Report for the First Quarrter of 2018 of S Chennming Paper Hooldings Limited
SHANDONG CHENNMING PAPEER HOLLDINGGS LIMITED
20018 First Quarterly Repoort
A 20118
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
I Important Notice
The board of directors (the “Board”), the supervisory committee
(the“Supervisory Committee”), the directors (the “Director”), supervisors (the
“Supervisors”) and senior management (the “Senior Management”) of the
Company hereby warrant that the contents of this quarterly report are true,
accurate and complete, and there are no false representations, misleading
statements or material omissions, and are jointly and severally responsible for
the liabilities of the Company.
All Directors were present at the Board meeting to consider and approve
this quarterly report.
Chen Hongguo, the head of the Company, Hu Jinbao, the head in charge of
accounting, and Zhang Bo, the head of the accounting department （Accounting
Officer), declare that they warrant the truthfulness, accuracy and completeness
of the financial statements in this quarterly report.
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
II. General Information of the Company
I. Major financial data and financial indicators
Retrospective adjustment to or restatement of the accounting data for prior years by the Company
□ Yes √ No
Increase/decrease compared
Corresponding period of
The reporting period to the corresponding period
prior year
of the prior year
Revenue (RMB) 7,241,811,895.12 6,274,273,821.63 15.42%
Net profit attributable to shareholders of the
782,500,357.98 702,517,923.91 11.39%
Company (RMB)
Net profit after extraordinary gains or losses
attributable to shareholders of the Company 733,118,818.26 615,479,547.22 19.11%
(RMB)
Net cash flows from operating activities
1,267,680,953.19 -1,799,933,755.66 170.43%
(RMB)
Basic earnings per share (RMB per share) 0.31 0.29 6.90%
Diluted earnings per share (RMB per share) 0.31 0.29 6.90%
Rate of return on net assets on weighted
3.32% 3.67% -0.35%
average basis
Increase/decrease as at the
As at the end of the As at the end of the prior end of the reporting period
reporting period year compared to the end of the
prior year
Total assets (RMB) 107,080,769,428.79 105,625,096,076.92 1.38%
Net assets attributable to shareholders of the
28,743,611,313.74 27,778,529,074.90 3.47%
Company (RMB)
Items and amounts of extraordinary gains or losses
√ Applicable □ Not applicable
Unit: RMB
Amounts for the period from
Item the beginning of the year to Note
the end of the reporting period
Profit or loss from disposal of non-current assets (including
write-off of provision for assets impairment) -833,628.51
Government grants (except for the government grants closely
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
related to the normal operation of the Company and granted 33,384,235.89
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
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 18,500,000.00
from disposal of financial assets held for trading and financial
liabilities held for trading and available-for-sale financial assets
Non-operating income and expenses other than the above items
2,332,415.27
Less: Effect of income tax
3,695,386.20
Effect of minority interest (after tax)
306,096.73
Total --
49,381,539.72
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.
II. Total number of shareholders and the shareholding of the top ten shareholders as at the
end of the reporting period
1. 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
Total number of shareholders of 98,301, of which 79,067were holders of A of preference shares with
ordinary shares as at the end of the shares, 18,866 were holders of B shares and restored voting right as at the
reporting period 368 were holders of H shares end of the reporting period (if
any)
Shareholding of top 10 shareholders
Name of shareholders Nature of Percentage of Number of Number of Share pledged or
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
shareholders shareholding shares held restricted locked-up
shares held
Status of
Number
shares
SHOUGUANG CHENMING HOLDINGS State-owned
15.13% 293,003,657 0 Pledged 193,939,100
COMPANY LIMITED legal person
Overseas legal
HKSCC NOMINEES LIMITED 12.85% 248,905,750
person
CHENMING HOLDINGS (HONG KONG) Overseas legal
12.54% 242,754,375
LIMITED person
CENTRAL HUIJIN ASSET State-owned
2.07% 40,137,900
MANAGEMENT LTD. legal person
Domestic nature
JIAO Yanxi 0.52% 9,978,637
person
CHINA UNIVERSAL FUND- CHINA
CONSTRUCTION BANK - CHINA LIFE
INSURANCE - CHINA LIFE
Others 0.47% 9,134,240
INSURANCE’SEQUITY
PORTFOLIOENTRUSTED TO CHINA
UNIVERSAL FUND
VANGUARD EMERGING MARKETS Overseas legal
0.44% 8,608,238
STOCK INDEX FUND person
INDUSTRIAL AND COMMERCIAL
BANK OF CHINA - CHINA UNIVERSAL Others 0.39% 7,500,009
FOCUSED GROWTH FUND
Domestic nature
Chen Hongguo 0.35% 6,696,296 5,022,222
person
VANGUARD TOTAL INTERNATIONAL Overseas legal
0.33% 6,301,672
STOCK INDEX FUND person
Shareholding of the top ten shareholders of non-restricted shares
Number of Class of shares
Name of shareholders non-restricted shares
Class of shares Number
held
RMB ordinary
SHOUGUANG CHENMING HOLDINGS COMPANY LIMITED 293,003,657 293,003,657
shares
Overseas listed
HKSCC NOMINEES LIMITED 248,905,750 248,905,750
foreign shares
Domestic listed
140,478,375
CHENMING HOLDINGS (HONG KONG) LIMITED 242,754,375 foreign shares
Overseas listed 102,276,000
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
foreign shares
RMB ordinary
CENTRAL HUIJIN ASSET MANAGEMENT LTD. 40,137,900 40,137,900
shares
RMB ordinary
JIAO Yanxi 9,978,637 9,978,637
shares
CHINA UNIVERSAL FUND- CHINA CONSTRUCTION BANK -
RMB ordinary
CHINA LIFE INSURANCE - CHINA LIFE INSURANCE’SEQUITY 9,134,240 9,134,240
shares
PORTFOLIOENTRUSTED TO CHINA UNIVERSAL FUND
Domestic listed
VANGUARD EMERGING MARKETS STOCK INDEX FUND 8,608,238 8,608,238
foreign shares
INDUSTRIAL AND COMMERCIAL BANK OF CHINA - CHINA RMB ordinary
7,500,009 7,500,009
UNIVERSAL FOCUSED GROWTH FUND shares
Domestic listed
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 6,301,672 6,301,672
foreign shares
Domestic listed
LSV EMERGING MARKETS EQUITY FUND,L.P. 6,102,800 6,102,800
foreign shares
A shareholder, Chenming Holdings (Hong Kong) Limited, which is an overseas legal person, is a
wholly-owned subsidiary of a shareholder, Shouguang Chenming Holdings Company Limited, which
Related relationship or acting
is a state-owned legal person. Hence they are persons acting in concert under Administration of
in concert among the above
Disclosure of Information on the Change of Shareholding in Listed Companies Procedures. Save for
shareholders
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 with each other.
Whether an agreed repurchase transaction was entered into during the reporting period by the top 10 ordinary shareholders and top 10
shareholders 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 any
agreed 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 □ Not applicable
Unit: share
Total number of shareholders of
preference shares as at the end of the
reporting period
Shareholding of the top ten shareholders of preference shares
Percentage Number of Share pledged or
Nature of Number of
Name of shareholders of restricted locked-up
shareholders shares held
shareholdi shares held Status of Number
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
ng shares
Domestic
BEIJING YIBEN ZHONGXING
non-state-owned 27.78% 12,500,000 0 Pledged 12,500,000
INVESTMENT MANAGEMENT CO., LTD.
legal person
BANK OF COMMUNICATIONS
INTERNATIONAL TRUST CO., LTD. - Others 22.44% 10,100,000
HUILI NO.167 SINGLE CAPITAL TRUST
BANK OF COMMUNICATIONS
INTERNATIONAL TRUST CO., LTD. - Others 14.22% 6,400,000
HUILI NO.136 SINGLE CAPITAL TRUST
QILU BANK CO., LTD. - QILU BANK
QUANXIN WEALTH MANAGEMENT Others 13.33% 6,000,000
PRODUCT SERIES
Domestic
HENGFENG BANK CO., LTD. non-state-owned 11.11% 5,000,000
legal person
SHANGHAI STATE-OWNED ASSETS State-owned legal
6.67% 3,000,000
OPERATION CO., LTD. person
NCF - MINSHENG BANK - CHINA
FORTUNE INTERNATIONAL TRUST -
Others 4.44% 2,000,000
CHINA FORTUNE TRUSTMIN XIN NO.
11 SINGLE CAPITAL TRUST
Shareholders of preference shares, namely “BANK OF COMMUNICATIONS
INTERNATIONAL TRUST CO., LTD. - HUILI NO.167 SINGLE CAPITAL
TRUST” and “BANK OF COMMUNICATIONS INTERNATIONAL TRUST
Related relationship or acting in concert among
CO., LTD. - HUILI NO.136 SINGLE CAPITAL TRUST”, are persons acting in
the above shareholders
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 with each other.
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
III Material matters
I. Details and reasons for changes of major financial data and financial indicators during the
reporting period
√ Applicable □ Not applicable
(I) Analysis of the assets and liabilities of the Company
Unit: RMB
Item 31 March 2018 31 December 2017 Change Reason for change
Goodwill 49,364,594.99 20,283,787.17 143.37% (1)
Advance receipts 427,243,722.99 243,182,891.22 75.69% (2)
Staff remuneration payables 106,813,340.85 185,130,892.10 -42.30% (3)
Interest payable 47,928,028.59 85,480,380.32 -43.93% (4)
Bonds payable 1,198,395,304.75 2,196,261,279.57 -45.43% (5)
Other non-current liabilities 1,246,666,667.00 250,000,000.00 398.67% (6)
Explanation of the reasons leading to the major changes:
(1)Goodwill increased by 143.37% as compared to the beginning of the year mainly due to the positive goodwill arising from the
acquisition of 30% equity interest in Shanghai Hongtai by the Company.
(2) Advance receipts increased by 75.69% as compared to the beginning of the year mainly due to the increase of advance receipts
received by the Company.
(3) Staff remuneration payables decreased by 42.30% as compared to the beginning of the year mainly due to the payment of annual
performance bonus by the Company during the reporting period.
(4) Interest payable decreased by 43.93% as compared to the beginning of the year mainly due to the repayment of the interest on
RMB1,000 million corporate bonds by the financial leasing company.
(5) Bonds payable decreased by 45.43% as compared to the beginning of the year mainly due to the repayment of RMB1,000 million
corporate bonds by the financial leasing company.
(6) Other non-current liabilities increased by 398.67% as compared to the beginning of the year mainly due to the issue of RMB1,000
million medium-term notes by the Company during the reporting period
(II) Reasons for significant year on year changes of income statement items during the reporting period
Unit: RMB
Item January – March2018 January – March2017 Change Reason for change
Sales revenue 7,241,811,895.12 6,274,273,821.63 15.42% (1)
Taxes and surcharges 62,538,374.77 54,684,663.59 14.36% (2)
Selling and distribution 270,903,272.57 304,176,522.86 -10.94% (3)
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
expenses
General and
495,307,657.40 413,588,829.04 19.76% (4)
administrative expenses
Loss on impairment
59,082,697.85 23,825,034.05 147.99% (5)
of assets
Financial expenses 768,650,745.61 472,931,576.60 62.53% (6)
Explanation of the reasons leading to the major changes:
(1) Sales revenue increased by 15.42% as compared to the corresponding period of last year mainly due to a year-on-year increase in
the prices of machine-made paper.
(2)Taxes and surcharges increased by 14.36% as compared to the corresponding period of last year mainly due to a year-on-year
increase in the Company’s sales revenue and gross profit margin.
(3)Selling and distribution expenses decreased by 10.94% as compared to the corresponding period of last year mainly due to the
tighter control on selling and distribution expenses by the Company.
(4)General and administrative expenses increased by 19.76% as compared to the corresponding period of last year mainly due to a
year-on-year increase in R&D expenditure.
(5)Loss on impairment of assets increased by 147.99% as compared to the corresponding period of last year mainly due to the
amendment to the bad debt policy of the financial leasing business at the end of last year by the Company.
(6) Financial expenses increased by 62.53% as compared to the corresponding period of last year mainly due to a year-on-year
increase in the debt size and financing costs of the Company.
(III) Analysis of cash flows during the reporting period
Unit: RMB
Item January - March 2018 January - March 2017 Change Reason for change
Net cash flows from operating
1,267,680,953.19 -1,799,933,755.66 170.43% (1)
activities
Net cash flows from investment
-1,724,411,977.89 147,890,412.84 -1266.01% (2)
activities
Net cash flows from financing
-134,535,571.79 2,013,126,167.07 -106.68% (3)
activities
Explanation of the reasons leading to the major changes:
(1)Net cash flows from operating activities increased by 170.43%as compared to the beginning of the year mainly due to an increase
in sales revenue resulting from the increase in the prices of machine-made paper and a decrease in net leasing of the financial leasing
business as compared to the corresponding period of last year.
(2)Net cash flows from investing activities decreased by 1,266.01%as compared to the beginning of the year mainly due to the
acquisition of 30% equity interest in Shanghai Hongtai by the Company.
(3)Net cash flows from financial activities decreased by 106.68%as compared to the beginning of the year mainly due to the
expansion of the debt size controlled by the Company.
II. Progress in respect to material matters and analysis of the related effects and solutions
□ Applicable √ Not applicable
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
III. Undertakings made by parties involved in undertakings including the Company’s
beneficial controllers, shareholders, related parties, bidders and the Company subsisting
during the reporting period
□ Applicable √ Not applicable
During the reporting period, there were no undertakings made by parties involved in undertakings including the Company’s
beneficial controllers, shareholders, related parties, bidders and the Company subsisting during the reporting period.
IV. Estimate of the operating results for January - June 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 to
be at a loss or expected to have material changes as compared to the corresponding period of prior year and its explanation
□ Applicable √ Not applicable
V. Security investments
□ Applicable √ Not applicable
The Company did not have any security investments during the reporting period.
VI. Derivatives investments
□Applicable √ Not applicable
The Company did not have any derivative investments during the reporting period.
VII. Registration report on reception of research investigations, communications and
interviews during the reporting period
□ Applicable √ Not applicable
The Company did not have any reception of research investigations, communications and interviews during the reporting period.
VIII. External guarantees against the rules and regulations
□ Applicable √ Not applicable
There was no external guarantee provided by the Company which was against the rules and regulations during the reporting period.
IX. Appropriation of funds of the Company by the controlling shareholder and its related
parties for non-operating purposes
□ Applicable √ Not applicable
There was no appropriation of funds of the Company by the controlling shareholder and its related parties for non-operating purposes
during the reporting period.
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
IV Financial Statements
I. Financial Statements
1. Consolidated Balance Sheet
Prepared by: Shandong Chenming Paper Holdings Limited
31 March 2018
Unit: RMB
Item Closing balance Opening balance
CURRENT ASSETS:
Monetary funds 15,089,639,413.59 14,443,492,461.43
Financial assets at fair value
112,500,000.00 94,000,000.00
through profit or loss
Bills receivable 3,916,254,267.61 4,220,231,853.56
Accounts receivable 3,869,956,800.54 3,665,865,577.03
Prepayments 1,981,625,567.07 1,962,151,473.35
Other receivables 658,325,916.30 538,734,656.55
Inventories 6,632,665,030.29 6,022,805,491.17
Non-current assets due within one
6,932,124,260.47 6,901,695,875.94
year
Other current assets 9,374,699,651.53 11,568,757,330.26
Total current assets 48,567,790,907.40 49,417,734,719.29
NON-CURRENT ASSETS:
Available-for-sale financial assets 2,453,000,000.00 2,453,000,000.00
Long-term receivables 11,118,982,838.89 9,400,862,089.18
Long-term equity investments 408,356,486.31 391,868,827.45
Investment properties 4,785,281,837.13 4,809,535,109.82
Fixed assets 28,169,837,026.84 28,227,509,503.05
Construction in progress 8,460,922,302.89 7,668,669,413.87
Construction materials 10,090,951.74 15,275,630.45
Intangible assets 1,925,863,054.11 2,059,221,379.09
Goodwill 49,364,594.99 20,283,787.17
Long-term prepaid expenses 137,283,507.52 139,122,569.45
Deferred income tax assets 523,792,145.93 522,288,850.40
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
Other non-current assets 470,203,775.04 499,724,197.70
Total non-current assets 58,512,978,521.39 56,207,361,357.63
Total assets 107,080,769,428.79 105,625,096,076.92
CURRENT LIABILITIES:
Short-term borrowings 35,711,413,757.44 35,096,574,873.03
Bills payable 1,595,333,518.56 1,278,395,090.71
Accounts payable 3,146,107,129.21 4,013,936,527.74
Advance receipts 427,243,722.99 243,182,891.22
Staff remuneration payables 106,813,340.85 185,130,892.10
Taxes payable 506,766,970.98 496,626,014.68
Interest payable 47,928,028.59 85,480,380.32
Other payables 1,530,547,398.00 1,426,629,545.41
Non-current liabilities due within
3,529,882,896.40 3,625,430,347.40
one year
Other current liabilities 12,907,095,864.17 10,797,248,631.76
Total current liabilities 59,509,132,627.19 57,248,635,194.37
NON-CURRENT LIABILITIES:
Long-term borrowings 7,191,782,466.97 7,646,122,995.91
Bonds payable 1,198,395,304.75 2,196,261,279.57
Long-term payables 5,431,980,150.13 5,550,881,435.64
Special payables 681,039,716.66 681,039,716.66
Provisions 325,259,082.28 325,259,082.28
Deferred income 1,430,904,842.12 1,452,717,833.55
Other non-current liabilities 1,246,666,667.00 250,000,000.00
Total non-current liabilities 17,506,028,229.91 18,102,282,343.61
TOTAL LIABILITIES 77,015,160,857.10 75,350,917,537.98
OWNERS’ EQUITY:
Share capital 1,936,405,467.00 1,936,405,467.00
Other equity instruments 10,048,300,000.00 10,048,300,000.00
Including: Preference shares 4,477,500,000.00 4,477,500,000.00
Perpetual bonds 5,570,800,000.00 5,570,800,000.00
Capital reserves 6,149,257,784.90 6,149,257,784.90
Other comprehensive income -73,483,246.94 -354,165,127.80
Surplus reserves 1,132,116,106.40 1,132,116,106.40
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
Retained profit 9,551,015,202.38 8,866,614,844.40
Total equity attributable to equity
28,743,611,313.74 27,778,529,074.90
holders of the company
Minority interest 1,321,997,257.95 2,495,649,464.04
Total owners’ equity 30,065,608,571.69 30,274,178,538.94
TOTAL LIABILITIES AND
107,080,769,428.79 105,625,096,076.92
OWNERS’ EQUITY
Legal Representative: Financial controller: Head of the financial department:
Chen Hongguo Hu Jinbao Zhang Bo
2. Balance sheet of the Company
Unit: RMB
Item Closing balance Opening balance
CURRENT ASSETS:
Monetary funds 9,441,442,393.70 9,580,548,200.88
Financial assets at fair value
112,500,000.00 94,000,000.00
through profit or loss
Bills receivable 923,114,795.94 787,095,075.51
Accounts receivable 1,334,746,219.41 8,188,750.45
Prepayments 655,328,549.76 742,107,273.09
Other receivables 26,863,440,842.76 22,351,203,484.83
Inventories 804,406,410.36 751,426,520.51
Other current assets 3,256,461.13 2,488,977.72
Total current assets 40,138,235,673.06 34,317,058,282.99
NON-CURRENT ASSETS:
Available-for-sale financial assets 2,453,000,000.00 2,453,000,000.00
Long-term receivables 456,925,607.06 456,925,607.06
Long-term equity investments 18,662,876,221.53 18,674,034,243.49
Fixed assets 2,177,471,274.40 2,364,990,246.94
Construction in progress 1,303,979,588.96 973,375,557.42
Intangible assets 467,348,695.74 470,379,203.58
Deferred income tax assets 168,294,583.66 186,935,887.68
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
Other non-current assets 54,800,000.00 54,800,000.00
Total non-current assets 25,744,695,971.35 25,634,440,746.17
Total assets 65,882,931,644.41 59,951,499,029.16
CURRENT LIABILITIES:
Short-term borrowings 7,278,360,581.34 7,522,637,247.14
Bills payable 6,978,205,900.00 6,375,070,000.00
Accounts payable 1,793,381,184.53 570,706,495.21
Advance receipts 1,435,718,563.63 956,040,917.07
Staff remuneration payables 37,774,561.75 47,546,116.66
Taxes payable 100,627,697.68 116,173,781.96
Interest payable 47,928,028.59 28,428,028.58
Other payables 2,739,303,962.12 2,162,553,106.46
Non-current liabilities due within
1,743,985,162.45 1,318,429,260.12
one year
Other current liabilities 12,907,095,864.17 10,797,248,631.76
Total current liabilities 35,062,381,506.26 29,894,833,584.96
NON-CURRENT LIABILITIES:
Long-term borrowings 742,724,996.42 908,182,122.65
Bonds payable 1,198,395,304.75 1,198,305,304.75
Long-term payables 4,514,290,046.62 4,605,691,332.13
Provisions 325,259,082.28 325,259,082.28
Deferred income 49,667,895.95 50,753,189.60
Other non-current liabilities 1,246,666,667.00 250,000,000.00
Total non-current liabilities 8,077,003,993.02 7,338,191,031.41
TOTAL LIABILITIES 43,139,385,499.28 37,233,024,616.37
OWNERS’ EQUITY:
Share capital 1,936,405,467.00 1,936,405,467.00
Other equity instruments 10,048,300,000.00 10,048,300,000.00
Including: Preference shares 4,477,500,000.00 4,477,500,000.00
Perpetual bonds 5,570,800,000.00 5,570,800,000.00
Capital reserves 5,938,960,168.19 5,938,960,168.19
Surplus reserves 1,119,926,524.49 1,119,926,524.49
Retained profit 3,699,953,985.45 3,674,882,253.11
Total owners’ equity 22,743,546,145.13 22,718,474,412.79
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
TOTAL LIABILITIES AND
65,882,931,644.41 59,951,499,029.16
OWNERS’ EQUITY
3. Consolidated income statement
Unit: RMB
Item Amounts for the period Amounts for the prior period
I. Total revenue 7,241,811,895.12 6,274,273,821.63
Including: Revenue 7,241,811,895.12 6,274,273,821.63
II. Total operating costs 6,348,793,347.27 5,540,639,425.53
Including: Operating costs 4,692,310,599.07 4,271,432,799.39
Taxes and surcharges 62,538,374.77 54,684,663.59
Sales and distribution
270,903,272.57 304,176,522.86
expenses
General and administrative
495,307,657.40 413,588,829.04
expenses
Finance expenses 768,650,745.61 472,931,576.60
Loss on impairment of assets 59,082,697.85 23,825,034.05
Plus: Gain on change in fair value
18,500,000.00
(“-” denotes loss)
Investment income
38,745,214.22 34,080,946.51
(“-” denotes loss)
Including: Investment income
from associates -5,008,613.46 -5,602,501.04
and joint ventures
Gain on disposal of assets
5,264.44 -921,000.44
(“-” denotes loss)
Other income 35,587,255.87
III. Operating profit (“-” denotes loss) 985,856,282.38 766,794,342.17
Plus: Non-operating income 2,608,937.24 98,493,848.65
Less: Non-operating expenses 905,848.50 429,165.35
IV. Total profit (“-” denotes total loss) 987,559,371.12 864,859,025.47
Less: Income tax expenses 207,172,541.16 165,263,056.51
V. Net profit (“-” denotes net loss) 780,386,829.96 699,595,968.96
(I) Net profit from continuing
780,386,829.96 699,595,968.96
operations (“-” denotes net loss)
(II) Net profit from discontinued - -
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
operations(“-” denotes net loss)
Net profit attributable to
782,500,357.98 702,517,923.91
shareholders of the Company
Profit or loss of minority interest -2,113,528.02 -2,921,954.95
VI. Net other comprehensive income
280,681,880.86 36,500,385.95
after tax
Net other comprehensive income after
tax attributable to shareholders of the 280,681,880.86 36,500,385.95
Company
(I) Other comprehensive income that
will not be reclassified to profit - -
or loss in sub sequent periods
(II) Other comprehensive income
that will be reclassified to profit 280,681,880.86 36,500,385.95
or loss in subsequent periods
1. Exchange differences on
280,681,880.86 36,500,385.95
translation of foreign operations
Net other comprehensive income after
- -
tax attributable to minority interest
VII. Total comprehensive income 1,061,068,710.82 736,096,354.91
Total other comprehensive income
attributable to shareholders of the 1,063,182,238.84 739,018,309.86
Company
Total comprehensive income
-2,113,528.02 -2,921,954.95
attributable to minority interest
VIII. Earnings per share:
(I) Basic earnings per share 0.31 0.29
(II) Diluted earnings per share 0.31 0.29
Legal Representative: Financial controller: Head of the financial department:
Chen Hongguo Hu Jinbao Zhang Bo
4. Income statement of the Company
Unit: RMB
Item Amounts for the period Amounts for the prior period
I. Revenue 1,450,100,125.24 1,825,135,337.89
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
Less: Operating costs 1,004,299,850.90 1,346,106,037.13
Taxes and surcharges 23,185,158.78 22,146,157.86
Sales and distribution
41,118,479.35 61,708,995.39
expenses
General and administrative
128,845,305.73 157,074,579.69
expenses
Finance expenses 160,195,809.53 133,730,116.49
Loss on impairment of assets -3,637,308.53 10,581,405.57
Plus: Gain on change in fair value
18,500,000.00
(“-” denotes loss)
Investment income
35,095,805.72 39,583,206.16
(“-” denotes loss)
Including: Investment income
from associates -154,294.28 -97,092.16
and joint ventures
Gain on disposal of assets
121.63 19,293.30
(“-” denotes loss)
Other income 1,085,293.65
II. Operating profit (“-” denotes loss) 150,774,050.48 133,390,545.22
Plus: Non-operating income 164,617.03 1,682,622.31
Less: Non-operating expenses 621,903.47
III. Total profit (“-” denotes total loss) 150,316,764.04 135,073,167.53
Less: Income tax expenses 18,641,304.02 10,663,012.86
IV. Net profit (“-” denotes net loss) 131,675,460.02 124,410,154.67
(I) Net profit from continuing
operations (“-” denotes net 131,675,460.02 124,410,154.67
loss)
(II) Net profit from discontinued
operations (“-” denotes net - -
loss)
V. Net other comprehensive income
- -
after tax
(I) Other comprehensive income
that will not be reclassified to - -
profit or loss in subsequent periods
(II) Other comprehensive income
that will be reclassified to profit or - -
loss in subsequent periods
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
VI. Total comprehensive income 131,675,460.02 124,410,154.67
VII. Earnings per share
(I) Basic earnings per share - -
(II) Diluted earnings per share - -
5. Consolidated cash flow statement
Unit: RMB
Item Amounts for the period Amounts for the prior period
I. Cash flows from operating activities:
Cash received from sales of goods
8,279,206,351.45 6,071,765,519.77
and rendering of services
Tax rebates received 2,412,586.40 49,253.28
Cash received relating to other
580,565,896.58 344,275,340.11
operating activities
Subtotal of cash inflows from operating
8,862,184,834.43 6,416,090,113.16
activities
Cash paid for goods and services 6,100,012,550.54 4,284,027,734.66
Cash paid to and for employees 338,948,088.15 254,685,584.47
Payments of taxes and surcharges 497,568,122.37 349,632,991.79
Cash paid relating to other
657,975,120.18 3,327,677,557.90
operating activities
Subtotal of cash outflows from
7,594,503,881.24 8,216,023,868.82
operating activities
Net cash flows from operating
1,267,680,953.19 -1,799,933,755.66
activities
II. Cash flows from investment
activities:
Cash received from investments 30,000,000.00 -
Cash received from investment
112,541,400.00 13,750,000.00
income
Net cash received from disposal of
fixed assets, intangible assets and 17,384.00 -
other long-term assets
Cash received relating to other
- 518,764,372.00
investment activities
Subtotal of cash inflows from
142,558,784.00 532,514,372.00
investment activities
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
Cash paid for purchase of fixed
assets, intangible assets and other 591,970,761.89 384,623,959.16
long-term assets
Cash paid on investments 1,171,957,789.46
Cash paid relating to other
103,042,210.54
investment activities
Subtotal of cash outflows from
1,866,970,761.89 384,623,959.16
investment activities
Net cash flows from investment
-1,724,411,977.89 147,890,412.84
activities
III. Cash flows from financing
activities:
Cash received from borrowings 9,233,253,564.49 13,559,751,515.69
Cash received from issuance of
997,000,000.00
bonds
Cash received relating to other
6,034,958,302.56 5,011,942,828.52
financing activities
Subtotal of cash inflows from financing
15,268,211,867.05 19,568,694,344.21
activities
Cash repayments on borrowing 10,182,447,626.95 12,943,894,864.13
Cash paid for dividend and profit
651,766,445.79 468,301,155.59
distribution or interest payment
Cash paid relating to other
4,568,533,366.10 4,143,372,157.42
financing activities
Subtotal of cash outflows from
15,402,747,438.84 17,555,568,177.14
financing activities
Net cash flows from financing
-134,535,571.79 2,013,126,167.07
activities
IV. Effect of foreign exchange rate
-18,600,721.48 -12,654,907.93
changes on cash and cash equivalents
V. Net increase in cash and cash
-609,867,317.97 348,427,916.32
equivalents
Plus: Balance of cash and cash
equivalents as at the 2,804,408,374.46 1,979,861,045.62
beginning of the period
VI. Balance of cash and cash
equivalents as at the end of the 2,194,541,056.49 2,328,288,961.94
period
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
6. Cash flow statement of the Company
Unit: RMB
Item Amounts for the period Amounts for the prior period
I. Cash flows from operating activities:
Cash received from sales of goods
1,646,162,348.96 2,043,512,964.97
and rendering of services
Cash received relating to other
21,435,511.08 2,307,363,848.50
operating activities
Subtotal of cash inflows from operating
1,667,597,860.04 4,350,876,813.47
activities
Cash paid for goods and services 800,010,191.80 1,596,601,181.89
Cash paid to and for employees 109,109,796.36 91,590,954.26
Payments of taxes and surcharges 129,294,420.54 93,278,359.86
Cash paid relating to other
2,483,754,448.42 14,107,297.75
operating activities
Subtotal of cash outflows from
3,522,168,857.12 1,795,577,793.76
operating activities
Net cash flows from operating
-1,854,570,997.08 2,555,299,019.71
activities
II. Cash flows from investment
activities:
Cash received from investments 30,000,000.00 -
Cash received from investment
112,541,400.00 13,750,000.00
income
Cash received relating to other
- 500,000,000.00
investment activities
Subtotal of cash inflows from
142,541,400.00 513,750,000.00
investment activities
Cash paid for purchase of fixed
assets, intangible assets and other 6,127,000.00 246,066.75
long-term assets
Cash paid on investments - 2,000,000,000.00
Subtotal of cash outflows from
6,127,000.00 2,000,246,066.75
investment activities
Net cash flows from investment
136,414,400.00 -1,486,496,066.75
activities
III. Cash flows from financing
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
activities:
Cash received from borrowings 2,680,503,196.92 2,805,500,000.00
Cash received relating to other
5,408,064,947.95 4,495,241,096.00
financing activities
Subtotal of cash inflows from financing
8,088,568,144.87 7,300,741,096.00
activities
Cash repayments on borrowing 3,605,796,202.77 3,585,574,810.02
Cash paid for dividend and profit
438,519,151.51 374,131,591.29
distribution or interest payment
Cash paid relating to other
2,710,525,941.91 4,660,350,945.07
financing activities
Subtotal of cash outflows from
6,754,841,296.19 8,620,057,346.38
financing activities
Net cash flows from financing
1,333,726,848.68 -1,319,316,250.38
activities
IV. Effect of foreign exchange rate
changes on cash and cash 5,801,533.68 42,600.81
equivalents
V. Net increase in cash and cash
-378,628,214.72 -250,470,696.61
equivalents
Plus: Balance of cash and cash
equivalents as at the 1,020,262,069.85 582,578,426.62
beginning of the period
VI. Balance of cash and cash
equivalents as at the end of the 641,633,855.13 332,107,730.01
period
II. Auditors’ Report
Has the first quarterly report already been audited yet?
□ Yes √ No
The first quarterly report of the Company is unaudited.
By order of the Board
Shandong Chenming Paper Holdings Limited
26 April 2018
