FOSHAN HUAXIN PACKAGING CO., LTD.
Audit Report
DHSZ[2016]No. 002579
Da Hua Certified PublicAccountants（Special GeneralPartnership）
I.Audit Report
DHSZ[2016]No. 002579 TO THE SHAREHOLDERS OF FOSHAN HUAXIN PACKAGING CO., LTD.:
We have audited the attached financial statements of Foshan Huaxin Packaging Co., Ltd. (hereinafter referred to as “Huaxin Packaging”) which comprise the balance sheet and the consolidated balance sheet as at 31 Dec. 2015, the income statement and consolidated income statement, the cash flow statement and consolidated cash flow statement, the statement of changes inshareholders’ equity and consolidated statement of changes inshareholders’ equity as well as the notes to the financial statements.
I.Management’s responsibility for the financial statements
The management of the Company is responsible for the preparation of these financial statements and fair presentation. These responsibilities include: (1) preparing financial statements according to the Accounting Standards for Business Enterprises and make them a fair presentation; and (2) designing, implementing and maintaining internal control relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
II.Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We have conducted our audit in accordance with the Audit Standards for Chinese Registered Accountants, which require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on theauditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risks assessments, the auditor considers the internal control related to the preparation and fair presentation of the financial statements so as to design proper audit procedures An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate, which provides a basis for us to express auditing opinion.
III. Audit opinion
In our opinion, the financial statements of the Company have been prepared, in all material aspects, according to the Enterprise Accounting Standards, which give a fair view of theCompany’s financial position as at 31 Dec. 2015 and theCompany’s operating results and cash flows for the year then ended.
Dahua CPA (LLP) CPA:YanZhang
China·Beijing
CPA:JiliangLiu
18 Mar. 2016 II. Financial statements
Unit of statements in financial notes is: RMB Yuan
1. Consolidated balance sheet
Name of enterprise: Foshan Huaxin Packaging Co., Ltd.
31 Dec. 2015
Unit: RMB Yuan
||||
|-|-|-|
|Item|31 Dec. 2015|31 Dec. 2014|
|Current Assets:|||
|Monetary funds|509,706,611.07|474,549,403.56|
|Settlement reserves|||
|Intra-group lendings|||
|Financial assets measured at fair|||
|value of which changes are recorded in|1,741,500.00||
|current profits and losses|||
|Derivative financial assets|||
|Notes receivable|265,679,151.34|345,827,854.88|
|Accounts receivable|791,325,305.79|837,978,587.68|
|Accounts paid in advance|116,290,696.98|181,932,527.24|
|Premiums receivable|||
|Reinsurance premiums receivable|||
|Receivable reinsurance contract|||
|reserves|||
|Interest receivable|5,233,556.60||
|Dividend receivable|||

||||
|-|-|-|
|Other accounts receivable|143,862,308.16|106,548,714.08|
|Financial assets purchased under|||
|agreements to resell|||
|Inventories|712,880,811.93|942,156,138.62|
|Assets held for sale|||
|Non-current assets due within 1 year|||
|Other current assets|17,147,074.25|8,212,679.56|
|Total current assets|2,563,867,016.12|2,897,205,905.62|
|Non-current assets:|||
|Loans by mandate and advances|||
|granted|||
|Available-for-sale financial assets|288,700.00|113,558.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|490,240,600.41||
|Long-term equity investment|262,089,226.45|246,747,332.67|
|Investing real estate|11,945,127.02|12,605,907.08|
|Fixed assets|2,539,372,551.91|2,926,710,908.66|
|Construction in progress|28,305,202.78|154,209,661.31|
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|108,048,541.44|129,264,164.34|
|R&D expense||12,556,242.88|
|Goodwill|11,547,305.29|11,547,305.29|
|Long-term deferred expenses|2,903,771.31|510,136.71|
|Deferred income tax assets|33,209,638.28|35,246,535.27|
|Other non-current assets|7,519,746.40|7,409,367.68|
|Total of non-current assets|3,495,470,411.29|3,536,921,119.89|
|Total assets|6,059,337,427.41|6,434,127,025.51|
|Current liabilities:|||
|Short-term borrowings|912,724,440.16|1,130,267,087.23|
|Borrowings from Central Bank|||
|Customer bank deposits and due to|||
|banks and other financial institutions|||

||||
|-|-|-|
|Intra-group borrowings|||
|Financial liabilities measured at fair|||
|value of which changes are recorded in|212,689.24||
|current profits and losses|||
|Derivative financial liabilities|||
|Notes payable|127,562,392.61|68,436,123.39|
|Accounts payable|365,555,758.89|442,828,366.71|
|Accounts received in advance|9,817,369.72|23,232,010.74|
|Financial assets sold for repurchase|||
|Handling charges and commissions|||
|payable|||
|Payroll payable|33,391,126.62|32,322,152.63|
|Tax payable|37,570,856.48|22,020,173.90|
|Interest payable|10,684,484.26|29,816,504.46|
|Dividend payable|11,019,644.79|170,913.00|
|Other accounts payable|24,761,471.30|21,260,151.32|
|Reinsurance premiums payable|||
|Insurance contract reserves|||
|Payables for acting trading of|||
|securities|||
|Payables for acting underwriting of|||
|securities|||
|Liabilities held for sale|||
|Non-current liabilities due within 1|||
|||418,750,000.00|
|year|||
|Other current liabilities|||
|Total current liabilities|1,533,300,234.07|2,189,103,483.38|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|995,587,962.29|794,912,384.37|
|Of which: preferred shares|||
|Perpetual bonds|||
|Long-term payables|7,630,748.49|10,506,735.99|
|Long-term payroll payables|||
|Specific payables|||
|Estimated liabilities|1,758,780.68|7,431,237.75|

||||
|-|-|-|
|Deferred income|9,200,905.88|6,648,333.32|
|Deferred income tax liabilities|2,875,132.08|2,805,584.00|
|Other non-current liabilities|||
|Total non-current liabilities|1,017,053,529.42|822,304,275.43|
|Total liabilities|2,550,353,763.49|3,011,407,758.81|
|Owners’ equity:|||
|Share capital|505,425,000.00|505,425,000.00|
|Other equity instruments|||
|Of which: preferred shares|||
|Perpetual bonds|||
|Capital reserves|256,822,373.42|256,822,373.42|
|Less: Treasury stock|||
|Other comprehensive income|169,714.39|169,714.39|
|Specific reserves|||
|Surplus reserves|187,280,095.40|187,280,095.40|
|Provisions for general risks|||
|Retained profits|988,580,048.92|863,066,727.26|
|Total equity attributable to owners of|||
||1,938,277,232.13|1,812,763,910.47|
|the Company|||
|Minority interests|1,570,706,431.79|1,609,955,356.23|
|Total owners’ equity|3,508,983,663.92|3,422,719,266.70|
|Total liabilities and owners’ equity|6,059,337,427.41|6,434,127,025.51|

 Legal representative: Huang Xin Person-in-charge of the accounting work: Ji Xiangdong Person-in-charge of accounting firm: Yang Yinghui
2. Balance sheet of the parent company
Unit: RMB Yuan
||||
|-|-|-|
|Item|31 Dec. 2015|31 Dec. 2014|
|Current Assets:|||
|Monetary funds|68,234,826.12|10,063,979.96|
|Financial assets measured at fair|||
|value of which changes are recorded in|||
|current profits and losses|||
|Derivative financial assets|||
|Notes receivable|||

||||
|-|-|-|
|Accounts receivable|12,775,461.68|42,393,540.95|
|Accounts paid in advance|141,509.43||
|Interest receivable|||
|Dividend receivable|||
|Other accounts receivable|964,414,178.70|1,437,567,917.18|
|Inventories|||
|Assets held for sale|||
|Non-current assets due within 1 year|||
|Other current assets|1,432,574.60||
|Total current assets|1,046,998,550.53|1,490,025,438.09|
|Non-current assets:|||
|Available-for-sale financial assets|288,700.00||
|Held-to-maturity investments|||
|Long-term accounts receivable|490,240,600.41||
|Long-term equity investment|1,312,361,239.94|1,518,626,016.33|
|Investing real estate|||
|Fixed assets|380,975.78|269,949.29|
|Construction in progress|||
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|433,782.13|523,980.01|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|||
|Other non-current assets|||
|Total of non-current assets|1,803,705,298.26|1,519,419,945.63|
|Total assets|2,850,703,848.79|3,009,445,383.72|
|Current liabilities:|||
|Short-term borrowings|100,000,000.00||
|Financial liabilities measured at fair|||
|value of which changes are recorded in|||
|current profits and losses|||

||||
|-|-|-|
|Derivative financial liabilities|||
|Notes payable|45,000,000.00||
|Accounts payable|12,775,461.68|42,393,540.96|
|Accounts received in advance|||
|Payroll payable|||
|Tax payable|142,128.32|1,176,814.16|
|Interest payable|9,179,970.44|22,709,722.31|
|Dividend payable|179,458.65|170,913.00|
|Other accounts payable|5,003,595.00|1,265,692.77|
|Liabilities held for sale|||
|Non-current liabilities due within 1|||
|||418,750,000.00|
|year|||
|Other current liabilities|||
|Total current liabilities|172,280,614.09|486,466,683.20|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|995,587,962.29|794,912,384.37|
|Of which: preferred shares|||
|Perpetual bonds|||
|Long-term payables|||
|Long-term payroll payables|||
|Specific payables|||
|Estimated liabilities|||
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|995,587,962.29|794,912,384.37|
|Total liabilities|1,167,868,576.38|1,281,379,067.57|
|Owners’ equity:|||
|Share capital|505,425,000.00|505,425,000.00|
|Other equity instruments|||
|Of which: preferred shares|||
|Perpetual bonds|||
|Capital reserves|250,531,482.00|250,531,482.00|

||||
|-|-|-|
|Less: Treasury stock|||
|Other comprehensive income|||
|Specific reserves|||
|Surplus reserves|187,280,095.40|187,280,095.40|
|Retained profits|739,598,695.01|784,829,738.75|
|Total owners’ equity|1,682,835,272.41|1,728,066,316.15|
|Total liabilities and owners’ equity|2,850,703,848.79|3,009,445,383.72|

 3. Consolidated income statement
Unit: RMB Yuan
||||
|-|-|-|
|Item|2015|2014|
|I. Total operating revenues|3,282,043,995.12|3,552,698,716.17|
|Including: Sales income|3,282,043,995.12|3,552,698,716.17|
|Interest income|||
|Premium income|||
|Handling charge and commission|||
|income|||
|II. Total operating costs|3,240,504,576.79|3,410,828,486.83|
|Including: Cost of sales|2,733,163,536.13|2,970,740,412.17|
|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|16,325,153.64|14,596,194.98|
|Selling and distribution expenses|172,400,338.43|164,537,468.45|
|Administrative expenses|158,119,192.47|140,664,702.02|
|Financial expenses|133,872,055.72|126,985,102.16|
|Asset impairment loss|26,624,300.40|-6,695,392.95|
|Add: Gain/(loss) from change in fair|||
||1,528,810.76||
|value (“-” means loss)|||

||||
|-|-|-|
|Gain/(loss) from investment (“-”|||
||121,166,566.33|12,486,831.40|
|means loss)|||
|Including: share of profits in|||
||15,711,019.67|7,690,138.47|
|associates and joint ventures|||
|Foreign exchange gains (“-” means|||
|loss)|||
|III. Business profit (“-” means loss)|164,234,795.42|154,357,060.74|
|Add: non-operating income|23,729,196.71|43,948,392.57|
|Including: Gains on disposal of|||
||2,265,238.32|25,556,368.05|
|non-current assets|||
|Less: non-operating expense|1,263,680.97|1,329,662.94|
|Including: Losses on disposal of|||
||955,586.75|1,009,714.83|
|non-current assets|||
|IV. Total profit (“-” means loss)|186,700,311.16|196,975,790.37|
|Less: Income tax expense|15,784,568.82|47,717,250.82|
|V. Net profit (“-” means loss)|170,915,742.34|149,258,539.55|
|Net profit attributable to owners of|||
||133,094,696.66|83,284,859.23|
|the Company|||
|Minority shareholders’ income|37,821,045.68|65,973,680.32|
|VI. After-tax net amount of other|||
|||-1,632,644.73|
|comprehensive incomes|||
|After-tax net amount of other|||
|comprehensive incomes attributable to||-457,927.44|
|owners of the Company|||
|(I) Other comprehensive incomes|||
|that will not be reclassified into gains and|||
|losses|||
|1. Changes in net liabilities or|||
|assets with a defined benefit plan upon|||
|re-measurement|||
|2. Enjoyable shares in other|||
|comprehensive incomes in investees that|||
|cannot be reclassified into gains and|||
|losses under the equity method|||
|(II) Other comprehensive incomes|||
|that will be reclassified into gains and||-457,927.44|
|losses|||
|1. Enjoyable shares in other|||
|||-457,927.44|
|comprehensive incomes in investees that|||

||||
|-|-|-|
|will be reclassified into gains and losses|||
|under the equity method|||
|2. Gains and losses on fair|||
|value changes of available-for-sale|||
|financial assets|||
|3. Gains and losses on|||
|reclassifying held-to-maturity|||
|investments into available-for-sale|||
|financial assets|||
|4. Effective hedging gains and|||
|losses on cash flows|||
|5. Foreign-currency financial|||
|statement translation difference|||
|6. Other|||
|After-tax net amount of other|||
|comprehensive incomes attributable to||-1,174,717.29|
|minority shareholders|||
|VII. Total comprehensive incomes|170,915,742.34|147,625,894.82|
|Attributable to owners of the|||
||133,094,696.66|82,826,931.79|
|Company|||
|Attributable to minority|||
||37,821,045.68|64,798,963.03|
|shareholders|||
|VIII. Earnings per share|||
|(I) Basic earnings per share|0.26|0.16|
|(II) Diluted earnings per share|0.26|0.16|

 Where business mergers under the same control occurred in this reporting period, the net profit achieved by the merged parties before the business mergers was RMB XXX, with the corresponding amount for the last period being RMB XXX.
Legal representative: Huang Xin Person-in-charge of the accounting work: Ji Xiangdong Person-in-charge of accounting firm: Yang Yinghui
4. Income statement of the Company
Unit: RMB Yuan
||||
|-|-|-|
|Item|2015|2014|
|I. Total sales|255,247,489.31|288,258,240.65|
|Less: cost of sales|255,247,489.31|218,075,280.68|
|Business taxes and surcharges|208,990.35|4,186,523.39|

||||
|-|-|-|
|Distribution expenses|||
|Administrative expenses|10,678,245.22|9,699,461.03|
|Financial costs|-11,234,310.55|-17,690,231.39|
|Impairment loss|||
|Add: gain/(loss) from change in fair|||
|value (“-” means loss)|||
|Gain/(loss) from investment (“-”|||
||-39,467,993.33|7,068,374.19|
|means loss)|||
|Including: income form investment|||
||15,735,223.61|7,068,374.19|
|on associates and joint ventures|||
|II. Business profit (“-” means loss)|-39,120,918.35|81,055,581.13|
|Add: non-operating income|1,473,110.14|23,852,512.83|
|Including: Gains on disposal of|||
||1,108,861.40|23,837,376.07|
|non-current assets|||
|Less: non-operating expense|1,860.53|870.00|
|Including: Losses on disposal of|||
|non-current assets|||
|III. Total profit (“-” means loss)|-37,649,668.74|104,907,223.96|
|Less: Income tax expense||24,507,617.94|
|IV. Net profit (“-” means loss)|-37,649,668.74|80,399,606.02|
|V. After-tax net amount of other|||
|comprehensive incomes|||
|(I) Other comprehensive incomes that|||
|will not be reclassified into gains and|||
|losses|||
|1. Changes in net liabilities or|||
|assets with a defined benefit plan upon|||
|re-measurement|||
|2. Enjoyable shares in other|||
|comprehensive incomes in investees|||
|that cannot be reclassified into gains|||
|and losses under the equity method|||
|(II) Other comprehensive incomes|||
|that will be reclassified into gains and|||
|losses|||
|1. Enjoyable shares in other|||
|comprehensive incomes in investees|||
|that will be reclassified into gains and|||

||||
|-|-|-|
|losses under the equity method|||
|2. Gains and losses on fair value|||
|changes of available-for-sale financial|||
|assets|||
|3. Gains and losses on|||
|reclassifying held-to-maturity|||
|investments into available-for-sale|||
|financial assets|||
|4. Effective hedging gains and|||
|losses on cash flows|||
|5. Foreign-currency financial|||
|statement translation difference|||
|6. Other|||
|VI. Total comprehensive incomes|-37,649,668.74|80,399,606.02|
|VII. Earnings per share|||
|(I) Basic earnings per share|||
|(II) Diluted earnings per share|||

5. Consolidated cash flow statement
Unit: RMB Yuan
||||
|-|-|-|
|Item|2015|2014|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||3,039,588,223.77|3,292,918,326.94|
|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 financial|||
|assets measured at fair value of which|||

||||
|-|-|-|
|changes are recorded into current gains|||
|and losses|||
|Cash received from interest, handling|||
|charges and commissions|||
|Net increase of intra-group|||
|borrowings|||
|Net increase of funds in repurchase|||
|business|||
|Tax refunds received|80,290.26|115,495.24|
|Other cash received relating to|||
||123,953,129.73|53,112,411.40|
|operating activities|||
|Subtotal of cash inflows from operating|||
||3,163,621,643.76|3,346,146,233.58|
|activities|||
|Cash paid for goods and services|1,989,083,751.81|2,378,278,547.25|
|Net increase of customer lendings|||
|and advances|||
|Net increase of funds deposited in the|||
|central bank and amount due from|||
|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|203,434,376.23|212,913,710.51|
|Various taxes paid|179,765,117.75|145,880,960.62|
|Other cash payment relating to|||
||177,847,068.21|129,182,685.22|
|operating activities|||
|Subtotal of cash outflows from|||
||2,550,130,314.00|2,866,255,903.60|
|operating activities|||
|Net cash flows from operating activities|613,491,329.76|479,890,329.98|
|II. Cash flows from investing activities:|||
|Cash received from withdrawal of|||
|||7,669,463.73|
|investments|||
|Cash received from return on|||
||370,307.68||
|investments|||
|Net cash received from disposal of|||
||68,780,908.16|1,934,517.23|
|fixed assets, intangible assets and other|||

||||
|-|-|-|
|long-term assets|||
|Net cash received from disposal of|||
||44,869,829.86||
|subsidiaries or other business units|||
|Other cash received relating to|||
||4,066,986.00||
|investing activities|||
|Subtotal of cash inflows from investing|||
||118,088,031.70|9,603,980.96|
|activities|||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long-term|56,315,072.57|171,488,456.29|
|assets|||
|Cash paid for investment||231,450,200.00|
|Net increase of pledged loans|||
|Net cash paid to acquire subsidiaries|||
|and other business units|||
|Other cash payments relating to|||
|investing activities|||
|Subtotal of cash outflows from|||
||56,315,072.57|402,938,656.29|
|investing activities|||
|Net cash flows from investing activities|61,772,959.13|-393,334,675.33|
|III. Cash Flows from Financing|||
|Activities:|||
|Cash received from capital|||
|contributions|||
|Including: Cash received from|||
|minority shareholder investments by|||
|subsidiaries|||
|Cash received from borrowings|2,177,214,602.70|2,526,205,000.37|
|Cash received from issuance of|||
|bonds|||
|Other cash received relating to|||
||37,554,493.73|3,000,000.00|
|financing activities|||
|Subtotal of cash inflows from financing|||
||2,214,769,096.43|2,529,205,000.37|
|activities|||
|Repayment of borrowings|2,648,801,607.88|2,218,884,556.85|
|Cash paid for interest expenses and|||
||174,086,048.88|121,870,769.48|
|distribution of dividends or profit|||
|Including: dividends or profit paid|||
||41,400,266.00||
|by subsidiaries to minority shareholders|||

||||
|-|-|-|
|Other cash payments relating to|||
|||361,300,780.56|
|financing activities|||
|Sub-total of cash outflows from|||
||2,822,887,656.76|2,702,056,106.89|
|financing activities|||
|Net cash flows from financing activities|-608,118,560.33|-172,851,106.52|
|IV. Effect of foreign exchange rate|||
||5,565,972.68|-704,711.69|
|changes on cash and cash equivalents|||
|V. Net increase in cash and cash|||
||72,711,701.24|-87,000,163.56|
|equivalents|||
|Add: Opening balance of cash and|||
||113,248,623.00|200,248,786.56|
|cash equivalents|||
|VI. Closing balance of cash and cash|||
||185,960,324.24|113,248,623.00|
|equivalents|||

6. Cash flow statement of the Company
Unit: RMB Yuan
||||
|-|-|-|
|Item|2015|2014|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||328,257,641.76|282,982,651.03|
|commodities and rendering of service|||
|Tax refunds received|||
|Other cash received relating to|||
||731,296,731.46|429,286,185.00|
|operating activities|||
|Subtotal of cash inflows from operating|||
||1,059,554,373.22|712,268,836.03|
|activities|||
|Cash paid for goods and services|328,257,641.77|212,806,528.66|
|Cash paid to and for employees|6,744,701.10|6,267,950.81|
|Various taxes paid|2,878,820.20|41,674,623.68|
|Other cash payment relating to|||
||591,337,365.04|61,951,789.20|
|operating activities|||
|Subtotal of cash outflows from|||
||929,218,528.11|322,700,892.35|
|operating activities|||
|Net cash flows from operating activities|130,335,845.11|389,567,943.68|
|II. Cash flows from investing activities:|||
|Cash received from retraction of|||
|investments|||
|Cash received from return on|19,796,783.06||

||||
|-|-|-|
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|65,610,551.60|18,300.00|
|long-term assets|||
|Net cash received from disposal of|||
||45,000,000.00||
|subsidiaries or other business units|||
|Other cash received relating to|||
|investing activities|||
|Subtotal of cash inflows from investing|||
||130,407,334.66|18,300.00|
|activities|||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long-term|201,641.91|27,656.00|
|assets|||
|Cash paid for investment|3,288,700.00|231,450,200.00|
|Net cash paid to acquire subsidiaries|||
|and other business units|||
|Other cash payments relating to|||
|investing activities|||
|Subtotal of cash outflows from|||
||3,490,341.91|231,477,856.00|
|investing activities|||
|Net cash flows from investing activities|126,916,992.75|-231,459,556.00|
|III. Cash Flows from Financing|||
|Activities:|||
|Cash received from capital|||
|contributions|||
|Cash received from borrowings|449,100,000.00|100,000,000.00|
|Cash received from issuance of|||
|bonds|||
|Other cash received relating to|||
|financing activities|||
|Subtotal of cash inflows from financing|||
||449,100,000.00|100,000,000.00|
|activities|||
|Repayment of borrowings|568,770,000.00|220,000,000.00|
|Cash paid for interest expenses and|||
||79,411,991.70|73,335,611.09|
|distribution of dividends or profit|||
|Other cash payments relating to|||
||4,500,000.00||
|financing activities|||
|Sub-total of cash outflows from|652,681,991.70|293,335,611.09|

||||
|-|-|-|
|financing activities|||
|Net cash flows from financing activities|-203,581,991.70|-193,335,611.09|
|IV. Effect of foreign exchange ratechanges on cash and cash equivalents|||
|V. Net increase in cash and cashequivalents|||
||53,670,846.16|-35,227,223.41|
|Add: Opening balance of cash andcash equivalents|||
||10,063,979.96|45,291,203.37|
|VI. Closing balance of cash and cashequivalents|||
||63,734,826.12|10,063,979.96|

7. Consolidated statement of changes inowners’ equity
2015
Unit: RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||2015|||||||||||||
||Equity attributable to owners of the Company|||||||||||||
|||Other equity||||||||||||
||||||||Other|||||Minorit|Total|
|Item||||||||||||||
|||instruments||||Less:||||General||||
||Share||||Capital||compre|Specific|Surplus||Retaine|y|owners’|
|||Prefer|Perpet|||treasury||||risk||||
||capital||||reserve||hensive|reserve|reserve||d profit|interests|equity|
|||red|ual|Other||stock||||reserve||||
||||||||incomes|||||||
|||shares|bonds|||||||||||
|I. Balance at the|505,42|||||||||||1,609,9|3,422,7|
||||||256,822||169,714||187,280||863,066|||
|end of the|5,000.|||||||||||55,356.|19,266.|
||||||,373.42||.39||,095.40||,727.26|||
|previous year|00|||||||||||23|70|
|Add: change of||||||||||||||
|accounting policy||||||||||||||
|Correction of||||||||||||||
|errors in previous||||||||||||||
|periods||||||||||||||
|Business||||||||||||||
|mergers under the||||||||||||||
|same control||||||||||||||
|Other||||||||||||||
|II. Balance at the|505,42|||||||||||1,609,9|3,422,7|
||||||256,822||169,714||187,280||863,066|||
|beginning of the|5,000.|||||||||||55,356.|19,266.|
||||||,373.42||.39||,095.40||,727.26|||
|year|00|||||||||||23|70|
|III. Increase/|||||||||||125,513|-39,248,|86,264,|
|decrease in the|||||||||||,321.66|924.44|397.22|

|||||
|-|-|-|-|
|period (“-” means||||
|decrease)||||
|(I) Total||||
||133,094|37,821,|170,915|
|comprehensive||||
||,696.66|045.68|,742.34|
|incomes||||
|(II) Capital||||
|||-12,343,|-12,343,|
|increased and||||
|||394.48|394.48|
|reduced by owners||||
|1. Common||||
|||-12,343,|-12,343,|
|shares increased||||
|||394.48|394.48|
|by shareholders||||
|2. Capital||||
|increased by||||
|holders of other||||
|equity instruments||||
|3. Amounts||||
|of share-based||||
|payments||||
|recognized in||||
|owners’ equity||||
|4. Other||||
|(III) Profit|-7,581,3|-64,726,|-72,307,|
|distribution|75.00|575.64|950.64|
|1.||||
|Appropriations to||||
|surplus reserves||||
|2.||||
|Appropriations to||||
|general risk||||
|provisions||||
|3.||||
|Appropriations to|-7,581,3|-64,726,|-67,913,|
|owners (or|75.00|575.64|923.87|
|shareholders)||||
|||-4,394,0|-4,394,0|
|4. Other||||
|||26.77|26.77|
|(IV) 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||||||||
|(V) Specific||||||||
|reserve||||||||
|1. Withdrawn||||||||
|for the period||||||||
|2. Used in the||||||||
|period||||||||
|(VI) Other||||||||
||505,42|||||1,570,7|3,508,983,663.92|
|IV. Closing||256,822|169,714|187,280|988,580|||
||5,000.|||||06,431.||
|balance||,373.42|.39|,095.40|,048.92|||
||00|||||79||

 2014
Unit: RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||2014|||||||||||||
||Equity attributable to owners of the Company|||||||||||||
|||Other equity||||||||||Minorit||
||||||||Other||||||Total|
|Item||||||||||||||
|||instruments||||Less:||||General||y||
||Share||||Capital||compre|Specific|Surplus||Retaine||owners’|
|||Prefer|Perpet|||treasury||||risk||interest||
||capital||||reserve||hensive|reserve|reserve||d profit||equity|
|||red|ual|Other||stock||||reserve||s||
||||||||incomes|||||||
|||shares|bonds|||||||||||
|I. Balance at the|505,42|||||||||||1,545,1|3,275,0|
||||||256,822||627,641||179,240||787,821|||
|end of the|5,000.|||||||||||56,393.|93,371.|
||||||,373.42||.83||,134.80||,828.63|||
|previous year|00|||||||||||20|88|
|Add: change of||||||||||||||
|accounting policy||||||||||||||
|Correction of||||||||||||||
|errors in previous||||||||||||||

|||||||||
|-|-|-|-|-|-|-|-|
|periods||||||||
|Business||||||||
|mergers under the||||||||
|same control||||||||
|Other||||||||
|II. Balance at the|505,42|||||1,545,1|3,275,0|
|||256,822|627,641|179,240|787,821|||
|beginning of the|5,000.|||||56,393.|93,371.|
|||,373.42|.83|,134.80|,828.63|||
|year|00|||||20|88|
|III. Increase/||||||||
|decrease in the|||-457,92|8,039,9|75,244,|64,798,|147,625|
|period (“-” means|||7.44|60.60|898.63|963.03|,894.82|
|decrease)||||||||
|(I) Total||||||||
||||-457,92||83,284,|64,798,|147,625|
|comprehensive||||||||
||||7.44||859.23|963.03|,894.82|
|incomes||||||||
|(II) Capital||||||||
|increased and||||||||
|reduced by owners||||||||
|1. Common||||||||
|shares increased||||||||
|by shareholders||||||||
|2. Capital||||||||
|increased by||||||||
|holders of other||||||||
|equity instruments||||||||
|3. Amounts||||||||
|of share-based||||||||
|payments||||||||
|recognized in||||||||
|owners’ equity||||||||
|4. Other||||||||
|(III) Profit||||8,039,9|-8,039,9|||
|distribution||||60.60|60.60|||
|1.||||||||
|||||8,039,9|-8,039,9|||
|Appropriations to||||||||
|||||60.60|60.60|||
|surplus reserves||||||||
|2.||||||||
|Appropriations to||||||||
|general risk||||||||
|provisions||||||||

|||||||||
|-|-|-|-|-|-|-|-|
|3.||||||||
|Appropriations to||||||||
|owners (or||||||||
|shareholders)||||||||
|4. Other||||||||
|(IV) 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||||||||
|(V) Specific||||||||
|reserve||||||||
|1. Withdrawn||||||||
|for the period||||||||
|2. Used in the||||||||
|period||||||||
|(VI) Other||||||||
||505,42|||||1,609,9|3,422,7|
|IV. Closing||256,822|169,714|187,280|863,066|||
||5,000.|||||55,356.|19,266.|
|balance||,373.42|.39|,095.40|,727.26|||
||00|||||23|70|

 8. Statement of changes inowners’ equity of the Company
2015
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||2015|||||||||||
|Item|Share|Other equity instruments|||Capital|Less:|Other|Specific|Surplus|Retaine|Total|
||capital|Preferre|Perpetu|Other|reserve|treasury|comprehe|reserve|reserve|d profit|owners’|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||d shares|a l bonds||stock|nsive|||equity|
|||||||incomes||||
|I. Balance at the||||||||||
||505,425,|||250,531,4|||187,280,0|784,829|1,728,066|
|end of the previous||||||||||
||000.00|||82.00|||95.40|,738.75|,316.15|
|year||||||||||
|Add: change of||||||||||
|accounting policy||||||||||
|Correction of||||||||||
|errors in previous||||||||||
|periods||||||||||
|Other||||||||||
|II. Balance at the||||||||||
||505,425,|||250,531,4|||187,280,0|784,829|1,728,066|
|beginning of the||||||||||
||000.00|||82.00|||95.40|,738.75|,316.15|
|year||||||||||
|III. Increase/||||||||||
|decrease in the||||||||-45,231,|-45,231,0|
|period (“-” means||||||||043.74|43.74|
|decrease)||||||||||
|(I) Total||||||||||
|||||||||-37,649,|-37,649,6|
|comprehensive||||||||||
|||||||||668.74|68.74|
|incomes||||||||||
|(II) Capital||||||||||
|increased and||||||||||
|reduced by owners||||||||||
|1. Common||||||||||
|shares increased||||||||||
|by shareholders||||||||||
|2. Capital||||||||||
|increased by||||||||||
|holders of other||||||||||
|equity instruments||||||||||
|3. Amounts||||||||||
|of share-based||||||||||
|payments||||||||||
|recognized in||||||||||
|owners’ equity||||||||||
|4. Other||||||||||
|(III) Profit||||||||-7,581,3|-7,581,37|
|distribution||||||||75.00|5.00|
|1.||||||||||

|||||||
|-|-|-|-|-|-|
|Appropriations to||||||
|surplus reserves||||||
|2.||||||
|Appropriations to||||-7,581,3|-7,581,37|
|owners (or||||75.00|5.00|
|shareholders)||||||
|3. Other||||||
|(IV) 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||||||
|(V) Specific||||||
|reserve||||||
|1. Withdrawn||||||
|for the period||||||
|2. Used in the||||||
|period||||||
|(VI) Other||||||
|IV. Closing|505,425,|250,531,4|187,280,0|739,598|1,682,835,272.41|
|balance|000.00|82.00|95.40|,695.01||

 2014
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||2014|||||||||||
|||Other equity instruments|||||Other|||||
|||||||Less:|||||Total|
|Item|Share|Preferre PerpetuOtherd shares a l bonds|||Capital||comprehe|Specific|Surplus|Retaine||
|||Preferre|Perpetu|||treasury|||||owners’|
||capital|||Other|reserve||nsive|reserve|reserve|d profit||
|||d shares|a l bonds|||stock|||||equity|
||||||||incomes|||||

|||||||
|-|-|-|-|-|-|
|I. Balance at the||||||
||505,425,|250,531,4|179,240,1|712,470|1,647,666|
|end of the previous||||||
||000.00|82.00|34.80|,093.33|,710.13|
|year||||||
|Add: change of||||||
|accounting policy||||||
|Correction of||||||
|errors in previous||||||
|periods||||||
|Other||||||
|II. Balance at the||||||
||505,425,|250,531,4|179,240,1|712,470|1,647,666|
|beginning of the||||||
||000.00|82.00|34.80|,093.33|,710.13|
|year||||||
|III. Increase/||||||
|decrease in the|||8,039,960|72,359,|80,399,60|
|period (“-” means|||.60|645.42|6.02|
|decrease)||||||
|(I) Total||||||
|||||80,399,|80,399,60|
|comprehensive||||||
|||||606.02|6.02|
|incomes||||||
|(II) Capital||||||
|increased and||||||
|reduced by owners||||||
|1. Common||||||
|shares increased||||||
|by shareholders||||||
|2. Capital||||||
|increased by||||||
|holders of other||||||
|equity instruments||||||
|3. Amounts||||||
|of share-based||||||
|payments||||||
|recognized in||||||
|owners’ equity||||||
|4. Other||||||
|(III) Profit|||8,039,960|-8,039,9||
|distribution|||.60|60.60||
|1.||||||
||||8,039,960|-8,039,9||
|Appropriations to||||||
||||.60|60.60||
|surplus reserves||||||

|||||||
|-|-|-|-|-|-|
|2.||||||
|Appropriations to||||||
|owners (or||||||
|shareholders)||||||
|3. Other||||||
|(IV) 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||||||
|(V) Specific||||||
|reserve||||||
|1. Withdrawn||||||
|for the period||||||
|2. Used in the||||||
|period||||||
|(VI) Other||||||
|IV. Closing|505,425,|250,531,4|187,280,0|784,829|1,728,066|
|balance|000.00|82.00|95.40|,738.75|,316.15|

 III. Financial statement's footnote
1.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 RMB290,000,000 at par value of RMB1 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 RMB439,500,000.00. In June 2007, the Company distributed dividends of 65,925,000 shares, thus, the total share capital was changed into RMB505,425,000.00. The Company is mainly engaged in the paper making, paper package and printing industry.
As at 31 Dec. 2015, the Company accumulatively issued 505,425,000 shares in number and the registered capital stood at RMB505,425,000. 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 Ultimate controller of the Company is China Chengtong Holding Group Co., Ltd.
2. Nature of the business and main operation activities
The Company is in the industry of papermaking, paper packaging and printing, and 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.
3. Issuance of the financial statements authorized
The financial statement was approved to issue by the Board of Directors on 18 Mar. 2016.
2.Consolidated financial statements
This issue consolidated financial statements included in the scope of the subject co-7, including:
Subsidiaries
Class Shareholding Percentage of Name of subsidiaries
Type times Ratio(%) voting rights(%)
Subsidiaries
Class Shareholding Percentage of Name of subsidiaries
Type times Ratio(%) voting rights(%) holding
Zhuhai S.E.Z. Hongta Renheng Paper
subsidiary One 41.9653% 41.9653% Co., Ltd.
Awholly
Zhuhai Huafeng Paper Co., Ltd.
owned
Two 100% 100% subsidiary
holding
Zhuhai Jinji Chemicals Co., Ltd. subsidiary One 51% 51% A wholly
Huaxin (Foshan) Color Printing Co., Ltd.
owned
Two 100% 100% subsidiary
A wholly
Kunshan Focai Packaging& Printing Co.,
owned One 100% 100% Ltd.
subsidiary
A wholly
Pearl River Color Printing Co., Ltd. of
owned Two 100% 100% Chancheng District, Foshan
subsidiary
A wholly
Pinghu Huaxin Packing Material Co., Ltd owned one 100% 100% subsidiary
The exercise control instructions of company to Zhuhai SEZ Hongta Renheng Paper Co., Ltd. (hereinafter referred to as "Hongta Renheng"):
On June 30, 2009, the ways to achieve the company to increase endowment spread hongta Renheng40.176% stake, hongta Renheng 5 members of the board of directors and the company sent three, yunnan hongta group co., LTD. And each sent 1 Renheng industrial co., LTD. Chairman of the board of directors (legal representative) sent by the company, general manager and chief financial officer dispatched personnel as by the company, the company can control hongta Renheng daily production and business operation activities, so since July 2009, hongta Renheng started into the consolidated company. On February 1, 2010, hongta Renheng complete capital formalities of
industrial and commercial change, our company hold the equity of hongta Renheng increased to41.9653%, according to the hongta Renheng on February 25, 2010, the board of directors resolution, modify the hongta Renheng contracts and articles of association, the modified hongta Renheng by five to seven of the members of the board, the company sent four (three), yunnan hongta group co., LTD., sent two (1), Renheng industrial co., LTD., sent one, don't send directors kalumpang international co., LTD. The company can still determine hongta Renheng financial and operating policies, will still be able to implement control, therefore, continue to hongta Renheng included in the consolidation range of the company.
The body included in the scope of consolidated financial statements increased 1 comparing to that in last period, of which:
1. Subsidiary newly included in consolidated scope
|||
|-|-|
|Name|Reason of change|
|Pinghu Huaxin Packing Material Co., Ltd|Subsidiary newly established in reporting period|

2. Subsidiary was no longer included in consolidated scope
|||
|-|-|
|Name|Reason of change|
|Foshan Chengtong Paper Co., Ltd.|The disposal of subsidiary|

Merge scope change subject specific information can be found in the "note 7, merge scope change" 4. Basis for the preparation of financial statements
1. Preparation basis
With the going-concern assumption as the basis and based on transactions and other events that actually occurred, the Group prepared financial statements in accordance with<The Accounting Standards for BusinessEnterprises—BasicStandard> issued by the Ministry of Finance and with each specific accounting standard, the Application Guidance of Accounting Standards for Business Enterprises, the Interpretation of Accounting Standards for Business Enterprises and other regulations (hereinafter jointly referred to as “the Accounting Standards for Business Enterprises”, “China Accounting Standards” or “CAS”), as well as the Rules for Preparation Convention of Disclosure of Public Offering Companies No.15– General Regulations for Financial Reporting by China Securities Regulatory Commission.
2. Continuation
The Company evaluated the processes constantly operation ability with 12 months since the reporting period. There was no significant suspect event to the continuation. Thus, the financial statement was prepared on the base of the assumption of continuation
5. Important accounting policies and estimations
Indication of specific accounting policies and estimations:
Naught
1. 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 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.
2. Fiscal period
The fiscal year of the Company is a solar calendar year, which is from January 1 to December 31.
3. Operating cycle
The operating cycle of the Company is 12 months.
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. Each transaction items, conditions and economy influence in confirm with the following one or several conditions, when realizing enterprise combination by steps. Several transaction events were considered as a package deal and conducted accounting method
(1) The transaction was set up in the same time or had considered the influence to each others:
(2) The transaction only stand as a whole, a perfect commercial result can be arrived.
(3) A transaction incurred depends on at least one transaction occurred;
(4) A transaction is not economical, however, together with other transaction are economical.
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 (including goodwill formed from the final control party purchase combined party) combing party on the combining date. 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.
In the event that the contingent consideration exists and the accrued liabilities or assets need to be recognized, the difference between the accrued liabilities or assets and the settlement amount of subsequent contingent consideration shall adjust the capital surplus (capital premium or stock premium), and if the capital surplus is not sufficient, adjust the retained earnings.
Where the corporate merger and acquisition is realized through multiple transactions, if these transactions belong to a package transaction, each transaction shall be accounted as a transaction to obtain the right to control; if these transactions do not belong to a package transaction, on the date the right to control is obtained, the difference between the initial investment costs of the long-term equity investment and the carrying value of long-term equity investment before the
M&A plus the carrying value of the new consideration paid to further get the shares on the date ofM&A shall be charged against the capital surplus, and if the capital surplus is insufficient, the difference shall be charged against the remaining earnings. For the equity investment held before the date ofM&A, the other comprehensive earnings accounted for using the equity method or recognized with the financial tool and accounted for and recognized using the measurement criteria shall not be accounted, until the investment is disposed, at which time, the investment shall be accounted on the same basis as the investee directly disposes related assets or liabilities; the changes to theowner’s equity in theinvestee’s net assets accounted and recognized using the equity method other than the net profit or losses, other comprehensive earnings and profit distribution, shall not be accounted, until the investment is disposed, at which time, it shall be carried over to the current profits or losses.
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 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.
Where a merger of enterprises not under the same control is realized through multiple transactions step by step, if these transactions belong to a package transaction, each transaction shall be accounted as a transaction to obtain the right to control; if these transactions do not belong to a package transaction, and the equity investment held before the date ofM&A is accounted using the equity method, the sum of the carrying value of the equity investment in the acquiree held before the date of the acquisition, plus the new investment costs on the date of the acquisition shall be the initial investment costs of the investment; other comprehensive earnings of the equity investment held before the date of acquisition accounted and recognized using the equity method shall be accounted on the same basis as the investee directly disposes relevant assets or liabilities when the investment is disposed. If the equity investment held before the date ofM&A is recognized using the financial tool and accounted using the measurement criterion, the sum of the fair value of the equity investment on the date ofM&A plus the new investment costs shall be the initial investment costs at the date ofM&A. The difference between the fair value and carrying value of the held equity and changes to the accumulated fair value charged against other comprehensive earnings shall be fully converted the current investment earnings at the date ofM&A.
3. Relevant costs incurred from the business combination
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 the acquirer'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. Methods for preparing consolidated financial statements
1. Consolidation scope
The scope of consolidated financial statements shall be confirmed based on the control. All subsidiaries (including individual entities controlled by the Company) of the Company shall be included into the consolidated financial statement.
2. Consolidation process
The Company based on the financial statements of itself and its subsidiaries, in line with other relevant information, prepare the consolidated financial statements. The consolidated financial statements the Company prepare was considered the whole enterprise group as a accountant entity, in line with the requirement of presentation, recognition and calculation in ASBE and a uniform accountant policies, reflect the financial situation, operation results and cash flows of the whole enterprise group.
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.
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. If standing at the point of view of enterprise group consolidated financial statement, and its recognition of common trade differ from the accounting entity of Company or subsidiary, adjust it from the point of view of the enterprise group.
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.
For subsidiary obtained by business combination under same control, adjust the financial statement on the base of book value of assets, liabilities (including goodwill formed by the financial control party purchasing the subsidiary) in financial statement of final control party.
For subsidiary obtained by business combination not under same control, adjust the financial statement on the base of identifiable net assets on purchase date
1. Increasing the subsidiaries or business
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 since the control party start to control.
Owning to the reasons such as the additional investment, for the subsidiaries could execute control
on the investees under the same control, should be regard as the individuals participated in the combination that to execute adjustment by existing as the current state when the ultimate control party began to control. For the equity investment held before acquiring the control right of the combined parties, the confirmed relevant gains and losses, other comprehensive income and the changes of other net assets since the date of the earlier one between the date when acquiring the original equity right and the date when the combine parties and combined ones were under the same control to the combination date, should be respectively written down and compared with the beginning balance of retained earnings or the current gains and losses during the statement period. During the reporting period, for the added subsidiary companies for business combination note 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 purchase date to the end of reporting year into consolidated income statement; and shall include the cash flow of the subsidiary companies from purchase date to the reporting period into the consolidated cash flow statement.
Owning to the reasons such as the additional investment that the subsidiaries could execute the control of the investees under different control, 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 which involved with the other comprehensive profits and changes of the otherowners’ equities except for the net gains and losses, other comprehensive profits as well as the profits distribution under the measurement of equity method before the acquisition date involves other comprehensive incomes, the relevant other comprehensive incomes and the changes of the otherowners’ equities are restated as investment gains for the period which the acquisition date belongs to, with the exception of the other comprehensive incomes occurred because of the changes of net liabilities or net assets of the defined benefit pension plans be re-measured for setting by the investees.
2. Disposal of the subsidiaries or business
1) General disposing method
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. Where the equity interests in the subsidiary held by the Company which involved with the other comprehensive profits and changes of the otherowners’ equities except for the net gains and losses, other comprehensive profits as well as the profits distribution when losing control, the relevant other comprehensive incomes and the changes of the otherowners’ equities are restated as investment gains for current period , with the exception of the other comprehensive incomes occurred because of the changes of net liabilities or net assets of the defined benefit pension plans
be re-measured for setting by the investees.
2) Step by step disposing the subsidiaries
Where the Company losses control on its original subsidiaries due to step by step disposal of equity investments through multiple transactions, all the transaction terms, conditions and economic impact of the disposal ofsubsidiaries’ equity investment are in accordance with one or more of the following conditions, which usually indicate the multiple transactions should be considered as a package deal for accounting treatment:
A. The transaction was set up in the same time or had considered the influence to each others;
B. The transaction only stand as a whole, a perfect commercial result can be arrived.
C. A transaction incurred depends on at least one transaction occurred;
D. A transaction is not economical, however, together with other transaction are economical.
When disposing each transaction of the Company losses control on its subsidiaries due to disposal of equity investments belonging to a package deal, should be considered as a transaction and conduct accounting treatment. However, Before losing control, every disposal cost and corresponding net assets balance of subsidiary of disposal investment are confirmed as other comprehensive income in consolidated financial statements, which together transferred into the current profits and losses in the loss of control , when the Company losing control on its subsidiary.
When disposing each transaction of the Company losses control on its subsidiaries due to disposal of equity investments not belonging to a package deal, before which losing the control right, should execute the accounting disposal according to the partly dispose the equity investment of the subsidiaries under the situation not losing the control right; when losing the control right, should execute accounting disposal according to the general disposing method disposal of the subsidiaries.
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 which began to be calculated from the purchase date (or the combination date) in the subsidiary calculated according to the newly increased shareholding ratio, 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. Disposing the equity investment of the subsidiaries under the situation not losing the control right
The differences 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.
7. Classification of joint arrangements and accounting treatment of joint operations
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. Foreign currency businesses and translation of foreign currency financial 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.
On balance sheet 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. If it belongs available for sale foreign currency non-monetary items, the difference form of exchange record into other comprehensive income
2. Translation for foreign currency financial statements
All the assets and liabilities items should be translated as CNY according to the basic rate of the spot rate on the balance sheet date; All the equity item except " Undistributed profits" item, other item adopt spot exchange rate to exchange. Income and cost item in profit statement, adopt average exchange rate of opening period and closing period. The translation balance of foreign financial statement incurred in line with the aforesaid translation, recorded into other comprehensive income.
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. When disposing part of equity investment or the decrease of holding of oversea operating share equity proportion but not losing control of the oversea operation due to other reason, the translation reserve related to disposal part of oversea operation will belong to the translation balance of minority shareholders, and not transfer into current profits or losses. When disposing part of equity of joint venture or association enterprise oversea operation, the translation reserve related to the oversea operation will transfer into current profits or losses in line with the disposal proportion
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: 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; the investments which will be held to their maturity; loans and the account receivables; financial assets available for sale; and other financial liabilities.
2. Recognition basis and calculation method of financial instrument
1. Financial assets (liabilities) measured by fair value and the changes included in the current gains and losses
The financial assets (or financial liabilities) that are measured by fair value with its change s recognized in the current profits and losses, including the transactional financial assets or financial liability and the financial assets or financial liabilities that are directly designated to be measured by fair value with its change recognized in the current losses and profits.
Transactional financial assets or financial liabilities mean the financial assets or financial liabilities that meet any one of the following conditions:
1) The purpose of obtaining the financial assets or financial liabilities is to sell, repurchase or redeem it in a short time;
2) It is a part of the identifiable combination of financial instrument that the company manages together and there is objective evidence of a recent pattern of short-term profit making;
3) It belongs to the derivative financial instrument, but is designated as the derivative instrument of valid arbitrage instrument or belongs to the derivation instrument of financial guarantee contract, or it is connected to the equity instrument investment for which there is no quotation in active market and its fair value cannot be reliably measured, the derivative tool that shall be settled through delivering the equity instrument excluded.
Only if one of the following conditions is met, could the financial assets or financial assets be designated as the financial assets or financial liability that shall be measured by fair value with changes recognized in profit or loss in the period:
1) The designation is able to eliminate or obviously reduce the discrepancies in the recognition or measurement of relevant gains or losses arising from the different basis of measurement of the financial assets or financial liability;
2) The official written document of risk management or investment strategies of the enterprise concerned have described that the said combination of financial assets, the combination of financial liabilities, or the combination of financial assets and financial liabilities will be managed and evaluated on the basis of their fair values and will be reported to the key management personnel.
4) The mixed instrument that include the embedded derivative instrument that shall be split but cannot be separately measured when it is obtained or on the subsequent date of balance sheet.
For the financial assets or financial liabilities that is measured by fair value with its change recognized in the current profits or losses, the company will use the fair value (deducting the cash dividend that is announced but not issued, or the bond interest that is due but has not be claimed) as the initially recognized amount, and the related transaction costs shall be recognized in the current profits and losses.
The interest or cash dividend obtained during the holding period shall be recognized as the investment earning, and at the end of the period, the change in fair value shall be recognized in the current profits and losses.
At the time of disposal, the difference between its fair value and the initially recognized amount shall be recognized as the investment earnings, and at the same time, the change in fair value shall be recognized as the profit or loss.
2. 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.
3. Available-for-sale financial assets
Available-for-sale financial assets were referred to the non-derivative financial assets available for sale, as well as the financial assets other than the other financial asset classes in the initial recognition.
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. Interest or cash dividend received in holding period were recognized as investment income. Profits or losses from the change in fair value of available-for-sale financial assets except impairment losses and translation balance form foreign monetary financial assets, directly record into other comprehensive income. When disposing available-for-sale financial assets recorded the difference between the price and the book value of the financial assets into investment profits or losses, meanwhile, roll out the disposal part of the accumulative amount of change in fair value originally and directly recorded into other comprehensive income and record into investment profits or losses.
The equity instrument investment without offer and its fair value without reliable calculation, and derivative financial assets linked to and settled by the equity instruments, measured at cost.
4. 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 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. Initially obtained or derivative financial assets or the market transaction price of bared financial liabilities was considered as the basis of fair value; Where there is no active market for a financial assets and financial liabilities, the Company concerned shall adopt value appraisal techniques to determine its fair value. When evaluating, the Company adopt the valuation technique with sufficient useful data and supported by other information which suitable for the current situation, choose a input in concern with the characteristics of assets or liabilities considered in relevant assets or liabilities transaction with the market players, and as much as possible, give prior to using the relevant observable input under the situation that, the observable input value or it is not feasible to obtain, use unobservable input value.
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.
The objective evidences of impairment provision of financial assets include but not limited to:
1. Issuer or debtor had serious financial difficulties:
2. The debtor violates the items of the contact, such as violate a treaty or overdue to repay the interest or principal, etc;
3. The creditor considering the factors of economy or law makes concession to the debtor who had serious financial difficulty;
4. The debtor probably may go out of business or had other financial recombination;
5. Due to the issuer had serious financial difficulty; the financial assets cannot continue to trade in the active market;
6. The cash flow of a kind of asset in a group of financial assets decrease or not was beyond recognition, however, after conducting the overall evaluation in line with the public data, the estimate cash flow of the group of financial assets actually decrease and gaugeable since initial recognition, if the repay ability of the debtor steadily worsened, or the increase of unemployment rate, the decrease in the price of guaranty or the industry downturn that the district or country the debtor in, etc;
7. The great disadvantage change in technology, market, economy or legal environment that operation place that issuer of equity instrument locate at, which lead to the irrecoverable of investment cost of the equity instrument investors;
8. The fair value occurred seriously or non-transient decrease;
The specific impairment provision methods of financial assets were as follows:
(1) Provision for impairment of available-for-sale financial assets:
On balance sheet date, the Company executes individually inspection on each available-for-sale
financial statement, if the fair value of the equity instruments which invests on the balance sheet date is lower than its initial investment cost for more than50% (including50%) or lower than its initial investment cost for the duration time for more than 1 year (including 1 year), which indicates that it had occurred impairment; if the fair value of the equity instruments which invests on the balance sheet date is lower than its initial investment cost for more than20% (including20%) but not reaches at50%, the Company will comprehensively considerate the other relevant factors such as the price volatility etc. and will judge the equity investment whether had occurred impairment.
The aforesaid "cost" recognized in line with the initial investment cost of available for sale financial instrument deducting principal recovered, amount amortized and the impairment losses recorded into profits or losses. “fair value" recognized through the closing price of Securities Exchange at period end unless the investment of available for sale equity instrument was in the restricted stock trade period. For investment of available for sale equity instrument was in the restricted stock trade period, recognized in line with the closing price of Securities Exchange at period end deducting the risk of market player cannot sell the equity instrument, thus, require compensation.
Where a sellable financial asset is impaired, even if the recognition of the financial asset has not been terminated, the accumulative losses arising from the decrease of the fair value of theowner’s equity which was directly included shall be transferred out of theowners’ equities and recorded into the profits and losses of the current period. The accumulative losses that are transferred out shall be the balance obtained from the initially obtained costs of the sold financial asset after deducting the principals as taken back, the current fair value and the impairment-related losses as was recorded into the profits and losses of the current 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 incurred to a sellable equity instrument investment, should be reversed by equity when the value raised of the equity instruments; however, the impairment-related losses incurred to an equity instrument investment for which there is no quoted price in the active market and whose fair value cannot be reliably measured, or incurred to a derivative financial asset which is connected with the said equity instrument and which shall be settled by delivering the said equity instrument, may not be reversed.
7. The offset of financial assets and financial liabilities
Financial assets and financial liabilities are shown separately in balance sheet However, if they satisfy the following conditions, shown the net amount in the balance sheet after the offset;
(1) The Company had legal rights of offsetting the recognition amount, and the legal right is executable in recently;
(2) The Company plans to settle at net amount, or meanwhile realize the financial assets and pay off the financial liabilities.
6. Taxation
1. Main taxes and tax rate
||||
|-|-|-|
|Category of taxes|Tax basis|Tax rate|
||Income of sale of goods and rendering||
|VAT||17%|
||labor services||
|Business tax|Taxable turnover|5%|
|Urban maintenance and construction tax|Turnover tax actually paid|7%|
|Enterprise income tax|Income tax payable|25%|
||70% of the original value of the property||
|Property tax||1.2%|
||considered as tax base||

Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
|||
|-|-|
|Name|Income tax rate|
|Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd.|15%|
|Zhuhai Jinji Chemicals Co., Ltd.|15%|
|Pearl River Color Printing Co., Ltd. of Chancheng District,|Authorize the taxable income of 7% of the total amount of the|
|Foshan|income and the income tax rate is still 25%|

2. Tax preference
1. 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.: GF2012440000283, with three years of validity). So the subsidiary can enjoy the relevant tax preference for Hi-tech enterprise since Y2012 (include Y2012) for three years, whose CIT rate was15%. According to the Circular on issuing the First Name List of Hi-tech Enterprise through the review in Guangdong Province for Y2015 (YKGS (2015) Document No. 24) issued by Science& Technology Department of Guangdong Province , Zhuhai S.E.Z Hongta Renheng Paper Co., Ltd. passed First Batch of Hi-tech Enterprise in Guangdong Province for Y2015, thus, whose CIT rate was15%.
2. According to the Circular on issuing the Second Name List of Hi-tech Enterprise in Guangdong Province for Y2013 (YKGZi (2014) Document No. 1362) jointly issued by Science& Technology Department of Guangdong Province, Department of Finance of Guangdong Province, Guangdong Provincial Office, SAT, Guangdong Local Taxation Bureau, the sub-subsidiary of the Company
Zhuhai Jinji Chemicals Co., Ltd. had passed the affirmation of the second name list of high-tech
enterprise of 2013 and the gained the Certification of Hi-tech Enterprise (the Certification No.:
GR201344000618 with the validity for 3 years). Thus the sub-subsidiary Zhuhai Jinji Chemicals
Co., Ltd. had been enjoyed the relevant preferential policies of the high-tech enterprise of the state for continuous three years since 2013 (including 2013), with the corporate income tax be calculated according to15% of the taxable income.
3. Other
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%.
7. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Cash on hand|312,658.48|283,310.72|
|Bank deposits|185,647,665.76|110,640,137.90|
|Other monetary funds|323,746,286.83|363,625,954.94|
|Total|509,706,611.07|474,549,403.56|

 Other notes:
Of which the lists of restricted monetary capital were as followed:
|||
|-|-|
|Item|Closing balance|
|Deposit of bank acceptance|57,756,239.27|
|L/C Guarantee deposits|2,858,600.00|
|Performance bond|20,000,000.00|
|Fixed time deposit or call deposits used forguarantee|243,077,190.17|
|Other use restricted deposits|54,257.39|
|Total|323,746,286.83|

 2. Financial assets measured by fair value and the changes be included in the current gains and losses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Transactional financial assets|1,741,500.00||
|Total|1,741,500.00||

Other notes:
TheCompany’s subsidiary, Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. signed Forward Exchange Rate Contract with the bank, considering 31 Dec. 2015 as the fair value of exchange rate calculation.
3. Derivative financial assets
□ Applicable√ Inapplicable
4. Notes receivable
(1)Notes receivable listed by category
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Bank acceptance bill|265,679,151.34|345,827,854.88|
|Total|265,679,151.34|345,827,854.88|

 (2) Notes receivable pledged by the Company at the period-end
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|
|Bank acceptance bill|14,508,279.00|
|Total|14,508,279.00|

 (3) Notes receivable which had endorsed by the Company or had discounted and had not due on the balance sheet date at the period-end
Unit: RMB Yuan
||||
|-|-|-|
||Amount of recognition termination at the|Amount of not terminated recognition at|
|Item|||
||period-end|the period-end|
|Bank acceptance bill|641,644,169.70||
|Total|641,644,169.70||

(4) Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or agreement
Unit: RMB Yuan
|||
|-|-|
||Amount of the notes transferred to accounts receivable at the|
|Item||
||period-end|

Other notes:
5. Accounts receivable
(1) Accounts receivable classified by category
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|||||Withdrawalproportion|||||||
|Category|||||Book||||||
|||Proportio|||||Proportio||Withdrawal|Book value|
||Amount||Amount||value|Amount||Amount|||
|||n|||||n||proportion||
|Accounts receivable|||||||||||
|withdrawal of bad|||||||||||
||793,480,||6,249,28||787,230,9|839,154||5,237,919||833,916,13|
|debt provision of by||95.26%||0.79%|||93.28%||0.62%||
||231.46||0.00||51.46|,059.30||.48||9.82|
|credit risks|||||||||||
|characteristics:|||||||||||
|Accounts receivable|||||||||||
|with insignificant|||||||||||
|single amount for|39,491,7||35,397,4||4,094,354|60,446,||56,384,48||4,062,447.8|
|||4.74%||89.63%|||6.72%||93.28%||
|which bad debt|72.33||18.00||.33|932.71||4.85||6|
|provision separately|||||||||||
|accrued|||||||||||
||832,972,||41,646,6||791,325,305.79|899,600||61,622,40||837,978,587.68|
|Total||100.00%||5.00%|||100.00%||6.85%||
||003.79||98.00|||,992.01||4.33|||

 Accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end
□ Applicable√ Inapplicable
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable□ Inapplicable
Unit: RMB Yuan
|||||
|-|-|-|-|
||Closing balance|||
|Aging||||
||Account receivable|Bad debt provision|Withdrawal proportion|
|Subentry within 1 year||||
|1-3 months|705,325,789.75|||
|3-12 months|75,724,627.84|3,785,722.07|5.00%|
|Subtotal of within 1 year|781,050,417.59|3,785,722.07|5.00%|
|1 to 2 years|7,863,138.98|786,313.90|10.00%|
|2 to 3 years|2,020,311.38|404,062.28|20.00%|
|Over 3 years|2,546,363.51|1,273,181.75|50.00%|

|||||
|-|-|-|-|
|Total|793,480,231.46|6,249,280.00|0.79%|

 Notes of the basis of recognizing the group:
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:
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The withdrawal amount of the bad debt provision during the reporting period was of RMB 15,265,232.01; the amount of the reversed or collected part during the reporting period was of RMB 35,240,938.34.
Significant amount of reversed or recovered bad debt provision
Unit: RMB Yuan
||||
|-|-|-|
|Name of the entity|Amount|Method|

 The withdrawal amount of the bad debt provision during the reporting period was of RMB15,265,232.01; the bad debt provision roll out was of RMB35,240,938.34, mainly was the disposal of subsidiary, Foshan Chengtong Paper Co., Ltd., the roll out bad debt provision was the change of consolidated scope. The note of disposal of subsidiary, see Note. VIII. Change in consolidated scope
(3) Particulars of the actual verification of accounts receivable during the reporting period
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|
|Naught||

Of which: significant actual verification of accounts receivable
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||Whether occurred|
|Name of the entity|Nature|Amount|Reason|Procedure|because of related|
||||||party transactions|

 Notes:
No such cases in reporting period.
(4) Top five of account receivable of closing balance collected by arrears party
||||
|-|-|-|
|Name of the entity|Closing balance|Proportion%|
|Customer A|59,392,154.99|7.13|
|Customer B|52,052,532.44|6.25|
|Customer C|28,197,019.70|3.39|

||||
|-|-|-|
|Customer D|25,411,072.23|3.05|
|Customer E|22,938,936.19|2.75|
|Total|187,991,715.55|22.57|

 (5) Derecogniziton of account receivable due to the transfer of financial assets
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable
Other notes:
6. Prepayment
(1) List by aging analysis:
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Aging|||||
||Amount|Proportion|Amount|Proportion|
|Within 1 year|100,305,038.17|86.25%|169,346,566.63|93.08%|
|1 to 2 years|14,339,162.73|12.33%|12,302,740.61|6.76%|
|2 to 3 years|1,295,593.58|1.12%|71,240.00|0.04%|
|Over 3 years|350,902.50|0.30%|211,980.00|0.12%|
|Total|116,290,696.98|--|181,932,527.24|--|

 Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
||||
|-|-|-|
|Name of the entity|Closing balance|Aging|
|Guangzhou Devotion Heat EnergyTechnology Co., Ltd.|10,889,644.79|1-2 years Pi|

(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
|||||
|-|-|-|-|
|Name of the entity|Closing balance|Proportion(%)|Time|
|Customer A|27,884,562.96|23.98|1-3 months|
|Customer B|17,599,079.27|15.13|1-3 months|

|||||
|-|-|-|-|
|Customer C|13,789,593.57|11.86|1-3 months|
|Customer D|10,889,644.79|9.36|1-2 years|
|Customer E|10,643,357.00|9.15|1-3 months|
|Total|80,806,237.59|69.48||

Other notes:
7. Interest receivable
(1) Category of interest receivable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Fixed time deposits|5,233,556.60||
|Total|5,233,556.60||

(2) Significant overdue interest
||||||
|-|-|-|-|-|
|||||Whether occurred|
|Entity|Closing balance|Overdue time|Overdue reason|impairment and its|
|||||judgment basis|

 Other notes:
8. Dividend receivable
(1) Dividend receivable
Unit: RMB Yuan
||||
|-|-|-|
|Item (or investees)|Closing balance|Opening balance|

 (2) Significant dividend receivable aged over 1 year
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item (or investees)|Closing balance|Aging|Reason|Whether occurred|

||
|-|
|impairment and its|
|judgment basis|

 Other notes:
9. Other accounts receivable
(1) Other account receivable classified by category
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|||||Withdra|||||||
|Category|||||Book||||||
|||Proportio||wal|||Proportio||Withdrawal|Book value|
||Amount||Amount||value|Amount||Amount|||
|||n||proportio|||n||proportion||
|||||n|||||||
|Other accounts|||||||||||
|receivable with|||||||||||
|insignificant single|18,610,6||18,610,6|||17,874,||17,874,41|||
|||10.93%||100.00%|||13.68%||100.00%||
|amount for which|29.25||29.25|||414.64||4.64|||
|bad debt provision|||||||||||
|separately accrued|||||||||||
|Other accounts|||||||||||
|receivable withdrawn|||||||||||
||146,532,||2,669,92||143,862,3|107,239||790,904.6||106,448,71|
|bad debt provision||86.03%||1.83%|||82.09%||0.74%||
||231.59||3.43||08.16|,618.76||8||4.08|
|according to credit|||||||||||
|risks characteristics|||||||||||
|Other accounts|||||||||||
|receivable with|||||||||||
|insignificant single|5,178,29||5,178,29|||5,529,8||5,429,851|||
|||3.04%||100.00%|||4.23%||98.19%|100,000.00|
|amount for which|0.54||0.54|||51.77||.77|||
|bad debt provision|||||||||||
|separately accrued|||||||||||
||170,321,||26,458,8||143,862,308.16|130,643||24,095,17||106,548,714.08|
|Total||100.00%||15.53%|||100.00%||18.44%||
||151.38||43.22|||,885.17||1.09|||

 Other accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end
√ Applicable□ Inapplicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Closing balance||||
|Other accounts|||||
||Other accountsreceivable||||
|receivable||Bad debt provision|Withdrawal proportion|Withdrawal reason|

||||||
|-|-|-|-|-|
|Hong Kong Hang Fung|||||
|Holdings Limited Co.,|12,610,629.25|12,610,629.25|100.00%|Not expected to recover|
|Ltd.|||||
|Zhuhai Yidesheng|||||
||6,000,000.00|6,000,000.00|100.00%|Not expected to recover|
|Industrial Co., Ltd.|||||
|Total|18,610,629.25|18,610,629.25|--|--|

 In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable□ Inapplicable
Unit: RMB Yuan
|||||
|-|-|-|-|
||Closing balance|||
|Aging||||
||Other accounts receivable|Bad debt provision|Withdrawal proportion|
|Subentry within 1 year||||
|1-3 months|114,030,138.17|||
|4-12 months|27,488,755.67|1,374,437.79|5.00%|
|Subtotal of within 1 year|141,518,893.84|1,374,437.79|5.00%|
|1 to 2 years|2,165,029.47|202,234.77|9.34%|
|2 to 3 years|1,197,555.91|229,511.17|19.16%|
|Over 3 years|1,650,752.37|863,739.70|52.32%|
|Total|146,532,231.59|2,669,923.43|1.83%|

 Notes:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable√ Inapplicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
□ Applicable√ Inapplicable
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The withdrawal amount of the bad debt provision during the reporting period was of RMB6,327,755.89; the amount of the reversed or collected part during the reporting period was of RMB3,964,083.76.
Significant amount of reversed or recovered bad debt provision;
Unit: RMB Yuan
||||
|-|-|-|
|Name of the entity|Reversed or collected amount|Method|

(3) Particulars of the actual verification of other accounts receivable during the reporting period
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|
|Naught||

Of which: significant actual verification of other accounts receivable
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||Whether occurred|
|Name of the entity|Nature|Amount|Reason|Procedure|because of related|
||||||party transactions|

 Notes of write-off other accounts receivable:
(4) Other account receivable classified by account nature
Unit: RMB Yuan
||||
|-|-|-|
|Nature|Closing book balance|Opening book balance|
|Margin|4,341,696.10|1,041,399.82|
|Pretty cash|1,862,991.83|1,863,927.83|
|Freight and miscellaneous charges on|||
||3,036,100.63|2,383,900.07|
|behalf|||
|Loans|31,209,797.91||
|Amount of equity transfer|105,000,000.00||
|Land purchase and storage||64,499,000.00|
|Other intercourse funds|24,870,564.91|60,855,657.45|
|Total|170,321,151.38|130,643,885.17|

 (5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||Closing balance of|
|Name of the entity|Nature|Closing balance|Aging|Proportion%||
||||||bad debt provision|
|Lion Capital||||||
||Amount of equity|||||
|Management Co.,||105,000,000.00|1-3 months|61.65%||
||transfer|||||
|Ltd.||||||
|Ningxia Shunhao||||||
|Chemical Product|Loan|25,209,797.91|4-12 months|14.80%|1,260,489.90|
|Sales Co., Ltd.||||||

|||||||
|-|-|-|-|-|-|
|Hong Kong Hang||||||
|Fung Holdings|Intercourse funds|12,610,629.25|Over 3 years|7.40%|12,610,629.25|
|Limited Co., Ltd.||||||
|Zhuhai Yidesheng||||||
||Loan|6,000,000.00|Over 3 years|3.52%|6,000,000.00|
|Industrial Co., Ltd.||||||
|Bureau of land and||||||
||Margin|3,000,000.00|1-3 months|1.76%||
|resources of Pinghu||||||
|Total|--|151,820,427.16|--|89.13%|19,871,119.15|

 (6) Account receivable involving government subsidies
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Project of government|||Estimated recovering|
|Name of the entity||Closing balance|Closing aging||
||subsidies|||time, amount and basis|

 (7) Other account receivable derecognized due to the transfer of financial assets
(8) Amount of transfer other account receivable and assets and liabilities formed by its continuous involvement
Other notes:
10. Inventory
(1) Category of inventory
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Falling price|||Falling price||
||Book balance||Book value|Book balance||Book value|
|||reserves|||reserves||
|Raw materials|216,300,558.09|13,733,332.71|202,567,225.38|445,735,602.35|7,809,558.43|437,926,043.92|
|Goods in process|68,497,349.74||68,497,349.74|110,950,017.57||110,950,017.57|
|Inventory goods|453,400,085.67|11,583,848.86|441,816,236.81|405,756,387.77|12,476,310.64|393,280,077.13|
|Total|738,197,993.50|25,317,181.57|712,880,811.93|962,442,007.69|20,285,869.07|942,156,138.62|

 (2) Falling price reserves of inventory
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||Increase||Decrease|||
|Item|Opening balance|||||Closing balance|
|||Withdrawal|Other|Reverse or|Other||

||||||
|-|-|-|-|-|
||||write-off||
|Raw materials|7,809,558.43|5,923,774.28||13,733,332.71|
|Inventory goods|12,476,310.64|850,773.02|1,743,234.80|11,583,848.86|
|Total|20,285,869.07|6,774,547.30|1,743,234.80|25,317,181.57|

 (3) Notes of the closing balance of the inventory which includes capitalized borrowing expenses
(4) Completed unsettled assets formed from the construction contact at the period-end
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|

Other notes:
11. Assets divided as held-to-sold
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||||Estimated disposal||
|Item|Closing book value|Fair value||Estimated disposal time|
||||expense||

Other notes:
12. Non-current assets due within 1 year
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|

 Other notes:
13. Other current assets
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|The VAT deduction|17,147,074.25|8,212,679.56|
|Total|17,147,074.25|8,212,679.56|

 Other notes:
14. Available-for-sale financial assets
(1) List of available-for-sale financial assets
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Depreciation|||Depreciation||
||Book balance||Book value|Book balance||Book value|
|||reserves|||reserves||
|Available-for-sale equity|||||||
||288,700.00||288,700.00|113,558.00||113,558.00|
|instruments|||||||
|Measured by cost|288,700.00||288,700.00|113,558.00||113,558.00|
|Total|288,700.00||288,700.00|113,558.00||113,558.00|

 (2) Available-for-sale financial assets measured by fair value at the period-end
Unit: RMB Yuan
|||||
|-|-|-|-|
|Category|Available-for-sale equity|Available-for-sale debt||
||||Total|
||instruments|instruments||

(3) Available-for-sale financial assets measured by cost at the period-end
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Book balance||||Depreciation reserves||||Shareholdi|Cash|
|||||||||Closingperiod|ng|bonus of|
|Investee|Opening|||Closing|Opening||||proportion|the|
|||Increase|Decrease|||Increase|Decrease||||
||period|||period|period||||among the|reporting|
||||||||||investees|period|
|China|||||||||||
|Guangfa|||||||||||
||113,558.00|175,142.00||288,700.00|||||0.00%||
|Bank Co.,|||||||||||
|Ltd|||||||||||
|Total|113,558.00|175,142.00||288,700.00|||||--||

 (4) Changes of the impairment of the available-for-sale financial assets during the reporting period
Unit: RMB Yuan
|||||
|-|-|-|-|
|Category|Available-for-sale equity|Available-for-sale debt||
||||Total|
||instruments|instruments||

(5) Relevant notes of the fair value of the available-for-sale equity instruments which seriously fell or temporarily fell but not withdrawn the impairment provision
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|Item of|||Falling range of|Continued falling|Withdrawn|Reason of not|
||Investment cost|Closing fair value|||||
|available-for-sale|||the fair value|time (month)|impairment|withdrawn the|

|||||
|-|-|-|-|
|equity|against the cost|amount|impairment|
|instruments||||

Other notes:
The Company received0.0004248% share equity of China Guangfa Bank Co., Ltd held by the subsidiary Foshan Chengtong Paper Co., Ltd. On 31 Jul. 2015, the both parties had signed Transfer Agreement, Foshan Chengtong Paper Co., Ltd. transfer 50,856 shares of China Guangfa Bank Co., Ltd. at evaluation price of RMB288,700.00 to the Company, the balance of book value of available-for-sale financial assets increased RMB175,142.00.
15. Investment held-to-maturity
(1) List of investment held-to-maturity
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Depreciation|||Depreciation||
||Book balance||Book value|Book balance||Book value|
|||reserves|||reserves||

(2) Significant held-to-maturity investment at the period-end
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Bond item|Book value|Nominal interest rate|Actual interest rate|Due date|

 (3) Re-classified held-to-maturity investment during the reporting period
Other notes:
16. Long-term accounts receivable
(1) Long-term accounts receivable
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
||Closing balance|||Opening balance||||
||||||||Discount rate|
|Item||Bad debt|||Bad debt|||
||Book balance||Book value|Book balance||Book value|range|
|||provision|||provision|||
||490,240,600.4||490,240,600.4|||||
|Loan||||||||
||1||1|||||
||490,240,600.4||490,240,600.41|||||
|Total|||||||--|
||1|||||||

(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial assets
(3) The amount of the assets and liabilities formed by the transfer and the continues involvement of long-term accounts receivable
Other notes:
In reporting period, the Company disposes its subsidiary Foshan Chengtong Paper Co., Ltd. which shall pay RMB490,240,600.41 to the Company. In line with theCreditor’s Rights and Debts Settlement Agreement signed, since 1 Jan. 2016, the Company charge interest of capital usage once a quarter from Foshan Chengtong Paper Co., Ltd., in according to the same period of three-year benchmark lending interest rate on a regular basis issued byPeople’s Bank of China. Foshan Chengtong Paper Co., Ltd. had paid all the principal and interest before 31 Dec. 2019.
17. Long-term equity investment
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase/decrease in reporting period||||||||||
|||||Investme|||||||Closing|
||||||Adjustme|||||||
|||||nt profit||||Withdraw|||balance|
|||Additiona|||nt of||Declarati|||||
||Opening||Negative|and loss||Other||n||Closing|of|
|Investee||||||||||||
|||l|||other||on of cash|||||
||balance||investmen|recognize||equity||impairme|Other|balance|impairme|
|||investmen|||comprehe||dividends|||||
||||t|d under||changes||nt|||nt|
|||t|||nsive||or profits|||||
|||||the equity||||provision|||provision|
||||||income|||||||
|||||method||||||||
|I. Joint ventures||||||||||||
|II. Associated enterprises||||||||||||
|Guangdo||||||||||||
|ng||||||||||||
|Chengton|8,228,758|||-24,203.9|||369,125.8|||7,835,428||
|g|.48|||4|||9|||.65||
|Logistics||||||||||||
|Co., Ltd.||||||||||||
|Chengton||||||||||||
||238,518,5|||15,735,22||||||254,253,7||
|g Finance||||||||||||
||74.19|||3.61||||||97.80||
|Co., Ltd.||||||||||||
||246,747,3|||15,711,01|||369,125.8|||262,089,2||
|Subtotal||||||||||||
||32.67|||9.67|||9|||26.45||
||246,747,3|||15,711,01|||369,125.8|||262,089,2||
|Total||||||||||||
||32.67|||9.67|||9|||26.45||

Other notes:
(1) In, 2012, the subsidiary of the Company Zhuhai S.E.Z.Hongta Renheng Paper Co., Ltd. held24% of the shares of Guangdong Chengtong Logistics Co., Ltd., which had significant influences and measured by equity method. On 31 Mar. 2013, Guangdong Chengtong Logistics Co., Ltd. executed the shares withdrawal and assets reduction[(Singapore) Renheng Industry Co., Ltd. (occupied shares25%) withdrawn the equity of Guangdong Chengtong Logistics Co.,Ltd.]. Thus, the shareholding proportion of Guangdong Chengtong Logistics Co., Ltd. by the subsidiary of the Company Zhuhai S.E.Z.Hongta Renheng Paper Co., Ltd. rose from24% to32%, which still had significant influences and measured by equity method.
(2) On 23 Dec. 2013, the Company reviewed and approved Proposal on the Related Transaction of Purchasing20% Equity of Chengtong Finance Co., Ltd. held by China Project Ltd in 2013, of which the company had signed the Equity Transfer Agreement with China Paper Industry Co., Ltd., which planed to transfer20% equity of Chengtong Finance Co., Ltd. held by China Paper Industry Investment Co., Ltd. with the equity transfer price of RMB 231,450,200 after the negotiation by both parties. Chengtong financial Co., Ltd. had changed its shareholder registration on 23 Jun. 2014. Thus, since Jul. 2014, Chengtong financial Co., Ltd. held equity proportion was20%, calculated at equity method. Thus the Company held20% equity of Chengtong Finance Co., Ltd. since Jul. 2014 and be measured by equity method.
18. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable□ Inapplicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Houses and buildings|Land use right|Construction in progress|Total|
|I. Original book value|20,444,648.02|||20,444,648.02|
|1. Opening balance|20,444,648.02|||20,444,648.02|
|2. Increased amount|||||
|of the period|||||
|(1) Outsourcing|||||
|(2) Transfer of|||||
|inventory\fixed|||||
|assets\project under|||||
|construction|||||
|(3) Increased from|||||
|enterprise merger|||||
|3. Decreased|||||
|amount of the period|||||
|(1) Disposal|||||

||||
|-|-|-|
|(2) Other transfer|||
|4. Closing balance|20,444,648.02|20,444,648.02|
|II. Accumulative|||
|depreciation and|||
|accumulative|||
|amortization|||
|1. Opening balance|7,838,740.94|7,838,740.94|
|2. Increased amount|||
||660,780.06|660,780.06|
|of the period|||
|(1) Withdrawal or|||
||660,780.06|660,780.06|
|amortization|||
|3. Decreased|||
|amount of the period|||
|(1) Disposal|||
|(2) Other transfer|||
|4. Closing balance|8,499,521.00|8,499,521.00|
|III. Depreciation reserves|||
|1. Opening balance|||
|2. Increased amount|||
|of the period|||
|(1) Withdrawal|||
|3. Decreased|||
|amount of the period|||
|(1) Disposal|||
|(2) Other transfer|||
|4. Closing balance|||
|IV. Book value|||
|1. Book value of the||11,945,127.02|
||11,945,127.02||
|period-end|||
|2. Opening book||12,605,907.08|
||12,605,907.08||
|value|||

(2) Investment property adopted fair value measurement mode
□ Applicable√ Inapplicable
(3) Details of investment property failed to accomplish certification of property
Unit: RMB Yuan
||||
|-|-|-|
|Item|Book value|Reason|

 Other notes:
19. Fixed assets
(1) List of fixed assets
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||House and buildings|Machinery|Transportation|Other electronic||
|Item|||||Total|
|||equipment||equipment||
|I. Original book||||||
|value||||||
|1. Opening||||||
||1,266,791,313.14|3,430,709,549.60|61,601,986.77|99,853,876.75|4,858,956,726.26|
|balance||||||
|2. Increased||||||
||122,428,492.26|81,637,536.83|2,306,129.04|26,946,766.09|233,318,924.22|
|amount of the period||||||
|(1) Purchase|2,679,781.80|3,782,896.78|2,306,129.04|26,946,766.09|35,715,573.71|
|(2) Transfer of||||||
|project under|119,748,710.46|77,854,640.05|||197,603,350.51|
|construction||||||
|(3) Increased||||||
|from enterprise||||||
|merger||||||
|3. Decreased||||||
||189,689,233.65|750,910,717.54|9,111,490.75|26,701,454.09|976,412,896.03|
|amount of the period||||||
|(1) Disposal or||||||
||1,701,582.44|19,595,806.86|3,280,832.17|491,105.41|25,069,326.88|
|Scrap||||||
|Other transfer|187,987,651.21|731,314,910.68|5,830,658.58|26,210,348.68|951,343,569.15|
|4. Closing balance|1,199,530,571.75|2,761,436,368.89|54,796,625.06|100,099,188.75|4,115,862,754.45|
|II. Accumulative||||||
|depreciation||||||
|1. Opening|379,383,575.27|1,345,967,274.35|44,186,159.05|86,029,051.93|1,855,566,060.60|

|||||||
|-|-|-|-|-|-|
|balance||||||
|2. Increased||||||
||31,910,546.05|109,328,763.51|4,380,207.11|4,833,752.50|150,453,269.17|
|amount of the period||||||
|(1) Withdrawal|31,910,546.05|109,328,763.51|4,380,207.11|4,833,752.50|150,453,269.17|
|3. Decreased||||||
||72,389,693.23|405,865,903.40|5,540,914.68|22,412,372.92|506,208,884.23|
|amount of the period||||||
|(1) Disposal or||||||
||324,318.26|17,456,591.37|2,752,899.66|441,875.69|20,975,684.98|
|Scrap||||||
|Other transfer|72,065,374.97|388,409,312.03|2,788,015.02|21,970,497.23|485,233,199.25|
|4. Closing balance|338,904,428.09|1,049,430,134.46|43,025,451.48|68,450,431.51|1,499,810,445.54|
|III. Depreciation||||||
|reserves||||||
|1. Opening||||||
|||76,679,757.00|||76,679,757.00|
|balance||||||
|2. Increased||||||
|amount of the period||||||
|(1) Withdrawal||||||
|3. Decreased||||||
|amount of the period||||||
|(1) Disposal or||||||
|Scrap||||||
|4. Closing balance||76,679,757.00|||76,679,757.00|
|IV. Book value||||||
|1. Closing book||||||
||860,626,143.66|1,635,326,477.43|11,771,173.58|31,648,757.24|2,539,372,551.91|
|value||||||
|2. Opening book||||||
||887,407,737.87|2,008,062,518.25|17,415,827.72|13,824,824.82|2,926,710,908.66|
|value||||||

(2) List of temporarily idle fixed assets
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Accumulative|Impairment|||
|Item|Original book value|||Book value|Notes|
|||depreciation|provision|||
|Naught||||||

(3) Fixed assets leased in from financing lease
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Accumulative|||
|Item|Original book value||Impairment provision|Book value|
|||depreciation|||
|Houses and buildings|12,212,610.00|6,292,599.05||5,920,010.95|
|Machinery equipment|3,160,000.00|2,427,148.94||732,851.06|
|Total|15,372,610.00|8,719,747.99||6,652,862.01|

 (4) Fixed assets leased out from operation lease
Unit: RMB Yuan
|||
|-|-|
|Item|Closing book value|
|Naught||

(5) Details of fixed assets failed to accomplish certification of property
Unit: RMB Yuan
||||
|-|-|-|
|Item|Book value|Reason|
|||Property right certificate was under|
|Houses and buildings|123,343,609.47||
|||processing|

Other notes:
1. Zhuhai Jinji Chemicals Co., Ltd. under control of the Company, apply to the court for property attachment prior to lawsuit, required close down the inventory of RMB0.75 million of respondent, and all comprehensive buildings (Property right certificate No.YFDZZ No.C5229601) as guarantee, the net book value of comprehensive building was RMB2,449,958.04.
2. Zhuhai Huafeng Paper Co., Ltd. under control of the Company, apply to the court for property attachment prior to lawsuit, required to frozen the bank deposits of the respondent, and close down the land and machinery equipments, Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. mortgaged its housewares locate at Qianshan Jinji Road No. 508 ( QZ No.C5617917), the net book value of the houseware was RMB12,961,474.64.
20. Construction in progress
(1) List of construction in progress
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|

||||||||
|-|-|-|-|-|-|-|
|||Depreciation|||Depreciation||
||Book balance||Book value|Book balance||Book value|
|||reserves|||reserves||
|Expansion project|||||||
|for production|||||||
|||||119,774,790.92||119,774,790.92|
|workshop phase|||||||
|III|||||||
|Self -bring|||||||
|heating boiler|||||||
|environmental|||||||
|upgrading||||10,419,623.13||10,419,623.13|
|technical|||||||
|renovation|||||||
|project|||||||
|Advanced|||||||
|wastewater|||||||
|treatment and||||3,085,481.43||3,085,481.43|
|water reuse|||||||
|project|||||||
|BM1|||||||
|transmission|||||||
||3,099,922.32||3,099,922.32|2,843,941.12||2,843,941.12|
|actuator|||||||
|renovation|||||||
|Renovation of|||||||
|BM1multi-disc||||2,221,705.07||2,221,705.07|
|machine|||||||
|BM3 Tetra|||||||
||4,651,150.58||4,651,150.58|2,163,918.29||2,163,918.29|
|project|||||||
|Upscale special|||||||
|white cardboard|2,272,891.62||2,272,891.62|2,113,080.67||2,113,080.67|
|BM4 new project|||||||
|Paper cutter|||||||
|||||1,159,264.85||1,159,264.85|
|project|||||||
|Videojet ink-jet|||||||
|||||1,119,000.00||1,119,000.00|
|printer|||||||
|Huafeng OARS|||||||
||3,032,611.11||3,032,611.11||||
|library|||||||
|BM3 energy|||||||
|management|||||||
||1,364,476.46||1,364,476.46|569,613.10||569,613.10|
|center|||||||
|construction|||||||

||||||
|-|-|-|-|-|
|BM3 vacuumpump energysaving renovationproject|||||
||2,228,316.18|2,228,316.18|12,410.00|12,410.00|
|Automaticpackaging linerenovationproject|||||
||7,357,259.18|7,357,259.18|||
|Latex phase IImatching rawmaterial tankfarm project|||||
||1,025,703.02|1,025,703.02|280,301.88|280,301.88|
|PP diaphragmfilter press project|||||
||1,043,219.59|1,043,219.59|||
|Other|2,229,652.72|2,229,652.72|8,446,530.85|8,446,530.85|
|Total|28,305,202.78|28,305,202.78|154,209,661.31|154,209,661.31|

 (2) Changes of significant construction in progress
Unit: RMB Yuan
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Openingbalance||||||||Ofwhich:|||
|||||Amount|||Proporti||||||
||||||||||Accumul||||
|||||that|||on|||the|Capitaliz||
||||||Other||||ative||||
|||||transferr|||estimate|||amount|ation rate||
||Estimate||||decrease||||amount||||
|Name of||||ed to||Closing|d of the|Project||of the|of the|Capital|
||d||Increase||d amount||||of||||
|item||||fixed||balance|project|progress||capitaliz|interests|resources|
||number||||of the||||capitaliz||||
|||||assets of|||accumul|||ed|of the||
||||||period||||ed||||
|||||the|||ative|||interests|period||
||||||||||interests||||
|||||period|||input|||of theperiod|||
|Advance|||||||||||||
|d|||||||||||||
|wastewat|||||||||||||
|er|||||||||||||
||4,917,70|3,085,48|943,433.|4,028,91|||||||||
|treatmen|||||||81.93%|100||||Other|
||0.00|1.43|94|5.37|||||||||
|t and|||||||||||||
|water|||||||||||||
|reuse|||||||||||||
|project|||||||||||||
|Self|||||||||||||
||22,000,0|10,419,6|11,674,9|22,094,5|||||||||
|-bring|||||||100.43%|100||||Other|
||00.00|23.13|41.89|65.02|||||||||
|heating|||||||||||||

|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|boiler||||||||||||
|environ||||||||||||
|mental||||||||||||
|upgradin||||||||||||
|g||||||||||||
|technical||||||||||||
|renovati||||||||||||
|on||||||||||||
|project||||||||||||
|BM3||||||||||||
|Manufac||||||||||||
|turing|6,000,00|918,359.|4,090,78|5,009,14||||||||
|||||||83.49%|100||||Other|
|executio|0.00|60|1.53|1.13||||||||
|n system||||||||||||
|project||||||||||||
|Expansio||||||||||||
|n project||||||||||||
|for color||||||||||||
|printing||||||||||||
||98,100,0|119,774,|29,994,9|149,769,||||11,068,9|3,667,24|||
|producti||||||152.67%|100|||7.39%|Other|
||00.00|790.92|27.99|718.91||||82.69|3.25|||
|on||||||||||||
|worksho||||||||||||
|p phase||||||||||||
|III||||||||||||
|Upscale||||||||||||
|special||||||||||||
|white||||||||||||
||700,000,|2,113,08|159,810.||2,272,89|||||||
|cardboar||||||0.22%|0.22||||Other|
||000.00|0.67|95||1.62|||||||
|d BM4||||||||||||
|new||||||||||||
|project||||||||||||
|BM3||||||||||||
|energy||||||||||||
|manage||||||||||||
||2,572,00|569,613.|794,863.||1,364,47|||||||
|ment||||||53.05%|53.05||||Other|
||0.00|10|36||6.46|||||||
|center||||||||||||
|construct||||||||||||
|ion||||||||||||
|Automat||||||||||||
|ic||||||||||||
||7,003,00||7,357,25||7,357,25|||||||
|packagin||||||105.10%|99.00||||Other|
||0.00||9.18||9.18|||||||
|g line||||||||||||
|renovati||||||||||||

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|on|||||||||||
|project|||||||||||
|BM3|||||||||||
|vacuum|||||||||||
|pump|||||||||||
|energy|2,600,00|12,410.0|2,215,90||2,228,31||||||
|||||||85.70%|85.70|||Other|
|saving|0.00|0|6.18||6.18||||||
|renovati|||||||||||
|on|||||||||||
|project|||||||||||
|BM3|||||||||||
||18,730,0|2,163,91|2,487,23||4,651,15||||||
|Tetra||||||24.83%|24.83|||Other|
||00.00|8.29|2.29||0.58||||||
|project|||||||||||
|BM1|||||||||||
|transmis|||||||||||
|sion|2,600,00|2,843,94|255,981.||3,099,92||||||
|||||||119.23%|99.00|||Other|
|actuator|0.00|1.12|20||2.32||||||
|renovati|||||||||||
|on|||||||||||
|PP|||||||||||
|diaphrag|||||||||||
||1,400,00||1,043,21||1,043,21||||||
|m filter||||||74.52%|74.52|||Other|
||0.00||9.59||9.59||||||
|press|||||||||||
|project|||||||||||
||865,922,|141,901,|61,018,3|180,902,|22,017,2|||11,068,9|3,667,24||
|Total||||||--|--|||--|
||700.00|218.26|58.10|340.43|35.93|||82.69|3.25||

(3) List of the withdrawal of the impairment provision of the construction in progress
Unit: RMB Yuan
||||
|-|-|-|
|Item|Withdrawn amount|Reason|
|Naught|||

Other notes:
21. Engineering material
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|

22. Liquidation of fixed assets
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|

 Other notes:
23. Productive biological assets
(1) Productive biological assets adopted cost measurement mode
□ Applicable√ Inapplicable
(2) Productive biological assets adopted fair value measurement mode
□ Applicable√ Inapplicable
24. Oil and gas assets
□ Applicable√ Inapplicable
25. Intangible assets
(1) List of intangible assets
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|Item|Land use right|Patent right|Non-patent right|Software and others|Total|
|I. Original book||||||
|value||||||
|1. Opening||||||
||160,462,312.76||20,181,101.40|6,891,264.42|187,534,678.58|
|balance||||||
|2. Increased||||||
||432,003.89||9,981,324.61|1,619,958.84|12,033,287.34|
|amount of the period||||||
|(1) Purchase|432,003.89|||1,619,958.84|2,051,962.73|
|(2) Internal R||||||
||||9,981,324.61||9,981,324.61|
|&D||||||
|(3) Increased||||||
|from enterprise||||||
|merger||||||
|3. Decreased||||||
||29,210,743.54||3,409,273.96|323,937.14|32,943,954.64|
|amount of the period||||||

||||||
|-|-|-|-|-|
|(1) Disposal|||||
|Other transfer|29,210,743.54|3,409,273.96|323,937.14|32,943,954.64|
|4. Closing|||||
||131,683,573.11|26,753,152.05|8,187,286.12|166,624,011.28|
|balance|||||
|II. Total accrued|||||
|amortization|||||
|1. Opening|||||
||43,762,368.31|12,808,786.63|1,699,359.30|58,270,514.24|
|balance|||||
|2. Increased|||||
||2,656,181.13|1,598,753.86|890,038.74|5,144,973.73|
|amount of the period|||||
|(1)|||||
||2,656,181.13|1,598,753.86|890,038.74|5,144,973.73|
|Withdrawal|||||
|3. Decreased|||||
||3,124,711.31|1,676,210.39|39,096.43|4,840,018.13|
|amount of the period|||||
|(1) Disposal|||||
|Other transfer|3,124,711.31|1,676,210.39|39,096.43|4,840,018.13|
|4. Closing|||||
||43,293,838.13|12,731,330.10|2,550,301.61|58,575,469.84|
|balance|||||
|III. Depreciation|||||
|reserves|||||
|1. Opening|||||
|balance|||||
|2. Increased|||||
|amount of the period|||||
|(1)|||||
|Withdrawal|||||
|3. Decreased|||||
|amount of the period|||||
|(1) Disposal|||||
|4. Closing|||||
|balance|||||
|IV. Book value|||||
|1. Closing book|||||
||88,389,734.98|14,021,821.95|5,636,984.51|108,048,541.44|
|value|||||

||||||
|-|-|-|-|-|
|2. Opening|||||
||116,699,944.45|7,372,314.77|5,191,905.12|129,264,164.34|
|book value|||||

The proportion of the intangible assets formed from the internalR&D through the Company amount the balance of the intangible assets at the period-endwas12.98%.
(2) Details of fixed assets failed to accomplish certification of land use right
Unit: RMB Yuan
||||
|-|-|-|
|Item|Book value|Reason|

 Other notes:
26.R&D expenses
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||Opening||||Closing|
|Item||Increase|Decrease|||
||balance||||balance|
|New product|12,556,242.8|||12,556,242.8||
|development|8|||8||
||12,556,242.8|||12,556,242.8||
|Total||||||
||8|||8||

Other notes:
Opening balance ofR&D expense was book value of the disposal of subsidiary of the Company
Foshan Chengtong Paper Co., Ltd., due to theR&D activity was suspended; all of them were
transfer into theR&D expense of the Company in reporting period.
27. Goodwill
(1) Original book value of goodwill
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Name of the|||||
|investees or the|||||
||Opening balance|Increase|Decrease|Closing balance|
|events formed|||||
|goodwill|||||
|Zhuhai S.E.Z.|||||
|Hongta Renheng|9,129,025.01|||9,129,025.01|
|Paper Co., Ltd.|||||
|Zhuhai Jinji|||||
|Chemicals Co.,|2,418,280.28|||2,418,280.28|
|Ltd.|||||

||||
|-|-|-|
|Total|11,547,305.29|11,547,305.29|

 (2) Impairment provision of goodwill
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Name of the|||||
|investees or the|||||
||Opening balance|Increase|Decrease|Closing balance|
|events formed|||||
|goodwill|||||

Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill
impairment losses:
Other notes:
On 30 Jun. 2009, the Company obtained the control of Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. through business combination not under the same control, the combination costs was RMB808.4487 million, obtained the fair value of the identifiable net assets of the Company was RMB799.319,7 million. Combination cost being large than the fair value of the identifiable net assets balance formed goodwill RMB9129025.01. At the end of the period, combine the analysis of the present value of the expected future cash flow of the assets, the evaluation of assets group of the two production line equipment and recoverable amount; there was no sign of goodwill impairment, thus no provision for impairment loss.
On 1 Jul. 2012, the Company obtained the control of Zhuhai Jinji Chemicals Co., Ltd. through business combination not under the same control, the combination costs was RMB69,000,000.00, obtained the fair value of the identifiable net assets of the Company was RMB66,581,719.72, Combination cost being large than the fair value of the identifiable net assets balance formed goodwill RMB2,418,280.28. At the end of the period, combine the analysis of the present value of the expected future cash flow of the assets, the evaluation of assets group of the two production line equipment and recoverable amount; there was no sign of goodwill impairment, thus no provision for impairment loss.
28. Long-term unamortized expenses
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||Amortization|||
|Item|Opening balance|Increase||Decrease|Closing balance|
||||amount|||
|Decoration expense||||||
||510,136.71||270,646.68||239,490.03|
|for rent-in plant||||||
|Fee for technical||||||
|||436,513.00|29,100.88||407,412.12|
|service||||||
|Maintaining||||||
|renovation of||2,751,700.01|494,830.85||2,256,869.16|
|construction||||||

||||||
|-|-|-|-|-|
|project|||||
|Total|510,136.71|3,188,213.01|794,578.41|2,903,771.31|

 Other notes:
29. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Item|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||difference|assets|difference|assets|
|Assets impairment|||||
||159,371,305.68|27,822,494.18|173,726,182.78|31,651,663.16|
|provision|||||
|Internal trading|||||
||2,953,255.99|632,811.37|||
|unrealized profits|||||
|Estimated unpaid salary|||1,248,945.82|312,236.45|
|Withholding sales|||||
||9,155,596.07|1,373,339.41|6,921,826.10|1,038,273.92|
|agency fee|||||
|Accrued liabilities|837,738.20|125,660.73|6,961,893.98|1,044,284.10|
|Withholding|||||
|transportation fee of|21,702,217.24|3,255,332.59|8,000,517.69|1,200,077.64|
|paper|||||
|Total|194,020,113.18|33,209,638.28|196,859,366.37|35,246,535.27|

 (2) Deferred income tax liabilities had not been off-set
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Item|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||difference|liabilities|difference|liabilities|
|Added value of|||||
|evaluation of assets not|||||
||17,756,549.66|2,645,810.47|18,703,893.34|2,805,584.00|
|under same control|||||
|enterprise combination|||||
|Net amount of change in|||||
|fair value of trading|1,528,810.76|229,321.61|||
|financial assets|||||
|Total|19,285,360.42|2,875,132.08|18,703,893.34|2,805,584.00|

(3) Deferred income tax assets or liabilities listed by net amount after off-set
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Mutual set-off amount of|Amount of deferred||Amount of deferred|
||||Mutual set-off amount of||
||deferred income tax|income tax assets or||income tax assets or|
|Item|||deferred income tax||
||assets and liabilities at|liabilities after off-set at||liabilities after off-set at|
||||assets and liabilities||
||the period-end|the period-end||the period-begin|
|Deferred income tax||33,209,638.28||35,246,535.27|
|assets|||||
|Deferred income tax||2,875,132.08||2,805,584.00|
|liabilities|||||

(4) List of unrecognized deferred income tax assets
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Deductible losses|88,387,629.70|301,542,428.22|
|Total|88,387,629.70|301,542,428.22|

 (5) Deductible losses of unrecognized deferred income tax assets will due the following years Unit: RMB Yuan
|||||
|-|-|-|-|
|Years|Closing balance|Opening balance|Notes|
|2017|75,181,411.76|||
|2018|13,206,217.94|||
|Total|88,387,629.70||--|

 Other notes:
30. Other non-current assets
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Prepayment of equipment|7,519,746.40|7,409,367.68|
|Total|7,519,746.40|7,409,367.68|

31. Short-term loans
(1) Category of short-term loans
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Pledge loan|272,724,440.16|406,720,259.72|
|Mortgage loan|||
|Guaranteed loan|510,000,000.00|502,216,032.75|
|Credit loan|130,000,000.00|78,952,000.00|
|Trade financing||142,378,794.76|
|Total|912,724,440.16|1,130,267,087.23|

 Notes of short-term loans category
(2) List of the short-term loans overdue but not return
The total amount of the overdue but not return short-term borrowings at the period-end was of RMB 000, of which the situation of the significant overdue but not return short-term borrowings as follows:
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Entity|Closing balance|Borrowing rate|Overdue time|Overdue rate|

 Other notes:
32. Financial liabilities measured by fair value and the changes included in the current gains and losses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Financial liabilities specified as measured|||
|by fair value and the changes included in|212,689.24||
|the current gains and losses|||
|Total|212,689.24||

Other notes:
Financial liabilities measured by fair value and the changes included in the current gains and losses was theCompany’s subsidiary, Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. signed Forward Exchange Rate Contract with the bank, considering 31 Dec. 2015 as the fair value of exchange rate calculation.
33. Derivative financial liabilities
□ Applicable√ Inapplicable
34. Notes payable
Unit: RMB Yuan
||||
|-|-|-|
|Category|Closing balance|Opening balance|
|Bank acceptance bill|127,562,392.61|68,436,123.39|
|Total|127,562,392.61|68,436,123.39|

 The total amount of the due but not pay notes payable at the period-end was of RMB000.
35. Accounts payable
(1) List of accounts payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Payment of material|271,218,660.09|357,662,340.57|
|Payment of equipment|25,102,687.10|6,321,955.99|
|Other|69,234,411.70|78,844,070.15|
|Total|365,555,758.89|442,828,366.71|

 (2) Notes of the accounts payable aging over one year
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Unpaid/ Un-carry-over reason|
|Shenzhen Huayu Trade Development Co.,|||
||4,089,569.42|Unsettled|
|Ltd.|||
|Qingdao Shuncheng Investments Co., Ltd.|1,530,733.65|Unsettled|
|Total|5,620,303.07|--|

Other notes:
36. Advance from customers
(1) List of advance from customers
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Within 1 year|8,449,921.92|21,178,860.84|
|1-2 years|727,234.35|1,624,309.26|
|2-3 years|640,213.45|428,840.64|
|Total|9,817,369.72|23,232,010.74|

(2) Significant advance from customers aging over one year
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Unpaid/ Un-carry-over reason|
|Shenzhen Jiajing Paper Products Co., Ltd.|354,387.02|Unsettled|
|Foshan Nanhai District Pingzhou Pingbei|||
|Yingui Paper Products Operation|200,000.00|Unsettled|
|Department|||
|Zhuhai Jingsheng Trade Development Co.,|||
||223,289.41|Unsettled|
|Ltd.|||
|Total|777,676.43|--|

(3) Particulars of settled but unfinished projects formed by construction contract at period-end.
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|

Other notes:
37. Payroll payable
(1) List of Payroll payable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|I. Short-term salary|32,283,733.94|193,528,402.21|192,421,009.53|33,391,126.62|
|II. Post-employment|||||
|benefit-defined|38,418.69|13,963,043.67|14,001,462.36||
|contribution plans|||||
|III. Termination benefits||1,987,658.17|1,987,658.17||
|Total|32,322,152.63|209,479,104.05|208,410,130.06|33,391,126.62|

 (2) List of Short-term salary
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|1. Salary, bonus,|||||
||25,029,372.58|166,384,369.63|165,664,524.94|25,749,217.27|
|allowance, subsidy|||||
|2. Employee welfare||10,517,415.97|10,517,415.97||

||||||
|-|-|-|-|-|
|3. Social insurance|36,681.00|7,710,688.63|7,747,369.63||
|Including: 1.|||||
|Medical insurance|34,456.31|6,112,037.50|6,146,493.81||
|premiums|||||
|Work-related|||||
||1,761.25|841,602.31|843,363.56||
|injury insurance|||||
|Maternity|||||
||463.44|757,048.82|757,512.26||
|insurance|||||
|4. Housing fund|24,147.66|5,438,969.96|5,170,273.62|292,844.00|
|5. Labor union budget|||||
|and employee education|7,193,532.70|3,476,958.02|3,321,425.37|7,349,065.35|
|budget|||||
|Total|32,283,733.94|193,528,402.21|192,421,009.53|33,391,126.62|

 (3) List of drawing scheme
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Basic pension benefits|27,187.95|13,017,824.19|13,045,012.14||
|Unemployment insurance|11,230.74|945,219.48|956,450.22||
|Total|38,418.69|13,963,043.67|14,001,462.36||

Other notes:
1. Among the decrease of payroll payable in reporting period, mainly was the disposal of subsidiary, Foshan Chengtong Paper Co., Ltd., the roll out bad debt provision was the change of consolidated scope. The note of disposal of subsidiary, see Note. VIII. Change in consolidated scope
38. Taxes payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|VAT|22,744,304.43||
|Business tax|2,205.00|294,497.66|
|Corporate income tax|6,341,081.18|12,629,131.42|
|Personal income tax|172,648.12|158,712.09|
|Urban maintenance and construction tax|1,718,019.44|1,609,791.92|
|Property tax|3,646,294.99|3,676,497.57|

||||
|-|-|-|
|Education Surcharge|1,228,217.17|1,157,379.13|
|Dike fee|154,587.98|147,845.87|
|Stamp tax|287,791.21|1,535,611.28|
|Land use tax|1,275,706.96|810,706.96|
|Total|37,570,856.48|22,020,173.90|

 Other notes:
39. Interest payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Enterprise bond interest|9,031,776.00|5,928,888.96|
|Interest payable of short-term loans|1,652,708.26|7,106,782.15|
|Other||16,780,833.35|
|Total|10,684,484.26|29,816,504.46|

 Particulars of significant overdue unpaid interest:
Unit: RMB Yuan
||||
|-|-|-|
|Entity|Overdue amount|Overdue reason|

 Other notes:
40. Dividends payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Common stock dividends|11,019,644.79|170,913.00|
|Total|11,019,644.79|170,913.00|

 Notes: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
Closing balance of interest payable mainly was the profits of minority shareholder of Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd.
41. Other accounts payable
(1) Other accounts payable listed by nature of the account
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Pledged and margin|10,042,416.81|6,512,189.60|

||||
|-|-|-|
|Prepayment|5,569,221.82|6,430,368.16|
|Capital of related parties|5,000,000.00|1,100,000.00|
|Final payment of engineering|1,155,901.59|1,809,212.47|
|Other|2,993,931.08|5,408,381.09|
|Total|24,761,471.30|21,260,151.32|

 (2) Other significant accounts payable with aging over one year
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Unpaid/ Un-carry-over reason|
|||Logistics margin, transaction is under|
|Yunan Yuxi Tengyin Logistics Co., Ltd.|1,050,000.00||
|||processing|
|||Final payment of engineering, settlement|
|Changsha Chaint Machinery Co., Ltd.|768,000.00||
|||period not arrived|
|Guangdong Chengtong Logistics Co., Ltd.|570,384.98|Magin and payment on behalf|
|||Logistics margin, transaction is under|
|Eastern Sunday Logistics Co., Ltd.|500,000.00||
|||processing|
|Total|2,888,384.98|--|

Other notes:
42. Liabilities classified as holding for sale
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|

 Other notes:
43. Non-current liabilities due within 1 year
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Long-term account payable due within 1|||
|||418,750,000.00|
|year|||
|Total||418,750,000.00|

 Other notes:
The Opening balance was the RMB 500 million provided by China Chengtong Holdings Group Ltd. to the Company from the funds raised through the medium-term notes issued by China
Chengtong. Deducting investors chose to exercise the re-sell option and the re-sell amount
RMB81.25 million, the due date for the relevant MTNs would be 24 Mar. 2015; the payment had
been completed. There was no closing balance in the reporting period.
44. Other current-liabilities
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|

 Changes on short term bonds payable:
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Overflow|||
|||||||The|Withdraw||Pay in||
|Name of|Book|||Issue|Opening|||discount||Closing|
|||Issue date|Period|||current|interest at||current||
|the bond|value|||amount|balance|||amortizati||balance|
|||||||issue|par||period||
|||||||||on|||

Other notes:
45. Long-term loan
(1) Category of long-term loan
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|

 Notes of short-term loans category:
Other notes including interest rate range:
46. Bonds payable
(1) Bonds payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Corporation bonds|796,365,205.30|794,912,384.37|
|Medium-term notes of the bank|199,222,756.99||
|Total|995,587,962.29|794,912,384.37|

 (2) Changes on bonds payable (not including other financial instrument classified as preferred stock and perpetual capital securities of financial liabilities)
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|12Huabao|800,000,0|2012/11/2||791,700,0|794,912,3||46,399,88|1,472,820||796,365,2|
||||5 years||||||20,000.00||
|Bebt|00.00|6||00.00|84.37||5.59|.93||05.30|
|15Huabao|200,000,0|||199,100,0||199,100,0|4,455,452|122,756.9||199,222,7|
|||2015/7/31|3 years||||||||
|MTN001|00.00|||00.00||00.00|.05|9||56.99|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||990,800,0|794,912,3|199,100,0|50,855,33|1,595,577||995,587,9|
|Total|--|--|--||||||20,000.00||
|||||00.00|84.37|00.00|7.64|.92||62.29|

 (3) Note to conditions and time of share transfer of convertible bonds
(4) Note to other financial instrument classified as financial liabilities
Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding issued at period-end
Change list of preferred stock, perpetual capital securities and other financial instruments outstanding issued at period-end
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|Financial|Opening period||Increase||Decrease||Closing period||
|instruments|||||||||
|outstanding|Amount|Book value|Amount|Book value|Amount|Book value|Amount|Book value|
|issued|||||||||

Notes to the basis of other financial instrument classified as financial liabilities
Other notes:
1. In accordance with the Resolution Made at the 6th Session of the 5th Board of Directors on 16 Dec. 2012, and the Resolution Made at the First SpecialShareholders’ General Meeting for 2012 on 4 Jan. 2012, as well as the approval of CSRC with the Reply on Approving the Public Issuance of Corporate Bonds for Foshan Huaxin Packaging Co., Ltd. (ZJXK[2012] No. 725) on 28 May 2012, the Company publicly issued 8 million pieces of corporate bonds with the par value of RMB100 per piece by adopting the ways of online public issuance for the public investors and off-line inquiry placing for the institution investors, with the nominal rate of5.8%, and the term of bonds was five years from the date of issuance, and the raised capital after deducting the bond issuance underwriting fees and custodian fees was RMB791,700,000.00, the bonds using simple interest on yearly basis, regardless of the compound interest which been paid once a year, the final phase of interest is paid together with the principal redemption, and the interest period started from 26 Nov. 2012.
2. In line with the Company held the Second Special Meeting of the General Shareholders on 10 Nov. 2014, the meeting reviewed and approved the Proposal of the Issue of Medium-Term Notes which agreed to issue no more than RMB five hundred million of the medium-term notes. The Company received the Acceptance of Registration Notice ZSXZ[2015] No. MTN253 which agreed to the Company's registration of Medium-Term Notes, which issued by NAFMII. The Company's total issue amount was RMB200, 000,000.00, coupon rate5.28%, the limitation of Medium-Term Notes was 3 years, and the raised capital after deducting the bond issuance underwriting fees and custodian fees was RMB199,100,000.00, the bonds using simple interest on yearly basis, regardless of the compound interest, which been paid once a year, the final phase of interest is paid together with the principal redemption, and the interest period started from 31 Jul.
47. Long-term payable
(1) Long-term payable listed by nature of the account
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Finance lease|7,630,748.49|10,506,735.99|

 Other notes:
48. Long term payroll payable
(1) List of long term payroll payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|

 (2) Changes of defined benefit plans
Present worth of defined benefit plans obligation:
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|

 Plan assets:
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|

 Net liabilities (net assets) of defined benefit plans
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|

 Notes to the influence of the content and related risk of defined benefit plans to the future cash flows, time and uncertainty of the Company:
Notes to analysis results of major actuarial assumptions and sensibility of defined benefit plans
Other notes:
49. Special payable
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|Formation reasons|

 Other notes:
50. Accrued liabilities
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|Closing balance|Opening balance|Formation reasons|
||||Claim due to the quality|
|Product quality assurance|1,758,780.68|7,431,237.75||
||||problem in sale of product|
|Total|1,758,780.68|7,431,237.75|--|

 Other notes, including related important assumptions and estimates of accrued liabilities:
51. Deferred income
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|Formation reasons|
|Government||||||
||6,648,333.32|4,066,986.00|1,514,413.44|9,200,905.88||
|subsidies||||||
|Total|6,648,333.32|4,066,986.00|1,514,413.44|9,200,905.88|--|

 Items involved in government subsidies:
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||||Amount accrued||||
|||Amount of newly||||Related to the|
|Item|Opening balance||in non-business|Other changes|Closing balance||
|||subsidy||||assets/ income|
||||income||||
|Renovation|||||||
|project of the|||||||
|information|||||||
|system of||||||Related to the|
||800,000.00||16,000.00||784,000.00||
|paper-making||||||assets|
|enterprise energy|||||||
|management|||||||
|center (1)|||||||
|Project of the|||||||
|information|||||||
|system of|||||||
|||||||Related to the|
|paper-making|1,050,000.00||350,000.00||700,000.00||
|||||||assets|
|enterprise energy|||||||
|management|||||||
|center (1)|||||||
|No. 1 paper|||||||
|machine update||||||Related to the|
||240,000.00||||240,000.00||
|& renovation||||||assets|
|project (2)|||||||
|Liquid paper|||||||
|||||||Related to the|
|renovation|338,333.32||35,000.04||303,333.28||
|||||||assets|
|project (3)|||||||

|||||||
|-|-|-|-|-|-|
|Funds for||||||
|energy-saving||||||
||||||Related to the|
|and|900,000.00||300,000.00|600,000.00||
||||||assets|
|emission-reductio||||||
|n (4)||||||
|Renovation||||||
|project of the||||||
|information|||||Related to the|
||1,400,000.00|||1,400,000.00||
|system of energy|||||assets|
|management||||||
|center (5)||||||
|Steam||||||
|condensation||||||
||||||Related to the|
|water recycling|1,920,000.00|||1,920,000.00||
||||||assets|
|and energy saving||||||
|projects (5)||||||
|Subsidy of||||||
|improvement of|||||Related to the|
|||3,496,986.00|699,413.40|2,797,572.60||
|Zhuhai motor|||||assets|
|efficiency (6)||||||
|Subsidy of latex||||||
|phase II||||||
|production line|||||Related to the|
|||570,000.00|114,000.00|456,000.00||
|technological|||||assets|
|transformation||||||
|(7)||||||
|Total|6,648,333.32|4,066,986.00|1,514,413.44|9,200,905.88|--|

 Other notes:
1. 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 RMB800,000.00 for the information system renovation project of the Paper-making Enterprises Energy. The system had been put into use in 2015, which amortized in line with asset depreciation period. In 2013, the Company received the government subsidiary RMB1.4 million, and the system had been put into use in 2014, which amortized in line with asset depreciation period, and the system had been put into use in 2014, which amortized in line with asset depreciation period.
2. Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. gained the government grant of RMB240,000.00 for No. 1 paper machine update& renovation project in Oct. 2012. Because the
issue has not been used in the reporting period, it was not calculated into non-operating income.
3. RMB350,000 of government subsidies for Tetra liquid paper renovation project in Nov. 2013,
the system was put in use, and was written off according to their estimated depreciation period
from 2014.
4. RMB1.2 million of special fund for Tetra liquid paper renovation project in Nov. 2013, the system was put in use, and was written off according to their estimated depreciation period from 2014.
5.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 RMB1.92 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, 2013 because the issue has not been used in the reporting period, it was not calculated into non-operating income.
6. In line with Issue of the Announcement on Rules for the Implementation of Subsidiary for Improvement of Motor Efficiency of Guangdong Province (YCG[2013] No. 389, Issue of the Announcement on Rules for the Implementation of Subsidiary for Improvement of Motor Efficiency of Zhuhai (ZKGMX[2014] No. 392 issued by Guangdong Finance Department and Economic and Information Council of Guangdong. The Company's subsidiary Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. received RMB1, 813,877.00 of Government Subsidy for Improvement of Motor Efficiency. Zhuhai Huafeng Co., Ltd.. The Subsidiary of Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd., had received RMB1, 683,109.00 of Government Subsidy for Improvement of Motor Efficiency. The purchase of equipment had been put into use, and was written off according to their estimated depreciation period from this year.
7. In line with the spirit of documents of Issue of Announcement on Advice on Implementation of Promoting Industry Structure Adjustment(ZHF[2010] No. 162, Interim Measure of Zhuhai Technology Innovation Assets Management (ZKGMX[2013] No. 259), Zhuhai Jinji Chemical Co., Ltd. under the control of the Company, received government subsidiary RMB570,000. Latex phase II Project had been completed and put into use, and was written off according to their estimated depreciation period from reporting period.
52. Other non-current liabilities
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|

 Other notes:
53. Share capital
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|||Increase/decrease (+/-)||||||
||Opening|||Capitalization|||Closing|
|||Newly issue||||||
||balance||Bonus shares|of public|Other|Subtotal|balance|
|||share||||||
|||||reserves||||
|The sum of|505,425,000.00||||||505,425,000.00|
|shares||||||||

Other notes:
54. Other equity instruments
(1) Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding issued at period-begin
(2) Change list of preferred stock, perpetual capital securities and other financial instruments outstanding issued at period-begin
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|Financial|Opening period||Increase||Decrease||Closing period||
|instruments|||||||||
|outstanding|Amount|Book value|Amount|Book value|Amount|Book value|Amount|Book value|
|issued|||||||||

Changes, reason of change and basis of relevant accounting treatment of other equity instruments in reporting
period:
Other notes:
55. Capital reserves
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Capital premium|256,362,525.38|||256,362,525.38|
|Other capital reserves|459,848.04|||459,848.04|
|Total|256,822,373.42|||256,822,373.42|

 Other notes, including changes and reason of change:
56. Treasury stock
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|

 Other notes, including changes and reason of change:
57. Other comprehensive income
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|||Reporting period||||||
||Opening|Amount|Less: Amount|Less:|After-tax|After-tax|Closing|
|Item||||||||
||balance|incurred|transferred|income tax|attribute to|attribute to|balance|
|||before|into profit and|expense|the parent|minority||

||||||||
|-|-|-|-|-|-|-|
|||income tax|loss in the|company|shareholder||
||||current period||||
||||that||||
||||recognized||||
||||into other||||
||||comprehensive||||
||||income in||||
||||prior period||||
|I. Other comprehensive no longer||||||169,714.3|
||169,714.39||||||
|reclassified into profits or losses||||||9|
|Shares in other comprehensive|||||||
|income no longer reclassified into||||||169,714.3|
||169,714.39||||||
|profits or losses in future in investee||||||9|
|entity under the equity method|||||||
||169,714.39|||||169,714.39|
|total|||||||

 Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow hedging gains and losses transfer into arbitraged items:
58. Special reserves
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|

 Other notes, including changes and reason of change:
59. Surplus reserves
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Statutory surplus|||||
||187,280,095.40|||187,280,095.40|
|reserves|||||
|Total|187,280,095.40|||187,280,095.40|

 Other note, including changes and reason of change
60. Retained profits
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Last period|
|Opening balance of retained profits beforeadjustments|||
||863,066,727.26|787,821,828.63|
|List of adjustment of opening retained profits:|863,066,727.26|787,821,828.63|

||||
|-|-|-|
|(Increase +, decrease -)|||
|Opening balance of retained profits afteradjustments|863,066,727.26||
|Add: Net profit attributable to owners of theCompany|||
||133,094,696.66|83,284,859.23|
|Less: Withdrawal of statutory surplus reserves||8,039,960.60|
|Dividend of common stock payable|7,581,375.00||
|Closing retained profits|988,580,048.92|863,066,727.26|

 List of adjustment of opening retained profits:
1) RMB000 opening retained profits was affected by retrospective adjustment conducted according to the Accounting Standards for Business Enterprises and relevant new regulations.
2) RMB000 opening retained profits was affected by changes on accounting policies.
3) RMB000 opening retained profits was affected by correction of significant accounting errors.
4) RMB000 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB000 opening retained profits was affected totally by other adjustments.
61. Revenues and operating costs
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Reporting period||Same period of last year||
|Item|||||
||Revenue|Operating costs|Revenue|Operating costs|
|Main operations|3,203,045,668.83|2,667,631,646.77|3,397,014,091.45|2,880,124,643.42|
|Other operations|78,998,326.29|65,531,889.36|155,684,624.72|90,615,768.75|
|Total|3,282,043,995.12|2,733,163,536.13|3,552,698,716.17|2,970,740,412.17|

 62. Business tax and surcharges
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Business tax|379,975.11|3,617,483.37|
|Urban maintenance and construction tax|8,583,319.05|5,515,184.19|
|Education Surcharge|6,144,296.15|3,956,565.52|
|Dike fee|1,217,563.33|1,506,961.90|
|Total|16,325,153.64|14,596,194.98|

 Other notes:
63. Sales expenses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Salary and benefits|12,957,318.34|13,642,924.09|
|Sales agency fee|8,525,942.10|6,149,876.04|
|Business entertainment fees|6,502,420.81|6,493,157.23|
|Packing charges|9,227,310.96|8,975,622.62|
|Warehousing fees|4,468,599.38|3,796,237.56|
|Transport fees|127,476,312.11|113,506,495.17|
|Office expenses|1,232,279.29|958,106.80|
|Other|2,010,155.44|11,015,048.94|
|Total|172,400,338.43|164,537,468.45|

 Other notes:
64. Administrative expenses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Salary and benefits|49,783,049.42|47,858,720.68|
|Social insurance|18,426,517.99|16,608,351.81|
|Housing fund|4,551,491.31|4,431,864.70|
|Tax|10,769,454.82|12,718,284.85|
|Amortization of depreciation fee|15,870,608.84|15,273,193.09|
|Office expenses|4,173,721.57|1,868,436.49|
|R&D expenses|21,373,458.01|4,139,248.05|
|Employ agency fee|5,500,609.79|5,842,229.27|
|Water & electricity fees|3,109,682.52|4,224,297.62|
|Rental fee|1,818,076.44|2,875,182.68|
|Business travel charges|2,685,182.34|2,452,278.24|
|Business entertainment fees|2,144,447.74|2,587,432.32|
|Long-term unamortized expenses|1,028,872.80|1,028,872.80|
|Material consumption|5,233,346.30|4,996,383.22|
|Other|11,650,672.58|13,759,926.20|
|Total|158,119,192.47|140,664,702.02|

65. Financial expenses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Interest expenses|112,147,615.10|121,068,027.97|
|Less: Interest income|8,764,125.77|2,037,453.21|
|Exchange gains and losses|24,566,838.57||
|Other|5,921,727.83|8,289,745.01|
|Total|133,872,055.72|126,985,102.16|

 Other notes:
66. Asset impairment loss
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|I. Bad debt loss|21,592,987.90|2,432,129.09|
|II. Inventory falling price loss|5,031,312.50|-9,127,522.04|
|Total|26,624,300.40|-6,695,392.95|

 Other notes:
67. Gains on the changes in the fair value
Unit: RMB Yuan
||||
|-|-|-|
|Source|Reporting period|Same period of last year|
|2. Financial assets measured by fair value|||
|and the changes be included in the current|1,741,500.00||
|profits and losses|||
|Financial liabilities measured by fair value|||
|and the changes included in the current|-212,689.24||
|gains and losses|||
|Total|1,528,810.76||

Other notes:
Profits from change in fair value were theCompany’s subsidiary Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. signed Forward Exchange Rate Contract with the bank, locking the exchange rate and the closing rate differences.
68. Investment income
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Long-term equity investment income|||
||15,711,019.67|7,690,138.47|
|accounted by equity method|||
|Investment income arising from disposal of|||
||112,969,816.59||
|long-term equity investments|||
|Investment income received from disposal of|||
|financial assets measured by fair value and the|||
||-7,690,593.72||
|changes be included in the current profits and|||
|losses during holding period|||
|Investment income received from disposal of|||
||176,323.79|4,796,692.93|
|available-for-sale financial assets|||
|Total|121,166,566.33|12,486,831.40|

 Other notes:
Investment income arising from disposal of long-term equity investments was the investment income from theCompany’s disposal of equity of its subsidiary Foshan Chengtong Paper Co., Ltd., for details, see Note VIII. Change in consolidated scope, 1. Disposal of subsidiary.
69. Non-operating gains
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Recorded in the amount of the|
|Item|Reporting period|Same period of last year||
||||non-recurring gains and losses|
|Total gains from disposal of|2,265,238.32|25,556,368.05||
||||2,265,238.32|
|non-current assets||||
|Including: Gains from disposal||||
||1,156,376.92|1,727,368.05|1,156,376.92|
|of fixed assets||||
|Gains from disposal of||||
||1,108,861.40|23,829,000.00|1,108,861.40|
|intangible assets||||
|Gains from debt restructuring|2,288,256.01||2,288,256.01|
|Government subsidies|16,481,293.41|14,044,743.94|16,481,293.41|
|Other|2,694,408.97|4,347,280.58|2,694,408.97|
|Total|23,729,196.71|43,948,392.57|23,729,196.71|

 Government subsidies recorded into current profits and losses
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Whether|Whether||||
|||||||||Related to the|
||Distribution|Distribution||influence the|Special|Reporting|Same period||
|Item|||Nature/type|||||assets/|
||entity|reason||profits or|subsidy or|period|of last year||
|||||||||income|
|||||losses of the|not||||

||||||||||
|-|-|-|-|-|-|-|-|-|
|||||year or not|||||
||||Subsidy||||||
||||gained due to||||||
|Amortization|||confirming||||||
|of|Zhuhai||with local||||||
|government|Municipal||government|||||Related to the|
|||Subsidy||Yes|No|1,514,413.44|2,161,666.68||
|subsidies in|Finance||attracting|||||assets|
|deferred|Bureau||investment||||||
|revenue|||and local||||||
||||supportive||||||
||||policy etc.||||||
||||Subsidy||||||
||||gained due to||||||
|Special funds|||confirming||||||
|of promoting|Zhuhai||with local||||||
|import|Municipal||government|||||Related to the|
|||Subsidy||Yes|No|993,624.00|2,016,485.00||
|(Import|Finance||attracting|||||income|
|discount|Bureau||investment||||||
|interest)|||and local||||||
||||supportive||||||
||||policy etc.||||||
||||Subsidy||||||
||||gained due to||||||
|Import|||||||||
||||confirming||||||
|discount|||||||||
||Zhuhai||with local||||||
|interest for|||||||||
||Municipal||government|||||Related to the|
|promote &||Subsidy||Yes|No|2,182,820.00|2,338,500.00||
||Finance||attracting|||||income|
|encourage|||||||||
||Bureau||investment||||||
|important|||||||||
||||and local||||||
|goods|||||||||
||||supportive||||||
||||policy etc.||||||
||||Subsidy||||||
||||gained due to||||||
||||confirming||||||
|The special|||||||||
||Zhuhai||with local||||||
|matching|||||||||
||Municipal||government|||||Related to the|
|funds for||Subsidy||Yes|No|1,097,523.00|353,539.70||
||Finance||attracting|||||income|
|expending|||||||||
||Bureau||investment||||||
|import|||||||||
||||and local||||||
||||supportive||||||
||||policy etc.||||||
|Zhuihai|Zhuihai||Subsidy|||||Related to the|
|||Subsidy||Yes|No|967,010.00|187,890.00||
|International|International||gained due to|||||income|

||||||||||
|-|-|-|-|-|-|-|-|-|
|Freight|Freight||confirming||||||
|Terminal|Terminal||with local||||||
|(Gaolan) Co.,|(Gaolan) Co.,||government||||||
|Ltd.|Ltd.||attracting||||||
|government|||investment||||||
|consign|||and local||||||
|subsidy|||supportive||||||
||||policy etc.||||||
||||Subsidy||||||
||||gained due to||||||
||Zhuhai||confirming||||||
|Industrial|Gaolan||with local||||||
|water price|Financial||government|||||Related to the|
|||Subsidy||Yes|No|3,977,454.00|3,096,498.90||
|difference|Treasury||attracting|||||income|
|subsidy|Payment||investment||||||
||Center||and local||||||
||||supportive||||||
||||policy etc.||||||
|Special funds|||||||||
|for promoting|||Subsidy from||||||
|the|Zhuhai||R&D||||||
|transformatio|Municipal||Technical|||||Related to the|
|||Subsidy||Yes|No|525,000.00|216,000.00||
|n and|Finance||updating and|||||income|
|upgrading of|Bureau||transformatio||||||
|processing|||n, etc.||||||
|trade|||||||||
||||Subsidy from||||||
|Zhuhai|Zhuhai||R&D||||||
|technical|Municipal||Technical|||||Related to the|
|||Subsidy||Yes|No|160,000.00|410,000.00||
|transformatio|Finance||updating and|||||income|
|n fund|Bureau||transformatio||||||
||||n, etc.||||||
|Special funds|||||||||
|for provincial|||||||||
|enterprise|||||||||
||||Subsidy from||||||
|transformatio|||||||||
||Zhuhai||R&D||||||
|n and|||||||||
||Municipal||Technical|||||Related to the|
|upgrading||Subsidy||Yes|No|100,000.00|120,000.00||
||Finance||updating and|||||income|
|(two|||||||||
||Bureau||transformatio||||||
|integration|||||||||
||||n, etc.||||||
|management|||||||||
|system|||||||||
|project)|||||||||

|||||||||
|-|-|-|-|-|-|-|-|
||||Subsidy from|||||
|Subsidy for||||||||
||Zhuhai||R&D|||||
|Zhuhai||||||||
||Municipal||Technical||||Related to the|
|enterprise||Subsidy||Yes|No|2,458,331.97||
||Finance||updating and||||income|
|R&D fee of||||||||
||Bureau||transformatio|||||
|2013||||||||
||||n, etc.|||||
||||Subsidy|||||
||||gained due to|||||
|Special fund|||confirming|||||
||Bureau of|||||||
|for external|||with local|||||
||finance of|||||||
|economy|||government||||Related to the|
||Foshan|Subsidy||Yes|No|1,040,000.00||
|trade|||attracting||||income|
||Chancheng|||||||
|development|||investment|||||
||District|||||||
|of 2015|||and local|||||
||||supportive|||||
||||policy etc.|||||
||||Subsidy|||||
||||gained due to|||||
|Special fund||||||||
||||confirming|||||
|for Province||||||||
||Zhuhai||with local|||||
|and ministry||||||||
||Municipal||government||||Related to the|
|cooperation||Subsidy||Yes|No|500,000.00||
||Finance||attracting||||income|
|of industry,||||||||
||Bureau||investment|||||
|university||||||||
||||and local|||||
|and research||||||||
||||supportive|||||
||||policy etc.|||||
|Zhuhai|||Subsidy|||||
|Bureau of|||gained due to|||||
|Quality|||confirming|||||
|Supervision|Zhuhai||with local|||||
|Technology|Municipal||government||||Related to the|
|||Award||Yes|No|260,000.00||
|Standards|Finance||attracting||||income|
|Strategy|Bureau||investment|||||
|Special Fund|||and local|||||
|Application|||supportive|||||
|Project|||policy etc.|||||
||||Subsidy|||||
||||gained due to|||||
|Foshan|Foshan|||||||
||||confirming|||||
|government|Municipal||||||Related to the|
|||Award||Yes|No|200,000.00||
||||with local|||||
|bonds|Finance||||||income|
||||government|||||
|support funds|Bureau|||||||
||||attracting|||||
||||investment|||||

||||||||||
|-|-|-|-|-|-|-|-|-|
||||and local||||||
||||supportive||||||
||||policy etc.||||||
||||Subsidy||||||
||||gained due to||||||
||||confirming||||||
|Special funds|Zhuhai||with local||||||
|for energy|Municipal||government|||||Related to the|
|||Subsidy||Yes|No|300,000.00|||
|saving of|Finance||attracting|||||income|
|2015|Bureau||investment||||||
||||and local||||||
||||supportive||||||
||||policy etc.||||||
||||Subsidy||||||
||Plan Finance||gained due to||||||
|Special Fund|||||||||
||Office of||confirming||||||
|for|||||||||
||Quality and||with local||||||
|Technology|||||||||
||Technical||government|||||Related to the|
|Standards||Subsidy||Yes|No|100,000.00|50,000.00||
||Supervision||attracting|||||income|
|Strategy of|||||||||
||of||investment||||||
|Guangdong|||||||||
||Guangdong||and local||||||
|of 2015|||||||||
||Province||supportive||||||
||||policy etc.||||||
||||Subsidy||||||
||||gained due to||||||
||||confirming||||||
|Discount|Zhuhai||with local||||||
|funds for|Municipal||government|||||Related to the|
|||Subsidy||Yes|No||1,244,434.00||
|promoting|Finance||attracting|||||income|
|important|Bureau||investment||||||
||||and local||||||
||||supportive||||||
||||policy etc.||||||
||||Subsidy||||||
||||gained due to||||||
||||confirming||||||
||Zhuhai||with local||||||
|Imported|||||||||
||Municipal||government|||||Related to the|
|wood pulp||Subsidy||Yes|No||544,858.66||
||Finance||attracting|||||income|
|incentive|||||||||
||Bureau||investment||||||
||||and local||||||
||||supportive||||||
||||policy etc.||||||

||||||||||
|-|-|-|-|-|-|-|-|-|
||||Subsidy||||||
||||gained due to||||||
||||confirming||||||
||Zhuhai||with local||||||
|Energy|Municipal||government|||||Related to the|
|||Subsidy||Yes|No||430,000.00||
|saving funds|Finance||attracting|||||income|
||Bureau||investment||||||
||||and local||||||
||||supportive||||||
||||policy etc.||||||
||||Subsidy||||||
||||gained due to||||||
||||confirming||||||
||Zhuhai||with local||||||
|Enterprise|Municipal||government|||||Related to the|
|||Award||Yes|No||201,581.00||
|award capital|Finance||attracting|||||income|
||Bureau||investment||||||
||||and local||||||
||||supportive||||||
||||policy etc.||||||
||||Subsidy||||||
||||gained due to||||||
||||confirming||||||
|Cash rewards|Zhuhai||with local||||||
|for expand|Municipal||government|||||Related to the|
|||Award||Yes|No||200,000.00||
|domestic|Finance||attracting|||||income|
|enterprise|Bureau||investment||||||
||||and local||||||
||||supportive||||||
||||policy etc.||||||
||||Subsidy||||||
||||gained due to||||||
||||confirming||||||
||Zhuhai||with local||||||
|Gaolan port|Municipal||government|||||Related to the|
|||Subsidy||Yes|No||162,250.00||
|subsidies|Finance||attracting|||||income|
||Bureau||investment||||||
||||and local||||||
||||supportive||||||
||||policy etc.||||||
||Zhuhai||Subsidy||||||
|||||||||Related to the|
|Other|Municipal|Subsidy|gained due to|Yes||105,117.00|311,040.00||
|||||||||income|
||Finance||confirming||||||

||||||||||
|-|-|-|-|-|-|-|-|-|
||Bureau||with local||||||
||||government||||||
||||attracting||||||
||||investment||||||
||||and local||||||
||||supportive||||||
||||policy etc.||||||
|||||||16,481,293.4|14,044,743.9||
|Total|--|--|--|--|--|||--|
|||||||1|4||

 Other notes:
70. Non-operating expenses
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Recorded in the amount of the|
|Item|Reporting period|Same period of last year||
||||non-recurring gains and losses|
|Loss on disposal of non-current|955,586.75|1,009,714.83||
||||955,586.75|
|assets||||
|Including: Loss on disposal of||||
||955,586.75|1,009,714.83|955,586.75|
|fixed assets||||
|Donation|54,000.00||54,000.00|
|Fines, compensation, fine for||||
||102,650.00|13,232.17|102,650.00|
|delaying payment||||
|Other|151,444.22|306,715.94|151,444.22|
|Total|1,263,680.97|1,329,662.94|1,263,680.97|

 Other notes:
71. Income tax expense
(1) Lists of income tax expense
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Current income tax expense|13,680,317.37|46,386,834.46|
|Deferred income tax expense|2,104,251.45|1,330,416.36|
|Total|15,784,568.82|47,717,250.82|

 (2) Adjustment process of accounting profit and income tax expense
Unit: RMB Yuan
|||
|-|-|
|Item|Reporting period|
|Total profits|186,700,311.16|
|Current income tax expense accounted by tax and relevant||
||46,675,077.79|
|regulations||
|Influence of different tax rate suitable to subsidiary|-13,201,045.34|
|Influence of income tax before adjustment|-214,532.07|
|Influence of non taxable income|-16,914,980.35|
|Influence of not deductable costs, expenses and losses|2,262,220.80|
|Influence of deductible losses of unrecognized deferred income||
||-4,360,769.81|
|tax assets used in previous years||
|The influence of R&D fee plus the deduction|1,538,597.80|
|Income tax expense|15,784,568.82|

 Other notes:
72. Other comprehensive income
Refer to the notes
73. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Intercourse funds|103,110,590.80|38,118,303.07|
|Government subsidies|14,966,879.97|11,894,743.94|
|Interest income|3,530,569.17|2,002,902.83|
|Income of compensation|2,345,089.79|1,096,461.56|
|Total|123,953,129.73|53,112,411.40|

 Notes:
(2) Other cash paid relevant to operating activities
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Intercourse funds|117,650,598.40|74,751,080.50|
|Expense|56,815,933.81|51,212,864.16|
|Employee pretty cash|3,380,536.00|3,218,740.56|

||||
|-|-|-|
|Total|177,847,068.21|129,182,685.22|

 Notes:
(3) Other cash received relevant to investment activity
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Government subsidies|4,066,986.00||
|Total|4,066,986.00||

Notes:
(4) Other cash paid relevant to investment activity
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|

 Notes:
(5) Other cash received relevant to financing activities
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Restrict monetary capital used for margin|||
||37,554,493.73||
|or pledge|||
|Interests subsidies||3,000,000.00|
|Total|37,554,493.73|3,000,000.00|

 Notes:
(6) Other cash paid relevant to financing activities
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Restrict monetary capital used for margin|||
|||361,300,780.56|
|or pledge|||
|Total||361,300,780.56|

74. Supplementary information to cash flow statement
(1) Information of net profit to net cash flows generated from operating activities
Unit: RMB Yuan
||||
|-|-|-|
|Supplementary materials|Reporting period|Last period|
|1. Reconciliation of net profit to net cash|||
||--|--|
|flows generated from operating activities|||
|Net profit|170,915,742.34|149,258,539.55|
|Add: Provision for impairment of assets|26,624,300.40|-6,695,392.95|
|Depreciation of fixed assets, of oil-gas|||
||151,114,049.23|151,939,219.54|
|assets, of productive biological assets|||
|Amortization of intangible assets|5,144,973.73|4,056,752.84|
|Long-term unamortized expenses|794,578.41|419,150.95|
|Losses on disposal of fixed assets, intangible|||
|assets and other long-term assets (gains:|-1,309,651.57|-24,546,653.22|
|negative)|||
|Losses from variation of fair value|-1,528,810.76||
|Financial cost (gains: negative)|140,956,000.53|120,732,810.36|
|Investment loss (gains: negative)|-121,166,566.33|-12,486,831.40|
|Decrease in deferred income tax assets|||
||2,036,896.99|1,491,628.80|
|(gains: negative)|||
|Increase in deferred income tax liabilities|||
||69,548.08|-518,417.75|
|(“-” means decrease)|||
|Decrease in inventory (gains: negative)|204,919,569.38|-161,653,458.31|
|Decrease in accounts receivable from|||
||73,634,068.38|86,877,346.52|
|operating activities (gains: negative)|||
|Increase in payables from operating|||
||-51,269,611.93|171,015,635.05|
|activities (decrease: negative)|||
|Other|12,556,242.88||
|Net cash flows generated from operating|613,491,329.76|479,890,329.98|
|activities|||
|2. Investing and financing activities that do|||
||--|--|
|not involving cash receipts and payment:|||
|3. Net increase in cash and cash equivalents|--|--|
|Closing balance of cash|185,960,324.24|113,248,623.00|
|Less: Opening balance of cash|113,248,623.00|200,248,786.56|
|Net increase in cash and cash equivalents|72,711,701.24|-87,000,163.56|

(2) Net Cash paid of obtaining the subsidiary
Unit: RMB Yuan
|||
|-|-|
||Amount|
|Of which:|--|
|Of which:|--|
|Of which:|--|

Other notes:
(3) Net Cash receive of disposal of the subsidiary
Unit: RMB Yuan
|||
|-|-|
||Amount|
|Cash or cash equivalents received from disposal of subsidiaries in||
||44,869,829.86|
|reporting period||
|Of which:|--|
|Of which:|--|
|Of which:|--|
|Net Cash receive from disposal of the subsidiary|44,869,829.86|

 Other notes:
The Company disposed Foshan Chengtong Paper Co., Ltd. in reporting period
(4) Cash and cash equivalents
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|I. Cash|185,960,324.24|113,248,623.00|
|Including: Cash on hand|312,658.48|283,310.72|
|Bank deposit on demand|185,647,665.76|110,640,137.90|
|Other monetary funds on demand||2,325,174.38|
|III. Closing balance of cash and cash|185,960,324.24|113,248,623.00|
|equivalents|||

Other notes:
75. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.:
76. The assets with the ownership or use right restricted
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing book value|Restricted reason|
|||Note, credit margin, deposit as the loan|
|Monetary capital|323,746,286.83||
|||mortgage|
|Notes receivable|14,508,279.00|Obtained bank loan by mortgage the note|
|||Applying compulsory execution, as the|
|Fixed assets|15,411,432.68|guarantee assets, for details, see Note 19.|
|||Fixed assets.|
|Total|353,665,998.51|--|

Other notes:
77. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB Yuan
|||||
|-|-|-|-|
||Closing foreign currency||Closing convert to RMB|
|Item||Exchange rate||
||balance||balance|
|Including: USD|5,133,725.21|6.4936|33,336,358.02|
|EUR|47,862.00|7.0952|339,590.46|
|HKD|2,485.83|0.8378|2,082.63|
|Including: USD|5,791,502.55|6.4936|37,607,700.96|
|HKD|3,014,552.88|0.8378|2,525,592.40|

 Other notes:
(2) Note to oversea entities including: for significant oversea entities, shall disclose main operating place, recording currency and selection basis, if there are changes into recording currency, shall also disclose the reason.
□ Applicable√ Inapplicable
78. Arbitrage
According to arbitrage category to disclose arbitrage item, relevant arbitrage tools and the arbitraged risk qualitative and quantitative information:
79. Other
8. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
||||||||
|-|-|-|-|-|-|-|
|Name of the|Main operating||Nature of|Holding percentage (%)|||
|||Registration place||||Way of gaining|
|subsidiary|place||business|Directly|Indirectly||
|||||||Business|
|Huaxin (Foshan)|||||||
||||Manufacturing|||combination|
|Color Printing|Foshan|Foshan||100.00%|||
||||industry|||under the same|
|Co., Ltd.|||||||
|||||||control|
|||||||Business|
|Zhuhai Huafeng|||Manufacturing|||combination|
||Zhuhai|Zhuhai|||100.00%||
|Paper Co., Ltd.|||industry|||under the same|
|||||||control|
|||||||Business|
|Zhuhai S.E.Z.|||||||
||||Manufacturing|||combination not|
|Hongta Renheng|Zhuhai|Zhuhai||41.97%|||
||||industry|||under the same|
|Paper Co., Ltd.|||||||
|||||||control|
|Pearl River Color|||||||
|Printing Co., Ltd.|||Manufacturing||||
||Foshan|Foshan|||100.00%|Establishment|
|of Chancheng|||industry||||
|District, Foshan|||||||
|Kunshan Focai|||||||
||||Manufacturing||||
|Packaging &|Suzhou|Suzhou||100.00%||Establishment|
||||industry||||
|Printing Co., Ltd.|||||||
|||||||Business|
|Zhuhai Jinji|||||||
||||Manufacturing|||combination not|
|Chemicals Co.,|Zhuhai|Zhuhai|||51.00%||
||||industry|||under the same|
|Ltd.|||||||
|||||||control|
|Pinghu Huaxin|||||||
||||Manufacturing||||
|Packing Material|Jiaxing|Jiaxing||100.00%||Establishment|
||||industry||||
|Co., Ltd|||||||

Notes: holding proportion in subsidiary different from voting proportion:
1. On acquisition date as 30 Jun. 2009, the Company gained40.176% shares of Hongta Renheng by the ways of capital and share increase, there were five directors in the Board of Directors of
Hongta Renheng, of which the Company sent three directors, Yunnan Hongta Group Co., Ltd and
Renheng Industrial Co., Ltd. sent one director respectively. The Chairman of the Board (Legal
representative) was sent by the Company, General Manager and Chief Financial Officer were also
sent by the Company, so as to control the routine producing and operating activities of Hongta Renheng, and thus consolidated into the consolidated statement of the Company since Jul. 2009. On 1 Feb. 2010, Hongta Renheng finished the changes procedures for capital increase in industry and commerce, so shares of Hongta Renheng held by the Company increased to41.9653%, meanwhile, revised the contract and Articles of Association of Hongta Renheng according to the resolutions of the Board of Directors of Hongta Renheng on 25 Feb. 2010, after which the directors of the Board of Directors changed from five to seven, as the Company sent four directors (originally three), Yunnan Hongta Group Co., Ltd. sent two directors (originally one), Renheng Industrial Co., Ltd. sent one, Dragon State International Limiteddidn’t send any directors. The Company still can decide the financial and operating policies of Hongta Renheng, so continued to consolidate it to the consolidated scope.
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the voting rights not been controlled investee:
Significant structure entities and controlling basis in the scope of combination:
Basis of determine whether the Company is the agent or the principal:
Other notes:
(2) Significant not wholly owned subsidiary
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||The profits and losses|Declaring dividends|Balance of minority|
||Shareholding proportion||||
|Name of the subsidiary||arbitrate to the minority|distribute to minority|shareholder at closing|
||of minority shareholder||||
|||shareholders|shareholder|period|
|Zhuhai S.E.Z. Hongta|||||
||58.03%|52,886,797.62|27,377,389.55|1,521,143,961.92|
|Renheng Paper Co., Ltd.|||||

Holding proportion of minority shareholder in subsidiary different from voting proportion:
Other notes:
(3) The main financial information of significant not wholly owned subsidiary
Unit: RMB Yuan
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name of|Closing balance||||||Opening balance||||||
|the||Non-curr|||Non-curr|||Non-curr|||Non-curr||
||current||Total|Current||Total|current||Total|Current||Total|
|subsidiar||ent|||ent|||ent|||ent||
||assets||assets|liabilities||liabilities|assets||assets|liabilities||liabilities|
|y||assets|||liability|||assets|||liability||
|Zhuhai|||||||||||||
|S.E.Z.|||||||||||||
|Hongta|2,247,65|2,524,64|4,772,30|1,298,18|762,913,|2,061,09|2,610,58|2,586,28|5,196,86|1,711,08|789,469,|2,500,55|
|Renheng|9,971.76|8,275.64|8,247.40|1,498.26|998.83|5,497.09|4,363.19|0,434.50|4,797.69|9,328.58|663.93|8,992.51|
|Paper|||||||||||||
|Co., Ltd.|||||||||||||

Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Reporting period||||Same period of last year||||
|Name of the|||Total||||Total||
||Operation|||Operating|Operation|||Operating|
|subsidiary||Net profit|comprehensi|||Net profit|comprehensi||
||revenue|||cash flow|revenue|||cash flow|
||||ve income||||ve income||
|Zhuhai|||||||||
|S.E.Z.|||||||||
|Hongta|3,032,414,95|100,626,805.|100,626,805.|579,124,223.|3,186,263,07|134,146,834.|132,122,671.|430,818,841.|
|Renheng|4.02|71|71|10|8.91|91|28|68|
|Paper Co.,|||||||||
|Ltd.|||||||||

3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
||||||||
|-|-|-|-|-|-|-|
|||||Holding percentage (%)||Accounting|
|||||||treatment of the|
||Main operating||Nature of|||investment of|
|Name||Registration place|||||
||place||business|Directly|Indirectly|joint venture or|
|||||||associated|
|||||||enterprise|
|Chengtong|||||||
||Beijing|Beijing|Financial industry|20.00%||Equity method|
|Finance Co., Ltd.|||||||

Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Basis of holding less than20% of the voting rights but has a significant impact or holding20% or more voting rights but does not have a significant impact:
(2) Main financial information of significant associated enterprise
Unit: RMB Yuan
||||
|-|-|-|
||Closing balance/ reporting period|Opening balance /last period|
||Chengtong Finance Co., Ltd.|Chengtong Finance Co., Ltd.|
|current assets|7,216,204,389.99|4,726,244,903.00|
|Non-current assets|6,659,691.42|8,795,688.23|
|Total assets|7,222,864,081.41|4,735,040,591.23|
|Current liabilities|6,064,250,674.62|3,655,103,302.48|
|Total liabilities|6,064,250,674.62|3,655,103,302.48|
|Equity attribute to the parent company|1,158,613,406.79|1,079,937,288.75|
|Net assets proportion measured at|||
||231,722,681.36|215,987,457.75|
|shareholding proportion|||

||||
|-|-|-|
|Book value of equity investment to|||
||254,253,797.80|238,518,574.19|
|associated enterprise|||
|Operation revenue|131,793,995.59|111,741,235.34|
|Net profit|78,676,118.04|66,236,252.18|
|Total comprehensive income|78,676,118.04|66,236,252.18|

 9. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Closing fair value||||
|Item|Fair value measurement|Fair value measurement|Fair value measurement||
|||||Total|
||items at level 1|items at level 2|items at level 3||
|I. Consistent fair value|||||
||--|--|--|--|
|measurement|||||
|(I) Financial assets|||||
|calculated by fair value|||||
||1,741,500.00|||1,741,500.00|
|and changes record into|||||
|current profits or losses|||||
|1.Transactional financial|||||
||1,741,500.00|||1,741,500.00|
|assets|||||
|(V) Transactional|||||
||212,689.24|||212,689.24|
|financial liabilities|||||
|II. Inconsistent fair value|||||
||--|--|--|--|
|measurement|||||

2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
The Company listed the book value of financial assets instruments measured at fair value on 31 Dec. 2015. according to three levels of fair value, when the overall fair value classified in three levels were in line with the first level of three levels of each significant input value used in the calculation of fair value. The definitions of three levels were as follows:
The first level, the unadjusted offer of same assets or liabilities in active market on calculation date;
The second level, the directly or indirectly observable input value of related assets or liabilities excepting the input value of first level;
1) The second level input value including : Offer of similar assets or liabilities in active market; 2)
The second level input value including : Offer of similar assets or liabilities in non-active market;
period of common offer, profit rate curve, implied volatility and credit spread.
The third level was the unobservable input value of related assets or liabilities.
10. Related party and related Transaction
1. Information related to parent company of the Company
|||||||
|-|-|-|-|-|-|
||||||Proportion of voting|
|||||Proportion of share||
||||||rights owned by|
|Name of parent||||held by parent||
||Registration place|Nature of business|Registered capital||parent company|
|company||||company against the||
||||||against the Company|
|||||Company (%)||
||||||(%)|
|Foshan Huaxin||||||
|||Manufacturing||||
|Development Co.,|Foshan||457930000|65.20%|65.20%|
|||industry||||
|Ltd.||||||
|China National||||||
|Paper Industry|Beijing|Comprehensive|5033000000|65.31%|65.31%|
|Investment Corp.||||||
|China Chengtong||||||
|Holdings Group Co.,|Beijing|Comprehensive|7480165600|65.31%|65.31%|
|Ltd.||||||

Notes: information on the parent company:
Foshan Huaxin Development Co., Ltd.
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 holds65.20% shares of the Company,
China National Paper Industry Investment Corp.;
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 Holdings Group Co., Ltd.;
China Chengtong Holdings Group Co., Ltd. holds100% shares of China National Paper-industry Investment Corporation and has become the ultimate controller of the Company.
The ultimate controller of the Company was China Chengtong Holdings Group Co., Ltd..
Other notes:
2. Subsidiaries of the Company
See details to Notes IX. Equity in other entities,
3. Information on the joint ventures and associated enterprises of the Company
The details of significant joint venture and associated enterprise of the Company, please refer to Notes IX. Equity in other entities.
Information on other joint venture and associated enterprise of occurring related party transactions with the Company in reporting period, or form balance due to related party transactions in previous period:
|||
|-|-|
|Name|Relationship|
|Guangdong Chengtong Logistics Co., Ltd.|Subsidiary of joint venture|
|Chengtong Finance Co., Ltd.|Subsidiary of joint venture|

Other notes:
4. Information on other related parties of the Company
|||
|-|-|
|Name|Relationship|
|Foshan Huaxin Import & Export Co., Ltd.|Under the control of the same actual controller|
|Guangdong Guanhao High-tech Co., Ltd.|Under the control of the same actual controller|
|Dragon State International Limited|Under the control of the same ultimate controller|
|Tianjin Port Free Trade Zone Zhongwu Investment Development||
||Under the control of the same actual controller|
|Co., Ltd.||
|Yueyang Forest & Paper Co., Ltd.|Under the control of the same actual controller|
|Yueyang Antai industrial Co., Ltd|Under the control of the same actual controller|
|Yuanjian Paper Co., Ltd.|Under the control of the same actual controller|
|Hunan Juntai Pulp Paper Co., Ltd.|Under the control of the same actual controller|
|Guangdong Guanhao High-tech Co., Ltd.|Under the control of the same ultimate controller|
|Long Bond Investment Development Co., Ltd.|Under the control of the same ultimate controller|
|Foshan Chengtong Paper Co., Ltd.|Subsidiary disposed in reporting period|

Other notes:
5. List of related-party transactions
(1) Information on acquisition of goods and reception of labor service (unit: ten thousand Yuan)
Information on acquisition of goods and reception of labor service (unit: ten thousand Yuan)
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||The approval trade|Whether exceed trade|Same period of last|
|Related-party|Content|Reporting period||||
||||credit|credit or not|year|

|||||||
|-|-|-|-|-|-|
|China National||||||
||Purchase of raw|||||
|Paper Industry||286,476,105.01|355,000,000.00|No|145,922,526.89|
||material|||||
|Investment Corp.||||||
|Guangdong||||||
||Purchase of raw|||||
|Guanhao High-tech||17,245.46|754,850.00|No|73,078.85|
||material|||||
|Co., Ltd.||||||
|Tianjin Port Free||||||
|Trade Zone||||||
|Zhongwu|Purchase of raw|||||
|||21,844,699.64|86,600,000.00|No|66,201,848.87|
|Investment|material|||||
|Development Co.,||||||
|Ltd.||||||
|Guangdong||||||
||Providing|||||
|Chengtong||21,796,488.21|22,100,000.00|No|21,897,955.85|
||logistics services|||||
|Logistics Co., Ltd.||||||
|Guangdong||||||
||Purchase of raw|||||
|Guanhao High-tech||582,918.39|||414,609.92|
||material|||||
|Co., Ltd.||||||
|Foshan Huaxin||||||
||Purchase of raw|||||
|Import & Export|||||108,218.97|
||material|||||
|Co., Ltd.||||||
|Foshan Huaxin||||||
||Purchase of raw|||||
|Import & Export|||||2,178,617.16|
||material|||||
|Co., Ltd.||||||
|Yuanjian Paper Co.,|Purchase of raw|||||
||||||1,636,875.00|
|Ltd.|material|||||
|Hunan Juntai Pulp|Purchase of raw|||||
||||||2,280,291.54|
|Paper Co., Ltd.|material|||||

Information of sales of goods and provision of labor service
Unit: RMB Yuan
|||||
|-|-|-|-|
|Related-party|Content|Reporting period|Same period of last year|
|China National Paper Industry||||
||Sales of raw materials|24,293,495.59||
|Investment Corp.||||
|Yuanjian Paper Co., Ltd.|Sales of raw materials|3,924,986.64||
|Yueyang Forest & Paper Co.,||||
||Sale of products|12,936,664.65|1,526,923.63|
|Ltd.||||
|Guangdong Guanhao High-tech|Sale of products and raw|||
|||1,265,830.00|754,222.21|
|Co., Ltd.|materials|||
|Long Bond Investment|Wood pulp||74,379,473.02|

||||
|-|-|-|
|Development Co., Ltd.|||
|Foshan Huaxin Import &|||
||Sale of products|903,029.40|
|Export Co., Ltd.|||

Notes:
(2) Related trusteeship/contract
Lists of related trusteeship/contract:
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|Name of the|Name of the|||||Income|
|entruster/contract|entrustee/|Type|Initial date|Due date|Pricing basis|recognized in the|
|ee|contractor|||||reporting period|

 Notes:
Lists of entrust/contractee
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|Name of the|Name of the|||||Charge|
|entruster/contract|entrustee/|Type|Initial date|Due date|Pricing basis|recognized in the|
|ee|contractor|||||reporting period|

 Notes:
(3) Information of related lease
The Company was lessor:
Unit: RMB Yuan
|||||
|-|-|-|-|
|||The lease income confirmed in|The lease income confirmed in|
|Name of lessee|Category of leased assets|||
|||this year|last year|
|Guangdong Chengtong||||
||Houses and buildings|1,328,194.00|1,256,863.00|
|Logistics Co., Ltd.||||

The Company was lessee:
Unit: RMB Yuan
|||||
|-|-|-|-|
|||The lease income confirmed in||
|lessor|Category of leased assets||Category of leased assets|
|||this year||
|Foshan Huaxin Development||||
||Office and office equipment|569,400.00|569,400.00|
|Co., Ltd.||||

Notes:
(4) Related-party guarantee
The Company was guarantor:
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||||Execution accomplished|
|Secured party|Guarantee amount|Start date|End date||
|||||or not|
|Zhuhai S.E.Z. Hongta|||||
||33,000.00|7 May 2014|6 May 2017|No|
|Renheng Paper Co., Ltd.|||||
|Zhuhai S.E.Z. Hongta|||||
||10,000.00|26 Jan. 2015|26 Jan. 2016|No|
|Renheng Paper Co., Ltd.|||||
|Zhuhai S.E.Z. Hongta|||||
||15,000.00|7 Jan. 2015|7 Jan. 2016|No|
|Renheng Paper Co., Ltd.|||||
|Zhuhai S.E.Z. Hongta|||||
||23,000.00|16 Jun. 2015|16 Jun. 2016|No|
|Renheng Paper Co., Ltd.|||||
|Huaxin (Foshan) Color|||||
||6,500.00|1 Jul. 2013|31 Dec. 2017|No|
|Printing Co., Ltd.|||||
|Huaxin (Foshan) Color|||||
||3,000.00|29 Jun. 2015|28 Jun. 2016|No|
|Printing Co., Ltd.|||||
|Zhuhai Huafeng Paper|||||
||35,000.00|29 Oct. 2013|28 Oct. 2016|No|
|Co., Ltd.|||||

The Company was Secured party
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||||Execution accomplished|
|Guarantor:|Guarantee amount|Start date|End date||
|||||or not|
|China National Paper|||||
|Industry Investment|61,000.00|17 Apr. 2013|17 Apr. 2016|No|
|Corp.|||||

Notes:
(5) Inter-bank lending of capital of relatedparties：
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Amount borrowed and||||
|Related-party||Initial date|Due date|Explanation|
||loaned||||
|Borrowed|||||
|China Chengtong|||||
||418,750,000.00|24 Mar. 2010|24 Mar. 2015||
|Holdings Group Co., Ltd.|||||
|Loaned|||||
|Foshan Chengtong Paper|||||
||490,240,600.41|1 Jan. 2016|31 Dec. 2019||
|Co., Ltd.|||||

(6) Related party asset transfer and debt restructuring
Unit: RMB Yuan
|||||
|-|-|-|-|
|Related-party|Content|Reporting period|Same period of last year|

 (7) Rewards for the key management personnel
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Rewards for the key management|||
||5,600,281.00|4,913,649.10|
|personnel|||

(8) Other related-party transactions
According to the
1st
Meeting of
5th
Board of Directors of 2013 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 RMB600,000,000; and all settlement businesses should be conducted according to requirements. Until 31 Dec. 2015, outstanding of deposits of the Company in Chengtong Financial Co., Ltd was RMB129, 537,835.34 and loan balance was RMB30, 000,000.00.
6. Receivables and payables of related parties
(1) Receivables
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Closing balance||Opening balance||
|Name o f item|Related-party|||||
|||Book balance|Bad debt provision|Book balance|Bad debt provision|
||Guangdong Guanhao|||||
|Account receivable:||5,973.80|267.32|29,875.20||
||High-tech Co., Ltd.|||||
||Yueyang Forest &|||||
|Account receivable:||839,714.61||1,574,001.70||
||Paper Co., Ltd.|||||
||Yueyang Antai|||||
|Account receivable:||5,302.10|1,590.63|5,302.10|530.21|
||industrial Co., Ltd|||||
|Account receivable:|Guangdong|252,199.10|75,659.73|252,199.10|25,219.91|

|||||||
|-|-|-|-|-|-|
||Chengtong Logistics|||||
||Co., Ltd.|||||
||China National|||||
|Account receivable:|Paper Industry|20,275,925.21||||
||Investment Corp.|||||
||Foshan Huaxin|||||
|Account receivable:|Import & Export|726,513.19|72,651.32|726,513.19||
||Co., Ltd.|||||
||Long Bond|||||
||Investment|||||
|Account receivable:||168.21|8.41|156.16||
||Development Co.,|||||
||Ltd.|||||
||China National|||||
|Prepayment:|Paper Industry|27,884,562.96||11,612,211.87||
||Investment Corp.|||||
||Guangdong|||||
|Other accounts||||||
||Chengtong Logistics|1,167,236.74|91,912.67|967,052.75|9,922.14|
|receivable:||||||
||Co., Ltd.|||||
||China National|||||
|Other accounts||||||
||Paper Industry|264,600.00||249,255.39||
|receivable:||||||
||Investment Corp.|||||
|Other accounts||||||
|receivable:||||||

(2) Payables
Unit: RMB Yuan
|||||
|-|-|-|-|
|Name o f item|Related-party|Closing book balance|Opening book balance|
||China National Paper Industry|||
|Accounts payable||5,727,471.54|30,359,297.02|
||Investment Corp.|||
||Guangdong Chengtong|||
|Accounts payable||3,257,342.93||
||Logistics Co., Ltd.|||
||Foshan Chengtong Paper Co.,|||
|Accounts payable||267,230.97||
||Ltd.|||
||Guangdong Guanhao High-tech|||
|Accounts payable||109,865.03|50,184.38|
||Co., Ltd.|||
||Tianjin Port Free Trade Zone|||
|Accounts payable|Zhongwu Investment||12,906,627.84|
||Development Co., Ltd.|||
|Other account payable|Guangdong Chengtong|570,384.98|392,547.84|

|||||
|-|-|-|-|
||Logistics Co., Ltd.|||
||Foshan Huaxin Development|||
|Other account payable||5,000,000.00|1,100,000.00|
||Co., Ltd.|||
||China National Paper Industry|||
|Other account payable|||14,355.00|
||Investment Corp.|||
|Interest payable|Chengtong Finance Co., Ltd.|44,458.33|196,000.00|
||China Chengtong Holding|||
|Interest payable|||16,780,833.35|
||Group Co., Ltd.|||
|Other non-current liabilities due|China Chengtong Holding|||
||||418,750,000.00|
|within 1 year|Group Co., Ltd.|||

7. Related party commitment
Reviewed and approved by the 1st Meeting of the 5th Session of the Board of Directors on 7 Mar. 2014, 2013 General Meeting of Shareholders on 16 May 2015, the
3rd
Meeting of the
5th
Session of the Board of Directors on 19 May 2014 and the
1st
Special Meeting of shareholders on 6 Jun. 2014, the Company provided no more than RMB 2.4 billion guarantee for loan to its subsidiaries Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd.( including Zhuhai Huafeng Paper Co., Ltd. , Zhuhai Jinji Chemical Co., Ltd. and Huaxin (Foshan) Color Printing Co., Ltd. allowed Hongta Renheng providing maximum guarantee RMB 400,000,000, in total of RMB 2.8 billion. When applying for integrated Credit/Loan to the bank, will within line of guarantee, the Company will provide the joint liability guarantee, the guarantee amount, every deal and guarantee period will be agreed in the specific contract.
11. Commitments
1. Significant commitments
Significant commitments at balance sheet date
As of 31 Dec. 2015, there were no significant commitments to be disclosed.
2. Contingency
(1) Significant contingency at balance sheet date
Pending action, contingency formed by arbitration and its financial influence
(1) TheCompany’s sub-subsidiary Zhuhai Jinji Chemical Co., Ltd. signed a loan contract with Guangzhou Hong He Gu Kang Ti Leisure Co., Ltd. (hereinafter referred to as“Hong He Gu Company”) on 12 Dec. 2011, the contract agree that Hong He Gu Company borrowed RMB 500000 from Zhuhai Jinji Chemical Co., Ltd. the term of the loan was from 12 Dec. 2011 to 31
May 2012. When the contract expired, Hong He Gu Company should take the initiative to repay
the loan principal and interest. The legal representative Wang Renhe should be the guarantee of
Hong He Gu Company. On 12 Dec. 2012, the Contract was maturity; Hong He Gu Company did
not paid the loan as agreed. In line with Civil Judgment (2015) ZJFPMCZ No. 20, the Hong He Gu Company should repay RMB500,000 to the Company and Wang Renhe should bare the joint liquidated liability. Zhuhai Jinji Chemical Co., Ltd. had individually withdrawn100% bad debt provision for the said other account receivable of RMB 500000 of Hong He Gu Company.
(2) As of 31 Dec. 2015, 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.
(3) As of 31 Dec. 2015, 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 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.
(4) As of 31 Dec. 2015,, 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.
(5) As of 31 Dec. 2015, 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.
(6) As of 31 Dec. 2015, 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 won the first instance; however there were no properties to execute the judgment, so it continued to withdraw100% bad debt provision for the said account receivable at period-end.
(7) As of 31 Dec. 2015, 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.In 2014, through negotiation, Hongta Renheng withdrew RMB 1.5 million, and the balance was RMB 3,402,239.70, withdrew85.59% bad debt provision for the said account receivable at period-end. So it continued to withdraw85.59% bad debt provision for the said account receivable.
(8) As of 31 Dec. 2015, Kaifeng Boke Printing Co., Ltd owned good payment of Zhuhai Huafeng Paper Co., Ltd. RMB4,635,249.60. In line with Civil Judgment (2015) ZJFMECZ No. 609, Kaifeng Boke Printing Co., Ltd should repay RMB4,635,249.60 and relevant interest. Zhuhai Huafeng Paper Co., Ltd. had applied to the court for property attachment prior to lawsuit, and frozen bank deposit of respondent, closed down his land and equipment, estimated fully recovered the payment of good. As of 31 Dec. 2015, the aforesaid account receivable withdraw bad debt provision measured by aging, the income of interest was derecognized.
12.Events after balance sheet date
1. The restructuring of Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd.
On 14 Dec. 2015, the Company's subsidiary Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. changed as incorporated company and considered 31 Jul. 2015 as the base date, which reviewed and approved by the Board of Directors, and the share capital was RMB600 million after change and the shareholding proportion remained unchanged.
On 29 Jan. 2016, Zhuhai S.E.Z. Hongta Renheng Paper Packing Co., Ltd. held Establish Meeting. 1 Mar. 2016, the change of industrial and commercial registration of Zhuhai S.E.Z. Hongta Renheng Paper Packing Co., Ltd. had been completed, and the Name of the Company was officially changed.
2. Profit distribution
Company the sixth session of the board of directors in 2016 fourth meeting examined and approved the company 2015 annual profit distribution plan, proposed by December 31, 2015, a total of 8, 50542 shares of base, every 10 shares sent to all shareholders in cash dividend of 0.38 yuan (including tax), don't send bonus, nor to accumulation fund turn add equity. Companies to adopt this scheme to pay cash dividend of 19206105 yuan, including pay legal person shareholder is 12673000 yuan, circulation shareholders is RMB 6533150.
3.In addition to the balance sheet date, as at the financial reporting date, the Company had no other disclosure of material undisclosed balance sheet date events.
13. Other important transactions and events have an impact oninvestors’ decision-making
1. In accordance with the Resolution Made at the 6th Session of the 5th Board of Directors on 16 Dec. 2012, and the Resolution Made at the First SpecialShareholders’ General Meeting for 2012 on 4 Jan. 2012, as well as the approval of CSRC with the Reply on Approving the Public Issuance of Corporate Bonds for Foshan Huaxin Packaging Co., Ltd. (ZJXK[2012] No. 725) on 28 May 2012, the Company publicly issued 8 million pieces of corporate bonds with the par value of RMB 100 per piece by adopting the ways of online public issuance for the public investors and off-line inquiry placing for the institution investors, with the nominal rate of5.8%, and the term of bonds was five years from the date of issuance. The issue amounts of bond pre-set online and offline were RMB100, 000,000.00 and 700,000,000.00. Up to 29 Nov. 2012, the total raised capital from the public issuance of corporate bonds in this time was RMB 800,000,000.00, and the actual raised capital after deducting the bond issuance underwriting fees and custodian fees was RMB 791,700,000.00.
2. In line with the Company held the Second Special Meeting of the General Shareholders on 10 Nov. 2014, the meeting reviewed and approved the Proposal of the Issue of Medium-Term Notes which agreed to issue no more than RMB five hundred million of the medium-term note used for the supplement of the Company's cash flow and working capital.
On 12 Jun. 2015, the Company received the Acceptance of Registration Notice ZSXZ[2015] No. MTN253 which agreed to the Company's registration of Medium-Term Notes, which issued by NAFMII. On 29 Jul. 2015, the Company's total issue amount was RMB200, 000,000.00, coupon rate5.28%, the limitation of Medium-Term Notes was 3 years, and the raised capital after deducting the bond issuance underwriting fees and custodian fees was RMB199, 100,000.00.
14. Notes of main items in the financial statements of the Company
1. Accounts receivable
(1) Accounts receivable classified by category
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|||||Withdra|||||||
|Category|||||Book||||||
|||Proportio||wal|||Proportio||Withdrawal|Book value|
||Amount||Amount||value|Amount||Amount|||
|||n||proportio|||n||proportion||
|||||n|||||||
|Accounts receivable|12,775,4||||12,775,46|42,393,||||42,393,540.|
|||100.00%|||||100.00%||||
|withdrawal of bad|61.68||||1.68|540.95||||95|

||||||||
|-|-|-|-|-|-|-|
|debt provision of by|||||||
|credit risks|||||||
|characteristics:|||||||
||12,775,461.68||12,775,461.68|42,393,|1,005.00|42,393,540.95|
|Total||100.00%|||||
|||||540.95|%||

 Accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end
□ Applicable√ Inapplicable
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable□ Inapplicable
Unit: RMB Yuan
|||||
|-|-|-|-|
||Closing balance|||
|Aging||||
||Account receivable|Bad debt provision|Withdrawal proportion|
|Subentry within 1 year||||
|1-3 months|12,775,461.68|||
|Total|12,775,461.68|||

Notes:
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:
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The withdrawal amount of the bad debt provision during the reporting period was of RMBXXX; the amount of the reversed or collected part during the reporting period was of RMBXXX.
Significant amount of reversed or recovered bad debt provision
Unit: RMB Yuan
||||
|-|-|-|
|Name of the entity|Amount|Method|

 (3) Particulars of the actual verification of accounts receivable during the reporting period
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|

Of which: significant actual verification of accounts receivable
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||Whether occurred|
|Name of the entity|Nature|Amount|Reason|Procedure|because of related|
||||||party transactions|

Notes:
(4) Top five of account receivable of closing balance collected by arrears party
||||
|-|-|-|
|Name of the entity|Closing balance|Proportion%|
|Customer A|2,642,544.18|20.68|
|Customer B|4,349,692.84|34.05|
|Customer C|1,279,271.85|10.01|
|Customer D|4,503,952.81|35.26|
|Total|12,775,461.68|100.00|

 (5) Derecogniziton of account receivable due to the transfer of financial assets
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable
Other notes:
2. Other accounts receivable
(1) Other account receivable classified by category
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|||||Withdra|||||||
|Category|||||Book||||||
|||Proportio||wal|||Proportio||Withdrawal|Book value|
||Amount||Amount||value|Amount||Amount|||
|||n||proportio|||n||proportion||
|||||n|||||||
|Other accounts|||||||||||
|receivable withdrawn||||||1,437,5|||||
||964,414,||||964,414,1|||||1,437,567,9|
|bad debt provision||100.00%||||67,917.|100.00%||||
||178.70||||78.70|||||17.18|
|according to credit||||||18|||||
|risks characteristics|||||||||||
||||||964,414,178.70|1,437,5||||1,437,567,917.18|
||964,414,||||||||||
|Total||100.00%||||67,917.|100.00%||||
||178.70||||||||||
|||||||18|||||

Other accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end
□ Applicable√ Inapplicable
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable□ Inapplicable
Unit: RMB Yuan
|||||
|-|-|-|-|
||Closing balance|||
|Aging||||
||Other accounts receivable|Bad debt provision|Withdrawal proportion|
|Subentry within 1 year||||
|1-3 months|105,163,917.24|||
|4-12 months||||
|Total|105,621,194.10|||

Notes:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable√ Inapplicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
□ Applicable√ Inapplicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMBXXX; the amount of the reversed or collected part during the reporting period was of RMBXXX.
Significant amount of reversed or recovered bad debt provision;
Unit: RMB Yuan
||||
|-|-|-|
|Name of the entity|Reversed or collected amount|Method|

 (3) Particulars of the actual verification of other accounts receivable during the reporting period
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|

Of which: significant actual verification of other accounts receivable
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||Whether occurred|
|Name of the entity|Nature|Amount|Reason|Procedure|because of related|
||||||party transactions|

 Notes of write-off other accounts receivable:
(4) Other account receivable classified by account nature
Unit: RMB Yuan
||||
|-|-|-|
|Nature|Closing book balance|Opening book balance|
|Pretty cash, etc|457,276.86|244,868.03|
|Payment on behalf|163,917.24||

||||
|-|-|-|
|Land purchase and storage fee||64,499,000.00|
|Amount of equity transfer|105,000,000.00||
|Intercourse fund in consolidated scope|858,792,984.60|1,372,824,049.15|
|Total|964,414,178.70|1,437,567,917.18|

 (5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||Closing balance of|
|Name of the entity|Nature|Closing balance|Aging|Proportion%||
||||||bad debt provision|
|Zhuhai S.E.Z. Hongta||||||
|Renheng Paper Co.,|Intercourse funds|637,819,153.58|1-3 years|66.14%||
|Ltd.||||||
|Huaxin (Foshan)||||||
|Color Printing Co.,|Intercourse funds|145,775,154.35|1-3 years|15.12%||
|Ltd.||||||
|Lion Fund|Amount of equity|||||
|||105,000,000.00|1-3 months|10.89%||
|Management Co., Ltd.|transfer|||||
|Zhuhai Huafeng||||||
||Intercourse funds|75,198,676.67|1-3 years|7.80%||
|Paper Co., Ltd.||||||
|Payment on behalf|Withholding charge|163,917.24|1-3 months|0.02%||
|Total|--|963,956,901.84|--|99.97%||

(6) Account receivable involving government subsidies
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Project of government|||Estimated recovering|
|Name of the entity||Closing balance|Closing aging||
||subsidies|||time, amount and basis|

 (7) Other account receivable derecognized due to the transfer of financial assets
(8) Amount of transfer other account receivable and assets and liabilities formed by its continuous involvement
Other notes:
3. Long-term equity investment
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Depreciation|||Depreciation||
||Book balance||Book value|Book balance||Book value|
|||reserves|||reserves||
|Investment to thesubsidiary|||||||
||1,058,107,442.14||1,058,107,442.14|1,280,107,442.14||1,280,107,442.14|
|Investment tojoint ventures andassociatedenterprises|||||||
||254,253,797.80||254,253,797.80|238,518,574.19||238,518,574.19|
|Total|1,312,361,239.94||1,312,361,239.94|1,518,626,016.33||1,518,626,016.33|

 (1) Investment to the subsidiary
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||||||Withdrawn||
|||||||Closing balance|
||||||impairment||
|Investee|Opening balance|Increase|Decrease|Closing balance||of impairment|
||||||provision in the||
|||||||provision|
||||||reporting period||
|Huaxin (Foshan)|||||||
|Color Printing Co.,|122,536,745.03|||122,536,745.03|||
|Ltd.|||||||
|Foshan Chengtong|||||||
||225,000,000.00||225,000,000.00||||
|Paper Co., Ltd.|||||||
|Zhuhai S.E.Z.|||||||
|Hongta Renheng|927,570,697.11|||927,570,697.11|||
|Paper Co., Ltd.|||||||
|Kunshan Focai|||||||
|Packaging &|5,000,000.00|||5,000,000.00|||
|Printing Co., Ltd.|||||||
|Pinghu Huaxin|||||||
|Packing Material||3,000,000.00||3,000,000.00|||
|Co., Ltd|||||||
|Total|1,280,107,442.14|3,000,000.00|225,000,000.00|1,058,107,442.14|||

(2) Investment to joint ventures and associated enterprises
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase/decrease in reporting period|||||||||Closing|
||Opening|||||||||Closing||
|Investee||Additiona|Negative|Investme|Adjustme|Other|Declarati|Withdraw|||balance|
||balance||||||||Other|balance||
|||l|investmen|nt profit|nt of|equity|on of cash|n|||of|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||investmen|t|and loss|other|changes|dividends|impairme||impairmentprovision|
|||t||recognize|comprehe||or profits|nt|||
|||||d under|nsive|||provision|||
|||||the equity|income||||||
|||||method|||||||
|I. Joint ventures|||||||||||
|II. Associated enterprises|||||||||||
|Chengton|||||||||||
||238,518,5|||15,735,22|||||254,253,7||
|g Finance|||||||||||
||74.19|||3.61|||||97.80||
|Co., Ltd.|||||||||||
||238,518,5|||15,735,22|||||254,253,7||
|Subtotal|||||||||||
||74.19|||3.61|||||97.80||
||238,518,574.19|||15,735,22|||||254,253,797.80||
|Total|||||||||||
|||||3.61|||||||

 (3) Other notes
1. On acquisition date as 30 Jun. 2009, the Company gained40.176% shares of Hongta Renheng by the ways of capital and share increase, there were five directors in the Board of Directors of Hongta Renheng, of which the Company sent three directors, Yunnan Hongta Group Co., Ltd and Renheng Industrial Co., Ltd. sent one director respectively. The Chairman of the Board (Legal representative) was sent by the Company, General Manager and Chief Financial Officer were also sent by the Company, so as to control the routine producing and operating activities of Hongta Renheng, and thus consolidated into the consolidated statement of the Company since Jul. 2009. On 1 Feb. 2010, Hongta Renheng finished the changes procedures for capital increase in industry and commerce, so shares of Hongta Renheng held by the Company increased to41.9653%, meanwhile, revised the contract and Articles of Association of Hongta Renheng according to the resolutions of the Board of Directors of Hongta Renheng on 25 Feb. 2010, after which the directors of the Board of Directors changed from five to seven, as the Company sent four directors (originally three), Yunnan Hongta Group Co., Ltd. sent two directors (originally one), Renheng Industrial Co., Ltd. sent one, Dragon State International Limiteddidn’t send any directors. The Company still can decide the financial and operating policies of Hongta Renheng, so continued to consolidate it to the consolidated scope in reporting period.
2. According to the 4th Session of the Fifth Board of Directors held on 28 Jun. 2013, which received and approved the Proposal on Related Transaction of Purchasing Equity of Huaxin (Foshan) Color Printing Co., Ltd. Owned by Longbon International Co., Ltd., which planed the Company to purchase25% equity of Huaxin (Foshan) Color Printing Co., Ltd. Owned by Longbon International Co., Ltd. through the Equity Transfer Agreement with the base day of the equity protocol transfer on 30 Jun. 2013. The transfer price took the net assets through assessment of Huaxin (Foshan) Color Printing Co., Ltd. of RMB 199,450,300 as reference, and the both
parties agreed to transfer25% equity with the price of RMB 49,862,600 and had completed the
equity alternation procedure on Sep. 2013. On Oct. 2013, the Company had completely paid the
equity purchasing account of RMB 49,862,600. After the equity transfer, Huaxin (Foshan) Color
Printing Co., Ltd. became the wholly-owned subsidiary of the Company.
3. The Company disposed Foshan Chengtong Paper Co., Ltd. in reporting period, for details, see note VIII, Change in consolidated scope.
4. On 23 Dec. 2013, theCompany’s Third Special General Meeting of Shareholders reviewed and approved the Proposal on purchasing the20% equity related transaction of Chengtong financial Co., Ltd. held by China National Paper Industry Investment Corp..On 23 Jan. 2014, Chengtong financial Co., Ltd. had sign Equity Transfer Agreement with China National Paper Industry Investment Corp., plan to transfer20% of equity to China National Paper Industry Investment Corp., after negotiation by both parties, agreed that the transfer price was RMB 231.4502 million, Chengtong financial Co., Ltd. had changed its shareholder registration on 23 Jun. 2014. Thus, since Jul. 2014, Chengtong financial Co., Ltd. held equity proportion was20%, calculated at equity method. Thus the Company held20% equity of Chengtong Finance Co., Ltd. since Jul. 2014 and be measured by equity method.
4. Revenues and operating costs
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Reporting period||Same period of last year||
|Item|||||
||Revenue|Operating costs|Revenue|Operating costs|
|Main operations|255,247,489.31|255,247,489.31|218,075,280.68|218,075,280.68|
|Other operations|||70,182,959.97||
|Total|255,247,489.31|255,247,489.31|288,258,240.65|218,075,280.68|

 Other notes:
5. Investment income
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Long-term equity investment income|||
||19,796,783.06||
|accounted by cost method|||
|Long-term equity investment income|||
||15,735,223.61|7,068,374.19|
|accounted by equity method|||
|Investment income arising from disposal of|||
||-75,000,000.00||
|long-term equity investments|||
|Total|-39,467,993.33|7,068,374.19|

 15. Supplementary materials
1. 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|114,279,468.16||
|Tax rebates, reductions or exemptions due to approval|||
|beyond authority or the lack of official approval|16,481,293.41||
|documents|||
|Gains and losses from debt restructuring|2,288,256.01||
|Gain/loss from change of fair value of transactional assets|||
|and liabilities, and investment gains from disposal of|||
|transactional financial assets and liabilities and|-5,985,459.17||
|available-for-sale financial assets, other than valid|||
|hedging related to the Company’s common businesses|||
|Other non-operating income and expenses other than the|||
||2,386,314.75||
|above|||
|Less: Income tax effects|1,604,695.65||
|Minority interests effects|5,926,442.49||
|Total|121,918,735.02|--|

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
2. Return on equity (ROE) and earnings per share (EPS)
|||||
|-|-|-|-|
|||EPS（Yuan/share）||
|Profit as of reporting period|Weighted average ROE (%)|||
|||EPS-basic|EPS-diluted|
|Net profit attributable to common||0.26|0.26|
||7.10%|||
|shareholders of the Company||||
|Net profit attributable to common||||
|shareholders of the Company after|0.60%|0.02|0.02|
|deduction of non-recurring profit and loss||||

Foshan Huaxin Packaging Co.,Ltd.. March 18, 2016