SHANGDONG CHENMING PAPER HOLDINGS LIMITED
THE 2015 ANNUAL REPORT
March 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 annual report, guarantee that there are no false representations,
misleading statements or material omissions contained in this Report, and are jointly and severally responsible for the liabilities of
the Company.
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 annual report.
All Directors were present in person at the Board meeting to consider and approve this Report.
The Company is exposed to various risk factors such as macro-economic fluctuation, adjustment of state policy, intensified
competition in the industry, as well as change in exchange rate. Investor should be aware of investment risks. For further details,
please refer to the risk factors likely to be faced and the measures to be taken to address them as set out in the outlook on the
future development of the Company in Management Discussion and Analysis.
The proposed profit distribution plan of the Company was considered and passed by the Board: based on the number of the
shares as at the dividend distribution registration date, a dividend of RMB3 (tax inclusive) per 10 shares was to be paid and no
bonus shares (tax inclusive) were to be delivered to all shareholders without increase of share capital from reserves.
I Important Notice, Table of Contents and Definitions
Table of contents
I Important Notice, Table of Contents and Definitions ...............................................................................................
II Company Profile and Key Financial Indicators ........................................................................................................
III Chairman’s Report ................................................................................................................................................... 9
IV Business Overview ................................................................................................................................................... 11
V Management Discussion and Analysis ....................................................................................................................
VI Directors Report ....................................................................................................................................................... 39
VII Material Matters ....................................................................................................................................................... 46
VIII Changes in Share Capital and Shareholders ...........................................................................................................
IX Preference Shares .................................................................................................................................................... 78
X Directors, Supervisors, Senior Management and Staff ............................................................................................
XI Corporate Governance.............................................................................................................................................
XII Financial Report ....................................................................................................................................................... 109
XIII Documents Available for Inspection ........................................................................................................................
2
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
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
Jilin Chenming means Jilin Chenming Paper Co., Ltd.
Shouguang Meilun 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 2015 to 31 December 2015
II Company Profile and Key Financial Indicators
I. Company profile
Stock abbreviation , B Stock Code 000488, 200488
Stock exchanges on which the shares are listed Shenzhen Stock Exchange
Stock abbreviation Chenming Paper Stock Code
Stock exchanges on which the shares are listed The Stock Exchange of Hong Kong Limited
Legal name in Chinese of the Company
Legal short name in Chinese of the Company
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
Registered address No. 595 Shengcheng Road, Shouguang City, Shandong Province
Postal code of registered address
Office address No. 2199 Nongsheng East Road, Shouguang City, Shandong Province
Postal code of office address
Website of the Company http://www.chenmingpaper.com
Email address chenmmingpaper@163.com
II. Contact persons and contact methods
Secretary to the Board Securities Affairs Representative Hong Kong Company Secretary
Name Wang Chunfang Xiao Peng Poon Shiu Cheong
Correspondence No. 2199 East Nongsheng Road, No. 2199 East Nongsheng Road, 22nd Floor, World Wide House,
Address Shouguang City, Shandong Province Shouguang City, Shandong Province Central, Hong Kong
Telephone (86)-0536-2158008 (86)-0536-2158008 (852)-25010088
Facsimile (86)-0536-2158977 (86)-0536-2158977 (852)-25010028
Email address chenmmingpaper@163.com chenmmingpaper@163.com kentpoon_1009@yahoo.com.hk
III. Information disclosure and places for inspection
Designated media for information disclosure China Securities Journal, Shanghai Securities News, Securities Times,
Securities Daily and Hong Kong Commercial Daily
Designated websites for the publication of Domestic: http://www.cninfo.com.cn; Overseas: http://www.hkex.com.hk
the Annual Report as approved by CSRC
Places for inspection of Securities and investment management department of the Company
the Company’s Annual Report
IV. Change in registration
Organisation Code 61358898-6
Change of principal activities since its listing No
Change of the controlling shareholder No
4
II Company Profile and Key Financial Indicators
V. Other relevant information
CPAs engaged by the Company
Name of CPAs Ruihua Certified Public Accountants (Special General Partnership)
CPAs’ Office Address 8-9/F, Block A, Corporation Building, No. 35 Finance Street,
Xicheng District, Beijing
Name of the Signing Certified Wang Yan and Jing Chuanxuan
Public Accountants
Sponsors engaged by the Company to continuously perform its supervisory function during the reporting period
Applicable √ Not applicable
Financial Advisors engaged by the Company to continuously perform its supervisory function during the reporting period
Applicable √ Not applicable
VI. 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
Ye √ No
Increase/decrease for
the year as compared to
2015 2014 the prior year (%)
Revenue (RMB) 20,241,906,131.81 19,101,677,077.69 5.97% 20,388,890,067.41
Net profit attributable to shareholders of
the Company (RMB) 1,021,224,678.04 505,204,384.73 102.14% 710,655,331.72
Net profit after extraordinary gains or losses
attributable to shareholders of the Company (RMB) 719,891,359.63 130,445,644.83 451.87% 406,170,148.25
Net cash flows from operating activities (RMB) -9,721,363,524.30 985,399,735.85 -1,086.54% 1,122,616,800.91
Basic earnings per share (RMB per share) 0.50 0.26 92.31% 0.35
Diluted earnings per share (RMB per share) 0.50 0.26 92.31% 0.35
Rate of return on net assets on weighted average basis 6.73% 3.62% 3.11% 5.11%
Increase/decrease as at
the end of the year
compared to the end of
As at the end of 2015 As at the end of 2014 the prior year (%) As at the end of 2013
Total assets (RMB) 77,961,699,547.59 56,822,026,545.21 37.20% 47,521,883,569.18
Net assets attributable to shareholders of
the Company (RMB) 16,871,494,584.82 13,917,343,301.15 21.23% 14,039,888,226.11
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 from the value date up to 31 December 2015 (amounted to
RMB61,506,739.43) are deducted. For details, please refer to Note XVII. 2 of section XII of this report.
II Company Profile and Key Financial Indicators
VII. 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.
VIII. Key Financial Indicators by Quarter
Unit: RMB
1Q 2Q 3Q 4Q
Revenue 4,456,654,640.64 5,262,043,037.12 5,176,528,453.85 5,346,680,000.20
Net profit attributable to shareholders of the Company 96,137,359.80 180,250,710.71 284,937,568.33 459,899,039.20
Net profit after extraordinary gains or losses
attributable to shareholders of the Company 47,531,100.97 126,931,118.97 209,199,874.65 336,229,265.04
Net cash flows from operating activities -524,893,745.34 -1,697,861,889.39 -6,401,707,699.70 -1,096,900,189.87
Whether the above indicators or their aggregated amounts have any material difference with the respective amounts as
disclosed in the quarterly report or interim report
Yes √ No
6
II Company Profile and Key Financial Indicators
IX. Five-year financial summary under Hong Kong Financial Reporting Standards
Unit: RMB’ 0,000
For the year ended 31 December
2015 2014 2013 2012
Revenue 2,024,191 1,910,168 2,038,889 1,976,168 1,774,749
Profit before tax 141,017 56,101 86,629 -1,614 69,899
Tax 43,224 10,770 17,594 -6,283 11,026
Profit for the current period attributable
to shareholders of the listed company 102,122 50,520 71,066 22,103 60,827
Minority interests -4,329 -5,190 -2,030 -17,435 -1,954
Basic earnings per share (RMB/share) 0.50 0.26 0.35 0.11 0.29
Rate of return on net assets on
weighted average basis (%) 6.73% 3.62% 5.11% 1.63% 4.50%
Unit: RMB’ 0,000
For the year ended 31 December
2015 2014 2013 2012
Total assets 7,796,170 5,682,203 4,752,188 4,772,542 4,563,083
Total liabilities 6,070,277 4,247,396 3,288,353 3,338,000 3,064,305
Minority interests 38,743 43,073 59,847 58,592 145,915
Equity attributable to shareholders of
the listed company 1,687,149 1,391,734 1,403,989 1,375,950 1,352,862
Net current assets/(liabilities) -1,347,029 -452,549 -106,347 24,638 -268,280
Total assets less current liabilities 2,932,756 2,872,637 2,823,321 2,775,419 2,571,188
II Company Profile and Key Financial Indicators
X. Items and amounts of extraordinary gains or losses
√ Applicable Not applicable
Unit: RMB
Item Amounts for 2015 Amounts for 2014 Amounts for 2013 Explanation
Profit or loss from disposal of non-current
assets (including write-off of provision for
assets impairment) 18,317,909.85 65,276,190.37 -6,367,477.99
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 244,716,579.78 260,000,612.10 174,947,619.19
Gain arising from investment costs for
acquisition of subsidiaries, associates
and joint-ventures by the corporation
being less than its share of fair value of
identifiable net assets of the investees
on acquisition 2,408,368.37
Profit or loss from debt restructuring 32,089,863.80 1,725,797.17 268,577.19
Gain or loss on external entrusted loans 94,777,777.77 82,833,581.81
Non-operating gains and losses othe
