Shangdong Chenming Paper Holdings Limited
2018 Third Quarterly Report
2018 October
I Important Notice
The board of directors (the “Board”), the supervisory committee (the“Supervisory Committee”), the directors (the “Director”), the supervisors (the“Supervisors”) and the senior management (the “Senior Management”) of theCompany hereby warrant that the contents of this quarterly report are true,accurate and complete, and there are no false representations, misleadingstatements or material omissions, and are jointly and severally responsible forthe liabilities of the Company.
All Directors were present at the Board meeting to consider and approvethis quarterly report
Chen Hongguo, the head of the Company, Hu Jinbao, the head in charge ofaccounting, and Zhang Bo, the head of the accounting department (AccountingOfficer), declare that they warrant the truthfulness, accuracy and completenessof the financial statements in this quarterly report.
II General Information of the Company
1. Major accounting data and financial indicators
Retrospective adjustment to or restatement of the accounting data for prior years by the Company
□Yes ?No
| 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) | 103,869,510,880.83 | 105,625,096,076.92 | -1.66% | |||
| Net assets attributable to shareholders of the Company (RMB) | 25,010,022,264.23 | 27,778,529,074.90 | -9.97% | |||
| The reporting period | Increase/decrease compared to the corresponding period of the prior year | The period from the beginning of the year to the end of the reporting period | Increase/decrease for the period from the beginning of the year to the end of the reporting period as compared to the corresponding period of the prior year | |||
| Revenue (RMB) | 7,941,434,778.16 | -2.92% | 23,492,768,818.05 | 7.13% | ||
| Net profit attributable to shareholders of the Company (RMB) | 696,526,748.13 | -27.90% | 2,481,157,773.44 | -8.50% | ||
| Net profit after extraordinary gains or losses attributable to shareholders of the Company (RMB) | 645,794,426.61 | -30.38% | 2,183,691,192.05 | -14.39% | ||
| Net cash flows from operating activities (RMB) | — | — | 9,073,361,847.58 | 662.47% | ||
| Basic earnings per share (RMB per share) | 0.18 | -33.33% | 0.54 | -29.87% | ||
| Diluted earnings per share (RMB per share) | 0.18 | -33.33% | 0.54 | -29.87% | ||
| Rate of return on net assets on weighted average basis | 2.99% | 0.58% | 8.76% | -0.89% | ||
Explanation:
① Net profit attributable to shareholders of the Company does not exclude the effect of the interest of perpetual bonds and thedividends of preference shares paid and declared to be paid. When calculating financial indicators such as earnings per share and therate of return on net assets on weighted average basis, the interest for perpetual bonds from 1 January 2018 to 30 September 2018 ofRMB236,490,904.11 and the dividend on preference shares paid and declared to be paid in 2018 of RMB679,141,006.80 arededucted.
② Pursuant to the profit distribution plan of the Company for 2017 approved at the 2017 annual general meeting, based on thetotal ordinary share capital of 1,936,405,467 shares as at the end of 2017, a cash dividend of RMB6 (tax inclusive) per 10 shares wasdistributed to ordinary shareholders and a capitalisation issue to ordinary shareholders was made out of the capital reserves of 5shares for every 10 shares held. The share capital of the Company increased by 968,202,733 shares. Corresponding adjustments werealso made to the earnings per share for the same period last year.
Items and amounts of extraordinary gains or losses
?Applicable □Not applicable
Unit: RMB
| Item | Amount for the period from the beginning of the year to the end of the reporting period | Explanation |
| Profit or loss from disposal of non-current assets (including write-off of asset impairment provision) | 74,749,995.92 | |
| 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 | 278,544,741.69 |
Except for effective hedging business conducted in the ordinarycourse of business of the Company, gain or loss arising from thechange in fair value of financial assets held for trading andfinancial liabilities held for trading, as well as investment gainsfrom disposal of financial assets held for trading and financialliabilities held for trading and available-for-sale financial assets
| Except for effective hedging business conducted in the ordinary course of business of the Company, gain or loss arising from the change in fair value of financial assets held for trading and financial liabilities held for trading, as well as investment gains from disposal of financial assets held for trading and financial liabilities held for trading and available-for-sale financial assets | 61,750,000.00 | |
| Non-operating gains and losses other than the above items | 8,109,428.88 | |
| Gain or loss from changes in fair value of consumable biological assets subsequently measured at fair value | -23,973,841.55 | |
| Less: Effect of income tax | 78,208,214.57 | |
| Effect of minority interests (after tax) | 23,505,528.98 | |
| Total | 297,466,581.39 | — |
Notes for the Company’s extraordinary gain or loss items as defined in the Explanatory Announcement on Information Disclosure forCompanies Offering Their Securities to the Public No.1 - Extraordinary Gains or Losses and the extraordinary gain or loss items asillustrated 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 forCompanies Offering Their Securities to the Public No.1 - Extraordinary Gains or Losses were defined by the Company as itsrecurring gain or loss items during the reporting period.
II. Total number of shareholders and the shareholding of the top ten shareholders as at the end of the reporting period1. Total number of shareholders of ordinary shares and shareholders of preference shares with restored voting rights and
the shareholding of the top ten shareholders
Unit: share
| Total number of shareholders of ordinary shares as at the end of the reporting period | 117,989, of which 97,923 were holders of A shares, 19,695 were holders of B shares and 371 were holders of H shares | Total number of shareholders of preference shares with restored voting right as at the end of the reporting period (if any) | 0 | ||||||
| Shareholding of top 10 shareholders | |||||||||
| Name of shareholders | Nature of shareholders | Percentage of shareholding | Number of shares held | Number of restricted shares held | Share pledged or locked-up | ||||
| Status of shares | Number | ||||||||
| CHENMING HOLDINGS COMPANY LIMITED | State-owned legal person | 15.17% | 440,596,728 | 0 | Pledged | 336,520,741 | |||
| HKSCC NOMINEES LIMITED | Overseas legal person | 12.84% | 372,993,375 | 0 | |||||
| CHENMING HOLDINGS (HONG KONG) LIMITED | Overseas legal person | 12.54% | 364,131,563 | 0 | |||||
| CENTRAL HUIJIN ASSET MANAGEMENT LTD. | State-owned legal person | 2.07% | 60,206,850 | 0 | |||||
| NATIONAL SOCIAL SECURITY FUND 418 PORTFOLIO | Others | 0.51% | 14,786,862 | 0 | |||||
| CHINA UNIVERSAL FUND - CHINA CONSTRUCTION BANK - CHINA LIFE INSURANCE - CHINA LIFE INSURANCE’S EQUITY PORTFOLIO ENTRUSTED TO CHINA UNIVERSAL FUND | Others | 0.47% | 13,701,360 | 0 | |||||
| JIN Xing | Domestic nature person | 0.45% | 13,123,750 | 0 | |||||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | Overseas legal person | 0.44% | 12,912,357 | 0 | |||||
| AGRICULTURAL BANK OF CHINA LIMITED - CHINA SECURITIES 500 INDEX ETF SECURITIES INVESTMENT FUND | Others | 0.41% | 11,883,050 | 0 | |||||
| CHEN Hongguo | Domestic nature person | 0.35% | 10,144,444 | 7,608,333 | |||||
| Shareholding of the top ten shareholders of non-restricted shares | |||||||||
Name of shareholders
| Name of shareholders | Number of non-restricted shares held | Class of shares | ||
| Class of shares | Number | |||
| CHENMING HOLDINGS COMPANY LIMITED | 440,596,728 | RMB ordinary shares | 440,596,728 | |
| HKSCC NOMINEES LIMITED | 372,993,375 | Overseas listed foreign shares | 372,993,375 | |
| CHENMING HOLDINGS (HONG KONG) LIMITED | 364,131,563 | Domestic listed foreign shares | 210,717,563 | |
| Overseas listed foreign shares | 153,414,000 | |||
| CENTRAL HUIJIN ASSET MANAGEMENT LTD. | 60,206,850 | RMB ordinary shares | 60,206,850 | |
| NATIONAL SOCIAL SECURITY FUND 418 PORTFOLIO | 14,786,862 | RMB ordinary shares | 14,786,862 | |
| CHINA UNIVERSAL FUND - CHINA CONSTRUCTION BANK - CHINA LIFE INSURANCE - CHINA LIFE INSURANCE’S EQUITY PORTFOLIO ENTRUSTED TO CHINA UNIVERSAL FUND | 13,701,360 | RMB ordinary shares | 13,701,360 | |
| JIN Xing | 13,123,750 | Domestic listed foreign shares | 13,123,750 | |
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | 12,912,357 | Domestic listed foreign shares | 12,912,357 | |
| AGRICULTURAL BANK OF CHINA LIMITED — CHINA SECURITIES 500 INDEX ETF SECURITIES INVESTMENT FUND | 11,883,050 | RMB ordinary shares | 11,883,050 | |
| CHINA CONSTRUCTION BANK CORPORATION - CHINA UNIVERSAL ENVIRONMENTAL PROTECTION INDUSTRY EQUITY SECURITIES INVESTMENT FUND | 10,000,000 | RMB ordinary shares | 10,000,000 | |
| 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 Administration of Disclosure of Information on the Change of Shareholding in Listed Companies Procedures. A shareholder, Chen Hongguo, is the legal representative and chairman of a shareholder, Chenming Holdings Company Limited, which is a state-owned legal person. They are related to each other. 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 are related to each other. | |||
| Securities margin trading of op 10 ordinary shareholders (if any) | Chenming Holdings Company Limited holds 440,596,728 shares, of which 408,596,728 shares are held through ordinary account and 32,000,000 shares are held through credit guarantee securities accounts. | |||
Whether an agreed repurchase transaction was entered into during the reporting period by the top 10 ordinary shareholders and top 10shareholders of non-restricted shares of the Company
□Yes ?No
The top 10 ordinary shareholders and top 10 shareholders of non-restricted ordinary shares of the Company did not enter into anyagreed repurchase transaction during the reporting period.
2. Total number of shareholders of preference shares and shareholding of the top ten shareholders of preference shares
?Applicable □No applicable
Unit: share
| Total number of shareholders of preference shares as at the end of the reporting period | 7 | ||||||
| Shareholding of the top ten shareholders of preference shares | |||||||
| Name of shareholders | Nature of shareholders | Percentage of shareholding | Number of shares held | Number of restricted shares held | Share pledged or locked-up | ||
| Status of shares | Number | ||||||
| BEIJING YIBEN ZHONGXING INVESTMENT MANAGEMENT CO., | Domestic | 27.78% | 12,500,000 | 0 | Pledged | 12,500,000 | |
LTD.
| LTD. | non-state-owned legal person | ||||||
| BANK OF COMMUNICATIONS INTERNATIONAL TRUST CO., LTD. - HUILI NO.167 SINGLE CAPITAL TRUST | Others | 22.44% | 10,100,000 | 0 | |||
| BANK OF COMMUNICATIONS INTERNATIONAL TRUST CO., LTD. - HUILI NO.136 SINGLE CAPITAL TRUST | Others | 14.22% | 6,400,000 | 0 | |||
| QILU BANK CO., LTD. - QILU BANK QUANXIN WEALTH MANAGEMENT PRODUCT SERIES | Others | 13.33% | 6,000,000 | 0 | |||
| HENGFENG BANK CO., LTD. | Domestic non-state-owned legal person | 11.11% | 5,000,000 | 0 | |||
| SHANGHAI STATE-OWNED ASSETS OPERATION CO., LTD. | State-owned legal person | 6.67% | 3,000,000 | 0 | |||
| NCF - MINSHENG BANK - CHINA FORTUNE INTERNATIONAL TRUST - CHINA FORTUNE TRUST?MIN XIN NO. 11 SINGLE CAPITAL TRUST | Others | 4.44% | 2,000,000 | 0 | |||
| Related party relationship or acting in concert among the above shareholders | Shareholders of preference shares, namely “BANK OF COMMUNICATIONS INTERNATIONAL TRUST CO., LTD. - HUILI NO.167 SINGLE CAPITAL TRUST” and “BANK OF COMMUNICATIONS INTERNATIONAL TRUST CO., LTD. - HUILI NO.136 SINGLE CAPITAL TRUST”, are persons acting in concert. Save for the above, it is not aware that any other shareholders of preference shares are persons acting in concert and it is also not aware that any other shareholders of preference shares are related to each other. | ||||||
III Material matters
I. Details and reasons for changes of major financial data and financial indicators during
the reporting period
?Applicable □No applicable
(I) Analysis of the assets and liabilities of the Company
Unit: RMB
Item
| Item | 30 September 2018 | 31 December 2017 | Change | Reason for change |
| Bills receivable and accounts receivable | 5,124,736,316.25 | 7,886,097,430.59 | -35.02% | (1) |
| Prepayments | 2,645,675,886.41 | 1,962,151,473.35 | 34.84% | (2) |
| Other receivables | 2,569,606,466.71 | 538,734,656.55 | 376.97% | (3) |
| Other current assets | 8,047,097,211.80 | 11,568,757,330.26 | -30.44% | (4) |
| Other equity instrument investments | 103,000,000.00 | 2,453,000,000.00 | -95.80% | (5) |
| Construction in progress | 11,207,269,700.09 | 7,683,945,044.32 | 45.85% | (6) |
| Advance receipts | 594,806,241.50 | 243,182,891.22 | 144.59% | (7) |
| Other payables | 2,250,667,949.23 | 1,512,109,925.73 | 48.84% | (8) |
| Other current liabilities | 7,380,730,002.04 | 10,797,248,631.76 | -31.64% | (9) |
| Other non-current liabilities | 1,920,690,592.20 | 250,000,000.00 | 668.28% | (10) |
Explanation of the reasons leading to the major changes:
(1) Bills receivable and accounts receivable decreased by 35.02% as compared to the beginning of the year mainly due to the
Company’s payment for goods by bills and increase in financing amount.(2) Prepayments increased by 34.84% as compared to the beginning of the year mainly due to the Company’s increase in
prepayments for raw materials to lower the procurement cost of raw materials.(3) Other receivables increased by 376.97% as compared to the beginning of the year mainly due to the Company’s transfer of part
of financial lease credit.(4) Other current assets decreased by 30.44% as compared to the beginning of the year mainly due to the recovery of some financial
lease payments as a result of the change of the overall strategy of the Company’s financial leasing business.(5) Other equity instrument investments decreased by 95.80% as compared to the beginning of the year mainly due to the
Company’s disposal of 50% equity interest in Guangdong Dejun.(6) Construction in progress increased by 45.85% as compared to the beginning of the year mainly due to the Company’s higher
investment in, among other things, Huanggang Phase I project and Meilun chemical pulp project.(7) Advance receipts increased by 144.59% as compared to the beginning of the year mainly due to the increase in advance
payments for goods received by the Company.(8) Other payables increased by 48.84% as compared to the beginning of the year mainly due to the borrowings of RMB400 million
of the finance company from the interbank market.(9) Other current liabilities decreased by 31.64% as compared to the beginning of the year mainly due to the Company’s repayment
of short-term commercial paper falling due.(10) Other non-current liabilities increased by 668.28% as compared to the beginning of the year mainly due to the Company’s issue
of RMB1.68 billion medium-term notes.
(II) Reasons for significant year on year changes of income statement items
Unit: RMB
| Item | January - September 2018 | January - September 2017 | Change | Reason for change |
| Taxes and surcharges | 197,549,747.01 | 162,946,170.78 | 21.24% | (1) |
| General and administrative expenses | 725,799,621.03 | 620,900,767.79 | 16.89% | (2) |
| Financial expenses | 2,342,835,651.29 | 1,723,984,373.79 | 35.90% | (3) |
Loss on impairment ofassets
| Loss on impairment of assets | 183,525,156.37 | 103,830,560.96 | 76.75% | (4) |
| Investment income | 185,650,350.16 | 121,348,201.62 | 52.99% | (5) |
Explanation of the reasons leading to the major changes:
(1) Taxes and surcharges increased by 21.24% as compared to the corresponding period of last year mainly due to the year-on-year
increase in taxes in line with the year-on-year increase in the gross profit of the Company.(2) General and administrative expenses increased by 16.89% as compared to the corresponding period of last year mainly due to
the increase in depreciation expenses on investment property of the Company.(3) Finance expenses increased by 35.90% as compared to the corresponding period of last year mainly due to the year-on-year
increase of interest expense by 50.61% as a result of the increase in financing costs.(4) Loss on impairment of assets increased by 76.75% as compared to the corresponding period of last year mainly due to the
increase of the Company’s bad debt provision for account receivables.(5) Investment income increased by 52.99% as compared to the corresponding period of last year mainly due to the gain on disposal
of equity interest in Guangdong Dejun and Wan Xing Real Estate by the Company during the period.
(III) Analysis of cash flows during the reporting period
Unit: RMB
| Item | January - September 2018 | January - September 2017 | Change | Reason for change |
| Net cash flows from operating activities | 9,073,361,847.59 | -1,613,139,694.33 | 662.47% | (1) |
| Net cash flows from investment activities | -2,476,359,313.37 | -1,483,934,428.52 | -66.88% | (2) |
| Net cash flows from financing activities | -4,988,513,761.32 | 4,859,032,582.33 | -202.66% | (3) |
| Item | January - September 2018 | January - September 2017 | Change | Reason for change |
| Net cash flows from operating activities | 9,073,361,847.59 | -1,613,139,694.33 | 662.47% | (1) |
Explanation of the reasons leading to the major changes:
(1) Net cash flows from operating activities increased by 662.47% as compared to the corresponding period of last year mainly due
to the higher average selling price of machine-made paper of the Company as compared to the corresponding period of last year,the increase in revenue from sales and net returns of the financial leasing business.
(2) Net cash flows from investing activities decreased by 66.88% as compared to the corresponding period of last year mainly due
to the increase of cash payment for investments such as the acquisition of 30% equity interest in Shanghai Hongtai by theCompany.
(3) Net cash flows from financing activities decreased by 202.66% as compared to the corresponding period of last year mainly due
to the Company’s adjustment of the development strategy of its financial leasing business, and recovery of part of its advancesto repay the loans falling due.
II. Progress in respect to material matters and analysis of the related effects and solutions
□Applicable ?No applicable
III. Undertakings made by parties involved in undertakings including the Company’sbeneficial controllers, shareholders, related parties, bidders and the Company subsistingduring the reporting period
□Applicable ?No applicable
During the reporting period, there were no undertakings made by parties involved in undertakings including the Company’sbeneficial controllers, shareholders, related parties, bidders and the Company subsisting during the reporting period.
IV. Estimate of the operating results for 2018
Warning of projection on cumulative net profit for the period from the beginning of the year to the end of the next reporting period tobe at a loss or expected to have material changes as compared to the corresponding period of prior year and its explanation
□Applicable ?No applicable
V. Security investments
□Applicable ?No applicable
The Company did not have any security investments during the reporting period.
VI. Entrusted wealth management
□Applicable ?No applicable
The Company did not have any entrusted wealth management during the reporting period.
VII. Derivative investments
□Applicable ?No applicable
The Company did not have any derivative investments during the reporting period.
VIII. Registration report on reception of research investigations, communications andinterviews during the reporting period
?Applicable □No applicable
Reception time
| Reception time | Reception method | Type of Reception target | Basic information of investigations |
| 13 July 2018 | On-site investigations | Institution | For details please refer to the investor relations activities record disclosed on CNINFO on 16 July 2018 |
IX. External guarantees against the rules and regulations
□Applicable ?No applicable
There was no external guarantee provided by the Company which was against the rules and regulations during the reporting periodX. Appropriation of funds of the Company by the controlling shareholder and its related parties for non-operating
purposes
□Applicable ?No applicable
There was no appropriation of funds of the Company by the controlling shareholder and its related parties for non-operating purposesduring the reporting period.
IV Financial Statements (As at 30 September 2018)
I. Financial Statements1. Consolidated Balance Sheet
Prepared by: Shandong Chenming Paper Holdings Limited
Unit: RMB
Item
| Item | Closing balance | Opening balance |
| CURRENT ASSETS: | ||
| Monetary funds | 16,551,307,376.84 | 14,443,492,461.43 |
| Financial assets held for trading | 94,000,000.00 | |
| Bills receivable and accounts receivable | 5,124,736,316.25 | 7,886,097,430.59 |
| Including: Bills receivable | 1,471,182,656.33 | 4,220,231,853.56 |
| Accounts receivable | 3,653,553,659.92 | 3,665,865,577.03 |
| Prepayments | 2,645,675,886.41 | 1,962,151,473.35 |
| Other receivables | 2,569,606,466.71 | 538,734,656.55 |
| Inventories | 6,497,162,859.05 | 6,022,805,491.17 |
| Non-current assets due within one year | 5,832,227,402.64 | 6,901,695,875.94 |
| Other current assets | 8,047,097,211.80 | 11,568,757,330.26 |
| Total current assets | 47,267,813,519.70 | 49,417,734,719.29 |
| NON-CURRENT ASSETS: | ||
| Long-term receivables | 8,685,164,213.89 | 9,400,862,089.18 |
| Long-term equity investments | 384,395,766.18 | 391,868,827.45 |
| Other equity instrument investment | 103,000,000.00 | 2,453,000,000.00 |
| Investment property | 4,726,177,259.10 | 4,809,535,109.82 |
| Fixed assets | 27,450,440,078.56 | 28,227,509,503.05 |
| Construction in progress | 11,207,269,700.09 | 7,683,945,044.32 |
| Intangible assets | 1,932,549,831.85 | 2,059,221,379.09 |
| Goodwill | 20,283,787.17 | 20,283,787.17 |
| Long-term prepaid expenses | 137,519,369.49 | 139,122,569.45 |
| Deferred income tax assets | 557,079,199.59 | 522,288,850.40 |
| Other non-current assets | 1,397,818,155.21 | 499,724,197.70 |
| Total non-current assets | 56,601,697,361.13 | 56,207,361,357.63 |
| Total assets | 103,869,510,880.83 | 105,625,096,076.92 |
| CURRENT LIABILITIES: | ||
| Short-term borrowings | 36,865,017,676.14 | 35,096,574,873.03 |
| Bills payable and accounts payable | 5,081,695,242.86 | 5,292,331,618.45 |
| Advance receipts | 594,806,241.50 | 243,182,891.22 |
| Staff remuneration payables | 118,154,493.05 | 185,130,892.10 |
| Taxes payable | 468,518,906.27 | 496,626,014.68 |
| Other payables | 2,250,667,949.23 | 1,512,109,925.73 |
| Non-current liabilities due within one year | 4,582,157,452.87 | 3,625,430,347.40 |
| Other current liabilities | 7,380,730,002.04 | 10,797,248,631.76 |
| Total current liabilities | 57,341,747,963.96 | 57,248,635,194.37 |
| NON-CURRENT LIABILITIES: | ||
| Long-term borrowings | 8,321,609,057.45 | 7,646,122,995.91 |
| Bonds payable | 2,097,405,000.00 | 2,196,261,279.57 |
| Long-term payables | 6,244,413,316.71 | 6,231,921,152.30 |
| Provisions | 325,259,082.28 | 325,259,082.28 |
| Deferred income | 1,401,478,965.52 | 1,452,717,833.55 |
| Other non-current liabilities | 1,920,690,592.20 | 250,000,000.00 |
| Total non-current liabilities | 20,310,856,014.16 | 18,102,282,343.61 |
| TOTAL LIABILITIES | 77,652,603,978.12 | 75,350,917,537.98 |
| OWNERS’ EQUITY: | ||
| Share capital | 2,904,608,200.00 | 1,936,405,467.00 |
| Other equity instruments | 7,465,500,000.00 | 10,048,300,000.00 |
| Including: Preference shares | 4,477,500,000.00 | 4,477,500,000.00 |
| Perpetual bonds | 2,988,000,000.00 | 5,570,800,000.00 |
| Capital reserves | 5,105,706,141.46 | 6,149,257,784.90 |
| Other comprehensive income | -757,556,514.39 | -354,165,127.80 |
Surplus reserves
| Surplus reserves | 1,132,116,106.40 | 1,132,116,106.40 |
| Retained profit | 9,159,648,330.76 | 8,866,614,844.40 |
| Total equity attributable to equity holders of the company | 25,010,022,264.23 | 27,778,529,074.90 |
| Minority interest | 1,206,884,638.48 | 2,495,649,464.04 |
| Total owners’ equity | 26,216,906,902.71 | 30,274,178,538.94 |
| TOTAL LIABILITIES AND OWNERS’ EQUITY | 103,869,510,880.83 | 105,625,096,076.92 |
| Legal Representative: Chen Hongguo | Financial controller: Hu Jinbao | Head of the financial department: Zhang Bo |
2. Balance sheet of the Company
Unit: RMB
| Item | Closing balance | Opening balance |
| CURRENT ASSETS: | ||
| Monetary funds | 9,599,019,052.65 | 9,580,548,200.88 |
| Financial assets held for trading | 94,000,000.00 | |
| Bills receivable and accounts receivable | 5,054,188,244.40 | 795,283,825.96 |
| Including: Bills receivable | 872,290,054.61 | 787,095,075.51 |
| Accounts receivable | 4,181,898,189.79 | 8,188,750.45 |
| Prepayments | 2,444,965,863.01 | 742,107,273.09 |
| Other receivables | 19,805,778,508.88 | 22,351,203,484.83 |
| Inventories | 984,818,812.57 | 751,426,520.51 |
| Other current assets | 11,169,093.47 | 2,488,977.72 |
| Total current assets | 37,899,939,574.98 | 34,317,058,282.99 |
| NON-CURRENT ASSETS: | ||
| Long-term receivables | 458,947,875.49 | 456,925,607.06 |
| Long-term equity investments | 21,931,870,664.64 | 18,674,034,243.49 |
| Other equity instrument investment | 103,000,000.00 | 2,453,000,000.00 |
| Fixed assets | 2,117,462,669.36 | 2,364,990,246.94 |
| Construction in progress | 1,726,422,342.43 | 973,375,557.42 |
| Intangible assets | 461,346,789.15 | 470,379,203.58 |
| Deferred income tax assets | 219,586,534.60 | 186,935,887.68 |
| Other non-current assets | 54,800,000.00 | 54,800,000.00 |
| Total non-current assets | 27,073,436,875.67 | 25,634,440,746.17 |
| Total assets | 64,973,376,450.65 | 59,951,499,029.16 |
| CURRENT LIABILITIES: | ||
| Short-term borrowings | 7,390,943,747.81 | 7,522,637,247.14 |
| Bills receivable and accounts receivable | 10,730,658,354.77 | 6,945,776,495.21 |
| Advance receipts | 4,899,411,924.93 | 956,040,917.07 |
| Staff remuneration payables | 55,267,118.38 | 47,546,116.66 |
| Taxes payable | 52,734,607.34 | 116,173,781.96 |
| Other payables | 5,776,890,191.99 | 2,190,981,135.04 |
| Non-current liabilities due within one year | 985,120,003.18 | 1,318,429,260.12 |
| Other current liabilities | 8,135,730,002.04 | 10,797,248,631.76 |
| Total current liabilities | 38,026,755,950.44 | 29,894,833,584.96 |
| NON-CURRENT LIABILITIES: | ||
| Long-term borrowings | 1,336,377,410.45 | 908,182,122.65 |
| Bonds payable | 2,097,405,000.00 | 1,198,305,304.75 |
| Long-term payables | 3,747,155,396.54 | 4,605,691,332.13 |
| Provisions | 325,259,082.28 | 325,259,082.28 |
| Deferred income | 47,497,308.65 | 50,753,189.60 |
| Other non-current liabilities | 1,245,166,669.00 | 250,000,000.00 |
| Total non-current liabilities | 8,798,860,866.92 | 7,338,191,031.41 |
| TOTAL LIABILITIES | 46,825,616,817.36 | 37,233,024,616.37 |
| OWNERS’ EQUITY: | ||
| Share capital | 2,904,608,200.00 | 1,936,405,467.00 |
| Other equity instruments | 7,465,500,000.00 | 10,048,300,000.00 |
| Including: Preference shares | 4,477,500,000.00 | 4,477,500,000.00 |
| Perpetual bonds | 2,988,000,000.00 | 5,570,800,000.00 |
Capital reserves
| Capital reserves | 4,953,557,435.19 | 5,938,960,168.19 |
| Surplus reserves | 1,119,926,524.49 | 1,119,926,524.49 |
| Retained profit | 1,704,167,473.61 | 3,674,882,253.11 |
| Total owners’ equity | 18,147,759,633.29 | 22,718,474,412.79 |
| TOTAL LIABILITIES AND OWNERS’ EQUITY | 64,973,376,450.65 | 59,951,499,029.16 |
3. Consolidated income statement of the reporting period
Unit: RMB
| Item | Amounts for the period | Amounts for the prior period |
| I. Total revenue | 7,941,434,778.16 | 8,179,965,762.07 |
| Including: Revenue | 7,941,434,778.16 | 8,179,965,762.07 |
| II. Total operating costs | 7,251,854,174.86 | 7,089,959,307.39 |
| Including: Operating costs | 5,506,076,479.61 | 5,463,612,011.51 |
| Taxes and surcharges | 68,040,535.03 | 56,986,158.42 |
| Sales and distribution expenses | 324,607,159.50 | 343,307,442.54 |
| General and administrative expenses | 230,957,952.48 | 211,381,726.06 |
| Research and development expenses | 245,095,355.24 | 292,064,193.55 |
| Finance expenses | 844,007,206.60 | 668,587,867.43 |
| Including: Interest expenses | 909,153,291.74 | 655,142,601.36 |
| Interest income | 81,499,764.35 | 54,848,857.37 |
| Loss on impairment of assets | 33,069,486.40 | 54,019,907.88 |
| Plus: Other income | 23,494,829.18 | |
| Investment income (“-” denotes loss) | 127,336,281.28 | 55,483,529.26 |
| Including: Investment income from associates and joint ventures | -6,572,934.11 | 27,516,929.26 |
| Gain on disposal of assets (“-” denotes loss) | 2,935,235.19 | -819,971.68 |
| III. Operating profit (“-” denotes loss) | 843,346,948.95 | 1,144,670,012.26 |
| Plus: Non-operating income | 22,243,068.90 | 50,688,041.18 |
| Less: Non-operating expenses | 13,045,182.22 | 1,515,966.91 |
| IV. Total profit (“-” denotes total loss) | 852,544,835.63 | 1,193,842,086.53 |
| Less: Income tax expenses | 119,353,651.11 | 217,301,563.56 |
| V. Net profit (“-” denotes net loss) | 733,191,184.52 | 976,540,522.97 |
| Net profit from continuing operations (“-” denotes net loss) | 733,191,184.52 | 976,540,522.97 |
| Net profit attributable to shareholders of the Company | 696,526,748.13 | 966,000,240.51 |
| Profit or loss of minority interest | 36,664,436.39 | 10,540,282.46 |
| VI. Net other comprehensive income after tax | -300,157,276.21 | 155,763,579.06 |
| Net other comprehensive income after tax attributable to shareholders of the Company | -300,157,276.21 | 155,763,579.06 |
| Other comprehensive income that will be reclassified to profit or loss | -300,157,276.21 | 155,763,579.06 |
| Exchange differences on translation of foreign operations | -300,157,276.21 | 155,763,579.06 |
| VII. Total comprehensive income | 433,033,908.31 | 1,132,304,102.03 |
| Total other comprehensive income attributable to shareholders of the Company | 396,369,471.92 | 1,121,763,819.57 |
| Total comprehensive income attributable to minority interest | 36,664,436.39 | 10,540,282.46 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share | 0.18 | 0.27 |
| (II)Diluted earnings per share | 0.18 | 0.27 |
| Legal Representative: Chen Hongguo | Financial controller: Hu Jinbao | Head of the financial department: Zhang Bo |
4、Income statement of the Company of the reporting period
Unit: RMB
Item
| Item | Amounts for the period | Amounts for the prior period |
| I. Revenue | 1,261,921,341.41 | 1,706,131,164.94 |
| Less: Operating costs | 908,457,085.81 | 1,193,116,257.66 |
| Taxes and surcharges | 12,885,905.11 | 18,092,927.04 |
| Sales and distribution expenses | 47,689,998.79 | 64,749,892.58 |
| General and administrative expenses | 93,493,353.35 | 85,505,467.72 |
| Research and development expenses | 59,219,583.02 | 72,841,071.19 |
| Finance expenses | 453,694,048.02 | 224,536,497.92 |
| Including: Interest expenses | 696,626,615.28 | 596,123,497.86 |
| Interest income | 314,594,724.63 | 401,153,543.09 |
| Loss on impairment of assets | 7,239,283.13 | -1,721,797.89 |
| Investment income (“-” denotes loss) | 294,222,268.43 | 27,471,467.73 |
| Including: Investment income from associates and joint ventures | -5,777,731.57 | -495,132.27 |
| Gain on disposal of assets (“-” denotes loss) | 1,970,855.12 | -760,677.58 |
| II. Operating profit (“-” denotes loss) | -24,564,792.27 | 75,721,638.87 |
| Plus: Non-operating income | 268,363.50 | 3,778,835.57 |
| Less: Non-operating expenses | 6,916,026.81 | 500,000.00 |
| III. Total profit (“-” denotes total loss) | -31,212,455.58 | 79,000,474.44 |
| Less: Income tax expenses | -59,221,592.13 | -20,254,937.09 |
| IV.Net profit (“-” denotes net loss) | 28,009,136.55 | 99,255,411.53 |
| Net profit from continuing operations (“-” denotes net loss) | 28,009,136.55 | 99,255,411.53 |
| VI. Total comprehensive income | 28,009,136.55 | 99,255,411.53 |
| VII. Earnings per share： | ||
| (I) Basic earnings per share | — | — |
| (II) Diluted earnings per share | — | — |
5. Consolidated income statement for the period from the beginning of the year to the end of the reportingperiod
Unit: RMB
| Item | Amounts for the period | Amounts for the prior period |
| I. Total revenue | 23,492,768,818.05 | 21,929,200,769.31 |
| Including: Revenue | 23,492,768,818.05 | 21,929,200,769.31 |
| II. Total operating costs | 20,868,852,268.72 | 18,970,046,742.20 |
| Including: Operating costs | 15,765,961,398.47 | 14,634,679,000.00 |
| Taxes and surcharges | 197,549,747.01 | 162,946,170.78 |
| Sales and distribution expenses | 930,070,485.21 | 984,805,717.89 |
| General and administrative expenses | 725,799,621.03 | 620,900,767.79 |
| Research and development expenses | 723,110,209.34 | 738,900,150.99 |
| Finance expenses | 2,342,835,651.29 | 1,723,984,373.79 |
| Including: Interest expenses | 2,466,934,321.95 | 1,637,968,048.69 |
| Interest income | 240,596,355.69 | 172,244,649.91 |
| Loss on impairment of assets | 183,525,156.37 | 103,830,560.96 |
| Plus: Other income | 83,167,106.06 | |
| Investment income (“-” denotes loss) | 185,650,350.16 | 121,348,201.62 |
| Including: Investment income from associates and joint ventures | -23,726,437.11 | 23,362,635.96 |
| Gain on change in fair value (“-” denotes loss) | -23,973,841.55 | -11,009,851.10 |
| Gain on disposal of assets (“-” denotes loss) | 725,186.56 | -475,168.69 |
| III. Operating profit (“-” denotes loss) | 2,869,485,350.56 | 3,069,017,208.94 |
| Plus: Non-operating income | 213,875,626.25 | 207,384,411.91 |
| Less: Non-operating expenses | 13,491,403.54 | 3,588,548.37 |
| IV. Total profit (“-” denotes total loss) | 3,069,869,573.27 | 3,272,813,072.48 |
| Less: Income tax expenses | 553,555,763.61 | 548,554,890.64 |
| V. Net profit (“-” denotes net loss) | 2,516,313,809.66 | 2,724,258,181.84 |
| Net profit from continuing operations (“-” denotes net loss) | 2,516,313,809.66 | 2,724,258,181.84 |
Net profit attributable to shareholders of theCompany
| Net profit attributable to shareholders of the Company | 2,481,157,773.44 | 2,711,515,078.74 |
| Profit or loss of minority interest | 35,156,036.22 | 12,743,103.10 |
| VI. Net other comprehensive income after tax | -403,391,386.59 | 326,460,998.96 |
| Net other comprehensive income after tax attributable to shareholders of the Company | -403,391,386.59 | 326,460,998.96 |
| Other comprehensive income that will be reclassified to profit or loss | -403,391,386.59 | 326,460,998.96 |
| Exchange differences on translation of foreign operations | -403,391,386.59 | 326,460,998.96 |
| VII. Total comprehensive income | 2,112,922,423.07 | 3,050,719,180.80 |
| Total comprehensive income attributable to shareholders of the Company | 2,077,766,386.85 | 3,037,976,077.70 |
| Total comprehensive income attributable to minority interest | 35,156,036.22 | 12,743,103.10 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share | 0.54 | 0.77 |
| (II) Diluted earnings per share | 0.54 | 0.77 |
6. Income statement of the Company for the period from the beginning of the year to the end of the reporting period
Unit: RMB
| Item | Amounts for the period | Amounts for the prior period |
| I. Revenue | 4,078,215,827.23 | 5,388,701,473.86 |
| Less: Operating costs | 2,882,818,698.89 | 3,753,815,510.75 |
| Taxes and surcharges | 57,455,929.28 | 56,290,076.46 |
| Sales and distribution expenses | 137,742,324.61 | 196,448,912.34 |
| General and administrative expenses | 233,936,154.40 | 244,183,492.88 |
| Research and development expenses | 172,154,901.59 | 220,787,318.45 |
| Finance expenses | 903,986,694.58 | 526,756,927.96 |
| Including: Interest expenses | 1,910,292,825.08 | 1,521,804,699.05 |
| Interest income | 1,152,849,226.50 | 1,084,688,539.12 |
| Loss on impairment of assets | 3,976,204.29 | 11,317,153.72 |
| Plus: Other income | 2,170,587.30 | 96,961,416.40 |
| Investment income (“-” denotes loss) | 351,894,141.34 | |
| Including: Investment income from associates and joint ventures | -9,855,858.66 | -525,752.57 |
| Gain on disposal of assets (“-” denotes loss) | 566,364.87 | -475,105.36 |
| II. Operating profit (“-” denotes loss) | 40,776,013.10 | 475,588,392.34 |
| Plus: Non-operating income | 159,402,602.05 | 16,561,158.31 |
| Less: Non-operating expenses | 6,916,026.81 | 500,000.00 |
| III. Total profit (“-” denotes total loss) | 193,262,588.34 | 491,649,550.65 |
| Less: Income tax expenses | -32,650,646.92 | -100,436.69 |
| IV. Net profit (“-” denotes net loss) | 225,913,235.26 | 491,749,987.34 |
| Net profit from continuing operations (“-” denotes net loss) | 225,913,235.26 | 491,749,987.34 |
| VI. Total comprehensive income | 225,913,235.26 | 491,749,987.34 |
| VII. Earnings per share: | ||
| (I) Basic earnings per share | — | — |
| (II) Diluted earnings per share | — | — |
7. Consolidated cash flow statement for the period from the beginning of the year to the end of the reportingperiod
Unit: RMB
| Item | Amounts for the period | Amounts for the prior period |
| I. Cash flows from operating activities: | ||
| Cash received from sales of goods and rendering of services | 22,826,321,614.77 | 20,682,008,390.14 |
| Tax rebates received | 9,286,422.78 | 6,142,112.71 |
| Cash received relating to other operating activities | 6,112,249,944.86 | 679,050,296.06 |
| Subtotal of cash inflows from operating activities | 28,947,857,982.41 | 21,367,200,798.91 |
| Cash paid for goods and services | 15,406,856,581.77 | 13,560,139,182.92 |
| Cash paid to and for employees | 931,350,643.01 | 796,561,408.01 |
Payments of taxes and surcharges
| Payments of taxes and surcharges | 1,712,799,956.34 | 1,212,046,214.97 |
| Cash paid relating to other operating activities | 1,823,488,953.71 | 7,411,593,687.34 |
| Subtotal of cash outflows from operating activities | 19,874,496,134.83 | 22,980,340,493.24 |
| Net cash flows from operating activities | 9,073,361,847.59 | -1,613,139,694.33 |
| II. Cash flows from investment activities: | ||
| Cash received from investments | 2,390,000,000.00 | |
| Cash received from investment income | 375,641,400.00 | 16,861,112.27 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 393,600.22 | 395,843.67 |
| Net cash received from disposal of subsidiaries and other business units | 19,610,260.70 | |
| Cash received relating to other investment activities | 69,843,200.00 | 972,391,073.00 |
| Subtotal of cash inflows from investment activities | 2,855,488,460.92 | 989,648,028.94 |
| Cash paid for purchase of fixed assets, intangible assets and other long-term assets | 3,142,851,174.29 | 1,859,472,457.46 |
| Cash paid on investments | 2,085,954,389.46 | 614,110,000.00 |
| Cash paid relating to other investment activities | 103,042,210.54 | |
| Subtotal of cash outflows from investment activities | 5,331,847,774.29 | 2,473,582,457.46 |
| Net cash flows from investment activities | -2,476,359,313.37 | -1,483,934,428.52 |
| III. Cash flows from financing activities: | ||
| Cash received from capital contribution | 40,000,000.00 | |
| Including: Cash received from capital contributions by minority shareholders of subsidiaries | 40,000,000.00 | |
| Cash received from borrowings | 36,121,975,695.37 | 39,497,574,620.08 |
| Cash received relating to other financing activities | 14,012,509,155.81 | 13,220,512,476.06 |
| Subtotal of cash inflows from financing activities | 50,134,484,851.18 | 52,758,087,096.14 |
| Cash repayments on borrowing | 27,467,045,407.89 | 31,347,684,782.25 |
| Cash paid for dividend and profit distribution or interest payment | 4,438,836,047.90 | 3,743,137,077.79 |
| Cash paid relating to other financing activities | 23,217,117,156.71 | 12,808,232,653.77 |
| Subtotal of cash outflows from financing activities | 55,122,998,612.50 | 47,899,054,513.81 |
| Net cash flows from financing activities | -4,988,513,761.32 | 4,859,032,582.33 |
| IV . Effect of foreign exchange rate changes on cash and cash equivalents | 120,553,325.21 | -28,349,867.42 |
| V. Net increase in cash and cash equivalents | 1,729,042,098.10 | 1,733,608,592.06 |
| Plus: Balance of cash and cash equivalents as at the beginning of the period | 2,804,408,374.46 | 1,979,861,045.62 |
| VI. Balance of cash and cash equivalents as at the end of the period | 4,533,450,472.56 | 3,713,469,637.68 |
8. Cash flow statement of the Company for the period from the beginning of the year to the end of the reporting period
Unit: RMB
| Item | Amounts for the period | Amounts for the prior period |
| I. Cash flows from operating activities: | ||
| Cash received from sales of goods and rendering of services | 5,529,614,111.40 | 4,878,948,116.17 |
| Cash received relating to other operating activities | 2,427,573,406.75 | 1,113,913,447.97 |
| Subtotal of cash inflows from operating activities | 7,957,187,518.15 | 5,992,861,564.14 |
| Cash paid for goods and services | 1,963,218,833.84 | 3,360,835,113.73 |
| Cash paid to and for employees | 299,290,526.60 | 303,489,318.02 |
| Payments of taxes and surcharges | 286,150,551.10 | 281,187,045.12 |
| Cash paid relating to other operating activities | 1,834,166,575.63 | 689,143,413.39 |
| Subtotal of cash outflows from operating activities | 4,382,826,487.17 | 4,634,654,890.26 |
| Net cash flows from operating activities | 3,574,361,030.98 | 1,358,206,673.88 |
| II. Cash flows from investment activities: | ||
| Cash received from investments | 2,350,000,000.00 | |
| Cash received from investment income | 284,041,400.00 | 16,861,111.11 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 17,628.00 | |
| Net cash received from disposal of subsidiaries and other business units | 19,610,260.70 | |
| Cash received relating to other investment activities | 900,000,000.00 | |
| Subtotal of cash inflows from investment activities | 2,653,651,660.70 | 916,878,739.11 |
| Cash paid for purchase of fixed assets, intangible assets and other long-term assets | 47,475,737.37 | 54,575,321.80 |
Cash paid on investments
| Cash paid on investments | 2,301,714,807.50 | 2,673,511,220.00 |
| Subtotal of cash outflows from investment activities | 2,349,190,544.87 | 2,728,086,541.80 |
| Net cash flows from investment activities | 304,461,115.83 | -1,811,207,802.69 |
| III. Cash flows from financing activities: | ||
| Cash received from borrowings | 9,487,503,196.92 | 21,235,270,880.03 |
| Cash received relating to other financing activities | 11,525,489,947.95 | 12,686,968,650.12 |
| Subtotal of cash inflows from financing activities | 21,012,993,144.87 | 33,922,239,530.15 |
| Cash repayments on borrowing | 8,707,654,631.90 | 19,317,134,289.21 |
| Cash paid for dividend and profit distribution or interest payment | 2,426,583,005.38 | 3,220,449,336.43 |
| Cash paid relating to other financing activities | 13,496,703,811.58 | 10,548,021,423.28 |
| Subtotal of cash outflows from financing activities | 24,630,941,448.86 | 33,085,605,048.92 |
| Net cash flows from financing activities | -3,617,948,303.99 | 836,634,481.23 |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | -16,058,996.41 | -368,087.45 |
| V. Net increase in cash and cash equivalents | 244,814,846.41 | 383,265,264.97 |
| Plus: Balance of cash and cash equivalents as at the beginning of the period | 1,020,262,069.85 | 582,578,426.62 |
| VI. Balance of cash and cash equivalents as at the end of the period | 1,265,076,916.26 | 965,843,691.59 |
II. Auditors’ Report
Has the third quarterly report already been audited yet?
□Yes?No
The third quarterly report of the Company is unaudited.
| Board of Directors SHANDONG CHENMING PAPER HOLDINGS LIMITED CHEN HONGGUO Chairman |
Shandong, the PRC25 October 2018
As at the date of this announcement, the executive Directors are Mr. Chen Hongguo, Mr. Li Feng, Mr. Geng Guanglin, Mr. HuChangqing and Mr. Chen Gang; the non-executive Directors are Ms. Yang Guihua and Ms. Zhang Hong; and the independentnon-executive Directors are Ms. Pan Ailing, Ms. Wang Fengrong, Mr. Huang Lei and Ms. Liang Fu.
* For identification purposes only