2014 Semi-Annual Report of Foshan Huaxin Packaging Co., Ltd FOSHAN HUAXIN PACKAGING CO., LTD.
2014 SEMI-ANNUAL REPORT
August 2014
2014 Semi-Annual Report of Foshan Huaxin Packaging Co., Ltd Section I. Important Reminders, Contents& Definition
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior management staff of Foshan Huaxin Packaging Co., Ltd. (hereinafter referred to as “the Company”) warrant that this report is factual, accurate and complete without any false record, misleading statement or material omission. And they shall be jointly and severally liable for that.
All directors have attended the board session for reviewing this report.
The Company plans not to distribute cash dividends or bonus shares or turn capital reserve into share capital.
Mr. Tong Laiming, company principal, Mr. Ji Xiangdong, chief of the accounting work, and Mr. Yang Yinghui, chief of the accounting organ (chief of accounting), hereby guarantee that the Financial Report enclosed in this report is factual, accurate and complete.
Any forward-looking statement such as those involving the future operating environment and the operating plans in this report shall not be considered as virtual promises of the Company to investors. And investors are kindly reminded to pay attention to possible risks.
This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version shall prevail.
2014 Semi-Annual Report of Foshan Huaxin Packaging Co., Ltd Contents
2014 Semi-annual Report .................................................................................................................. 1 Section I. Important Reminders, Contents& Definitions .............................................................. 2 Section II. Company Profile .............................................................................................................. 5 Section III. Highlights of Accounting Data& Financial Indicators .............................................. 7 Section IV. Report of the Board of Directors ................................................................................... 9 Section V. Significant Events ........................................................................................................... 17 Section VI. Change in Shares& Shareholders .............................................................................. 28 Section VII. Preferred Shares ......................................................................................................... 33 Section VIII. Directors, Supervisors& Senior Management Staff .............................................. 34 Section IX. Financial Report ........................................................................................................... 36 Section X. Documents Available for Reference ........................................................................... 152
2014 Semi-Annual Report of Foshan Huaxin Packaging Co., Ltd Definitions
||||
|-|-|-|
||Refers||
|Term||Definition|
||to||
||Refers||
|Company, the Company, our Company||Foshan Huaxin Packaging Co., Ltd.|
||to||
||Refers||
|China Paper||Actual controller of the Company—China Paper Corporation|
||to||
||Refers|Ultimate controller of the Company—China Chengtong Holdings Group|
|China Chengtong|||
||to|Ltd.|
||Refers||
|Hongta Renheng||Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd.|
||to||
||Refers||
|Zhuhai Huafeng||Zhuhai Huafeng Paper Co., Ltd.|
||to||
||Refers||
|Golden Pheasant Chemical||Zhuhai Golden Pheasant Chemical Co., Ltd.|
||to||
||Refers||
|Foshan Chengtong||Foshan Chengtong Paper Co., Ltd.|
||to||
||Refers||
|Huaxin Color Printing||Huaxin (Foshan) Color Printing Co., Ltd.|
||to||
||Refers||
|Kunshan Focai||Kunshan Focai Packaging & Printing Co., Ltd.|
||to||

2014 Semi-Annual Report of Foshan Huaxin Packaging Co., Ltd Section II. Company Profile
I. Basic information of the Company
|||||
|-|-|-|-|
|Stock abbreviation|YHBB|Stock code|200986|
|Stock exchange listed with|Shenzhen Stock Exchange|||
|Chinese name of the Company|佛山华新包装股份有限公司|||
|Abbr. of the Chinese name of||||
||华新包装|||
|the Company||||
|English name of the Company||||
||Foshan Huaxin Packaging Co., Ltd.|||
|(if any)||||
|Legal representative of the|Mr. Tong Laiming|||
|Company||||

II. Contact information
||||
|-|-|-|
||Company Secretary|Securities Affairs Representative|
|Name|Mr. Yang Yinghui|Mr. Jiang Zhuowen|
||20/F, Jinghua Building, No. 18, the 5th|19/F, Jinghua Building, No. 18, the 5th|
|Contact address|Jihua Road, Foshan, Guangdong Province,|Jihua Road, Foshan, Guangdong Province,|
||P.R.China|P.R.China|
|Tel.|0757-83992076|0757-83992076|
|Fax|0757-83992026|0757-83992026|
|E-mail|yyh-hxbz@chinapaper.com.cn|jzw-hxbz@chinapaper.com.cn|

III. Other information
1. Ways to contact the Company
Did any change occur to the registered address, office address and their postal codes, website address and email address of the Company during the reporting period?
□ Applicable√ Inapplicable
The registered address, office address and their postal codes, website address and email address of the Company did not change
during the reporting period. The said information can be found in the 2013 Annual Report.
2014 Semi-Annual Report of Foshan Huaxin Packaging Co., Ltd 2. About information disclosure and where this report is placed
Did any change occur to information disclosure media and where this report is placed during the reporting period?
□ Applicable√ Inapplicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing this report and the location where this report is placed did not change during the reporting period. The said information can be found in the 2013 Annual Report.
3. Change of the registered information
Did any change occur to the registered information during the reporting period?
□ Applicable√ Inapplicable
The registration date and place of the Company, its business license No., taxation registration No. and organizational code did not change during the reporting period. The said information can be found in the 2013 Annual Report.
2014 Semi-Annual Report of Foshan Huaxin Packaging Co., Ltd Section III. Highlights of Accounting Data& Financial Indicators I. Major accounting data and financial indicators
Does the Company adjust retrospectively or restate accounting data of previous years due to change of any accounting policy or correction of any accounting error?
□ Yes√ No
|||||
|-|-|-|-|
||Reporting period|Same period of last year|YoY +/- (%)|
|Operating revenues (RMB Yuan)|1,790,137,651.12|1,986,679,927.67|-9.89%|
|Net profit attributable to shareholders of|25,086,979.16|3,886,014.86||
||||545.57%|
|the Company (RMB Yuan)||||
|Net profit attributable to shareholders of||||
||23,436,394.67|2,892,377.10|710.28%|
|the Company after extraordinary gains and||||
|losses (RMB Yuan)||||
|Net cash flows from operating activities|-219,095,767.29|410,756,479.61||
||||-153.34%|
|(RMB Yuan)||||
|Basic EPS (RMB Yuan/share)|0.05|0.008|525.00%|
|Diluted EPS (RMB Yuan/share)|0.05|0.008|525.00%|
|Weighted average ROE (%)|1.44%|0.23%|1.21%|
||As at the end of the|||
|||As at the end of last year|+/- (%)|
||reporting period|||
|Total assets (RMB Yuan)|6,600,228,199.59|5,773,266,460.61|14.32%|
|Net assets attributable to shareholders of|1,754,795,477.29|1,729,936,978.68||
||||1.44%|
|the Company (RMB Yuan)||||

II. Differences between accounting data under domestic and overseas accounting standards 1. Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese accounting standards
□ Applicable√ Inapplicable
No difference.
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards
□ Applicable√ Inapplicable
No difference.
2014 Semi-Annual Report of Foshan Huaxin Packaging Co., Ltd III. Items and amounts of extraordinary gains and losses
√Applicable□ Inapplicable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount|Explanation|
|Gains/losses on the disposal of non-current assets (including the|1,148,513.57||
|offset part of asset impairment provisions)|||
|Government grants recognized in the current period, except for|1,140,739.36||
|those acquired in the ordinary course of business or granted at|||
|certain quotas or amounts according to the country’s unified|||
|standards|||
|Non-operating income and expenses other than the above|448,861.39||
|Less: Income tax effects|376,965.14||
|Minority interests effects (after tax)|710,564.69||
|Total|1,650,584.49|--|

Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item□ Applicable√ Inapplicable
No such cases during the reporting period.
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. Section IV. Report of the Board of Directors
I. Overview
The first half of 2014 saw recovery signs of the global economy, as well as some growth of the export data of China. However, the economic growth was still slow as the global economy still faced a lot of uncertainties and the structural reform of the domestic economy deepened.
In the paper packaging industry, the packaging paper products were affected to some extent as the demand for top-grade cigarettes, liquor and the like decreased in the domestic terminal market. The market growth was restrained. Meanwhile, the centralized release of new domestic production capacity of ivory board of various varieties in the recent two years, as well as the serious market homogenization, brought unprecedented pressure upon the market. These factors posed great difficulties and challenges for the operation of the Company.
In face of the changes in the economic situation, the industry and the market, we carefully considered the situation and made good planning. We put forward the operating strategy of “innovation, transformation, optimization and development”, optimized the asset structure, and made innovations in product and service. We also carried out delicacy management and management improvement in a deep-going way, and expanded the profit room by adopting measures such as reducing costs and increasing the efficiency, transformation and upgrading. As a result, our business performance in the first half of the year improved considerably year on year.
II. Main business analysis
YoY change of major financial data:
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Reporting period|Same period of last year|YoY +/-%|Main reasons for change|
|Operating revenues|1,790,137,651.12|1,986,679,927.67|-9.89%||
|Operating costs|1,506,684,829.97|1,742,766,008.88|-13.55%||
|Selling expenses|74,769,251.48|86,726,072.55|-13.79%||
|Administrative expenses|71,304,542.73|72,245,879.01|-1.30%||
|Financial expenses|63,571,260.96|61,375,124.37|3.58%||
|Income tax expenses|17,211,486.34|19,755,209.39|-12.88%||
|R&D inputs|62,683,810.00|54,745,108.65|14.50%||
||-219,095,767.29|410,756,479.61||We adopted a strategic|
|||||purchase of raw materials|
|Net cash flows from||||and the security deposits|
||||-153.34%||
|operating activities||||were recorded in the cash|
|||||paid for goods and|
|||||service.|
|Net cash flows from|-169,075,402.39|-45,489,293.18||Acquisition of associated|
||||271.68%||
|investing activities||||enterprise equities|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
||343,769,046.89|-633,943,028.38||Loans increased in the|
|||||current period while loan|
|Net cash flows from|||||
||||154.23%|repayments were of a|
|financing activities|||||
|||||large amount in the same|
|||||period of last year.|
|Net increase in cash and|-44,919,900.44|-268,726,947.90|||
||||41.02%|Factors above|
|cash equivalents|||||

Major changes to the profit structure or sources of the Company during the reporting period:
□ Applicable√ Inapplicable
No major changes occurred to the profit structure or sources of the Company during the reporting period.
Reporting period progress of the future development planning in the disclosed documents of the Company such as share-soliciting prospectuses, offering prospectuses, asset reorganization reports, etc.:
□ Applicable√ Inapplicable
The situation of the future development and plan continuing to the report period did not be disclosed in the public disclosure documents of the prospectus and re-financing report and others.
The review and conclusion of the progress of the operating plan disclosed in the prior period in the reporting period
Preliminary work plan of the Company mainly including the upgrading and transforming of the old factories, the transition and upgrading work of the promotion of Hongta Renheng, the enlarging of the productivity of color printing business and the work of shareholding reform as well as capital operation. The main process of the reporting period is as follows:
1. The Company developed various aspects of work around the upgrading and transformation of the old factories as well as the equipments disposal, completed the gradually cease of production and the disposal of the staffs as well as the steady price sales of the products, with the clearance of the finished goods inventory and the recovery of the accounts receivable drawing to a close; held several argumentation meetings around the upgrading and transformation of the factories as well as the assets disposal, which repeatedly demonstrated the feasibility, compliance, advantages and disadvantages of each proposal. In view of the complication of the relocation project of Foshan Chengtong and the multilateral relations between the government sectors and enterprises and the relations among the enterprises that concerned by different disposals, as well as the problems needed to be argued in the compliance of laws and regulations, the feasibility of technology, of which all of the above elements led to the uncertainty of the proposal on the moving and assets disposal.
2. The Company made great efforts to promote the upgrading and transformation work of Hongta Renheng, enlarged the promote power of the new products, enhanced the percentage of the high-value-added product and constantly improved the structure of the business, products and clients. In the first half year, Hongta Renheng had further optimized on the basic of the adjustment of the products structure, stabilized the current resources of the cigarette card market, cultivated and guided the markets such as vacuum straight aluminized aluminum cigarette card market and special cigarette card market, successfully implemented the transformation and upgrading strategy of the products through exploring new products and new markets, which led the further broaden the profit space of the enterprises. In the first half year, the profits increased a lot over the same period of the last year, which the accumulated consolidated profit was of RMB 65,970,000 (including Zhuhai Huafeng, Jinji Chemical) that increased greatly over the same period of last year which was of RMB 3.57 million.
3. The20% equity of Chengtong Finance Co., Ltd. purchased by the Company had already transferred, and the batch charging and
trial-produce of the Phase II 100, 000 tons rubber latex engineering of the controlled subsidiary Jinji Chemical had succeed in Jun., of
which steadily advance of the above projects were both beneficial to the increase point of the profits of the Company.
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. III. Breakdown of main business
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||||Increase/decrease|||
||||||Increase/decrease|Increase/decrease|
||Operating|||of operating|||
|||Operating cost|Gross profit rate||of operating cost|of gross profit|
||revenue|||revenue over last|||
||||||over last year|rate over last year|
|||||year|||
|Classified by industry:|||||||
|Manufacture|1,728,723,715.57|1,479,294,356.26|14.43%|-11.18%|-14.98%|35.99%|
|Classified by product:|||||||
|Duplex board|39,563,257.40|53,888,210.24|-36.21%|-79.05%|-71.89%|-2,482.09%|
|Ivory board|1,321,897,261.05|1,118,409,406.28|15.39%|-10.11%|-15.12%|47.87%|
|Liquid packaging|||||||
||88,768,067.71|79,458,046.55|10.49%||||
|paper|||||||
|Presswork|||||||
||122,625,407.74|101,260,387.90|17.42%|-0.12%|2.90%|-12.18%|
|products|||||||
|Chemicals|155,869,721.67|126,278,305.29|18.98%|-5.04%|-4.48%|-2.39%|
|Classified by region:|||||||
|Domestic|1,523,756,548.67|1,285,407,243.28|15.64%|-9.18%|-12.53%|26.05%|
|Overseas|204,967,166.90|193,887,112.98|5.41%|-23.70%|-28.29%|931.66%|

 IV. Analysis of core competence
During the reporting period, there was no any adverse change of the core competence of theCompany—the core products and technology as well as theR&D ability such as the cigarette papers, food papers, liquid food warppapers, anti-counterfeiting papers and flexorganic printing technology.
In the first half year of this year, several technology research projects had gained progress of the Company. For example, completed the science and technology novelty search report of vacuum direct plating papers and the evaluation of the two projects of the direct plating papers and printing papers, of which the results were: the utility model patent of the “vacuum direct plating papers” had gained authorization and received letters patent; individually developed and produced the styrene-acrylic latex SA-618 instead of import latex etc.
V. Analysis of investment situation
1. List of foreign equities investment
(1) List of foreign investments
√ Applicable□ Inapplicable
List of foreign investments
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Amount invested in the report period|Amount invested in the same period of last||
|||Amplitude of fluctuation (%)|
|(RMB Yuan)|year (RMB Yuan)||
|231,450,200.00|49,862,600.00|364.18%|
|List of invested company|||
|||Proportion of the equities of the invested|
|Company name|Main business||
|||company taken by the listed company|
||Financial business such as intra-group||
|Chengtong Finance Co., Ltd.||20.00%|
||bank deposits and loans, notes||

(2) List of Holding the Equity of Financial Enterprise
√ Applicable□ Inapplicable
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Category|||||||Gains and|Accounting objects||
||||Amount of|Proportion|Amount of||Book||||
|||Initial||||Proportion||losses in|||
||||holding|of holding|holding||value at||||
|||investment||||of holding||the|||
|Company|||shares at|shares at|shares at||the period||||
|||costs||||shares at||reporting||Share|
|name|||the|the|the period||-end||||
|||(RMB Yua||||the period||period||resource|
||||period-beg|period-beg|-end||(RMB Yua||||
|||n)||||-end||(RMB Yua|||
||||in (share)|in|(share)||n)||||
|||||||||n)|||
|Guangdon|Commercial bank||||||||Long-termequityinvestment||
|||||||||||Establish|
|g|||||||||||
|||||||||||ment|
|Developm||113,558.00|113,558|0.00%|113,558|0.00%|113,558.00|0.00|||
|||||||||||contributio|
|ent Bank|||||||||||
|||||||||||n|
|Co., Ltd.|||||||||||
|Total||113,558.00|113,558|--|113,558|--|113,558.00|0.00|--|--|

 (3) List of Investment securities
√ Applicable□ Inapplicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Amount||Amount||||||
||||||Proportio||||Gains and|||
|||||of||of|Proportio|Book||||
||||Initial||n of||||losses in|||
|||Stocks||holding||holding|n of|value at||||
|Security|Stocks co||investmen||holding||||the|Accounti|Share|
|||short||shares at||shares in|holding|the period||||
|type|de||t costs||shares at||||reporting|ng objects|resource|
|||name||the||the End|shares at|-end||||
||||(RMB Yu||the||||period|||
|||||period-be||of the|the period|(RMB Yu||||
||||an)||period-be||||(RMB Yu|||
|||||gin||Period|-end|an)||||
||||||gin||||an)|||
|||||(share)||(share)||||||
|||||||||||Available|Establish|
|||Zhuhai|1,854,600|||||4,222,090||-for-sale|ment|
|Stocks|000507|||693,966|0.11%|902,156|0.11%||0.00|||
|||Harbour|.00|||||.08||financial|contributi|
|||||||||||assets|on|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||1,854,600|||||4,222,090||||
|Total||693,966|--|902,156|--||0.00|--|--|
||.00|||||.08||||
|Disclosure date of the board||||||||||
|announcement on approval of||||||||||
|the securities investment||||||||||
|Disclosure date of the board of||||||||||
|shareholders announcement on||||||||||
|approval of the securities||||||||||
|investment (if any)||||||||||

List of the holding the equities of other listed companies
□ Applicable√ Inapplicable
There was no any holding of the equities of other listed companies of the Company during the reporting period.
2. Wealth management entrustment, derivative investments and entrustment loans
(1) Wealth management entrustment
□ Applicable√ Inapplicable
The Company did not make any wealth management entrustment in the reporting period.
(2) Derivative investment
□ Applicable√ Inapplicable
The Company did not carry out any derivative investment in the reporting period.
(3) Entrustment loans
□ Applicable√ Inapplicable
There were no entrustment loans in the reporting period.
2. Usage list of financing funds
(1) Overall usage situations of financing funds
□ Applicable√ Inapplicable
(2) Projects invested with raised funds as promised
□ Applicable√ Inapplicable
(3) Change of raised-funds-invested projects
□ Applicable√ Inapplicable
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. No change of raised-funds-invested projects during the reporting period.
(4) Projects invested with raised funds
||||
|-|-|-|
|Overview of the project|Disclosure date|Index for the disclosed information|
|Issued the corporate bonds, supplemented|||
|the circulating capital and repaid the loans|29 Nov. 2012|Announcement No. : 2012-040|
|in Nov. 2012|||

4. Analysis to main subsidiaries and stock-participating companies
√ Applicable□ Inapplicable
Main subsidiaries and stock-participating companies
Unit: RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Main|||||||
|Company|Company|||Registered|||Operating|Operating||
|||Industry|||Total assets|Net assets|||Net profit|
||||products/ser|||||||
|name|variety|||capital|||revenues|profit||
||||vices|||||||
|Huaxin||||||||||
||||Color|||||||
|(Foshan)||||USD||||||
|||Manufactur|package||386,014,18|192,717,68|126,989,68|4,969,260||
|Color|Subsidiary|||12,800,000|||||5,117,400.38|
|||e|and tag||9.36|4.34|8.72|.54||
|Printing||||0.00||||||
||||printing|||||||
|Co., Ltd.||||||||||
|Zhuhai||||||||||
|S.E.Z.|||Ivory|||||||
|Hongta|||board,|||||||
|||||USD||||||
|Renheng||Manufactur|packaging||5,369,540,1|2,623,208,2|1,591,900,8|64,769,47|59,569,559.0|
||Subsidiary|||243,609,90||||||
|Paper Co.,||e|base paper||95.45|41.78|21.82|9.52|2|
|||||9.00||||||
|Ltd.|||for liquid|||||||
|(combinatio|||food|||||||
|n)||||||||||
||||Coated|||||||
|Foshan||||||||||
||||duplex|||||||
|Chengtong||Manufactur||300,000,00|641,860,87|154,134,16|43,182,997.|-40,207,9|-40,140,378.5|
||Subsidiary||board,|||||||
|Paper Co.,||e||0.00|4.18|0.52|06|31.17|2|
||||coated craft|||||||
|Ltd.||||||||||
||||paper|||||||

5. Significant projects invested with non-raised funds
□ Applicable√ Inapplicable
No significant projects of investments with non-raised funds during the reporting period.
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. VI. The prediction of business performance from Jan. to Sep. in 2014
Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-begin to the end of the next reporting period according to prediction, as well as explanations on the reasons:
√ Applicable□ Inapplicable
Prediction: synthetic rise sharply
Type of the predicted data: interval data
||||||||||
|-|-|-|-|-|-|-|-|-|
||Jan.-Sep. 2014|||Jan.-Sep. 2013|+/-||||
|Predicted accumulative net|||||||||
||3,600|--|3,900|1,430.67|Up|151.63%|--|172.60%|
|profit (RMB Ten thousand)|||||||||
|Basic EPS (RMB Yuan/share)|0.071|--|0.077|0.028|Up|153.57%|--|175.00%|
||Mainly was benefited from the obviously perfection of the products structure and the enhancing of||||||||
||the comprehensive gross profit rate of the Company during the continuous promotion period of the||||||||
|Explanation about the|||||||||
||upgrading and transformation strategy of the subsidiary Hongta Renheng Paper. At the same time,||||||||
|predictions|||||||||
||was also benefited from the positive influence that the Company made great efforts on controlling||||||||
||the cost and the interval expenses.||||||||

VII. Explanation by the Board of Directors and the Supervisory Committee about the “non-standard audit report” issued by the CPAs firm for the reporting period
□ Applicable√ Inapplicable
VIII. Explanation by the Board of Directors about the “non-standard audit report” for last year
□ Applicable√ Inapplicable
IX. Implementation of profit allocation during the reporting period
Profit allocation plan implemented during the reporting period, especially execution and adjustment of the cash dividend plan and the plan for turning capital reserve into share capital
□ Applicable√ Inapplicable
The profit allocation plan of the first half year of the Company was not to distribute cash dividend and share bonus as well as not to turn reserved funds into share capital.
X. Preplan for profit distribution and turning capital reserve into share capital for the reporting period
□ Applicable√ Inapplicable
The Company planed not to distribute cash dividends or bonus shares or turn capital reserve into share capital for the reporting
period.
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. XI. Researches, visits and interviews received in the reporting period
√ Applicable□ Inapplicable
|||||||
|-|-|-|-|-|-|
||||||Main discussion and|
|Time|Place|Way of reception|Visitor type|Visitor|materials provided by the|
||||||Company|
||||||Inquired of the relevant|
|||Telephone|||situation of Foshan|
|25 Feb. 2014|||Individual|Individual investor||
|||communication|||Chengtong which planed to|
||||||cease production and move|
|||Telephone|||Inquired of the business|
|1 Apr. 2014|||Individual|Miss Yuan||
|||communication|||structure of the Company|
||||||1. The operation situation|
|||Telephone||||
|9 Apr. 2014|||Individual|Mr. Li|of the Company; 2. Why|
|||communication||||
||||||the shares would cease?|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. Section V. Significant Events
I. Corporate governance
The situation of theCompany’s governance did not differ in principle from the Company Law and the relevant CSRC requirements in the reporting period.
II. Significant lawsuits or arbitrations
□ Applicable√ Inapplicable
The Company was not involved in any significant lawsuit or arbitration in the reporting period.
III.Media’s queries
□Applicable√Inapplicable
There was nomedia’s common query during the reporting period.
IV. Bankruptcy reorganization
□ Applicable√ Inapplicable
No event involving bankruptcy reorganization occurred to the Company in the reporting period.
V. Asset transactions
1. Purchase of assets
√ Applicable□Inapplicable
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Relationsh|||
|||||||||ip between|||
|||||||Ratio of||the|||
|||||||the net||transaction|||
|||Transactio||Influence|Influence|profit||party and|||
|Transactio|Asset||||||Related-pa||||
|||n price||on the|on the|contribute||the|Disclosure||
|n party or|acquired||Progress||||rty|||Disclosure|
|||(RMB Ten||Company’|Company’|d by the||Company|date (note||
|ultimate|or bought||(note 2)||||transaction|||index|
|||thousand||s operation|s gain/loss|asset to the||(applicable|5)||
|controller|in||||||or not||||
|||Yuan)||(note 3)|(note 4)|Company||for|||
|||||||to the total||related-par|||
|||||||profit||ty|||
|||||||||transaction|||
|||||||||s)|||
|China|20%|23,145.02|Transferre|Enlarged|Increase|0.00%|Yes|Actual|13 Dec.|Announce|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||||||
|-|-|-|-|-|-|-|-|
|Paper|equity of|d|the|the|controller|2013|ment No.:|
|Investment|the|completed|business|investment|||2013-073,|
|Co., Ltd.|Chengtong||scopeandenhancedtheflexibilityof thefinancingof theCompany|profits of|||2014-032.|
||Finance|||the||||
||Co., Ltd.|||Company||||

2. Sale of assets
√ Applicable□Inapplicable
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Net|||||Relation||Whether|||
|||||profit||Ratio of|||ship|Whether|or not|||
|||||contribu||the net|||between|or not|the|||
|||||ted by||profit|||the|the|creditor’|||
||||Transact||Influenc|||||||||
|||||the asset||contribu|||transacti|ownersh|s right|||
||||ion||e on the|||||||||
|||||from the||ted to||Related|on party|ip of the|and||Index|
|Transact|||price||Compan||Pricing|||||Date of||
||Asset|Date of||period-b||the||transacti|and the|asset|liabilitie||for|
|ion|||(RMB||y’s||principl|||||disclosu||
||sold|sale||egin to||Compan||on or|Compan|involve|s||disclosu|
|party|||Ten||operatio||e|||||re||
|||||the date||y by the||not|y|d has|involved||re|
||||thousan||n (note|||||||||
|||||of sale||asset|||(applica|been|have|||
||||d Yuan)||3)|||||||||
|||||(RMB||sale to|||ble for|fully|been|||
|||||Ten||the total|||related|transferr|fully|||
|||||thousan||profit|||transacti|ed|transferr|||
|||||d Yuan)|||||ons)||ed|||
||Land|||||||||||||
||use right|||||||||||||
||of about||||||||||||Announ|
||32.86||||||||||||cement|
|Land|danbo||||||||||||No.:|
||||||Had|||||||||
|reserve|which||||||||||||2013-07|
||||||increase||Assesse|||||||
|center|lies in||||||||||||7,|
|||30 Dec.|||d the||d by the||Inapplic|||28 Dec.||
|of|No. 13,||8,135|0||0.00%||No||Yes|Yes||2013-07|
|||2013|||Y2013||third||able|||2013||
|Foshan|on the||||||||||||8,|
||||||net||party|||||||
|Chanch|west||||||||||||2013-08|
||||||profits.|||||||||
|eng|side of||||||||||||0,|
||Gangko||||||||||||2014-00|
||u Rd,||||||||||||1.|
||Chanch|||||||||||||
||eng|||||||||||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||
|-|
|District,|
|Foshan|

3. Business combination
□ Applicable√ Inapplicable
No business combination occurred to the Company during the reporting period.
VI. Implementation of equity incentive and its influence
□ Applicable√ Inapplicable
The Company did not make or carry out any equity incentive plan during the reporting period.
VII. Significant related-party transactions
1. Related-party transactions concerning routine operation
√ Applicable□ Inapplicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Proportio|||||
|||||||Transacti|||Obtainabl|||
||||||||n in the|||||
|||||||on|||e market|||
|||Type of|Contents||||total|||||
|Related||||||amount||Method|price for|||
|||the|of the|Pricing|Transacti||amounts|||Disclosur|Disclosur|
|transactio|Relation|||||(RMB||of|the|||
|||transactio|transactio|principle|on price||of|||e date|e index|
|n party||||||Ten||settlement|t ransactio|||
|||n|n||||transactio|||||
|||||||thousand|||n of the|||
||||||||ns of the|||||
|||||||Yuan)|||same kind|||
||||||||same kind|||||
|||||Being||||||||
|||||decided||||||||
|China||||||||||||
|||Routine||through||||||||
|Paper|||Purchasin|||||Bank bills||||
||Actual|related||negotiatio|Market|||||||
|Investme|||g raw|||10,123.9|7.59%|and||||
||controller|transactio||n based|value|||||||
|nt Co.,|||materials|||||transfer||||
|||n||on the||||||||
|Ltd.||||||||||||
|||||market||||||||
|||||value||||||||
|China||||||||||||
|||||Being||||||||
|Logistics||||||||||||
|||||decided||||||||
|Investme||||||||||||
||Under the|Routine||through||||||||
|nt|||Purchasin|||||Bank bills||||
||same|related||negotiatio|Market|||||||
|Develop|||g raw|||4,395.83|100.00%|and||||
||actual|transactio||n based|value|||||||
|ment Co.,|||materials|||||transfer||||
||controller|n||on the||||||||
|Ltd. of||||||||||||
|||||market||||||||
|Bonded||||||||||||
|||||value||||||||
|area of||||||||||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|Tianjin|||||||||
|Port|||||||||
|||||Being|||||
|Guangdo||||decided|||||
|ng|Under the|Routine||through|||||
|Chengton|same|related|Logistics|negotiatio|Market||||
|||||||1,234.78|19.05%|Transfer|
|g|actual|transactio|service|n based|value||||
|Logistics|controller|n||on the|||||
|Co., Ltd.||||market|||||
|||||value|||||
|||||Being|||||
|||||decided|||||
||Under the|Routine||through|||||
|Yuanjian|||Purchasin||||||
||same|related||negotiatio|Market||||
|Paper|||g raw|||30.04|0.02%|Transfer|
||actual|transactio||n based|value||||
|Co., Ltd.|||materials||||||
||controller|n||on the|||||
|||||market|||||
|||||value|||||
|||||Being|||||
|||||decided|||||
|Guangdo|||||||||
||Under the|Routine||through|||||
|ng|||Purchasin||||||
||same|related||negotiatio|Market||||
|Guanhao|||g raw|||21.37|3.50%|Transfer|
||actual|transactio||n based|value||||
|High-tech|||materials||||||
||controller|n||on the|||||
|Co., Ltd.|||||||||
|||||market|||||
|||||value|||||
|||||Being|||||
|||||decided|||||
|Foshan|||||||||
||Under the|Routine||through|||||
|Huaxin|||Purchasin|||||Bank bills|
||same|related||negotiatio|Market||||
|Import &|||g raw|||348.19|71.00%|and|
||actual|transactio||n based|value||||
|Export|||materials|||||transfer|
||controller|n||on the|||||
|Co., Ltd.|||||||||
|||||market|||||
|||||value|||||
|||||Being|||||
|||||decided|||||
|Guangdo|||||||||
||Under the|Routine|Selling|through|||||
|ng|||||||||
||same|related|products|negotiatio|Market||||
|Guanhao||||||35.38|0.03%|Transfer|
||actual|transactio|and|n based|value||||
|High-tech|||||||||
||controller|n|materials|on the|||||
|Co., Ltd.|||||||||
|||||market|||||
|||||value|||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Being||||||||
|||||decided||||||||
|Foshan||||||||||||
||Under the|Routine|Selling|through||||||||
|Huaxin||||||||||||
||same|related|products|negotiatio|Market|||||||
|Import &||||||9.9|0.00%|Transfer||||
||actual|transactio|and|n based|value|||||||
|Export||||||||||||
||controller|n|materials|on the||||||||
|Co., Ltd.||||||||||||
|||||market||||||||
|||||value||||||||
|||||Being||||||||
|||||decided||||||||
|Foshan||||||||||||
||Under the|Routine||through||||||||
|Huaxin|||Selling|||||Bank bills||||
||same|related||negotiatio|Market|||||||
|Import &|||waste|||80.4|100.00%|and||||
||actual|transactio||n based|value|||||||
|Export|||paper|||||transfer||||
||controller|n||on the||||||||
|Co., Ltd.||||||||||||
|||||market||||||||
|||||value||||||||
|||||Being||||||||
|||||decided||||||||
|China||||||||||||
|||Routine|Selling|through||||||||
|Paper||||||||||||
||Actual|related|products|negotiatio|Market|||||||
|Investme||||||37.6|0.00%|Transfer||||
||controller|transactio|and|n based|value|||||||
|nt Co.,||||||||||||
|||n|materials|on the||||||||
|Ltd.||||||||||||
|||||market||||||||
|||||value||||||||
|||||Being||||||||
|Guangdo||||decided||||||||
|ng|Under the|Routine|Renting|through||||||||
|Chengton|same|related|out|negotiatio|Market|||||||
|||||||25.25|100.00%|Transfer||||
|g|actual|transactio|constructi|n based|value|||||||
|Logistics|controller|n|on|on the||||||||
|Co., Ltd.||||market||||||||
|||||value||||||||
|||||Being||||||||
|||||decided||||||||
|Foshan||||||||||||
||Controllin|Routine|Accepting|through||||||||
|Huaxin||||||||||||
||g|related|lease of|negotiatio|Market|||||||
|Develop||||||28.47|100.00%|Transfer||||
||sharehold|transactio|constructi|n based|value|||||||
|ment Co.,||||||||||||
||er|n|on|on the||||||||
|Ltd.||||||||||||
|||||market||||||||
|||||value||||||||
|Total||||--|--|16,371.11|--|--|--|--|--|
|Details of large amount of sales returns||||N/A||||||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
|As for the prediction on the total amount of||
|routine related transactions to be occurred||
||The above amount of related transactions was within the predicted total amount of|
|in the reporting period by relevant types,||
||routine related transaction.|
|the actual performance in the reporting||
|period (if any)||

2. Related-party transactions arising from acquisition and sale of assets
√ Applicable□ Inapplicable
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Assessed|||||||
||||||Book||||||||
|||||||value of|Market||||||
||||||value of||||||||
|||||||the|fair|Transfer|||||
||||||the|||||Gain/loss|||
|||Type of|Contents|||transferr|value|price|||||
|Related|||||transferr||||Mode of|(RMB|||
|||the|of the|Pricing||ed asset|(RMB|(RMB|||Disclosu|Disclosu|
|transacti|Relation||||ed asset||||settleme|Ten|||
|||transacti|transacti|principle||(RMB|Ten|Ten|||re date|re index|
|on party|||||(RMB||||nt|thousand|||
|||on|on|||Ten|thousand|thousand|||||
||||||Ten|||||Yuan)|||
|||||||thousand|Yuan) (if|Yuan)|||||
||||||thousand||||||||
|||||||Yuan) (if|any)||||||
||||||Yuan)||||||||
|||||||any)|||||||
|||||||||||||Announc|
||||20%||||||||||
|China||||||||||||ement|
||||equity of|Pricing|||||||||
|Paper|Actual|||||||||||No.:|
|||Purchasi|Chengto|by|21,308.4|23,145.0||23,145.0|||13 Dec.||
|Investme|controlle||||||||Currency|0||2013-07|
|||ng assets|ng|assessme|8|2||2|||2013||
|nt Co.,|r|||||||||||3,|
||||Finance|nt|||||||||
|Ltd.||||||||||||2014-03|
||||Co., Ltd.||||||||||
|||||||||||||2.|
|Impacts on the company’s operating||||Enlarged the business scope, involved with the finance business, enhanced the flexibility|||||||||
|results and financial condition||||of the financing and at the same time increase the profits resources of the Company.|||||||||

 3. Related-party transactions arising from joint investment in external parties
□ Applicable√ Inapplicable
No related-party transaction arising from joint investment in external parties occurred to the Company during the reporting period. 4. Credits and liabilities with related parties
√ Applicable□ Inapplicable
Was there any non-operating credit or liability with any related party?
□ Yes√ No
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. The Company was not involved in any non-operating credit or liability with any related party during the reporting period.
5. Other significant related-party transactions
□ Applicable√ Inapplicable
No other significant related-party transaction occurred to the Company during the reporting period.
VIII. Occupation of theCompany’s funds for non-operating purposes by the controlling shareholder and its related parties
□ Applicable√ Inapplicable
The controlling shareholder or its related parties did not occupy theCompany’s funds for non-operating purposes during the reporting period.
IX. Significant contracts and fulfillment thereof
1. Trusteeship, contracting and leasing
(1) Trusteeship
□ Applicable√ Inapplicable
The Company did not make any entrustment in the reporting period.
(2) Contracting
□ Applicable√ Inapplicable
The Company was not involved in any contracting in the reporting period.
(3) Leasing
□ Applicable√ Inapplicable
The Company was not involved in any leasing in the reporting period.
2. Guarantees provided by the Company
√ Applicable□ Inapplicable
Unit: RMB Ten Thousand Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|Guarantees provided by the Company for external parties (excluding those for subsidiaries)|||||||||
||Disclosure||Actual|Actual||||Guarante|
|||Amount for|||Type of|Period of|Executed||
|Guaranteed party|date of||occurrence date|guarantee||||e for a|
|||guarantee|||guarantee|guarantee|or not||
||relevant||(date of|amount||||related|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
||announcem||agreement)|||||party or|
||ent|||||||not|
|Guarantees provided by the Company for its subsidiaries|||||||||
||Disclosure|||||||Guarante|
||||Actual||||||
||date of|||Actual||||e for a|
|||Amount for|occurrence date||Type of|Period of|Executed||
|Guaranteed party|relevant|||guarantee||||related|
|||guarantee|(date of||guarantee|guarantee|or not||
||announcem|||amount||||party or|
||||agreement)||||||
||ent|||||||not|
|Zhuhai S.E.Z.|||||||||
||21 May||||Guarantee of|2014.05.06-|||
|Hongta Renheng||33,000|8 May 2014|30,127.27|||No|Yes|
||2014||||joint liability|2017.05.06|||
|Paper Co., Ltd.|||||||||
|Zhuhai S.E.Z.|||||||||
||25 Aug.||||Guarantee of|2012.08.24-|||
|Hongta Renheng||20,000|24 Aug. 2012||||No|Yes|
||2012||||joint liability|2014.08.23|||
|Paper Co., Ltd.|||||||||
|Zhuhai S.E.Z.|||||||||
||20 Nov.||||Guarantee of|2012.10.17-|||
|Hongta Renheng||15,000|17 Oct. 2012|13,836.91|||No|Yes|
||2012||||joint liability|2014.12.31|||
|Paper Co., Ltd.|||||||||
|Zhuhai S.E.Z.|||||||||
||25 Apr.||||Guarantee of|2014.2.25-2|||
|Hongta Renheng||25,000||4,416.38|||No|Yes|
||2014||||joint liability|015.12.31|||
|Paper Co., Ltd.|||||||||
|Zhuhai S.E.Z.|||||||||
||10 Mar.||||Guarantee of|2013.12.24-|||
|Hongta Renheng||10,000||8,498.55|||No|Yes|
||2014||||joint liability|2014.12.24|||
|Paper Co., Ltd.|||||||||
|Zhuhai S.E.Z.|||||||||
||28 Mar.||||Guarantee of|2012.03.27-|||
|Hongta Renheng||10,000|7 Mar. 2012||||No|Yes|
||2012||||joint liability|2015.03.27|||
|Paper Co., Ltd.|||||||||
|Zhuhai Huafeng|31 Dec.||||Guarantee of|2013.10.29-|||
|||35,000|16 Nov. 2013|29,930.65|||No|Yes|
|Paper Co., Ltd.|2013||||joint liability|2016.10.28|||
|Huaxin (Foshan)|||||||||
||10 Mar.||||Guarantee of|2013.07.01-|||
|Color Printing Co.,||6,500||1,114|||No|Yes|
||2014||||joint liability|2017.12.31|||
|Ltd.|||||||||
|||||Total actual occurred amount|||||
|Total guarantee line approved for|||||||||
|||||of guarantee for the|||||
|the subsidiaries during the||210,000||||63,000|||
|||||subsidiaries during the|||||
|reporting period (B1)|||||||||
|||||reporting period (B2)|||||
|Total guarantee line that has been||154,500||Total actual guarantee balance||87,923.76|||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|approved for the subsidiaries at||for the subsidiaries at the end||
|the end of the reporting period||of the reporting period (B4)||
|(B3)||||
|Total guarantee amount provided by the Company (total of the above-mentioned two kinds of guarantees)||||
|Total guarantee line approved||Total actual occurred amount||
|during the reporting period|210,000|of guarantee during the|63,000|
|(A1+B1)||reporting period (A2+B2)||
|Total guarantee line that has been||Total actual guarantee balance||
|approved at the end of the|154,500|at the end of the reporting|87,923.76|
|reporting period (A3+B3)||period (A4+B4)||
|Proportion of total guarantee amount (A4+B4) to the net assets||||
|||50.10%||
|of the Company||||
|Of which:||||
|Total amount of the above three guarantees (C+D+E)||0||
|||All guarantees provided by the Company are for its controlled||
|Explanation on possible bearing joint responsibility of||||
|||subsidiaries. Currently, all the involved subsidiaries are in normal||
|liquidation due to immature guarantee (if any)||||
|||production and operation, without risk of insolvency.||
|Explanation on provision of guarantees for external parties in||No provision of guarantees by the Company is in violation of the||
|violation of the prescribed procedure (if any)||prescribed procedure.||

Explanation on guarantee that adopts complex method
Explanation on the above guarantee that the Company provided for the subsidiaries:
The “total of the amount of guarantee for the subsidiaries during the reporting period” in the above form and the list of the guarantee situation were referred to the guarantee amount of the listed companies that provided for the each subordinate subsidiaries, not including the guarantee amount among the subsidiaries. Through the approval of the Y2013 Annual General Meeting and the Y2014 1st Extraordinary General Meeting, the amount of the guarantee the Company provided for the subordinate subsidiaries was of RMB 2.1 billion, and the guarantee amount among the subsidiaries was of RMB 0.4 billion as well as the total guarantee amount was of RMB 2.5 billion. The guarantee between the subsidiaries could be seen on the financial statements " Information of related-party guarantee ".
(1) Illegal provision of guarantees for external parties
□ Applicable√ Inapplicable
The Company did not illegally provide any guarantee for any external party in the reporting period.
3. Other significant contracts
□ Applicable√ Inapplicable
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. There was no other significant contract of the Company in the reporting period.
4. Other significant transactions
□ Applicable√ Inapplicable
The Company was not involved in any other significant transaction in the reporting period.
X. Commitments made by the Company or any shareholder holding over5% of theCompany’s shares in the reporting period or such commitments carried down into the reporting period
√ Applicable□ Inapplicable
|||||||
|-|-|-|-|-|-|
||Commitment|Contents of|Date of|Period of||
|Commitment|||||Execution|
||maker|commitment|commitment|commitment||
|Commitments of share reform||||||
||China Paper|||||
|||Competition in||||
|Commitments made in acquisition report|Industry||||Normal|
|||different|15 Nov. 2005|Long-term||
|or in report on changes of equity|Investment||||execution|
|||industry||||
||Corporation|||||
|Commitments made at the time of assets||||||
|reorganization||||||
||Foshan Huaxin|Competition in||||
|Commitments made in the initial public|||||Normal|
||Development|different|23 Jun. 1999|Long-term||
|offering or refinancing|||||execution|
||Co., Ltd.|industry||||
|Commitments made by the company to||||||
|other medium and small shareholders||||||
|Executed timely or not?|Yes|||||

XI. Engagement and disengagement of the CPAs firm
Has the semi-annual financial report been audited?
□ Yes√ No
XII. Punishments and rectifications
□ Applicable√ Inapplicable
No punishment or rectification in the reporting period.
XIII. Delisting risk due to violation of laws or regulations
□ Applicable√ Inapplicable
No such risk in the reporting period.
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. XIV. Other significant events
√ Applicable□ Inapplicable
Approved by the 11th Session of the 5th Board of Directors of 2013, the Company signed the Reserve Agreement on the Use right of State-owned Land and its Supplemented Agreement with Land Reserve Center of Foshan Chansheng District (hereinafter referred to as “reserve center”), which included the land that lied in the west of the No. 13 Gangkou Rd, Chancheng District, Foshan into the land reserve of Chancheng District (hereinafter referred to “the transaction”). According to the above agreement and the evaluated price of the land (1,914,190,000), the income receivable of the transaction of theCompany=transfer income (temporary was evaluated price)×(1-15% taxes and relevant special funds)×(30%+20%), so the Company would totally received the compensation account of about RMB 81,350,000. After submitted the land and the land certification to the reserve center, the Company received the first account from the transaction of RMB 40,680,000. The Company had recognized the profits from the transaction in 2013 (which was of RMB 5,022,120,000 deducted the cost and was of RMB 3,766,590,000 deducted the income tax), and the retained accounts had not received. For the background and the relevant progress of the transaction, please refer to the announcement disclosed on Securities Times, Hong Kong Ta Kung Pao and www.cninfo.com by the Company with the announcement No.: 2013-077, 2013-078, 2013-080, 2014-001, 2014-035.
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. Section VI. Change in Shares& Shareholders
I. Change in shares
Unit: Share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the change||Increase/decrease (+, -)|||||After the change||
||||||Capitalizat|||||
|||Percentag|New|Bonus|ion of||||Percentag|
||Number|||||Other|Subtotal|Number||
|||e|shares|shares|capital||||e|
||||||reserve|||||
||333,500,0|||||||333,500,0||
|I. Unlisted shares||65.98%|||||||65.98%|
||00|||||||00||
||333,500,0|||||||333,500,0||
|1. Sponsor’s shares||65.98%|||||||65.98%|
||00|||||||00||
|Shares held by domestic|333,500,0|||||||333,500,0||
|||65.98%|||||||65.98%|
|corporations|00|||||||00||
||171,925,0|||||||171,925,0||
|II. Listed shares||34.02%|||||||34.02%|
||00|||||||00||
|2. Domestically listed|171,925,0|||||||171,925,0||
|||34.02%|||||||34.02%|
|foreign shares|00|||||||00||
||505,425,0|||||||505,425,0||
|III. Total shares||100.00%|||||||100.00%|
||00|||||||00||

Reasons for changes in shares
□ Applicable√ Inapplicable
Approval of share changes
□ Applicable√ Inapplicable
Transfer of share ownership
□ Applicable√ Inapplicable
Effects of changes in shares on the basic EPS, diluted EPS, net assets per share attributable to common shareholders of the Company and other financial indexes over the last year and the last reporting period
□ Applicable√ Inapplicable
Other contents that the Company considers necessary or is required by the securities regulatory authorities to disclose
□ Applicable√ Inapplicable
Change of the total shares, shareholder structure, asset structure and liability structure
□ Applicable√ Inapplicable
II. Total number of shareholders and their shareholdings
Unit: Share
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Total number of preferred share|||||||
|Total number of common|||||holders who had resumed their|||||||
|shareholders at the end of the||15,620|||voting right at the end of the|||||0||
|reporting period|||||reporting period (if any) (see|||||||
||||||note 8)|||||||
|Shareholdings of shareholders holding more than 5% shares or top 10 shareholders||||||||||||
|||||||Increa|||Pledged or frozen shares|||
|||||||se/dec||||||
|||||Number||rease||Number||||
||||||||Number|||||
|||||of shares||of||of||||
||||||||of|||||
|Name of|Nature of||Shareholding|held at the||shares||non-rest||||
||||||||restricte|||||
|shareholder|shareholder||percentage (%)|end of the||during||ricted|Status of shares||Number of shares|
||||||||d shares|||||
|||||reporting||the||shares||||
||||||||held|||||
|||||period||reporti||held||||
|||||||ng||||||
|||||||period||||||
|Foshan HuaxinDevelopmentCo., Ltd.|State-ownedcorporation||65.20%|329,512,030||0|329,512,030|0||||
|Wu Haoyuan|Foreign naturalperson||0.51%|2,561,991||0|0|2,561,991||||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|Foreigncorporation||0.39%|1,990,984||160350|0|1,990,984||||
|ZhanChangcheng|Domestic naturalperson||0.32%|1,600,000||0|0|1,600,000||||
|Wu Fenqiang|Domestic naturalperson||0.26%|1,330,000||0|0|1,330,000||||
|Foshan Chan BenDe DevelopmentCo., Ltd.|State-ownedcorporation||0.23%|1,139,420||0|1,139,420|0||||
|Zheng Heng|Domestic naturalperson||0.20%|999,198||297|0|999,198||||
|Zhu Shijie|Domestic naturalperson||0.20%|987,472||0|0|987,472||||
|Chen Cirou|Domestic naturalperson||0.19%|963,109||0|0|963,109||||
|Ma Zeqi|Domestic natural||0.19%|959,762||0|0|959,762||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
||person||||
|Particulars about strategic investors|||||
|or common legal persons who|||||
|became the top ten shareholders||N/A|||
|because of the issuance of additional|||||
|shares (if any)|||||
|||① Foshan Chan Ben De Development Co., Ltd is equity shareholder of Foshan Huaxin|||
|||Development Co., Ltd, the largest shareholder of the Company, and then there exists|||
|||associated relationship among Foshan Chan Ben De Development Co., Ltd, the Company|||
|||and controlling shareholder Foshan Huaxin Development Co., Ltd.|||
|Explanations about associated|||||
|relationship or concerted action||② It is unknown to the Company whether there exists associated relationship among the|||
|among the above shareholders|||||
|||shareholders above or they are acting-in-concert entities as stipulated in the Administrative|||
|||Measures on Information Disclosure of Changes in Shareholding of Listed Companies.|||
|||③ In the reporting period, the shares held by those shareholders of the Company holding|||
|||over 5% (including 5%) were not pledged or frozen.|||
|Shareholdings of the top ten shareholders not subject to trading moratorium|||||
|||Amount of listed and circulated shares at the end of the|Type of shares||
|Name of shareholders|||||
|||year|Type|Amount|
|Wu Haoyuan||2,561,991|Domestically||
||||listed foreign|2,561,991|
||||shares||
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED||1,990,984|Domestically||
||||listed foreign|1,990,984|
||||shares||
|Zhan Changcheng||1,600,000|Domestically||
||||listed foreign|1,600,000|
||||shares||
|Wu Fenqiang||1,330,000|Domestically||
||||listed foreign|1,330,000|
||||shares||
|Zheng Heng||999,198|Domestically||
||||listed foreign|999,198|
||||shares||
|Zhu Shijie||987,472|Domestically||
||||listed foreign|987,472|
||||shares||
|Chen Cirou||963,109|Domestically||
|||||963,109|
||||listed foreign||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|||shares||
|Ma Zeqi|959,762|Domestically||
|||listed foreign|959,762|
|||shares||
|Liu Bin|888,000|Domestically||
|||listed foreign|888,000|
|||shares||
|VANGUARD TOTALINTERNATIONAL STOCK INDEXFUND|840,392|Domestically||
|||listed foreign|840,392|
|||shares||
|Explanation about associated||||
|relationship and concerted action||||
|among the top ten shareholders not||||
||It is unknown whether the tradable share holders above are related parties or whether they|||
|subject to trading moratorium as well||||
||are parties acting in concert as stipulated in the Administrative Methods for Information|||
||Disclosure Regarding Shareholding Changes of Listed Companies.|||
|as between the top ten shareholders||||
|not subject to trading moratorium and||||
|the top ten shareholders||||
|Particulars about shareholders||||
|participating in margin trading (if|N/A|||
|any) (note 4)||||

Did any shareholder of the Company carry out an agreed buy-back in the reporting period?
□ Yes√ No
No shareholder of the Company carried out any agreed buy-back in the reporting period.
III. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable√ Inapplicable
The controlling shareholder of the Company did not change in the reporting period.
Change of the actual controller in the reporting period
□ Applicable√ Inapplicable
The actual controller of the Company did not change in the reporting period.
IV. Any shareholding increase plan proposed or implemented by any shareholder or its act-in-concert party during the reporting period
□ Applicable√ Inapplicable
To the best knowledge of the Company, no shareholder or its act-in-concert party proposed or implemented any shareholding increase
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. plan during the reporting period.
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. Section VII. Preferred Shares
I. Issuance and listing of preferred shares in the reporting period
□ Applicable√ Inapplicable
II. Number of preferred share holder and their shareholdings
□ Applicable√ Inapplicable
III. Buy-back or conversion of preferred shares
1. Buy-back of preferred shares
□ Applicable√ Inapplicable
2. Conversion of preferred shares
□ Applicable√ Inapplicable
IV. Resumption and exercise of voting rights of preferred shares
□ Applicable√ Inapplicable
V. Accounting policies adopted for preferred shares and reasons
□ Applicable√ Inapplicable
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. Section VIII. Directors, Supervisors& Senior Management Staff I. Change of shareholdings of directors, supervisors and senior management staff
□ Applicable√ Inapplicable
There was no change in the shareholdings of directors, supervisors and senior management staff in the reporting period. For details, please refer to the 2013 Annual Report.
II. Change of directors, supervisors and senior management staff
√ Applicable□ Inapplicable
||||||
|-|-|-|-|-|
|Name|Position|Type|Date|Reason|
||Vice-president,|Left as term|||
|Wang Qi|||6 Jun. 2014|Left as term expired|
||General Manager|expired|||
|||Left as term|||
|Wang Jun|Director||6 Jun. 2014|Left as term expired|
|||expired|||
|||Left as term|||
|Yan Su|Director||6 Jun. 2014|Left as term expired|
|||expired|||
||Independent|Left as term|||
|Zhu Zhengfu|||6 Jun. 2014|Left as term expired|
||Director|expired|||
|Tong Laiming|Chairman|Elected|6 Jun. 2014|Elected as the term of office changed|
||Deputy||||
|Ji Xiangdong||Elected|6 Jun. 2014|Elected as the term of office changed|
||Chairman||||
|Hong Jun|Director|Elected|6 Jun. 2014|Elected as the term of office changed|
|Huang Xin|Director|Elected|6 Jun. 2014|Elected as the term of office changed|
|Ye Meng|Director|Elected|6 Jun. 2014|Elected as the term of office changed|
|Yang Weixing|Director|Elected|6 Jun. 2014|Elected as the term of office changed|
||Independent||||
|Zhao Wei||Elected|6 Jun. 2014|Elected as the term of office changed|
||Director||||
||Independent||||
|Zhang Wenjing||Elected|6 Jun. 2014|Elected as the term of office changed|
||Director||||
||Independent||||
|Yang Zhenyu||Elected|6 Jun. 2014|Elected as the term of office changed|
||Director||||
||Supervisory|Left as term|||
|Hong Jun|||6 Jun. 2014|Left as term expired|
||Board Chairman|expired|||
||Employee|Left as term|||
|Chen Zhenran|||6 Jun. 2014|Left as term expired|
||Supervisor|expired|||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
||Supervisory||||
|Ren Xiaoming||Elected|6 Jun. 2014|Elected as the term of office changed|
||Board Chairman||||
|Huang Jianrong|Supervisor|Elected|6 Jun. 2014|Elected as the term of office changed|
||Employee||||
|Yang Chenglin||Elected|6 Jun. 2014|Elected as the term of office changed|
||Supervisor||||
|Ji Xiangdong|General Manager|Engaged|6 Jun. 2014|Engaged by the Board of Directors|
||Deputy General||||
|Chen Jiali||Engaged|6 Jun. 2014|Engaged by the Board of Directors|
||Manager||||
||Deputy General||||
|Liu Hanwen||Engaged|6 Jun. 2014|Engaged by the Board of Directors|
||Manager||||
||Deputy General||||
|Wu Yirong||Engaged|6 Jun. 2014|Engaged by the Board of Directors|
||Manager||||
||Deputy General||||
|Chen Zhenran||Engaged|6 Jun. 2014|Engaged by the Board of Directors|
||Manager||||
||Deputy General||||
|Yang Yinghui|Manager, CFO,|Engaged|6 Jun. 2014|Engaged by the Board of Directors|
||Board Secretary||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. IX. Financial Statements
I. Audit report
Has this semi-annual report been audited?
□ Yes√ No
The semi-annual financial report has not been audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB Yuan
1. Consolidated balance sheet
Prepared by Foshan Huaxin Packaging Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Monetary funds|350,085,396.28|201,666,231.22|
|Settlement reserves|||
|Intra-group lendings|||
|Transactional financial assets|||
|Notes receivable|529,451,218.84|362,998,502.84|
|Accounts receivable|861,937,420.09|867,805,009.95|
|Accounts paid in advance|204,364,368.45|207,761,823.07|
|Premiums receivable|||
|Reinsurance premiums receivable|||
|Receivable reinsurance contract|||
|reserves|||
|Interest receivable|||
|Dividend receivable|||
|Other accounts receivable|107,106,420.86|66,085,747.47|
|Financial assets purchased under|||
|agreements to resell|||
|Inventories|1,025,805,158.42|780,502,680.31|
|Non-current assets due within 1 year|||
|Other current assets|||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Total current assets|3,078,749,982.94|2,486,819,994.86|
|Non-current assets:|||
|Loans by mandate and advances|||
|granted|||
|Available-for-sale financial assets|4,222,090.08|4,862,620.84|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investment|239,451,242.34|7,720,552.20|
|Investing property|12,935,269.22|16,380,804.64|
|Fixed assets|2,871,742,962.04|2,964,629,037.82|
|Construction in progress|207,078,445.87|113,869,930.02|
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|123,426,831.55|117,213,820.33|
|R&D expense|12,554,942.88|12,554,942.88|
|Goodwill|11,547,305.29|11,547,305.29|
|Long-term deferred expenses|1,780,963.31|929,287.66|
|Deferred income tax assets|36,738,164.07|36,738,164.07|
|Other non-current assets|||
|Total of non-current assets|3,521,478,216.65|3,286,446,465.75|
|Total assets|6,600,228,199.59|5,773,266,460.61|
|Current liabilities:|||
|Short-term borrowings|1,125,415,771.34|746,518,360.93|
|Borrowings from Central Bank|||
|Customer bank deposits and due to|||
|banks and other financial institutions|||
|Intra-group borrowings|||
|Transactional financial liabilities|||
|Notes payable|115,148,852.94|7,208,770.58|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Accounts payable|498,993,807.44|305,340,312.40|
|Accounts received in advance|25,352,724.73|41,644,176.60|
|Financial assets sold for repurchase|||
|Handling charges and commissions|||
|payable|||
|Employee’s compensation payable|18,420,157.18|39,051,200.53|
|Tax payable|-39,466,596.00|20,193,255.40|
|Interest payable|45,533,873.33|28,765,634.67|
|Dividend payable|170,913.00|9,732,961.09|
|Other accounts payable|213,528,970.67|25,645,628.13|
|Reinsurance premiums payable|||
|Insurance contract reserves|||
|Payables for acting trading of|||
|securities|||
|Payables for acting underwriting of|||
|securities|||
|Non-current liabilities due within 1|||
||418,750,000.00||
|year|||
|Other current liabilities|||
|Total current liabilities|2,421,848,474.63|1,224,100,300.33|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|794,102,754.18|793,330,251.65|
|Long-term payables|37,530,596.06|461,462,266.00|
|Specific payables|||
|Estimated liabilities|7,146,269.00|7,146,269.00|
|Deferred income tax liabilities|3,227,922.13|3,324,001.75|
|Other non-current liabilities|8,810,000.00|8,810,000.00|
|Total non-current liabilities|850,817,541.37|1,274,072,788.40|
|Total liabilities|3,272,666,016.00|2,498,173,088.73|
|Owners’ equity (or shareholders’|||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|equity)|||
|Paid-up capital (or share capital)|505,425,000.00|505,425,000.00|
|Capital reserves|257,221,534.70|257,450,015.25|
|Less: Treasury stock|||
|Specific reserves|||
|Surplus reserves|179,240,134.80|179,240,134.80|
|Provisions for general risks|||
|Retained profits|812,908,807.79|787,821,828.63|
|Foreign exchange difference|||
|Total equity attributable to owners of|||
||1,754,795,477.29|1,729,936,978.68|
|the Company|||
|Minority interests|1,572,766,706.30|1,545,156,393.20|
|Total owners’ (or shareholders’) equity|3,327,562,183.59|3,275,093,371.88|
|Total liabilities and owners’ (or|||
||6,600,228,199.59|5,773,266,460.61|
|shareholders’) equity|||

Legal representative: Tong Laiming Person-in-charge of the accounting work: Ji Xiangdong Person-in-charge of accounting firm: Yang Yinghui
2. Balance sheet of the Company
Prepared by Foshan Huaxin Packaging Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Monetary funds|9,950,989.37|45,291,203.37|
|Transactional financial assets|||
|Notes receivable|||
|Accounts receivable|16,464,948.05|51,991.20|
|Accounts paid in advance|73,534.00|73,114.00|
|Interest receivable|||
|Dividend receivable|||
|Other accounts receivable|1,655,376,464.56|1,689,379,067.73|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Inventories|||
|Non-current assets due within 1 year|||
|Other current assets|||
|Total current assets|1,681,865,935.98|1,734,795,376.30|
|Non-current assets:|||
|Available-for-sale financial assets|||
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investment|1,511,557,642.14|1,280,107,442.14|
|Investing property|||
|Fixed assets|358,126.66|526,396.87|
|Construction in progress|||
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|569,078.95|614,177.89|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|||
|Other non-current assets|||
|Total of non-current assets|1,512,484,847.75|1,281,248,016.90|
|Total assets|3,194,350,783.73|3,016,043,393.20|
|Current liabilities:|||
|Short-term borrowings|90,000,000.00|120,000,000.00|
|Transactional financial liabilities|||
|Notes payable|||
|Accounts payable|16,801,639.26|51,991.19|
|Accounts received in advance|||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Employee’s compensation payable|33,113.07|25,095.87|
|Tax payable|1,026,847.97|13,836,851.52|
|Interest payable|34,596,450.07|21,997,861.17|
|Dividend payable|170,913.00|170,913.00|
|Other accounts payable|163,406,876.35|213,718.67|
|Non-current liabilities due within 1|||
||418,750,000.00||
|year|||
|Other current liabilities|||
|Total current liabilities|724,785,839.72|156,296,431.42|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|794,102,754.18|793,330,251.65|
|Long-term payables||418,750,000.00|
|Specific payables|||
|Estimated liabilities|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|794,102,754.18|1,212,080,251.65|
|Total liabilities|1,518,888,593.90|1,368,376,683.07|
|Owners’ equity (or shareholders’|||
|equity)|||
|Paid-up capital (or share capital)|505,425,000.00|505,425,000.00|
|Capital reserves|250,531,482.00|250,531,482.00|
|Less: Treasury stock|||
|Specific reserves|||
|Surplus reserves|179,240,134.80|179,240,134.80|
|Provisions for general risks|||
|Retained profits|740,265,573.03|712,470,093.33|
|Foreign exchange difference|||
|Total owners’ (or shareholders’) equity|1,675,462,189.83|1,647,666,710.13|
|Total liabilities and owners’ (or|3,194,350,783.73|3,016,043,393.20|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||
|-|
|shareholders’) equity|

Legal representative: Tong Laiming Person-in-charge of the accounting work: Ji Xiangdong Person-in-charge of accounting firm: Yang Yinghui
3. Consolidated income statement
Prepared by Foshan Huaxin Packaging Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Jun. 2014|Jan.-Jun 2013|
|I. Total operating revenues|1,790,137,651.12|1,986,679,927.67|
|Including: Sales income|1,790,137,651.12|1,986,679,927.67|
|Interest income|||
|Premium income|||
|Handling charge and|||
|commission income|||
|II. Total operating cost|1,722,931,506.39|1,971,639,799.57|
|Including: Cost of sales|1,506,684,829.97|1,742,766,008.88|
|Interest expenses|||
|Handling charge and|||
|commission expenses|||
|Surrenders|||
|Net claims paid|||
|Net amount withdrawn for the|||
|insurance contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium|||
|Taxes and associate charges|6,601,621.25|12,621,865.34|
|Selling and distribution expenses|74,769,251.48|86,726,072.55|
|Administrative expenses|71,304,542.73|72,245,879.01|
|Financial expenses|63,571,260.96|61,375,124.37|
|Asset impairment loss||-4,095,150.58|
|Add: Gain/(loss) from change in fair|||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|value (“-” means loss)|||
|Gain/(loss) from investment (“-”|||
||280,490.14|148,251.90|
|means loss)|||
|Including: share of profits in associates|||
||280,490.14|21,466.39|
|and joint ventures|||
|Foreign exchange gains (“-” means|||
|loss)|||
|III. Business profit (“-” means loss)|67,486,634.87|15,188,380.00|
|Add: non-operating income|3,291,758.84|3,265,921.02|
|Less: non-operating expense|553,644.52|195,555.18|
|Including: loss from non-current asset|||
||506,744.11|3,412.89|
|disposal|||
|IV. Total profit (“-” means loss)|70,224,749.19|18,258,745.84|
|Less: Income tax expense|17,211,486.34|19,755,209.39|
|V. Net profit (“-” means loss)|53,013,262.85|-1,496,463.55|
|Including: Net profit achieved by|||
|combined parties before the|||
|combinations|||
|Attributable to owners of the|||
||25,086,979.16|3,886,014.86|
|Company|||
|Minority shareholders’ income|27,926,283.69|-5,382,478.41|
|VI. Earnings per share|--|--|
|(I) Basic earnings per share|0.05|0.008|
|(II) Diluted earnings per share|0.05|0.008|
|VII. Other comprehensive incomes|-544,451.14|-961,489.83|
|VIII. Total comprehensive incomes|52,468,811.71|-2,457,953.38|
|Attributable to owners of the|||
||24,858,498.61|3,482,522.77|
|Company|||
|Attributable to minority|||
||27,610,313.10|-5,940,476.15|
|shareholders|||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. Legal representative: Tong Laiming Person-in-charge of the accounting work: Ji Xiangdong Person-in-charge of accounting firm: Yang Yinghui
4. Income statement of the Company
Prepared by Foshan Huaxin Packaging Co., Ltd.
Unit: RMBYuan元
||||
|-|-|-|
|Item|Jan.-Jun. 2014|Jan.-Jun 2013|
|I. Total sales|118,720,954.99|59,488,521.64|
|Less: cost of sales|83,677,672.61|24,400,882.34|
|Business taxes and surcharges|2,075,070.35|2,143,006.95|
|Distribution expenses|||
|Administrative expenses|4,954,841.94|6,498,765.38|
|Financial costs|-9,047,519.53|-8,722,298.23|
|Impairment loss|||
|Add: gain/(loss) from change in fair|||
|value (“-” means loss)|||
|Gain/(loss) from investment (“-” means|||
|loss)|||
|Including: income form investment on|||
|associates and joint ventures|||
|II. Business profit (“-” means loss)|37,060,889.62|35,168,165.20|
|Add: non-business income|||
|Less: non-business expense|250.00||
|Including: loss from non-current asset|||
|disposal|||
|III. Total profit (“-” means loss)|37,060,639.62|35,168,165.20|
|Less: income tax expense|9,265,159.92|8,792,041.30|
|IV. Net profit (“-” means loss)|27,795,479.70|26,376,123.90|
|V. Earnings per share|--|--|
|(I) Basic earnings per share|0.0550|0.0520|
|(II) Diluted earnings per share|0.0550|0.0520|
|VI. Other comprehensive income|0.00|0.00|
|VII. Total comprehensive income|27,795,479.70|26,376,123.90|

Legal representative: Tong Laiming Person-in-charge of the accounting work: Ji Xiangdong
Person-in-charge of accounting firm: Yang Yinghui
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. 5. Consolidated cash flow statement
Prepared by Foshan Huaxin Packaging Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Jun. 2014|Jan.-Jun 2013|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||1,366,915,263.79|1,430,056,401.85|
|commodities and rendering of service|||
|Net increase of deposits from|||
|customers and dues from banks|||
|Net increase of loans from the central|||
|bank|||
|Net increase of funds borrowed from|||
|other financial institutions|||
|Cash received from premium of|||
|original insurance contracts|||
|Net cash received from reinsurance|||
|business|||
|Net increase of deposits of policy|||
|holders and investment fund|||
|Net increase of disposal of tradable|||
|financial assets|||
|Cash received from interest, handling|||
|charges and commissions|||
|Net increase of intra-group|||
|borrowings|||
|Net increase of funds in repurchase|||
|business|||
|Tax refunds received|119,114.24|95,748.74|
|Other cash received relating to|||
||74,065,297.60|239,345,453.75|
|operating activities|||
|Subtotal of cash inflows from operating|||
||1,441,099,675.63|1,669,497,604.34|
|activities|||
|Cash paid for goods and services|1,368,652,682.41|883,770,725.66|
|Net increase of customer lendings|||
|and advances|||
|Net increase of funds deposited in the|||
|central bank and amount due from|||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|banks|||
|Cash for paying claims of the original|||
|insurance contracts|||
|Cash for paying interest, handling|||
|charges and commissions|||
|Cash for paying policy dividends|||
|Cash paid to and for employees|143,306,375.77|120,171,598.69|
|Various taxes paid|94,250,394.71|205,496,488.49|
|Other cash payment relating to|||
||53,985,990.03|49,302,311.89|
|operating activities|||
|Subtotal of cash outflows from|||
||1,660,195,442.92|1,258,741,124.73|
|operating activities|||
|Net cash flows from operating activities|-219,095,767.29|410,756,479.61|
|II. Cash flows from investing activities:|||
|Cash received from withdrawal of|||
|investments|||
|Cash received from return on|||
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|1,764,763.64|9,859,280.50|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other business units|||
|Other cash received relating to|||
|investing activities|||
|Subtotal of cash inflows from|||
||1,764,763.64|9,859,280.50|
|investing activities|||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long-term|101,405,106.03|54,774,287.29|
|assets|||
|Cash paid for investment|69,435,060.00|569,366.39|
|Net increase of pledged loans|||
|Net cash paid to acquire subsidiaries|||
|and other business units|||
|Other cash payments relating to|||
|||4,920.00|
|investing activities|||
|Subtotal of cash outflows from|||
||170,840,166.03|55,348,573.68|
|investing activities|||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Net cash flows from investing activities|-169,075,402.39|-45,489,293.18|
|III. Cash flows from financing|||
|activities:|||
|Cash received from capital|||
|contributions|||
|Including: Cash received from|||
|minority shareholder investments by|||
|subsidiaries|||
|Cash received from borrowings|1,061,684,649.51|795,455,637.39|
|Cash received from issuance of|||
|bonds|||
|Other cash received relating to|||
|financing activities|||
|Subtotal of cash inflows from financing|||
||1,061,684,649.51|795,455,637.39|
|activities|||
|Repayment of borrowings|679,149,386.41|1,352,817,186.59|
|Cash paid for interest expenses and|||
||38,766,216.21|76,581,479.18|
|distribution of dividends or profit|||
|Including: dividends or profit paid|||
|by subsidiaries to minority shareholders|||
|Other cash payments relating to|||
|financing activities|||
|Sub-total of cash outflows from|||
||717,915,602.62|1,429,398,665.77|
|financing activities|||
|Net cash flows from financing activities|343,769,046.89|-633,943,028.38|
|IV. Effect of foreign exchange rate|||
||-517,777.65|-51,105.95|
|changes on cash and cash equivalents|||
|V. Net increase in cash and cash|||
||-44,919,900.44|-268,726,947.90|
|equivalents|||
|Add: Opening balance of cash and|||
||200,248,786.56|378,872,416.49|
|cash equivalents|||
|VI. Closing balance of cash and cash|||
||155,328,886.12|110,145,468.59|
|equivalents|||

Legal representative: Tong Laiming Person-in-charge of the accounting work: Ji Xiangdong Person-in-charge of accounting firm: Yang Yinghui
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. 6. Cash flow statement of the Company
Prepared by Foshan Huaxin Packaging Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Jun. 2014|Jan.-Jun 2013|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||116,525,528.20|53,806,964.28|
|commodities and rendering of service|||
|Tax refunds received|||
|Other cash received relating to|||
||272,966,316.88|83,010,738.81|
|operating activities|||
|Subtotal of cash inflows from operating|||
||389,491,845.08|136,817,703.09|
|activities|||
|Cash paid for goods and services|81,437,928.90|18,626,326.62|
|Cash paid to and for employees|2,831,079.62|3,883,856.16|
|Various taxes paid|24,436,978.17|69,243,271.03|
|Other cash payment relating to|||
||193,082,206.39|91,010,769.75|
|operating activities|||
|Subtotal of cash outflows from|||
||301,788,193.08|182,764,223.56|
|operating activities|||
|Net cash flows from operating activities|87,703,652.00|-45,946,520.47|
|II. Cash flows from investing activities:|||
|Cash received from retraction of|||
|investments|||
|Cash received from return on|||
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|||
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other business units|||
|Other cash received relating to|||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|investing activities|||
|Subtotal of cash inflows from|||
|investing activities|||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long-term|25,306.00|367,749.00|
|assets|||
|Cash paid for investment|69,435,060.00||
|Net cash paid to acquire subsidiaries|||
|and other business units|||
|Other cash payments relating to|||
|investing activities|||
|Subtotal of cash outflows from|||
||69,460,366.00|367,749.00|
|investing activities|||
|Net cash flows from investing activities|-69,460,366.00|-367,749.00|
|III. Cash Flows from Financing|||
|Activities:|||
|Cash received from capital|||
|contributions|||
|Cash received from borrowings||161,000,001.00|
|Cash received from issuance of|||
|bonds|||
|Other cash received relating to|||
|financing activities|||
|Subtotal of cash inflows from financing|||
|||161,000,001.00|
|activities|||
|Repayment of borrowings|30,000,000.00|307,450,001.00|
|Cash paid for interest expenses and|||
||23,583,500.00|26,752,480.57|
|distribution of dividends or profit|||
|Other cash payments relating to|||
|financing activities|||
|Sub-total of cash outflows from|53,583,500.00|334,202,481.57|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|financing activities|||
|Net cash flows from financing activities|-53,583,500.00|-173,202,480.57|
|IV. Effect of foreign exchange ratechanges on cash and cash equivalents|||
|V. Net increase in cash and cashequivalents|||
||-35,340,214.00|-219,516,750.04|
|Add: Opening balance of cash andcash equivalents|||
||45,291,203.37|225,554,664.36|
|VI. Closing balance of cash and cashequivalents|||
||9,950,989.37|6,037,914.32|

Legal representative: Tong Laiming Person-in-charge of the accounting work: Ji Xiangdong Person-in-charge of accounting firm: Yang Yinghui
7. Consolidated Statement of Changes inOwners’ Equity
Prepared by Foshan Huaxin Packaging Co., Ltd.
Jan.-Jun. 2014
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Reporting period||||||||||
||Equity attributable to owners of the Company||||||||||
||Paid-up|Capitalreserve|||||||||
|||||||||||Total|
|Item|capital||Less:|||General|||Minority||
|||||Specific|Surplus||Retaine|||owners’|
||(or||treasury|||risk||Others|interests||
|||||reserve|reserve||d profit|||equity|
||share||stock|||reserve|||||
||capital)||||||||||
|I. Balance at the end of the|505,425|257,450,|||179,240||787,821,||1,545,156|3,275,093,|
|previous year|,000.00|015.25|||,134.80||828.63||,393.20|371.88|
|Add: change of accounting|||||||||||
|policy|||||||||||
|Correction of errors in|||||||||||
|previous periods|||||||||||
|Other|||||||||||
|II. Balance at the beginning of|505,425|257,450,|||179,240||787,821,||1,545,156|3,275,093,|
|the year|,000.00|015.25|||,134.80||828.63||,393.20|371.88|
|III. Increase/ decrease in the||-228,48|||||25,086,9||27,610,31|52,468,811|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|period (“-” means decrease)|0.55|79.16|3.10|.71|
|||25,086,9|27,926,28|53,013,262|
|(I) Net profit|||||
|||79.16|3.69|.85|
|(II) Other comprehensive|-228,48||-315,970.|-544,451.1|
|incomes|0.55||59|4|
||-228,48|25,086,9|27,610,31|52,468,811|
|Subtotal of (I) and (II)|||||
||0.55|79.16|3.10|.71|
|(III) Capital paid in and|||||
|reduced by owners|||||
|1. Capital paid in by|||||
|owners|||||
|2. Amounts of share-based|||||
|payments recognized in|||||
|owners’ equity|||||
|3. Others|||||
|(IV) Profit distribution|||||
|1. Appropriations to|||||
|surplus reserves|||||
|2. Appropriations to|||||
|general risk provisions|||||
|3. Appropriations to|||||
|owners (or shareholders)|||||
|4. Other|||||
|(V) Internal carry-forward of|||||
|owners’ equity|||||
|1. New increase of capital|||||
|(or share capital) from capital|||||
|public reserves|||||
|2. New increase of capital|||||
|(or share capital) from surplus|||||
|reserves|||||
|3. Surplus reserves for|||||
|making up losses|||||
|4. Other|||||
|(VI) Specific reserve|||||
|1. Withdrawn for the|||||
|period|||||
|2. Used in the period|||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|(VII) Other|||||||
||505,425|257,221,|179,240|812,908,|1,572,766|3,327,562,183.59|
|IV. Closing balance|||||||
||,000.00|534.70|,134.80|807.79|,706.30||

 Jan.-Jun. 2013
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Same period of last year||||||||||
||Equity attributable to owners of the Company||||||||||
||Paid-up||||||||||
|||||||||||Total|
|Item|capital||Less:|||General|||Minority||
|||Capital||Specific|Surplus||Retaine|||owners’|
||(or||treasury|||risk||Others|interests||
|||reserve||reserve|reserve||d profit|||equity|
||share||stock|||reserve|||||
||capital)||||||||||
|I. Balance at the end of the|505,425|262,091,|||170,337||768,206,||1,568,459|3,274,519,|
|previous year|,000.00|190.27|||,106.09||504.60||,238.94|039.90|
|Add: retrospective|||||||||||
|adjustment due to business|||||||||||
|combination under the same|||||||||||
|control|||||||||||
|Add: change of accounting|||||||||||
|policy|||||||||||
|Correction of errors in|||||||||||
|previous periods|||||||||||
|Other|||||||||||
|II. Balance at the beginning of|505,425|262,091,|||170,337||768,206,||1,568,459|3,274,519,|
|the year|,000.00|190.27|||,106.09||504.60||,238.94|039.90|
|III. Increase/ decrease in the||-4,641,1|||8,903,0||19,615,3||-23,302,8||
|||||||||||574,331.98|
|period (“-” means decrease)||75.02|||28.71||24.03||45.74||
||||||||79,060,8||18,655,36|97,716,219|
|(I) Net profit|||||||||||
||||||||52.74||6.60|.34|
|(II) Other comprehensive||467,754.|||||||646,867.0|1,114,621.|
|incomes||15|||||||8|23|
|||467,754.|||||79,060,8||19,302,23|98,830,840|
|Subtotal of (I) and (II)|||||||||||
|||15|||||52.74||3.68|.57|
|(III) Capital paid in and||-5,568,7|||||||-44,293,8|-49,862,60|
|reduced by owners||77.21|||||||22.79|0.00|
|1. Capital paid in by|||||||||-44,293,8|-44,293,82|
|owners|||||||||22.79|2.79|
|2. Amounts of share-based|||||||||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|payments recognized in|||||||
|owners’ equity|||||||
|||-5,568,7||||-5,568,777.|
|3. Others|||||||
|||77.21||||21|
||||8,903,0|-59,445,||-50,542,50|
|(IV) Profit distribution|||||||
||||28.71|528.71||0.00|
|1. Appropriations to|||8,903,0|-8,903,0|||
|surplus reserves|||28.71|28.71|||
|2. New increase of capital|||||||
|(or share capital) from surplus|||||||
|reserves|||||||
|3. Surplus reserves for||||-50,542,||-50,542,50|
|making up losses||||500.00||0.00|
|4. Other|||||||
|(V) Internal carry-forward of|||||||
|owners’ equity|||||||
|1. New increase of capital|||||||
|(or share capital) from capital|||||||
|public reserves|||||||
|2. New increase of capital|||||||
|(or share capital) from surplus|||||||
|reserves|||||||
|3. Surplus reserves for|||||||
|making up losses|||||||
|4. Other|||||||
|(VI) Specific reserve|||||||
|1. Withdrawn for the|||||||
|period|||||||
|2. Used in the period|||||||
|||459,848.|||1,688,743|2,148,591.|
|(VII) Other|||||||
|||04|||.37|41|
||505,425|257,450,|179,240|787,821,|1,545,156|3,275,093,|
|IV. Closing balance|||||||
||,000.00|015.25|,134.80|828.63|,393.20|371.88|

 Legal representative: Tong Laiming Person-in-charge of the accounting work: Ji Xiangdong Person-in-charge of accounting firm: Yang Yinghui
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. 8. Statement of changes inowners’ equity of the Company
Prepared by Foshan Huaxin Packaging Co., Ltd.
Jan.-Jun. 2014
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Reporting period||||||||
||Paid-up||||||||
||||Less:|||General||Total|
|Item|capital (or|Capital||Specific|Surplus||Retained||
||||treasury|||risk||owners’|
||share|reserve||reserve|reserve||profit||
||||stock|||reserve||equity|
||capital)||||||||
|I. Balance at the end of the|505,425,00|250,531,48|||179,240,13||712,470,09|1,647,666,|
|previous year|0.00|2.00|||4.80||3.33|710.13|
|Add: change of accounting|||||||||
|policy|||||||||
|Correction of errors in|||||||||
|previous periods|||||||||
|Other|||||||||
|II. Balance at the beginning of|505,425,00|250,531,48|||179,240,13||712,470,09|1,647,666,|
|the year|0.00|2.00|||4.80||3.33|710.13|
|III. Increase/ decrease in the|||||||27,795,479|27,795,479|
|period (“-” means decrease)|||||||.70|.70|
||||||||27,795,479|27,795,479|
|(I) Net profit|||||||||
||||||||.70|.70|
|(II) Other comprehensive|||||||||
|incomes|||||||||
||||||||27,795,479|27,795,479|
|Subtotal of (I) and (II)|||||||||
||||||||.70|.70|
|(III) Capital paid in and|||||||||
|reduced by owners|||||||||
|1. Capital paid in by owners|||||||||
|2. Amounts of share-based|||||||||
|payments recognized in owners’|||||||||
|equity|||||||||
|3. Others|||||||||
|(IV) Profit distribution|||||||||
|1. Appropriations to surplus|||||||||
|reserves|||||||||
|2. Appropriations to general|||||||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
|risk provisions||||||
|3. Appropriations to owners||||||
|(or shareholders)||||||
|4. Other||||||
|(V) Internal carry-forward of||||||
|owners’ equity||||||
|1. New increase of capital||||||
|(or share capital) from capital||||||
|public reserves||||||
|2. New increase of capital||||||
|(or share capital) from surplus||||||
|reserves||||||
|3. Surplus reserves for||||||
|making up losses||||||
|4. Other||||||
|(VI) Specific reserve||||||
|1. Withdrawn for the period||||||
|2. Used in the period||||||
|(VII) Other||||||
||505,425,00|250,531,48|179,240,13|740,265,57|1,675,462,189.83|
|IV. Closing balance||||||
||0.00|2.00|4.80|3.03||

 Jan.-Jun. 2013
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Same period of last year||||||||
||Paid-up||||||||
||||Less:|||General||Total|
|Item|capital (or|Capital||Specific|Surplus||Retained||
||||treasury|||risk||owners’|
||share|reserve||reserve|reserve||profit||
||||stock|||reserve||equity|
||capital)||||||||
|I. Balance at the end of the|505,425,00|250,531,48|||133,989,44||456,841,40|1,346,787,|
|previous year|0.00|2.00|||7.19||4.84|334.03|
|Add: change of accounting|||||||||
|policy|||||||||
|Correction of errors in|||||||||
|previous periods|||||||||
|Other|||||||||
|II. Balance at the beginning of|505,425,00|250,531,48|||133,989,44||456,841,40|1,346,787,|
|the year|0.00|2.00|||7.19||4.84|334.03|
|III. Increase/ decrease in the|||||36,347,658||226,043,93|262,391,58|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|period (“-” means decrease)|.90|0.09|8.99|
|||363,476,58|363,476,58|
|(I) Net profit||||
|||8.99|8.99|
|(II) Other comprehensive||||
|incomes||||
|||363,476,58|363,476,58|
|Subtotal of (I) and (II)||||
|||8.99|8.99|
|(III) Capital paid in and||||
|reduced by owners||||
|1. Capital paid in by owners||||
|2. Amounts of share-based||||
|payments recognized in owners’||||
|equity||||
|3. Others||||
||36,347,658|-137,432,6|-101,085,0|
|(IV) Profit distribution||||
||.90|58.90|00.00|
|1. Appropriations to surplus|36,347,658|-36,347,65||
|reserves|.90|8.90||
|2. Appropriations to general||||
|risk provisions||||
|3. Appropriations to owners||-101,085,0|-101,085,0|
|(or shareholders)||00.00|00.00|
|4. Other||||
|(V) Internal carry-forward of||||
|owners’ equity||||
|1. New increase of capital||||
|(or share capital) from capital||||
|public reserves||||
|2. New increase of capital||||
|(or share capital) from surplus||||
|reserves||||
|3. Surplus reserves for||||
|making up losses||||
|4. Other||||
|(VI) Specific reserve||||
|1. Withdrawn for the period||||
|2. Used in the period||||
|(VII) Other||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
||505,425,00|250,531,48|170,337,10|682,885,33|1,609,178,|
|IV. Closing balance||||||
||0.00|2.00|6.09|4.93|923.02|

 Legal representative: Tong Laiming Person-in-charge of the accounting work: Ji Xiangdong Person-in-charge of accounting firm: Yang Yinghui
III. Company profiles
Foshan Huaxin Packing Co., Ltd. (hereinafter referred to as the Company) was promoted by Foshan Huaxin Development Co., Ltd., as a main sponsor, under approval ofPeople’s Government of Guangdong Province with YBH (1999) No. 297 document and Economic System Reform Committee of Guangdong Province with YTG (1999) No. 032 document, and jointly invested by seven shareholders such as Foshan Municipal Investment General Corporation, Foshan Xinhui Industrial Development Co., Ltd., China Packaging General Corporation, China Material Development& Investment General Corporation, Guangdong Technical Reforming& Investment Co., Ltd., China Chemistry& Light Industry General Corporation, and Foshan Light Industry Company by promotion with total share capital of RMB 290,000,000 at par value of RMB 1 per share. The Company is joint-stock company who was registered in Administration Bureau for Commerce& Industry of Guangdong Province on June 21, 1999. (Business License No. 40000000005147). In the year of 2000, the Company successfully placed domestically listed foreign shares (B shares) amounting to 149,500,000 by mean of private placing, which was listed in Shenzhen Stock Exchange for trade. After offering, theCompany’s total share capital was increased to RMB 439,500,000.00. In June 2007, the Company distributed dividends of 65,925,000 shares, thus, the total share capital was changed into RMB 505,425,000.00. The Company is mainly engaged in the paper making, paper package and printing industry.
As at 30 Jun. 2014, the Company accumulatively issued 505,425,000 shares in number and the registered capital stood at RMB 505,425,000. The Company mainly manufactures (operated by subsidiary companies under the Company) and sells packaging materials, and packaging products, materials for decoration and aluminum and plastic compound materials; sells and maintains package machinery; invests in industry in terms of package and printing. Main products include high-grade coated white paperboard, high-grade coated white board and color packages printing products. TheCompany’s registered address is No. 18; Jihua 5th Road, Foshan, Guangdong, and the office address of headquarter is 19/F, Jinghua Bldg., Jihua Rd., Foshan.
The parent company of the Company is Foshan Huaxin Development Co., Ltd., and the actual controller of the China Paper Corporation and the Ultimate controller of the Company is China Chengtong Holding Group Co., Ltd. (wholly owned first grade company of the State-owned Assets Supervision and Administration Commission)
IV. Main accounting policies, accounting estimates and corrections of prior accounting errors 1. Preparation basis of financial statement
With the going-concern assumption as the basis and based on transactions and other events that actually occurred, the Company prepared financial statements in accordance with the Basic Standard and 38 specific standards of Accounting Standards for Business Enterprises issued by Ministry of Finance of the PRC on 15 February 2006, Application Guidance of Accounting Standard for Business Enterprises, Interpretation of Accounting Standards for Business Enterprises and other regulations issued thereafter (hereinafter referred to as “the Accounting Standards for Business Enterprises”, “China Accounting Standards” or “CAS”), Rules for Preparation Convention of Disclosure of Public Offering Companies No.15– General Regulations for Financial Reporting (revised in 2010) by China Securities Regulatory Commission.
2. Statement for complying with the accounting standard for business enterprise
The financial statements for the reporting period prepared by the Company are in compliance with the
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. requirements of the accounting standard for business enterprise, and have reflected theCompany’s financial status, operating results and cash flows in an accurate and complete way.
3. Fiscal period
The fiscal year of the Company is a solar calendar year, which is from January 1 to December 31.
4. Standard currency of accounts
The Company adopts Renminbi as a standard currency of accounts.
5. Accounting process of business combinations under the same control and not under the same control (1) Business combination under the same control
The assets and liabilities that the combining party obtains in a business combination shall be measured on the basis of their carrying amount in the combined party on the combining date. Where the combined party adopts accounting polices different from the Company, the Company makes adjustments according to its own accounting policy on the combination date and recognizes the assets and liabilities according to the book values after the adjustments.
As for the balance between the carrying amount of the net assets obtained by the combining party and the carrying amount of the consideration paid by it (or the total par value of the shares issued), the additional paid-in capital shall be adjusted. If the additional paid-in capital is not sufficient to be offset, the retained earnings shall be adjusted.
The direct cost for the business combination of the combining party shall, including the expenses for audit, assessment and legal services, be recorded into the profits and losses at the current period.
The handling fees, commissions and other expenses for the issuance of equity securities for the business combination shall be credited against the surplus of equity securities; if the surplus is not sufficient, the retained earnings shall be offset.
(2) Business combination not under the same control
The Company shall, on the acquisition date, measure the assets given and liabilities incurred or assumed by an enterprise for a business combination in light of their fair values, and shall record the balances between them and their carrying amounts into the profits and losses at the current period.
The Company shall distribute the combination costs on the acquisition date and determine the fair values of theacquiree’s identifiable assets, liabilities and contingent liabilities obtained by the Company.
The Company shall recognize the positive balance between the combination costs and the fair value of the identifiable net assets it obtains from the acquiree as business reputation. The Company shall record, upon recheck, the negative balance between the combination costs and the fair value of the identifiable net assets it obtains from the acquiree into the profit and loss of the current period.
As for the assets other than intangible assets acquired from the acquiree in a business combination (not limited to the assets which have been recognized by the acquiree), if the economic benefits brought by them are likely to flow into the enterprise and their fair values can be measured reliably, they shall be separately recognized and measured in light of their fair values. As for any intangible asset acquired in a combination, if the fair value can be measured reliably, it shall be separately recognized as an intangible asset and shall measured in light of its fair value. As for the liabilities other than contingent liabilities acquired from the acquiree, if the performance of the relevant obligations is likely to result in any out-flow of economic benefits from the enterprise, and their fair values can be measured reliably, they shall be separately recognized and measured in light of their fair values. As for the contingent liabilities of the acquiree obtained in a combination, if their fair values can be measured reliably, they shall be separately recognized as liabilities and shall be measured in light of their fair values.
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. As for the deductible temporary differences the Company obtains from the acquiree in a business combination which do not meet the recognition standards for deferred income tax assets, they shall not be recognized. If new or further information shows that the relevant situation has existed on the acquiring date and the economic benefits brought by the deductible temporary differences the acquirer obtains from the acquiree on the acquiring date can be realized, they shall be recognized into deferred income tax assets and the relevant goodwill shall be reduced. Where the goodwill is not sufficient to be offset, the difference shall be recognized into the profits and losses in the current period. In other circumstances than the above, where the deductible temporary differences are recognized into deferred income tax assets on the acquiring date, they shall be recorded into the profits and losses in the current period.
In a business combination not under the same control, the intermediary fees (fees for audit, legal and evaluation& consulting services, etc.) and other relevant management expenses incurred on the acquirer for the business combination shall be recorded into current gains and losses when incurred. The trading expenses arising from theacquirer’s issuing equity securities or debt securities as the combination consideration shall be included in the initially recognized amount of the equity securities or debt securities.
6. Relevant specific accounting policy of disposing the equity step by step till lose the control right
(1) Principle of judgment of “package deal”
There was no such deal of the reporting period.
(2) Accounting treatment methods of “package deal”
There was no such deal of the reporting period.
(3) Accounting treatment methods of non “package deal”
There was no such deal of the reporting period.
7. Preparation methods for consolidated financial statements
(1) Preparation methods for consolidated financial statements
The accounting policies and accounting period adopted by the subsidiaries that are included into the scope of consolidated financial statement consistent with those the Company adopts. If the accounting policies and accounting period adopted by a subsidiary are different from those adopted by the Company, necessary adjustments shall be made to the financial statements under the accounting policies and accounting period adopted by the Company. As for a subsidiary obtained in a business combination not under the same control, its financial statements shall be adjusted based on the fair value of its identifiable net assets on the acquisition date. The consolidated financial statements shall, on the basis of the financial statements of the Company and its subsidiaries, be prepared by the Company after the long term equity investments in the subsidiaries are adjusted through the equity method.
Consolidated financial statement shall be prepared by the parent company after the effects of the internal transactions between the Company and its subsidiaries and between its subsidiaries themselves on the consolidated balance sheets, consolidated income statement, consolidated cash flow and consolidated statement of change inowners’ equity are offset.
Minorityshareholders’ portions of equities and income in subsidiaries shall be separately stated respectively underowners’ equity in the consolidated balance sheet and net profit in the consolidated income statement. For the deficit of current period exceeding the share in the beginning ofowner’s equity, the balance shall offset against the minorityshareholder’s equity.
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. (1) Increasing the subsidiaries
During the reporting period, for the added subsidiary companies for business combination under the same control, shall adjust the beginning balance of the consolidated balance sheet, and shall involve the incomes, expenses and profits of the subsidiary companies incurred from the beginning of the current period to the end of reporting year into consolidated income statement; and shall include the cash flow of the subsidiary companies from the beginning of the current period to the reporting period into the consolidated cash flow statement. Meanwhile, relevant items in the statements shall be compared and adjusted with the reporting subject after the consolidation being regarded to have always existed in previous periods.
During the reporting period, for the added subsidiary companies for business combination not under the same control, shall not adjust the beginning balance of the consolidated balance sheet; and shall involve the incomes, expenses and profits of the subsidiary companies incurred from the acquisition date to the end of reporting year into the consolidated income statement; and shall include the cash flow from the acquisition date to the end of reporting period into the consolidated cash flow. As for a business combination not under the same control concluded through more than one transaction, the Company shall re-measure the equity interests in the acquiree held by it before the acquisition date according to the equityinterests’ fair value on the acquisition date. And the difference between the fair value and the book value is recorded into current investment gains. Where the equity interests in the acquiree held by the Company before the acquisition date involves other comprehensive incomes, the relevant other comprehensive incomes are restated as investment gains for the period which the acquisition date belongs to.
(2) Disposal of subsidiaries
① General disposal method
During the reporting period, for the Company settling the subsidiary companies, the incomes, expenses and profits from the beginning to the settlement date shall be involved into the consolidated income statement; the consolidated cash flow statement shall include the cash flow from the beginning of the current period to the settlement date. Where the Company loses the control over a former subsidiary due to disposal of some equity investments or other reasons, the Company re-measures the remaining equity investments after the disposal according to the fair value on the date when the control ceases. The consideration obtained in the equity disposal, plus the fair value of the remaining equities, less theCompany’s share of net assets in the former subsidiary calculated from the acquisition date according to the former shareholding ratio, is recorded into the investment gains for the period when the control ceases. Other comprehensive incomes in relation to the equity investments in the former subsidiary are restated as investment gains for the period when the control ceases.
② Disposing the subsidiaries step by step
The company through multiple transactions step deals with disposal of the subsidiary's equity investment until the loss of control, terms of the transaction disposition of equity investment in a subsidiary, subject to the following conditions and the economic impact of one or more of cases, usually indicates that several transactions should be accounted for as a package deal:
i. these transactions are considered simultaneously, or in the case of mutual influence made;
ii. these transactions as a whole in order to achieve a complete business results;
iii. the occurrence of a transaction depends on occurs at least one other transaction;
iv. a transaction look alone is not economical, but when considered together with other transaction is economical. Until the disposal of the equity investment loss of control of a subsidiary of the transactions belonging to the package deal, the transaction will be used as a disposal of a subsidiary and the loss of control of the transaction. However, before losing control of the price of each disposal entitled to share in the net assets of the subsidiary's investment corresponding to the difference between the disposals, recognized in the consolidated financial
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. statements as other comprehensive income, loss of control over the transferred together with the loss of control or loss in the period.
Until the disposal of the equity investment loss of control of a subsidiary of the transactions not belong to the package deal, should have accounting disposal according to the “partly dispose the equity investment of the subsidiary not losing the control right” of Notes II (XI) 2. (4) before losing the control right; should have accounting disposal according to the “general disposal method” of Notes II (XI) 2. (2) of the disposing of subsidiary when losing the control right.
(3) Purchasing minority equities of the subsidiaries
If there is any difference between the newly obtained long-term equity investment due to theCompany’s acquisition of minority interests and theCompany’s share of identifiable net assets in the subsidiary calculated according to the newly increased shareholding ratio from the purchasing date (or combination date), the stock premium under capital reserve in the balance sheet shall be adjusted according to the said difference. If the stock premium under capital reserve is not sufficient to be offset, the retained profit is adjusted.
(4) Partly disposing the equity investment of the subsidiaries not losing the control right
Any difference between the disposal income due to theCompany’s disposal of some equity investments in a subsidiary without losing the control over the subsidiary and theCompany’s share of net assets in the subsidiary calculated according to the disposed long-term equity investments, the stock premium under capital reserve in the balance sheet shall be adjusted according to the said difference. If the stock premium under capital reserve is not sufficient to be offset, the retained profit is adjusted.
(2) As for the event about purchasing and then selling (or selling and then purchasing) equities of the same subsidiary, the Company shall disclose relevant accounting treatment methods.
There was no such deal of the reporting period.
8. Recognition standard for cash and cash equivalents
When preparing the cash flow statement, the term “cash” refers to cash on hand and deposits that are available for payment at any time. The term “cash equivalents” refers to short-term ( within 3 months from the purchase date) and highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
9. Business of foreign currencies and the transaction of foreign currency statements
(1) Business of foreign currencies
As for a foreign currency transaction, the amount in the foreign currency shall be translated into the amount in the Renminbi at the spot exchange rate of the transaction date.
The foreign currency monetary items shall be translated as the spot exchange rate on the balance sheet date, the balance occurred thereof shall be recorded into the profits and losses at the current period except that the balance of exchange arising from foreign currency borrowings for the purchase and construction or production of assets eligible for capitalization shall be measured in the light of capitalization principle. The foreign currency non-monetary items measured at the historical cost shall still be translated at the spot exchange rate on the transaction date, of which the amount of functional currency shall not be changed. The foreign currency non-monetary items measured at the fair value shall be translated at the spot exchange rate on the confirming date of fair value, of which the balance of exchange shall be included into the profit and loss of the current period or capital reserve.
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. (2) Translation for foreign currency financial statements
The assets and liabilities items in the balance sheets shall be translated as a spot exchange rate on the balance sheet date. Among theowner’s equity items, except the one as “retained profits”, others shall be translated at the spot exchange rate at the time when they are incurred. The income and expense items in the profit statements shall be translated at the spot exchange rate of the transaction date. The balance arisen from the translation of foreign currency financial statement in the compliance with the aforesaid methods shall be presented separately under theowner’s equity item of the balance sheet.
When disposing an overseas business, the Company shall shift the balance, which is presented under the items of theowner’s equities in the balance sheet and arises from the translation of foreign currency financial statements related to this oversea business, into the disposal profits and losses of the current period. If the overseas business is disposed of partially, the Company shall calculate the balance arising from the translation of foreign currency statements of the part of disposal based on the disposal rate and shall shift them into the profits and losses of the current period.
10. Financial instruments
Financial instruments include financial assets and liabilities and equity instruments.
(1) Categorization of financial instruments
The Management team shall divide the financial instruments pursuant to the purpose to acquire the said financial assets or undertake the financial liabilities: (1) the financial assets and liabilities which are measured at their fair values and of which the variation is included in the current profits and losses, including transactional financial assets and liabilities and the designated financial assets and liabilities which are measured at their fair values and of which the variation is included in the current profits and losses; (2) the investments which will be held to their maturity;(3) loans and the account receivables; (4) financial assets available for sale; and (5) other financial liabilities.
(1) The financial assets (financial liabilities) which are measured at their fair values and of which the variation is included in the current profits and losses
The initial amount of the financial assets and financial liabilities shall be recognized at fair value (excluding cash dividends that have been declared but not yet distributed or bond interests that have matured but not yet received) when they are acquired. The transaction expense thereof shall be directly recorded into the profits and losses of the current period.
The interests or cash dividends acquired, during the holding period, shall be recognized as investment income, and at the end of reporting period, the change in the fair value shall be recorded into the profits and losses of the current period.
When financial assets and financial liabilities are disposed, the balance between fair value and initial amount shall be recognized as investment income, at the same time, the profits and losses arising from the change in the fair value of financial assets and financial liabilities shall be adjusted.
(2) Held-to-maturity investments
When held-to-maturity investments are acquired, its initial amount shall be recognized the sum between the fair value (excluding bond interests that have matured but not yet received) and the transaction expense thereof. During the holding period, interest income is recognized as investment income based on amortized cost and actual interest rate (where there is very small gap between actual interest rate and nominal rate of which interests income shall be measured at the nominal rate). The actual interest rate is determined upon acquisition and remains unchanged during the expected holding period or a shorter period for applicable.
When held-to-maturity investments are disposed, the difference between the acquired price and investment book
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. value shall be recorded into the investment income.
(3) Accounts receivable
Thecreditor’s rights arising from selling goods or providing service by the Company and othercreditor’s rights to other enterprises held by the company that are not quoted in an active market, including accounts receivable, notes receivable, other receivables, long-term receivables, etc., the contract or agreement price should be taken as the initial recognition amount. If it has the nature of financing, it shall be recognized by present value.
Difference between the amount received and book value of the receivables shall be included into the profit or loss of the current period upon collection or disposal.
(4) Available-for-sale financial assets
When available-for-sale financial assets are acquired, its initial amount shall be recognized at the fair value (excluding cash dividends that have been declared but not yet distributed or bond interests that have matured but not yet received) plus transaction expense thereof.
The interests or cash dividends acquired, during the holding period, shall be recognized as investment income. At the end of reporting period, it shall be measured at the fair value and the change in fair value thereof shall be recorded into the capital reserves (Other Capital Reserves).
Difference between the amount received and the book value of the financial assets shall be recognized as investment gain or loss upon disposal. Meanwhile, the accumulated changes in fair value previously recognized in theowners’ equity are transferred into investment gain or loss.
(5) Other financial liabilities
Other financial liabilities shall be initially recognized at fair value plus transaction costs. The subsequent measurement shall be made by adopting amortized costs.
(3) Recognition and measurement of transfer of financial assets
Where an enterprise has transferred nearly all of the risks and rewards relating to the ownership of the financial asset to the transferee, it shall stop recognizing the financial asset. If it retains nearly all of the risks and rewards relating to the ownership of the financial asset, it shall not stop recognizing the financial asset.
Substance over form philosophy should be adopted to determine whether the transfer of a financial asset can satisfy the conditions as described in these Standards for de-recognition of a financial asset. An enterprise shall differentiate the transfer of a financial asset into the entire transfer and the partial transfer of financial assets. If the transfer of an entire financial asset satisfies the conditions for stop recognition, the difference between the amounts of the following 2 items shall recorded in the profits and losses of the current period:
(1) The carrying amount of the transferred financial asset;
(2) The aggregate consideration received from the transfer, and the accumulative amount of the changes of the fair value originally recorded in theowner’s equities (in the event that the financial asset involved in the transfer is a financial asset available for sale).
If the transfer of partial financial asset satisfies the conditions for stopping recognition, the carrying amount of the entire financial asset transferred shall be allocated at their respective relevant fair value, between the portion whose recognition has stopped and the portion whose recognition has not stopped, and the difference between the amounts of the following 2 items:
(1) The carrying amount of the portion whose recognition has stopped;
(2) The aggregate consideration of the portion whose recognition has stopped, and the portion of the accumulative amount of the changes in the fair value originally recorded in theowner’s equities which is corresponding to the portion whose recognition has stopped (in the event that the financial asset involved in the transfer is a financial asset available for sale).
The transfer of financial assets does not meet the de-recognition condition, the financial assets shall continue to be
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. recognized, and the consideration received will be recognized as financial liabilities.
(4) Termination of recognition of financial liabilities
Only when the prevailing obligations of a financial liability are relieved in all or in part may the recognition of the financial liability be terminated in all or partly. Where the Company (debtor) enters into an agreement with a creditor so as to substitute the existing financial liabilities by way of any new financial liability, and if the contractual stipulations regarding the new financial liability is substantially different from that regarding the existing financial liability, it shall terminate the recognition of the existing financial liability, and shall at the same time recognize the new financial liability.
Where the Company makes substantial revisions to some or all of the contractual stipulations of the existing financial liability, it shall terminated the recognition of the existing financial liability or part of it, and at the same time recognize the financial liability after revising the contractual stipulations as a new financial liability.
Where the recognition of a financial liability is totally or partially terminated, the Company concerned shall include into the profits and losses of the current period the gap between the carrying amount which has been terminated from recognition and the considerations it has paid (including the non-cash assets it has transferred out and the new financial liabilities it has assumed).
Where the Company buys back part of its financial liabilities, it shall distribute, on the report day, the carrying amount of the whole financial liabilities in light of the comparatively fair value of the part that continues to be recognized and the part whose recognition has already been terminated. The gap between the carrying amount which is distributed to the part whose recognition has terminated and the considerations it has paid (including the non-cash assets it has transferred out and the new financial liabilities it has assumed) shall be recorded into the profits and losses of the current period.
(5) Determination of the fair value of financial assets and financial liabilities
As for theCompany’s financial assets and liabilities measured at their fair values, where there is an active market, the closing quoted prices in the active market shall be used to determine the fair values thereof. Where there is no active market for a financial assets and financial liabilities, the Company concerned shall adopt value appraisal techniques (include the prices adopted by the parties, who are familiar with the condition, in the latest market transaction upon their own free will, the current fair value obtained by referring to other financial instruments of the same essential nature, the cash flow capitalization method and the option pricing model, etc.) to determine its fair value. As for the financial assets initially obtained or produced at source and the financial liabilities assumed, the fair value thereof shall be determined on the basis of the transaction price of the market.
(6) Testing method of impairment and withdrawal method of provision for impairment on financial assets (excluding accounts receivable)
Except for financial assets which are measured at their fair values and of which the variation is included in the current profits and losses, the Company checks the book values of all other financial assets on the balance sheet date. If there is objective evidence proving that a financial asset is impaired, an impairment provision is made. Various recognition standards of various kinds of available for sale financial assets impairment
(1) Provision for impairment of available-for-sale financial assets:
The Company made individual inspection of each available-for-sale financial assets on the balance sheet date, if the fair value of the equity instruments on the balance sheet date was lower more than50% (including50%)of its initial investment cost, or the duration period that the fair value lower than its initial investment cost was over 1 year (including 1 year), it should indicate the impairment; if the fair value of the equity instruments on the balance
sheet date was lower more than20% (including20%)of its initial investment cost but had not reach50%, the
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. Company would comprehensively consider other relevant elements such as the price volatility etc, to judge whether there was impairment of the equity instruments.
When an available-for-trade financial asset is impaired, the cumulative loss arising from declining in fair value that had been recognized in capital reserve shall be removed and recognized in profit or loss. The amount of the cumulative loss that is removed shall be difference between the acquisition cost with deduction of recoverable amount less amortized cost, current fair value and any impairment-related loss on that financial asset previously recognized in profit or loss.
The equity instrument where there is no quoted price in an active market, and whose fair value cannot be reliably measured, or impairment-related losses on a derivative asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the Company should recognize them as impairment-related losses and accrued into the current gains and losses according to the difference that the future cash flow of the financial assets lower than the book value. And the impairment-related losses of the assets should not recover during the following accounting period.
As for the sellable debt instruments whose impairment-related losses have been recognized, if, within the accounting period thereafter, the fair value has risen and are objectively related to the subsequent events that occur after the originally impairment-related losses were recognized, the originally recognized impairment-related losses shall be reversed and be recorded into the profits and losses of the current period; as for the impairment-related losses of the investment of the available-for-sale equity instruments, shall not be reversed through the equity when the price of the equity instruments raised again; the equity instrument where there is no quoted price in an active market, and whose fair value cannot be reliably measured, or impairment loss on a derivative asset that is linked to and must be settled by delivery of such an unquoted equity instrument shall not be reversed.
(2) Provision for impairment of held-to-maturity investments:
Measurement for impairment loss of held-to-maturity investments shall be disposed in accordance with the measurement method for impairment loss of accounts receivable.
(7) As for event about reclassifying the undue held-to-maturity investment into available-for-sale financial assets, the Company shall state the basis of changes in holding purpose or ability
There was no such deal of the reporting period.
11. Recognition criteria and withdrawal methods for bad debts provision of accounts receivable
(1) Bad debt provision for individually significant accounts receivable
|||
|-|-|
|Judgement basis or monetary standards of provision for bad debts of|An account receivable exceeds 10 million, or an other|
|the individually significant accounts receivable|account receivable exceeds five million|
||An impairment test shall be conducted on the account|
||receivable, and the difference of the expected future cash|
||flow’s present value less than its book value shall be|
|Method of individual provision for bad debts of the individually|withdrawn as the bad debt provision and recorded into|
|significant accounts receivable|current gains/losses. Where an impairment test is conducted|
||on an account receivable and no impairment occurs, the|
||account receivable shall be included in an account receivable|
||group with similar credit risk and tested again.|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. (2) Accounts receivable for which bad debt provisions are made on the group basis
||||
|-|-|-|
||Withdrawal method of bad||
|Name of group|debt provision on the group|Recognition basis of group|
||basis||
|Group 1—Entities consolidated is|||
|considered as an account|Other method|The accounts receivable consolidated have similar credit risk.|
|receivable group.|||
|Group 2—Several account|||
|||Except for the accounts receivable consolidated, accounts|
|receivable groups are divided|Aging analysis method||
|||receivable with the same age have similar credit risk.|
|according to account ages.|||

In the groups, adopting aging analysis method to withdraw bad debt provision:
√ Applicable□ Inapplicable
||||
|-|-|-|
||Withdrawal proportion for accounts||
|Age||Withdrawal proportion for other accounts receivable|
||receivable||
|Within 1 year (including 1 year)|5.00%|5.00%|
|1 to 2 years|10.00%|10.00%|
|2 to 3 years|20.00%|20.00%|
|Over 3 years|50.00%|50.00%|

 In the groups, those adopting balance percentage method to withdraw bad debt provision:
□ Applicable√ Inapplicable
In the groups, those adopting other methods to withdraw bad debt provision:
□ Applicable√ Inapplicable
(3) Account receivables with an insignificant single amount but for which a single bad debt provision is withdrawn
|||
|-|-|
||There is objective evidence proving that the account receivable may have been|
|Reason of individually withdrawing bad debt|impaired. For instance, the debtor is cancelled, bankrupt or dead and the account|
|provision:|receivable still cannot be recovered or the generated cash flow is seriously|
||inadequate after the bankrupt’s estates or heritages are used for the debt repayment.|
||Where there is objective evidence proving that an account receivable may have been|
||impaired, the account receivable shall be separated from the relevant group and an|
|Withdrawal method for bad debt provision:||
||independent impairment test shall be conducted on the account receivable so as to|
||recognize the impairment loss.|

12. Inventory
(1) Category
Inventory are classified as materials in transit, raw materials, revolving materials, merchandise inventory, goods in
process, goods sent out, goods in outside processing and etc.
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. (2) Pricing method for outgoing inventories
Pricing method: Weighted average method
The inventory shall be measured in the light of the weighted average method when outgoing inventory.
(3) Recognition of net realizable value and withdrawal of provision for falling price of inventory
At the end of every year, the Company shall make an overall checking to inventory, thereafter, the provision for falling price of inventory shall be measured according to its cost or its net realizable value, whichever is lower. Finished goods, merchandise inventories, and available for sale materials which are applied directly for sales of stock inventory, under normal producing process, to the amount after deducting the estimated sale expense and relevant taxes from the estimated sell price of the inventory, the net realizable value has been recognized. Material inventories which need to be processed, under normal producing process, to the amount after deducting the estimated cost of completion, estimated sale expense and relevant taxes from the estimated sale price of produced finished goods, the net realizable value has been recognized. The net realizable value of inventories held for the execution of a sales contract or labor contract shall be calculated on the basis of the contract price. If an enterprise holds more inventories than the quantities subscribed in the sales contract, the net realizable value of the excessive inventories shall be calculated on the basis of the general sales price.
Ordinarily the Company shall make provision for falling price of inventories on the ground of each item of inventories. For inventories with large quantity and relatively low unit prices, the provision for falling price of inventories shall be made on the ground of the categories of inventories. For the inventories related to the series of products manufactured and sold in the same area, and of which the final use or purpose is identical or similar thereto, and if it is difficult to measure them by separating them from other items, the provision for falling price of inventories shall be made on a combination basis.
If the factors causing any write-down of the inventories have disappeared, the amount of write-down shall be resumed and be reversed from the provision for the loss on decline in value of inventories that has been made. The reversed amount shall be included in the current profits and losses.
(4) Inventory system for inventories:
Inventory system: Perpetual inventory system
The inventory system for inventories is perpetual inventory system.
(5) Amortization method of the low-value consumption goods and packing articles
Low-value consumption goods
Amortization method: one-off amortization method
Packaging articles
Amortization method: one-off amortization method
13. Long-term equity investment
(1) Recognition of initial investment cost
(1) Long-term equity investment under business combination: For the merger of enterprises under the same control, if the consideration of the Company is that it makes payment in cash, transfers non-cash assets, bear its debts or issuance of equity securities, it shall, on the date of merger, regard the share of the book value of the
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. owner's equity of the merged enterprise as the initial cost of the long-term equity investment. The difference between the initial cost of the long-term equity investment and the consideration paid by the Company shall offset against the capital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted. The direct cost for the business combination of the combining party shall, including the expenses for audit, assessment and legal services, be recorded into the profits and losses at the current period. For the merger of enterprises not under the same control, the combination cost recognized on the acquisition date is the initial investment cost of the long-term equity investment, and the combination costs shall be the fair values, on the acquisition date, of the assets paid, the liabilities incurred or assumed and the equity securities issued by the acquirer in exchange for the control on the acquiree and all relevant direct costs incurred to the Company for the business combination, including intermediary fees paid for auditing, legal, evaluating and consulting services for the business combination, as well as other relevant administrative expenses (the expense on trading equity or debt securities issued as the combination consideration and recorded into current gains/losses when incurred, the initially recognized amount recorded into equity or debt securities). For a business combination realized by two or more transactions of exchange, the initial investment cost shall be the summation of the book value of the equity investment in the acquiree held by the acquirer before the acquisition date and the cost of the investment newly increased on the acquisition date. The Company considers the contingent consideration agreed in the combination agreement as part of the combination consideration and records it into the combination cost according to its fair value on the acquisition date. (2) Long-term equity investment gained by other methods: The initial cost of a long-term equity investment obtained by making payment in cash shall be the purchase cost which is actually paid. The initial cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the fair value of the equity securities issued. The initial cost of a long-term equity investment of an investor shall be the value (excluding cash dividends that have been declared but not yet distributed) stipulated in the investment contract or agreement except the unfair value stipulated in the contract or agreement. As for a non-monetary assets transaction, under the premise that the transaction is commercial in nature and the fair value of the assets received or surrendered can be measured reliably, the initial cost of the fair value of the long-term equity investment received shall be recognized based on the fair value of the assets surrendered, unless there is any exact evidence showing that the fair value of the assets received is more reliable. Where any non-monetary assets transaction does not meet the conditions as prescribed in the above premises at the same time, the book value and relevant payable taxes of the assets surrendered shall be the initial cost of the long-term equity investment received. The initial cost of a long-term equity investment obtained by debts restructuring shall be recognized based on the fair value.
(2) Subsequent measurement and gain/loss recognition
(1) Subsequent measurement: The long-term equity investment that the Company carries out to its subsidiary companies shall be measured based on cost method, and adjust based on the equity method when preparing the consolidated financial statements. The long-term equity investment that does not do joint control or does not have significant influences on the invested entity, and entity, and has no offer in the active market and its fair value cannot be reliably measured shall be measured at the cost method. The long-term equity investment that does joint control or significant influences over the Company shall be measured by employing the equity method. If the initial cost of a long-term equity investment is more than the investing enterprise' attributable share of the fair value of the invested entity's identifiable net assets for the investment, the initial cost of the long-term equity investment may not be adjusted. If the initial cost of a long-term equity investment is less than the investing enterprise' attributable share of the fair value of the invested entity's identifiable net assets for the investment, the
difference shall be included in the current profits and losses. Disposal for any change is made to the owner's
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. equity other than the net profits and losses of the invested entity: in case the shareholding proportion remained unchanged, the Company shall, in accordance with the shareholding proportion, calculate the proportion it shall enjoy or undertake, and adjust book value of long-term equity investment, and increase or decrease capital reserve (other capital reserve) simultaneously. (2) Recognition of profits and losses: Under the cost method, the Company shall recognize investment income in the light of the attributable share of the profits or cash dividends declared to distribute by the invested entity except for money paid actually or cash dividends or profit that have been declared but not yet distributed included in consideration when obtaining investment. Under the equity method, the recognition of profits and losses shall be carried out based on the net book profit of the invested entity and taking the following into account: If the accounting policies and accounting periods adopted by the invested entity are different from those adopted by the Company, an adjustment shall be made to the financial statements of the invested entity in accordance with the accounting policies and accounting periods of the Company; the influence on the investedparty’s net profit from the depreciation or amortization amount withdrawn based on the fair values of the fixed and intangible assets of the invested party when the investment is obtained, from the relevant asset impairment provision, etc.; the net profit or net loss of the invested party that is attributable to the Company recognized after the unrealized intra-Group transactions between the Company and its associates and joint ventures are offset and other matters are properly adjusted. The Company shall handle to the net losses of the invested enterprise recognized by it: firstly, offset book value of long-term equity investment; secondly, if the book value of long-term equity investment is insufficient to dilute, investment loss shall be recognized based on the book value of other long-term rights and interests which substantially form the net investment made to the invested entity, to offset book value of long-term receivables items; and (3) through the above treatment, where the Company still has the obligation to undertake extra losses as per investment contracts or agreements, the obligation that is expected to undertake shall be recognized the project liabilities, and recorded into losses on investment of the current period. If the invested entity realizes any profits later, the Company shall, after the amount of its attributable share of the un-recognized losses, treat based on reverse order, and write down the book balance of projected liabilities recognized, resume the book value of other long-term rights and interests which substantially form the net investment made to the invested entity and long-term equity investment, and recognize investment income simultaneously. When holding the investment, the Company shall measure on the basis of the net profit and other equity changes in the consolidated financial statements if invested parties can provide consolidated financial statements.
(3) Recognition basis of joint control and significant influences of invested enterprises
The term "joint control" means control over an economic activity as specified by contract, which exists only when the investing parties that need to share the power of control in important financial and operating decision-making agree unanimously. When the Company and other parties have joint control over an invested party, the invested party is considered a joint venture. The term "significant influence" means having the power to participate in the formulation of financial and operating policies of an enterprise, but not the power to control or jointly control the formulation of these policies together with other parties. Where the Company has significant influence over an invested party, the invested party is considered an associate.
(4) Testing method of impairment and withdrawal method of provision for impairment
Under the significant influence, for the long-term equity investment that there is no offer in the active market and of which the fair value cannot be reliably measured, of which impairment loss shall be confirmed at the balance between the book value and the present value recognized as the discount rate of market income rate to the future
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. cash flow of the assets. Other long-term equity investment with the sign of impairment except for the goodwill formed by merger of enterprises, where the recoverable amount of single item long-term equity investment is lower than its carrying value, the difference shall be recognized as impairment loss. Once any loss of impairment of the long-term equity investment is recognized, it shall not be switched back in the future accounting periods. 14. Investment real estates
The term "investment real estates" refers to the real estates held for generating rent and/or capital appreciation, including (1) the right to use any land which has already been rented; (2) The right to use any land which is held and prepared for transfer after appreciation; and (3) Rented buildings (including buildings which have already been rented after the self-construction or self-development is completed and buildings that are being built or developed and will be used for renting).
The Company shall make a measurement to the investment real estate through the cost pattern. As for investment real estates measured by employing the cost pattern, i.e. building used for rental, its depreciation policy consistent with that for fixed assets; while for land use right used for rental, its amortization policy consistent with that for intangible assets.
Where there is sign of impairment, the Company shall estimate the recoverable amount of the investment real estates. Where the recoverable amount of single item investment real estates is lower than its carrying value, of which the balance shall be recognized as impairment loss.
Once any loss of impairment of the investment real estates is recognized, it shall not be switched back in the future accounting periods.
15. Fixed assets
(1) Recognized standard of fixed assets
The term "fixed assets" refers to the tangible assets that simultaneously possess the features as follows: they are held for the sake of producing commodities, rendering labor service, renting or business management; and their useful life is in excess of one fiscal year. No fixed asset may be recognized unless it simultaneously meets the conditions as follows: (1) The economic benefits pertinent to the fixed asset are likely to flow into the enterprise; and (2) The cost of the fixed asset can be measured reliably.
(2) Recognition basis and pricing method of fixed assets by finance lease
Where one of the following provisions is regulated in the rental agreement signed between the Company and the leaser, is shall be recognized as an asset acquired under finance leases: (1) The ownership of the leased asset is transferred to the Company after the term of lease expires; (2) The Company has the option to buy the asset at a price which is far lower than the fair value of the asset at the date when the option becomes exercisable. (3) The lease term covers the major part of the use life of the leased asset; and (3) In the case of the lessee, the present value of the minimum lease payments on the lease beginning date amounts to substantially all of the fair value of the leased asset. On the lease beginning date, the Company shall record the lower one of the fair value of the leased asset and the present value of the minimum lease payments as the entering value in an account, recognize the amount of the minimum lease payments as the entering value in an account of long-term account payable, and treat the balance between the recorded amount of the leased asset and the long-term account payable as unrecognized financing charges.
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. (3) Depreciation methods of fixed assets
The Company shall withdraw the depreciation of fixed assets by adopting the straight-line method, and recognized depreciation rate in the light of the category of fixed assets, expected useful life, and expected net salvage value. Where parts of a fixed asset have different useful lives or generate economic benefits for the Company in different ways, different depreciation rates and methods shall be adopted to make separate depreciations.
If it is reasonable to be certain that the Company will obtain the ownership of the leased asset when the lease term expires, the leased asset shall be fully depreciated over its useful life. If it is not reasonable to be certain that the Company will obtain the ownership of the leased asset at the expiry of the lease term, the leased asset shall be fully depreciated over the shorter one of the lease term or its useful life.
|||||
|-|-|-|-|
|Category|Depreciation life (Y)|Rate of residual value|Annual deprecation rate|
|Housing and building|30-40|5.00%|2.375-3.17|
|Machinery equipments|10-25|5.00%|3.80-9.50|
|Electronics|5-10|5.00%|9.50-19.00|
|Transportation vehicle|5|5.00%|19.00|

(4) Testing method of impairment and withdrawal method of provision for impairment on fixed assets The Company shall, at the end of every reporting period, make a judgment on whether there is any sign of possible fixed assets impairment.
Where there is sign of impairment, the Company shall estimate the recoverable amount of the fixed assets. The recoverable amount shall be determined in light of the higher one of the net amount of the fair value of the fixed minus the disposal expenses and the current value of the expected future cash flow of the fixed assets.
Where the recoverable amount of the fixed assets is lower than its carrying value, its carrying value shall be recorded down to the recoverable amount, and the reduced amount shall be recognized as impairment loss on fixed assets and recorded as the profit or loss for the current period. Simultaneously, a provision for the impairment of the fixed assets shall be made.
After the loss of fixed asset impairment has been recognized, the depreciation of the impaired fixed asset shall be adjusted accordingly in the future periods so as to amortize the post-adjustment carrying value of the fixed asset systematically (deducting the expected net residual value) within the residual service life of the fixed asset. Once any loss of impairment of the fixed assets is recognized, it shall not be switched back in the future accounting periods.
Where there is any evidence indicating a possible impairment of fixed assets, the Company shall, on the basis of single item assets, estimate the recoverable amount. Where it is difficult to do so, it shall determine the recoverable amount of the group assets on the basis of the asset group to which the single fixed asset belongs. (5) Other explanations
16. Construction in progress
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. (1) Category
Construction in progress shall be measured by the established projects.
(2) Standard and time point of construction in progress transferring into fixed assets
All expenditure occurred before the assets are brought to the expected conditions for use shall be recognized as the entering value of fixed assets. The construction in progress of fixed assets has been reached to the expected conditions for use but has not yet has handle completion and settlement procedures, the construction in progress shall be transferred into the fixed assets at the appraisal value in accordance with construction budget, cost or actual cost since the date that the construction in progress reaches to the expected conditions for use, and the depreciation of the fixed assets shall withdrawn in the light of the depreciation policy of fixed assets. After completion and settlement procedures, the Company shall adjust the original provisional estimate price at the actual cost, but not adjust original depreciation withdrawn.
17. Borrowing costs
(1) Recognition principle of capitalization of borrowing costs
Borrowing costs including amortization of borrowing interest, depletion or premium, supporting expense or exchange difference from foreign currency borrowing.
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction or production of assets eligible for capitalization, it shall be capitalized and recorded into the costs of relevant assets. Other borrowing costs shall be recognized as expenses on the basis of the actual amount incurred, and shall be recorded into the current profits and losses.
The term “assets eligible for capitalization” shall refer to the fixed assets, investment real estate, inventories and other assets, of which the acquisition and construction or production may take quite a long time to get ready for its intended use or for sale.
The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements: (1) The asset disbursements have already incurred, which shall include the cash, transferred non-cash assets or interest bearing debts paid for the acquisition and construction or production activities for preparing assets eligible for capitalization;
(2) The borrowing costs has already incurred; and
(3) The acquisition and construction or production activities which are necessary to prepare the asset for its intended use or sale have already started.
(2) Capitalization period
The capitalization period shall refer to the period from the commencement to the cessation of capitalization of the borrowing costs, excluding the period of suspension of capitalization of the borrowing costs.
When the qualified asset under acquisition and construction or production is ready for the intended use or sale, the capitalization of the borrowing costs shall be ceased.
When the part of projects in the qualified asset under acquisition and construction or production are completed separately and is ready for use alone, the capitalization of the borrowing costs of such part of assets shall be ceased.
Where each part of an asset under acquisition and construction or production is completed separately and is ready
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. for use or sale during the continuing construction of other parts, but it can not be used or sold until the asset is entirely completed, the capitalization of the borrowing costs shall be ceased when the asset is completed entirely. (3) The period of suspension of capitalization of the borrowing costs
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. If the interruption is a necessary step for making the qualified asset under acquisition and construction or production ready for the intended use or sale, the capitalization of the borrowing costs shall continue. The borrowing costs incurred during such period shall be recognized as expenses, and shall be recorded into the profits and losses of the current period, till the acquisition and construction or production of the asset restarts.
(4) Calculation method of capitalized amount of borrowing costs
As for specifically borrowed loans for the acquisition and construction or production of assets eligible for capitalization, the to-be-capitalized amount of interests shall be determined in light of the actual cost incurred of the specially borrowed loan at the present period minus the income of interests earned on the unused borrowing loans as a deposit in the bank or as a temporary investment.
Where a general borrowing is used for the acquisition and construction or production of assets eligible for capitalization, the enterprise shall calculate and determine the to-be-capitalized amount of interests on the general borrowing by multiplying the weighted average asset disbursement of the part of the accumulative asset disbursements minus the general borrowing by the capitalization rate of the general borrowing used. The capitalization rate shall be calculated and determined in light of the weighted average interest rate of the general borrowing.
18. Biological assets
19. Oil and gas assets
20. Intangible assets
(1) Pricing method of intangible assets
(1) The intangible assets shall be initially measured according to its cost
The cost of outsourcing intangible assets shall include the purchase price, relevant taxes and other necessary expenditures directly attributable to intangible assets for the expected purpose. Where the payment of purchase price for intangible assets is delayed beyond the normal credit conditions, which is of financing intention, the cost of intangible assets shall be determined on the basis of the current value of the purchase price.
For intangible assets obtained through debt restructuring, which are pay a debt by the debtor, its entering value shall be recognized based on the fair value of such intangible assets. The balance between book value for debt restructuring and the fair value of the intangible assets shall be recorded into the profits and losses of the current period.
As for a non-monetary assets transaction, under the premise that the transaction is commercial in nature and the fair value of the assets received or surrendered can be measured reliably, the initial cost of the fair value of the intangible assets received shall be recognized based on the fair value of the assets surrendered, unless there is any
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. exact evidence showing that the fair value of the assets received is more reliable. Where any non-monetary assets transaction does not meet the conditions as prescribed in the above premises at the same time, the book value and relevant payable taxes of the assets surrendered shall be the initial cost of the intangible assets received.
As for intangible assets through business combination under the same control, its entering value shall be recognized based on the book value of combined party. As for intangible assets through business combination not under the same control, its entering value shall be recognized at its fair value.
The cost of self-developed intangible assets shall include: materials used, service cost, registration fee when developing such intangible assets, and amortization expenses of other patent right used in the course of development and interest expense eligible for capitalization, as well as other direct cost incurred before the expected purposes of use of such intangible assets are realized.
(2) Subsequent measurement
The Company shall analyze and judge the service life of intangible assets, when it obtains intangible assets. With regard to intangible assets with limited service life, shall be amortized by the straight-line method within the period when the intangible asset can bring economic benefits to the Company; If it is unable to forecast the period when the intangible asset can bring economic benefits to the Company, it shall be regarded as an intangible asset with uncertain service life and not be amortized.
(2) Estimated useful life of intangible assets with limited useful life
The Company shall, at the end of every year, check the useful life and amortization method of the said intangible assets with limited useful life.
After check, there was no difference between the useful life& amortization method of the said intangible assets at the period-end and that of previous estimation.
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|-|-|-|
|Items|Estimated useful life|Basis|
|Land use right|50 years|Property ownership certificate or land use certificate|
|Software (including|||
|production software, office|2－10 years|Estimated useful life|
|software)|||
|Non-patent technology|10 years|Estimated useful life|

(3) Judgment of intangible assets with uncertain service life
In accordance with composite factors such as contractual right or other statutory rights of intangible assets, situation of same industry, historical experiences and proof of professional, if it is unable to forecast the period when the intangible asset can bring economic benefits to the enterprise, it shall be regarded as an intangible asset with uncertain service life.
The Company shall, at the end of every year, check the useful life of the said intangible assets with uncertain service life.
After check, useful life of the said intangible assets remained in uncertainty.
(4) Withdrawal of impairment reserve of intangible assets
As for intangible assets with certain service life, where there is sign of impairment, the Company shall make an
impairment test at the end of year.
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. As for intangible assets with uncertain service life, the Company shall make an impairment test at the end of every year.
The Company shall make impairment test to the intangible assets and estimate its recoverable amount. Where there is any evidence indicating a possible impairment of intangible assets, the Company shall, on the basis of single item intangible assets, estimate the recoverable amount. Where it is difficult to do so, it shall determine the recoverable amount of the asset group on the basis of the asset group to which the intangible assets belongs. The recoverable amount shall be determined in light of the higher one of the net amount of the fair value of the intangible assets minus the disposal expenses and the current value of the expected future cash flow of the intangible assets.
Where the recoverable amount of the intangible assets is lower than its carrying value, its carrying value shall be recorded down to the recoverable amount, and the reduced amount shall be recognized as impairment loss on intangible assets and recorded as the profit or loss for the current period. Simultaneously, a provision for the impairment of the intangible assets shall be made.
After the loss of intangible asset impairment has been recognized, the depreciation of the impaired intangible asset shall be adjusted accordingly in the future periods so as to amortize the post-adjustment carrying value of the intangible asset systematically (deducting the expected net residual value) within the residual service life of the intangible asset.
Once any loss of impairment of the intangible assets is recognized, it shall not be switched back in the future accounting periods.
(5) Standard for classifying research phase and development phase of theCompany’sR&D projects Expense for theCompany’sR&D projects divided into research expenditure and development expenditure. The term “research” refers to the creative and planned investigation to acquire and understand new scientific or technological knowledge.
The term "development" refers to the application of research achievements and other knowledge to a certain plan or design, prior to the commercial production or use, so as to produce any new material, device or product, or substantially improved material, device and product.
(6) Standard for capitalization of development expenditures
The development expenditures for its internal research and development projects of the Company may be capitalized when they satisfy the following conditions simultaneously:
(1) It is feasible technically to finish intangible assets for use or sale;
(2) It is intended to finish and use or sell the intangible assets;
(3) The usefulness of methods for intangible assets to generate economic benefits shall be proved, including being able to prove that there is a potential market for the products manufactured by applying the intangible assets or there is a potential market for the intangible assets itself or the intangible assets will be used internally;
(4) It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with the support of sufficient technologies, financial resources and other resources; and
(5) The development expenditures of the intangible assets can be reliably measured.
If development expendituredoesn’t satisfied the above listed conditions, then written into current gains and losses. While research expenditure written into current gains and losses when occurred.
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. 21. Long-term deferred expenses
Long-term deferred expenses refer to general expenses with the apportioned period over one year that have occurred but attributable to the current and future periods.
22. Assets transfer with a repurchase agreement
A repurchase agreement for selling product or transferring assets shall be signed between the Company and the purchaser when the Company sells its products and transfers other assets, thereafter, the Company shall judge that sale of product meets the recognition conditions of revenue or not in accordance with the clauses of the agreement. If after-sales repurchase belongs to financing transaction, the Company fails to recognize sales revenue when delivering products and assets. The positive balance between the repurchase price and sales price shall be withdrawn interests on schedule during the repurchase period, and included into financial expense.
23. Estimated liabilities
Such matters as lawsuits, guarantee for a debt, loss contract, restructuring involved by the Company, which are likely to need to deliver assets or provide labor service in the future, and their amount can be measured in a reliable way, shall be recognized as estimated liabilities.
(1) Recognition standard of estimated liabilities
The obligation pertinent to Contingencies shall be recognized as estimated liabilities when the following conditions are satisfied simultaneously:
(1) that obligation is a current obligation of the company;
(2) It is likely to cause any economic benefit to flow out of the Company as a result of performance of the obligation; and
(3) The amount of the obligation can be measured in a reliable way.
(2) Measurement method of estimated liabilities
The estimated debts shall be initially measured in accordance with the best estimate of the necessary expenses for the performance of the current obligation.
To determine the best estimate, an enterprise shall take into full consideration of the risks, uncertainty, time value of money, and other factors pertinent to the Contingencies. If the time value of money is of great significance, the best estimate shall be determined after discounting the relevant future outflow of cash.
The best estimate shall be conducted in the light of the following situations:
If there is a sequent range for the necessary expenses and if all the outcomes within this range are equally likely to occur, the best estimate shall be determined in accordance with the middle estimate (average number of bound) within the range.
If there is not a sequent range for the necessary expenses, or although there is a sequent range for the necessary expenses but all possible outcomes are not the same within the scope, i.e. If the Contingencies concern a single item, best estimate shall be determined in the light of the most likely outcome; If the Contingencies concern two or more items, the best estimate should be calculated and determined in accordance with all possible outcomes and the relevant probabilities.
When all or some of the expenses necessary for the liquidation of an estimated debts of an enterprise is expected to be compensated by a third party, the compensation should be separately recognized as an asset only when it is virtually certain that the reimbursement will be obtained. The amount recognized for the reimbursement should not exceed the book value of the estimated debts.
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. 24. Share-based payment and equity instruments
(1) Category of share-based payment
(2) Recognition method of the fair value of equity instruments
(3) Basic of recognizing the best estimates of the vesting right of the equity instruments
(4) Related accounting disposal of the implementation, revision and termination of the share-based payment plan
25. Repurchasing the shares of the Company
26. Revenue
(1) Criteria for recognition time of revenue from sale of goods
(1) General principles of the reorganization and measurement of the revenue from sale of goods: The significant risks and rewards of ownership of the goods have been transferred to the buyer by the enterprise; The enterprise retains neither continuous management right that usually keeps relation with the ownership nor effective control over the sold goods; The relevant amount of revenue can be measured in a reliable way; The relevant economic benefits may flow into the enterprise; and the relevant costs incurred or to be incurred can be measured in a reliable way. (2) Recognition criteria of sales revenues and confirm time: confirmation methods of domestic sales revenue shall satisfy following conditions: products should be delivered according tocustomer’s requirements; amount of sales revenues is determined, received or respected to receive; sales slip should be invoiced; costs of sold products should be calculated; confirmation methods of export sales revenue shall satisfy following conditions: products should be produced according to export sales agreement signed with customers, received export declaration after qualified inspection and obtained bill of lading (waybill) after delivery by transport company; amount of sales revenues is determined, received or respected to receive; sales slip should be invoiced; costs of sold products should be calculated.
(2) Recognition basis of revenue from transferring use rights of assets
The relevant economic benefits are likely to flow into the enterprise; and the amount of revenues can be measured in a reliable way. The revenue from abalienating the right to use assets shall be recognized in the light of the following methods:
(1) The amount of interest revenue should be measured and confirmed in accordance with the length of time for which the enterprise's cash is used by others and the actual interest rate; or
(2) The amount of royalty revenue should be measured and confirmed in accordance with the period and method of charging as stipulated in the relevant contract or agreement.
(3) Recognition basis of revenue from providing labor service
(4) Recognition basis and method for the schedule of contracted project when recognizing the revenue from providing labour services and construction contract by percentage-of-completion method
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. If the Company can, on the date of the balance sheet, reliably estimate the outcome of a transaction concerning the labor services it provides, it shall recognize the revenue from providing services employing the percentage-of-completion method. Schedule of completion under the transaction concerning the providing of labor services shall be recognized in the light of the measurement of the work completed.
The Company shall ascertain the total revenue from the providing of labor services in accordance with the received or to-be-received price of the party that receives the labor services as stipulated in the contract or agreement, unless the received or to-be-received price as stipulated in the contract or agreement is unfair. The Company shall, on the date of the balance sheet, ascertain the current revenue from providing labor services in accordance with the amount of multiplying the total amount of revenues from providing labor services by the schedule of completion then deducting the accumulative revenues from the providing of labor services that have been recognized in the previous accounting periods. At the same time, the enterprise shall carry forward the current cost of labor services in accordance with the sum of multiplying the total amount of revenues arising from the providing of labor services by the schedule of completion and then deducting the accumulative revenues from the providing of labor services.
If the Company can not, on the date of the balance sheet, measure the result of a transaction concerning the providing of labor services in a reliable way, it shall be conducted in accordance with the following circumstances, respectively:
(1) If the cost of labor services incurred is expected to be compensated, the revenue from the providing of labor services shall be recognized in accordance with the amount of the cost of labor services incurred, and the cost of labor services shall be carried forward at the same amount; or
(2) If the cost of labor services incurred is not expected to compensate, the cost incurred should be included in the current profits and losses, and no revenue from the providing of labor services may be recognized.
27. Government grants
(1) Types
A government subsidy means the monetary or non-monetary assets obtained free by the Group from the government, not including the invested capital as the owner.
Government subsidies consist of the government subsidies pertinent to assets and government subsidies pertinent to income. The Company would use the revenues to purchase or form long-term assets for governmental subsidies; other governmental subsidies would be defined as interest-related governmental subsidies. If the government documents do not clarify subsidy object, it should divide conditional grants into interest-related governmental subsidies and asset-related governmental subsidies by following methods: (1) asset-related amount paid and calculated amount paid should be divided according to relative proportions by the budget of specific projects determined by government documents; the proportions should be reviewed in balance sheets and verified if necessary; (2) the application in government documents is only for general statement. Any subsidies without specific projects should be regarded as interest-related governmental subsidies.
Monetary assets governmental subsidies should be calculated according to received or receivable amount. Non-monetary assets governmental subsidies should be calculated according to fair value measurement. If fair value is not received, it should be calculated by nominal amount. Governmental subsidies calculated by nominal amount should be included in current profits and losses directly. When the Company receives governmental subsidies, it should be calculated and measured according to the amount of paid-up. For the financial supporting funds are expected to be received according to financial supporting policies with concrete evidence, it should be
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. calculated according to paid-up amount. Governmental subsidies calculated by paid-up amount shall satisfy following requirements: (1) Subsidy receivable should be confirmed by government departments or calculated according to management methods of financial funds and important uncertainty exists when calculating the amount. (2) The criteria should be published by local financial department according to Regulations on Open Government Information for open financial supporting projects and financial fund management methods. The management methods should be inclusive (all qualified enterprises would apply), but for specific enterprises. (3) Appropriation time has been determined in related conditional grants documents and appropriation is guaranteed to ensure all grants been received within time limit. (4) Details of subsidies shall satisfy other requirements (if any).
(2) Accounting policy
Asset-related governmental subsidies determined as deferred income should be calculated into current profits and losses within the asset service life. Those subsidies used for compensating the related future expenses or losses of the Company shall be recognized as deferred income and shall included in the non-operating income during the period when the relevant expenses are recognized; those subsidies used for compensating the related expenses or losses incurred to the Company shall be directly recognized as the current profits and losses into non-operating income.
Any confirmed governmental subsidies should be returned or with deferred income balance, excess amount of related deferred income balance should be calculated into current profits and losses; non-related deferred profits should be calculated into current profits and losses directly.
28. Deferred income tax assets and liabilities
(1) Recognition basis of deferred income tax assets
The Company will recognize the deferred income tax liability arising from a deductible temporary difference to the extent of the amount of the taxable income which it is most likely to obtain in future term and which can be deducted from the deductible temporary difference.
(2) Recognition basis of deferred income tax liabilities
As for deductible temporary difference of tax payable, is shall written in deferred income tax liability but for special particulars.
29. Operating lease and financial lease
(1) Accounting treatments of operating lease
(1) Rent charge paid for leasing assets shall be apportioned at the straight-line method and recorded into the current expense within the overall rent period including rent-free period. The initial direct expense paid by the Company related to lease transaction shall be included into the current expense.
Where the lessor undertakes the expenses related to the lease that should be undertaken by the Company, the Company shall deduct such expense from total rental, and such deducted rental fee shall be apportioned within the rent period and included into the current expense.
(2) Rent charge received for renting out assets shall be apportioned at the straight-line method and recognized as rental income within the overall rent period including rent-free period. The initial direct expense paid by the Company related to lease transaction shall be included into the current expense. In the event of the larger amount, it shall be capitalized and recoded into the current income by installment within the overall lease period.
Where the Company undertakes the expenses related to the lease that should be undertaken by the lessor, the
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. Company shall deduct such expense from total rental income, and such deducted rental fee shall be apportioned within the rent period.
(2) Accounting treatments of financial lease
Assets acquired under finance leases: On the lease beginning date, the Company shall record the lower one of the fair value of the leased asset and the present value of the minimum lease payments on the lease beginning date as the entering value in an account, recognize the amount of the minimum lease payments as the entering value in an account of long-term account payable, and treat the balance between the recorded amount of the leased asset and the long-term account payable as unrecognized financing charges.
(3) Accounting treatment of the sold but leased-back assets
30. Assets held for sale
(1) Recognition standard of assets held for sale
(2) Accounting disposal method of assets held for sale
31. Asset securitization business
32. Hedge accounting
33. Changes in main accounting policies and estimates
Were the main accounting policies or estimates changed during the reporting period?
□ Yes√ No
There existed not change in main accounting policies and estimates in the reporting period.
(1) Change of accounting policies
Were the main accounting policies changed during the reporting period?
□ Yes√ No
There existed not change in main accounting policies in the reporting period.
(2) Change of accounting estimates
Were the main accounting estimates changed during the reporting period?
□ Yes√ No
There existed not change in main accounting estimates in the reporting period.
34. Correction of previous accounting errors
Was any accounting error made in previous periods discovered in the reporting period?
□ Yes√ No
There was no any accounting error made in previous periods discovered in the reporting period.
(1) Retrospective restatement method
Was any previous accounting error adopting retrospective restatement method discovered in the report period?
□ Yes√ No
During the report period, there is no previous accounting errors need to be corrected by the retrospective restatement method.
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. (2) Prospective application method
Was any previous accounting error adopting prospective application method discovered in the report period?
□ Yes√ No
During the report period, there is no previous accounting errors need to be corrected by the prospective application method
35. Compilation method of other major accounting policies, accounting estimates and financial statement V. Taxation
1. Main taxes and tax rate
||||
|-|-|-|
|Category of taxes|Tax base|Tax rate|
||The measurement of output tax was||
||based on sales of goods and taxable||
||labor income measured by regulations of||
|VAT||17%|
||tax law, while the difference of||
||excluding current deductible tax amount||
||is VAT||
|Business tax|Taxable operating income|5%|
||Taxed at actual business tax, VAT and||
|Urban maintenance and construction tax||7%|
||consumption tax||
|Enterprise income tax|Amount of taxable income|25%|

The income tax rates adopted by each subsidiary and branch factory
The income tax of Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. and Zhuhai Jinji Chemical Co., Ltd. was taxed at15% of the enterprise income tax rate, and each other company was taxed at25%.
2. Tax preference and official documents
1. According to business income tax rate of sub-subsidiary Pearl River Color Printing Co., Ltd. of Chancheng District, Foshan as at7% of total revenue, income tax rate remained25%.
2. According to the Circular on issuing the First Name List of Hi-tech Enterprise through the review in Guangdong Province for Y2012(YKGZi (2013) Document No. 27) jointly issued by Science& Technology Department of Guangdong Province, Finance Department of Guangdong Province, National Tax Bureau of Guangdong Province and Local Tax Bureau of Guangdong Province, theCompany’s shareholding subsidiary
company Zhuhai S.E.Z Hongta Renheng Paper Co., Ltd. passed First Batch of Hi-tech Enterprise in Guangdong
Province for Y2012, and gained Certificate for Hi-tech Enterprise (Certificate No. : GR2012440000283, with
three years of validity). So the subsidiary can enjoy the relevant tax preference for Hi-tech enterprise since Y2012
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. (include Y2012) for three years, whose CIT rate was15%.
3．According to the Notes of the Second Name List of Hi-tech Technology in Guangdong Province for Y2014 (YKGZI (2014) Document No. 60) jointly issued by Science& Technology Department of Guangdong Province, Finance Department of Guangdong Province, National Tax Bureau of Guangdong Province and Local Tax Bureau of Guangdong Province, the sub-subsidiary of the Company Zhuhai Jinji Chemicals Co., Ltd. had been granted the High-tech Enterprise Certificate (No.: GR201344000618 with the validity of 3 years). So the sub-subsidiary of the Company Zhuhai Jinji Chemicals Co., Ltd. can enjoy the relevant tax preference for Hi-tech enterprise since Y2013 (include Y2013) for three years, whose CIT rate was15%.
3. Other
VI. Business combination and consolidated financial statements
1. Subsidiaries
(1) Subsidiaries obtained by establishment and investment
Unit: RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||Balance|
||||||||||||||of|
||||||||||||||parent|
||||||||||||||compan|
||||||||||||||y’s|
|||||||Actual|||||||equity|
|||||||amount|||||||after|
|||||||of|||||||deductin|
|||||||||||Include||||
|||||||investm||The|The||||g the|
||||||||Other|||d in||Deducti||
|||||Register||ents at||proporti|proporti||Minorit||differen|
|Subsidia||Register|Busines||Busines||essential|||consolid||ble||
||Type|||ed||the||on of|on of||y||ce that|
|ries||ed place|s nature||s scope||investm|||ated||minority||
|||||capital||period-e||holding|voting||interest||loss of|
||||||||ent|||stateme||interests||
|||||||nd (Unit||shares|rights||||minority|
|||||||||||nt||||
|||||||Ten|||||||interests|
|||||||thousan|||||||exceed|
|||||||d Yuan|||||||equity|
||||||||||||||obtained|
||||||||||||||by|
||||||||||||||minority|
||||||||||||||sharehol|
||||||||||||||ders|
|Foshan|||||Purchas|||||||||
|Huazhi|||||e and|||||||||
||Subsidia||Service|5,000,0||5,000,0||100.00|100.00|||||
|Waste|ry of|Foshan|||sale of|||||Yes||||
||holding||industry|00.00||00.00||%|%|||||
|Paper|subsidia||||waste|||||||||
|Recycli|ry||||paper|||||||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|ng Co.,|||||and|||||
|Ltd.|||||waste|||||
||||||newspa|||||
||||||per|||||
||||||Printing|||||
||||||other|||||
|Pearl||||||||||
||||||printed|||||
|River||||||||||
||||||material|||||
|Color||||||||||
||Subsidia||||s,|||||
|Printing||||||||||
||ry of||||design|||||
|Co.,|||Manufa|1,500,0||1,500,0|100.00|100.00||
||holding|Foshan|||&||||Yes|
|Ltd. of|||cturing|00.00||00.00|%|%||
||subsidia||||producti|||||
|Chanch||||||||||
||ry||||on and|||||
|eng||||||||||
||||||release|||||
|District,||||||||||
||||||of|||||
|Foshan||||||||||
||||||advertisi|||||
||||||ng|||||
||||||Manufa|||||
||||||cturing|||||
||||||and|||||
|Foshan||||||||||
||||||selling|||||
|Chengto|Holding||Manufa|300,000|ofhigh-cla|225,000||||
|ng|subsidia|Foshan|||ss paper||75.00%|75.00%|Yes|
||||cturing|,000.00||,000.00||||
|Paper|ry||||and|||||
||||||paper|||||
|Co., Ltd|||||board;|||||
||||||export|||||
||||||&|||||
||||||import|||||
|Kunsha||||||||||
||||||Sale|||||
|n Focai||||||||||
||||||packagi|||||
|Packagi|Holding|||||||||
||||Manufa|5,000,0|ng &|5,000,0|100.00|100.00||
|ng &|subsidia|Suzhou|||||||Yes|
||||cturing|00.00|printing|00.00|%|%||
|Printing|ry|||||||||
||||||material|||||
|Co.,||||||||||
||||||s|||||
|Ltd.||||||||||

Other notes to subsidiaries obtained by establishment and investment:
(2) Subsidiaries obtained by business combination under the same control
Unit: RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Actual||||Include|||Balance|
|||||||||The|The|||||
|||||||amount|Other|||d in||Deducti|of|
|||||Register||||proporti|proporti||Minorit|||
|Subsidia||Register|Busines||Busines|of|essential|||consolid||ble|parent|
||Type|||ed||||on of|on of||y|||
|ries||ed place|s nature||s scope|investm|investm|||ated||minority|compan|
|||||capital||||holding|voting||interest|||
|||||||ents at|ent|||stateme||interests|y’s|
|||||||||shares|rights|||||
|||||||the||||nt|||equity|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||period-e||||after|
|||||||nd||||deductin|
|||||||||||g the|
|||||||||||differen|
|||||||||||ce that|
|||||||||||loss of|
|||||||||||minority|
|||||||||||interests|
|||||||||||exceed|
|||||||||||equity|
|||||||||||obtained|
|||||||||||by|
|||||||||||minority|
|||||||||||sharehol|
|||||||||||ders|
||||||Process||||||
||||||and||||||
||||||printing||||||
||||||of||||||
||||||packagi||||||
||||||ng or||||||
||||||decorati||||||
|Huaxin|Holding|||USD|||||||
|(Foshan||Foshan|Manufa||ng|122,536|100.00|100.00|||
|) Color|subsidia|||12,800,|||||Yes||
||||cturing||printing|,700.00|%|%|||
|Printing|ry|||000.00|||||||
|Co., Ltd|||||products||||||
||||||,||||||
||||||domesti||||||
||||||c and||||||
||||||export||||||
||||||sales of||||||
||||||products||||||
||||||Manufa||||||
||||||cturing||||||
||||||and||||||
||Subsidia||||||||||
||||||selling||||||
|Zhuhai|ry of|||||1,068,9|||||
|||Zhuhai|Manufa|984,559|of||100.00|100.00|||
|Huafeng|holding|||||71,500.|||Yes||
|Paper|||cturing|,331.06|high-cla||%|%|||
|Co., Ltd|subsidia|||||00|||||
||||||ss paper||||||
||ry||||||||||
||||||and||||||
||||||paper||||||
||||||board||||||

Other notes to subsidiaries obtained by business combination under the same control:
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. (3) Subsidiaries obtained by business combination not under the same control
Unit: RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||Balance|
||||||||||||||of|
||||||||||||||parent|
||||||||||||||compan|
||||||||||||||y’s|
||||||||||||||equity|
||||||||||||||after|
|||||||Actual||||||||
||||||||||||||deductin|
|||||||amount||||Include||||
|||||||||The|The||||g the|
|||||||of|Other|||d in||Deducti||
|||||Register||||proporti|proporti||Minorit||differen|
|Subsidia||Register|Busines||Busines|investm|essential|||consolid||ble||
||Type|||ed||||on of|on of||y||ce that|
|ries||ed place|s nature||s scope|ents at|investm|||ated||minority||
|||||capital||||holding|voting||interest||loss of|
|||||||the|ent|||stateme||interests||
|||||||||shares|rights||||minority|
|||||||period-e||||nt||||
||||||||||||||interests|
|||||||nd||||||||
||||||||||||||exceed|
||||||||||||||equity|
||||||||||||||obtained|
||||||||||||||by|
||||||||||||||minority|
||||||||||||||sharehol|
||||||||||||||ders|
||||||Manufa|||||||||
||||||cturing|||||||||
|Zhuhai||||||||||||||
||||||and|||||||||
|S.E.Z.||||||||||||||
||||||selling|||||||||
|Hongta|Holding|||USD||||||||||
|||Zhuhai|Manufa||of|927,570||||||||
|Renhen|subsidia|||243,609||||41.97%|41.97%|Yes||||
||||cturing||high-cla|,700.00||||||||
|g Paper|ry|||,909.00||||||||||
||||||ss|||||||||
|Co.,||||||||||||||
||||||packagi|||||||||
|Ltd.||||||||||||||
||||||ng paper|||||||||
||||||board|||||||||
||||||Manufa|||||||||
||||||cturing|||||||||
|Zhuhai|Subsidia||||and|||||||||
|Jinji|ry of||||selling|||||||||
||||Manufa|69,271,||69,000,||||||||
|Chemic|holding|Zhuhai|||of|||51.00%|51.00%|Yes||||
||||cturing|940.00||000.00||||||||
|als Co.,|subsidia||||chemica|||||||||
|Ltd.|ry||||l raw|||||||||
||||||material|||||||||
||||||s|||||||||

Other notes to subsidiaries obtained by business combination not under the same control:
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. 2. Special purpose entities or operating entities with control right formed by entrusted operation or lease during the reporting period
Unit: RMB Yuan
||||
|-|-|-|
||Main business with the|Main balance of assets and liabilities confirmed within the|
|Name|||
||Company|consolidated in the end of the period|

Note to Special purpose entities or operating entities with control right formed by entrusted operation or lease during the reporting period
There was no any special purpose entity or operating entity with control right formed by entrusted operation or lease that newly included into the consolidation scope during the reporting period.
3. Explanation on changes in consolidated scope
Explanation on change in the consolidated scope:
Compared to the last period, there was no consolidation entity newly increased of the reporting period
□Applicable√ Inapplicable
4. The entities newly or no longer included into the consolidated scope during the reporting period
The subsidiaries, special purpose entities and operating entities with control right formed by entrusted operation or lease that newly included in the consolidated scope
Unit: RMB Yuan
||||
|-|-|-|
|Name|Net asset at period-end|Net profit in the period|

 There was no subsidiary, special purpose entity and operating entity with control right formed by entrusted operation or lease that newly included in the consolidated scope
Unit: RMB Yuan
||||
|-|-|-|
|||Net profit from the year begin to|
|Name|Net asset at disposal date||
|||disposal date|

Other explanation to main body that newly included or excluded in the consolidated scope
There was no any subsidiary, special purpose entity or operating entity with control right formed by entrusted operation or lease that newly included into the consolidation scope during the reporting period.
5. Business combination under same control during the report period
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||cash flow from|
||||Income at the|Net profit at the||
||||||operations at the|
|||Actual controller|beginning of the|beginning of the||
|The combined party|Criterion||||beginning of the|
|||under same control|period to the|period to the||
||||||period to the|
||||combining date|combining date||
||||||combining date|

Other explanation to business combination under same control
6. Business combination not under same control during the report period
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. Unit: RMB Yuan
||||
|-|-|-|
|The combined party|Amount of goodwill|Calculation method of goodwill|

Other notes to business combination not under the same control:
There was no such situation of the reporting period.
Whether there were multiple transactions step by step carried out business combination and gained the control during the reporting period.
□ Applicable√ Inapplicable
7. Sale of losing control of equity to decrease subsidiary of the Company during the reporting period
||||
|-|-|-|
|Name of the subsidiary|Date of the sale|Confirmation method of profit and loss|

 Other explanation to sale of losing control of equity to decrease subsidiary of the Company during the reporting period
There was no such situation of the reporting period.
Whether there is a transaction through the multiple step by step disposal of subsidiary investment and lose the control till the reporting period.
□ Applicable√ Inapplicable
8. Counter purchase occurred during the reporting period
|||||
|-|-|-|-|
||||Calculation method of|
|||Determine method of the|goodwill confirmed or recorded|
|Back-door party|Judgment of counter purchase|||
|||combination costs|into the profits and losses in|
||||consolidated|

Other explanation of counter purchase
9. Consolidation by merger during the reporting period
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Type|Main assets of consolidation||Main liabilities of consolidation||
|Consolidation by merger under the same control|Item|Amount|Item|Amount|
|Consolidation by merger not under the same|||||
||Item|Amount|Item|Amount|
|control|||||

Other explanation to consolidation by merger during the reporting period
10. Conversion rate of the main report project in oversea business entity
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
||Amount in|Exchange||Amount in|Exchange||
||||Amount in RMB|||Amount in RMB|
||foreign currency|rate||foreign currency|rate||
|Cash:|--|--|508,284.19|--|--|246,013.17|
|RMB|--|--|392,846.19|--|--|124,103.29|
|HKD|41,610.33|0.7938|33,028.20|51,192.14|0.78623|40,248.79|
|USD|||||||
|Cash:|13,393.87|6.1528|82,409.80|13,393.87|6.0969|81,661.09|
|Bank deposit:|--|--|227,507,584.91|--|--|197,521,218.12|
|RMB|--|--|175,005,763.70|--|--|154,390,161.58|
|HKD|1,779.04|0.7938|1,412.20|1,727,785.20|0.78623|1,358,436.56|
|USD|8,463,929.09|6.1528|52,077,951.60|6,851,452.37|6.09690|41,772,619.98|
|EUR|50,324.90|8.3946|422,457.41||||
|Other monetary funds:|--|--|122,069,527.18|--|--|3,898,999.93|
|RMB|--|--|30,231,681.53|--|--|3,897,126.17|
|USD|14,926,187.37|6.1528|91,837,845.65|307.33|6.09690|1,873.76|
|Total|--|--|350,085,396.28|--|--|201,666,231.22|

 Special explanation shall be made for the accounts limited by being mortgaged, pledged or frozen, deposited overseas or with potential collecting risks:
2. Trading financial assets
(1) Trading financial assets
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing fair value|Opening fair value|

 (2) Trading financial assets of variable current limit of tradable financial assets
Unit: RMB Yuan
||||
|-|-|-|
||Restricted conditions or other major restricted of||
|Item||Closing amount|
||variable current limit||

(3) Hedging tool and the explanation to related hedging transactions
3. Notes receivable
(1) Category of notes receivable
Unit: RMB Yuan
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Category|Closing balance|Opening balance|
|Bank acceptance bill|529,451,218.84|362,998,502.84|
|Total|529,451,218.84|362,998,502.84|

 (2) Notes receivable pledged at period-end
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Issuing entity|Date of issuance|Expiring date|Amount|Remark|
|Fujian Taixin Special|||||
||31 Dec. 2013|30 Jun. 2014|7,742,270.00||
|Paper Co., Ltd.|||||
|Shantou Xinrui Paper|||||
||24 Feb. 2014|24 Aug. 2014|7,607,767.50||
|Product Co., Ltd.|||||
|Fujian Taixin Special|||||
||28 Mar. 2014|28 Sep. 2014|6,324,898.80||
|Paper Co., Ltd.|||||
|Ningbo Bonded Area|||||
|Fangyuan Paper Making|30 Dec. 2013|30 Jun. 2014|6,000,000.00||
|Co., Ltd.|||||
|Shanghai Jielong|||||
|Industrial Group Co.,|22 Jan. 2014|22 Jul. 2014|6,000,000.00||
|Ltd.|||||
|Total|--|--|33,674,936.30|--|

(3) Notes transferred to accounts receivable because drawer of the notes fails to execute the contract or agreement, and undue notes endorsed to other parties at the end of the period
Notes transferred to accounts receivable because drawer of the notes fails to execute the contract
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Issuing entity|Date of issuance|Expiring date|Amount|Remark|
|Total|--|--|0.00|--|

Notes:
The Company has endorsed bills to the other party which not yet expired
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Issuing entity|Date of issuance|Expiring date|Amount|Remark|
|Shantou Xinrui Paper|||||
||24 Feb. 2014|24 Aug. 2014|7,607,767.50||
|Product Co., Ltd.|||||
|Guangzhou Chenhui|||||
|Paper Pulp & Paper|20 Mar. 2014|20 Aug. 2014|7,500,000.00||
|Trading Co., Ltd.|||||
|China Tobacco|25 Mar. 2014|25 Aug. 2014|6,110,000.00||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|Shangdong IndustrialCo., Ltd.|||||
|Ningbo Chengyi PaperCo., Ltd.|||||
||26 Mar. 2014|26 Aug. 2014|5,000,000.00||
|Sichuan TobaccoIndustry Co., Ltd.|||||
||22 Apr. 2014|20 Aug. 2014|5,000,000.00||
|Total|--|--|31,217,767.50|--|

Note:
Note to discounted or pledged commercial acceptance
4. Accounts receivable
(1) Accounts receivable listed by categories
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing balance||||Opening balance||||
||Book balance||Bad debt provision||Book balance||Bad debt provision||
|Category|||||||||
|||Proportion||Proportion||Proportion||Proportion|
||Amount||Amount||Amount||Amount||
|||(%)||(%)||(%)||(%)|
|Accounts receivable for which bad debt provisions are made on the group basis|||||||||
|Group—aging analysis|864,172,50||6,105,130.7||870,040,0||||
|||93.83%||0.70%||93.87%|6,105,130.79|0.70%|
|method|0.41||9||90.27||||
||864,172,50||6,105,130.7||870,040,0||||
|Subtotal of the groups||93.83%||0.70%||93.87%|6,105,130.79|0.70%|
||0.41||9||90.27||||
|Accounts receivable with|||||||||
|insignificant single|||||||||
||56,831,203.||52,961,152.||56,831,20||52,961,152.6||
|amount and individually||6.17%||93.19%||6.13%||93.19%|
||11||64||3.11||4||
|withdrawn bad debt|||||||||
|provision|||||||||
||921,003,70||59,066,283.||926,871,2||59,066,283.4||
|Total||--||--||--||--|
||3.52||43||93.38||3||

Notes to category of accounts receivable:
Accounts receivable with significant single amount and individually withdrawn bad debt provision
□Applicable√Inapplicable
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√Applicable□Inapplicable
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
||Book balance|||Book balance|||
|Aging|||||||
||||Provision for bad|||Provision for bad|
|||Proportion|||Proportion||
||Amount||debts|Amount||debts|
|||(%)|||(%)||
|Within 1 year|||||||
|Including:|--|--|--|--|--|--|
|1-3 months|668,376,074.53|77.34%||794,657,093.64|91.34%||
|4-12 months|164,557,292.67|19.04%|2,721,730.95|54,434,618.95|6.25%|2,721,730.95|
|Subtotal of within||96.39%|||||
||832,933,367.20||2,721,730.95|849,091,712.59|97.59%|2,721,730.95|
|1 year|||||||
|1-2 years|24,451,580.65|2.83%|1,583,814.90|15,838,149.05|1.82%|1,583,814.90|
|2-3 years|2,518,368.09|0.29%|503,686.26|2,518,431.30|0.29%|503,686.26|
|Over 3 years|4,269,184.47|0.49%|1,295,898.68|2,591,797.33|0.30%|1,295,898.68|
|Total|864,172,500.41|--|6,105,130.79|870,040,090.27|--|6,105,130.79|

 In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□Applicable√Inapplicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision
□Applicable√Inapplicable
Other closing individually insignificant but provisions for bad debts individually accounts receivable:
√Applicable□Inapplicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Content of accounts|||Withdrawal proportion||
||Book balance|Provision for bad debts||Reason for withdrawal|
|receivable|||(%)||
|||||Already win the lawsuit,|
|||||while there were no|
|Guangdong Regal Group|||||
||9,919,562.58|9,919,562.58|100.00%|property available for|
|Co., Ltd.|||||
|||||execution that unable to|
|||||recover the balance|
|Foshan Jiahe Paper|||||
||4,902,239.70|4,412,015.73|90.00%|Difficult to recover|
|Trading Co., Ltd.|||||
|Dongguan ErQing|||||
||4,516,409.08|4,516,409.08|100.00%|Difficult to recover|
|Supplies Company|||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|Hong Kong Chengkai|||||
|Economic and Trade|4,513,086.25|3,610,469.00|80.00%|Difficult to recover|
|Development Co., Ltd.|||||
|||||Already win the lawsuit,|
|||||while there were no|
|Shenzhen Xieji Industry|||||
||3,760,350.10|1,880,175.05|50.00%|property available for|
|Co., Ltd.|||||
|||||execution, difficult to|
|||||recover|
|Zhuhai Eastern Zhengtai||||Already supplied to the|
|Power Equipment Co.,|2,925,825.54|2,633,242.99|90.00%|court for execution, but|
|Ltd.||||difficult to recover|
|GuangzhouYi xin Color|||||
||1,917,358.32|1,917,358.32|100.00%|Difficult to recover|
|Printing Paper co., Ltd.|||||
|Yueyang Economic and|||||
|Technological|||||
|Development Zone|1,589,682.46|1,589,682.46|100.00%|Difficult to recover|
|Zhongfei Economic and|||||
|Trade Co., Ltd.|||||
|Urban Area Supplies|||||
||1,351,827.19|1,351,827.19|100.00%|Difficult to recover|
|Industrial Company|||||
|Guangdong Jiangnan|||||
||1,070,324.24|1,070,324.24|100.00%|Difficult to recover|
|Paper Co., Ltd|||||
|||||Already win the lawsuit,|
|||||while there were no|
|Zhuhai Gongbei Ronghui|||||
||1,016,655.73|914,990.16|90.00%|property available for|
|Trading Co., Ltd.|||||
|||||execution that unable to|
|||||recover the balance|
|Others|19,347,881.92|19,145,095.84|98.95%||
|Total|56,831,203.11|52,961,152.64|--|--|

(2) Information of top 5 accounts receivable:
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||||Proportion in the total|
||The relationship with the||||
|Name of entity||Amount|Aging|amount of accounts|
||Company||||
|||||receivable (%)|
|Hongta Tobacco (group)|||||
||Non-related party|51,192,473.36|Within 1 years|5.56%|
|Co., Ltd.|||||
|Fujian Taixing Special|||||
|Fujian Taixing Special|||||
||Non-related party|49,186,514.52|Within 1 years|5.34%|
|Packing Co., Ltd.|||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|Ningbo Zhuoli Import &|||||
||Non-related party|37,255,988.74|Within 1 years|4.05%|
|Export Co., Ltd.|||||
|Zhejiang Tiancheng|||||
||Non-related party|31,795,813.62|Within 1 years|3.45%|
|Paper Industry Co. , Ltd.|||||
|Guangzhou Wen Mao|||||
|Packaging Materials Co.,|Non-related party|25,510,898.37|Within 1 years|2.77%|
|Ltd.|||||
|Total|--|194,941,688.61|--|21.17%|

 (3) Accounts receivable due from other related party
Unit: RMB Yuan
|||||
|-|-|-|-|
||The relationship with the||Proportion in the total amount of|
|Name of entity||Amount||
||Company||accounts receivable (%)|
|Guangdong Guanhao Hi-tech||||
||Related party|427,618.60|0.05%|
|Co., Ltd.||||
|Guangdong Chengtong||||
||Related party|252,199.10|0.03%|
|Logistics Co., Ltd.||||
|Yueyang Antai industrial Co.,||||
||Related party|105,302.10|0.01%|
|Ltd||||
|Yueyang Forest & Paper Co.,||||
||Related party|9,112.56|0.00%|
|Ltd.||||
|Foshan Huaxin Import &||||
||Related party|537,321.89|0.06%|
|Export Co., Ltd.||||
|Total|--|1,331,554.25|0.15%|

 5. Other accounts receivable
(1) Other accounts receivable disclosed by categories:
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing balance||||Opening balance||||
||Book balance||Provision for bad debts||Book balance||Provision for bad debts||
|Category|||||||||
|||Proportion (%)||Proportion (%)||Proportion(%)||Proportio|
||Amount||Amount||Amount||Amount||
|||||||||n (%)|
|Other accounts||13.67%||4100.00%8|||||
|receivable that is|||||||||
||17,947,870.5||18,103,516.||18,103,516.4||||
|individually significant||||||20.05%|18,103,516.48|100.00%|
||3||||8||||
|and provisions for bad|||||||||
|debts individually|||||||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|Other accounts receivable that provisions for bad debts by group|||||||||
|Group—Aging analysis|108,198,772.||||67,023,103.3||||
|||82.39%|1,036,705.88|0.96%||74.22%|1,037,355.88|1.55%|
|method|69||||5||||
||108,198,772.||||67,023,103.3||||
|Subtotal of the groups||82.39%|1,036,705.88|0.96%||74.22%|1,037,355.88|1.55%|
||69||||5||||
|Other accounts|||||||||
|receivable with|||||||||
|insignificant single|||||||||
||5,178,290.54|3.94%|5,078,290.54|98.07%|5,178,290.54|5.73%|5,078,290.54|98.00%|
|amount and individually|||||||||
|withdrawn bad debt|||||||||
|provision|||||||||
||131,324,933.||24,218,512.9||90,304,910.3||||
|Total||--||--||--|24,219,162.90|--|
||76||0||7||||

Notes for categories of other accounts receivable:
Other closing accounts receivable that is individually significant and provisions for bad debts individually.
√Applicable□Inapplicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Content of other accounts|||Withdrawal proportion|Reason|
||Book balance|Provision for bad debts|||
|receivable|||(%)||
|Hong Kong Hengfeng|||||
||11,947,870.53|12,103,516.48|100.00%|Difficult to recover|
|Co., Ltd.|||||
|Zhuhai Yidecheng|||||
||6,000,000.00|6,000,000.00|100.00%|Difficult to recover|
|Industrial Co., Ltd.|||||
|Total|17,947,870.53|18,103,516.48|--|--|

In the group, other accounts receivable that provision for bad debts by aging analysis:
√Applicable□Inapplicable
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|Aging|Closing balance|||Opening balance|||
||Book balance|||Book balance|||
||||Provision for bad|||Provision for bad|
||Amount|Proporti|||Proporti||
||||debts|Amount||debts|
|||on (%)|||on (%)||
|Within 1 year|||||||
|Including:|||||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|1-3 months|53,963,520.22|49.87%||58,071,112.76|86.64%||
|4-12 months|47,444,000.14|43.85%|194,678.83|3,842,056.42|5.74%|192,102.82|
|Subtotal of within 1 year|101,407,520.36|93.72%|194,678.83|61,913,169.18|92.38%|192,102.82|
|1-2 years|4,057,793.16|3.75%|392,563.46|3,925,634.56|5.86%|392,563.46|
|2-3 years|816,379.27|0.75%|90,547.47|464,867.35|0.69%|92,973.48|
|Over 3 years|1,917,079.90|1.78%|358,916.12|719,432.26|1.07%|359,716.12|
|Total|108,198,772.69|--|1,036,705.88|67,023,103.50|--|1,037,355.88|

 In the group, other accounts receivable that provision for bad debts by balance percentage:
□Applicable√Inapplicable
In the group, other accounts receivable that provision for bad debts by other methods:
□Applicable√Inapplicable
Other closing individually insignificant but provisions for bad debts individually accounts receivable:
□Applicable√Inapplicable
(2) Information of top five other accounts receivable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Relationship with theCompany|||Proportion in the total|
|Name of entity||Amount|Aging|amount of other accounts|
|||||receivable (%)|
|Land Purchasing and|Non-related party||||
|||40,670,000.00|Within 1 year|30.97%|
|Storage Center|||||
|Hong Kong Hengfeng|Non-related party||||
|||11,947,870.53|3-5 years|9.10%|
|Co., Ltd.|||||
|Zhuhai Yidecheng|Non-related party||||
|||6,000,000.00|Over 5years|4.57%|
|Industrial Co., Ltd.|||||
|Jiacheng Enterprise|Related-party||||
|||3,000,000.00|Within 1 year|2.28%|
|Development Co., Ltd|||||
|Heshan Mingxin|||||
|Hardware Plastic|Non-related party|2,640,025.00|Within 1 year|2.01%|
|Products Co., Ltd|||||
|Total|--|64,257,895.53|--|48.93%|

 (3) Other accounts receivable due from other related party
Unit: RMB Yuan
|||||
|-|-|-|-|
|Name of entity|The relationship with the|Amount P|roportion in the total amount of|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
||Company||accounts receivable (%)|
|Guangdong Chengtong|Affiliated enterprises of the|||
|||132,432.90|0.10%|
|Logistics Co.,Ltd.|Company|||
|Jiacheng Enterprise||||
||The same actual controllers|3,000,000.00|2.28%|
|Development Co.,Ltd.||||
|China National Paper Industry||||
||Actual controller|94,575.18|0.07%|
|Investment Corp.||||
|Total|--|3,227,008.08|2.45%|

 6. Prepayment
(1) List by aging analysis:
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Closing amount||Opening amount||
|Aging||Proportion||Proportion|
||Amount||Amount||
|||(%)||(%)|
|Within 1 year|171,981,780.49|84.15%|205,885,132.55|99.09%|
|1-2 years|31,277,188.15|15.30%|1,227,426.40|0.59%|
|2-3 years|723,875.26|0.35%|345,584.00|0.17%|
|Over 3 years|381,524.55|0.19%|303,680.12|0.15%|
|Total|204,364,368.45|--|207,761,823.07|--|

 Note:
(2) Information of the top 5 prepayment
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Relationship with the||||
|Name of entity||Amount|Aging|Reason for unsettled|
||Company||||
|Guangzhou Disen Heat|||||
|||||Advance payment for|
|Energy Technology Co.,|Non-related party|30,000,000.00|Within 1 year||
|||||materials|
|Ltd.|||||
|Jiangsu Haoli Textile||||Advance payment for|
||Non-related party|21,912,654.33|Within 1 year||
|Products Co., Ltd.||||materials|
|Asia Symbol (Shandong)||||Advance payment for|
||Non-related party|20,485,120.83|Within 1 year||
|Pulp Paper Co., Ltd.||||materials|
|Guangzhou Dingsheng|||||
|||||Advance payment for|
|industry and trade Co.,|Non-related party|17,189,556.33|Within 1 year||
|||||materials|
|Ltd.|||||
|China National Paper|Related party|15,794,854.09|Within 1 year|Advance payment for|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|Industry Investment||||materials|
|Corp.|||||
|Total|--|105,382,185.58|--|--|

Note:
7. Inventory
(1) Category
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Provision for|||Provision for||
||Book balance||Book value|Book balance||Book value|
|||falling price|||falling price||
|Raw materials|402,044,244.85|8,003,749.83|394,040,495.02|267,103,600.50|8,003,749.83|259,099,850.67|
|Goods in process|41,738,400.54||41,738,400.54|59,834,965.17||59,834,965.17|
|Inventory goods|553,053,225.38|21,709,627.92|531,343,597.46|448,948,918.51|21,709,627.92|427,239,290.59|
|Goods stripped in|||||||
||58,682,665.40||58,682,665.40|34,328,573.88||34,328,573.88|
|transit|||||||
|Total|1,055,518,536.17|29,713,377.75|1,025,805,158.42|810,216,058.06|29,713,377.75|780,502,680.31|

（2）Provision for falling price of inventories
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Withdrawal amount|Decrease in the reporting period|||
||Opening book|||||
|Category||in the reporting|||Closing book balance|
||balance||Reversal|Written off||
|||period||||
|Raw materials|8,003,749.83||||8,003,749.83|
|Inventory goods|21,709,627.92||||21,709,627.92|
|Total|29,713,377.75||||29,713,377.75|

8. Other current assets
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing amount|Opening amount|

Note:
9. Available-for-sale financial assets
(1) Information of available-for-sale financial assets
Unit: RMB Yuan
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Item|Closing fair value|Opening fair value|
|Available-for-sale equity instruments|4,222,090.08|4,862,620.84|
|Total|4,222,090.08|4,862,620.84|

Hold-to-maturity investment in this period shall be reclassified into available-for-sale financial assets, accounting to RMB 0.00 at the proportion of0% to the amount of hold-to-maturity investment before reclassification.
Notes of available-for-sale financial assets:
Available-for-sale equity instruments is shares subject to trading moratorium amounting to 385,537 of Zhuhai Port Co., Ltd. held by Zhuhai S.E.Z Hongta Renheng Paper Co., Ltd. after completing share merger reform. Since the end of 2007, the said shares had been transferred to circulating shares. And the bonus share of Zhuhai Port Co., Ltd. amounting to308,429 in 2012, and allocated on 8 Mar. 2013, with 3 shares for every 10 shares., Zhuhai S.E.Z Hongta Renheng Paper Co., Ltd. held 693,966 shares, allocated 208,190 shares, after share allocation, the amount was 902,156 shares.
10. Investment in joint ventures and associated enterprises
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
||Percentage of|Voting||||Total operation||
||||||||Net profit in|
|Name of|holding shares|percentage of|Total closing|Total closing|Total net|revenue in||
||||||||reporting|
|investee|of the|the Company|assets|liabilities|closing assets|reporting||
||||||||period|
||Company (%)|in investee (%)||||period||
|I. Joint ventures||||||||
|II. Associated enterprises||||||||
|Guangdong||||||||
|Chengtong||||||||
||32.00%|32.00%|46,356,367.50|20,738,458.98|25,617,908.52|40,200,742.29|2,183,030.74|
|Logistics Co.,||||||||
|Ltd.||||||||
|Chengtong||||||||
||||2,364,937,292.|1,290,341,874.|1,074,595,417.|||
|Financial Co.,|20.00%|20.00%||||50,131,087.96|30,894,381.23|
||||51|71|80|||
|Ltd.||||||||

Notes if significant differences exist between the important accounting policies and accounting estimations of joint ventures, associated enterprises and the Company:
11. Long-term equity investment
(1) List of long-term equity investment
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee|Accounti|Initial|Opening|Increase/d|Closing|Share|Voting|Explanati|Impairme|Withdraw|Cash|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||ng|investmen|balance|ecrease|balance|holding|percentag|on for|nt|n|bonus in|
||method|t cost||||percentag|e in|indifferen|provision|impairme|the|
|||||||e in|investee|ces||nt|reporting|
|||||||investee|(%)|between||provision|period|
|||||||(%)||the share||in the||
|||||||||holding||reporting||
|||||||||percentag||period||
|||||||||e and||||
|||||||||voting||||
|||||||||percentag||||
|||||||||e in||||
|||||||||investee||||
|Guangdo||||||||||||
|ng||||||||||||
|Chengton|Equity|7,200,000|7,606,994|280,490.1|7,887,484|||||||
|||||||32.00%|32.00%|||||
|g|method|.00|.20|4|.34|||||||
|Logistics||||||||||||
|Co., Ltd.||||||||||||
|China||||||||||||
|Guangfa|Cost|113,558.0|113,558.0||113,558.0|||||||
|||||||0.00%|0.00%|||||
|Bank Co.,|method|0|0||0|||||||
|Ltd||||||||||||
|Chengton||||||||||||
|g|Equity|231,450,2||231,450,2|231,450,2|||||||
|||||||20.00%|20.00%|||||
|Financial|method|00.00||00.00|00.00|||||||
|Co., Ltd.||||||||||||
|||238,763,7|7,720,552|231,730,6|239,451,2|||||||
|Total|--|||||--|--|--||||
|||58.00|.20|90.14|42.34|||||||

(2) Situation about restriction on transferring assets to investment enterprises
Unit: RMB Yuan
||||
|-|-|-|
|Long-term equity investment project with|||
|||Accumulative and uncertain amounts of|
|restriction on transferring assets to|Reason||
|||investment loss in this period|
|investment enterprises|||

Notes about Long-term equity investment
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. 12. Investment property
(1) Investment property calculated by cost
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Increase in the reporting|Decrease in the||
|Item|Opening book balance|||Closing book balance|
|||period|reporting period||
|I. Total original book|||||
||24,340,076.58||3,895,428.56|20,444,648.02|
|value|||||
|1. Houses and|||||
||24,340,076.58||3,895,428.56|20,444,648.02|
|buildings|||||
|II. Accumulated|||||
|depreciation and|7,959,271.94|383,477.04|833,370.18|7,509,378.80|
|amortization|||||
|1. Houses and|||||
||7,959,271.94|383,477.04|833,370.18|7,509,378.80|
|buildings|||||
|III. Book value of|||||
||16,380,804.64|-383,477.04|3,062,058.38|12,935,269.22|
|investment property|||||
|1. Houses and|||||
||16,380,804.64|-383,477.04|3,062,058.38|12,935,269.22|
|buildings|||||
|V. Book value of|||||
||16,380,804.64|-383,477.04|3,062,058.38|12,935,269.22|
|investment property|||||
|1. Houses and|||||
||16,380,804.64|-383,477.04|3,062,058.38|12,935,269.22|
|buildings|||||

Unit: RMB Yuan
|||
|-|-|
||Reporting period|
|Depreciation and amortization amount|383,477.04|

 13. Fixed assets
(1) Fixed assets details
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Opening book||Decrease in the|Closing book|
|Item||Increase in the reporting period|||
||balance||reporting period|balance|
|I. Total original book value|4,754,551,723.39|33,345,142.56|75,544,217.86|4,712,352,648.09|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
|Including: Houses and||||||
||1,248,435,491.78|3,353,943.38||32,261,393.94|1,219,528,041.22|
|buildings||||||
|Machineries|3,312,079,425.64|24,904,991.27||33,073,441.32|3,303,910,975.59|
|Vehicles|64,373,947.35|3,116,937.56||5,008,815.84|62,482,069.07|
|Other|129,662,858.62|1,969,270.35||5,200,566.76|126,431,562.21|
||Opening book|Increase in|Withdrawal in|Decrease in the|Closing book|
|--||||||
||balance|reporting period|reporting period|reporting period|balance|
|II. Accumulated||||||
||1,713,242,928.57||71,199,888.68|20,512,888.20|1,763,929,929.05|
|depreciation||||||
|Including: Houses and||||||
||345,171,796.58||16,050,984.84|10,500,935.99|350,721,845.43|
|buildings||||||
|Machineries|1,238,683,127.35||50,293,283.35|1,294,000.17|1,287,682,410.53|
|Vehicles|44,725,544.16||2,625,476.73|4,433,973.17|42,917,047.72|
|Other|84,662,460.48||2,230,143.76|4,283,978.87|82,608,625.37|
||Opening book||||Closing book|
|--||--||||
||balance||||balance|
|III. The net book value of||||||
||3,041,308,794.82|--|||2,948,422,719.04|
|fixed assets||||||
|Including: Houses and||||||
||903,263,695.20|--|||868,806,195.79|
|buildings||||||
|Machineries|2,073,396,298.29|--|||2,016,228,565.06|
|Vehicles|19,648,403.19|--|||19,565,021.35|
|Other|45,000,398.14|--|||43,822,936.84|
|IV. Total impairment||||||
||76,679,757.00|--|||76,679,757.00|
|provision||||||
|Machineries|76,679,757.00|--|||76,679,757.00|
|Other||--||||
|V. Total book value of fixed|2,964,629,037.82||||2,871,742,962.04|
|||--||||
|assets||||||
|Including: Houses and||||||
||903,263,695.20|--|||868,806,195.79|
|buildings||||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|Machineries|1,996,716,541.29|--|1,939,548,808.06|
|Vehicles|19,648,403.19|--|19,565,021.35|
|Other|45,000,398.14|--|43,822,936.84|

 Depreciation amount of this reporting period was RMB71, 199,888.68; original value of RMB 20,884,178.41was transferred into fixed assets from construction project.
(2) Particulars about fixed assets temporarily idled
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Accumulated|Depreciation|||
|Item|Book value|||Net book value|Remark|
|||depreciation|reserves|||

(3) Fixed assets available-for- sale at period-end
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||||The estimated disposal|The estimated disposal|
|Item|Book value|Fair value|||
||||expenses|time|

(4) Information of fixed assets failed to accomplish certification of property
||||
|-|-|-|
|Item|Reason|Estimated accomplish date|

 Note:
14. Construction in progress
(1) Construction in progress
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item|Book balance|Provision for|||Provision for||
||||Book value|Book balance||Book value|
|||impairment|||impairment||
|Automatic packaging line|7,844,823.44||||||
||||7,844,823.44|7,363,133.16||7,363,133.16|
|reconstruction project phase II|||||||
|BM2 Wet end chemistry add|2,512,354.05||||||
||||2,512,354.05|2,512,354.05||2,512,354.05|
|system renovation project|||||||
|BM2 Paper cutting machine|||||||
|drive control system upgrade|3,550,875.50||3,550,875.50|3,550,875.50||3,550,875.50|
|project|||||||
|Renovation of BM1multi-disc|2,221,705.07||||||
||||2,221,705.07|2,172,350.07||2,172,350.07|
|machine|||||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|Licensing and software fee for|||||
|informalization project of|1,259,734.21|1,259,734.21|1,259,734.21|1,259,734.21|
|China paper （NC）|||||
|BM1 air conditioner|||||
||57,264.96|57,264.96|1,422,837.61|1,422,837.61|
|renovation|||||
|Restaurant and multi-function|||||
|hall renovation decoration|900,000.00|900,000.00|900,000.00|900,000.00|
|engineering|||||
|BM1 Transmission renovation|||||
||2,783,820.78|2,783,820.78|555,555.56|555,555.56|
|project|||||
|Energy management center|||||
||1,000,658.15|1,000,658.15|||
|project|||||
|Other equipment|1,557,820.71|1,557,820.71|243,385.00|243,385.00|
|Advanced wastewater|||||
|treatment and water reuse|2,943,946.92|2,943,946.92|2,760,654.45|2,760,654.45|
|project|||||
|Huafeng OARS library|13,649,535.88|13,649,535.88|2,926,116.91|2,926,116.91|
|Central air-conditioning|||||
||1,460,000.00|1,460,000.00|1,460,000.00|1,460,000.00|
|installation package B|||||
|Self -bring heating boiler|||||
|environmental upgrading|3,024,766.53|3,024,766.53|1,159,776.60|1,159,776.60|
|technical renovation project|||||
|Ufida NC program|||876,415.10|876,415.10|
|Core slurry PH value control|||248,225.55|248,225.55|
|BM3 Tetra project|923,956.24|923,956.24|302,565.61|302,565.61|
|Food white card coated paper|||||
|double-sided special|9,688,005.89|9,688,005.89|||
|production line|||||
|Completing the new paper roll|||||
||1,900,942.31|1,900,942.31|||
|conveyor line project|||||
|Central air-conditioning|||||
||7,891,466.15|7,891,466.15|||
|installation package A|||||
|High-grade special white|||||
||335,524.95|335,524.95|||
|cardboard BM4 new project|||||
|Food card modification|||||
||1,304,738.00|1,304,738.00|||
|project|||||
|Paper cutter project|1,159,264.85|1,159,264.85|||
|Other equipment|1,516,638.05|1,516,638.05|1,677,169.61|1,677,169.61|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|The latex project phase II|33,463,935.13|33,463,935.13|27,827,556.42|27,827,556.42|
|Ready for installation project|275,631.15|275,631.15|275,631.15|275,631.15|
|Expansion project for|||||
|production workshop phase|70,767,144.87|70,767,144.87|50,513,760.14|50,513,760.14|
|III|||||
|Gidue 530 flexo machine|||||
||4,438,554.97|4,438,554.97|2,384,584.93|2,384,584.93|
|imported|||||
|Seven color offset printing|||||
|press Heidelberg Suba project|20,303,041.66|20,303,041.66|||
|phase III|||||
|Bosch automatic die cutting|||||
||2,094,017.10|2,094,017.10|||
|machine project phase III|||||
|Bosch semillon pasting box|||||
||2,820,512.84|2,820,512.84|||
|machines project phase III|||||
|Other|3,427,765.51|3,427,765.51|1,477,248.39|1,477,248.39|
|Total|207,078,445.87|207,078,445.87|113,869,930.02|113,869,930.02|

 (2) Changes in significant construction in progress
Unit: RMB Yuan
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Includin||||
|||||||Project|||||||
||||||||||g:||||
||||Increase|Transferr||input||||Capitaliz|||
|||||||||Capitaliz|capitaliz||Source||
|Name of||Opening|in|ed to|Other|percenta|Project|||ation of||Closing|
||Budget|||||||ation of|ation of||of||
|project||balance|reporting|fixed|decrease|ge of|process|||interest||balance|
|||||||||interest|interest||funding||
||||period|assets||budget||||rate (%)|||
||||||||||in this||||
|||||||(%)|||||||
||||||||||period||||
|The latex|||||||||||||
||54,850,0|27,827,5|5,636,37||||||||Self-rais|33,463,9|
|project||||||61.01%|80%||||||
||00.00|56.42|8.71||||||||ed|35.13|
|phase II|||||||||||||
|Renovati|||||||||||||
|on of|||||||||||||
||2,500,00|2,172,35|49,355.0||||||||Self-rais|2,221,70|
|BM1mul||||||88.87%|95%||||||
||0.00|0.07|0||||||||ed|5.07|
|ti-disc|||||||||||||
|machine|||||||||||||
|Automat|||||||||||||
|ic|9,500,00|7,363,13|481,690.||||||||Self-rais|7,844,82|
|||||||82.58%|95%||||||
|packagin|0.00|3.16|28||||||||ed|3.44|
|g line|||||||||||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|reconstru||||||||||
|ction||||||||||
|project||||||||||
|phase II||||||||||
|BM2||||||||||
|Wet end||||||||||
|chemistr||||||||||
|y add|3,000,00|2,512,35||||||Self-rais|2,512,35|
|||||83.75%|95%|||||
|system|0.00|4.05||||||ed|4.05|
|renovati||||||||||
|on||||||||||
|project||||||||||
|BM2||||||||||
|Paper||||||||||
|cutting||||||||||
|machine||||||||||
||4,000,00|3,550,87||||||Self-rais|3,550,87|
|drive||||88.77%|50%|||||
||0.00|5.50||||||ed|5.50|
|control||||||||||
|system||||||||||
|upgrade||||||||||
|project||||||||||
|Huafeng||||||||||
||26,339,1|2,926,11|10,723,4|||||Self-rais|13,649,5|
|OARS||||51.82%|60%|||||
||29.18|6.91|18.97|||||ed|35.88|
|library||||||||||
|Food||||||||||
|white||||||||||
|card||||||||||
|coated||||||||||
|paper|25,000,0||9,688,00|||||Self-rais|9,688,00|
|||||105.58%|96%|||||
|double-si|00.00||5.89|||||ed|5.89|
|ded||||||||||
|special||||||||||
|producti||||||||||
|on line||||||||||
|Expansio||||||||||
|n project||||||||||
|for||||||||||
|producti|98,100,0|50,513,7|20,253,3|||1,027,10|2,435,07|Self-rais|70,767,1|
|||||72.14%|80%|||||
|on|00.00|60.14|84.73|||0.87|1.44|ed|44.87|
|worksho||||||||||
|p phase||||||||||
|III||||||||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Gidue|||||||||||
|530|||||||||||
||4,500,00|2,384,58|2,053,97||||||Self-rais|4,438,55|
|flexo||||98.63%|90%||||||
||0.00|4.93|0.04||||||ed|4.97|
|machine|||||||||||
|imported|||||||||||
|Seven|||||||||||
|color|||||||||||
|offset|||||||||||
|printing|||||||||||
||23,000,0||20,303,0||||||Self-rais|20,303,0|
|press||||88.27%|90%||||||
||00.00||41.66||||||ed|41.66|
|Heidelbe|||||||||||
|rg Suba|||||||||||
|project|||||||||||
|phase III|||||||||||
|Bosch|||||||||||
|automati|||||||||||
|c die|||||||||||
||2,500,00||2,094,01||||||Self-rais|2,094,01|
|cutting||||83.76%|90%||||||
||0.00||7.10||||||ed|7.10|
|machine|||||||||||
|project|||||||||||
|phase III|||||||||||
|Bosch|||||||||||
|semillon|||||||||||
|pasting|||||||||||
||3,000,00||2,820,51||||||Self-rais|2,820,51|
|box||||94.02%|90%||||||
||0.00||2.84||||||ed|2.84|
|machine|||||||||||
|s project|||||||||||
|phase III|||||||||||
||256,289,|99,250,7|74,103,7|||1,027,10|2,435,07|||173,354,|
|Total||||--|--|||--|--||
||129.18|31.18|75.22|||0.87|1.44|||506.40|

 Note:
15. Engineering material
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening amount|Increase|Decrease|Closing amount|

 Note:
16. Disposal of fixed assets
Unit: RMB Yuan
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|Item|Opening book value|Closing book value|Reason|

Note to the process of transferring into the disposal of fixed assets period which was over 1 year
17. Intangible assets
(1) Information
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Increase in reporting|Decrease in reporting||
|Item|Opening book balance|||Closing book balance|
|||period|period||
|I. Total original book value|171,492,867.99|14,428,314.27|4,616,723.47|181,304,458.79|
|(1) Land use right|147,280,219.42|14,428,314.27|4,616,723.47|157091810.22|
|(2) Liquid paper research|||||
||2,168,353.05|||2,168,353.05|
|projects|||||
|(3) Development of coated|||||
|cow card paper & new|||||
||11,347,947.00|||11,347,947.00|
|technology of papermaking|||||
|research projects|||||
|(4) Research of|||||
||3,631,820.08|||3,631,820.08|
|low-white-smoke card paper|||||
|(5) Other|7,064,528.44|||7,064,528.44|
|II. Accumulative|||||
||54,279,047.66|3,663,865.84|65,286.26|57,877,627.24|
|amortization|||||
|(1) Land use right|41,111,918.25|3,206,551.64|65,286.26|44,253,183.63|
|(2) Liquid paper research|||||
||281,203.62|108,417.66||389,621.28|
|projects|||||
|(3) Development of coated|||||
|cow card paper & new|||||
||11,231,569.47|||11,231,569.47|
|technology of papermaking|||||
|research projects|||||
|(4) Research of|||||
||453,977.55|181,591.02||635,568.57|
|low-white-smoke card paper|||||
|(5) Other|1,200,378.77|167,305.52||1,367,684.29|
|III. Total net book value of|||||
||117,213,820.33|10,764,448.43|4,551,437.21|123,426,831.55|
|intangible assets|||||
|(1) Land use right|106,168,301.17|11,221,762.63|4,551,437.21|112,838,626.59|
|(2) Development of coated|||||
||1,887,149.43|-108,417.66||1,778,731.77|
|cow card paper|||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|(3) Research of liquid|||||
||116,377.53|||116,377.53|
|packaging paper|||||
|(4) Research of|||||
||3,177,842.53|-181,591.02||2,996,251.51|
|low-white-smoke card paper|||||
|(5) Other|5,864,149.67|-167,305.52||5,646,519.56|
|Total net book value of|117,213,820.33|||123,426,831.55|
|||10,764,448.43|4,551,437.21||
|intangible assets|||||
|(1) Land use right|106,168,301.17|11,221,762.63|4,551,437.21|112,838,626.59|
|(2) Development of coated|||||
||1,887,149.43|-108,417.66||1,778,731.77|
|cow card paper|||||
|(3) Research of liquid|||||
||116,377.53|-181,591.02||116,377.53|
|packaging paper|||||
|(4) Research of|||||
||3,177,842.53|-167,305.52||2,996,251.51|
|low-white-smoke card paper|||||
|(5) Other|5,864,149.67|||5,696,844.15|

Amortization was of RMB 3,663,865.84 in reporting period
18. Goodwill
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||Opening balance||||Impairment|
|Name of investee or event that||Increase in the|Decrease in the|||
|||||Closing balance|provision at|
|generated goodwill||reporting period|reporting period|||
||||||period-end|
|Zhuhai S.E.Z. Hongta Renheng||||||
||9,129,025.01|||9,129,025.01||
|Paper Co., Ltd.||||||
|Zhuhai Jinji Chemicals Co., Ltd.|2,418,280.28|||2,418,280.28||
|Total|11,547,305.29|||11,547,305.29||

Notes of test method of goodwill impairment and impairment withdrawal method:
19. Long-term deferred expense
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||Increase in the|Amortization|Decrease in thereporting period||Reason for other|
|Item|Opening balance||||Closing balance||
|||reporting period|amount in the|||decrease|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
||||reporting period|||
|The rented plant||||||
||780,783.39||135,323.34|645,460.05||
|renovation costs||||||
|Software service||||||
||148,504.27|||148,504.27||
|costs||||||
|Repair costs of||||||
|||1,122,051.97|135,052.98|986,998.99||
|Fixed assets||||||
|Total|929,287.66|1,122,051.97|270,376.32|1,780,963.31|--|

 Note:
20. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets and deferred income tax liabilities are not listed as the net value after offset Recognized deferred income tax assets and deferred income tax liabilities:
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Deferred income tax assets|||
|Provision for assets impairment|22,477,396.48|22,477,396.48|
|Appreciation of assessed fixed assets|10,503,911.43|10,503,911.43|
|Accrued unpaid wages|1,114,587.51|1,114,587.51|
|Accrued sales agency fee|806,135.64|806,135.64|
|Estimated debts/product quality assurance|||
||1,071,940.35|1,071,940.35|
|guarantee losses|||
|Accrued carriage|764,192.66|764,192.66|
|Subtotal|36,738,164.07|36,738,164.07|
|Deferred income tax liabilities:|||
|Change in fair value of available-for-sale financial|||
||261,125.69|357,205.31|
|assets that was recorded into the capital reserves|||
|Appreciation of assessed intangible assets|2,301,918.00|2,301,918.00|
|Appreciation of assessed fixed assets|664,878.44|664,878.44|
|Subtotal|3,227,922.13|3,324,001.75|

List of unrecognized deferred income tax assets
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Deductible temporary differences|119,223,026.10|79,081,983.21|
|Total|119,223,026.10|79,081,983.21|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. The deductible losses of unrecognized deferred income tax assets that will expire in the following fiscal year
Unit: RMB Yuan
|||||
|-|-|-|-|
|Year|Closing balance|Opening balance|Remark|

List of taxable differences and deductible differences
Unit: RMB Yuan
||||
|-|-|-|
||Amount of temporary difference||
|Item|||
||Period-end|Period-begin|
|Taxable differences item|||
|Appreciation of assessed intangible assets|15,346,120.01|15,346,120.01|
|Appreciation of assessed fixed assets|4,432,522.90|4,432,522.90|
|Change in fair value of available-for-sale financial|||
||1,740,837.93|2,381,368.73|
|assets that was recorded into the capital reserves|||
|Subtotal|21,519,480.84|22,160,011.64|
|Deductible difference item|||
|Provision for bad debts|83,285,446.33|83,285,446.33|
|Provision for falling price of inventories|29,713,377.75|29,713,377.75|
|Provision for falling price of fixed assets|76,679,757.00|76,679,757.00|
|Accrued unpaid wages|4,458,350.03|4,458,350.03|
|Accrued sales agency fees|5,374,237.59|5,374,237.59|
|Estimated liabilities/ estimated product quality|||
||7,146,269.00|7,146,269.00|
|guarantee losses|||
|Accrued paper transportation fees|5,094,617.78|5,094,617.78|
|Subtotal|211,752,055.48|211,752,055.48|

(2) List of net amount of deferred income tax assets and deferred income tax liabilities after write-off Items of deferred income tax assets and deferred income tax liabilities after offset with each other
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Deferred income tax|Deductible or taxable|Deferred income tax|Deductible or taxable|
||assets or liabilities|temporary|assets or liabilities|temporary|
|Item|after offset with each|differences after|after offset with each|differences after|
||other at the|offset with each other|other at the|offset with each other|
||period-end|at the period-end|period-begin|at the period-begin|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Deferred income tax assets|36,738,164.07|36,738,164.07|
|Deferred income tax liabilities|3,227,922.13|3,324,001.75|

List of deferred income tax assets and deferred income tax liabilities after offset with each other
Unit: RMB Yuan
|||
|-|-|
|Item|Offset amount in the reporting period|

Note:
21. List of provision for assets impairment
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||Opening book|Increase in|Decrease in reporting period|||
||||||Closing book|
|Item||||||
||balance|reporting period|Reversal|Written off|balance|
|I. Provision for bad debts|83,285,446.33||||83,285,446.33|
|II. Provision for falling price|29,713,377.75||||29,713,377.75|
|of inventories||||||
|VII. Provision for impairment|76,679,757.00||||76,679,757.00|
|of fixed assets||||||
|Total|189,678,581.08||||189,678,581.08|

Note:
22. Other non-current assets
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing amount|Opening amount|

Note:
23. Short-term loan
(1) Category
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Pledge loan|254,644,457.70|109,794,168.00|
|Guarantee loan|452,203,191.68|281,453,500.00|
|Credit loan|79,222,400.00|290,000,000.00|
|Trade financing|339,345,721.96|65,270,692.93|
|Other|||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Total|1,125,415,771.34|746,518,360.93|

 Note:
(2) List of unsettled mature short-term loan at the end of the period
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||Estimated repayment|
|Entity|Amount|Rate|Purpose|Reason of unsettled||
||||||period|

RMB 000 has been repaid after the balance sheet.
Note to short term loan, including reason, conditions, and the new date of expiry of extension expired short-term borrowing. 24. Notes payable
Unit: RMB Yuan
||||
|-|-|-|
|Category|Closing balance|Opening balance|
|Bank acceptance|115,148,852.94|7,208,770.58|
|Total|115,148,852.94|7,208,770.58|

 RMB 000 will be due in next accounting period.
Note:
25. Accounts payable
(1)
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Within 1 year|483,512,469.41|287,598,469.58|
|1 to 2 years|12,783,162.27|15,187,985.61|
|2 to 3 years|516,580.34|47,028.25|
|Over 3 years|2,181,595.42|2,506,828.96|
|Total|498,993,807.44|305,340,312.40|

 26. Advance from customers
(1)
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Within 1 year|21,647,036.86|37,631,581.27|
|1 to 2 years|3,086,663.16|3,420,667.13|
|2 to 3 years|619,024.71|591,928.20|
|Total|25,352,724.73|41,644,176.60|

 27. Payroll payable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening book balance|Increase|Decrease|Closing book balance|
|I. Salary, bonus,|||||
||32,720,189.82|61,654,876.36|83,020,563.41|11,354,502.77|
|allowance, subsidy|||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|II. Employee welfare||3,293,212.90|3,293,212.90||
|III. Social insurance|12,529.31|8,836,894.54|8,690,522.98|158,900.87|
|IV. Housing fund|10,390.11|2,511,133.31|2,453,884.58|67,638.84|
|V. Dismission|||||
|||585,152.38|585,152.38||
|welfare|||||
|VI. others|6,308,091.29|2,303,357.63|1,772,334.22|6,839,114.70|
|Total|39,051,200.53|79,184,627.12|99,815,670.47|18,420,157.18|

RMB 0.00 is the amounts in arrears in the payroll payable.
The labor union budget and employee education budget is RMB 2,093,732.63, and the non-monetary benefits are RMB 0.00, the compensation for terminating the labor contract is RMB 585,152.38.
The estimated distribution date and amount as well as other arrangements for payroll payable:
28. Taxes payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|VAT|-44,843,807.98|3,731,653.25|
|Business tax|293,697.66|292,397.66|
|Corporate income tax|804,478.23|12,598,097.09|
|Personal income tax|796,068.17|259,900.51|
|Urban maintenance and construction tax|96,509.47|887,098.94|
|Education surtax|73,560.20|638,263.78|
|Property tax|2,207,867.30|633,167.20|
|Stamp tax|141,403.27|1,249,271.95|
|Levee expense|57,017.80|323,995.44|
|Other|906,609.88|-420,590.42|
|Total|-39,466,596.00|20,193,255.40|

Notes of taxes payable: for the taxable income of branch companies and factories approved to be inter-adjusted by their local tax authorities, the Company shall specified their calculation procedure.
29. Interest payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Enterprise bond interest|28,613,333.38|5,284,444.47|
|Interest payable on short-term borrowings|10,937,423.26|6,979,523.50|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Interest payable arising from capital of medium term|||
||5,983,116.69|16,501,666.70|
|notes assigned for loan|||
|Total|45,533,873.33|28,765,634.67|

 Note:
30. Dividends payable
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Reason for unsettlement over 1|
|Name of entity|Closing balance|Opening balance||
||||year|
|Foshan Asset Administration Center|170,913.00|170,913.00||
|Xinbang Group (Hong Kong) Co.,||||
|||9,562,048.09||
|Ltd.||||
|Total|170,913.00|9,732,961.09|--|

Note:
31. Other accounts payable
(1)
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Within 1 year|205,415,251.64|18,235,144.33|
|1 years to 2 years|4,045,544.34|2,124,117.74|
|2 years to 3 years|259,722.13|479,734.09|
|Over 3 years|3,808,452.56|4,806,631.97|
|Total|213,528,970.67|25,645,628.13|

(2) Other accounts payable from shareholders with more than5% (including5%) of the voting shares of the Company
Unit: RMB Yuan
||||
|-|-|-|
|Name of entity|Closing balance|Opening balance|
|Foshan Huaxin Development Co., Ltd.|1,100,000.00||
|Total|1,100,000.00||

(3) Notes of the other large amount accounts payable aging over 1 year
||||
|-|-|-|
|Name of entity|Closing balance|Reason for unpayment|
|Yunan Yuxi Tengyin Logistics Co., Ltd.|1,050,000.00|L o g i s t ic s m a r g i n|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Guangdong Xinliang Container TransportationCo., Ltd.|750,000.00|L o g i s t ic s m a r g i n|
|Jiangxi Zhongshun Automotive logistics Co., Ltd.|560,000.00|L o g i s t ic s m a r g i n|
|Zhuhai Jianli Transport Co., Ltd.|500,000.00|L o g i s t ic s m a r g i n|
|Guangdong Dongyuan Xindi logistics Co., Ltd.|500,000.00|L o g i s t ic s m a r g i n|
|Total|3,360,000.00||

(4) Notes of other accounts payable with significant amount
|||||
|-|-|-|-|
|Name of entity|Closing balance|Nature or content|Remark|
|China National Paper-industryInvestment Corporation|162,015,140.00|B a la n c e p a y m e n t o fe quity transfer||
|Foshan Huaxin Development Co.,Ltd.|1,100,000.00|I n t e r n a l c a p it a l l e n d in g||
|Yunan Yuxi Tengyin Logistics Co.,Ltd.|1,050,000.00|L o g i s ti c s m a r g in||
|Guangdong Xinliang ContainerTransportation Co., Ltd.|750,000.00|L o g i s ti c s m a r g in||
|Jiangxi Zhongshun Automotivelogistics Co., Ltd.|560,000.00|L o g i s ti c s m a r g in||
|Total|165,475,140.00||- -|

32. Estimated liabilities
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Increase in reporting|Decrease in reporting||
|Item|Opening balance|||Closing balance|
|||period|period||
|Other|7,146,269.00|||7,146,269.00|
|Total|7,146,269.00|||7,146,269.00|

 Notes of estimated liabilities:
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. 33. Non-current liabilities due within 1 year
(1) Non-current liabilities due within 1 year
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Long term account payable cue within 1 year|418,750,000.00||
|Total|418,750,000.00||

(2) Long term account payable cue within 1 year
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||||Accrued||Conditions of a|
|Entity|Time|Initial amount|Interest rate||Closing balance||
|||||interest||loan|
|China Chengtong|||||||
||2010.3.24-2015.3||||||
|Holding Group||500,000,000.00|4.80%|9,581,449.99|418,750,000.00||
||.24||||||
|Co., Ltd.|||||||

Note to long term account payable due within 1 year
In accordance with the Loan Contract signed by the Company with Foshan Huaxin Development Co., Ltd., the balance of loans of the Company borrowed from Foshan Huaxin Development Co., Ltd. was RMB 2,000,000.00, and the interest rate was decided by the capital costs of the lender, and the Company paid a total interest of RMB 5,267,391.40 for the loan in the reporting period. On 9 Mar. 2010, the two parties signed the Agreement on the Usage of Internal Entrusted Loans of Capital of Medium Term Notes, with stipulated service term of about 5 years and maturity date as 24 Mar. 2015. If an investor chooses to execute home-sales option, the maturity date of medium term notes of Y2010 in home-sales part would be 24 Mar. 2013, with interest rate of4.8%. With the adoption of annually calculated simple interest, interest per year would be paid once a year to China Chengtong Holding Group Co., Ltd., which would uniformly fulfill external payments for interest. In Mar. 2010 the Company had received the amount of medium-term notes 500 million, pay interest RMB 24,333,333.33 in 2011, RMB 24,400,000.00 in 2012 and RMB 21,234,999.99 in 2013. In Mar. 2013, part of the investors‘ total amount of RMB 81.25 million had conducted back sell option that on 24 Mar. 2013 the Company had paid the loan principal of RMB 81.25 million to China Chengtong Holdings Group Co., Ltd
34. Other non-current liabilities
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing book balance|Opening book balance|

Note:
35. Bonds payable
Unit: RMB Yuan
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||Interest paid|||
||||||Opening|Closing||Closing||
|||Issuance||Issuing|||in the||Closing|
|Name|Par value||Term||interest|interest||interest||
|||date||amount|||reporting||balance|
||||||payable|payable||payable||
||||||||period|||
|Corporate|800,000,000|26, Nov.||791,700,000|5,284,444.4|23,328,888.||28,613,333.|794,102,754|
||||5 years|||||||
|bonds|.00|2012||.00|7|91||38|.18|

 Notes of bonds payable, including the conditions and date of conversion of the convertible corporate bonds:
According to the Sixth meeting of the fifth Board of Directors on 16, Dec. 2011,and First Extraordinary General Meeting Resolutions on 4, Jan. 2012 of the Company; at the same time the Company had been approved by the CSRC of[2012] No. 725 "On approval of Foshan Huaxin Packaging Co., Ltd. approved the public offering of corporate bonds." in regulatory approval on 28, May 2012, so the Company issued its 8,000,000 corporate bonds in public with each value of RMB 100 in a combination way of offering public investor online and offering Inquiry for institutional investors under the internet. The total amount of the issued bonds is RMB 800,000,000.00, with the coupon rate of5.8%. The deadline is 5 years from the date of issuance of the corporate bonds. The total amount of the raise funds after the deduction of the bond issuance underwriting fees and custodian fees is RMB 791,700,000.00, and its interest period is from 26, Nov. 2012.
36. Long-term payable
(1) The top five long-term payable
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||||||Conditions of|
|Company|Term|Initial amount|Rate (%)|Accrued interest|Closing balance||
|||||||loan|
|Zhejiang Jinji|||||||
|Holdings Co.,||29,400,000.00|6.00%||29,400,000.00||
|Ltd.|||||||
|Zhejiang Jinji|||||||
|Holdings Co.,|||||8,130,596.06||
|Ltd.|||||||

(2) Details of accounts payable of financing lease in long-term payable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Closing Amount||Opening amount||
|Entity|||||
||Foreign currency|RMB|Foreign currency|RMB|

An independent third party provide guarantee for financing lease of the Company.
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. Note: The Sub-subsidiary of the Company Zhuhai jinji Chemical Co., Ltd took up the shareholder Zhejiang Jinji Holdings Co., Ltd. and use it to sign long term loan contract which agree that the lending rate is according to the same period of the people's bank of China announced the benchmark one-year lending rate Borrowing deadline was from September 1, 2012 to August 31, 2014.
37. Other non-current liabilities
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing book balance|Opening book balance|
|Funds for desulfurization project|990,000.00|990,000.00|
|Funds for energy-saving and emission-reduction|1,710,000.00|1,710,000.00|
|Renovation project of the information system of|||
|paper-making enterprise energy management|3,600,000.00|3,600,000.00|
|center|||
|No. 1 paper machine update & renovation project|240,000.00|240,000.00|
|Tetra liquid paper renovation project|350,000.00|350,000.00|
|Steam condensation water recycling and energy|||
||1,920,000.00|1,920,000.00|
|saving projects|||
|Total|8,810,000.00|8,810,000.00|

 Note to other non-current liabilities
Liabilities project involving government subsidies Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||New amount of|The amount of|Other changes|Closing|Related to|
|||subsidies in the|non-operating||balance|asset/related to|
|Item|Opening balance||||||
|||reporting period|income in the|||earnings|
||||reporting period||||
|Funds for|||||||
|desulfurization|990,000.00||||990,000.00|Related to asset|
|project|||||||
|Funds for|||||||
|energy-saving and|1,710,000.00||||1,710,000.00|Related to asset|
|emission-reduction|||||||
|Renovation project of|||||||
|the information|||||||
|system of|||||||
||3,600,000.00||||3,600,000.00|Related to asset|
|paper-making|||||||
|enterprise energy|||||||
|management center|||||||
|No. 1 paper machine|||||||
||240,000.00||||240,000.00|Related to asset|
|update & renovation|||||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|project||||
|Tetra liquid paper||||
||350,000.00|350,000.00|Related to asset|
|renovation project||||
|Steam condensation||||
|water recycling and||||
||1,920,000.00|1,920,000.00|Related to asset|
|energy saving||||
|projects||||
|Total|8,810,000.00|8,810,000.00|--|

1. The special appropriation by the Finance Bureau for the desulphurization project at the end of the reporting period referred to the appropriation of RMB 1,320,000.00 from Foshan Finance Bureau to the subsidiary Foshan Chengtong Paper Co., Ltd. in 2007. The relevant assets were put in use, and were written off according to their estimated depreciation period from the day of use, due to the stop of Foshan Chengtong Paper Co., Ltd. and did not written-off in this period.
2. According to the Notice of the Ministry of Finance on 2009 Central State-owned Capital Operation Budget Special Appropriation (CQ[2009] No. 411), the subsidiary Foshan Chengtong Paper Co., Ltd. received energy-saving and emission reduction funds of RMB 600,000.00 from China Paper Corporation for transforming the sewage fiber ball filtering system. The system was put into use and amortized over the asset depreciation period from this year, due to the stop of Foshan Chengtong Paper Co., Ltd. and did not written-off in this period. 3. In accordance with the Notice of Zhuhai Municipal Bureau of Finance on Delivering the Interest Subsidy Funds on Technical Renovation of the Provincial Industrial Structure Adjustment Special Funds in 2012 (ZCG[2012] No. 066), theCompany’s subsidiary Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. gained the government grant of RMB 800,000.00 for the information system renovation project of the Paper-making Enterprises Energy. 4. According to the Announcement About Ordering Special Funds for Province Energy Saving of 2012 (the second) (ZCG[2012] No. 123), the sub-subsidiary of the Company Zhuhai Huafeng Co.,Ltd. received RMB 1.92 million of government subsidies for steam condensation water recycling and energy saving projects, 1.40 million of government subsidies for information system project and energy management center project in Feb, 2012. The subsidiary Company Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. received RMB 1.40 million of government subsidies for papermaking enterprise energy management center information system project in Jan. 2013, RMB 350000 of government subsidies for Tetra liquid paper renovation project in Nov. 2013 and RMB 1.20 million special funds for energy conservation and circular economy of Guangdong province of 2013 in December of the same year. The above the government subsidies pertinent to assets, because the issue has not been used in the reporting period, it wad not calculated into non-operating income.
38. Share capital
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Increase/Decrease (+/-)||||||
|Opening|||Capitalization|||Closing|
||Issuing new||||||
|balance||Bonus shares|of public|Other|Subtotal|balance|
||shares||||||
||||reserves||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Total shares|505,425,000.00|505,425,000.00|

 Notes of changes in share capital, for those action of increasing capital or decreasing capital in the reporting period, the Company shall disclose the name of the accounting firm executing the capital verification and document number of the capital verification report; for joint-stock companies running for less than three years, only the net assets shall be specified for particulars before establishment; while for case of totally changing the limited liability companies into joint-stock companies, capital verification on the establishment shall be specified: 39. Capital reserves
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Increase in the reporting|Decrease in the||
|Item|Opening balance|||Closing balance|
|||period|reporting period||
|Capital premium (share|||||
||256,362,525.38|||256,362,525.38|
|capital premium)|||||
|Other capital reserves|627,641.83||228,480.55|399,161.28|
|Other|459,848.04|||459,848.04|
|Total|257,450,015.25||228,480.55|257,221,534.70|

 Note:
40. Surplus reserves
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Increase in the reporting|Decrease in the||
|Item|Opening balance|||Closing balance|
|||period|reporting period||
|Statutory surplus reserves|179,240,134.80|||179,240,134.80|
|Total|179,240,134.80|||179,240,134.80|

 Notes of surplus reserves: for surplus reserves transferred to share capital, compensating losses and distributed as dividends, relevant resolutions shall be explained:
41. Retained profit
Unit: RMB Yuan
||||
|-|-|-|
|||Withdrawal or distributed|
|Item|Amount||
|||proportion|
|Opening balance of retained profits before|||
||787,821,828.63|--|
|adjustments|||
|Opening balance of retained profits after|787,821,828.63||
|||--|
|adjustments|||
|Add：Attributable to owners of the Company|25,086,979.16|--|
|Closing retained profits|812,908,807.79|--|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. List of adjustment of opening retained profits:
1) RMB0.00 opening retained profits was affected by retrospective adjustment conducted according to the Accounting Standards for Business Enterprises and relevant new regulations.
2) RMB0.00 opening retained profits was affected by changes on accounting policies.
3) RMB0.00 opening retained profits was affected by correction of significant accounting errors.
4) RMB0.00 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB0.00 opening retained profits was affected totally by other adjustments.
Notes: as for IPO companies, if the accumulated profits were enjoyed by new and original shareholders according to the resolutions made at theshareholders’ general meeting before public offering, the Company shall explain clearly; if the accumulated profits were distributed before public offering and enjoyed by the original shareholders according to the resolutions made at theshareholders’ general meeting, the Company shall clearly disclose the audited profits of dividends payable enjoyed by the original shareholders: Other notes to retained profits: withdrew the statutory surplus reserves at10% of the total net profits of the Company of RMB 89,030,287.11.
42. Revenue and Cost of Sales
(1) Revenue, Cost of Sales
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Revenue from main business|1,728,723,715.57|1,946,362,017.41|
|Revenue from other business|61,413,935.55|40,317,910.26|
|Cost of sales|1,506,684,829.97|1,742,766,008.88|

 (2) Main business (Classified by industry)
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Reporting period||Same period of last year||
|Name of industry|||||
||Revenue of sales|Cost of sales|Revenue of sales|Cost of sales|
|Industry|1,728,723,715.57|1,479,294,356.26|1,946,362,017.41|1,739,883,484.37|
|Total|1,728,723,715.57|1,479,294,356.26|1,946,362,017.41|1,739,883,484.37|

 (3) Main business (Classified by product)
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Reporting period||Same period of last year||
|Name of product|||||
||Revenue of sales|Cost of sales|Revenue of sales|Cost of sales|
|White board paper|39,563,257.40|53,888,210.24|188,825,711.90|191,686,446.04|
|White card paper|1,321,897,261.05|1,118,409,406.28|1,470,631,654.97|1,317,579,719.44|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|Liquid packaging paper|88,768,067.71|79,458,046.55|||
|Printing products|122,625,407.74|101,260,387.90|122,769,975.38|98,410,376.11|
|Chemicals|155,869,721.67|126,278,305.29|164,134,675.16|132,206,942.78|
|Total|1,728,723,715.57|1,479,294,356.26|1,946,362,017.41|1,739,883,484.37|

 (4) Main business (Classified by area)
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Reporting period||Same period of last year||
|Area|||||
||Revenue of sales|Cost of sales|Revenue of sales|Cost of sales|
|Domestic sales|1,523,756,548.67|1,285,407,243.28|1,677,718,438.70|1,469,498,928.47|
|Export|204,967,166.90|193,887,112.98|268,643,578.71|270,384,555.90|
|Total|1,728,723,715.57|1,479,294,356.26|1,946,362,017.41|1,739,883,484.37|

 (5) The revenue of sales from the top five customers
Unit: RMB Yuan
||||
|-|-|-|
|Customer|Main business revenue|Proportion of total business revenue (%)|
|No. 1|145,523,473.00|8.42%|
|No. 2|67,187,068.62|3.89%|
|No. 3|60,993,156.45|3.53%|
|No. 4|47,070,203.28|2.72%|
|No. 5|46,020,518.55|2.66%|
|Total|366,794,419.90|21.22%|

 Notes:
43. Business tax and surtax
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|Reporting period|Same period of last year|Calculation and payment standard|
|Business tax|1,806,513.76|1,787,596.27||
|Urban maintenance and construction||||
||2,413,243.06|5,859,326.45||
|tax||||
|Education surtax|1,722,951.60|4,073,682.20||
|Levee expense|658,912.83|901,260.42||
|Total|6,601,621.25|12,621,865.34|--|

Note:
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. 44. Selling expenses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Wages|5,599,701.96|7,519,254.92|
|Transportation fees|52,020,984.24|62,741,629.33|
|Business entertainment|3,325,218.50|2,734,633.00|
|Storage charges/fees|1,525,860.78|2,508,754.82|
|Packing expense|4,631,938.58||
|Other|7,665,547.42|11,221,800.48|
|Total|74,769,251.48|86,726,072.55|

 45. Administrative expenses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Wages|18,762,320.07|22,958,048.47|
|Social security fee|8,367,436.71|7,830,113.83|
|Taxes|4,596,004.08|4,316,343.95|
|Depreciation|5,125,988.78|5,691,416.87|
|Office expense|2,556,966.55|1,051,452.97|
|Business entertainment|1,516,985.20|1,467,554.88|
|Other|30,378,841.34|28,930,948.04|
|Total|71,304,542.73|72,245,879.01|

 46. Financial expenses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Interest expenditures|102,712,749.76|65,031,632.84|
|Interest income|46,726,525.58|-1,673,379.83|
|Profit or loss on exchange|2,682,760.01|-3,194,962.81|
|Other|4,902,276.77|1,211,834.17|
|Total|63,571,260.96|61,375,124.37|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. 47. Investment income
(1) List of investment income
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Long-term equity investment income accounted by|||
||280,490.14|21,466.39|
|equity method|||
|Investment income gain from available for sale|||
|||126,785.51|
|financial assets|||
|Total|280,490.14|148,251.90|

 (2). Long-term equity investment income accounted by cost method in this period
Unit: RMB Yuan
|||||
|-|-|-|-|
|||Same period of last||
|Name of investee|Reporting period||Reason for increase/decrease|
|||year||

(3). Long-term equity investment income accounted by equity method
Unit: RMB Yuan
|||||
|-|-|-|-|
|||Same period of last||
|Name of investee|Reporting period||Reason for increase/decrease|
|||year||
|Guangdong Chengtong Logistics Co.,||||
||280,490.14|21,466.39|Change in business performance|
|Ltd.||||
|Total|280,490.14|21,466.39|--|

Notes of investment income: make notes if there is significant limitation for recovery of investment income. If thereisn’t the said limitation, notes too:
48. Non-operating gains
(1) Non-operating gains
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Amount recorded into|
|Item|Reporting period|Same period of last year|current non-recurring gains|
||||and losses|
|Total gains from disposal of non-current||||
||1,661,857.96|129,584.46|1,661,857.96|
|assets||||
|Including: Gains from disposal of fixed||||
||1,661,857.96|129,584.46|1,661,857.96|
|assets||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|Government grants|1,140,739.36|2,614,843.00|1,140,739.36|
|Other|489,161.52|521,493.56|489,161.52|
|Total|3,291,758.84|3,265,921.02|3,291,758.84|

 Note:
(2) List of government grants calculated in profit or loss.
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||||Related to assets/ related|Non-recurring profit and|
|Item|Reporting period|Same period of last year|||
||||to income|loss or not|
|Import discount interest|||||
|in the second half of|433,000.00||Related to income|Yes|
|2013|||||
|Increase the import|||||
|special matching fund|610,139.36||Related to income|Yes|
|from Jan to Jul. 2013|||||
|Gaolan container|||||
||61,600.00||Related to income|Yes|
|terminal consign subsidy|||||
|Transformation and|||||
|upgrading fund of|||||
||36,000.00||Related to income|Yes|
|processing trade in|||||
|2013|||||
|Subsidies for energy|||||
|||2,184,000.00|Related to income||
|saving special fund|||||
|Annual energy saving|||||
|advanced unit in|||||
|||100,000.00|Related to income||
|Guangdong province of 2|||||
|011|||||
|Import discount interest|||||
|in the second half of||330,843.00|Related to income||
|2012|||||
|Total|1,140,739.36|2,614,843.00|--|--|

49. Non-operating expenses
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Amount recorded into|
|Item|Reporting period|Same period of last year|current non-recurring|
||||gains and losses|
|Loss on disposal of non-current assets|506,744.11|3,412.89|506,744.11|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|Including: Loss on disposal of non-current assets|506,744.11|3,412.89|506,744.11|
|Other|46,900.41|192,142.29|46,900.41|
|Total|553,644.52|195,555.18|553,644.52|

 Note:
50. Income tax expense
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Current income tax expense accounted by tax and relevant|||
||17,211,486.34|19,755,209.39|
|regulations|||
|Total|17,211,486.34|19,755,209.39|

 51. Calculation process of basic EPS and diluted EPS
Calculation formula for data above:
1. Basic EPS
Basic EPS=P0÷S
S=S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk
Of which: P0 represents the amounts attributable to ordinary equity holders of the Company in respect of: (a) Profit or loss attributable to the Company; and
(b) Profit or loss after deducting extraordinary gain or loss attributable to the Company.
S represents the weighted average number of ordinary shares outstanding during the period. S0 represents the number of ordinary shares at the beginning of the period. S1 represents the number of additional ordinary shares issued on capital surplus transfer or share dividends appropriation; Si represents the number of ordinary shares issued in exchange for cash or issued as a result of the conversion of a debt instrument to ordinary shares during the period. Sj represents reduced number of ordinary shares such as shares buy back. Sk represents the number of a reverse share split. Mo represents the months during the period. Mi represents the months from the following month after issuing incremental shares to the end of the period. Mj represents the months from the following month after reducing shares to the end of the period.
2. Diluted EPS
Diluted EPS=P1/(S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk+ The weighted average number of incremental ordinary shares on warrants, options, convertible debt and soon）
Of which: P1 represents the amounts attributable to ordinary equity holders of the Company in respect of: (a) Profit or loss attributable to the Company; and (b) Profit or loss after deducting extraordinary gain or loss attributable to the Company, adjust according to the accounting standards for enterprises and other relevant provisions. The Company considered in sequence from dilutive potential ordinary shares to get the lowest earnings per share.
Calculating process:
(1) Basic EPS
For the Company, the basic earnings per share shall be calculated by dividing the consolidated net profits belonging to the shareholders of ordinary shares by the weighted average number of ordinary shares issued to thepublic：
Item Occurred amount in current year Occurred amount in last year (note)
|||
|-|-|
|25,086,979.16|3,886,014.86|
|505,425,000|505,425,000|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. issued to the public
|||
|-|-|
|0.050|0.008|

Process of calculating weighted average number of ordinaryshares：
Item Occurred amount in current year Occurred amount in last year (note)
|||
|-|-|
|505,425,000|505,425,000|
|505,425,000|505,425,000|

(2) Diluted EPS
For the Company, the diluted EPS shall be calculated by dividing the adjusted consolidated net profits belonging to the shareholders of ordinary shares by the adjusted weighted average number of ordinary shares issued to the public
Item Occurred amount in current year Occurred amount in last year
|||
|-|-|
|25,086,979.16|3,886,014.86|
|505,425,000|505,425,000|
|0.050|0.008|

Process of calculating weighted average number of ordinary shares（diluted）：
Item Occurred amount in current year Occurred amount in last year
|||
|-|-|
|505,425,000|505,425,000|
|505,425,000|505,425,000|

52. Other comprehensive income
Unit: RMB Yuan
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|1. Profits/(losses) from available-for-sale financial assets|-640,530.76|-1,131,164.51|
|Less: Effects on income tax generating from available-for-sale|||
||-96,079.62|-169,674.68|
|financial assets|||
|Subtotal|-544,451.14|-961,489.83|
|Total|-544,451.14|-961,489.83|

 Note:
53. Notes of Cash Flow Statement
(1) Other cash received relevant to operating activities Unit: RMB Yuan
|||
|-|-|
|Item|Amount|
|Income from government grants|1,150,739.36|
|Interest income from normal bank deposit|739,970.97|
|Guarantee deposit|1,010,457.86|
|Current amount|66,634,198.87|
|Waste income|388,024.09|
|Insurance indemnity|1,280,424.57|
|Other|2,861,481.88|
|Total|74,065,297.60|

 Notes of other cash received relevant to operating activities
(2) Other cash paid relevant to operating activities
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|
|Utilities|245,900.05|
|Repair charge|1,834,169.00|
|Transportation|2,614,518.13|
|Business entertainment|5,051,567.70|
|Lease expense|1,234,057.96|
|Travelling expense|2,671,760.73|
|Sewage charge|4,800,436.78|
|Bank charge|10,591,890.36|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
|Insurance expenses|5,776,134.16|
|Intermediary fee|3,147,145.41|
|Current amount|1,708,570.03|
|Correspondence|686,329.34|
|Motor vehicle expenses|2,374,091.81|
|Other|11,249,418.57|
|Total|53,985,990.03|

 Note:
54. Appendix of Cash Flow Statement
(1) Appendix of Cash Flow Statement
Unit: RMB Yuan
||||
|-|-|-|
|Supplemental information|Reporting period|Same period of last year|
|1. Reconciliation of net profit to net cash flows generated|||
||--|--|
|from operating activities|||
|Net profit|53,013,262.85|-1,496,463.55|
|Depreciation of fixed assets, of oil-gas assets, of productive|||
||58,866,604.10|75,777,944.74|
|biological assets|||
|Amortization of intangible assets|3,752,011.36|3,051,549.14|
|Amortization of long-term deferred expense|784,812.72|-2,681,379.02|
|Losses on disposal of fixed assets, intangible assets and|||
||-1,740,116.39|38,070.18|
|other long-term assets (gains: negative)|||
|Financial cost (gains: negative)|57,193,057.74|61,150,599.10|
|Investment loss (gains: negative)|-280,490.14|-148,251.90|
|Increase in deferred income tax assets (decrease: negative))|-96,079.62|-169,674.70|
|Decrease in inventory (gains: negative)|-245,302,478.11|7,747,354.16|
|Decrease in accounts receivable from operating activities|||
||-199,155,030.89|49,312,550.55|
|(gains: negative)|||
|Increase in payables from operating activities (decrease:|||
||53,868,679.09|218,174,180.91|
|negative)|||
|Net cash flows generated from operating activities|-219,095,767.29|410,756,479.61|
|2. Investing and financing activities that do not involving|||
||--|--|
|cash receipts and payment:|||
|3. Net increase in cash and cash equivalents|--|--|
||155,328,886.12|110,145,468.59|
|Closing balance of cash|||
||200,248,786.56|378,872,416.49|
|Less: Opening balance of cash|||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Net increase in cash and cash equivalents|-44,919,900.44|-268,726,947.90|

 (3) Composition of cash and cash equivalents
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|I. Cash|155,328,886.12|200,248,786.56|
|Including: cash in hand|508,284.19|246,013.17|
|Bank deposit can be used for payment at any time|154,820,601.93|197,521,218.12|
|Other monetary funds can be used for payment at any|||
|||2,481,555.27|
|time|||
|III. Closing balance of cash and cash equivalents|155,328,886.12|200,248,786.56|

 Note:
VIII. Relationship and Related Party Transactions
1. Particulars about the parent company of the Company:
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||Proportion|Proportion|||
|||||||Registered|||||
||||||||s of parent|s of parent|||
|||||||capital|||Ultimate||
|Name of||||Legal|||company’s|company’s|||
||Relationsh|Enterprise|Registratio||Business|( RMB|||controller|Organizati|
|parent||||representat|||shareholdi|voting|||
||ip|nature|n place||nature|Ten|||of the|on code|
|company||||ive|||ng to the|right to the|||
|||||||thousand|||company||
||||||||company|company|||
|||||||Yuan)|||||
||||||||(%)|(%)|||
|Foshan|||||||||China||
||Controllin||||||||||
|Huaxin|||||||||Chengtong||
||g|Limited||Tong|Manufactu|||||19353992-|
|Developm|||Foshan|||45793|65.20%|65.20%|Holding||
||shareholde|company||Laiming|ring|||||5|
|ent Co.,|||||||||Group Co.,||
||r||||||||||
|Ltd.|||||||||Ltd.||
|China|||||||||||
|National|||||||||China||
|Paper-indu|||||||||Chengtong||
||Actual|State-owne||Tong||||||10000890-|
|stry|||Beijing||Integrated|173300|65.31%|65.31%|Holding||
||controller|d||Laiming|industry|||||7|
|Investment|||||||||Group Co.,||
|Corporatio|||||||||Ltd.||
|n|||||||||||
|China|Controllin|Limited|||||||China||
|Chengtong|g|company|Beijing|Ma|Integrated|748016.56|65.42%|65.42%|Chengtong|71092254-|
|Holding|shareholde|(solely||Zhengwu|industry||||Holding|4|
|Group Co.,|r|state-owne|||||||Group Co.,||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Ltd.|d )|Ltd.|

Statement of particulars about parent company of the Company:
On 28 Jun. 2005, Foshan Gongying Investment Holding Co., Ltd. transferred62.1142% shares (capital contribution was RMB 284,440,000) of Foshan Huaxin Development Co., Ltd. to China National Materials Development& Investment Corporation, which has changed its name to China National Paper-industry Investment Corporation. Foshan Huaxin Development Co., Ltd is the parent company and holds65.2% shares of the Company, China National Paper-industry Investment Corporation originally holds0.11% shares of the Company, so that China National Paper-industry Investment Corporation held65.31% shares of the Company directly and indirectly and becomes actual controller of the Company. China Chengtong Holding Group Co., Ltd. holds100% shares of China National Paper-industry Investment Corporation and has become the ultimate controller of the Company through holding0.11% shares of the Company by its subsidiary, China Packaging Corporation.
2. Subsidiaries of the Company
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||Legal|||Proportion|Proportion||
|Full-name|Type of|Enterprise|Registered||Business|Registered|||Organizatio|
|||||representati|||of shares|of voting||
|of subsidiary|subsidiary|type|place||nature|capital|||n code|
|||||ve|||held (%)|right (%)||
|Foshan||||||||||
|Chengtong|Holding|Limited||Ji|Manufacturi|300,000,000||||
||||Foshan||||75.00%|75.00%|68641217-2|
|||liability||||||||
|Paper Co.,|subsidiary|||Xiangdong|ng|.00||||
|||company||||||||
|Ltd||||||||||
|Huaxin||||||||||
|(Foshan)||Limited||||||||
||Holding||||Manufacturi|USD12,800,||||
|Color||liability|Foshan|Chen Jiali|||100.00%|100.00%|72111733-X|
||subsidiary||||ng|000.00||||
|Printing||company||||||||
|Co., Ltd.||||||||||
|Zhuhai||||||||||
|||Limited||||||||
|Huafeng|Shareholdin|||Ji||984,559,331||||
|||liability|Zhuhai||Manufacturi||100.00%|100.00%|61762142-1|
|Paper Co.,|g company|||Xiangdong|ng|.06||||
|||company||||||||
|Ltd.||||||||||
|Zhuhai||||||||||
|S.E.Z.||||||||||
|||Limited||||||||
|Hongta|Holding|||Tong||USD243,60||||
|||liability|Zhuhai||Manufacturi||41.97%|41.97%|61750210-7|
|Renheng|subsidiary|||Laiming|ng|9,909.00||||
|||company||||||||
|Paper Co.,||||||||||
|Ltd.||||||||||
|Foshan||||||||||
|Huazhi||Limited||||||||
||Shareholdin|||||5,000,000.0||||
|Waste Paper||liability|Foshan|Chen Jiali|Service||100.00%|100.00%|77620148-3|
||g company||||industry|0||||
|Recycling||company||||||||
|Co., Ltd.||||||||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Pearl River||||||||||
|Color||||||||||
|Printing||Limited||||||||
||Shareholdin||||Manufacturi|1,500,000.0||||
|Co., Ltd. of||liability|Foshan|Chen Jiali|||100.00%|100.00%|70817367-9|
||g company||||ng|0||||
|Chancheng||company||||||||
|District,||||||||||
|Foshan||||||||||
|Kunshan||||||||||
|Focai||Limited||||||||
||Holding||||Manufacturi|5,000,000.0|||56030722-|
|Packaging||liability|Suzhou|Chen|||100.00%|100.00%||
||subsidiary|||Zhenran|ng|0|||X|
|& Printing||company||||||||
|Co., Ltd.||||||||||
|Zhuhai Jinji||Limited||||||||
||Shareholdin|||Ji|Manufacturi|69,271,940.||||
|Chemicals||liability|Zhuhai||||51.00%|51.00%|77623593-1|
||g company|||Xiangdong|ng|00||||
|Co., Ltd.||company||||||||

3. Particulars on joint ventures and associated enterprises of the Company
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Legal|||Proportion|Proportion|||
||Business|Registration||Business|Registered|||Relationshi|Organizatio|
|Item|||representati|||of holding|of voting|||
||Type|place||scope|capital|||p|n code|
||||ve|||shares (%)|rights (%)|||
|I. Joint ventures||||||||||
|II. Associated enterprises||||||||||
|Guangdong||||||||||
||Limited|||||||||
|Chengtong|||Li||22,500,000.|||Associated||
||liability|Zhuhai||Service||32.00%|32.00%||78485447-6|
|Logistics|||Xiangyang||00|||enterprise||
||company|||||||||
|Co., Ltd.||||||||||
|Chengtong|Limited|||||||||
|||||Financial|1,000,000,0|||Associated|717833122-|
|financial|liability|Beijing|Xu Zhen|||20.00%|20.00%|||
|||||industry|00.00|||enterprise|2|
|Co., Ltd|company|||||||||

4. Other related parties of the Company
||||
|-|-|-|
|Name|Relationship|Organization code|
||Under the control of the same actual||
|Foshan Huaxin Import & Export Co., Ltd.||19354411-8|
||controller||
||Under the control of the same actual||
|Guangdong Guanhao High-tech Co., Ltd.||61780353-2|
||controller||
|Dragon State Investment Development|Under the control of the same ultimate||
|Co., Ltd.|controller||
|Tianjin Port Free Trade Zone Zhongwu|Under the control of the same actual|23966002-7|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Investment Development Co., Ltd.|controller||
||Under the control of the same actual||
|Yueyang Forest & Paper Co., Ltd.||72258771-2|
||controller||
|Yueyang Antai industrial Co., Ltd|Under the control of the same actual|707334733|
|Yuanjiang Paper Co., Ltd.|Under the control of the same actual|72257301-1|

Note:
5．Related party transactions
(1) Purchase of goods and acceptance of labor services
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||||Reporting period||Same period of last year||
|||Pricing principle||Proportio||Proportio|
||Content of|and decision||n in||n in|
|Related party|related-party|making procedure||transactio||transactio|
||||Amount||Amount||
||transaction|of related-party||ns of the||ns of the|
|||transactions||same kind||same kind|
|||||(%)||(%)|
|China National||Based on market|||||
||Purchase of raw||||||
|Paper-Industry||price and pricing|101,238,959.04|7.59%|66,379,513.88|5.70%|
||materials||||||
|Investment Corp.||after negotiation|||||
|Tianjin Port Free|||||||
|Trade Zone||Based on market|||||
||Purchase of raw||||||
|Zhongwu Investment||price and pricing|43,958,331.64|100.00%|36,259,940.84|53.98%|
||materials||||||
|Development Co.,||after negotiation|||||
|Ltd.|||||||
|Guangdong||Based on market|||||
|Chengtong Logistics|Logistics service|price and pricing|12,347,755.35|19.05%|10,239,972.55|16.37%|
|Co., Ltd.||after negotiation|||||
|||Based on market|||||
|Yuanjiang Paper Co.,|Purchase of raw||||||
|||price and pricing|300,426.28|0.02%|0.00|0.00%|
|Ltd.|materials||||||
|||after negotiation|||||
|Foshan Huaxin||Based on market|||||
||Purchase of raw||||||
|Import & Export||price and pricing|3,481,909.97|71.00%|6,112,691.31|4.49%|
||materials||||||
|Co., Ltd.||after negotiation|||||
|||Based on market|||||
|Guangdong Guanhao|Purchase of raw||||||
|||price and pricing|213,734.96|3.50%|0.00|0.00%|
|High-tech Co., Ltd.|materials||||||
|||after negotiation|||||

Statements of sales of goods and rendering of service
Unit: RMB Yuan
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
||||Reporting period||Same period of last year||
|||Pricing principle||Proportio||Proportio|
||Content of|and decision||n in||n in|
|Related party|related-party|making procedure||transactio||transactio|
||||Amount||Amount||
||transaction|of related-party||ns of the||ns of the|
|||transactions||same kind||same kind|
|||||(%)||(%)|
|Foshan Huaxin||Based on market|||||
|Import & Export|White cardboard|price and pricing|353,750.42|0.03%|612,307.69|0.04%|
|Co., Ltd.||after negotiation|||||
|||Based on market|||||
|Guangdong Guanhao|||||||
||White cardboard|price and pricing|98,980.77|0.00%|0.00|0.00%|
|High-tech Co., Ltd.|||||||
|||after negotiation|||||
|||Based on market|||||
|Yueyang Forest &|||||||
||Chemicals|price and pricing|0.00|0.00%|2,425,233.10|1.48%|
|Paper Co., Ltd.|||||||
|||after negotiation|||||
|China National|||||||
|||Based on market|||||
|Paper-industry|||||||
||Wood-pulp|price and pricing|376,048.92|0.01%|0.00|0.00%|
|Investment|||||||
|||after negotiation|||||
|Corporation|||||||
|Foshan Huaxin||Based on market|||||
|Import & Export|Waste paper|price and pricing|804,048.62|100.00%|1,695,325.00|100.00%|
|Co., Ltd.||after negotiation|||||

(2). Related trusteeship and contracting during the reporting period
Table of related trusteeship and contracting
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Name of|||||Income|
|Name of|||||||
||entrustee|Type|Start date|End day|Pricing basis|recognized in the|
|trustee/contractee|||||||
||/contractor|||||reporting period|
||Guangdong||||||
|Zhuhai S.E.Z.|||||||
||Chengtong|Building &|||Negotiated||
|Hongta Renheng|||1 Jan. 2013|31 Jan. 2014||252,480.00|
||Logistics Co.,|construction|||price||
|Paper Co., Ltd.|||||||
||Ltd.||||||

Table of entrusted management/contractee
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Name of|||||Income|
|Name of|||||||
||entrustee|Type|Start date|End day|Pricing basis|recognized in the|
|trustee/contractee|||||||
||/contractor|||||reporting period|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
||Foshan Huaxin||||||
|Foshan Huaxin|||||Perform||
||Development|Office and office|||||
|Development Co.,|||1 Jan. 2012|31 Jan. 2014|according to the|284,700.00|
||Packaging co.,|equipment|||||
|Ltd.|||||contract||
||Ltd||||||

Note:
(3) Information of related-party guarantee
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||Whether the|
|Guarantor|Secured party|Guarantee amount|Initial date|Due date|guarantee was|
||||||accomplished or not|
||Zhuhai S.E.Z.|||||
|The Company|Hongta Renheng|330,000,000.00|6 May 2014|6 May 2017|No|
||Paper Co., Ltd.|||||
||Zhuhai S.E.Z.|||||
|The Company|Hongta Renheng|200,000,000.00|24 Aug. 2012|23 Aug 2014|No|
||Paper Co., Ltd.|||||
||Zhuhai S.E.Z.|||||
|The Company|Hongta Renheng|150,000,000.00|17 Oct. 2012|31 Dec. 2014|No|
||Paper Co., Ltd.|||||
||Zhuhai S.E.Z.|||||
|The Company|Hongta Renheng|250,000,000.00|25 Feb. 2014|31 Dec. 2015|No|
||Paper Co., Ltd.|||||
||Zhuhai S.E.Z.|||||
|The Company|Hongta Renheng|100,000,000.00|24 Dec. 2013|24 Dec. 2014|No|
||Paper Co., Ltd.|||||
||Zhuhai S.E.Z.|||||
|The Company|Hongta Renheng|100,000,000.00|27 Mar. 2012|27 Mar. 2015|No|
||Paper Co., Ltd.|||||
||Zhuhai Huafeng|||||
|The Company||350,000,000.00|29 Oct. 2013|28 Oct. 2016|No|
||Paper Co., Ltd.|||||
|Zhuhai S.E.Z.||||||
||Zhuhai Jinji|||||
|Hongta Renheng||100,000,000.00|29 May 2014|29 May 2015|No|
||Chemicals Co., Ltd.|||||
|Paper Co., Ltd.||||||
||Huaxin (Foshan)|||||
|The Company|Color Printing Co.,|65,000,000.00|1 Jul. 2013|31 Dec. 2017|No|
||Ltd.|||||
|China National||||||
|Paper-industry|The Company|610,000,000.00|17 Apr. 2013|17 Apr. 2016|No|
|Investment||||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
|Corporation||||||
|Zhuhai S.E.Z.||||||
||Zhuhai Huafeng|||||
|Hongta Renheng||12,000.00|7 Feb. 2013|7 Feb. 2016|Yes|
||Paper Co., Ltd.|||||
|Paper Co., Ltd.||||||

Note:
(4) Related-party call loan
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Related party|Amount of call loan|Initial date|Due date|Note|
|Loan from banks and other financial institutions|||||
|||||In accordance with the|
|||||Loan Contract signed by|
|||||the Company with|
|||||Foshan Huaxin|
|||||Development Co., Ltd.,|
|||||the balance of loans of|
|||||the Company borrowed|
|||||from Foshan Huaxin|
|||||Development Co., Ltd.|
|||||was RMB 2,000,000.00,|
|||||and the interest rate was|
|||||decided by the capital|
|||||costs of the lender, and|
|||||the Company paid a total|
|||||interest of RMB|
|China Chengtong||||5,267,391.40 for the loan|
||418,750,000.00|30 Mar. 2010|24 Mar. 2015||
|Holding Group Co., Ltd.||||in the reporting period.|
|||||On 9 Mar. 2010, the two|
|||||parties signed the|
|||||Agreement on the Usage|
|||||of Internal Entrusted|
|||||Loans of Capital of|
|||||Medium Term Notes,|
|||||with stipulated service|
|||||term of about 5 years and|
|||||maturity date as 24 Mar.|
|||||2015. If an investor|
|||||chooses to execute|
|||||home-sales option, the|
|||||maturity date of medium|
|||||term notes of Y2010 in|
|||||home-sales part would be|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|||24 Mar. 2013, with|
|||interest rate of 4.8%.|
|||With the adoption of|
|||annually calculated|
|||simple interest, interest|
|||per year would be paid|
|||once a year to China|
|||Chengtong Holding|
|||Group Co., Ltd., which|
|||would uniformly fulfill|
|||external payments for|
|||interest. In Mar. 2010|
|||the Company had|
|||received the amount of|
|||medium-term notes 500|
|||million, pay interest|
|||RMB 24,333,333.33 in|
|||2011, RMB|
|||24,400,000.00 in 2012|
|||and RMB 21,234,999.99|
|||in 2013. In Mar. 2013,|
|||part of the investors|
|||‘ total amount of RMB|
|||81.25 million had|
|||conducted back sell|
|||option that on 24 Mar.|
|||2013 the Company had|
|||paid the loan principal of|
|||RMB 81.25 million to|
|||China Chengtong|
|||Holdings Group Co., Ltd.|
|||According to the Loan|
|||Contract signed by the|
|||Company and Foshan|
|||Huaxin Development|
|||Co., Ltd.. As of the end|
|||of the reporting period,|
|Foshan Huaxin|||
||1,100,000.00|the loan balance of the|
|Development Co., Ltd.|||
|||Company borrowed from|
|||Foshan Huaxin|
|||Development Co., Ltd.|
|||was RMB|
|||1,100,000.00.the interest|
|||rate was recognized in|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
||line with lending money.|
|Lending to banks and other financial institutions||

(5) Other related party transactions
According to the 2013
1st
meeting of
5th
board of directors on 18 April, 2013 and 2012 Annual General Meeting on 15 May, 2013, the review of Financial Services Agreement signed by this Company and Hengtong Financial Co., Ltd and related transaction bill for financial services has agreed to sign Financial Services Agreement signed by this Company and Hengtong Financial Co., Ltd and conduct financial services; sum of daily maximum outstanding of deposits and interests on deposit of this Company in Chengtong Financial Co., Ltd should not be higher than5% of last year audit amount (outstanding of deposits excluding loans or settlement amount); sum of credit extension and interests should not be greater than RMB 600,000,000; and all settlement businesses should be conducted according to requirements. Until 30 Jun. 2014, outstanding of deposits of the Company in Chengtong Financial Co., Ltd was RMB 000 and loan balance was RMB 000. The interest income was RMB 000 interest expense was RMB 000.
6. Accounts receivable from and payable to related parties
Accounts receivable from related parties for the Company
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Period-end||Period-begin||
|Item|Related party||Provision for bad||Provision for bad|
|||Book balance||Book balance||
||||debts||debts|
||Guangdong Guanhao|||||
|Accounts receivable||427,618.60|0.00|548,407.00|0.00|
||High-tech Co., Ltd.|||||
||Guangdong|||||
||Chengtong Logistics|252,199.10|0.00|0.00|0.00|
||Co., Ltd.|||||
||Yueyang Antai|||||
|||105,302.10|0.00|105,302.10|0.00|
||industrial Co., Ltd.|||||
||Yueyang Forest &|||||
|||9,112.56|0.00|9,112.56|0.00|
||Paper Co., Ltd.|||||
||Foshan Huaxin|||||
||Import & Export Co.,|537,321.89|0.00|0.00|0.00|
||Ltd.|||||
||China National|||||
||Paper-industry|||||
|Prepayment||0.00|0.00|37,687,939.04|0.00|
||Investment|||||
||Corporation|||||
||Foshan Huaxin|||||
|||73,383.80|0.00|0.00|0.00|
||Import & Export Co.,|||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
||Ltd.|||||
||Guangdong|||||
||Chengtong logistics|2,865,572.35|0.00|0.00|0.00|
||Co., Ltd.|||||
||Tianjin Port Free|||||
||Trade Zone Zhongwu|||||
||Investment|0.00|0.00|10,846,922.22|0.00|
||Development Co.,|||||
||Ltd.|||||
||Guangdong|||||
|Other account receivable|Chengtong logistics|132,432.90|0.00|774,552.14|0.00|
||Co., Ltd.|||||
||Jiacheng Enterprise|||||
||Development Co.,|3,000,000.00|0.0|0.00|0.00|
||Ltd.|||||
||China National|||||
||Paper-industry|||||
|||94,575.18|0.00|94,575.18|0.00|
||Investment|||||
||Corporation|||||

Accounts payable to related parties for the Company
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|Related party|Closing amount|Opening amount|
||Foshan Huaxin Import &|||
|Accounts payable||284,700.00|0.00|
||Export Co., Ltd.|||
||China National Paper-industry|||
|||10,329,776.01|111,529.20|
||Investment Corporation|||
||Yuanjiang Paper Co., Ltd.|1,463,982.72|0.00|
||Tianjin Port Free Trade Zone|||
||Zhongwu Investment|17,854,083.29|0.00|
||Development Co., Ltd.|||
||Guangdong Guanhao|||
|||0.00|73,497.75|
||High-tech Co., Ltd.|||
||Foshan Huaxin Import &|||
|||0.00|755,289.22|
||Export Co., Ltd.|||
||Guangdong Guanhao|||
||High-tech Co., Ltd. Shanghai|0.00|4,452.00|
||Sub-branch|||
||Foshan Huaxin Development|||
|Other payable||1,100,000.00|0.00|
||Co., Ltd|||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
||Foshan Huaxin Import &|||
|||300,000.00|300,000.00|
||Export Co., Ltd.|||
||China National Paper-industry|||
|||162,188,890.00|173,750.00|
||Investment Corporation|||
|Non-current liabilities due within a|China Chengtong Holding|||
|||418,750,000.00||
|year|Group Co., Ltd.|||
||China Chengtong Holding|||
|Long-term payable|||418,750,000.00|
||Group Co., Ltd.|||
||Huaxin Development Co.,|||
|Interest payable||33,950.00||
||Ltd.|||
||China Chengtong Holding|||
|||5,949,166.69|16,501,666.70|
||Group Co., Ltd.|||

IX. Contingency
1. Contingent liabilities and its financial effect arising from unsettled litigation or arbitration
1. As at the year-end, Guangdong Regall Group Co., Ltd. (hereinafter referred to as “Regall Group”) owed a goods payment of RMB 9,919,562.58 to theCompany’s subsidiary Zhuhai S.E.Z Hongta Renheng Paper Co., Ltd. (hereinafter referred to as “Hongta Renheng”) (with an account age over three years). On 28 Mar. 2008, the said two parties signed an agreement on repayment with wood pulp. According to the said agreement, Regall Group should repay with wood pulp as the consideration, which should be executed before 15 May 2008. However, Regall Group has not accomplished the execution according to the said agreement. Up until 31 Oct. 2008, only RMB 3,099,200.00 had been executed as consideration for the debt. On 29 Oct. 2008, Hongta Renheng sent a Notice on Terminating Agreement to Regall Group, but Regall Group asked to continue the execution of the Agreement. On 6 Dec. 2008, Hongta Renheng submitted a bill of compliant on the goods payment dispute to Guangzhou HuangfuPeople’s Court, requesting the Court to terminate the agreement on repayment with wood pulp and asking Regall Group to repay the goods payment of RMB 10,047,398.58 and take the responsibilities thus caused. On 28 Jun. 2009, the Court issued the Civil Judgment Letter (2009) HMEC Zi No.72, deciding to declare theCompany’s Notice on Terminating Agreement legally null. Hongta Renheng appealed to Guangzhou IntermediatePeople’s Court against the decision and Guangzhou IntermediatePeople’s Court ruled that the case should be remanded for retrial in the Court of the first instance. On 12 Jun. 2010, the Court issued the Civil Judgment Letter (2010) HMEC Zi No.1, deciding to declare the Agreement on Set Debt off with Pulp Payment legal and effective. However, as Regall Groupwasn’t able to fulfill liability of supplying pulp, it should pay RMB 9,786, 596.96 back to Hongta Renheng. Regall Group appealed to Guangzhou IntermediatePeople’s Court against the decision. On 25 Nov. 2010, in accordance with the Civil Judgment Letter (2010) SZFMEZ Zi No. 1851, the Court rejected the appeal and maintained the original judgment. Up until the date of this Report, RMB 127,836.00 of executed account was received. Hongta Renheng has withdrawn100% bad debt provision for the said account receivable at full amount.
2. As at the year-end, Zhuhai Eastern Zhengtai Power Equipment Co., Ltd. owed a goods payment of RMB
2,925,825.54 to Hongta Renheng. In line with Civil Judgment (2010) XMEC Zi No.641, Hongta Renheng won the
appeal and Zhuhai East Zhengtai Power Equipment Co., Ltd. should pay loans of RMB 2,405,789.44 and its
penalty back to Hongta Renheng as a result. Zhuhai East Zhengtai Power Equipment Co., Ltd. filed an appeal
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. against the sentence. The court dismissed the appeal in the second trial and the decision was upheld on 12 Oct. 2010. As Zhuhai East Zhengtai Power Equipment Co., Ltd.hasn’t executed the verdict yet, Hongta Renheng has applied to the court for enforcement. Hongta Renheng withdrew90% bad debt provision for the said account receivable in 2010, yetdidn’t change the ratio of bad debt provision due to uncertainty of receiving goods payment.
3. Up until the year-end, Zhuhai Gongbei Ronghui Trade Co., Ltd. owed a goods payment of RMB 1,016,655.73 to Hongta Renheng. Hongta Renheng won the appeal at the first instance in accordance with the Civil Judgment Letter (2009) XMEC Zi No. 2174. Hongta Renheng withdrew90% bad debt provision for the said account receivable in 2010, but Zhuhai Gongbei Ronghui Trade Co., Ltd. has no properties to execute the judgment, so it continued to withdraw90% bad debt provision for the said account receivable at period-end.
4. As at the year-end, Shenzhen Xieji Industry Co., Ltd. owed a goods payment of RMB 3,760,350.10 to Hongta Renheng, in accordance with Civil Judgment Letter (2011) SZFMEZ Zi No. 1318, Hongta Renheng won the appeal. Hongta Renheng withdrew50% bad debt provision for the said account receivable in 2010. Up until the date of this Report, Hongta Renheng was preparing to appeal to the Court for executing the judgment, so it continued to withdraw50% bad debt provision for the said account receivable.
5. As at the year-end, Qingdao Donglu Packing Development Co., Ltd. owed a goods payment of RMB 450,000.00 to Hongta Renheng. Hongta Renheng won the appeal at the first instance in accordance with the Civil Judgment Letter (2010) NSC Zi No. 20678. And Hongta Renheng has withdrawn50% bad debt provision for the said account receivable.
6. As at the year-end, Foshan Jiahe Paper Trading Co., Ltd. owed a goods payment of RMB 4,902,239.70 to Hongta Renheng. Hongta Renheng won the appeal at the first instance in accordance with the Civil Judgment Letter (2011) FCFMEC Zi No. 852. Hongta Renheng withdrew50% bad debt provision for the said account receivable in 2010. Up until the balance sheet date, there were no properties to execute the judgment, so it withdrew100% bad debt provision for the said account receivable at period-end.
7. Until the end of the period, Foshan Chengtong Paper Co., Ltd has prosecuted its customer, Jiangsu Wangda Paper Package Co., Ltd and DongguanHong’an Paper Package Co., Ltd, for malicious delinquent payment on 24 June, 2013 and 5 July, 2013 respectively. At present the lawsuits are filed for property preservation. Until 31 Dec. 2013, payment balances receivable involved in the lawsuits should be RMB 11,479,500.49 and withdrawn bad-debt provision was RMB 968,655.27. Net value receivable should be RMB 10,510,845.22, thereinto: payment for goods of RMB 1,800,669.21 from Jiangsu Wangda Paper Package Co., Ltd, with 1-2 years age schedule, RMB 180,066.92 for withdrawn bad-debt provision and RMB 1,620,602.29 for net value receivable; payment for goods of RMB 9,678,831.28 from DongguanHong’an Paper Package Co., Ltd with RMB 788,588.35 of withdrawn bad-debt provision and RMB 8,890,242.93 for net value receivable; thereinto: payments of RMB 3,585,895.58 with 4-12 months age schedule, RMB 483,941.56 for withdrawn bad-debt provision and RMB 3,406,600.80 for net value receivable; payments of RMB 6,092,935.70 with 1-2 years age schedule, RMB 609,293.57 for
withdrawn bad-debt provision and RMB 5,483,642.13 for net value receivable. Until 31 Dec. 2013, cases of DongguanHong’an and Jiangsu Wangda have been decided by ChanchengPeople’s Court that the prosecution, Foshan Chengtong Paper Co., Ltd, won the lawsuit and supported all claims from Foshan Chengtong Paper Co., Ltd (all payment for goods, liquidated damages, court costs, and property preservation costs for RMB 12,716,900 together; DongguanHong’an and Jiangsu Wangda shall undertake all liabilities for satisfaction). At present, the judgment is publicly announced and waits for execution. At present goods attached was entered the auction phase.
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. X. Events after the Balance Sheet Date
1. Notes of significant events after the Balance Sheet Date
Unit：RMB Yuan
|||||
|-|-|-|-|
||Content|Impact on the financial position|Reasons of inestimable|
|Item||||
|||and operating results|influence|

2. Explanation on profit distribution after the balance sheet date
Unit：RMB Yuan 3. Explanation on other events after the balance sheet date
According to the approval of the 11 Meetings of the
5th
Session of the Board of Directors, at the end of 2013, the Company and Foshan Chancheng Land Reserve Center signed the Protocol of Foshan Chancheng State Owned Land Use Rights Reserve (FCTBXZ No.（2013)9) (hereinafter referred to as Protocol), which incorporated the use right of state owned land next to the west of Gangkou Road No. 13 into Chancheng State land reserve (hereinafter referred to as the transaction). According to the agreement and the assessment price of the land, RMB 191,419,000; Profitsdeserved= transfer income (assessment price temporarily)×（1-15% tax and relevant specialfunds）×（30%+20%）the Company could receive earnings of RMB 81,350,000. After transferring land use certificate and the land, the Company would receive the compensation of RMB 40,680,000 for the first stage before December 31, 2013. The Company had recognized the profits of the transaction ( profits after deducting cost was RMB 50,221,200, profits after deducting income tax was RMB 37,665,900 the residual payment has not been charged. According to public information online, the parcel of land had already been completed transfer auction, the auction amount of clinching a deal was higher than the assessment price of land purchase and storage, the company was expected to charge surplus funds higher than the estimated amount. About this transaction background and the related progress, please refer to the announcementsNo.2013-077，2013-078，2013-080，2014-001，2014-035 disclosed on Securities Times, Ta Kung Pao and cninfo.com.cn,
XI. Notes of other significant events
1. Lists of all kinds of renting out assets
||||
|-|-|-|
|Category of operating category|Closing book value|Book value atyear-begin|
|Building|12,935,269.22|16,380,804.64|
|Total|12,935,269.22|16,380,804.64|

2. Assets and liabilities measured at fair value
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Gain/loss from|Accumulative|Impairment||
|Item|Opening balance|change in fair value|change in fair value|provision for this|Closing balance|
|||in this year|recorded into equity|year||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Financial assets|||
|3. Financial assets|||
||4,862,620.84|4,222,090.08|
|available for sale|||
|Subtotal of financial|||
||4,862,620.84|4,222,090.08|
|assets|||
|Total of the above|||
||4,862,620.84|4,222,090.08|
|mentioned|||
|Financial liabilities|0.00|0.00|

3．Financial assets and liabilities of foreign currency
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Gain/loss from|Accumulative|Impairment||
|Item|Opening balance|change in fair value|change in fair value|provision for this|Closing balance|
|||in this year|recorded into equity|year||
|Financial assets||||||
|3. Financial assets||||||
||74,964,330.06||||76,658,106.59|
|available for sale||||||
|Subtotal of financial||||||
||74,964,330.06||||76,658,106.59|
|assets||||||
|Total of the above||||||
||91,453,500.00||||605,484,285.93|
|mentioned||||||

XII. Notes of main items in the financial statements of the Company
1. Accounts receivable
(1) Accounts receivable
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing balance||||Opening balance||||
||Book balance||Provision for bad debts||Book balance||Provision for bad debts||
|Category|||||||||
|||Propo||Proportion (%)|||||
|||||||Proporti||Proporti|
||Amount|rtion|Amount||Amount||Amount||
|||||||on (%)||on (%)|
|||(%)|||||||
|Accounts receivable for which bad debt provisions are made on the group basis|||||||||
|Group 1-Unit group|||||||||
|included into the||100.0||||100.00|||
||16,464,948.05||||51,991.20||||
|consolidated financial||0%||||%|||
|statements|||||||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|||100.00%|||100.00%||
|Subtotal of the group|16,464,948.05|||51,991.20|||
|Total|16,464,948.05|--|--|51,991.20|--|--|

 Notes to category of accounts receivable:
Accounts receivable with significant single amount and individually withdrawn bad debt provision at period-end
□ Applicable√Inapplicable
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
□ Applicable√Inapplicable
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□Applicable√Inapplicable
(2) Information of the top five accounts receivable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Relationship with the|Amount||Proportion in the total|
|Name of entity|||Period||
||Company|||accounts receivable (%)|
|Tetra Pak (Foshan) Co.,|||||
||Non-related party|9,089,548.79|Within 3 months|55.00%|
|Ltd.|||||
|Tetra Pak (Beijing ) Co.,|||||
||Non-related party|4,077,869.68|Within 3 months|25.00%|
|Ltd.|||||
|Tetra Pak (Kunshan) Co.,|||||
||Non-related party|2,202,729.27|Within 3 months|13.00%|
|Ltd.|||||
|Tetra Pak (Hohhot) Co.,|||||
||Non-related party|1,094,800.31|Within 3 months|7.00%|
|Ltd.|||||
|Total|--|16,464,948.05|--|100.00%|

 2. Other receivables
(1) Other accounts receivable disclosed by categories:
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing balance||||Opening balance||||
||||||||Provision for bad||
||Book balance||Provision for bad debts||Book balance||||
||||||||debts||
|Category|||||||||
||P|ropo||Propo||Propo||Propo|
||Amount r|tion|Amount|rtion|Amount|rtion|Amount|rtion|
|||(%)||(%)||(%)||(%)|
|Other accounts receivable that provisions for bad debts by group|||||||||
|Group1: Consolidated entity|1,614,518,674.17|97.53|||1,648,679,453.73|97.59|||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|||%|||%||
|Group2: Aging analysis|||||||
||40,857,790.39|2.47%||40,699,614.00|2.41%||
|method|||||||
|||100.0|||100.0||
|Subtotal of the group|1,655,376,464.56|||1,689,379,067.73|||
|||0%|||0%||
|Total|1,655,376,464.56|--|--|1,689,379,067.73|--|--|

 Explanation on categories of other accounts receivable
Other accounts receivable with insignificant single amount but independently withdrawn bad debts provision at period-end
□ Applicable√ Inapplicable
In the group, other accounts receivable withdrawn bad debt provision by adopting aging analysis
□ Applicable√ Inapplicable
In the group, the other accounts receivable using balance percentage method for withdrawing provisions for bad debt:
□ Applicable√ Inapplicable
In the group, the accounts receivable were using other methods for withdrawing provisions for bad debt:
□ Applicable√ Inapplicable
Other accounts receivable with insignificant single amount but independently withdrawn bad debts provision:
□ Applicable√ Inapplicable
(2) Top five other accounts receivable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||||Proportion in total|
||Relationship with the||||
|Name of entity||Amount|Period|amount of other accounts|
||Company||||
|||||receivable (%)|
|Zhuhai S.E.Z. Hongta|||||
||Subsidiary|899,678,000.00|Within 1 year|54.35%|
|Renheng Paper Co., Ltd.|||||
|Foshan Chengtong Paper|||||
||Subsidiary|497,700,216.66|Within 1 year|30.07%|
|Co., Ltd.|||||
|Huaxin (Foshan) Color|||||
||Subsidiary|141,012,790.85|Within 1 year|8.52%|
|Printing Co., Ltd.|||||
|Zhuhai Huafeng Paper|||||
||Subsidiary|76,127,666.66|Within 1 year|4.60%|
|Co., Ltd.|||||
|Foshan Chancheng Land|||||
||Non-related party|40,670,000.00|Within 1 year|2.46%|
|Reserve Center|||||
|Total|--|1,655,188,674.17|--|100.00%|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. (3) Other account receivable due from related parties
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Proportion in the total amount of|
|Name of entity|Relationship with the Company|Amount||
||||other accounts receivable (%)|
|Zhuhai S.E.Z. HongtaRenheng Paper Co., Ltd.||||
||Subsidiary|899,678,000.00|54.35%|
|Foshan Chengtong Paper Co.,Ltd.||||
||Subsidiary|497,700,216.66|30.07%|
|Huaxin (Foshan) ColorPrinting Co., Ltd.||||
||Subsidiary|141,012,790.85|8.52%|
|Zhuhai Huafeng Paper Co.,Ltd.||||
||Subsidiary|76,127,666.66|4.60%|
|Total|--|1,614,518,674.17|97.54%|

 3. Long-term equity investment
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||Openingbalance|||Shareholding||Explanati||||
|||||||||on for||||
|||||||||indifferen||||
|||||||||||Withdraw||
|||||||||ces||||
|||||||||||n||
||||||||Voting|between|||Cash|
|||||||||||impairme||
||Accounti|Initial|||||percentag|the share|Impairme||bonus in|
|||||Increase/d|Closing|percentag||||nt||
|Investee|ng|investmen|||||e in|holding|nt||the|
|||||ecrease|balance|e in||||provision||
||method|t cost|||||investee|percentag|provision||reporting|
|||||||investee(%)||||in the||
||||||||(%)|e and|||period|
|||||||||||reporting||
|||||||||voting||||
|||||||||||period||
|||||||||percentag||||
|||||||||e in||||
|||||||||investee||||
|Huaxin||||||100.00%||||||
|(Foshan)||||||||||||
||Cost|122,536,7|122,536,7||122,536,7|||||||
|Color|||||||100.00%|||||
||method|45.03|45.03||45.03|||||||
|Printing||||||||||||
|Co., Ltd.||||||||||||
|Foshan||||||75.00%||||||
|Chengton|Cost|225,000,0|225,000,0||225,000,0|||||||
||||||||75.00%|||||
|g Paper|method|00.00|00.00||00.00|||||||
|Co., Ltd.||||||||||||
|Zhuhai|Cost|927,570,6|927,570,6||927,570,6|41.97%|41.97%|||||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|S.E.Z.|method|97.11|97.11||97.11||||
|Hongta|||||||||
|Renheng|||||||||
|Paper|||||||||
|Co., Ltd.|||||||||
|Kunshan|||||||||
|Focai|||||||||
||Cost|5,000,000|5,000,000||5,000,000||||
|Package||||||100.00%|100.00%||
||method|.00|.00||.00||||
|Printing|||||||||
|Co., Ltd.|||||||||
|Huaxin|||||||||
|(Foshan)|||||||||
||Cost|231,450,2||231,450,2|231,450,2||||
|Color|||0.00|||20.00%|20.00%||
||method|00.00||00.00|00.00||||
|Printing|||||||||
|Co., Ltd.|||||||||
|||1,511,557|1,280,107|231,450,2|1,511,557||||
|Total|--|||||--|--|--|
|||,642.14|,442.14|00.00|,642.14||||

Note:
4. Revenue and Cost of Sales
(1) Revenue of Sales
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Revenue from main business|83,633,235.69|24,400,882.34|
|Revenue from other business|35,087,719.30|35,087,639.30|
|Total|118,720,954.99|59,488,521.64|
|Cost of sales|83,677,672.61|24,400,882.34|

 (2) Main business (classified by industry)
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Reporting period||Same period of last year||
|Name of industry|||||
||Revenue of sales|Cost of sales|Revenue of sales|Cost of sales|
|Industry|83,633,235.69|83,677,672.61|24,400,882.34|24,400,882.34|
|Total|83,633,235.69|83,677,672.61|24,400,882.34|24,400,882.34|

(3) Main business (classified by products)
Unit: RMB Yuan
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
||Reporting period||Same period of last year||
|Name of product|||||
||Revenue of sales|Cost of sales|Revenue of sales|Cost of sales|
|Liquid packaging paper|83,633,235.69|83,677,672.61|24,400,882.34|24,400,882.34|
|Total|83,633,235.69|83,677,672.61|24,400,882.34|24,400,882.34|

 (4) Main business (classified by area)
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Reporting period||Same period of last year||
|Name of area|||||
||Revenue of sales|Cost of sales|Revenue of sales|Cost of sales|
|Domestic sales|83,633,235.69|83,677,672.61|24,400,882.34|24,400,882.34|
|Total|83,633,235.69|83,677,672.61|24,400,882.34|24,400,882.34|

 (5) Revenue of sales of the top five customers
Unit: RMB Yuan
||||
|-|-|-|
|||Proportion in total|
|Name of customer|Total amount of revenue of sales|amount of revenue of|
|||sales (%)|
|Top five customers|83,633,235.69|100.00%|
|Total|83,633,235.69|100.00%|

 Note:
5. Investment income
(1) List of investment income
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|

 6. Supplemental information of Cash Flow Statement
Unit: RMB Yuan
||||
|-|-|-|
|Supplemental information|Reporting period|Same period of last year|
|1. Reconciliation of net profit to net cash flows generated from|||
||--|--|
|operations：|||
|Net profit|27,795,479.70|26,376,123.90|
|Depreciation of fixed assets, oil and gas assets and productive|||
||193,576.21|164,767.66|
|biological assets|||

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Amortization of intangible assets|45,098.94|39,443.31|
|Financial cost (income: negative)|36,954,591.43|-8,722,297.23|
|Decrease in accounts receivable from operating activities (increase:|||
||17,589,226.32|-34,961,261.20|
|negative)|||
|Increase in accounts payable from operating activities (decrease:|||
||5,125,679.40|-28,843,296.91|
|negative)|||
|Net cash flows generated from operating activities|87,703,652.00|-45,946,520.47|
|2. Significant investing and financing activities without|||
||--|--|
|involvement of cash receipts and payments|||
|3. Change of cash and cash equivalent:|--|--|
|Closing balance of cash|9,950,989.37|6,037,914.32|
|Less: opening balance of cash|45,291,203.37|225,554,664.36|
|The net increase in cash and cash equivalents|-35,340,214.00|-219,516,750.04|

 XIII. Supplemental information
1. List of the current non-recurring gains and losses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount|Note|
|Loss and gains on disposal of non-current assets (Including|||
||1,148,513.57||
|write-off part of the provision for asset impairment)|||
|Governmental subsidy included in the current profits and losses(is|||
|closely related with the business event, except for the|||
||1,140,739.36||
|governmental subsidy that according to the national unity|||
|standard quota or the quantitative regal assets)|||
|Income and expenses of the other operation except for the|||
||448,861.39||
|mentioned above|||
|Less: the effect of income tax|376,965.14||
|The effect of minority interest (after tax)|710,564.69||
|Total|1,650,584.49|--|

The governmental subsidy included in the current profits and losses was the recurring gains and losses that need to disclose the recognize reason term by term.
□ Applicable√ Inapplicable
Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. 2. Return on equity and earnings per share
Unit: RMB Yuan
|||||
|-|-|-|-|
||The weighted average ROE|EPS||
|Profit in the reporting period||||
||(%)|Basic EPS|Diluted EPS|
|Net profit attributable to the Company's||||
||1.44%|0.050|0.050|
|common stock shareholders||||
|Net profit attributable to shareholders of the||||
|Company's common stock after deducting|1.35%|0.047|0.047|
|non-recurring gains and losses||||

3. Particulars on the abnormal conditions of main items in the financial statements of the Company and relevant reasons
||||||
|-|-|-|-|-|
|Items|Closing balance (oramount in reportingperiod)|Opening balance (oramount in same period oflast year)|Rate of change|Reason for change|
|Monetary capital|350,085,396.28|201,666,231.22|73.60%|Guarantee amount increasein the reporting period|
|Notes receivable|529,451,218.84|362,998,502.84|45.85%|Note settlement amountincreased|
|Other receivables|107,106,420.86|66,085,747.47|62.07%|The collection of FoshanChengtong workerplacement fees|
|Inventory|1,025,805,158.42|780,502,680.31|31.43%|The purchase of rawmaterials increased|
|Long-term equityinvestment|239,451,242.34|7,720,552.20|3001.48%|The long-term equityinvestment newly increased|
|Construction in process|207,078,445.87|113,869,930.02|81.86%|The project numberincreased and the originalproject continue to pushforward|
|Short-term borrowing|1,125,415,771.34|746,518,360.93|50.76%|New bank loans in reportingperiod|
|Notes payable|115,148,852.94|7,208,770.58|1497.34%|Note settlemwnt increased|
|Accounts payable|498,993,807.44|305,340,312.40|63.42%|Business fluctuations|
|Customer in advance|25,352,724.73|41,644,176.60|-39.12%|Business fluctuations|
|Tax payable|-39,466,596.00|20,193,255.40|-295.44%|The input tax increased|
|Interest payable|45,533,873.33|28,765,634.67|58.29%|Loan principal increased|
|Other payable|213,528,970.67|25,645,628.13|732.61%|Purchase of long-termequity investment finalpayment|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|Business tax and surcharges|6,601,621.25|12,621,865.34|-47.70%|The VAT payable decreased|
|Income from investment|280,490.14|148,251.90|89.20%|Change in equityinvestment income|
|Operating profit|67,486,634.87|15,188,380.00|344.33%|Gross margin increased andcomprehensively effectedby all the expenses feltcomparing to that in lastyear|

Semi-Annual Report 2014 of Foshan Huaxin Packaging Co., Ltd. Section X. Documents Available for Reference
The investors and relevant departments can access to the materials in the Office of the Board of Directors of the Company as follows:
1. Financial statements with the signatures and seals of the legal representative, principal of accounting work, and manager of finance department;
2. Texts of all theCompany’s documents ever disclosed on http://www. cninfo.com.cn in the reporting period, and the originals of the public notices.
The Board of Directors of Foshan Huaxin Packaging Co., Ltd. Chairman: Tong Laiming
29 August 2014