2021-08-26-深交所-晨_鸣Ｂ_2021年半年度报告（英文版）_197页_919kb

Summary of SHANDONG CHENMING PAPER HOLDINGS LIMITED 2021 Interim Report

Core Content Overview

SHANDONG CHENMING PAPER HOLDINGS LIMITED (hereinafter referred to as the Company) released its 2021 Interim Report, covering the period from 1 January 2021 to 30 June 2021. The report outlines the Company's business operations, financial performance, corporate governance, and risk management strategies.

Main Financial Highlights

Item	2021 (RMB)	2020 (RMB)	Year-on-Year Change
Revenue	17,172,816,354.53	13,599,805,765.86	+26.27%
Net Profit Attributable to Shareholders	2,021,095,417.54	516,326,703.48	+291.44%
Net Profit After Extraordinary Items	1,964,718,180.70	67,882,116.23	+2,794.31%
Net Cash Flows from Operating Activities	4,747,185,521.94	2,327,033,784.68	+104.00%
Basic Earnings per Share	0.604	0.051	+1,084.31%
Diluted Earnings per Share	0.604	0.051	+1,084.31%
Return on Weighted Average Net Assets	8.94%	0.84%	+8.10 percentage points
Total Assets	90,601,029,144.35	91,575,457,828.62	-1.06%
Net Assets Attributable to Shareholders	23,295,559,729.26	24,276,968,789.00	-4.04%

The Company reported significant growth in revenue and net profit, with a notable increase in profitability due to the integration of pulp and paper production. The cost advantages from this strategy contributed to enhanced financial performance.

Key Business Activities

• Principal Activities: The Company is a leading player in the Chinese papermaking industry, focusing on pulp production and paper manufacturing. It has maintained a leading position in economic efficiency for over 20 years and has been on the Fortune 500 list for 12 years.
• Production Capacity: The Company has an annual pulp and paper production capacity exceeding 11 million tonnes, with six production bases across Shandong, Guangdong, Hubei, Jiangxi, Jilin, and other regions.
• Product Range: It offers products in seven series, including high-end offset paper, white paper board, coated paper, light weight coated paper, household paper, electrostatic copy paper, and thermal paper.
• Brands: The Company owns several well-known brands such as "CHENMING BIYUNTIAN", "GOLDEN MINGYANG", and "CHENMING EAGLE", with each major product holding a high market share in China.

Operation Models

(1) Purchase Model

• The Company uses a centralized procurement system with a focus on source prioritization and supplier quality improvement.
• It has implemented a three-level joint review mechanism and a system to eliminate substandard suppliers.
• Utilizes futures tools to manage price risks and optimize raw material pricing.
• Engages in supply chain financial activities to reduce procurement costs and enhance competitiveness.

(2) Production Model

• Implements a pulp and paper integration strategy with a focus on green development and environmental protection.
• Promotes clean production and energy conservation, aiming to become a resource-saving and environmentally friendly model enterprise.
• Has established an "ecological chain" with integrated resource use and circular industrial development.
• Uses planned management and real-time monitoring systems to ensure efficient production and strict inventory control.

(3) Marketing Model

• Adheres to the "Good faith, Win-Win and Sharing" marketing concept.
• Has a mature sales network and specialized sales companies for domestic and overseas markets.
• Implements a three-level scheduling mechanism and a "four-level visit mechanism" to ensure effective sales planning and customer satisfaction.
• Utilizes IT-based management and has improved complaint handling and customer satisfaction systems.

(4) R&D Model

• Focuses on market-oriented innovation and has formed various R&D modes including independent R&D, technology introduction, and industry-university-research cooperation.
• Has established several leading R&D platforms, such as the national enterprise technology center and CNAS-certified testing centers.
• Continuously improves and re-innovates production lines and technologies, enhancing product quality and core competitiveness.

Industry Overview

• The papermaking industry is a fundamental part of the national economy, characterized by large-scale, continuous, and efficient operations.
• It is closely linked to social and economic development and daily life, providing essential materials for multiple sectors.
• The industry has seen a steady growth in supply and demand due to supply-side reforms, leading to a more stable production and sales environment.
• The Company has benefited from rising pulp prices and increased demand, resulting in a significant increase in profitability.
• According to the National Bureau of Statistics, total profit in the papermaking and paper product industry from January to June 2021 was RMB48.43 billion, up by 77.10% year-on-year.

Strategic Development

• The Company is one of the top 500 Chinese enterprises and has received over 200 provincial-level honors, including the China May 1st Labour Prize and the National Spiritual Civilisation Advanced Unit.
• It has adopted a green, low-carbon, and sustainable development strategy, focusing on innovation-driven growth.
• The Company has established three major production bases (Shouguang, Huanggang, Zhanjiang) and plans to further develop its Huanggang production base to improve operational quality.
• It aims to enhance corporate management, anti-risk capabilities, and optimize performance indicators to achieve steady economic growth and long-term development.

Risk and Dividend Policy

• The Company is exposed to macroeconomic fluctuations, policy adjustments, and industry competition.
• It does not propose cash dividends or bonus shares for the reporting period.
• No changes were made to the registered address, office address, postal code, website, or email during the reporting period.
• No changes in information disclosure methods or places for inspection were reported.

Compliance and Disclosures

• The financial report was signed and sealed by the Company's management, ensuring its accuracy and completeness.
• The Company disclosed all relevant financial data and information on the designated websites and stock exchanges.
• There were no differences between financial data reported under international and China accounting standards during the reporting period.