Shangdong Chenming Paper Holdings Limited
SHANDONG CHENMING PAPER HOLDINGS LIMITED
Shangdong Chenming Paper Holdings Limited2019
Third Quarterly Report
SHANDONG CHENMING PAPER HOLDINGS LIMITED
9 Third Quarterly Report
October 2019
Third Quarterly Report
SHANDONG CHENMING PAPER HOLDINGS LIMITED
*
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”) ofthe Company hereby warrant the truthfulness, accuracy and completeness ofthis quarterly report which does not contain false representations, misleadingstatements or material omissions, and severally and jointly accept legalresponsibility for its contents.All Directors were present at the Board meeting to consider and approvethis quarterly report.Chen Hongguo, the head of the Company, Dong Lianming, the head incharge of accounting, and Zhang Bo, the head of the accounting department(Accounting Officer), declare that they warrant the truthfulness, accuracy andcompleteness of the financial statements in this quarterly report.
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly ReportII
General Information of the Company
I. Major accounting data and financial indicatorsRetrospective adjustment to or restatement of the accounting data for prior years by the Company□
Yes √ No
As at the end ofthe reportingperiod
As at the end of the prior
year
Increase / decreaseas at the end of thereporting period ascompared tothe end of
prioryearTotal assets (RMB)
104,117,892,347.23105,318,734,827.82-1.14%
theNet assets attributable to shareholdersof the Company (RMB)
24,484,857,440.7725,048,731,454.79-2.25%
The reportingperiod
Increase/decreasecompared to the
correspondingperiod of the
| Net assets attributable to shareholders of the Company (RMB) | ||
| prior |
year
The period from
the beginning of
of the
reportingperiod
Increase/decreasefor theperiod
| the year to the end | from the beginning |
of theyear to the endofthe reporting period as
compared to the
correspondingperiod ofthe
prior year
Revenue (RMB)
8,665,530,249.94
22,014,178,363.64-6.29%
| 9.12% | ||
| Net profit attributable to shareholders |
of the Company (RMB)
557,960,253.43-
1,067,755,825.72-
| 19.89% | 56.97% | |||
| Net profit after extraordinary gains or |
losses attributable to shareholders ofthe Company (RMB)
447,511,508.11-
750,656,504.32-
| 30.70% | 65.62% | |||
| Net cash |
flows from operatingactivities (RMB)
--
6,499,224,141.50-
| -- | 28.37% |
Basic earnings per share (RMB pershare)
0.14-
0.15-
| 22.22% | 72.22% | |||
| Diluted earnings per share (RMB per |
share)
0.14-
0.15-
| 22.22% | 72.22% |
Rate of return on net assets onweighted average basis
2.26%-
2.47%-6.29%
Explanation:
Net profit attributable to shareholders of the Company does not exclude the effect of the interest ofperpetual bonds and the dividends of preference shares paid and declared to be paid. When calculatingfinancial indicators such as earnings per share and the rate of return on net assets on weighted average basis,the interest for perpetual bonds from 1 January 2019 to 30 September 2019 of RMB145,101,369.86 and thedividend on preference shares paid in 2019 of RMB493,494,767.52 are deducted.
Items and amounts of extraordinary gains or losses√Applicable□Not applicable
Unit: RMB
Item
Amount for the period fromthe beginning of the year to
the end of the reporting
period
ExplanationProfit or loss from disposal of non-
| current assets (including |
write-off of asset impairment provision) 152,787,688.63
constantly at a fixed amount or qua
| ntity in accordance with a certain standard based on state policies) accounted for in |
profit or loss for the current period
243,404,400.04
-operating gains and losses other than the above items
10,767,741.03
Gain or loss from changes in fair value
biological assets subsequently measured at fair value -1,883,064.80Less: Effect of income tax 86,364,950.62 Effect of minority interests (after tax) 1,612,492.88
Total 317,099,321.40—For the Company’s extraordinary gain or loss items as defined in the Explanatory Announcement onInformation Disclosure for Companies Offering Their Securities to the Public No.1 － Extraordinary Gains orLosses and the extraordinary gain or loss items as illustrated in the Explanatory Announcement on InformationDisclosure for Companies Offering Their Securities to the Public No.1 － Extraordinary Gains or Lossesdefined as its recurring gain or loss items.
□
Applicable √ Not applicableNo extraordinary gain or loss items as defined or illustrated in the Explanatory Announcement on InformationDisclosure for Companies Offering Their Securities to the Public No.1 － Extraordinary Gains or Losses weredefined by the Company as its recurring gain or loss items during the reporting period.II.
Total number of shareholders and shareholdings of the top ten shareholders as at theend of the reporting period
1.
Total number of shareholders of ordinary shares and shareholders of preference shares withrestored voting rights and the shareholding of the top ten shareholders
Unit: share
Total number of shareholders ofordinary shares as at the end of thereporting period holders of H shares
of consumable
127,898, of which 107,553 were
of A shares, 19,975 were holders of Bshares and 370 were holders of H shares
Total number of shareholders ofpreference shares with restoredvoting right as at the end of thereporting period (if any)
Shareholding of top 10 shareholders
Name of shareholders
Nature ofshareholders
| Percentage of |
shareholding
Number ofshares held
Number ofrestrictedshares held
| Share pledged or locked | |
-up
Status ofshares
NumberCHENMIN GHOLDINGS COMPANYLIMITED
State-ownedlegal person
15.33%445,396,128
0Pledged
354,643,395HKSCC NOMINEES LIMITED
Overseaslegal person
12.84%373,065,875
CHENMING HOLDINGS(HONG KONG) LIMITED
Overseaslegal person
12.54%364,131,563
CENTRAL HUIJIN ASSETMANAGEMENT LTD.
State-ownedlegal person
2.07%60,206,850
AGRICULTURAL BANK OF CHINALIMITED – CHINA SECURITIES 500INDEX ETF SECURITIESINVESTMENT FUND
Others
0.50%14,435,450
VANGUARD EMERGINGMARKETS STOCK INDEX FUND
Overseaslegal person
0.44%12,912,357
VANGUARD TOTALINTERNATIONAL STOCK INDEXFUND
Overseaslegal person
0.42%12,233,170
CHEN Hongguo
Domesticnature person
0.38%11,080,044
8,310,033
CHEN Suiqiang (陳穗強)
Domesticnature person
0.38%11,010,200
JIN Xing
Domesticnature person
0.34%9,917,002
Shareholding of the top ten shareholders of non-restricted sharesName of shareholders
Number of
non-restrictedsharesheld
Class of sharesClass of shares NumberCHENMING HOLDINGS COMPANY LIMITED445,396,128RMB ordinary shares445,396,128HKSCC NOMINEES LIMITED373,065,875Overseas listed foreign shares373,065,875CHENMING HOLDINGS (HONG KONG)LIMITED
364,131,563
Domestic listed foreign shares210,717,563Overseas listed foreign shares153,414,000
60,206,850RMB ordinary shares60,206,850AGRICULTURAL BANK OF CHINA LIMITED –CHINA SECURITIES 500 INDEX ETFSECURITIES INVESTMENT FUND
14,435,450RMB ordinary shares14,435,450VANGUARD EMERGING MARKETS STOCKINDEX FUND
12,912,357
Domestic listed foreign shares
12,912,357VANGUARD TOTAL INTERNATIONAL STOCKINDEX FUND
12,233,170Domestic listed foreign shares12,233,170Chen Suiqiang (陳穗強)
11,010,200
RMB ordinary shares
11,010,200
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly ReportJIN Xing
9,917,002
Domestic listed foreign shares
9,917,002LSV EMERGING MARKETS EQUITY FUND,L.P.
9,154,200Domestic listed foreign shares9,154,200
| Related party relationship or acting in concert among | |
the above shareholders
Chenming Holdings (Hong Kong) Limited, an overseas legal person shareholder, is awholly-owned subsidiary of Chenming Holdings Company Limited, which is a state-
legal person shareholder. Hence they are persons acting in concert under AdministrationMeasure on Disclosure of Information on the Change of Shareholding in Listed Companies
(上市公司股東持股變動信息披露管理辦法). A
representative, chairman and general manager of Chenming Holdings Company Limited.
| Save for the above, it is not aware that any other shareholders of tradable shares are persons |
acting in concert and it is also not aware that any other shareholders of tradable shares arerelated to each other.Securities margin tradingof top 10 ordinaryshareholders (if any)
Chenming Holdings Company Limited holds 445,396,128 RMB ordinary shares
402,196,128 shares are held through ordinary account and 43,200,000 shares are heldthrough credit guarantee securities accounts;Chen Suiqiang (陳穗強) holds 11,010,200 RMB ordinary shares, of which 0
| shares are held |
through ordinary account and 11,010,200 shares are held through cre
accounts.Whether an agreed repurchase transaction was entered into during the reporting period by the top 10 ordinaryshareholders and top 10 shareholders of non-restricted shares of the Company□
Yes √ NoThe top 10 ordinary shareholders and top 10 shareholders of non-restricted ordinary shares of the Company didnot 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 ofpreference shares√Applicable□Not applicable
Unit: share
Total number of shareholders of preference shares as at the end of the reportingperiod
dit guarantee securities
Shareholding of the top ten shareholders of preference sharesName of shareholders
Nature ofshareholders
Percentage of share
holding
Number ofshares held
Number ofrestrictedshares held
Share pledged orlocked-up
shares
Number
BEIJING YIBEN ZHONGXINGINVESTMENT MANAGEMENTCO., LTD.
Domestic
non-state-ownedlegal person
27.78%
| 12,500,000 | 0 |
Pledged
12,500,000BANK OF COMMUNICATIONSINTERNATIONAL TRUST CO.,LTD. –HUILI NO.167 SINGLECAPITAL TRUST
Others 22.44%
| 10,100,000 | 0 |
BANK OF COMMUNICATIONSINTERNATIONAL TRUST CO.,LTD. – HUILI NO.136 SINGLE
Others 14.22%
| 6,400,000 | 0 |
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly ReportCAPITAL TRUSTQILU BANK CO., LTD. – QILUBANK QUANXIN WEALTHMANAGEMENT PRODUCTSERIES
Others 13.33%
| 6,000,000 | 0 |
HENGFENG BANK CO., LTD.
Domesticnon-state-ownedlegal person
11.11%
| 5,000,000 | 0 |
SHANGHAI STATE-OWNEDASSETS OPERATION CO., LTD.
State-ownedlegal person
6.67%
| 3,000,000 | 0 |
– MINSHENG BANK –CHINA FORTUNEINTERNATIONAL TRUST –CHINA FORTUNE TRUST?MINXIN NO. 11 SINGLE CAPITALTRUST
Others 4.44%
| NCF | 2,000,000 | 0 |
Related party relationship or actingin concert among the aboveshareholders
Shareholders of preference shares, namely “BANK OF COMMUNICATIONSINTERNATIONAL TRUST CO., LTD. – HUILI NO.167 SINGLE CAPITALTRUST” and “BANK OF COMMUNICATIONS INTERNATIONAL TRUSTCO., LTD. – HUILI NO.136 SINGLE CAPITAL TRUST”, are persons ac
concert. Save for the above, it is not aware that any other shareholders ofpreference shares are persons acting in concert and it is also not aware that anyother shareholders of preference shares are related to each other.
III Material Matters
I.
Details of changes in major financial data and financial indicators during thereporting period and reasons thereof√Applicable□Not applicable(I)
Analysis of the assets and liabilities of the Company
Unit: RMB
Item
30 September2019
31 December 2018
Change
Reason for
changeBills receivable 783,620,411.851,213,116,491.46-35.40%（1）
-current assets due within one year 5,671,647,640.064,007,503,281.8641.53%（2）Long-term receivables 3,877,741,117.947,926,610,770.86-51.08%（3）Other non-current financial assets 763,160,000.00103,000,000.00640.93%（4）
NonBills payable
2,271,206,630.234,218,969,554.93-46.17%（5）Contract liabilities 1,078,697,907.67419,540,133.74157.11%（6）Other payables 2,627,180,153.421,777,718,017.4847.78%（7）
Bills payableOther current liabilities
930,173,869.452,816,956,481.68-66.98%（8）
| Other current liabilities |
| Other non |
-current liabilities3,043,787,568.442,047,948,069.7348.63%（9）Explanation of the reasons leading to the major changes:
(1)
Bills receivable decreased by 35.40% as compared to the beginning of the year mainly due to theCompany’s increased payment by bills resulting in decreased subsisting bills.(2)
Non-current assets due within one year increased by 41.53% as compared to the beginning of the yearmainly due to increased payments for financing lease due within one year.(3)
Long-term receivables decreased by 51.08% as compared to the beginning of the year mainly due toreduced size of financing lease business of the Company.(4)
Other non-current financial assets increased by 640.93% as compared to the beginning of the year mainlydue to the Company’s increased investment of RMB662 million in Guangdong Nanyue Bank during thereporting period.(5)
Bill receivables decreased by 46.17% as compared to the beginning of the year mainly due to decreasedpayment for goods by bills subsisting at the end of the reporting period.(6)
Contract liabilities increased by 157.11% as compared to the beginning of the year mainly due to increasedreceipt of prepayment by the Company during the reporting period.
(7)
Other payables increased by 47.78% as compared to the beginning of the year mainly due to theCompany’s increase in borrowings from its controlling shareholder Chenming Holdings Company
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly ReportLimited during the reporting period.(8)
Other current liabilities decreased by 66.98% as compared to the beginning of the year mainly due to theCompany’s repayment of part of the short-term commercial paper falling due during the reporting period.
(9)
Other non-current liabilities increased by 48.63% as compared to the beginning of the year mainly due tothe Company’s issue of RMB1.2 billion medium-term notes during the reporting period.
(II)
Reasons for significant year-on-year changes of income statement items
Unit: RMB
Item
January - September
2019
January - September
2018
Change
Reason forchangeInterest income304,096,729.01
26.39%
（1）Loss on impairment of credit-261,549,886.93-
| 240,596,355.69 |
| 183,525,156.37 |
42.51%
（2）Non-operating income268,505,785.14
25.54%
（3）Income tax espenses286,659,474.62
| 213,875,626.25 |
| 553,555,763.61 |
-48.21%（4）
Explanation of the reasons leading to the major changes:
(1)
Interest income increased by 26.39% as compared to the corresponding period of last year mainly due tothe year-on-year increase in subsisting monetary funds during the reporting period.(2)
Loss on impairment of credit increased by 42.51% as compared to the corresponding period of last yearmainly due to the year-on-year increase in the Company’s impairment provision for accounts receivable.(3)
Non-operating income increased by 25.54% as compared to the corresponding period of last year mainlydue to increased government grants received by the Company during the reporting period(4)
Income tax expenses decreased by 48.21% as compared to the corresponding period of last year mainlydue to year-on-year decrease in profit recorded by the Company during the reporting period.
(III)
Analysis of cash flows during the reporting period
Unit: RMB
Item
January - September
201９
January - September
2018
Change
Reason for
change
| operating |
activities
6,499,224,141.50
-28.37%（1）
| 9,073,361,847.59 | ||
| Net cash flows from investment |
activities
-1,620,520,894.62-
34.56%
（2）
| 2,476,359,313.37 | ||
| Net cash flows from financing |
activities
-4,486,844,584.52-
10.06%
（3）
Explanation of the reasons leading to the major changes:
(1)
Net cash flows from operating activities decreased by 28.37% as compared to the corresponding period oflast year mainly due to year-on-year decrease in profit recorded by the Company during the reportingperiod.
(2)
Net cash flows from investing activities increased by 34.56% as compared to the corresponding period oflast year mainly due to year-on-year decrease in projects during the reporting period.(3)
Net cash flows from financing activities increased by 10.06% as compared to the corresponding period oflast year mainly due to year-on-year decrease in bonus distribution by the Company during the reportingperiod.II.
Analysis of and description on the progress of material matters, their impacts andsolutions□
Applicable √ Not applicableProgress of the implementation of share repurchase□
Applicable √ Not applicableProgress of the implementation of reduction of shares repurchased by way of centralized bidding□
Applicable √ Not applicableIII.
Undertakings made by parties involved in undertakings including the Company’sbeneficial controllers, shareholders, related parties, bidders and the Companysubsisting during the reporting period□
Applicable √ Not applicableDuring the reporting period, there were no undertakings made by parties involved in undertakingsincluding the Company’s beneficial controllers, shareholders, related parties, bidders and the Companysubsisting during the reporting period.IV.
Security investments□
Applicable √ Not applicableThe Company did not have any security investments during the reporting period.V.
Entrusted wealth management□
Applicable √ Not applicableThe Company did not have any entrusted wealth management during the reporting period.VI.
Derivative investments□
Applicable √ Not applicableThe Company did not have any derivative investments during the reporting period.VII.
Registration form for reception of research investigations, communications andinterviews during the reporting period
□
Applicable√
Not applicableNo research investigations, communications and interviews of the Company occurredduring the reporting period.VIII. External guarantees against rules and regulations
□Applicable √ Not applicableThere was no external guarantee provided by the Company which was against rules andregulations during the reporting period.VIII.
Appropriation of funds of the Company by the controlling shareholder and itsrelated parties for non-operating purposes□
Applicable √ Not applicableThere was no appropriation of funds of the Company by the controlling shareholder and itsrelated parties for non-operating purposes during the reporting period.
IV Financial Statements
I.
Financial Statements
1.
Consolidated balance sheet
Prepared by: Shandong Chenming Paper Holdings Limited
30 September 2019
Unit: RMB
Item 30 September 2019 31 December 2018CURRENT ASSETS：
Monetary funds 21,902,281,589.46
19,292,774,747.79
Bills receivable 783,620,411.85
1,213,116,491.46
Accounts receivable 3,568,511,583.34
3,404,487,004.59
Prepayments 668,903,792.02
863,739,020.74
Other receivables 2,832,210,651.42
2,133,089,983.39
Including: Interest receivable 152,432,010.49
198,577,632.43
Inventories 4,804,144,399.56
6,771,488,433.74
Non-current assets due within one year 5,671,647,640.06
4,007,503,281.86
Other current assets 9,122,121,778.38
10,281,312,825.13
Total current assets 49,353,441,846.09
47,967,511,788.70
NON-CURRENT ASSETS：
Long-term receivables 3,877,741,117.94
7,926,610,770.86
Long-term equity investments 631,018,808.70
484,674,282.77
Other non-current financial assets 763,160,000.00
103,000,000.00
Investment properties 4,693,663,472.02
4,844,993,039.62
Fixed assets 29,770,120,566.35
27,913,986,152.68
Construction in progress 9,792,251,992.31
11,871,350,821.55
right-of-use asset
Intangible assets 1,805,080,230.05
1,939,355,274.98
Goodwill 5,969,626.57
5,969,626.57
Long-term prepaid expenses 127,173,284.78
134,916,241.81
Deferred income tax assets 811,119,510.65
603,873,698.62
Other non-current assets 2,487,151,891.77
1,522,493,129.66
Total non-current assets 54,764,450,501.14
57,351,223,039.12
Total assets 104,117,892,347.23
105,318,734,827.82
CURRENT LIABILITIES：
Short-term borrowings 44,411,584,724.66
40,227,945,361.89
Bills payable 2,271,206,630.23
4,218,969,554.93
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly ReportAccounts payable 3,504,666,567.82
4,150,228,644.66
Staff remuneration payables 167,458,919.28
135,373,407.70
Taxes payable 414,935,438.62
451,651,198.64
Other payables 2,627,180,153.42
1,777,718,017.48
Including: Interest payable 152,427,875.76
226,788,777.59
Contract liabilities 1,078,697,907.67
419,540,133.74
Non-current liabilities due within one year 5,295,745,735.86
7,216,305,771.01
Other current liabilities 930,173,869.45
2,816,956,481.68
Total current liabilities 60,701,649,947.01
61,414,688,571.73
NON-CURRENT LIABILITIES：
Long-term borrowings 7,710,298,646.89
7,798,934,484.94
Bonds payable 2,143,362,700.00
2,097,562,500.00
Lease liability
Long-term payables 3,223,265,717.82
3,900,255,693.44
Provisions 325,259,082.28
325,259,082.28
Deferred income 1,788,699,616.43
1,862,395,197.61
Other non-current liabilities 3,043,787,568.44
2,047,948,069.73
Total non-current liabilities 18,234,673,331.86
18,032,355,028.00
TOTAL LIABILITIES 78,936,323,278.87
79,447,043,599.73
OWNERS’ EQUITY：
Share capital 2,904,608,200.00
2,904,608,200.00
Other equity instruments 7,465,500,000.00
7,465,500,000.00
Including: Preference shares 4,477,500,000.00
4,477,500,000.00
Perpetual bonds 2,988,000,000.00
2,988,000,000.00
Capital reserves 5,091,449,915.14
5,091,449,915.14
Other comprehensive income -983,549,285.23
-736,520,181.01
Special reserves
3,257,998.47
Surplus reserves 1,148,888,912.11
1,148,888,912.11
General risk reserves 64,123,919.23
64,123,919.23
Retained profit 8,793,835,779.52
9,107,422,690.85
Total equity attributable to equity holders of thecompany
24,484,857,440.77
25,048,731,454.79
Minority interest 696,711,627.59
822,959,773.30
Total owners’ equity 25,181,569,068.36
25,871,691,228.09
TOTAL LIABILITIES AND OWNERS’ EQUITY 104,117,892,347.23
105,318,734,827.82
Legal Representative:
Chen Hongguo
Head in charge of accounting:
Dong Lianming
Head of the accounting department:
Zhang Bo
2、Balance sheet of the Company
Unit: RMBItem 30 September 2019 31 December 2018CURRENT ASSETS:
Monetary funds 10,059,882,337.31
8,160,234,434.15
Bills receivable 110,992,047.81
436,662,187.80
Accounts receivable 214,885,021.93
1,349,276,965.04
Prepayments 1,229,473,417.10
1,584,388,551.00
Other receivables 12,993,562,279.42
19,405,314,961.24
Including: Interest receivable 77,237,795.30
77,257,506.25
Dividends receivable 23,353,000.00
Inventories 674,822,830.84
1,133,888,230.37
Other current assets 116,840,878.41
140,126,157.18
Total current assets 25,400,458,812.82
32,209,891,486.78
NON-CURRENT ASSETS:
Long-term receivables 499,325,607.06
516,925,607.06
Long-term equity investments 23,474,557,179.93
22,487,417,443.24
Investment in other equity instruments
3,000,000.00
Other non-current financial assets 104,000,000.00
103,000,000.00
Fixed assets 3,745,689,416.60
2,103,164,588.93
Construction in progress 560,423,045.57
2,014,493,138.68
right-of-use asset
Intangible assets 449,414,082.63
458,365,862.52
Deferred income tax assets 417,818,598.32
303,861,021.95
Other non-current assets 49,300,000.00
9,800,000.00
Total non-current assets 29,300,527,930.11
28,000,027,662.38
Total assets 54,700,986,742.93
60,209,919,149.16
CURRENT LIABILITIES:
Short-term borrowings 9,041,667,219.00
7,668,689,104.31
Bills payable 10,806,174,171.79
10,595,836,030.46
Accounts payable 1,071,011,265.11
722,999,244.33
Contract liabilities 3,239,026,611.09
3,299,778,982.47
Staff remuneration payables 66,714,895.93
53,899,651.15
Taxes payable 77,347,779.14
59,595,083.56
Other payables 3,022,054,639.84
5,465,488,890.52
Including: Interest payable 114,939,083.35
139,444,333.34
Non-current liabilities due within one year 2,885,129,810.97
3,256,715,148.39
Other current liabilities 1,860,519,444.45
3,527,956,481.68
Total current liabilities 32,069,645,837.32
34,650,958,616.87
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly ReportNON-CURRENT LIABILITIES:
Long-term borrowings 311,892,587.73
1,335,482,969.43
Bonds payable 988,035,000.00
2,097,562,500.00
Lease liability
Long-term payables 965,186,645.51
2,072,502,840.48
Provisions 325,259,082.28
325,259,082.28
Deferred income 43,156,133.95
46,412,014.99
Other non-current liabilities 2,787,883,339.67
1,592,166,670.00
Total non-current liabilities 5,421,412,789.14
7,469,386,077.18
TOTAL LIABILITIES 37,491,058,626.46
42,120,344,694.05
OWNERS’ EQUITY:
Share capital 2,904,608,200.00
2,904,608,200.00
Other equity instruments 7,465,500,000.00
7,465,500,000.00
Including: Preference shares 4,477,500,000.00
4,477,500,000.00
Perpetual bonds 2,988,000,000.00
2,988,000,000.00
Capital reserves 4,953,557,435.19
4,953,557,435.19
Surplus reserves 1,136,699,330.20
1,136,699,330.20
Retained profit 749,563,151.08
1,629,209,489.72
Total owners’ equity 17,209,928,116.47
18,089,574,455.11
TOTAL LIABILITIES AND OWNERS’ EQUITY 54,700,986,742.93
60,209,919,149.16
3. Consolidated income statement for the Period
Unit: RMBItem
Amounts for theperiod
Amounts for the
prior periodI. Total revenue 8,665,530,249.94
7,941,434,778.16
Including: Revenue 8,665,530,249.94
7,941,434,778.16
II. Total operating costs 7,902,495,189.97
7,218,784,688.46
Including: Operating costs 6,283,700,892.83
5,506,076,479.61
Taxes and surcharges 57,547,747.02
68,040,535.03
Sales and distribution expenses 373,167,721.36
324,607,159.50
General and administrative expenses 246,100,352.99
230,957,952.48
Research and development expenses 274,206,599.62
245,095,355.24
Finance expenses 667,771,876.15
844,007,206.60
Including: Interest expenses 777,506,849.57
909,153,291.74
Interest income 90,102,448.79
81,499,764.35
Plus: Other income 20,809,943.31
23,494,829.18
Investment income (“-” denotes loss) 175,779,271.30
127,336,281.28
Including:
ventures
811,698.89
| Investment income from associates and joint |
-6,572,934.11
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report Credit impairment loss (“-” denotes loss) -199,109,603.59
-33,069,486.40
Gain on disposal of assets (“-” denotes loss) -38,828,228.51
2,935,235.19
III. Operating profit (“-” denotes loss) 721,686,442.48
843,346,948.95
Plus: Non-operating income 31,033,192.17
22,243,068.90
Less: Non-operating expenses 11,007,861.52
13,045,182.22
IV. Total profit (“-” denotes total loss) 741,711,773.13
852,544,835.63
Less: Income tax expenses 160,781,655.00
119,353,651.11
V. Net profit (“-” denotes net loss) 580,930,118.13
733,191,184.52
(I) Classification according to the continuity of operation
Net profit from continuing operations (“-” denotes net loss)
580,930,118.13
733,191,184.52
(II) Classification according to ownership
1. Net profit attributable to
shareholders of the Company
557,960,253.43
696,526,748.13
2. Profit or loss of minority
interest
22,969,864.70
36,664,436.39
VI. Net other comprehensive income after tax -231,012,416.02
-300,157,276.21
Net other comprehensive income after tax attributable toshareholders of the Company
-231,012,416.02
-300,157,276.21
Other comprehensive income that will be reclassified toprofit or loss in subsequent periods
-231,012,416.02
-300,157,276.21
Exchange differences on translation of foreign operations
-231,012,416.02
-300,157,276.21
VII. Total comprehensive income 349,917,702.11
433,033,908.31
Total other comprehensive income attributable toshareholders of the Company
326,947,837.41
396,369,471.92
Total comprehensive income attributable to minority interest
22,969,864.70
36,664,436.39
VIII. Earnings per share:
(I) Basic earnings per share 0.14
0.18
(II) Diluted earnings per share 0.14
0.18
Legal Representative:
Chen Hongguo
Head in charge of accounting:
Dong Lianming
Head of the accounting department:
Zhang Bo
4. Income statement of the Company
Unit: RMBItem
Amounts for the
period
Amounts for the
prior periodI. Revenue
2,000,086,603.00
1,261,921,341.41
Less: Operating costs
1,509,980,777.19
908,457,085.81
Taxes and surcharges
8,956,107.34
12,885,905.11
Sales and distribution expenses 60,328,897.34
47,689,998.79
General and administrative expenses 97,046,884.52
93,493,353.35
Research and development expenses 82,066,921.93
59,219,583.02
Finance expenses 527,818,510.79
453,694,048.02
Including: Interest expenses 680,271,275.54
696,626,615.28
Interest income
160,658,344.73
314,594,724.63
Plus: Other income 1,075,008.68
Investment income (“-” denotes loss) 276,223,938.89
294,222,268.43
Including: Investment income from
joint ventures
-1,560,406.88
| associates and |
-5,777,731.57
Credit impairment loss (“-” denotes loss) -47,516,333.91
-7,239,283.13
Gain on disposal of assets (“-” denotes loss) -5,712,679.60
1,970,855.12
II. Operating Profit (“-“ denotes loss) -62,041,562.05
-24,564,792.27
Plus: Non-operating income 11,070,851.80
268,363.50
Less: Non-operating expenses 6,387,118.13
6,916,026.81
III. Total profit (“-” denotes total loss) -57,357,828.38
-31,212,455.58
Less: Income tax expenses -17,381,871.64
-59,221,592.13
IV. Net profit (“-” denotes net loss) -39,975,956.74
28,009,136.55
Net profit from continuing operations (“-” denotes net loss)
-39,975,956.74
28,009,136.55
IV. Total comprehensive income -39,975,956.74
28,009,136.55
5. Consolidated income statement for the period from the beginning of the year to the end of the
reporting period
Unit: RMBItem
Amounts for theperiod
Amounts for theprior periodI. Total revenue 22,014,178,363.64
23,492,768,818.05
Including: Revenue 22,014,178,363.64
23,492,768,818.05
II. Total operating costs 20,892,416,331.43
20,685,327,112.35
Including: Operating costs 16,037,798,692.65
15,765,961,398.47
Taxes and surcharges 192,036,292.08
197,549,747.01
Sales and distribution expenses 963,752,678.83
930,070,485.21
General and administrative expenses 808,517,752.24
725,799,621.03
Research and development expenses 705,690,315.68
723,110,209.34
Finance expenses 2,184,620,599.95
2,342,835,651.29
Including: Interest expenses 2,354,263,128.87
2,466,934,321.95
Interest income 304,096,729.01
240,596,355.69
Plus: Other income 59,641,233.95
83,167,106.06
Investment income (“-” denotes loss) 166,312,098.33
185,650,350.16
Including:
ventures
-8,655,474.08
| Investment income from associates and joint |
-23,726,437.11
Gain on change in fair value (“-” denotes loss) -1,883,064.80
-23,973,841.55
Credit impairment loss (“-” denotes loss) -261,549,886.93
-183,525,156.37
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report Asset impairment loss (“-” denotes loss) 82,790,921.68
Gain on disposal of assets (“-” denotes loss) -15,331,491.17
725,186.56
III. Operating profit (“-” denotes loss) 1,151,741,843.27
2,869,485,350.56
Plus: Non-operating income 268,505,785.14
213,875,626.25
Less: Non-operating expenses 16,057,989.71
13,491,403.54
IV. Total profit (“-” denotes total loss) 1,404,189,638.70
3,069,869,573.27
Less: Income tax expenses 286,659,474.62
553,555,763.61
V. Net profit (“-” denotes net loss) 1,117,530,164.08
2,516,313,809.66
(I) Classification according to the continuity of operation
Net profit from continuing operations (“-” denotes net loss)
1,117,530,164.08
2,516,313,809.66
(II) Classification according to ownership
3. Net profit attributable to
shareholders of the Company
1,067,755,825.72
2,481,157,773.44
4. Profit or loss of minority
interest
49,774,338.36
35,156,036.22
VI. Net other comprehensive income after tax -247,029,104.22
-403,391,386.59
Net other comprehensive income after tax attributable toshareholders of the Company
-247,029,104.22
-403,391,386.59
Other comprehensive income that will be reclassified toprofit or loss in subsequent periods
-247,029,104.22
-403,391,386.59
Exchange differences on translation of foreign operations
-247,029,104.22
-403,391,386.59
VII. Total comprehensive income 870,501,059.86
2,112,922,423.07
Total other comprehensive income attributable toshareholders of the Company
820,726,721.50
2,077,766,386.85
Total comprehensive income attributable to minority interest
49,774,338.36
35,156,036.22
VIII. Earnings per share:
(I) Basic earnings per share 0.15
0.54
(II) Diluted earnings per share 0.15
0.54
Legal Representative:
Chen Hongguo
Head in charge of accounting:
Dong Lianming
Head of the accounting department:
Zhang Bo
6. Income statement of the Company for the period from the beginning of the year to the end of the
reporting period
Unit: RMBItem
Amounts for the
period
Amounts for theprior periodI. Revenue
4,696,099,019.10
4,078,215,827.23
Less: Operating costs
3,613,267,928.83
2,882,818,698.89
Taxes and surcharges
31,340,628.12
57,455,929.28
Sales and distribution expenses 156,262,010.50
137,742,324.61
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report General and administrative expenses 257,448,680.43
233,936,154.40
Research and development expenses 204,332,393.43
172,154,901.59
Finance expenses 1,379,257,085.04
903,986,694.58
Including: Interest expenses 1,977,451,686.00
1,910,292,825.08
Interest income
684,663,818.41
1,152,849,226.50
Interest income 3,255,881.04
2,170,587.30
Investment income (“-” denotes loss) 1,286,777,082.46
351,894,141.34
Including:
ventures
-14,360,263.31
| Investment income from associates and joint |
-9,855,858.66
Credit impairment loss (“-” denotes loss) -48,361,072.12
-3,976,204.29
Gain on disposal of assets (“-” denotes loss) 16,703,489.82
566,364.87
II. Operating profit (“-” denotes loss) 312,565,673.95
40,776,013.10
Plus: Non-operating income 89,014,190.80
159,402,602.05
Less: Non-operating expenses 10,583,044.24
6,916,026.81
III. Total profit (“-” denotes total loss) 390,996,820.51
193,262,588.34
Less: Income tax expenses -113,957,576.37
-32,650,646.92
IV. Net profit (“-” denotes net loss) 504,954,396.88
225,913,235.26
Net profit from continuing operations (“-” denotes net loss)
504,954,396.88
225,913,235.26
VI. Total comprehensive income 504,954,396.88
225,913,235.26
7. Consolidated cash flow statement for the period from the beginning of the year to the end of the
reporting period
Unit: RMBItem
Amounts for theperiod
Amounts for theprior periodI. Cash flows from operating activities:
Cash received from sales of goods and rendering ofservices
24,694,452,196.67
22,826,321,614.77
Tax refund received
9,286,422.78
| 3,235,185.49 |
Cash received relating to other operating activities
6,112,249,944.86
| 4,789,319,464.29 |
Subtotal of cash inflows from operating activities 29,487,006,846.45
28,947,857,982.41
Cash paid for goods and services
18,654,617,667.62
15,406,856,581.77
Cash paid to and for employees
931,350,643.01
| 957,941,627.76 |
Payments of taxes and surcharges
1,712,799,956.34
| 1,440,370,577.89 |
Cash paid relating to other operating activities
1,823,488,953.71
| 1,934,852,831.68 |
Subtotal of cash outflows from operating activities
22,987,782,704.95
19,874,496,134.83
Net cash flows from operating activities
9,073,361,847.59
| 6,499,224,141.50 |
II. Cash flows from investment activities:
Cash received from investments
2,390,000,000.00
| 2,784,345.77 |
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly ReportCash received from investment income
375,641,400.00
| 12,000,000.00 |
Net cash received from disposal of fixed assets,intangible assets and other long-term assets
131,375,805.90
393,600.22
Net cash received from disposal of subsidiaries andother business units
221,000,000.00
19,610,260.70
Cash received relating to other investment activities
69,843,200.00
| 767,670,000.00 |
Subtotal of cash inflows from investment activities
2,855,488,460.92
| 1,134,830,151.67 |
Cash paid for purchase of fixed assets, intangible assetsand other long-term assets
3,142,851,174.29
| 926,528,167.05 |
Cash paid on investments
2,085,954,389.46
| 1,639,194,479.24 |
Cash paid relating to other investment activities
103,042,210.54
| 189,628,400.00 |
Subtotal of cash outflows from investment activities
5,331,847,774.29
| 2,755,351,046.29 |
Net cash flows from investment activities
-
-2,476,359,313.37
| 1,620,520,894.62 |
III. Cash flows from financing activities:
Cash received from borrowings
28,024,258,208.07
36,121,975,695.37
Cash received relating to other financing activities
4,096,789,134.60
14,012,509,155.81
Subtotal of cash inflows from financing activities
32,121,047,342.67
50,134,484,851.18
Cash repayments on borrowing
| 23,844,425,199.09 |
27,467,045,407.89
| Cash paid for dividend and profit distribution or interest |
payment
4,438,836,047.90
| 3,051,263,128.87 |
Cash paid relating to other financing activities
23,217,117,156.71
| 9,712,203,599.23 |
Subtotal of cash outflows from financing activities
55,122,998,612.50
| 36,607,891,927.19 |
Net cash flows from financing activities
-
-4,988,513,761.32
| 4,486,844,584.52 |
IV. Effect of foreign exchange rate changes on cash and cashequivalents
-
120,553,325.21
| 377,093,948.33 |
V. Net increase in cash and cash equivalents
1,729,042,098.10
| 14,764,714.03 | ||
Plus: Balance of cash and cash equivalents as at thebeginning of the period
2,804,408,374.46
| 2,381,558,242.52 |
VI. Balance of cash and cash equivalents as at the end of theperiod
4,533,450,472.56
| 2,396,322,956.55 |
8. Cash flow statement of the Company for the period from the beginning of the year to the end of the
reporting period
Unit: RMBItem
Amounts for the
period
Amounts for theprior periodI. Cash flows from operating activities:
Cash received from sales of goods and rendering ofservices
5,529,614,111.40
| 6,426,249,401.49 |
Cash received relating to other operating activities
2,427,573,406.75
| 1,296,334,093.23 |
Subtotal of cash inflows from operating activities
7,957,187,518.15
| 7,722,583,494.72 |
Cash paid for goods and services
1,963,218,833.84
| 1,643,706,437.55 |
Cash paid to and for employees
299,290,526.60
| 324,122,682.18 |
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly ReportPayments of taxes and surcharges
286,150,551.10
| 145,658,208.00 |
Cash paid relating to other operating activities
1,834,166,575.63
| 815,945,979.17 |
Subtotal of cash outflows from operating activities
4,382,826,487.17
| 2,929,433,306.90 |
Net cash flows from operating activities
3,574,361,030.98
| 4,793,150,187.82 |
II. Cash flows from investment activities:
Cash received from investments
| 2,784,345.77 |
2,350,000,000.00
Cash received from investment income
| 2,000,000.00 |
284,041,400.00
Net cash received from disposal of fixed assets,intangible assets and other long-term assets
| 75,806,913.60 |
Net cash received from disposal of subsidiaries and
| other business units | 221,000,000.00 |
19,610,260.70
Cash received relating to other investment activities
| 767,670,000.00 |
Subtotal of cash inflows from investment activities
2,653,651,660.70
| 1,069,261,259.37 |
Cash paid for purchase of fixed
and other long-term assets
| assets, intangible assets | 39,680,681.99 |
47,475,737.37
Cash paid on investments
| 1,147,500,000.00 |
2,301,714,807.50
Subtotal of cash outflows from investment activities
| 1,187,180,681.99 |
2,349,190,544.87
Net cash flows from investment activities
-
| 117,919,422.62 |
304,461,115.83
III. Cash flows from financing activities:
Cash received from borrowings
8,067,108,555.77
9,487,503,196.92
Cash received relating to other financing activities
5,638,813,889.00
11,525,489,947.95
Subtotal of cash inflows from financing activities
21,012,993,144.87
| 13,705,922,444.77 |
Cash repayments on borrowing 8,335,983,231.30
8,707,654,631.90
| Cash paid for dividend and profit distribution or interest |
payment
2,426,583,005.38
| 1,471,593,054.48 |
Cash paid relating to other financing activities
13,496,703,811.58
| 8,479,116,872.45 |
Subtotal of cash outflows from financing activities
24,630,941,448.86
| 18,286,693,158.23 |
Net cash flows from financing activities
-
-3,617,948,303.99
| 4,580,770,713.46 |
IV. Effect of foreign exchange rate changes on cash and cashequivalents
-
-16,058,996.41
| 3,844,637.47 |
V. Net increase in cash and cash equivalents
244,814,846.41
| 90,615,414.27 |
Plus: Balance of cash and cash equivalents as at thebeginning of the period
1,020,262,069.85
| 607,805,063.02 |
VI. Balance of cash and cash equivalents as at the end of theperiod
1,265,076,916.26
| 698,420,477.29 |
II. Reason for Adjustment in the Financial Statement
1. Adjustment to the relevant items in the financial statements at the beginning of the year due to the
adoption starting from 2019 of the New Standards for Financial Instruments, the New Standards forRevenue and the New Standards for Lease
□ Applicable √ Not applicable
2. Reason for the retrospective adjustment to the comparative data in the prior period due to the
adoption starting from 2019 of the New Standards for Financial Instruments and the New Standards forLease
□ Applicable √ Not applicable
III. Auditors’ ReportHas the third quarterly report already been audited yet?
□ Yes √ No
The third quarterly report of the Company is unaudited.
By order of the BoardShandong Chenming Paper Holdings Limited
25 October 2019