晨鸣B：2020年第三季度报告全文（英文版）

SHANDONG CHENMING PAPER HOLDINGS LIMITED*

2020 Third Quarterly Report

October 2020

I Important Notice

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 this

quarterly report which does not contain false representations misleading

statements or material omissions and severally and jointly accept legal

responsibility for its contents.

All Directors were present at the Board meeting to consider and approve

this quarterly report.

Chen Hongguo the head of the Company Dong Lianming 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.II General Information of the Company

I. 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) 94595089642.04 97958909935.15 -3.43%

Net assets attributable to

shareholders of the Company

(RMB)

23352056656.52 25169743863.75 -7.22%

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) 8473304915.35 -2.22% 22073110681.21 0.27%

Net profit attributable to

shareholders of the Company

(RMB)

560227575.14 0.41% 1076554278.62 0.82%

Net profit after extraordinary gains

or losses attributable to

shareholders of the Company

(RMB)

463336879.91 3.54% 531218996.14 -29.23%

Net cash flows from operating

activities (RMB)

-- -- 7268850121.56 11.84%

Basic earnings per share (RMB per

share)

0.136 0.74% 0.187 26.35%

Diluted earnings per share (RMB

per share)

0.136 0.74% 0.187 26.35%

Rate of return on net assets on

weighted average basis

2.23% -0.03% 3.07% 0.60%

Explanation:

Net profit attributable to shareholders of the Company does not exclude the effect of the interest of perpetual

bonds and the dividends of preference shares paid and declared to be paid. When calculating financial indicators

such as earnings per share and the rate of return on net assets on weighted average basis the interest for perpetual

bonds from 1 January 2020 to 30 September 2020 of RMB145632876.71 and the dividend on preference shares

paid in 2020 of RMB387101073.42 are deducted.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)

39182017.64

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 872260380.05

Gain or loss arising from change in fair value of financial assets

held for trading and financial liabilities held for trading as well

as investment gain on disposal of financial assets held for

trading financial liabilities held for trading and

available-for-sale financial assets excluding the effective

hedging business related to the normal operations of the

Company -6592990.05

Change in fair value of consumable biological assets/change in

fair value of other non-current financial assets -9246743.86

Non-operating income and expense other than the above items -1565525.92

Subtotal 894037137.86

Less: Effects of income tax 206911149.92

Effects of non-controlling interests (after tax) 141790705.46

Total 545335282.48 --

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 shareholdings 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

of ordinary shares as at the end

of the reporting period

118875 of which 97991

were holders of A shares

20521 were holders of B

shares and 363 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)

Shareholding of the top ten shareholders

Name of shareholders

Nature of

shareholders

Percentage

shareholdin

Number of

shares held

Number of

restricted

held

Share pledged or

locked-up

Status

Number

CHENMING HOLDINGS

COMPANY LIMITED

State-owned

legal person

15.32% 457322919 0

Pledge

34937000

HKSCC NOMINEES LIMITED

Overseas legal

person

12.51% 373331125 0

CHENMING HOLDINGS

(HONG KONG) LIMITED

Overseas legal

person

12.20% 364131563 0

CENTRAL HUIJIN ASSET

MANAGEMENT LTD.

State-owned

legal person

2.02% 60206850 0

CHEN Hongguo

Domestic natural

person

1.04% 31080044

2831003

NATIONAL SOCIAL

SECURITY FUND 418

Others 0.63% 18734946 0

VANGUARD TOTAL

INTERNATIONAL STOCK

INDEX FUND

Overseas legal

person

0.59% 17655985 0

BASIC PENSION

INSURANCE FUND 1208

Others 0.46% 13684084 0

VANGUARD EMERGING

MARKETS STOCK INDEX

FUND

Overseas legal

person

0.44% 13121946 0

CHEN Suiqiang

Domestic natural

person

0.42% 12600000 0

Shareholding of the top ten shareholders of non-restricted shares

Name of shareholders

Number of

non-restricted

shares held

Class of shares

Class of shares Number

CHENMING HOLDINGS COMPANY LIMITED 457322919

RMB ordinary

457322919

HKSCC NOMINEES LIMITED 373331125

Overseas listed

foreign shares

373331125

CHENMING HOLDINGS (HONG KONG) LIMITED 364131563

Domestic listed

foreign shares

210717563

Overseas listed

foreign shares

153414000

CENTRAL HUIJIN ASSET MANAGEMENT LTD. 60206850

RMB ordinary

60206850

NATIONAL SOCIAL SECURITY FUND 418 18734946

RMB ordinary

18734946

VANGUARD TOTAL INTERNATIONAL STOCK

INDEX FUND

17655985

Domestic listed

foreign shares

17655985

BASIC PENSION INSURANCE FUND 1208 13684084

RMB ordinary

13684084

VANGUARD EMERGING MARKETS STOCK INDEX

FUND

13121946

Domestic listed

foreign shares

13121946

CHEN Suiqiang 12600000

RMB ordinary

12600000

CITIC SECURITIES CO. LTD. - SOCIAL SECURITY

FUND 1106

10679175

RMB ordinary

10679175

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 the Measures for the

Administration of Disclosure of Shareholder Equity Changes of Listed

Companies. A shareholder Chen Hongguo is the legal representative

chairman and general manager of Chenming Holdings Company Limited.Save for the above it is not aware that any other shareholders of tradable

shares are persons acting in concert. It is also not aware that any other

shareholders of tradable shares are related to each other.Securities margin trading of top Chenming Holdings Company Limited held 457322919 RMB ordinary

10 ordinary shareholders if any shares of which 414122919 shares were held through ordinary account and

43200000 shares were held through credit guarantee security account.

Chen Suiqiang held 12600000 RMB ordinary shares of which 0 share was

held through ordinary account and 12600000 shares were held through

credit guarantee security account.Whether an agreed repurchase transaction was entered into during the reporting period by the top 10 ordinary

shareholders and top 10 non-restricted ordinary shareholders 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

Name of shareholders

Nature of

shareholders

Percentage of

shareholding

Number of

held

Number of

restricted

shares held

Share pledged or

locked-up

Status

Number

BEIJING YIBEN ZHONGXING

INVESTMENT MANAGEMENT

CO. LTD.

Domestic

non-state-owne

d legal person

27.78%

1250000

Pledge

1250000

BANK OF COMMUNICATIONS

INTERNATIONAL TRUST CO.

LTD. - HUILI NO.167 SINGLE

CAPITAL TRUST

Others 22.44%

1010000

BANK OF COMMUNICATIONS

INTERNATIONAL TRUST CO.

LTD. – HUILI NO.136 SINGLE

CAPITAL TRUST

Others 14.22% 6400000 0

QILU BANK CO. LTD. – QILU

BANK QUANXIN WEALTH

MANAGEMENT PRODUCT

SERIES

Others 13.33% 6000000 0

SHANGHAI SHIJIE BUSINESS

CONSULTING CO. LTD.

Domestic

non-state-owne

d legal person

9.20% 4140100 0

HENGFENG BANK CO. LTD.

Domestic

non-state-owne

d legal person

8.89% 4000000 0

LEAD CAPITAL MANAGEMENT

CO. LTD. – LEAD CAPITAL - LI

DE YING NO. 2 ASSET

MANAGEMENT PLAN

Others 2.62% 1179900 0

LEAD CAPITAL MANAGEMENT Others 1.51% 680000 0

CO. LTD.- LEAD CAPITAL – LI

DE YING NO. 1 ASSET

MANAGEMENT PLAN

Related party relationship or acting

in concert among the above

shareholders

Among the above holders of preference shares “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” and “LEAD CAPITAL

MANAGEMENT CO. LTD. – LEAD CAPITAL – LI DE YING NO.1

ASSET MANAGEMENT PLAN” and “LEAD CAPITAL

MANAGEMENT CO. LTD. – LEAD CAPITAL – LI DE YING NO.2

ASSET MANAGEMENT PLAN” are persons acting in concert. Save for

the above it is not aware that whether the remaining holders of preference

shares are persons acting in concert. It is also not aware that the top ten

holders of preference shares and the aforesaid ordinary shareholders are

related to each other.III Material Matters

I. Details of changes in major financial data and financial indicators during the reporting period

and reasons thereof

? Applicable □ Not applicable

(I) Analysis of the assets and liabilities of the Company

Unit: RMB

Item 30 September 2020 31 December 2019 Change Reason for change

Accounts receivable financing 646109530.46 442915861.70 45.88% (1)

Financial assets held for trading 189091827.10 - 100% (2)

Other current assets 4876429272.68 8108707394.70 -39.86% (3)

Construction in progress 455329505.32 5476122928.95 -91.69% (4)

Bills payable 4165556883.13 1515048206.00 174.95% (5)

Taxes payable 473218536.70 311554116.73 51.89% (6)

Other non-current liabilities 1387172269.72 3042841328.86 -54.41% (7)

Other equity instruments 5473500000.00 7465500000.00 -26.68% (8)

Minority interest 1647087783.82 1170029016.80 40.77% (9)

Explanation of the reasons leading to the major changes:

(1) Accounts receivable financing increased by 45.88% as compared to the beginning of the year mainly due to the

increase in bills held at the end of the reporting period from the beginning of the year.

(2) Financial assets held for trading increased by 100% mainly due to the increase in the securities investment

during the reporting period.

(3) Other current assets decreased by 39.86% as compared to the beginning of the year mainly due to the decrease

in the size of the short-term financial lease business as at the end of the reporting period from the beginning of the

year.

(4) Construction in progress decreased by 91.69% as compared to the beginning of the year mainly due to the

reclassification of the Huanggang Chenming pulp production project during the reporting period.

(5) Bills payable increased by 174.95% as compared to the beginning of the year mainly due to the increase in

payment for goods with bills during the reporting period.

(6) Taxes payable increased by 51.89% as compared to the beginning of the year mainly due to the increase in

income tax payable at the end of the reporting period from the beginning of the year.

(7) Other non-current liabilities decreased by 54.41% as compared to the beginning of the year mainly due to the

reclassification of the Company’s RMB2 billion medium-term notes to liabilities due within one year during the

reporting period.

(8) Other equity instruments decreased by 26.68% as compared to the beginning of the year mainly due to the

payment of RMB2 billion perpetual bonds by the Company during the reporting period.

(9) Minority interest increased by 40.77% as compared to the beginning of the year mainly due to the capital

injection into Shouguang Meilun by Dongxing Securities during the reporting period.(II) Reasons for significant year-on-year changes of income statement items

Unit: RMB

Item

January – September

2020

January – September

2019

Change Reason for change

Sales and distribution expenses 1011570307.54 963752678.83 4.96% (1)

Research and development expenses 865743883.85 705690315.68 22.68% (2)

Other income 226087658.21 59641233.95 279.08% (3)

Loss on impairment of assets -13570727.71 82790921.68 -116.39% (4)

Non-operating income 666294459.14 268505785.14 148.15% (5)

Explanation of the reasons leading to the major changes:

(1) Selling and distribution expenses increased by 4.96% as compared to the corresponding period of last year

mainly due to the increase in sales and the year-on-year increase in transportation expenses during the reporting

period.

(2) Research and development expense increased by 22.68% as compared to the corresponding period of last year

mainly due to the increase in research and development investment during the reporting period.

(3) Other income increased by 279.08% as compared to the corresponding period of last year mainly due to the

year-on-year increase in government grants received by the Company during the reporting period.

(4) Impairment loss of assets increased by 116.39% as compared to the corresponding period of last year mainly

due to the changes in the conditions of inventory impairment and the reversal of impairment provision for

inventories in the last year.

(5) Non-operating income increased by 148.15% as compared to the corresponding period of last year mainly due

to the receipt of final payment of relocation compensation of Wuhan Chenming during the reporting period.(III) Analysis of cash flows during the reporting period

Unit: RMB

Item

January – September

2020

January – September

2019

Change

Reason for

change

Net cash flows from operating activities 7268850121.56 6499224141.50 11.84% (1)

Net cash flows from investment activities 431479896.26 -1620520894.62 126.63% (2)

Net cash flows from financing activities -8245064466.81 -4486844584.52 -83.76% (3)

Explanation of the reasons leading to the major changes:

(1) Net cash flows from operating activities increased by 11.84% as compared to the corresponding period of last

year mainly due to the increase in payment with bills by the Company and the decrease in purchase of raw materials

with spot exchange during the reporting period.

(2) Net cash flows from investing activities increased by 126.63% as compared to the corresponding period of last

year mainly due to the year-on-year decrease in project investment during the reporting period.

(3) Net cash flows from financing activities decreased by 83.76% as compared to the corresponding period of last

year mainly due to the reduction in the borrowings size of the Company during the reporting period.II. Analysis of and description on the progress of material matters their impacts and solutions

? Applicable □ Not applicable

1. Completion of registration of shares granted under the 2020 Restricted A Share Incentive Scheme.

On 15 May 2020 the Company convened the 2020 second extraordinary general meeting the 2020 first class

meeting for holders of domestic-listed shares and the 2020 first class meeting for holders of overseas-listed shares

during which matters in relation to the implementation of the 2020 Restricted A Share Incentive Scheme by the

Company were considered and approved. On 29 May 2020 the Company convened the tenth extraordinary meeting

of the ninth session of the Board during which the issuance of shares to 111 participants to the incentive scheme and

the granting of 79.6 million restricted A shares were approved. During the reporting period the registration of the

79.6 million restricted A shares was completed at Shenzhen Branch of China Securities Depository and Clearing

Company Limited and such shares were listed on 15 July 2020.

For details please refer to the relevant announcement (announcement no.: 2020-061) of the Company published on

CNINFO on 9 July 2020.

2. Completion of the implementation of the increase in shareholding of the controlling shareholder

Due to its confidence in the Company’s future business growth and development prospects as at 9 September 2020

Chenming Holdings Company Limited the controlling shareholder cumulatively increased its shareholding in the

Company by 17817434 A shares through centralized bidding on the Shanghai Stock Exchange trading system

representing 0.6% of the Company’s total share capital. In aggregate the increase in shareholding amounted to

RMB100118100 and the implementation of the increase in shareholding was completed.

For details please refer to the relevant announcement (announcement no.: 2020-087) of the Company published on

CNINFO on 10 September 2020.

Progress of the implementation of share repurchase

□ Applicable ? Not applicable

Progress of the implementation of reduction of shares repurchased by way of centralized bidding

□ Applicable ? Not applicable

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. Financial asset investments

1. Security investments

? Applicable □ Not applicable

Unit: RMB

Type

securi

Sto

cod

Stock

abbrevi

ation

Initial

investme

nt cost

Model

accounti

measure

ment

Open

ing

carry

ing

amo

unt

Profit or

loss

from

change

in fair

value

during

the

period

Cumulat

ive fair

value

change

charged

to equity

Purchase

s during

the

period

Disp

osal

durin

g the

perio

Gains or

losses

during

the

reportin

g period

Carrying

amount

as at the

end of

the

period

Accou

nting

items

Source

of fund

Dom

estic

and

overs

eas

096

Bohai

Bank

195684

817.15

Measure

ment at

fair

value

0.00

-65929

90.05

-65929

90.05

195684

817.15

0.00

-65929

90.05

189091

827.10

Financ

ial

assets

held

for

trading

Self-o

wned

funds

Total

195684

817.15

-- 0.00

-65929

90.05

-65929

90.05

195684

817.15

0.00

-65929

90.05

189091

827.10

-- --

Date of announcement relating to the securities

investment approved by the board

20 June 2020

Date of announcement relating to the securities

investment approved by the board (if any)

Nil

2. Derivative investments

□ Applicable ? Not applicable

The Company did not have any derivative investments during the reporting period

V. Progress of investment projects with proceeds

□ Applicable ? Not applicable

VI. Estimate of the operating results for 2020

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

VII. Material contracts in day-to-day operations

□ Applicable ? Not applicable

VIII. Entrusted wealth management

□ Applicable ? Not applicable

The Company did not have any entrusted wealth management during the reporting period.IX. 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.

X. 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.XI. Registration form for reception of research investigations communications and interviews

during the reporting period

? Applicable □ Not applicable

Time of reception

Place of

reception

Mode of

reception

Type of

subject of

reception

Subject of reception

Major topics

discussed and

information

provided

Index for the

basic

information of

the

investigation

29 September 2020

Panorama ?

Roadshow

platform

Online

Individuals

and

institutions

Investors

participating in the

2020 investor online

collective reception

day event for listed

companies in

Shandong

Corporate

governance

development

strategy and

operating

conditions

Panorama ?

Roadshow

http://rs.p5w.n

et/

IV Financial Statements

I. Financial Statements

1. Consolidated balance sheet

Prepared by: Shandong Chenming Paper Holdings Limited

30 September 2020

Unit: RMB

Item 30 September 2020 31 December 2019

CURRENT ASSETS：

Monetary funds 17486813167.47 19306529473.33

Financial assets held for trading 189091827.10

Bills receivable

Accounts receivable 2459250782.88 2525083311.03

Accounts receivable financing 646109530.46 442915861.70

Prepayments 932619933.04 603573549.08

Other receivables 2266523374.40 2216654598.66

Including: Interest receivable

Dividends receivable 13000000.00

Inventories 5338687801.95 4774430110.81

Contract assets

Assets held-for-sale

Non-current assets due within one year 7265642098.07 6974539613.30

Other current assets 4876429272.68 8108707394.70

Total current assets 41461167788.05 44952433912.61

NON-CURRENT ASSETS:

Debt investments

Other debt investments

Long-term receivables 2522108649.88 1200575810.95

Long-term equity investments 3835285635.60 3606339023.74

Investment in other equity instruments

Other non-current financial assets 147445653.55 147445653.55

Investment property 5182352435.80 5082362293.11

Fixed assets 37970292532.85 34439935032.69

Item 30 September 2020 31 December 2019

Construction in progress 455329505.32 5476122928.95

Right-of-use assets 147129301.04 152141882.05

Intangible assets 1828187648.67 1781061904.51

Development expenditure

Goodwill 5969626.57 5969626.57

Long-term prepaid expenses 46317772.47 48203408.71

Deferred income tax assets 943032126.13 892442631.04

Other non-current assets 50470966.11 173875826.67

Total non-current assets 53133921853.99 53006476022.54

Total assets 94595089642.04 97958909935.15

CURRENT LIABILITIES:

Short-term borrowings 34844113549.98 36883156014.19

Financial liabilities held for trading

Bills payable 4165556883.13 1515048206.00

Accounts payable 3818079499.31 4351087581.98

Receipts in advance

Contract liabilities 1223586364.44 968082063.13

Employee benefits payable 243302520.73 190229883.52

Taxes payable 473218536.70 311554116.73

Other payables 1968444026.25 2594249626.54

Including: Interest payable 122575261.67 208189699.15

Dividend payable

Liabilities held-for-sale

Non-current assets due within one year 7345250544.13 5662958920.03

Other current liabilities 155711997.16 222402500.00

Total current liabilities 54237263921.83 52698768912.12

NON-CURRENT LIABILITIES:

Long-term borrowings 7871064710.32 9140339693.56

Bonds payable 1558756456.07 1258270909.49

Including: Preference shares

Perpetual bonds

Lease liabilities 60271769.90 59697128.65

Long-term payables 2490047622.42 3321535538.94

Long-term employee benefits payable

Item 30 September 2020 31 December 2019

Provisions 325259082.28 325259082.28

Deferred income 1666109369.16 1771013335.11

Deferred income tax liabilities 1411125.59

Other non-current liabilities 1387172269.72 3042841328.86

Total non-current liabilities 15358681279.87 18920368142.48

TOTAL LIABILITIES 69595945201.70 71619137054.60

OWNERS’ EQUITY:

Share capital 2984208200.00 2904608200.00

Other equity instruments 5473500000.00 7465500000.00

Including: Preference shares 4477500000.00 4477500000.00

Perpetual bonds 996000000.00 2988000000.00

Capital reserves 5256000531.30 5086686427.30

Less: Treasury shares 226860000.00

Other comprehensive income -785213057.79 -879452135.10

Special reserves - -

Surplus reserves 1212009109.97 1212009109.97

General risk reserves 74122644.20 74122644.20

Retained profit 9364289228.84 9306269617.38

Total equity attributable to equity holders of the company 23352056656.52 25169743863.75

Minority interest 1647087783.82 1170029016.80

Total owners’ equity 24999144440.34 26339772880.55

TOTAL LIABILITIES AND OWNERS’ EQUITY 94595089642.04 97958909935.15

Legal Representative: Chen Hongguo Head in charge of accounting: Dong Lianming Head of the accounting department: Zhang Bo

2. Balance sheet of the Company

Unit: RMB

Item 30 September 2020 31 December 2019

CURRENT ASSETS：

Monetary funds 6353643948.78 9001257324.52

Financial assets held for trading

Bills receivable 1689170000.00 3254460000.00

Accounts receivable 742330617.37 39204670.00

Accounts receivable financing 92509620.51 189873567.14

Prepayments 325939372.49 722472479.01

Other receivables 10548910904.10 13975590537.58

Including: Interest receivable

Dividends receivable

Inventories 880563153.40 696487727.53

Contract assets

Assets held-for-sale

Non-current assets due within one year 245631300.05 129546826.00

Other current assets 81935906.10 80815659.84

Total current assets 20960634822.80 28089708791.62

NON-CURRENT ASSETS:

Debt investments

Other debt investments

Long-term receivables 28467038.25 418750862.51

Long-term equity investments 22449689544.10 23629780317.87

Investment in other equity instruments 3000000.00

Other non-current financial assets 147445653.55 147445653.55

Investment property

Fixed assets 4043600693.20 3901007932.88

Construction in progress 46206919.27 350623821.42

Bearer biological assets

Oil and gas assets

Right-of-use assets

Intangible assets 538608376.11 446430156.00

Development expenditure

Item 30 September 2020 31 December 2019

Goodwill

Long-term prepaid expenses

Deferred income tax assets 405055394.12 426711909.98

Other non-current assets 110930000.00

Total non-current assets 27659073618.60 29434680654.21

Total assets 48619708441.40 57524389445.83

CURRENT LIABILITIES:

Short-term borrowings 11977894807.77 11601509632.09

Financial liabilities held for trading

Bills payable 8568988482.46 9890041170.20

Accounts payable 976199992.44 833526295.40

Receipts in advance

Contract liabilities 1586942663.11 2096436345.90

Employee benefits payable 73746920.90 71040017.13

Taxes payable 111921468.72 76872851.56

Other payables 3365780716.24 6426648847.95

Including: Interest payable 83604527.77 127278083.35

Dividend payable

Liabilities held-for-sale

Non-current liabilities due within one year 1954953332.87 3695934663.30

Other current liabilities 306997500.01 932402500.00

Total current liabilities 28923425884.52 35624412323.53

NON- CURRENT LIABILITIES:

Long-term borrowings 1150692035.94 150692035.94

Bonds payable 439950500.00 89070000.00

Including: Preference shares

Perpetual bonds

Lease liabilities

Long-term payables 671919435.31 1167426124.98

Long-term employee benefits payable

Provisions 325259082.28 325259082.28

Deferred income 38940459.23 42070840.27

Deferred income tax liabilities

Other non-current liabilities 1793483343.67 2789283340.67

Item 30 September 2020 31 December 2019

Total non-current liabilities 4420244856.43 4563801424.14

TOTAL LIABILITIES 33343670740.95 40188213747.67

OWNERS’ EQUITY:

Share capital 2984208200.00 2904608200.00

Other equity instruments 5473500000.00 7465500000.00

Including: Preference shares 4477500000.00 4477500000.00

Perpetual bonds 996000000.00 2988000000.00

Capital reserves 5091821539.19 4953557435.19

Less: Treasury shares 226860000.00

Other comprehensive income

Special reserves

Surplus reserves 1199819528.06 1199819528.06

General risk reserves 753548433.20 812690534.91

Total owners’ equity 15276037700.45 17336175698.16

TOTAL LIABILITIES AND OWNERS’ EQUITY 48619708441.40 57524389445.83

3. Consolidated income statement for the reporting period

Unit: RMB

Item

Amounts for the

period

Amounts for the

prior period

I. Total revenue 8473304915.35 8665530249.94

Including: Revenue 8473304915.35 8665530249.94

II. Total operating costs 8015225647.68 7902495189.97

Including: Operating costs 6426184198.87 6283700892.83

Taxes and surcharges 63667198.96 57547747.02

Sales and distribution expenses 358827887.19 373167721.36

General and administrative expenses 237652742.13 246100352.99

Research and development expenses 317186736.96 274206599.62

Finance expenses 611706883.57 667771876.15

Including: Interest expenses 696344047.21 777506849.57

Interest income 125934498.91 90102448.79

Plus: Other income 92653683.76 20809943.31

Investment income (“-” denotes loss) 64675083.25 175779271.30

Including: Investment income from associates and joint

ventures

62040735.99 811698.89

Gain on change in fair value (“-” denotes loss) -6592990.05

Credit impairment loss (“-” denotes loss) 17208777.85 -199109603.59

Asset impairment loss (“-” denotes loss) -13407009.95

Gain on disposal of assets (“-” denotes loss) 28934169.36 -38828228.51

III. Operating profit (“-” denotes loss) 641550981.89 721686442.48

Plus: Non-operating income 23894341.36 31033192.17

Less: Non-operating expenses 9516535.09 11007861.52

IV. Total profit (“-” denotes total loss) 655928788.16 741711773.13

Less: Income tax expenses 93841592.57 160781655.00

V. Net profit (“-” denotes net loss) 562087195.59 580930118.13

(I) Classification according to the continuity of operation

1. Net profit from continuing operations (“-” denotes net loss) 562087195.59 580930118.13

2. Net profit from discontinued operations (“-” denotes net

loss)

(II) Classification according to ownership

1. Net profit attributable to shareholders of the Company 560227575.14 557960253.43

Item

Amounts for the

period

Amounts for the

prior period

2. Profit or loss of minority interest 1859620.45 22969864.70

VI. Net other comprehensive income after tax 202803164.91 -231012416.02

Net other comprehensive income after tax attributable to

shareholders of the Company

202803164.91 -231012416.02

(II) Other comprehensive income that will be reclassified to

profit and loss in subsequent periods

202803164.91 -231012416.02

1. Translation differences of financial statements

denominated in foreign currency

202803164.91 -231012416.02

Net other comprehensive income after tax attributable to minority

interest

VII. Total comprehensive income 764890360.50 349917702.11

Total comprehensive income attributable to shareholders of the

Company

763030740.05 326947837.41

Total comprehensive income attributable to minority interest 1859620.45 22969864.70

VIII. Earnings per share:

(I) Basic earnings per share 0.136 0.135

(II) Diluted earnings per share 0.136 0.135

Legal Representative: Chen Hongguo Head in charge of accounting: Dong Lianming Head of the accounting department: Zhang Bo

4. Statement of profit or loss and other comprehensive income of the Company for the reporting period

Unit: RMB

Item

Amounts for the

period

Amounts for the

prior period

I. Revenue 2276595383.89 2000086603.00

Less: Operating costs 1829561648.41 1509980777.19

Taxes and surcharges 22676611.57 8956107.34

Sales and distribution expenses 63495307.13 60328897.34

General and administrative expenses 70602249.69 97046884.52

Research and development expenses 79872864.77 82066921.93

Finance expenses 35567588.94 527818510.79

Including: Interest expenses 324537885.27 680271275.54

Interest income 276222561.01 160658344.73

Plus: Other income 1759793.68 1075008.68

Investment income (“-” denotes loss) -984567.48 276223938.89

Including: Investment income from associates and joint

ventures

-984567.48 -1560406.88

Gains from changes in fair value (“-” denotes loss)

Item

Amounts for the

period

Amounts for the

prior period

Credit impairment loss (“-” denotes loss) 4534752.29 -47516333.91

Loss on impairment of assets (“-” denotes loss)

Gain on disposal of assets (“-” denotes loss) 23262231.81 -5712679.60

II. Operating profit (“-” denotes loss) 203391323.68 -62041562.05

Plus: Non-operating income 1109607.69 11070851.80

Less: Non-operating expenses 563591.87 6387118.13

III. Total profit (“-” denotes total loss) 203937339.50 -57357828.38

Less: Income tax expenses 21691423.04 -17381871.64

IV. Net profit (“-” denotes net loss) 182245916.46 -39975956.74

(I) Net profit from continuing operations (“-” denotes net loss) 182245916.46 -39975956.74

VI. Total comprehensive income 182245916.46 -39975956.74

5. Consolidated statement of profit or loss 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. Total revenue 22073110681.21 22014178363.64

Including: Revenue 22073110681.21 22014178363.64

II. Total operating costs 21347078154.23 20892416331.43

Including: Operating costs 16611484232.18 16037798692.65

Taxes and surcharges 170715297.17 192036292.08

Sales and distribution expenses 1011570307.54 963752678.83

General and administrative expenses 729639987.46 808517752.24

Research and development expenses 865743883.85 705690315.68

Finance expenses 1957924446.03 2184620599.95

Including: Interest expenses 2135844207.98 2354263128.87

Interest income 402049517.88 304096729.01

Plus: Other income 226087658.21 59641233.95

Investment income (“-” denotes loss) 201568566.22 166312098.33

Including: Investment income from associates and joint

ventures

184790525.01 -8655474.08

Gain from changes in fair value (“-” denotes loss) -15839733.91 -1883064.80

Credit impairment loss (“-” denotes loss) -240647125.75 -261549886.93

Item

Amounts for the

period

Amounts for the

prior period

Loss on impairment of assets (“-” denotes loss) -13570727.71 82790921.68

Gain on disposal of assets (“-” denotes loss) 24228282.47 -15331491.17

III. Operating profit (“-” denotes loss) 907859446.51 1151741843.27

Plus: Non-operating income 666294459.14 268505785.14

Less: Non-operating expenses 18524079.27 16057989.71

IV. Total profit (“-” denotes total loss) 1555629826.38 1404189638.70

Less: Income tax expenses 331801780.72 286659474.62

V. Net profit (“-” denotes net loss) 1223828045.66 1117530164.08

(I) Classification according to the continuity of operation

1. Net profit from continuing operations (“-” denotes net loss) 1223828045.66 1117530164.08

2. Net profit from discontinued operations (“-” denotes net

loss)

(II) Classification according to ownership

1. Net profit attributable to shareholders of the Company 1076554278.62 1067755825.72

2. Profit or loss of minority interests 147273767.04 49774338.36

VI. Net other comprehensive income after tax 94239077.31 -247029104.22

Net other comprehensive income after tax attributable to

shareholders of the Company

94239077.31 -247029104.22

(II) Other comprehensive income that will be reclassified to

profit or loss

94239077.31 -247029104.22

1. Exchange differences on translation 94239077.31 -247029104.22

Net other comprehensive income after tax attributable to minority

interest

VII. Total comprehensive income 1318067122.97 870501059.86

Total comprehensive income attributable to shareholders of the

Company

1170793355.93 820726721.50

Total comprehensive income attributable to minority interest 147273767.04 49774338.36

VIII. Earnings per share:

(I) Basic earnings per share 0.187 0.148

(II) Diluted earnings per share 0.187 0.148

Legal Representative: Chen Hongguo Head in charge of accounting: Dong Lianming Head of the accounting department: Zhang Bo

6. Statement of profit or loss of the Company 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 6123789041.42 4696099019.10

Less: Operating costs 4858035120.83 3613267928.83

Taxes and surcharges 43406698.99 31340628.12

Sales and distribution expenses 187644083.02 156262010.50

General and administrative expenses 229708685.85 257448680.43

Research and development expenses 208535860.54 204332393.43

Finance expenses 416134913.98 1379257085.04

Including: Interest expenses 1128352909.69 1977451686.00

Interest income 788346047.09 684663818.41

Plus: Other income 5924476.14 3255881.04

Investment income (“-” denotes loss) 681684463.59 1286777082.46

Including: Investment income from in associates and joint

ventures

-2645536.41 -14360263.31

Gains from changes in fair value (“-” denotes loss)

Credit impairment loss (“-” denotes loss) 19772653.80 -48361072.12

Loss on impairment of assets (“-” denotes loss)

Gains on disposal of assets (“-” denotes loss) 39365091.11 16703489.82

II. Operating profit (“-” denotes loss) 927070362.85 312565673.95

Plus: Non-operating income 55795173.30 89014190.80

Less: Non-operating expenses 1816454.84 10583044.24

III. Total profit (“-” denotes total loss) 981049081.31 390996820.51

Less: Income tax expenses 21656515.86 -113957576.37

IV. Net profit (“-” denotes net loss) 959392565.45 504954396.88

(I) Net profit from continuing operations (“-” denotes net loss) 959392565.45 504954396.88

V. Total comprehensive income 959392565.45 504954396.88

7. Consolidated statement of cash flows 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 24709035873.24 24694452196.67

Tax rebates received 4987490.79 3235185.49

Cash received relating to other operating activities 3128476419.91 4789319464.29

Subtotal of cash inflows from operating activities 27842499783.94 29487006846.45

Cash paid for goods and services 17553230744.56 18654617667.62

Cash paid to and for employees 887119561.10 957941627.76

Payments of taxes and surcharges 919411194.62 1440370577.89

Cash paid relating to other operating activities 1213888162.10 1934852831.68

Subtotal of cash outflows from operating activities 20573649662.38 22987782704.95

Net cash flows from operating activities 7268850121.56 6499224141.50

II. Cash flows from investing activities:

Cash received from disposal of investments 2784345.77

Cash received from investments income 26760712.33 12000000.00

Net cash received from disposal of fixed assets intangible

assets and other long-term assets

131924763.00 131375805.90

Net cash received from disposal of subsidiaries and other

business units

217547669.15 221000000.00

Cash received relating to other investing activities 409282077.65 767670000.00

Subtotal of cash inflows from investing activities 785515222.13 1134830151.67

Cash paid for purchase of fixed assets intangible assets and

other long-term assets

225778525.87 926528167.05

Cash paid on investments 124256800.00 1639194479.24

Net cash paid for acquisition of subsidiaries and other business

entities

Cash paid relating to other investing activities 4000000.00 189628400.00

Subtotal of cash outflows from investing activities 354035325.87 2755351046.29

Net cash flows from investing activities 431479896.26 -1620520894.62

III. Cash flows from financing activities:

Cash receipts from capital contributions 596070000.00

Item

Amounts for the

period

Amounts for the prior

period

Including: Cash receipts from capital contributions by minority

shareholders of subsidiaries

Cash received from borrowings 19337769412.42 28024258208.07

Cash received relating to other financing activities 2738933979.49 4096789134.60

Subtotal of cash inflows from financing activities 22672773391.91 32121047342.67

Cash repayments of amounts borrowed 22137188922.54 23844425199.09

Cash paid for dividend and profit distribution or interest

payment

2572090031.97 3051263128.87

Cash paid relating to other financing activities 6208558904.21 9712203599.23

Subtotal of cash outflows from financing activities 30917837858.72 36607891927.19

Net cash flows from financing activities -8245064466.81 -4486844584.52

IV. Effect of foreign exchange rates changes on cash and cash

equivalents

49151722.66 -377093948.33

V. Net increase in cash and cash equivalents -495582726.33 14764714.03

Plus: Balance of cash and cash equivalents as at the beginning

of the period

2890328027.40 2381558242.52

VI. Balance of cash and cash equivalents as at the end of the period 2394745301.07 2396322956.55

8. Statement of cash flows of the Company 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 6282142625.71 6426249401.49

Tax rebates received

Cash received relating to other operating activities 202526578.83 1296334093.23

Subtotal of cash inflows from operating activities 6484669204.54 7722583494.72

Cash paid for goods and services 4955500996.59 1643706437.55

Cash paid to and for employees 259796913.91 324122682.18

Payments of taxes and surcharges 150054752.93 145658208.00

Cash paid relating to other operating activities 535044976.64 815945979.17

Subtotal of cash outflows from operating activities 5900397640.07 2929433306.90

Net cash flows from operating activities 584271564.47 4793150187.82

II. Cash flows from investing activities:

Item

Amounts for the

period

Amounts for the

prior period

Cash received from disposal of investments 1466082906.51 2784345.77

Cash received from investment income 682430000.00 2000000.00

Net cash received from disposal of fixed assets intangible

assets and other long-term assets

104624763.00 75806913.60

Net cash received from disposal of subsidiaries and other

business entities

221000000.00

Cash received relating to other investing activities 409282077.65 767670000.00

Subtotal of cash inflows from investing activities 2662419747.16 1069261259.37

Cash paid for purchase of fixed assets intangible assets and

other long-term assets

6337885.55 39680681.99

Cash paid on investments 1147500000.00

Net cash paid for acquisition of subsidiaries and other business

entities

Cash paid relating to other investing activities

Subtotal of cash outflows from investing activities 6337885.55 1187180681.99

Net cash flows from investing activities 2656081861.61 -117919422.62

III. Cash flows from financing activities:

Cash receipts from capital contributions 226860000.00

Cash received from borrowings 12457501284.37 8067108555.77

Cash received relating to other financing activities 3859765533.92 5638813889.00

Subtotal of cash inflows from financing activities 16544126818.29 13705922444.77

Cash repayments of amounts borrowed 12114948547.18 8335983231.30

Cash paid for dividend and profit distribution or interest

payment

801386060.50 1471593054.48

Cash paid relating to other financing activities 6215246529.40 8479116872.45

Subtotal of cash outflows from financing activities 19131581137.08 18286693158.23

Net cash flows from financing activities -2587454318.79 -4580770713.46

IV. Effect of foreign exchange rate changes on cash and cash

equivalents

1867883.13 -3844637.47

V. Net increase in cash and cash equivalents 654766990.42 90615414.27

Plus: Balance of cash and cash equivalents as at the beginning

of the period

136328721.71 607805063.02

VI. Balance of cash and cash equivalents as at the end of the period 791095712.13 698420477.29

II. Reason for Adjustment in the Financial Statement

1. Adjustment to the relevant items in the financial statements at the beginning of the year due to the first

adoption of the New Standards for Revenue and the New Standards for Lease in 2020

□ Applicable ? Not applicable

2. Reason for the retrospective adjustment to the comparative data in the prior period due to the first

adoption of the New Standards for Revenue and the New Standards for Lease in 2020

□ Applicable ? Not applicable

III. Auditors’ Report

Has the third quarterly report already been audited yet?

□ Yes ? No

The third quarterly report of the Company is unaudited.

By order of the Board

Shandong Chenming Paper Holdings Limited

22 October 2020

行情