2016-04-27-深交所-晨_鸣Ｂ_2016年第一季度报告全文（英文版）_25页_168kb

Summary of SHANDONG CHENMING PAPER HOLDINGS LIMITED 2016 First Quarterly Report

Core Content Overview

This report provides an overview of the financial performance and shareholder structure of SHANDONG CHENMING PAPER HOLDINGS LIMITED for the first quarter of 2016. It includes financial data, changes in major accounting items, shareholder information, and details on material matters and undertakings. The report also outlines the financial statements and highlights the company's operating results and compliance status.

Main Financial Data and Shareholder Changes

Major Accounting Data and Financial Indicators

• Revenue: Increased by 11.11% to RMB 4,951,931,256.74
• Net Profit Attributable to Shareholders: Rose by 318.29% to RMB 402,131,344.77
• Net Profit After Extraordinary Gains/Losses: Increased by 516.23% to RMB 292,898,560.63
• Net Cash Flows from Operating Activities: Decreased by 615.94% to RMB -3,936,890,898.29
• Basic and Diluted Earnings per Share: Both increased by 260% to RMB 0.18 per share
• Rate of Return on Net Assets (weighted average): Improved to 2.48% from 0.69%
• Total Assets: Increased by 7.66% to RMB 83,937,169,224.58
• Net Assets Attributable to Shareholders: Rose by 15.83% to RMB 19,542,206,733.20

Extraordinary Gains or Losses

• Total Extraordinary Gains/Losses: RMB 109,232,784.14
• Key Items:
  • Profit or loss from disposal of non-current assets: RMB 423,932.82
  • Government grants (non-operational): RMB 116,605,070.58
  • Gain or loss from debt restructuring: RMB -76,923.05
  • Gain or loss on external entrusted loans: RMB 22,750,000.00
  • Other non-operating income and expenses: RMB 3,416,483.00

Shareholder Information

Ordinary Shares

• Total Number of Shareholders: 101,938

  • A Shares: 75,712
  • B Shares: 25,722
  • H Shares: 504

• Top 10 Shareholders:

  • SHOUGUANG CHENMING HOLDINGS COMPANY LIMITED (15.13%)
  • HKSCC NOMINEES LIMITED (14.03%)
  • CHENMING HOLDINGS (HONG KONG) LIMITED (5.22%)
  • CENTRAL HUIJIN ASSET MANAGEMENT LTD. (2.07%)
  • NATIONAL SOCIAL SECURITY FUND 110 (1.51%)
  • HUATAI SECURITIES CO., LTD. (1.10%)
  • CHINA CONSTRUCTION BANK CORPORATION — ABC-CA SMALL AND MEDIUM CAP EQUITY FUND (0.58%)
  • BOSERA FUNDS — BANK OF CHINA — PING AN LIFE INSURANCE — PING AN LIFE INSURANCE ENTRUSTED INVESTMENT NO.1 ASSET MANAGEMENT PLAN (0.52%)
  • POSTAL SAVINGS BANK OF CHINA CO., LTD. — ABC-CA CONSUMPTION THEORY EQUITY FUND (0.51%)
  • BBH A/C VANGUARD EMERGING MARKETS STOCK INDEX FUND (0.44%)

• Connected Relationships: Shouguang Chenming Holdings is a wholly-owned subsidiary of Shouguang Chenming Holdings Co., Ltd., and they are considered persons acting in concert. No other connected relationships were identified.

Preference Shares

• Total Number of Preference Shareholders: 0

• Top 10 Preference Shareholders:

  • GUOXIN LEASING CO., LTD. (35.56%)
  • QILU BANK CO., LTD. — QILU BANK QUANXIN WEALTH MANAGEMENT PRODUCT SERIES (26.67%)
  • LAIWU GUANGYANG INVESTMENT CO., LTD. (20.00%)
  • SHANDONG DONGTAI IMPORT AND EXPORT CO., LTD. (8.89%)
  • SHANDONG TAISHAN STEEL GROUP COMPANY LIMITED (8.89%)

• No connected relationships were identified among the preference shareholders.

Major Changes in Financial Statement Items

Assets and Liabilities

• Prepayments: Increased by 56.37% due to higher raw material prepayments.
• Non-current assets due within one year: Rose by 48.67% due to increased long-term finance lease payments.
• Other current assets: Increased by 24.95% due to higher receivables under financial lease.
• Staff remuneration payables: Decreased by 27.54% due to year-end bonus payments.
• Interest payable: Increased by 79.08% due to accrued interest on corporate bonds and medium-term notes.
• Long-term payables: Rose by 67.30% due to RMB 200 million special funds received by a subsidiary.
• Special payables: Increased by 58.79% due to RMB 104 million government special fund received by another subsidiary.
• Other equity instruments: Rose by 86.68% due to the issuance of RMB 2.25 billion in preference shares.

Income Statement Items

• Business taxes and surcharges: Increased by 76.83% due to growth in financial leasing business.
• Finance expenses: Rose by 65.35% due to higher interest expenses and exchange losses.
• Investment income: Decreased by 38.52% due to increased investment losses.
• Non-operating income: Increased by 226.52% due to higher government subsidies.
• Income tax expenses: Rose by 140.72% due to higher profitability.

Cash Flows

• Net cash flows from operating activities: Decreased by 615.94% due to increased external investment in financial leasing.
• Net cash flows from investment activities: Increased by 47.17% due to reduced cash paid for fixed asset construction.
• Net cash flows from financing activities: Rose by 201.73% due to the issuance of short-term commercial paper and preference shares.

Material Matters and Undertakings

• Non-public issue of preference shares: Disclosed on 25 March 2016.
• Equity changes: Disclosed on 15 January 2016.
• Replacement of self-raised funds with preference share proceeds: Disclosed on 25 March 2016.
• Qualification for high and new tech enterprises: Disclosed on 29 March 2016 and 2 April 2016.
• Transfer announcement on preference shares: Disclosed on 7 April 2016.
• Proposal for non-public share issue in 2016: Disclosed on 16 April 2016.

Key Undertakings

• Non-competitive Undertaking:
  • Party: Shouguang Chenming Holdings Co., Ltd.
  • Date: 22 May 2008
  • Term: 9999-12-31
  • Performance: Strictly implemented.
• Defective Properties Undertaking:
  • Party: Shouguang Chenming Holdings Co., Ltd.
  • Date: 16 January 2008
  • Term: 9999-12-31
  • Performance: Strictly implemented.
• Equity Incentive and Minority Shareholder Undertaking:
  • Party: The Company
  • Date: 25 March 2016
  • Term: 9999-12-31
  • Performance: Strictly implemented.

Operating Results Estimate for January–June 2016

• No warning of a loss or material change in net profit for the first half of 2016 was issued.

Additional Information

• Security investments: None during the reporting period.
• Derivatives investments: None during the reporting period.
• Research investigations, communications, and interviews: None received during the reporting period.
• External guarantees against regulations: None provided during the reporting period.
• Appropriation of funds for non-operating purposes: None by the controlling shareholder and its related parties.

Financial Statements

Consolidated Balance Sheet (as of 27 April 2016)

• Total Current Assets: RMB 40,128,463,074.39

• Total Non-current Assets: RMB 43,808,706,150.19

• Total Assets: RMB 83,937,169,224.58

• Current Liabilities:

  • Short-term borrowings: RMB 26,893,983,032.11
  • Bills payable: RMB 2,727,424,310.36
  • Accounts payable: RMB 2,772,399,067.53 (incomplete data)

• Non-current Liabilities:

  • Long-term borrowings: RMB 11,000,000,000.00
  • Long-term payables: RMB 575,500,000.00
  • Other non-current liabilities: RMB 1,246,896,993.25

• Total Liabilities: Not fully provided in the document.

Conclusion

The company reported a significant increase in net profit and revenue during the first quarter of 2016, driven by improved operations and increased government subsidies. There were also notable changes in cash flows and asset composition, primarily due to the issuance of preference shares and the impact of financial leasing activities. The shareholder structure remained stable, with no major changes or connected relationships beyond the identified ones. The company adhered to all relevant undertakings and disclosed all material matters in accordance with regulations.