Shandong Chenming Paper Holdings Limited
INTERIM REPORT 2016
August 2016
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 the Report, and are jointly and severally responsible for the liabilities
associated with the Report.
All Directors were present 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 Li Dong, 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. Public investors 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
2016 Interim Report
I Important Notice, Table of Contents and Definitions 3
II Company Profile
III Summary of Accounting Data and Financial Indicators 6
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
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INTERIM
REPORT
2 SHANDONG CHENMING PAPER HOLDINGS LIMITED
I Important Notice, Table of Contents and Definitions
Definitions
Item Definition
Company, Group, Chenming means Shandong Chenming Paper Holdings Limited and its subsidiaries
Group or Chenming Paper
Parent Company or means Shandong Chenming Paper Holdings Limited
Shouguang Headquarters
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
Haiming Mining means Haicheng Haiming Mining Company Limited
INTERIM
Jilin Chenming means Jilin Chenming Paper Co., Ltd. REPORT
Shouguang Meilun or Meilun Paper means Shouguang Meilun Paper Co., Ltd.
Chenming Sales Company means Shandong Chenming Paper Sales Company Limited
Chenming Power means Shandong Chenming Power Supply Holdings Co., Ltd.
Finance Company means Shandong Chenming Group Finance Co., Ltd.
Financial Leasing Company means Shandong Chenming Financial Leasing Co., Ltd.
reporting period means The period from 1 January 2016 to 30 June 2016
SHANDONG CHENMING PAPER HOLDINGS LIMITED 3
II Company Profile
I. Company profile
Stock abbreviation 晨鳴紙業 Stock Code
Stock abbreviation 晨鳴 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 山東晨鳴紙業集團股份有限公司
Legal short name in Chinese of the Company (if any) 晨鳴紙業
Legal name in English of the Company (if any) SHANDONG CHENMING PAPER HOLDINGS LIMITED
Legal short name in English of the Company (if any) SCPH
Legal representative of the Company Chen Hongguo
II. Contact persons and contact methods
Securities Affairs Securities Affairs Hong Kong
Representative Representative Company Secretary
Name Xiao Peng Yuan Xikun 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
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INTERIM
Email address chenmmingpaper@163.com chenmmingpaper@163.com kentpoon_1009@yahoo.com.hk
REPOR
T III. Other information
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 2015 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 2015 Annual Report for details.
4 SHANDONG CHENMING PAPER HOLDINGS LIMITED
II Company Profile
III. Other information (Cont’d)
3. Change of registration information
Whether the registration information changed during the reporting period
Applicable □ Not applicable
Legal person Taxation
Date of Registration business license registration
registration place registration number number Organisation code
At the beginning 28 May 2014 Shandong Administration 370000400001170 370783613588986 61358898-6
of the reporting for Industry
period and Commerce
At the end of the 21 June 2016 Shandong Administration 913700006135889860 913700006135889860 913700006135889860
reporting for Industry
period and Commerce
INTERIM
REPORT
SHANDONG CHENMING PAPER HOLDINGS LIMITED 5
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) 10,606,358,733.02 9,718,697,677.76 9.13%
Net profit attributable to shareholders of the Company (RMB) 939,164,870.60 276,388,070.51 239.80%
Net profit after extraordinary gains or losses attributable
to shareholders of the Company (RMB) 741,811,083.82 174,462,219.94 325.20%
Net cash flows from operating activities (RMB) -2,697,509,853.04 -2,222,755,634.73 -
21.36% Basic earnings per share (RMB per share) 0.45 0.14 221.43%
Diluted earnings per share (RMB per share) 0.45 0.14 221.43%
Rate of return on net assets on weighted average basis 5.89% 1.97% 3.92%
Increase/decrease
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as at the end of
the reporting
REPOR
T 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) 86,628,494,212.59 77,961,699,547.59 11.12%
Net assets attributable to shareholders of the Company (RMB) 19,314,182,445.78 16,871,494,584.82 14.48%
Explanation: Net profit attributable to ordinary shareholders of the Company should exclude the effect of interest payment
deferred and accumulated to subsequent periods for perpetual bonds under other equity instruments. When calculating
financial indicators such as earnings per share and rate of return on net assets on weighted average basis, the interests
incurred but not declared for perpetual bonds in the first half of 2016 (amounting to RMB76,151,584.70) are deducted.
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.
6 SHANDONG CHENMING PAPER HOLDINGS LIMITED
III Summary of Accounting Data and Financial Indicators
III. Items and amounts of extraordinary gains or losses
Applicable □ Not applicable
Unit: RMB
Item Amount Explanation
Profit or loss from disposal of non-current assets -1,626,686.16
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 214,412,568.80
Profit or loss from debt restructuring 1,909,002.10
Profit or loss arising from external entrusted loans 44,212,264.15
Gain or loss from changes in fair value of
consumable biological assets subsequently
measured at fair value -10,599,543.68
Non-operating gains and losses other than
the above items 4,597,886.08
Less: Effect of income tax 53,745,876.48
Effect of minority interests 1,805,828.03
Total 197,353,786.78 —
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REPORT
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.
SHANDONG CHENMING PAPER HOLDINGS LIMITED 7
IV Directors’ Report
I. Overview
During the reporting period, the situation of oversupply in the paper making industry continued on the whole, but the
difference between supply and demand narrowed. Efforts to reduce excess capacity and inventories in the industry paid
off. The downward trend in raw material costs had a greater positive effect on the industry in terms of profit with a turning
point in earnings indicating a clear bottoming out. In the medium to long run, by virtue the supply-side reform, environmental
protection standards will be higher, small and medium-sized production capacity will accelerate to phase out, industry
concentration will be further enhanced, and the performance of the paper making industry is expected to continue to improve.
During the reporting period, the Company adhered to the main goal of “developing into an enterprise with hundreds of billions
in value” by adhering to the principle of “achieving growth amid stability”. The Company will stick to its diversification strategy
and develop an industrial system that centres on pulp production, paper making and finance to achieve synergy with forestry,
real estate and mining so as to boost the core competiveness and profitability. Meanwhile, the Company will be committed
to “team building, management enhancement, outstanding business performance and good results” in order to upgrade
management quality.
During the reporting period, the Company completed the production of machine-made paper of 2.13 million tonnes with
sales of 2.09 million tonnes and achieved revenue of RMB10.606 billion, representing a year-on-year increase of 9.13%. The
Company recorded operating costs of RMB7,264 million, representing a year-on-year decrease of 1.44%. Total profit and net
profit attributable to equity holders of the Company were RMB1,233 million and RMB939 million respectively, repres
