as compared to the beginning of the year, mainly due to the capital
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
injection into Shouguang Meilun by Dongxing Securities during the reporting period.
(II) Reasons for significant year-on-year changes of income statement items
Unit: RMB
January – September January – September
Item Change Reason for change
2020 2019
Sales and distribution expenses 1,011,570,307.54 963,752,678.83 4.96% (1)
Research and development expenses 865,743,883.85 705,690,315.68 22.68% (2)
Other income 226,087,658.21 59,641,233.95 279.08% (3)
Loss on impairment of assets -13,570,727.71 82,790,921.68 -116.39% (4)
Non-operating income 666,294,459.14 268,505,785.14 148.15% (5)
Explanation of the reasons leading to the major changes:
(1) Selling and distribution expenses increased by 4.96% as compared to the corresponding period of last year,
mainly due to the increase in sales and the year-on-year increase in transportation expenses during the reporting
period.
(2) Research and development expense increased by 22.68% as compared to the corresponding period of last year,
mainly due to the increase in research and development investment during the reporting period.
(3) Other income increased by 279.08% as compared to the corresponding period of last year, mainly due to the
year-on-year increase in government grants received by the Company during the reporting period.
(4) Impairment loss of assets increased by 116.39% as compared to the corresponding period of last year, mainly
due to the changes in the conditions of inventory impairment and the reversal of impairment provision for
inventories in the last year.
(5) Non-operating income increased by 148.15% as compared to the corresponding period of last year, mainly due
to the receipt of final payment of relocation compensation of Wuhan Chenming during the reporting period.
(III) Analysis of cash flows during the reporting period
Unit: RMB
January – September January – September Reason for
Item Change
2020 2019 change
Net cash flows from operating activities 7,268,850,121.56 6,499,224,141.50 11.84% (1)
Net cash flows from investment activities 431,479,896.26 -1,620,520,894.62 126.63% (2)
Net cash flows from financing activities -8,245,064,466.81 -4,486,844,584.52 -83.76% (3)
Explanation of the reasons leading to the major changes:
(1) Net cash flows from operating activities increased by 11.84% as compared to the corresponding period of last
year, mainly due to the increase in payment with bills by the Company and the decrease in purchase of raw materials
with spot exchange during the reporting period.
(2) Net cash flows from investing activities increased by 126.63% as compared to the corresponding period of last
year, mainly due to the year-on-year decrease in project investment during the reporting period.
(3) Net cash flows from financing activities decreased by 83.76% as compared to the corresponding period of last
year, mainly due to the reduction in the borrowings size of the Company during the reporting period.
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
II. Analysis of and description on the progress of material matters, their impacts and solutions
Applicable □ Not applicable
1. Completion of registration of shares granted under the 2020 Restricted A Share Incentive Scheme.
On 15 May 2020, the Company convened the 2020 second extraordinary general meeting, the 2020 first class
meeting for holders of domestic-listed shares and the 2020 first class meeting for holders of overseas-listed shares,
during which matters in relation to the implementation of the 2020 Restricted A Share Incentive Scheme by the
Company were considered and approved. On 29 May 2020, the Company convened the tenth extraordinary meeting
of the ninth session of the Board, during which the issuance of shares to 111 participants to the incentive scheme and
the granting of 79.6 million restricted A shares were approved. During the reporting period, the registration of the
79.6 million restricted A shares was completed at Shenzhen Branch of China Securities Depository and Clearing
Company Limited, and such shares were listed on 15 July 2020.
For details, please refer to the relevant announcement (announcement no.: 2020-061) of the Company published on
CNINFO on 9 July 2020.
2. Completion of the implementation of the increase in shareholding of the controlling shareholder
Due to its confidence in the Company’s future business growth and development prospects, as at 9 September 2020,
Chenming Holdings Company Limited, the controlling shareholder, cumulatively increased its shareholding in the
Company by 17,817,434 A shares through centralized bidding on the Shanghai Stock Exchange trading system,
representing 0.6% of the Company’s total share capital. In aggregate, the increase in shareholding amounted to
RMB100,118,100, and the implementation of the increase in shareholding was completed.
For details, please refer to the relevant announcement (announcement no.: 2020-087) of the Company published on
CNINFO on 10 September 2020.
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. Financial asset investments
1. Security investments
Applicable □ Not applicable
Unit: RMB
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
Profit or
loss
Model Open Cumulat Disp Gains or Carrying
from
Type Sto of ing ive fair Purchase osal losses amount
Stock Initial change Accou
of ck accounti carry value s during durin during as at the Source
abbrevi investme in fair nting
securi cod ng ing change the g the the end of of fund
ation nt cost value items
ty e measure amo charged period perio reportin the
during
ment unt to equity d g period period
the
period
Dom
Financ
estic
Measure ial
and Self-o
096 Bohai 195,684, ment at -6,592,9 -6,592,9 195,684, -6,592,9 189,091, assets
overs 0.00 0.00 wned
68 Bank 817.15 fair 90.05 90.05 817.15 90.05 827.10 held
eas funds
value for
share
trading
s
195,684, -6,592,9 -6,592,9 195,684, -6,592,9 189,091,
Total -- 0.00 0.00 -- --
817.15 90.05 90.05 817.15 90.05 827.10
Date of announcement relating to the securities
20 June 2020
investment approved by the board
Date of announcement relating to the securities
Nil
investment approved by the board (if any)
2. Derivative investments
□ Applicable Not applicable
The Company did not have any derivative investments during the reporting period
V. Progress of investment projects with proceeds
□ Applicable Not applicable
VI. Estimate of the operating results for 2020
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
VII. Material contracts in day-to-day operations
□ Applicable Not applicable
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
VIII. Entrusted wealth management
□ Applicable Not applicable
The Company did not have any entrusted wealth management during the reporting period.
IX. 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.
X. 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.
XI. Registration form for reception of research investigations, communications and interviews
during the reporting period
Applicable □ Not applicable
Index for the
Major topics
Type of basic
Place of Mode of discussed and
Time of reception subject of Subject of reception information of
reception reception information
reception the
provided
investigation
Investors
Corporate
participating in the
governance, Panorama
Panorama Individuals 2020 investor online
development Roadshow
29 September 2020 Roadshow Online and collective reception
strategy, and http://rs.p5w.n
platform institutions day event for listed
operating et/
companies in
conditions
Shandong
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
IV Financial Statements
I. Financial Statements
1. Consolidated balance sheet
Prepared by: Shandong Chenming Paper Holdings Limited
30 September 2020
Unit: RMB
Item 30 September 2020 31 December 2019
CURRENT ASSETS：
Monetary funds 17,486,813,167.47 19,306,529,473.33
Financial assets held for trading 189,091,827.10
Bills receivable
Accounts receivable 2,459,250,782.88 2,525,083,311.03
Accounts receivable financing 646,109,530.46 442,915,861.70
Prepayments 932,619,933.04 603,573,549.08
Other receivables 2,266,523,374.40 2,216,654,598.66
Including: Interest receivable
Dividends receivable 13,000,000.00
Inventories 5,338,687,801.95 4,774,430,110.81
Contract assets
Assets held-for-sale
Non-current assets due within one year 7,265,642,098.07 6,974,539,613.30
Other current assets 4,876,429,272.68 8,108,707,394.70
Total current assets 41,461,167,788.05 44,952,433,912.61
NON-CURRENT ASSETS:
Debt investments
Other debt investments
Long-term receivables 2,522,108,649.88 1,200,575,810.95
Long-term equity investments 3,835,285,635.60 3,606,339,023.74
Investment in other equity instruments
Other non-current financial assets 147,445,653.55 147,445,653.55
Investment property 5,182,352,435.80 5,082,362,293.11
Fixed assets 37,970,292,532.85 34,439,935,032.69
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
Item 30 September 2020 31 December 2019
Construction in progress 455,329,505.32 5,476,122,928.95
Right-of-use assets 147,129,301.04 152,141,882.05
Intangible assets 1,828,187,648.67 1,781,061,904.51
Development expenditure
Goodwill 5,969,626.57 5,969,626.57
Long-term prepaid expenses 46,317,772.47 48,203,408.71
Deferred income tax assets 943,032,126.13 892,442,631.04
Other non-current assets 50,470,966.11 173,875,826.67
Total non-current assets 53,133,921,853.99 53,006,476,022.54
Total assets 94,595,089,642.04 97,958,909,935.15
CURRENT LIABILITIES:
Short-term borrowings 34,844,113,549.98 36,883,156,014.19
Financial liabilities held for trading
Bills payable 4,165,556,883.13 1,515,048,206.00
Accounts payable 3,818,079,499.31 4,351,087,581.98
Receipts in advance
Contract liabilities 1,223,586,364.44 968,082,063.13
Employee benefits payable 243,302,520.73 190,229,883.52
Taxes payable 473,218,536.70 311,554,116.73
Other payables 1,968,444,026.25 2,594,249,626.54
Including: Interest payable 122,575,261.67 208,189,699.15
Dividend payable
Liabilities held-for-sale
Non-current assets due within one year 7,345,250,544.13 5,662,958,920.03
Other current liabilities 155,711,997.16 222,402,500.00
Total current liabilities 54,237,263,921.83 52,698,768,912.12
NON-CURRENT LIABILITIES:
Long-term borrowings 7,871,064,710.32 9,140,339,693.56
Bonds payable 1,558,756,456.07 1,258,270,909.49
Including: Preference shares
Perpetual bonds
Lease liabilities 60,271,769.90 59,697,128.65
Long-term payables 2,490,047,622.42 3,321,535,538.94
Long-term employee benefits payable
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
Item 30 September 2020 31 December 2019
Provisions 325,259,082.28 325,259,082.28
Deferred income 1,666,109,369.16 1,771,013,335.11
Deferred income tax liabilities 1,411,125.59
Other non-current liabilities 1,387,172,269.72 3,042,841,328.86
Total non-current liabilities 15,358,681,279.87 18,920,368,142.48
TOTAL LIABILITIES 69,595,945,201.70 71,619,137,054.60
OWNERS’ EQUITY:
Share capital 2,984,208,200.00 2,904,608,200.00
Other equity instruments 5,473,500,000.00 7,465,500,000.00
Including: Preference shares 4,477,500,000.00 4,477,500,000.00
Perpetual bonds 996,000,000.00 2,988,000,000.00
Capital reserves 5,256,000,531.30 5,086,686,427.30
Less: Treasury shares 226,860,000.00
Other comprehensive income -785,213,057.79 -879,452,135.10
Special reserves - -
Surplus reserves 1,212,009,109.97 1,212,009,109.97
General risk reserves 74,122,644.20 74,122,644.20
Retained profit 9,364,289,228.84 9,306,269,617.38
Total equity attributable to equity holders of the company 23,352,056,656.52 25,169,743,863.75
Minority interest 1,647,087,783.82 1,170,029,016.80
Total owners’ equity 24,999,144,440.34 26,339,772,880.55
TOTAL LIABILITIES AND OWNERS’ EQUITY 94,595,089,642.04 97,958,909,935.15
Legal Representative: Chen Hongguo Head in charge of accounting: Dong Lianming Head of the accounting department: Zhang Bo
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
2. Balance sheet of the Company
Unit: RMB
Item 30 September 2020 31 December 2019
CURRENT ASSETS：
Monetary funds 6,353,643,948.78 9,001,257,324.52
Financial assets held for trading
Bills receivable 1,689,170,000.00 3,254,460,000.00
Accounts receivable 742,330,617.37 39,204,670.00
Accounts receivable financing 92,509,620.51 189,873,567.14
Prepayments 325,939,372.49 722,472,479.01
Other receivables 10,548,910,904.10 13,975,590,537.58
Including: Interest receivable
Dividends receivable
Inventories 880,563,153.40 696,487,727.53
Contract assets
Assets held-for-sale
Non-current assets due within one year 245,631,300.05 129,546,826.00
Other current assets 81,935,906.10 80,815,659.84
Total current assets 20,960,634,822.80 28,089,708,791.62
NON-CURRENT ASSETS:
Debt investments
Other debt investments
Long-term receivables 28,467,038.25 418,750,862.51
Long-term equity investments 22,449,689,544.10 23,629,780,317.87
Investment in other equity instruments 3,000,000.00
Other non-current financial assets 147,445,653.55 147,445,653.55
Investment property
Fixed assets 4,043,600,693.20 3,901,007,932.88
Construction in progress 46,206,919.27 350,623,821.42
Bearer biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 538,608,376.11 446,430,156.00
Development expenditure
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
Item 30 September 2020 31 December 2019
Goodwill
Long-term prepaid expenses
Deferred income tax assets 405,055,394.12 426,711,909.98
Other non-current assets 110,930,000.00
Total non-current assets 27,659,073,618.60 29,434,680,654.21
Total assets 48,619,708,441.40 57,524,389,445.83
CURRENT LIABILITIES:
Short-term borrowings 11,977,894,807.77 11,601,509,632.09
Financial liabilities held for trading
Bills payable 8,568,988,482.46 9,890,041,170.20
Accounts payable 976,199,992.44 833,526,295.40
Receipts in advance
Contract liabilities 1,586,942,663.11 2,096,436,345.90
Employee benefits payable 73,746,920.90 71,040,017.13
Taxes payable 111,921,468.72 76,872,851.56
Other payables 3,365,780,716.24 6,426,648,847.95
Including: Interest payable 83,604,527.77 127,278,083.35
Dividend payable
Liabilities held-for-sale
Non-current liabilities due within one year 1,954,953,332.87 3,695,934,663.30
Other current liabilities 306,997,500.01 932,402,500.00
Total current liabilities 28,923,425,884.52 35,624,412,323.53
NON- CURRENT LIABILITIES:
Long-term borrowings 1,150,692,035.94 150,692,035.94
Bonds payable 439,950,500.00 89,070,000.00
Including: Preference shares
Perpetual bonds
Lease liabilities
Long-term payables 671,919,435.31 1,167,426,124.98
Long-term employee benefits payable
Provisions 325,259,082.28 325,259,082.28
Deferred income 38,940,459.23 42,070,840.27
Deferred income tax liabilities
Other non-current liabilities 1,793,483,343.67 2,789,283,340.67
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
Item 30 September 2020 31 December 2019
Total non-current liabilities 4,420,244,856.43 4,563,801,424.14
TOTAL LIABILITIES 33,343,670,740.95 40,188,213,747.67
OWNERS’ EQUITY:
Share capital 2,984,208,200.00 2,904,608,200.00
Other equity instruments 5,473,500,000.00 7,465,500,000.00
Including: Preference shares 4,477,500,000.00 4,477,500,000.00
Perpetual bonds 996,000,000.00 2,988,000,000.00
Capital reserves 5,091,821,539.19 4,953,557,435.19
Less: Treasury shares 226,860,000.00
Other comprehensive income
Special reserves
Surplus reserves 1,199,819,528.06 1,199,819,528.06
General risk reserves 753,548,433.20 812,690,534.91
Total owners’ equity 15,276,037,700.45 17,336,175,698.16
TOTAL LIABILITIES AND OWNERS’ EQUITY 48,619,708,441.40 57,524,389,445.83
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
3. Consolidated income statement for the reporting period
Unit: RMB
Amounts for the Amounts for the
Item
period prior period
I. Total revenue 8,473,304,915.35 8,665,530,249.94
Including: Revenue 8,473,304,915.35 8,665,530,249.94
II. Total operating costs 8,015,225,647.68 7,902,495,189.97
Including: Operating costs 6,426,184,198.87 6,283,700,892.83
Taxes and surcharges 63,667,198.96 57,547,747.02
Sales and distribution expenses 358,827,887.19 373,167,721.36
General and administrative expenses 237,652,742.13 246,100,352.99
Research and development expenses 317,186,736.96 274,206,599.62
Finance expenses 611,706,883.57 667,771,876.15
Including: Interest expenses 696,344,047.21 777,506,849.57
Interest income 125,934,498.91 90,102,448.79
Plus: Other income 92,653,683.76 20,809,943.31
Investment income (“-” denotes loss) 64,675,083.25 175,779,271.30
Including: Investment income from associates and joint
62,040,735.99 811,698.89
ventures
Gain on change in fair value (“-” denotes loss) -6,592,990.05
Credit impairment loss (“-” denotes loss) 17,208,777.85 -199,109,603.59
Asset impairment loss (“-” denotes loss) -13,407,009.95
Gain on disposal of assets (“-” denotes loss) 28,934,169.36 -38,828,228.51
III. Operating profit (“-” denotes loss) 641,550,981.89 721,686,442.48
Plus: Non-operating income 23,894,341.36 31,033,192.17
Less: Non-operating expenses 9,516,535.09 11,007,861.52
IV. Total profit (“-” denotes total loss) 655,928,788.16 741,711,773.13
Less: Income tax expenses 93,841,592.57 160,781,655.00
V. Net profit (“-” denotes net loss) 562,087,195.59 580,930,118.13
(I) Classification according to the continuity of operation
1. Net profit from continuing operations (“-” denotes net loss) 562,087,195.59 580,930,118.13
2. Net profit from discontinued operations (“-” denotes net
loss)
(II) Classification according to ownership
1. Net profit attributable to shareholders of the Company 560,227,575.14 557,960,253.43
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
Amounts for the Amounts for the
Item
period prior period
2. Profit or loss of minority interest 1,859,620.45 22,969,864.70
VI. Net other comprehensive income after tax 202,803,164.91 -231,012,416.02
Net other comprehensive income after tax attributable to 202,803,164.91 -231,012,416.02
shareholders of the Company income that will be reclassified to
(II) Other comprehensive 202,803,164.91 -231,012,416.02
subsequent periods
profit and loss1. inTranslation differences of financial statements 202,803,164.91 -231,012,416.02
Net other in foreign currency
denominatedcomprehensive income after tax attributable to minority
interest
VII. Total comprehensive income 764,890,360.50 349,917,702.11
Total comprehensive income attributable to shareholders of the 763,030,740.05 326,947,837.41
Company comprehensive income attributable to minority interest
Total 1,859,620.45 22,969,864.70
VIII. Earnings per share:
(I) Basic earnings per share 0.136 0.135
(II) Diluted earnings per share 0.136 0.135
Legal Representative: Chen Hongguo Head in charge of accounting: Dong Lianming Head of the accounting department: Zhang Bo
4. Statement of profit or loss and other comprehensive income of the Company for the reporting period
Unit: RMB
Amounts for the Amounts for the
Item
period prior period
I. Revenue 2,276,595,383.89 2,000,086,603.00
Less: Operating costs 1,829,561,648.41 1,509,980,777.19
Taxes and surcharges 22,676,611.57 8,956,107.34
Sales and distribution expenses 63,495,307.13 60,328,897.34
General and administrative expenses 70,602,249.69 97,046,884.52
Research and development expenses 79,872,864.77 82,066,921.93
Finance expenses 35,567,588.94 527,818,510.79
Including: Interest expenses 324,537,885.27 680,271,275.54
Interest income 276,222,561.01 160,658,344.73
Plus: Other income 1,759,793.68 1,075,008.68
Investment income (“-” denotes loss) -984,567.48 276,223,938.89
Including: Investment income from associates and joint
-984,567.48 -1,560,406.88
ventures
Gains from changes in fair value (“-” denotes loss)
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
Amounts for the Amounts for the
Item
period prior period
Credit impairment loss (“-” denotes loss) 4,534,752.29 -47,516,333.91
Loss on impairment of assets (“-” denotes loss)
Gain on disposal of assets (“-” denotes loss) 23,262,231.81 -5,712,679.60
II. Operating profit (“-” denotes loss) 203,391,323.68 -62,041,562.05
Plus: Non-operating income 1,109,607.69 11,070,851.80
Less: Non-operating expenses 563,591.87 6,387,118.13
III. Total profit (“-” denotes total loss) 203,937,339.50 -57,357,828.38
Less: Income tax expenses 21,691,423.04 -17,381,871.64
IV. Net profit (“-” denotes net loss) 182,245,916.46 -39,975,956.74
(I) Net profit from continuing operations (“-” denotes net loss) 182,245,916.46 -39,975,956.74
VI. Total comprehensive income 182,245,916.46 -39,975,956.74
5. Consolidated statement of profit or loss 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 22,073,110,681.21 22,014,178,363.64
Including: Revenue 22,073,110,681.21 22,014,178,363.64
II. Total operating costs 21,347,078,154.23 20,892,416,331.43
Including: Operating costs 16,611,484,232.18 16,037,798,692.65
Taxes and surcharges 170,715,297.17 192,036,292.08
Sales and distribution expenses 1,011,570,307.54 963,752,678.83
General and administrative expenses 729,639,987.46 808,517,752.24
Research and development expenses 865,743,883.85 705,690,315.68
Finance expenses 1,957,924,446.03 2,184,620,599.95
Including: Interest expenses 2,135,844,207.98 2,354,263,128.87
Interest income 402,049,517.88 304,096,729.01
Plus: Other income 226,087,658.21 59,641,233.95
Investment income (“-” denotes loss) 201,568,566.22 166,312,098.33
Including: Investment income from associates and joint
184,790,525.01 -8,655,474.08
ventures
Gain from changes in fair value (“-” denotes loss) -15,839,733.91 -1,883,064.80
Credit impairment loss (“-” denotes loss) -240,647,125.75 -261,549,886.93
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
Amounts for the Amounts for the
Item
period prior period
Loss on impairment of assets (“-” denotes loss) -13,570,727.71 82,790,921.68
Gain on disposal of assets (“-” denotes loss) 24,228,282.47 -15,331,491.17
III. Operating profit (“-” denotes loss) 907,859,446.51 1,151,741,843.27
Plus: Non-operating income 666,294,459.14 268,505,785.14
Less: Non-operating expenses 18,524,079.27 16,057,989.71
IV. Total profit (“-” denotes total loss) 1,555,629,826.38 1,404,189,638.70
Less: Income tax expenses 331,801,780.72 286,659,474.62
V. Net profit (“-” denotes net loss) 1,223,828,045.66 1,117,530,164.08
(I) Classification according to the continuity of operation
1. Net profit from continuing operations (“-” denotes net loss) 1,223,828,045.66 1,117,530,164.08
2. Net profit from discontinued operations (“-” denotes net
loss)
(II) Classification according to ownership
1. Net profit attributable to shareholders of the Company 1,076,554,278.62 1,067,755,825.72
2. Profit or loss of minority interests 147,273,767.04 49,774,338.36
VI. Net other comprehensive income after tax 94,239,077.31 -247,029,104.22
Net other comprehensive income after tax attributable to
94,239,077.31 -247,029,104.22
shareholders of the Company
(II) Other comprehensive income that will be reclassified to
94,239,077.31 -247,029,104.22
profit or loss
1. Exchange differences on translation 94,239,077.31 -247,029,104.22
Net other comprehensive income after tax attributable to minority
interest
VII. Total comprehensive income 1,318,067,122.97 870,501,059.86
Total comprehensive income attributable to shareholders of the
1,170,793,355.93 820,726,721.50
Company
Total comprehensive income attributable to minority interest 147,273,767.04 49,774,338.36
VIII. Earnings per share:
(I) Basic earnings per share 0.187 0.148
(II) Diluted earnings per share 0.187 0.148
Legal Representative: Chen Hongguo Head in charge of accounting: Dong Lianming Head of the accounting department: Zhang Bo
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
6. Statement of profit or loss of the Company from the beginning of the year to the end of the reporting period
Unit: RMB
Amounts for the Amounts for the prior
Item
period period
I. Revenue 6,123,789,041.42 4,696,099,019.10
Less: Operating costs 4,858,035,120.83 3,613,267,928.83
Taxes and surcharges 43,406,698.99 31,340,628.12
Sales and distribution expenses 187,644,083.02 156,262,010.50
General and administrative expenses 229,708,685.85 257,448,680.43
Research and development expenses 208,535,860.54 204,332,393.43
Finance expenses 416,134,913.98 1,379,257,085.04
Including: Interest expenses 1,128,352,909.69 1,977,451,686.00
Interest income 788,346,047.09 684,663,818.41
Plus: Other income 5,924,476.14 3,255,881.04
Investment income (“-” denotes loss) 681,684,463.59 1,286,777,082.46
Including: Investment income from in associates and joint
-2,645,536.41 -14,360,263.31
ventures
Gains from changes in fair value (“-” denotes loss)
Credit impairment loss (“-” denotes loss) 19,772,653.80 -48,361,072.12
Loss on impairment of assets (“-” denotes loss)
Gains on disposal of assets (“-” denotes loss) 39,365,091.11 16,703,489.82
II. Operating profit (“-” denotes loss) 927,070,362.85 312,565,673.95
Plus: Non-operating income 55,795,173.30 89,014,190.80
Less: Non-operating expenses 1,816,454.84 10,583,044.24
III. Total profit (“-” denotes total loss) 981,049,081.31 390,996,820.51
Less: Income tax expenses 21,656,515.86 -113,957,576.37
IV. Net profit (“-” denotes net loss) 959,392,565.45 504,954,396.88
(I) Net profit from continuing operations (“-” denotes net loss) 959,392,565.45 504,954,396.88
V. Total comprehensive income 959,392,565.45 504,954,396.88
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
7. Consolidated statement of cash flows from the beginning of the year to the end of the reporting period
Unit: RMB
Amounts for the Amounts for the prior
Item
period period
I. Cash flows from operating activities:
Cash received from sales of goods and rendering of services 24,709,035,873.24 24,694,452,196.67
Tax rebates received 4,987,490.79 3,235,185.49
Cash received relating to other operating activities 3,128,476,419.91 4,789,319,464.29
Subtotal of cash inflows from operating activities 27,842,499,783.94 29,487,006,846.45
Cash paid for goods and services 17,553,230,744.56 18,654,617,667.62
Cash paid to and for employees 887,119,561.10 957,941,627.76
Payments of taxes and surcharges 919,411,194.62 1,440,370,577.89
Cash paid relating to other operating activities 1,213,888,162.10 1,934,852,831.68
Subtotal of cash outflows from operating activities 20,573,649,662.38 22,987,782,704.95
Net cash flows from operating activities 7,268,850,121.56 6,499,224,141.50
II. Cash flows from investing activities:
Cash received from disposal of investments 2,784,345.77
Cash received from investments income 26,760,712.33 12,000,000.00
Net cash received from disposal of fixed assets, intangible
131,924,763.00 131,375,805.90
assets and other long-term assets
Net cash received from disposal of subsidiaries and other
217,547,669.15 221,000,000.00
business units
Cash received relating to other investing activities 409,282,077.65 767,670,000.00
Subtotal of cash inflows from investing activities 785,515,222.13 1,134,830,151.67
Cash paid for purchase of fixed assets, intangible assets and
225,778,525.87 926,528,167.05
other long-term assets
Cash paid on investments 124,256,800.00 1,639,194,479.24
Net cash paid for acquisition of subsidiaries and other business
entities
Cash paid relating to other investing activities 4,000,000.00 189,628,400.00
Subtotal of cash outflows from investing activities 354,035,325.87 2,755,351,046.29
Net cash flows from investing activities 431,479,896.26 -1,620,520,894.62
III. Cash flows from financing activities:
Cash receipts from capital contributions 596,070,000.00
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
Amounts for the Amounts for the prior
Item
period period
Including: Cash receipts from capital contributions by minority
shareholders of subsidiaries
Cash received from borrowings 19,337,769,412.42 28,024,258,208.07
Cash received relating to other financing activities 2,738,933,979.49 4,096,789,134.60
Subtotal of cash inflows from financing activities 22,672,773,391.91 32,121,047,342.67
Cash repayments of amounts borrowed 22,137,188,922.54 23,844,425,199.09
Cash paid for dividend and profit distribution or interest
2,572,090,031.97 3,051,263,128.87
payment
Cash paid relating to other financing activities 6,208,558,904.21 9,712,203,599.23
Subtotal of cash outflows from financing activities 30,917,837,858.72 36,607,891,927.19
Net cash flows from financing activities -8,245,064,466.81 -4,486,844,584.52
IV. Effect of foreign exchange rates changes on cash and cash
49,151,722.66 -377,093,948.33
equivalents
V. Net increase in cash and cash equivalents -495,582,726.33 14,764,714.03
Plus: Balance of cash and cash equivalents as at the beginning
2,890,328,027.40 2,381,558,242.52
of the period
VI. Balance of cash and cash equivalents as at the end of the period 2,394,745,301.07 2,396,322,956.55
8. Statement of cash flows of the Company 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 services 6,282,142,625.71 6,426,249,401.49
Tax rebates received
Cash received relating to other operating activities 202,526,578.83 1,296,334,093.23
Subtotal of cash inflows from operating activities 6,484,669,204.54 7,722,583,494.72
Cash paid for goods and services 4,955,500,996.59 1,643,706,437.55
Cash paid to and for employees 259,796,913.91 324,122,682.18
Payments of taxes and surcharges 150,054,752.93 145,658,208.00
Cash paid relating to other operating activities 535,044,976.64 815,945,979.17
Subtotal of cash outflows from operating activities 5,900,397,640.07 2,929,433,306.90
Net cash flows from operating activities 584,271,564.47 4,793,150,187.82
II. Cash flows from investing activities:
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
Amounts for the Amounts for the
Item
period prior period
Cash received from disposal of investments 1,466,082,906.51 2,784,345.77
Cash received from investment income 682,430,000.00 2,000,000.00
Net cash received from disposal of fixed assets, intangible
104,624,763.00 75,806,913.60
assets and other long-term assets
Net cash received from disposal of subsidiaries and other
221,000,000.00
business entities
Cash received relating to other investing activities 409,282,077.65 767,670,000.00
Subtotal of cash inflows from investing activities 2,662,419,747.16 1,069,261,259.37
Cash paid for purchase of fixed assets, intangible assets and
6,337,885.55 39,680,681.99
other long-term assets
Cash paid on investments 1,147,500,000.00
Net cash paid for acquisition of subsidiaries and other business
entities
Cash paid relating to other investing activities
Subtotal of cash outflows from investing activities 6,337,885.55 1,187,180,681.99
Net cash flows from investing activities 2,656,081,861.61 -117,919,422.62
III. Cash flows from financing activities:
Cash receipts from capital contributions 226,860,000.00
Cash received from borrowings 12,457,501,284.37 8,067,108,555.77
Cash received relating to other financing activities 3,859,765,533.92 5,638,813,889.00
Subtotal of cash inflows from financing activities 16,544,126,818.29 13,705,922,444.77
Cash repayments of amounts borrowed 12,114,948,547.18 8,335,983,231.30
Cash paid for dividend and profit distribution or interest
801,386,060.50 1,471,593,054.48
payment
Cash paid relating to other financing activities 6,215,246,529.40 8,479,116,872.45
Subtotal of cash outflows from financing activities 19,131,581,137.08 18,286,693,158.23
Net cash flows from financing activities -2,587,454,318.79 -4,580,770,713.46
IV. Effect of foreign exchange rate changes on cash and cash
1,867,883.13 -3,844,637.47
equivalents
V. Net increase in cash and cash equivalents 654,766,990.42 90,615,414.27
Plus: Balance of cash and cash equivalents as at the beginning
136,328,721.71 607,805,063.02
of the period
VI. Balance of cash and cash equivalents as at the end of the period 791,095,712.13 698,420,477.29
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Shangdong Chenming Paper Holdings Limited 2020 Third Quarterly Report
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 Revenue and the New Standards for Lease in 2020
□ 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 Revenue and the New Standards for Lease in 2020
□ 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
22 October 2020
28
