| Stock code: 000488, 200488 | Stock abbreviation: Chenming Paper Chenming B | Announcement No.: 2021-077 |
2021 Interim Report Summary ofSHANDONG CHENMING PAPER HOLDINGS LIMITEDI. IMPORTANT NOTICEThis interim report summary is extracted from the text of the interim report. For the full understanding of the operating results,financial position and plan for future development of the Company, investors should carefully read the full version of the interimreport published on the media designated by the CSRC.All directors have attended the board meeting to review this report.Non-standard auditor’s opinion
□ Applicable √ Not applicable
A proposed profit distribution plan on ordinary shares or a proposed plan on conversion of capital reserves into share capital for thereporting period was considered and passed by the Board
□ Applicable √ Not applicable
The Company plans not to distribute cash dividends or bonus shares or convert capital reserve into share capital.A proposed profit distribution plan on preference shares for the reporting period was considered and approved by the Board
□ Applicable √ Not applicable
II. BASIC IMFORMATION ON THE COMPANY
1. Company profile
| Stock abbreviation | 晨鸣纸业 | Stock code | 000488 |
| 晨鸣B | 200488 | ||
| 晨鸣优03 | 140005 |
| Stock exchanges on which the shares are listed | Shenzhen Stock Exchange | |||
| Stock abbreviation | Chenming Paper | Stock code | 01812 | |
| Stock exchanges on which the shares are listed | The Stock Exchange of Hong Kong Limited | |||
| Contact persons and contact methods | Secretary to the Board | Hong Kong Company Secretary | ||
| Name | Yuan Xikun | Chu HonLeung | ||
| Correspondence Address | No. 2199 East Nongsheng Road, Shouguang City,Shandong Province | 22nd Floor, World Wide House | ||
| Telephone | 0536-2158008 | +852-21629600 | ||
| Email address | chenmmingpaper@163.com | liamchu@li-partners.com |
2. Major accounting data and financial indicators
Retrospective adjustment to or restatement of the accounting data for prior years by the Company
□ Yes √ No
| The reporting period | The corresponding period of the prior year | Increase/decrease for the reporting period as compared to the corresponding period of the prior year | |
| Revenue (RMB) | 17,172,816,354.53 | 13,599,805,765.86 | 26.27% |
| Net profit attributable to shareholders of the Company (RMB) | 2,021,095,417.54 | 516,326,703.48 | 291.44% |
| Net profit after extraordinary gains or losses attributable to shareholders of the Company (RMB) | 1,964,718,180.70 | 67,882,116.23 | 2,794.31% |
| Net cash flows from operating activities (RMB) | 4,747,185,521.94 | 2,327,033,784.68 | 104.00% |
| Basic earnings per share (RMB per share) | 0.604 | 0.051 | 1,084.31% |
| Diluted earnings per share (RMB per share) | 0.604 | 0.051 | 1,084.31% |
| Rate of return on weighted average net assets | 8.94% | 0.84% | 8.10% |
| As at the end of the reporting period | As at the end of the prior year | Increase/decrease as at the end of the reporting period as compared to the end of the prior year | |
| Total assets (RMB) | 90,601,029,144.35 | 91,575,457,828.62 | -1.06% |
| Net assets attributable to shareholders of the Company (RMB) | 23,295,559,729.26 | 24,276,968,789.00 | -4.04% |
Data description of basic earnings per share, diluted earnings per share, and rate of return on weighted average net assets:
Net profit attributable to shareholders of the Company does not exclude the effect on interest of perpetual bonds and the dividends on PreferenceShares paid and declared to be paid. When calculating financial indicators such as earnings per share and the rate of return on weighted average netassets, the interest on perpetual bonds from 1 January 2021 to 30 June 2021 of RMB44,481,369.86 and the dividend on Preference Shares paid anddeclared to be paid in 2021 of RMB207,065,968.66 are deducted.
3. Total number of shareholders and shareholdings
Unit: share
| Total number of ordinary shareholders as at the end of the reporting period | 177,220, of which 156,912 were holders of A shares, 19,973 were holders of B shares and 335 were holders of H shares | Total number of holders of Preference Shares with restored voting right as at the end of the reporting period (if any) | 0 | |||||
| Top 10 shareholders | ||||||||
| Name of shareholder | Nature of shareholder | Percentage of shareholding | Number of shares | Number of restricted shares held | Share pledged, marked or locked-up | |||
| Status of shares | Number | |||||||
| CHENMING HOLDINGS COMPANY LIMITED | State-owned legal person | 15.32% | 457,322,919 | 0 | Pledged | 256,530,000 | ||
| HKSCC NOMINEES LIMITED | Overseas legal person | 12.52% | 373,523,125 | 0 | ||||
| CHENMING HOLDINGS (HONG KONG) LIMITED | Overseas legal person | 12.20% | 364,131,563 | 0 | ||||
| Chen Hongguo | Domestic natural person | 1.04% | 31,080,044 | 23,310,033 | ||||
| HONG KONG SECURITIES CLEARING COMPANY LIMITED | Overseas legal person | 0.94% | 28,200,060 | 0 | ||||
| GUOTAI JUNAN SECURITIES (HONG KONG) LIMITED | Overseas legal person | 0.63% | 18,733,524 | 0 | ||||
| SHANDONG SUN HOLDINGS GROUP CO., LTD. | Domestic non-state-owned legal person | 0.61% | 18,181,717 | 0 | ||||
| VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | Overseas legal person | 0.50% | 14,771,945 | 0 | ||||
| MORGAN STANLEY & CO. INTERNATIONAL PLC | Overseas legal person | 0.47% | 14,092,721 | 0 | ||||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | Overseas legal person | 0.46% | 13,628,646 | 0 | ||||
| Related party relationship or acting in concert among the above shareholders | A shareholder, Chenming Holdings (Hong Kong) Limited, which is an overseas legal person, is a wholly-owned subsidiary of a shareholder, Chenming Holdings Company Limited, which is a state-owned legal person. Hence, they are persons acting in concert under the Measures for the Administration of Disclosure of Shareholder Equity Changes of Listed Companies. A shareholder, Chen Hongguo, is the legal 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. It is also not aware that any other shareholders of tradable shares are related to each other. | |||||||
| Securities margin trading of shareholders, if any | Chenming Holdings Company Limited held 457,322,919 RMB ordinary shares, of which 379,522,919 shares were held through ordinary account and 77,800,000 shares were held through credit guarantee security account. | |||||||
4. Change of controlling shareholders or beneficial controllers
Change of controlling shareholders during the reporting period
□ Applicable √ Not applicable
There was no change of controlling shareholders of the Company during the reporting period.Change of beneficial controllers during the reporting period
□ Applicable √ Not applicable
There was no change of beneficial controllers of the Company during the reporting period.
5. Total number of holders of preference shares and the shareholdings of top ten holders of preferenceshares
√ Applicable □ Not applicable
Unit: share
| Total number of holders of Preference Shares as at the end of the reporting period | 6 | ||||||
| top ten holders of Preference Shares | |||||||
| Name of shareholder | Nature of shareholder | Preference shareholding | Number of preference shares | Share pledged or locked-up | |||
| Status of shares | Number | ||||||
| BANK OF COMMUNICATIONS INTERNATIONAL TRUST CO., LTD. – HUILI NO.136 SINGLE CAPITAL TRUST | Others | 28.44% | 6,400,000 | ||||
| BEIJING YIBEN ZHONGXING INVESTMENT MANAGEMENT CO., LTD. | Domestic non-state-owned legal person | 27.11% | 6,100,000 | Pledged | 6,100,000 | ||
| SHANGHAI SHIJIE BUSINESS CONSULTING CO., LTD. | Domestic non-state-owned legal person | 18.40% | 4,140,100 | Pledged | 4,140,000 | ||
| HENGFENG BANK CO., LTD. | Domestic non-state-owned legal person | 13.33% | 3,000,000 | ||||
| LEAD CAPITAL MANAGEMENT CO., LTD. – LEAD CAPITAL – LI DE YING NO. 1 ASSET MANAGEMENT PLAN | Others | 7.02% | 1,580,000 | ||||
| LEAD CAPITAL MANAGEMENT CO., LTD. – LEAD CAPITAL – LI DE YING NO. 2 ASSET MANAGEMENT PLAN | Others | 5.69% | 1,279,900 | ||||
| Related party relationship or acting in concert among the above shareholders | The aforesaid holders of Preference Shares, “LEAD CAPITAL MANAGEMENT CO., LTD.－LEAD CAPITAL－LI DE YING NO.1 ASSET MANAGEMENT PLAN” and “LEAD CAPITAL MANAGEMENT CO., LTD.－LEAD CAPITAL－LI DE YING NO.2 ASSET MANAGEMENT PLAN”, are persons acting in concert. Save for the above, it is not aware that whether the remaining holders of Preference Shares are persons acting in concert. It is also not aware that the aforesaid holders of Preference Shares and the top ten ordinary shareholders are related to each other. | ||||||
6. Bonds subsisting as at the date of approval of the interim report
√ Applicable □ Not applicable
(1) Basic information on bonds
| Name of bond | Bond abbreviation | Bond code | Issue date | Maturity date | Outstanding amount of the bonds (RMB’0,000) | Interest rate |
| The public issuance of the Corporate Bonds of Shandong Chenming Paper Holdings Limited to qualified investors in 2017 (phase I) | 17 Chenming Bond 01 | 112570 | 17 August 2017 | 21 August 2022 | 9,000 | 7.28% |
| The public issuance of the Corporate Bonds of Shandong Chenming Paper Holdings Limited to qualified investors in 2018 (phase I) | 18 Chenming Bond 01 | 112641 | 29 March 2018 | 2 April 2023 | 35,000 | 7.60% |
(2) Financial indicators as at the end of the reporting period
Unit: RMB’0,000
| Item | As at the end of the reporting period | As at the end of the prior year |
| Gearing ratio | 69.94% | 71.83% |
| Item | The reporting period | The corresponding period of the prior year |
| EBITDA interest coverage ratio | 4.00 | 2.72 |
III. Matters of significance
1. Change of listing venue of the domestic listed foreign shares and their listing and trading on the Main Board of theStock Exchange of Hong Kong Limited by conversion
On 9 March 2021, the Company held the 2021 first extraordinary general meeting, the 2021 first class meeting for holders ofdomestic-listed shares, and the 2021 first class meeting for holders of overseas-listed shares. Proposal on the Domestic Listed ForeignShares of the Company Changing Listing Venue to be Listed and Traded on the Main Board of the Stock Exchange of Hong KongLimited by Way of Conversion and related matters were considered and approved. On 29 June 2021, the Company received the CSRCAcceptance Notice of the Application for Administrative Permission issued by the China Securities Regulatory Commission, statingthat it has decided to accept the administrative license application.
For details, please refer to the relevant announcements (announcement no.: 2021-003,2021-018 and2021-053) of the Companypublished on CNINFO on 30 January ,10 March 2021 and 1 July 2021.
2. Full redemption of the first-tranche preference shares
On 18 February 2021, the Company held the eighteenth extraordinary meeting of the ninth session of the Board to consider andapprove the Resolution on Redemption of the First-tranche Preferred Shares. On 17 March 2021, the Company paid a total ofRMB2,348.1 million in redemption to shareholders of the first-tranche preference shares to fully redeem 22.5 million shares of thefirst-tranche preference shares of the Company. On 18 March 2021, the Company received the Redemption Results Statement from theShenzhen Branch of China Securities Depository and Clearing Co., Ltd. The redemption and delisting of Chenming You 01 wascompleted.
For details, please refer to the relevant announcements (announcement no.: 2021-013, 2021-014, 2021-016, 2021-017,2021-019, 2021-020, 2021-022, 2021-023) of the Company published on CNINFO on 19 February, 26 February, 5 March, 12 March,16 March and 19 March 2021.
3. The 2020 profit distribution plan
On 18 June 2021, the Company convened the 2020 annual general meeting, at which the proposed 2020 profit distribution planwas considered and approved. Based on the total number of ordinary shares of the Company as at the end of 2020 of 2,984,208,200shares and the 589,005,236 simulated ordinary shares converted from the second and third tranche preference shares using a conversionratio of 1 share valued at RMB3.87 as at the end of 2019, a cash dividend of RMB1.85 (tax inclusive) was to be distributed to ordinaryshareholders for every 10 shares held; a cash dividend of RMB1.85 (tax inclusive) per 10 simulated ordinary shares converted from thesecond and third tranche preference shares was to be distributed to holders of preference shares. No bonus shares would be issued andthere was no increase of share capital from reserves. The cash dividend distributed to ordinary shareholders amounted toRMB552,078,517.00 and a variable cash dividend distributed to holders of the second and third tranche preference shares amounted toRMB108,965,968.66. In the event of changes in the total share capital of the Company before the dividend distribution registration date,the total profits distribution shall remain unchanged while the percentage of allocation will be adjusted accordingly.
For details, please refer to the relevant announcement (announcement no.: 2021-044) of the Company published on CNINFO on19 June 2021.
4. Information disclosure index for the second half of 2021
| Announcement No. | Subject matter | Date of publication | Publication website and index |
| 2021-001 | Announcement on the Release of Pledge of Shares held by Shareholders | 5 January 2021 | http://www.cninfo.com.cn |
| 2021-002 | Announcement on the Release of Pledge and Continued Pledge of Shares held by Shareholders | 19 January 2021 | http://www.cninfo.com.cn |
| 2021-003 | Announcement on Resolutions of the Seventeenth Extraordinary Meeting of the Ninth Session of the Board | 30 January 2021 | http://www.cninfo.com.cn |
| 2021-004 | Notice of the 2021 First Extraordinary General Meeting, the 2021 First Class Meeting for Holders of Domestic-listed Shares and the 2021 First Class Meeting for Holders of Overseas-listed Shares | 30 January 2021 | http://www.cninfo.com.cn |
| 2021-005 | Announcement on the Solicitation of Voting Rights by the Independent Director | 30 January 2021 | http://www.cninfo.com.cn |
| 2021-006 | Announcement on Receipt of Government Subsidies by Wholly-owned Subsidiaries | 30 January 2021 | http://www.cninfo.com.cn |
| 2021-007 | Supplemental Notice on Convening the 2021 First Extraordinary General Meeting, the 2021 First Class Meeting for Holders of Domestic-listed Shares and the 2021 First Class Meeting for Holders of Overseas-listed Shares | 3 February 2021 | http://www.cninfo.com.cn |
| 2021-008 | Announcement on Unusual Movement in Share Trading | 4 February 2021 | http://www.cninfo.com.cn |
| 2021-009 | Announcement in respect of Provision of Guarantee in Favour of a Subsidiary for Financing | 10 February 2021 | http://www.cninfo.com.cn |
| 2021-010 | Announcement on Receipt of High and New Technology Enterprise Certificate by a Subsidiary | 10 February 2021 | http://www.cninfo.com.cn |
| 2021-011 | Amendment Announcement on The Proposal on the Domestic Listed Foreign Shares of the Company Changing Listing Venue to be Listed and Traded on the Main Board of The Stock Exchange of Hong Kong Limited by way of Conversion | 18 February 2021 | http://www.cninfo.com.cn |
| 2021-012 | Announcement on Unusual Movement in Share Trading | 18 February 2021 | http://www.cninfo.com.cn |
| 2021-013 | Announcement in respect of Resolutions of the Eighteenth Extraordinary Meeting of the Ninth Session of the Board of Directors | 19 February 2021 | http://www.cninfo.com.cn |
| 2021-014 | The First Indicative Announcement on the Redemption of the First-tranche Preference Shares | 19 February 2021 | http://www.cninfo.com.cn |
| 2021-015 | Announcement on Unusual Movement in Share Trading | 19 February 2021 | http://www.cninfo.com.cn |
| 2021-016 | The Second Indicative Announcement on the Redemption of the First-tranche Preference Shares | 26 February 2021 | http://www.cninfo.com.cn |
| 2021-017 | The Third Indicative Announcement on the Redemption of the First-tranche Preference Shares | 5 March 2021 | http://www.cninfo.com.cn |
| 2021-018 | Announcement on Resolution of the 2021 First Extraordinary General Meeting, the 2021 First Class Meeting for Holders of Domestic-listed Shares, and the 2021 First Class Meeting for Holders of Overseas-listed Shares | 10 March 2021 | http://www.cninfo.com.cn |
| 2021-019 | Announcement on the Full Redemption and Delisting of the First-tranche Preference Shares | 12 March 2021 | http://www.cninfo.com.cn |
| 2021-020 | The First Indicative Announcement on the Delisting of the First-tranche Preference Shares | 12 March 2021 | http://www.cninfo.com.cn |
| 2021-021 | Supplemental Announcement on the Poll Results of 2021 First Class Meeting for Holders of Overseas-listed Shares | 13 March 2021 | http://www.cninfo.com.cn |
| 2021-022 | Announcement on the Delisting of the First-tranche Preference Shares | 16 March 2021 | http://www.cninfo.com.cn |
| 2021-023 | Announcement on the Redemption Result of the First-tranche Preference Shares | 19 March 2021 | http://www.cninfo.com.cn |
| 2021-024 | Announcement in respect of Resolutions of the Eighth Meeting of the Ninth Session of the Board of Directors | 26 March 2021 | http://www.cninfo.com.cn |
| 2021-025 | Announcement on Resolutions of the Eighth Extraordinary Meeting of the Ninth Session of the Supervisory Committee | 26 March 2021 | http://www.cninfo.com.cn |
| 2021-026 | Notice of 2020 Annual General Meeting | 26 March 2021 | http://www.cninfo.com.cn |
| 2021-027 | Announcement on Appointment of Auditor for 2021 | 26 March 2021 | http://www.cninfo.com.cn |
| 2021-028 | Announcement on the Adjustment to the Guarantee Amount for Certain Subsidiaries | 26 March 2021 | http://www.cninfo.com.cn |
| 2021-029 | Announcement on Carrying out Factoring Business of Accounts Receivable | 26 March 2021 | http://www.cninfo.com.cn |
| 2021-030 | Announcement on the Receipt of Financial Assistance and Related Party Transaction | 26 March 2021 | http://www.cninfo.com.cn |
| 2021-031 | Announcement on the Resignation of Senior Management of the Company | 26 March 2021 | http://www.cninfo.com.cn |
| 2021-032 | 2020 Annual Report Summary | 26 March 2021 | http://www.cninfo.com.cn |
| 2021-033 | Announcement on the 2020 Annual Online Performance Briefing | 26 March 2021 | http://www.cninfo.com.cn |
| 2021-034 | Announcement on the Signing of the Convertible Bond Strategic Cooperation Framework Agreement | 26 March 2021 | http://www.cninfo.com.cn |
| 2021-035 | Supplemental Announcement in respect of Resolutions of the Eighth Meeting of the Ninth Session of the Board of Directors | 27 March 2021 | http://www.cninfo.com.cn |
| 2021-036 | Shandong Chenming Paper Holdings Limited Announcement on Payment of 2021 Interest with Respect to the First Tranche of Corporate Bonds Publicly Issued to Qualified Investors in 2018 | 31 March 2021 | http://www.cninfo.com.cn |
| 2021-037 | Announcement on the Release of Pledge of Shares held by Shareholders | 2 April 2021 | http://www.cninfo.com.cn |
| 2021-038 | 2021 First Quarterly Results Forecast | 7 April 2021 | http://www.cninfo.com.cn |
| 2021-039 | 2021 First Quarterly Report | 20 April 2021 | http://www.cninfo.com.cn |
| 2021-040 | Announcement on the Resignation of Employee Representative Supervisors and the By-election of Supervisors | 20 April 2021 | http://www.cninfo.com.cn |
| 2021-041 | Announcement on Pledge of Shareholders’ Shares | 22 April 2021 | http://www.cninfo.com.cn |
| 2021-042 | Announcement on the Development of Financing Business and the Provision of Guarantees | 30 April 2021 | http://www.cninfo.com.cn |
| 2021-043 | Announcement on Receipt of Government Subsidies by Subsidiaries | 15 June 2021 | http://www.cninfo.com.cn |
| 2021-044 | Announcement on Resolutions of 2020 Annual General Meeting | 19 June 2021 | http://www.cninfo.com.cn |
| 2021-045 | Announcement in respect of Provision of Guarantee in Favour of a Subsidiary | 23 June 2021 | http://www.cninfo.com.cn |
| 2021-046 | Announcement on Resolutions of the Nineteenth Extraordinary Meeting of the Ninth Session of the Board of Directors | 26 June 2021 | http://www.cninfo.com.cn |
| 2021-047 | Announcement on Capital Increase and Introduction of Strategic Investors of a Majority-owned Subsidiary | 26 June 2021 | http://www.cninfo.com.cn |
| 2021-048 | Announcement on the Development of Equipment Financing Business | 26 June 2021 | http://www.cninfo.com.cn |
| 2021-049 | Announcement on External Investment | 26 June 2021 | http://www.cninfo.com.cn |
| 2021-050 | Announcement in respect of Provision of Guarantee in Favour of Subsidiaries by a Wholly-owned Subsidiary | 26 June 2021 | http://www.cninfo.com.cn |
| 2021-051 | Announcement on Receipt of Government Subsidies by the Subsidiary Zhanjiang Chenming | 26 June 2021 | http://www.cninfo.com.cn |
| 2021-052 | Announcement on Pledge of Shareholders’ Shares | 29 June 2021 | http://www.cninfo.com.cn |
5. Introduction of strategic investors by Shouguang Meilun
On 25 June 2021, the 19th extraordinary meeting of the ninth session of the Board of the Company considered and approved theProposal on Capital Contribution and Introduction of Strategic Investors of a Majority-owned Subsidiary. The Company introducedCCB Financial Assets Investment Company Limited (on behalf of the CCB Investment-Shandong Development Debt-to-EquitySwap Investment Scheme) and SWSC Innovation Investment Co., Ltd. to contribute capital to Shouguang Meilun. CCB FinancialAssets Investment Company Limited (on behalf of the CCB Investment-Shandong Development Debt-to-Equity Swap InvestmentScheme) and SWSC Innovation made a capital contribution amount of RMB1.4 billion and RMB0.2 billion, respectively.For details, please refer to the relevant announcement (announcement no.: 2021-047) of the Company published on CNINFO on26 June 2021.
| The Board of Shandong Chenming Paper Holdings Limited |
| 26 August 2021 |