Foshan Huaxin Packaging Co., Ltd. Annual Report 2019 (Summary)
Stock Code: 200986 Stock Name: Huaxin Packaging-B Announcement No. 2020-010
FOSHAN HUAXIN PACKAGING CO., LTD.
ANNUAL REPORT 2019 (SUMMARY)
Part I Important Notes
This Summary is based on the full text of the 2019 Annual Report of Foshan Huaxin Packaging Co., Ltd.
(together with its consolidated subsidiaries, the “Company”, except where the context otherwise requires). In
order for a full understanding of the Company’s operating results, financial position and future development plans,
investors should carefully read the aforesaid full text, which has been disclosed together with this Summary on the
media designated by the China Securities Regulatory Commission (the “CSRC”).
Objections raised by any of the directors, supervisors or senior management against any contents in this Report or
its summary: Not applicable
All the Company’s directors have attended the Board meeting for the review of this Report and its summary.
Independent auditor’s modified opinion: Not applicable
Board-approved final cash and/or stock dividend plan for ordinary shareholders for the Reporting Period:
Applicable
Bonus issue from capital reserves: None
The Board has approved a final dividend plan for ordinary shareholders as follows: based on the 505,425,000
shares, a cash dividend of RMB0.15 (tax inclusive) per 10 shares is to be distributed to the shareholders, with no
bonus issue from either profit or capital reserves.
Board-approved final cash and/or stock dividend plan for preferred shareholders for the Reporting Period: Not
applicable
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Foshan Huaxin Packaging Co., Ltd. Annual Report 2019 (Summary)
This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies
or misunderstandings between the two versions, the Chinese versions shall prevail.
Part II Key Corporate Information
1. Stock Profile
Stock name Huaxin Packaging-B Stock code 200986
Stock exchange for listing Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name Ding Guoqiang Shi Hui
2/F, Block 7, 3 Keyang Road, Luoge Park, 2/F, Block 7, 3 Keyang Road, Luoge Park,
Chancheng Economic Development Zone, Chancheng Economic Development Zone,
Address
Nanzhuang Town, Chancheng District, Nanzhuang Town, Chancheng District,
Foshan, Guangdong Province, P.R.China Foshan, Guangdong Province, P.R.China
Fax 0756-8666922 0756-8666922
Tel. 0756-8666975 0756-8666978
Email address dinggq@htrh-paper.com shih@htrh-paper.com
2. Principal Activities or Products in the Reporting Period
The Company specializes in the R&D, production and sales of high-end coated ivory board, chemicals for paper
making and color printing products. The businesses are described as follows:
(I) High-end coated ivory board
High-end coated ivory board is the primary product of the Company. As a category of white paperboard, it is
applied in various fields such as cigarette packaging, food packaging, medicine packaging, cosmetic packaging
and living supplies packaging, which represent the core business of the Company. The R&D, production and sales
of the ivory board is mainly undertaken by Zhuhai Hongta Renheng Packaging Co., Ltd. and Zhuhai Huafeng
Paper Co., Ltd. Hongta Renheng is the core high-end packaging board platform under Huaxin Packaging which is
based in domestic and overseas high-end packaging markets of cigarette and food and provides "personalized"
products and services for customers with "differentiation" business strategy. The Company now has three coated
ivory board production lines, and the annual production capacity around 600,000 tons. The Company's products
can be divided into the following categories:
1. Coated ivory board for cigarette packaging, the primary product of the Company, is used in the high-end
cigarette packaging market. The coated ivory board for cigarette packaging produced by Hongta Renheng takes up
a dominant position in the domestic cigarette packaging field. It represents the highest level of coated ivory board
quality in China. It has won a Golden Award at China’s International Paper & Paper Product Brands Exhibition,
and the top award of the Chinese science and technology community—the first-class State Science and
Technology Advancement Award. The anti-counterfeit coated ivory board with color fiber and true-color fiber
etc.—a technology that is independently developed by the Company and has been granted the national invention
patent of China—has been successfully applied in the packaging of a series of cigarettes in the “Hongta Group”
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Foshan Huaxin Packaging Co., Ltd. Annual Report 2019 (Summary)
and “HongyunHonghe Group" brands to combat counterfeiting from the packaging materials, reaching the
significant anti-counterfeit results of “easily identifiable but difficult to copy”. The “tobacco fiber ivory board”, a
new product of the Company that pursues the recycling philosophy of “Coming from Tobacco, Used for Tobacco”,
is being tested on the market. And the “black cardboard for cigarette packaging” newly launched to the market is
well-received among customers with stable hue in printing.
2. In terms of ivory board for liquid and food packaging, the Company is the first to break the foreign
technological monopoly with its ivory board for liquid packaging. The Company’s homegrown sterile paperboard
for packaging of liquid milk, fruit juice, herbal tea and other drinks has effectively substituted imported products.
The ivory board series for food packaging such as anti-oil food grade coated board and high-end paper cup have
been recognized by well-known catering groups after they are put into the market. Upholding the philosophy of
sustainable development, Hongta Renheng has successfully developed the “plastic-free coated board for food
packaging” and the “PE-free paper for paper cups”, which is an effective alternative to plastic package and can
help reduce the use of plastic.
3. The high-end commercial ivory board is applied in the segmented packaging market fields like the high-end
medicine, cosmetics, and daily necessities. The anti-counterfeit coated ivory paper with personalized
identification code independently developed by the Company and for which it has been granted the invention
patent has been successfully applied in the anti-counterfeit packaging of the high-end products like high-end
medicine and cosmetics, which does not only solve the difficulties posed by impact from counterfeit and shoddy
products for customers at the source, but also effectively reduces the customer’s anti-counterfeit costs and fake
product crackdown expanses and win high trust from the market. Meanwhile, the “paper for cluster packaging”
launched in 2019 can cater to various sorts of packaging needs and excels as a green material.
(II) Chemicals for paper making
Chemicals for paper making represent an upstream extension of the Company’s business of the paper-making
industrial chain. The R&D, production and sales of which are mainly undertaken by Golden Pheasant Chemical, a
subsidiary of the Company, which mainly supplies carboxylic butadiene-styrene latex, styrene-acrylic latex,
super-fine calcium carbonate and auxiliary chemicals for paper making. These products of domestically first-class
quality are mainly used by major coated board producers in China as adhesive and pigment. Therefore, Golden
Pheasant Chemical is considered a well-known papermaking latex producer in China.
(III) Color printing products
Color printing represents a downstream extension of the Company’s business of the paper-making industrial chain,
which covers designing and manufacturing packaging materials and providing one-stop packaging solutions for
customers. This business is mainly undertaken by Huaxin (Foshan) Color Printing Co., Ltd., which owns offset,
flexo and intaglio printing workshops. Main products include color boxes, various labels (paper label, in-mold
label and sticker), barcode printing, brochures and books, and variable data printing is also available, which cater
to various fields of end consumer goods, including medicine, condiments and beverages. The most outstanding
advantage is customization from the material end, providing greener, more economical and individualized
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Foshan Huaxin Packaging Co., Ltd. Annual Report 2019 (Summary)
packaging materials for customers.
3. Key Financial Information
(1) Key Financial Information of the Past Three Years
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Unit: RMB
2019-over-2018
2019 2018 2017
change (%)
Operating revenue (RMB) 3,930,629,985.81 3,683,004,543.50 6.72% 3,583,157,646.37
Net profit attributable to the listed
35,704,671.22 -2,814,965.92 18,637,865.97
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 25,885,573.07 -36,089,244.17 12,337,519.04
exceptional gains and losses (RMB)
Net cash generated from/used in
91,344,251.74 393,465,394.72 -76.78% -21,910,921.08
operating activities (RMB)
Basic earnings per share
0.07 -0.01 0.04
(RMB/share)
Diluted earnings per share
0.07 -0.01 0.04
(RMB/share)
Weighted average return on equity Down by 1.94 percen
1.80% -0.14% 0.94%
(%) tage points
Change of 31
31 December 2019 31 December 2018 December 2019 over 31 December 2017
31 December 2018 (%)
Total assets (RMB) 5,591,643,310.38 5,794,694,744.15 -3.50% 5,426,368,352.69
Equity attributable to the listed
2,006,651,491.51 1,970,946,820.29 1.81% 1,982,859,436.21
company’s shareholders (RMB)
(2) Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 836,194,775.89 896,931,461.79 1,019,323,202.87 1,178,180,545.26
Net profit attributable to the listed
-686,073.74 11,175,339.54 10,605,016.06 14,610,389.36
company’s shareholders
Net profit attributable to the listed
company’s shareholders before -1,328,036.88 10,141,608.23 8,153,098.75 8,918,902.9
exceptional gains and losses
Net cash generated from/used in
204,685,226.03 -553,846,025.82 424,821,860.58 15,683,190.95
operating activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from what
have been disclosed in the Company’s quarterly or interim reports.
□ Yes √ No
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Foshan Huaxin Packaging Co., Ltd. Annual Report 2019 (Summary)
4. Share Capital and Shareholder Information at the Period-End
(1) Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number
of
preferred Number of preferred
Number of Number of ordinary sharehold shareholders with
ordinary shareholders at the ers with resumed voting
shareholder 12,799 month-end prior to the 12714 resumed 0 rights at the 0
s at the disclosure of this voting month-end prior to
period-end Report rights at the disclosure of this
the Report
period-en
d
Top 10 shareholders
Total shares Shares in pledge or frozen
Name of Nature of Shareholding
held at the Private shares held
shareholder shareholder percentage Status Shares
period-end
FOSHAN HUAXIN State-owne
DEVELOPMENT d legal 65.20% 329,512,030 329,512,030
CO., LTD. person
GUOTAI JUNAN
Foreign
SECURITIES(HON 0.63% 3,204,010 0
legal person
GKONG) LIMITED
Foreign
WU HAOYUAN natural 0.62% 3,127,291 0
person
Domestic
ZHAI YUZHEN natural 0.41% 2,054,200 0
person
Domestic
CAI YUJIU natural 0.39% 1,969,600 0
person
Domestic
MIU JUN natural 0.31% 1,552,400 0
person
Foreign
NORGES BANK 0.27% 1,352,720 0
legal person
Domestic
CAO YIFAN natural 0.24% 1,210,000 0
person
ESSENCE
INTERNATIONAL
Foreign
SECURITIES 0.24% 1,205,252 0
legal person
(HONG KONG)
CO., LTD.
FOSHAN CHAN
State-owne
BEN DE ASSET
d legal 0.23% 1,139,420 1,139,420
MANAGEMENT
person
CO., LTD
Related or acting-in-concert
It is unknown whether there is among the above shareholders any related or acting-in-concert
parties among the shareholders
party as defined in the Administrative Measures for the Acquisition of Listed Companies
above
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Foshan Huaxin Packaging Co., Ltd. Annual Report 2019 (Summary)
Shareholders involved in
None
securities margin trading (if any)
(2) Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
(3) Ownership and Control Relations between the Actual Controller and the Company
5. Corporate Bonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were outstanding before the date of this
Report’s approval or were due but could not be redeemed in full?
No.
Part III Operating Performance Discussion and Analysis
1. Business Overview of the Reporting Period
(I) Market environment of the industry
In 2019, China’s macro economic growth slowed down, the trade dispute between China and the USA
deteriorated, and the environmental protection policy became stricter. Being in a critical period of shifting the way
of development, refining the economic structure and shifting growth drivers, China was under greater downward
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Foshan Huaxin Packaging Co., Ltd. Annual Report 2019 (Summary)
pressure in its economy due to the structural, system and economy cycle factors at this period. During the year, the
papermaking industry where the Company competes saw faster integration, fluctuating prices of wood pulp—the
primary raw material, and stability and improvement in the operating environment and earnings. The
centralization degree of the packaging industry is relatively low, the market competition is relatively fierce, and
the overall development walks towards greener and smarter products. The increasing environmental protection
awareness promotes demand for green packaging solutions.
(II) Operating results during the Reporting Period
In 2019, under the correct leadership of its superior, the Company stuck to the leadership of the Party,
implemented education work with the theme as “remain true to original aspiration and remember the mission
firmly” in depth, and pursued high quality development through high quality Party guidance work. It followed the
principles of “Reduce Inventories, Receivables and Expenditure, Improve Efficiency and Control Costs” in
operation, expanded overseas market, improved internal governance level, deepened organization and institution
reform, increased input for R&D and innovation, and strengthened risk management, with internal management
quality and each business module improved obviously.
Profitability continued to improve in the Company’s businesses of ivory board, color printing and papermaking
chemicals. In terms of its papermaking business, operating efficiency improved and cost control measures proved
effective. 521.4 thousand tons of paper products were sold during 2019, up 7.8% year-on-year, with finished
products in stock down by over 10%, which represented a considerable decrease in loss. The color printing
division saw a year-on-year increase in operating revenue and an over-70% year-on-year growth in profit during
2019 due to efforts in market expansion, internal management improvement and product mix adjustment. As for
the chemicals division, the sales volume of latex went up 7.4% during the year when compared to last year against
the unfavorable external environment, thanks to continued innovation in R&D and refinement of the production
process. This division maintained steady earnings and is expected to enjoy plenty of potential for growth.
For the Reporting Period, the Company recorded operating revenue of RMB3,930.63 million, a gross profit of
RMB32.1518 million, and a net profit attributable to the listed company’s shareholders of RMB35.7047 million.
As at the end of the Reporting Period, the total assets of the Company amounted to RMB5,591.6433 million, with
a debt/asset ratio of 36.78%.
(III) Operation measures during the Reporting Period
1. Sticking to the leadership of the Communist Party of China (the “Party”) and integrating such guidance in the
Company’s operations
In 2019, according to the requirements of its superior, the Company strengthened the leadership of Party guidance,
implemented education work with the theme as “remain true to original aspiration and remember the mission
firmly” in depth. The Party members and cadres constantly strengthened their mission and responsibilities, united
and led employees and common people to break through hardships. The Company stuck to the guidance of Xi
Jinping's socialist ideology with China's characteristics in the new era, thoroughly implemented the overall
requirements of Party guidance of state owned enterprise in the new era, and promoted the activities of Party
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Foshan Huaxin Packaging Co., Ltd. Annual Report 2019 (Summary)
guidance work entering enterprise, workshop and group. The Company integrated Party guidance work into
production operation, imbedded it into management, and completed internal management structure of the
Company according to the principle of “big integration, middle imbedding, and small guiding”. Party
organizations of different levels and wide Party members led to break through difficulties, and promoted the
launch of new products, such as plastic-free food board, tobacco fiber board, black paperboard for cigarette
packaging, etc., with output of color presswork reaching another new high and latex for papermaking growing
into an influential domestic brand. The leadership of Party was enhanced constantly, the quality of Party guidance
was improved constantly, the construction of a clean and honest Party was improved constantly, Party guidance
and operation integrated in depth, promoted effectively and developed together.
2. Enhance technology innovation, and deepen organization and institution reform
In 2019, the Company took technology innovation and mechanism reform as the main tone, coordinated resources,
and improved operation efficiency.
Through constantly adjusting and integrating the R&D-related functions, reforming systems and mechanisms, as
well as following the market-oriented principle in R&D, Hongta Renheng established the New Material
Development and Industrial Technology Research Institute, and established a professional R&D team led by
doctoral holders in relevant fields and comprising seasoned technical staff, which means it is capable of
independent product development. It integrated paper making, chemicals and printing packaging technologies,
expanded and deepened research of “new materials +” of emerging industry, and undertook the R&D of new
products, production processes, technologies and raw and auxiliary materials for the Company. Meanwhile, it also
undertook product development and technical service for external enterprises in the papermaking and chemical
industry, as well as science and technology research programs relating to strategic emerging industries and new
materials initiated by the national, provincial and municipal governments. Besides, it formulated elastic and
marketized new incentive mechanism, stimulated new motivation of technology innovation of technological staff,
thoroughly exerted and mobilized the innovation and positiveness of technological staff.
Huaxin Color Printing continued to strengthen its R&D input, catered to variable data printing needs, and
provided customized packaging printing solutions for customers from the material end. Meanwhile, it refined the
organization of the technology, marketing and production departments, and properly implemented a job rotation
system, which spurred vitality.
3. Reform marketing system, and optimize and coordinate internal system
The marketing department took market as orientation, optimized “value marketing” system. It took sales amount
increase as the main assessment indicator, specified performance assessment at quantitative sales end and
formulated a competitive remuneration incentive mechanism. Combining with product characteristics and status
quo of the market, it constantly optimized marketing structure, realized the optimal configuration and utilization
of marketing resources, jointly optimized each supply chain link. The production and manufacturing department
implemented an appraisal system of “efficiency + profit”, reduced employees and increased efficiency, improved
per capita income, and established a fair promotion system so as to improve the overall business skills.
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Foshan Huaxin Packaging Co., Ltd. Annual Report 2019 (Summary)
4. Constantly complete institution reform, and reconstruct remuneration system
The Company established position performance remuneration system oriented by performance. Meanwhile, it
expanded the path of vocational technology channels, further stimulated and stabilized staff team, improved talent
introduction and cultivation plans to serve for the future strategic development of the Company. It reformed the
existing remuneration system based on the incentive distribution principle of “focusing on performance, punishing
the lazy and rewarding the diligent, encouraging creation, and increasing profit”. It establishes vocational
promotion channel of five sequences, conducts comprehensive review for technological, technical and
technological talents of different level according to ratio, meets the development needs of the Company and
individual, improves core competitiveness of the Company and individual, guides employee to focus on individual
technique increase and ability improvement. In the meantime, it strengthens recruitment of mature talent from the
labor market as a way to bring fresh impetus to the development of the Company.
2. Significant Change to Principal Activities in the Reporting Period
□ Yes √ No
3. Product Category Contributing over 10% of Principal Business Revenue or Profit
√ Applicable □ Not applicable
Unit: RMB
YoY change in YoY change in YoY change in
Operating Gross profit
Product category Operating profit operating revenue operating profit gross profit
revenue margin
(%) (%) margin (%)
Ivory board 3,265,693,118.99 235,684,000.23 7.22% 10.77% 57.54% 2.14%
Presswork 302,420,890.22 75,252,255.78 24.88% 0.72% 12.84% 2.67%
Latex 316,634,636.91 74,057,245.16 23.39% -7.01% -9.78% -0.72%
4. Business Seasonality to which Special Attention should Be Paid
□ Yes √ No
5. Significant YoY Changes in Operating Revenue, Cost of Sales and Net Profit Attributable to the Listed
Company’s Ordinary Shareholders or Their Compositions
□ Applicable √ Not applicable
6. Possibility of Listing Suspension or Termination
□ Applicable √ Not applicable
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Foshan Huaxin Packaging Co., Ltd. Annual Report 2019 (Summary)
7. Matters Related to Financial Reporting
(1) YoY Changes to Accounting Policies, Accounting Estimates or Measurement Methods
√ Applicable □ Not applicable
1. Changes to accounting policies due to changes of Accounting Standards for Business Enterprises
(1) The Company prepared 2019 Financial Statements in accordance with the Notice on Revising and Printing the
Format of 2019 General Enterprises Financial Statement (CK [2019] No. 6), the Notice on Revising and Printing the
Format of Consolidated Financial Statements (2019) (CK [2019] No. 16) issued by the Ministry of Finance and the
requirements of the Accounting Standards for Business Enterprises. Retroactive adjustment was adopted for the
changes in the accounting policy. The significantly affected items and amounts in 2018 Financial Statements are as
follows:
Unit: RMB
Item and amount in original financial statement Item and amount in new financial statement
Notes receivable and accounts 1,058,839,572.02 Notes receivable 277,623,928.13
receivable Accounts receivable 781,215,643.89
Notes payable and accounts 775,243,787.56 Notes payable 310,600,000.00
payable Accounts payable 464,643,787.56
(2) The Company starts to implement the Accounting Standards for Business Enterprises No.22-Recognition and
Measurement of Financial Instruments, Accounting Standards for Business Enterprises No. 23-Transfer of
Financial Assets, Accounting Standards for Business Enterprises No. 24-Hedging and Accounting Standards for
Business Enterprises No.37-Presentation of Financial Instruments (hereinafter referred to as the new standards
governing financial instruments) revised by the Ministry of Finance. As required by the connection regulation for
the old and new standards, the information of comparative period was not adjusted, and the beginning retained
earnings or other comprehensive income of the Reporting Period shall be retroactively adjusted for the difference
between the original standards and the new one when implemented on the first execution date.
The new standards governing financial instruments change the classification and measurement method for
financial assets and confirm three major measurement categories: amortized cost, measured at fair value through
other comprehensive income, measured at fair value through profit or loss. The Company conducts the above
classification after considering its business model and characteristics of contractual cash flow for financial assets.
In addition, equity investments shall be measured at fair value through profit or loss, and it can be measured at fair
value through other comprehensive income (the disposal profits or losses can not be reversed into the profit or loss
but the dividends income shall be recorded into the current profit or loss) when initially recognized which is
irrevocable once chosen.
The new standards governing financial instruments require that the measurement of financial assets impairment
shall be changed into the expected credit loss model from the incurred loss model which applies to financial assets
measured at amortized cost, financial assets at fair value through other comprehensive income and leasing
receivables.
1) The main influence on the Company’s financial statements on 1 January 2019 by the implementation of new
standards governing financial instruments is as follows:
Unit: RMB
Item Balance sheet
31 December 2018 Influence 1 January 2019
Available-for-sale financial 288,700.00 -288,700.00
assets
Other non-current financial 288,700.00 288,700.00
assets
Notes receivable 277,623,928.13 -271,186,964.94 6,436,963.19
Accounts receivable 271,186,964.94 271,186,964.94
financing
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Foshan Huaxin Packaging Co., Ltd. Annual Report 2019 (Summary)
Other receivables 26,332,955.74 -7,800,232.76 18,532,722.98
Other current assets 338,311,849.45 7,800,232.76 346,112,082.21
Short-term borrowings 862,776,823.86 1,841,377.53 864,618,201.39
Other payables 179,737,877.39 -2,296,308.09 177,441,569.30
Current portion of 200,000,000.00 454,930.56 200,454,930.56
non-current liabilities
2) The comparison result of financial assets and financial liabilities of the Company respectively classified and
measured according to the new standards governing financial instruments and the original one on 1 January
2019,is as follows:
Unit: RMB
Item Original standards governing financial New standards governing financial
instruments instruments
Item Carrying value Item Carrying value
Monetary assets Loans and accounts 133,983,939.73 Financial assets 133,983,939.73
receivable measured at amortized
cost
Notes receivable Loans and accounts 6,436,963.19 Financial assets 6,436,963.19
receivable measured at amortized
cost
Notes receivable Loans and accounts 271,186,964.94 Financial assets at fair 271,186,964.94
receivable value through other
comprehensive income
(note: accounts
receivable financing)
Accounts receivable Loans and accounts 781,215,643.89 Financial assets 781,215,643.89
receivable measured at amortized
cost
Other receivables Loans and accounts 18,532,722.98 Financial assets 18,532,722.98
receivable measured at amortized
cost
Other receivables Loans and accounts 7,800,232.76 Financial assets at 7,800,232.76
receivable amortized cost (note:
other current
assets-interest
receivable)
Other current Available-for-sale 317,200,000.00 Measured at fair value 317,200,000.00
assets-structured financial assets through profit or loss
deposits
Available-for-sale Available-for-sale 288,700.00 Measured at fair value 288,700.00
financial assets financial assets through profit or loss
(note: other
non-current financial
assets)
Notes payable Other financial 310,600,000.00 Financial liabilities 310,600,000.00
liabilities measured at amortized
cost
Accounts payable Other financial 464,643,787.56 Financial liabilities 464,643,787.56
liabilities measured at amortized
cost
Other payables Other financial 177,441,569.30 Financial liabilities 177,441,569.30
liabilities measured at amortized
cost
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Foshan Huaxin Packaging Co., Ltd. Annual Report 2019 (Summary)
Financial liabilities
Other financial 1,841,377.53 measured at amortized 1,841,377.53
Other payables
liabilities cost (note: short-term
borrowings)
Financial liabilities
measured at amortized
Other financial 454,930.56 454,930.56
Other payables cost (note: current
liabilities
portion of non-current
liabilities)
Financial liabilities
Other financial 862,776,823.86 862,776,823.86
Short-term borrowings measured at amortized
liabilities
cost
Financial liabilities
Current portion of Other financial 200,000,000.00 200,000,000.00
measured at amortized
non-current liabilities liabilities
cost
Financial liabilities
Other financial 100,000,000.00 100,000,000.00
Long-term borrowings measured at amortized
liabilities
cost
3) The reconciliation statement of the Company’s original financial assets and liabilities in carrying value after
reclassified and remeasured as new financial assets and liabilities according to new standards governing financial
instruments on 1 January 2019, is as follows:
Unit: RMB
Item Carrying value Reclassified Remeasure Carrying value presented
presented according d according to new financial
to original financial instruments standards
instruments standards (1 January 2019)
(31 December 2018)
A. Financial assets
a. Amortized cost
Monetary assets 133,983,939.73 133,983,939.73
Notes receivable
Balance listed
according to the
original accounting 277,623,928.13
standards governing
financial instruments
Less: transferred to
those at fair value
through other
comprehensive -271,186,964.94
income (new
accounting standards
governing financial
instruments)
Balance listed
according to the new
accounting standards 6,436,963.19
governing financial
instruments
Accounts receivable
Balance listed
according to the 781,215,643.89 781,215,643.89
original accounting
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Foshan Huaxin Packaging Co., Ltd. Annual Report 2019 (Summary)
standards governing
financial instruments
and balance listed
according to the new
accounting standards
governing financial
instruments
Other receivables
Balance listed
according to the
original accounting
standards governing
financial instruments 26,332,955.74 -7,800,232.76 18,532,722.98
and balance listed
according to the new
accounting standards
governing financial
instruments
Other current
assets-interest
receivable
Balance listed
according to the
original accounting
standards governing
financial instruments 7,800,232.76 7,800,232.76
and balance listed
according to the new
accounting standards
governing financial
instruments
Total financial assets
1,219,156,467.49 -277,623,928.13 947,969,502.55
at amortized cost
b. At fair value through profit or loss
Other current
assets-structural
deposits
Balance listed
according to the
original accounting
standards governing
financial instruments 317,200,000.00 317,200,000.00
and balance listed
according to the new
accounting standards
governing financial
instruments
Available-for-sale
financial assets
Balance listed
according to the
original accounting 288,700.00
standards governing
financial instruments
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Foshan Huaxin Packaging Co., Ltd. Annual Report 2019 (Summary)
Less: transferred to
those at fair value
through other
comprehensive -288,700.00
income (new
accounting standards
governing financial
instruments)
Balance listed
according to the new
accounting standards
governing financial
instruments
Other non-current
financial assets
Balance listed
according to the
original accounting
standards governing
financial instruments
Add: transferred
from
available-for-sale
financial assets 288,700.00
(original accounting
standards governing
financial
instruments)
Balance listed
according to the new
accounting standards 288,700.00
governing financial
instruments
Total financial assets
at fair value through 317,488,700.00 317,488,700.00
profit or loss
c. At fair value through other comprehensive income
Accounts receivable
271,186,964.94 271,186,964.94
financing
Total financial assets
at fair value through
271,186,964.94 271,186,964.94
other comprehensive
income
B. Financial liabilities
a. Amortized cost
Notes payable
Balance listed
according to the 310,600,000.00 310,600,000.00
original accounting
standards governing
14
Foshan Huaxin Packaging Co., Ltd. Annual Report 2019 (Summary)
financial instruments
and balance listed
according to the new
accounting standards
governing financial
instruments
Accounts payables
Balance listed
according to the
original accounting
standards governing
financial instruments 464,643,787.56 464,643,787.56
and balance listed
according to the new
accounting standards
governing financial
instruments
Other payables
Balance listed
according to the
original accounting
standards governing
financial instruments 179,737,877.39 -2,296,308.09 177,441,569.30
and balance listed
according to the new
accounting standards
governing financial
instruments
Short-term
borrowings
Balance listed
according to the
original accounting
standards governing
financial instruments 862,776,823.86 1,841,377.53 864,618,201.39
and balance listed
according to the new
accounting standards
governing financial
instruments
Current portion of
non-current liabilities
Balance listed
according to the
original accounting
standards governing
financial instruments 200,000,000.00 454,930.56 200,454,930.56
and balance listed
according to the new
accounting standards
governing financial
instruments
Long-term
borrowings
15
Foshan Huaxin Packaging Co., Ltd. Annual Report 2019 (Summary)
Balance listed
according to the
original accounting
standards governing
financial instruments 100,000,000.00 100,000,000.00
and balance listed
according to the new
accounting standards
governing financial
instruments
Total financial
liabilities at 2,117,758,488.81 2,117,758,488.81
amortized cost
4) The reconciliation statement of adjusting the Company’s original ending balance of allowance for impairments
of financial assets into new allowance for impairments classified and measured as required by new standards
governing financial instruments is as follows:
Unit: RMB
Item Allowance for impairments Reclassified Remeasured Allowance for
according to original standards impairments withdrawn
governing financial according to new
instruments/provisions standards governing
recognized according to financial instruments
standards for contingency (31 (1 January 2019)
December 2018)
Accounts receivable 46,825,123.33 46,825,123.33
Other receivables 26,857,989.24 26,857,989.24
The Company starts to implement the revised Accounting Standards for Business Enterprises No.7-Exchange of
Non-monetary assets since 10 June 2019 and starts to the revised Accounting Standards for Business Enterprises
No. 12-Debt Restructuring since 17 June 2019. This change of accounting policy is treated with prospective
application method.
(2) Retrospective Restatements due to Correction of Material Accounting Errors in the Reporting Period
□ Applicable √ Not applicable
No such cases.
(3) YoY Changes to the Scope of Consolidated Financial Statements
√ Applicable □ Not applicable
Zhejiang Hongta Renheng Packaging Technology Co., Ltd. has been liquidated and de-registered during the Reporting Period, and
has thus no longer been included in the consolidated financial statements.
16
