I Important Notice, Table of Contents and Definitions
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 the contents of the interim report (the “Report”), guarantee that there are no false representations,
misleading statements or material omissions contained in this Report, and are jointly and severally responsible for the liabilities of
the Company.
All Directors were present in person at the Board meeting to consider and approve this Report.
The Company does not propose distribution of cash dividends or bonus shares, and there will be no increase of share capital from
reserves.
Chen Hongguo, head of the Company, Dong Lianming, head in charge of accounting and Liang Tingkun, head of the accounting
department (Accounting Officer), declare that they warrant the truthfulness, accuracy and completeness of the financial statements
in the interim report.
The Company is exposed to various risk factors such as macro-economic fluctuation, adjustment of state policy, intensified
competition in the industry, as well as change in exchange rate. Investor should be aware of investment risks. For further details,
please refer to the risk factors likely to be faced and the measures to be taken as set out in the outlook on the future development of
the Company in the Directors’ Report.
INTERIM
REPORT
SHANDONG CHENMING PAPER HOLDINGS LIMITED
I Important Notice, Table of Contents and Definitions
Table of contents
I Important Notice, Table of Contents and Definitions 3
II Company Profile
III Summary of Accounting Data and Financial Indicators 5
IV Directors’ Report
V Material Matters
VI Changes in Share Capital and Shareholders
VII Preference Shares
VIII Directors, Supervisors and Senior Management
IX Financial Report
X Documents Available for Inspection
15
INTERIM
REPORT
2 SHANDONG CHENMING PAPER HOLDINGS LIMITED
I Important Notice, Table of Contents and Definitions
Definitions
Item means Definition
Company or Chenming Paper means Shandong Chenming Paper Holdings Limited
Group means Shandong Chenming Paper Holdings Limited and its subsidiaries
Chenming Holdings means Shouguang Chenming Holdings Company Limited
Shenzhen Stock Exchange means Shenzhen Stock Exchange
Stock Exchange means The Stock Exchange of Hong Kong Limited
CSRC means China Securities Regulatory Commission
Shandong CSRC means Shandong branch of China Securities Regulatory Commission
Zhanjiang Chenming means Zhanjiang Chenming Pulp & Paper Co., Ltd.
Jiangxi Chenming means Jiangxi Chenming Paper Co., Ltd.
Wuhan Chenming means Wuhan Chenming Hanyang Paper Holdings Co., Ltd.
Chenming (HK) means Chenming (HK) Limited
Jilin Chenming means Jilin Chenming Paper Co., Ltd.
Shouguang Meilun means Shouguang Meilun Paper Co., Ltd.
INTERIM
Chenming Sales Company means Shandong Chenming Paper Sales Company Limited REPORT
Finance Company means Shandong Chenming Group Finance Co., Ltd.
Financial Leasing Company means Shandong Chenming Financial Leasing Co., Ltd.
Investment Company means Shandong Chenming Investment Limited
New Third Board Investment Fund means Zhuhai Dechen New Third Board Equity Investment Fund Company (Limited
Partnership)
reporting period means The period from 1 January 2015 to 30 June 2015
SHANDONG CHENMING PAPER HOLDINGS LIMITED
II Company Profile
I. Company profile
Stock abbreviation Stock Code
Stock abbreviation B Stock Code
Stock abbreviation Chenming Paper Stock Code
Stock exchanges on which the shares are listed Shenzhen Stock Exchange and The Stock Exchange of Hong Kong
Limited
Legal name in Chinese of the Company
Legal short name in Chinese of the Company (if any)
Legal name in English of the Company (if any) SHANDONG CHENMING PAPER HOLDINGS LIMITED
Legal short name in English of the Company (if any) SCPH
Legal representative of the Company Chen Hongguo
II. Contact persons and contact methods
Securities Affairs
Secretary to the Board Representative Hong Kong Company Secretary
Name Wang Chunfang Xiao Peng Poon Shiu Cheong
Correspondence No. 2199 East Nongsheng Road, No. 2199 East Nongsheng Road, 22nd Floor, World Wide House,
Address Shouguang City, Shouguang City, Central, Hong Kong
Shandong Province Shandong Province
Telephone (86)-0536-2158008 (86)-0536-2158008 (852)-2501 0088
Facsimile (86)-0536-2158977 (86)-0536-2158977 (852)-2501 0028
Email address chenmmingpaper@163.com chenmmingpaper@163.com kentpoon_1009@yahoo.com.hk
15
INTERIM III. Other information
REPORT
1. Contact methods of the Company
Whether the registered address, office address, postal code, website, email of the Company changed during the
reporting period
Applicable √ Not applicable
There was no change of the registered address, office address, postal code, website and email of the Company during
the reporting period. Please refer to 2014 Annual Report for details.
2. Information disclosure and places for inspection
Whether the information disclosure and places for inspection changed during the reporting period
Applicable √ Not applicable
There was no change of the newspapers designated by the Company for information disclosure, designated websites
for the publication of the Interim Report as approved by CSRC and places for inspection of the Company’s Interim
Report during the reporting period. Please refer to 2014 Annual Report for details.
3. Change of registration information
Whether the registration information changed during the reporting period
Applicable √ Not applicable
There was no change of the registration information of the Company, such as date and address of registration, legal
person business license registration number, taxation registration number and organisation code, during the reporting
period. Please refer to 2014 Annual Report for details.
4 SHANDONG CHENMING PAPER HOLDINGS LIMITED
III Summary of Accounting Data and Financial Indicators
I. Major accounting data and financial indicators
Retrospective adjustment to or restatement of the accounting data for prior years by the Company due to change of
accounting policies and correction of accounting errors
Yes √ No
Increase/decrease
for the reporting
period as
compared to the
The corresponding corresponding
The reporting period of period of
period the prior year the prior year
Revenue (RMB) 9,718,697,677.76 9,082,020,579.01 7.01%
Net profit attributable to shareholders
of the Company (RMB) 276,388,070.51 242,461,095.02 13.99%
Net profit after extraordinary gains or losses attributable
to shareholders of the Company (RMB) 174,462,219.94 57,813,473.27 201.77%
Net cash flows from operating activities (RMB) -2,222,755,634.73 1,285,696,261.13 -272.88%
Basic earnings per share (RMB per share) 0.14 0.12 16.67%
Diluted earnings per share (RMB per share) 0.14 0.12 16.67%
Rate of return on net assets on weighted average basis 1.97% 1.72% 0.25%
Increase/decrease
as at the end 15
of the reporting INTERIM
REPORT
As at the end period as compared
of the As at the end of to the end
reporting period the prior year of the prior year
Total assets (RMB) 63,749,809,197.37 56,822,026,545.21 12.19%
Net assets attributable to shareholders
of the Company (RMB) 13,938,653,299.56 13,917,343,301.15 0.15%
SHANDONG CHENMING PAPER HOLDINGS LIMITED
III Summary of Accounting Data and Financial Indicators
II. Differences in accounting data under domestic and overseas accounting standards
1. Differences between the net profit and net assets disclosed in accordance with international accounting standards and
China accounting standards in the financial report
Applicable √ Not applicable
There was no difference between the net profit and net assets disclosed in accordance with international accounting
standards and China accounting standards in the financial report during the reporting period.
2. Differences between the net profit and net assets disclosed in accordance with overseas accounting standards and
China accounting standards in the financial report
Applicable √ Not applicable
There was no difference between the net profit and net assets disclosed in accordance with overseas accounting
standards and China accounting standards in the financial report during the reporting period.
III. Items and amounts of extraordinary gains or losses
√ Applicable Not applicable
Unit: RMB
Item Amount Explanation
15 Profit or loss from disposal of non-current assets
Government grants (except for the government grants
4,358,929.60
INTERIM
REPORT 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 58,824,671.63
Profit or loss from debt restructuring 23,308.47
Profit or loss arising from external entrusted loans 48,777,777.77
Gain or loss from changes in fair value of consumable
biological assets subsequently measured at fair value -2,177,906.88
Non-operating gains and losses other than the above items 8,552,098.95
Less: Effect of income tax 16,531,107.30
Effect of minority interests -98,078.33
Total 101,925,850.57
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.
6 SHANDONG CHENMING PAPER HOLDINGS LIMITED
IV Directors’ Report
I. Overview
In the first half of 2015, there had been downward pressure in China’s macro-economy with a slowdown in growth rate.
However, there was steady progress in new directions amid the sluggishness and the overall economy was maintained
at a stable upward trend. The paper making industry remained in the stage of eliminating outdated production capacity
and adjusting the product mix, and prices of paper products hovered at a low level facing the imbalanced supply and
demand during the first half of the year. However, the supply and demand fundamentals was improving with prices of raw
materials stabilising, which, in addition to the more stringent environmental protection policies and moderating outdated
capacity elimination and new capacity, will likely bring a turnaround to the performance of the industry on the back of further
concentration and new growth points resulting from business transformation in the long run.
In 2015, the Company has been actively adjusting to the “new normal” economic development by accelerating transformation
and upgrade and enhancing operation quality. During the reporting period, the Company consistently implemented the
working principles of “Team Building, Strict Management, Outstanding Business Performance, Achieving Good Results” with
focus on basic and team building and reorganising systems to enhance execution. It elevated its human resources structure
and thus its teams through work report and performance assessment. It also strengthened risk control and overseas sales
management and reduced outstanding receivables to enhance management over key operations areas.
During the reporting period, the Company implemented good progress control over projects. Jiangxi Chenming’s 350,000
tonne high end packaging paper project would come into trial operation. These projects coming in stream speeded up the
Company’s restructuring and transformation. Shouguang Chenming railroad extension formally opened, enabling further
reduction of procurement costs by allowing upstream bulk procurement. Zhanjiang Chenming’s Biomass vaporisation project,
which significantly lowered production costs as well as pollutant emission through the advanced circulating fluidised bed
boiler technology, was completed. Those projects under construction, namely Huanggang Chenming’s integrated forestry,
pulp and paper project, Shouguang’s 400,000 tonne chemical pulp project, Haicheng Haiming’s magnesite mining project,
Guangdong Huirui’s Haidong New District Waterfront comprehensive regulation works and property development project
INTERIM
of Wan Xing Real Estate in Wuhan, are steadily carried out according to plan and have made substantial progress, further REPORT
enhancing the overall competitiveness of the Company.
During the reporting period, the Company also diversified into the financial segment. By virtue of strong capital support of
the Group, the Financial Leasing Company made good use of the international and market-oriented edge inherent in a listed
company and spread its coverage nationwide. It not only achieved higher financing efficiency in internal services, but also had
