SShhaannggddoonngg CChheennmmiinngg PPaappeerr HHoollddiinnggss LLiimmiitteedd 2019 TThhiirrdd QQuuaarrtteerrllyy RReeppoorrtt SSSHHHAAANNNDDDOOONNNGGG CCCHHHEEENNNMMMIIINNNGGG PPPAAAPPPEEERRR HHHOOOLLLDDDIIINNNGGGSSSLLLIIIMMMIIITTTEEEDDD* 2200119 Third Quarterly Report
October 2019
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report I Important Notice
The board of directors (the “Board”), the supervisory committee (the “Supervisory Committee”) and the directors (the “Directors”), supervisors (the “Supervisors”) and senior management (the “Senior Management”) of the Company hereby warrant the truthfulness, accuracy and completeness of this quarterly report which does not contain false representations, misleading statements or material omissions, and severally and jointly accept legal responsibility for its contents.
All Directors were present at the Board meeting to consider and approve this quarterly report.
Chen Hongguo, the head of the Company, Dong Lianming, the head in charge of accounting, and Zhang Bo, the head of the accounting department (Accounting Officer), declare that they warrant the truthfulness, accuracy and completeness of the financial statements in this quarterly report.
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report II General Information of the Company
I. Major accounting data and financial indicators
Retrospective adjustment to or restatement of the accounting data for prior years by the Company□ Yes √ No
|||||||
|-|-|-|-|-|-|
||As at the end of the reportingperiod||As at the end of the prioryear||Increase / decreaseas at the end of thereporting period ascompared to the end of theprior year|
|Total assets (RMB)|104,117,892,347.23||105,318,734,827.82||-1.14%|
|Net assets attributable to shareholdersof the Company (RMB)|24,484,857,440.77||25,048,731,454.79||-2.25%|
||The reportingperiod|Increase/decreasecompared to thecorrespondingperiod of the prioryear||The period fromthe beginning ofthe year to the endof the reportingperiod|Increase/decrease for theperiod from the beginningof the year to the end ofthe reporting period ascompared to thecorresponding period ofthe prior year|
|Revenue (RMB)|8,665,530,249.94|9.12%||22,014,178,363.64|-6.29%|
|Net profit attributable to shareholdersof the Company (RMB)|557,960,253.43|-19.89%||1,067,755,825.72|-56.97%|
|Net profit after extraordinary gains orlosses attributable to shareholders ofthe Company (RMB)|447,511,508.11|-30.70%||750,656,504.32|-65.62%|
|Net cash flows from operatingactivities (RMB)|--|--||6,499,224,141.50|-28.37%|
|Basic earnings per share (RMB pershare)|0.14|-22.22%||0.15|-72.22%|
|Diluted earnings per share (RMB pershare)|0.14|-22.22%||0.15|-72.22%|
|Rate of return on net assets onweighted average basis|2.26%|-0.73%||2.47%|-6.29%|

Explanation:
Net profit attributable to shareholders of the Company does not exclude the effect of the interest of perpetual bonds and the dividends of preference shares paid and declared to be paid. When calculating financial indicators such as earnings per share and the rate of return on net assets on weighted average basis, the interest for perpetual bonds from 1 January 2019 to 30 September 2019 of RMB145,101,369.86 and the dividend on preference shares paid in 2019 of RMB493,494,767.52 are deducted.
Items and amounts of extraordinary gains or losses
√ Applicable □ Not applicable
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report Unit: RMB
||||
|-|-|-|
|Item|Amount for the period fromthe beginning of the year tothe end of the reportingperiod|Explanation|
|Profit or loss from disposal of non-current assets (includingwrite-off of asset impairment provision)|152,787,688.63||
|Government grants (except for the government grants closelyrelated to the normal operation of the company and grantedconstantly at a fixed amount or quantity in accordance with acertain standard based on state policies) accounted for inprofit or loss for the current period|243,404,400.04||
|Non-operating gains and losses other than the above items|10,767,741.03||
|Gain or loss from changes in fair value of consumablebiological assets subsequently measured at fair value|-1,883,064.80||
|Less: Effect of income tax|86,364,950.62||
|Effect of minority interests (after tax)|1,612,492.88||
|Total|317,099,321.40|—|

For theCompany’s extraordinary gain or loss items as defined in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No.1－ Extraordinary Gains or Losses and the extraordinary gain or loss items as illustrated in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No.1－ Extraordinary Gains or Losses defined as its recurring gain or loss items.
□ Applicable √ Not applicable
No extraordinary gain or loss items as defined or illustrated in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No.1－ Extraordinary Gains or Losses were defined by the Company as its recurring gain or loss items during the reporting period.
II. Total number of shareholders and shareholdings of the top ten shareholders as at the end of the reporting period
1. Total number of shareholders of ordinary shares and shareholders of preference shares with restored voting rights and the shareholding of the top ten shareholders
Unit: share
|||||
|-|-|-|-|
|Total number of shareholders ofordinary shares as at the end of thereporting period holders of H shares|127,898, of which 107,553 were holdersof A shares, 19,975 were holders of Bshares and 370 were holders of H shares|Total number of shareholders ofpreference shares with restoredvoting right as at the end of thereporting period (if any)|0|

Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|Shareholding of top 10 shareholders|||||||||
|Name of shareholders|Nature ofshareholders||Percentage ofshareholding|Number ofshares held||SNumber ofrestrictedshares held|hare pledged or locked-up||
||||||||Status ofshares|Number|
|CHENMIN GHOLDINGS COMPANYLIMITED|State-ownedlegal person||15.33%|445,396,128||0|Pledged|354,643,395|
|HKSCC NOMINEES LIMITED|Overseaslegal person||12.84%|373,065,875||0|||
|CHENMING HOLDINGS(HONG KONG) LIMITED|Overseaslegal person||12.54%|364,131,563||0|||
|CENTRAL HUIJIN ASSETMANAGEMENT LTD.|State-ownedlegal person||2.07%|60,206,850||0|||
|AGRICULTURAL BANK OF CHINALIMITED – CHINA SECURITIES 500INDEX ETF SECURITIESINVESTMENT FUND|Others||0.50%|14,435,450||0|||
|VANGUARD EMERGINGMARKETS STOCK INDEX FUND|Overseaslegal person||0.44%|12,912,357||0|||
|VANGUARD TOTALINTERNATIONAL STOCK INDEXFUND|Overseaslegal person||0.42%|12,233,170||0|||
|CHEN Hongguo|Domesticnature person||0.38%|11,080,044||8,310,033|||
|CHEN Suiqiang (陳穗強)|Domesticnature person||0.38%|11,010,200||0|||
|JIN Xing|Domesticnature person||0.34%|9,917,002||0|||
|Shareholding of the top ten shareholders of non-restricted shares|||||||||
|Name of shareholders||Number ofnon-restrictedshares held|||Class of shares||||
||||||Class of shares|||Number|
|CHENMING HOLDINGS COMPANY LIMITED||445,396,128|||RMB ordinary shares|||445,396,128|
|HKSCC NOMINEES LIMITED||373,065,875|||Overseas listed foreign shares|||373,065,875|
|CHENMING HOLDINGS (HONG KONG)LIMITED||364,131,563|||Domestic listed foreign shares|||210,717,563|
||||||Overseas listed foreign shares|||153,414,000|
|CENTRAL HUIJIN ASSET MANAGEMENT LTD.||60,206,850|||RMB ordinary shares|||60,206,850|
|AGRICULTURAL BANK OF CHINA LIMITED –CHINA SECURITIES 500 INDEX ETFSECURITIES INVESTMENT FUND||14,435,450|||RMB ordinary shares|||14,435,450|
|VANGUARD EMERGING MARKETS STOCKINDEX FUND||12,912,357|||Domestic listed foreign shares|||12,912,357|
|VANGUARD TOTAL INTERNATIONAL STOCKINDEX FUND||12,233,170|||Domestic listed foreign shares|||12,233,170|
|Chen Suiqiang (陳穗強)||11,010,200|||RMB ordinary shares|||11,010,200|

Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
||||||
|-|-|-|-|-|
|JIN Xing||9,917,002|Domestic listed foreign shares|9,917,002|
|LSV EMERGING MARKETS EQUITY FUND,L.P.||9,154,200|Domestic listed foreign shares|9,154,200|
|Related party relationshipor acting in concert amongthe above shareholders|Chenming Holdings (Hong Kong) Limited, an overseas legal person shareholder, is awholly-owned subsidiary of Chenming Holdings Company Limited, which is a state-ownedlegal person shareholder. Hence they are persons acting in concert under AdministrationMeasure on Disclosure of Information on the Change of Shareholding in Listed Companies(上市公司股東持股變動信息披露管理辦法). A shareholder, Chen Hongguo, is the legalrepresentative, chairman and general manager of Chenming Holdings Company Limited.Save for the above, it is not aware that any other shareholders of tradable shares are personsacting in concert and it is also not aware that any other shareholders of tradable shares arerelated to each other.||||
|Securities margin tradingof top 10 ordinaryshareholders (if any)|Chenming Holdings Company Limited holds 445,396,128 RMB ordinary shares, of which402,196,128 shares are held through ordinary account and 43,200,000 shares are heldthrough credit guarantee securities accounts;Chen Suiqiang (陳穗強) holds 11,010,200 RMB ordinary shares, of which 0 shares are heldthrough ordinary account and 11,010,200 shares are held through credit guarantee securitiesaccounts.||||

Whether an agreed repurchase transaction was entered into during the reporting period by the top 10 ordinary shareholders and top 10 shareholders of non-restricted shares of the Company
□ Yes √ No
The top 10 ordinary shareholders and top 10 shareholders of non-restricted ordinary shares of the Company did not enter into any agreed repurchase transaction during the reporting period.
2. Total number of shareholders of preference shares and shareholding of the top ten shareholders of preference shares
√ Applicable □ Not applicable
Unit: share
||||||||
|-|-|-|-|-|-|-|
|Total number of shareholders of preference shares as at the end of the reportingperiod||||7|||
|Shareholding of the top ten shareholders of preference shares|||||||
|Name of shareholders|Nature ofshareholders|Percentage of shareholding|Number ofshares held|Number ofrestrictedshares held|Share pledged orlocked-up||
||||||Status ofshares|Number|
|BEIJING YIBEN ZHONGXINGINVESTMENT MANAGEMENTCO., LTD.|Domesticnon-state-ownedlegal person|27.78%|12,500,000|0|Pledged|12,500,000|
|BANK OF COMMUNICATIONSINTERNATIONAL TRUST CO.,LTD. –HUILI NO.167 SINGLECAPITAL TRUST|Others|22.44%|10,100,000|0|||
|BANK OF COMMUNICATIONSINTERNATIONAL TRUST CO.,LTD. – HUILI NO.136 SINGLE|Others|14.22%|6,400,000|0|||

Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
|||||||
|-|-|-|-|-|-|
|CAPITAL TRUST||||||
|QILU BANK CO., LTD. – QILUBANK QUANXIN WEALTHMANAGEMENT PRODUCTSERIES||Others|13.33%|6,000,000|0|
|HENGFENG BANK CO., LTD.||Domesticnon-state-ownedlegal person|11.11%|5,000,000|0|
|SHANGHAI STATE-OWNEDASSETS OPERATION CO., LTD.||State-ownedlegal person|6.67%|3,000,000|0|
|NCF – MINSHENG BANK –CHINA FORTUNEINTERNATIONAL TRUST –CHINA FORTUNE TRUST‧MINXIN NO. 11 SINGLE CAPITALTRUST||Others|4.44%|2,000,000|0|
|Related party relationship or actingin concert among the aboveshareholders|Shareholders of preference shares, namely “BANK OF COMMUNICATIONSINTERNATIONAL TRUST CO., LTD. – HUILI NO.167 SINGLE CAPITALTRUST” and “BANK OF COMMUNICATIONS INTERNATIONAL TRUSTCO., LTD. – HUILI NO.136 SINGLE CAPITAL TRUST”, are persons acting inconcert. Save for the above, it is not aware that any other shareholders ofpreference shares are persons acting in concert and it is also not aware that anyother shareholders of preference shares are related to each other.|||||

Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report III Material Matters
I. Details of changes in major financial data and financial indicators during the
reporting period and reasons thereof
√ Applicable □ Not applicable
(I) Analysis of the assets and liabilities of the Company
Unit: RMB
||||||
|-|-|-|-|-|
|Item|30 September2019|31 December 2018|Change|Reason forchange|
|Bills receivable|783,620,411.85|1,213,116,491.46|-35.40%|（1）|
|Non-current assets due within one year|5,671,647,640.06|4,007,503,281.86|41.53%|（2）|
|Long-term receivables|3,877,741,117.94|7,926,610,770.86|-51.08%|（3）|
|Other non-current financial assets|763,160,000.00|103,000,000.00|640.93%|（4）|
|lls payable|2,271,206,630.23|4,218,969,554.93|-46.17%|（5）|
|Contract liabilities|1,078,697,907.67|419,540,133.74|157.11%|（6）|
|Other payables|2,627,180,153.42|1,777,718,017.48|47.78%|（7）|
|her current liabilities|930,173,869.45|2,816,956,481.68|-66.98%|（8）|
|her non-current liabilities|3,043,787,568.44|2,047,948,069.73|48.63%|（9）|

Explanation of the reasons leading to the major changes:
(1) Bills receivable decreased by35.40% as compared to the beginning of the year mainly due to theCompany’s increased payment by bills resulting in decreased subsisting bills.
(2) Non-current assets due within one year increased by41.53% as compared to the beginning of the year mainly due to increased payments for financing lease due within one year.
(3) Long-term receivables decreased by51.08% as compared to the beginning of the year mainly due to reduced size of financing lease business of the Company.
(4) Other non-current financial assets increased by640.93% as compared to the beginning of the year mainly due to theCompany’s increased investment of RMB662 million in Guangdong Nanyue Bank during the reporting period.
(5) Bill receivables decreased by46.17% as compared to the beginning of the year mainly due to decreased payment for goods by bills subsisting at the end of the reporting period.
(6) Contract liabilities increased by157.11% as compared to the beginning of the year mainly due to increased receipt of prepayment by the Company during the reporting period.
(7) Other payables increased by47.78% as compared to the beginning of the year mainly due to the
Company’s increase in borrowings from its controlling shareholder Chenming Holdings Company
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report Limited during the reporting period.
(8) Other current liabilities decreased by66.98% as compared to the beginning of the year mainly due to theCompany’s repayment of part of the short-term commercial paper falling due during the reporting period. (9) Other non-current liabilities increased by48.63% as compared to the beginning of the year mainly due to theCompany’s issue of RMB1.2 billion medium-term notes during the reporting period.
(II) Reasons for significant year-on-year changes of income statement items
Unit: RMB
||||||
|-|-|-|-|-|
|Item|January - September2019|January - September2018|Change|Reason forchange|
|Interest income|304,096,729.01|240,596,355.69|26.39%|（1）|
|Loss on impairment of credit|-261,549,886.93|-183,525,156.37|42.51%|（2）|
|Non-operating income|268,505,785.14|213,875,626.25|25.54%|（3）|
|Income tax espenses|286,659,474.62|553,555,763.61|-48.21%|（4）|

 Explanation of the reasons leading to the major changes:
(1) Interest income increased by26.39% as compared to the corresponding period of last year mainly due to the year-on-year increase in subsisting monetary funds during the reporting period.
(2) Loss on impairment of credit increased by42.51% as compared to the corresponding period of last year mainly due to the year-on-year increase in theCompany’s impairment provision for accounts receivable. (3) Non-operating income increased by25.54% as compared to the corresponding period of last year mainly due to increased government grants received by the Company during the reporting period
(4) Income tax expenses decreased by48.21% as compared to the corresponding period of last year mainly due to year-on-year decrease in profit recorded by the Company during the reporting period.
(III) Analysis of cash flows during the reporting period
Unit: RMB
||||||
|-|-|-|-|-|
|Item|January - September201９|January - September2018|Change|Reason forchange|
|Net cash flows from operatingactivities|6,499,224,141.50|9,073,361,847.59|-28.37%|（1）|
|Net cash flows from investmentactivities|-1,620,520,894.62|-2,476,359,313.37|34.56%|（2）|
|Net cash flows from financingactivities|-4,486,844,584.52|-4,988,513,761.32|10.06%|（3）|

Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report Explanation of the reasons leading to the major changes:
(1) Net cash flows from operating activities decreased by28.37% as compared to the corresponding period of last year mainly due to year-on-year decrease in profit recorded by the Company during the reporting period.
(2) Net cash flows from investing activities increased by34.56% as compared to the corresponding period of last year mainly due to year-on-year decrease in projects during the reporting period.
(3) Net cash flows from financing activities increased by10.06% as compared to the corresponding period of last year mainly due to year-on-year decrease in bonus distribution by the Company during the reporting period.
II. Analysis of and description on the progress of material matters, their impacts and solutions
□ Applicable √ Not applicable
Progress of the implementation of share repurchase
□ Applicable √ Not applicable
Progress of the implementation of reduction of shares repurchased by way of centralized bidding□ Applicable √ Not applicable
III. Undertakings made by parties involved in undertakings including theCompany’s beneficial controllers, shareholders, related parties, bidders and the Company
subsisting during the reporting period
□ Applicable √ Not applicable
During the reporting period, there were no undertakings made by parties involved in undertakings including theCompany’s beneficial controllers, shareholders, related parties, bidders and the Company subsisting during the reporting period.
IV. Security investments
□ Applicable √ Not applicable
The Company did not have any security investments during the reporting period.
V. Entrusted wealth management
□ Applicable √ Not applicable
The Company did not have any entrusted wealth management during the reporting period.
VI. Derivative investments
□ Applicable √ Not applicable
The Company did not have any derivative investments during the reporting period.
VII. Registration form for reception of research investigations, communications and interviews during the reporting period
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report□ Applicable √ Not applicable
No research investigations, communications and interviews of the Company occurred during the reporting period.
VIII. External guarantees against rules and regulations
□ Applicable √ Not applicable
There was no external guarantee provided by the Company which was against rules and regulations during the reporting period.
VIII. Appropriation of funds of the Company by the controlling shareholder and its related parties for non-operating purposes
□ Applicable √ Not applicable
There was no appropriation of funds of the Company by the controlling shareholder and its related parties for non-operating purposes during the reporting period.
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report IV Financial Statements
I. Financial Statements
1. Consolidated balance sheet
Prepared by: Shandong Chenming Paper Holdings Limited
30 September 2019
Unit: RMB
||||
|-|-|-|
|Item|30 September 2019|31 December 2018|
|CURRENT ASSETS：|||
|Monetary funds|21,902,281,589.46|19,292,774,747.79|
|Bills receivable|783,620,411.85|1,213,116,491.46|
|Accounts receivable|3,568,511,583.34|3,404,487,004.59|
|Prepayments|668,903,792.02|863,739,020.74|
|Other receivables|2,832,210,651.42|2,133,089,983.39|
|Including: Interest receivable|152,432,010.49|198,577,632.43|
|Inventories|4,804,144,399.56|6,771,488,433.74|
|Non-current assets due within one year|5,671,647,640.06|4,007,503,281.86|
|Other current assets|9,122,121,778.38|10,281,312,825.13|
|Total current assets|49,353,441,846.09|47,967,511,788.70|
|NON-CURRENT ASSETS：|||
|Long-term receivables|3,877,741,117.94|7,926,610,770.86|
|Long-term equity investments|631,018,808.70|484,674,282.77|
|Other non-current financial assets|763,160,000.00|103,000,000.00|
|Investment properties|4,693,663,472.02|4,844,993,039.62|
|Fixed assets|29,770,120,566.35|27,913,986,152.68|
|Construction in progress|9,792,251,992.31|11,871,350,821.55|
|right-of-use asset|||
|Intangible assets|1,805,080,230.05|1,939,355,274.98|
|Goodwill|5,969,626.57|5,969,626.57|
|Long-term prepaid expenses|127,173,284.78|134,916,241.81|
|Deferred income tax assets|811,119,510.65|603,873,698.62|
|Other non-current assets|2,487,151,891.77|1,522,493,129.66|
|Total non-current assets|54,764,450,501.14|57,351,223,039.12|
|Total assets|104,117,892,347.23|105,318,734,827.82|
|CURRENT LIABILITIES：|||
|Short-term borrowings|44,411,584,724.66|40,227,945,361.89|
|Bills payable|2,271,206,630.23|4,218,969,554.93|

Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
||||
|-|-|-|
|Accounts payable|3,504,666,567.82|4,150,228,644.66|
|Staff remuneration payables|167,458,919.28|135,373,407.70|
|Taxes payable|414,935,438.62|451,651,198.64|
|Other payables|2,627,180,153.42|1,777,718,017.48|
|Including: Interest payable|152,427,875.76|226,788,777.59|
|Contract liabilities|1,078,697,907.67|419,540,133.74|
|Non-current liabilities due within one year|5,295,745,735.86|7,216,305,771.01|
|Other current liabilities|930,173,869.45|2,816,956,481.68|
|Total current liabilities|60,701,649,947.01|61,414,688,571.73|
|NON-CURRENT LIABILITIES：|||
|Long-term borrowings|7,710,298,646.89|7,798,934,484.94|
|Bonds payable|2,143,362,700.00|2,097,562,500.00|
|Lease liability|||
|Long-term payables|3,223,265,717.82|3,900,255,693.44|
|Provisions|325,259,082.28|325,259,082.28|
|Deferred income|1,788,699,616.43|1,862,395,197.61|
|Other non-current liabilities|3,043,787,568.44|2,047,948,069.73|
|Total non-current liabilities|18,234,673,331.86|18,032,355,028.00|
|TOTAL LIABILITIES|78,936,323,278.87|79,447,043,599.73|
|OWNERS’ EQUITY：|||
|Share capital|2,904,608,200.00|2,904,608,200.00|
|Other equity instruments|7,465,500,000.00|7,465,500,000.00|
|Including: Preference shares|4,477,500,000.00|4,477,500,000.00|
|Perpetual bonds|2,988,000,000.00|2,988,000,000.00|
|Capital reserves|5,091,449,915.14|5,091,449,915.14|
|Other comprehensive income|-983,549,285.23|-736,520,181.01|
|Special reserves||3,257,998.47|
|Surplus reserves|1,148,888,912.11|1,148,888,912.11|
|General risk reserves|64,123,919.23|64,123,919.23|
|Retained profit|8,793,835,779.52|9,107,422,690.85|
|Total equity attributable to equity holders of the|||
||24,484,857,440.77|25,048,731,454.79|
|company|||
|Minority interest|696,711,627.59|822,959,773.30|
|Total owners’ equity|25,181,569,068.36|25,871,691,228.09|
|TOTAL LIABILITIES AND OWNERS’ EQUITY|104,117,892,347.23|105,318,734,827.82|

 Legal Representative: Head in charge of accounting: Head of the accounting department: Chen Hongguo
Dong Lianming Zhang Bo
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report2、Balance sheet of the Company
Unit: RMB
||||
|-|-|-|
|Item|30 September 2019|31 December 2018|
|CURRENT ASSETS:|||
|Monetary funds|10,059,882,337.31|8,160,234,434.15|
|Bills receivable|110,992,047.81|436,662,187.80|
|Accounts receivable|214,885,021.93|1,349,276,965.04|
|Prepayments|1,229,473,417.10|1,584,388,551.00|
|Other receivables|12,993,562,279.42|19,405,314,961.24|
|Including: Interest receivable|77,237,795.30|77,257,506.25|
|Dividends receivable|23,353,000.00||
|Inventories|674,822,830.84|1,133,888,230.37|
|Other current assets|116,840,878.41|140,126,157.18|
|Total current assets|25,400,458,812.82|32,209,891,486.78|
|NON-CURRENT ASSETS:|||
|Long-term receivables|499,325,607.06|516,925,607.06|
|Long-term equity investments|23,474,557,179.93|22,487,417,443.24|
|Investment in other equity instruments||3,000,000.00|
|Other non-current financial assets|104,000,000.00|103,000,000.00|
|Fixed assets|3,745,689,416.60|2,103,164,588.93|
|Construction in progress|560,423,045.57|2,014,493,138.68|
|right-of-use asset|||
|Intangible assets|449,414,082.63|458,365,862.52|
|Deferred income tax assets|417,818,598.32|303,861,021.95|
|Other non-current assets|49,300,000.00|9,800,000.00|
|Total non-current assets|29,300,527,930.11|28,000,027,662.38|
|Total assets|54,700,986,742.93|60,209,919,149.16|
|CURRENT LIABILITIES:|||
|Short-term borrowings|9,041,667,219.00|7,668,689,104.31|
|Bills payable|10,806,174,171.79|10,595,836,030.46|
|Accounts payable|1,071,011,265.11|722,999,244.33|
|Contract liabilities|3,239,026,611.09|3,299,778,982.47|
|Staff remuneration payables|66,714,895.93|53,899,651.15|
|Taxes payable|77,347,779.14|59,595,083.56|
|Other payables|3,022,054,639.84|5,465,488,890.52|
|Including: Interest payable|114,939,083.35|139,444,333.34|
|Non-current liabilities due within one year|2,885,129,810.97|3,256,715,148.39|
|Other current liabilities|1,860,519,444.45|3,527,956,481.68|
|Total current liabilities|32,069,645,837.32|34,650,958,616.87|

Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
||||
|-|-|-|
|NON-CURRENT LIABILITIES:|||
|Long-term borrowings|311,892,587.73|1,335,482,969.43|
|Bonds payable|988,035,000.00|2,097,562,500.00|
|Lease liability|||
|Long-term payables|965,186,645.51|2,072,502,840.48|
|Provisions|325,259,082.28|325,259,082.28|
|Deferred income|43,156,133.95|46,412,014.99|
|Other non-current liabilities|2,787,883,339.67|1,592,166,670.00|
|Total non-current liabilities|5,421,412,789.14|7,469,386,077.18|
|TOTAL LIABILITIES|37,491,058,626.46|42,120,344,694.05|
|OWNERS’ EQUITY:|||
|Share capital|2,904,608,200.00|2,904,608,200.00|
|Other equity instruments|7,465,500,000.00|7,465,500,000.00|
|Including: Preference shares|4,477,500,000.00|4,477,500,000.00|
|Perpetual bonds|2,988,000,000.00|2,988,000,000.00|
|Capital reserves|4,953,557,435.19|4,953,557,435.19|
|Surplus reserves|1,136,699,330.20|1,136,699,330.20|
|Retained profit|749,563,151.08|1,629,209,489.72|
|Total owners’ equity|17,209,928,116.47|18,089,574,455.11|
|TOTAL LIABILITIES AND OWNERS’ EQUITY|54,700,986,742.93|60,209,919,149.16|

 3. Consolidated income statement for the Period
Unit: RMB
||||
|-|-|-|
||Amounts for the|Amounts for the|
|Item|||
||period|prior period|
|I. Total revenue|8,665,530,249.94|7,941,434,778.16|
|Including: Revenue|8,665,530,249.94|7,941,434,778.16|
|II. Total operating costs|7,902,495,189.97|7,218,784,688.46|
|Including: Operating costs|6,283,700,892.83|5,506,076,479.61|
|Taxes and surcharges|57,547,747.02|68,040,535.03|
|Sales and distribution expenses|373,167,721.36|324,607,159.50|
|General and administrative expenses|246,100,352.99|230,957,952.48|
|Research and development expenses|274,206,599.62|245,095,355.24|
|Finance expenses|667,771,876.15|844,007,206.60|
|Including: Interest expenses|777,506,849.57|909,153,291.74|
|Interest income|90,102,448.79|81,499,764.35|
|Plus: Other income|20,809,943.31|23,494,829.18|
|Investment income (“-” denotes loss)|175,779,271.30|127,336,281.28|
|Including: Investment income from associates and joint|||
||811,698.89|-6,572,934.11|
|ventures|||

Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
||||
|-|-|-|
|Credit impairment loss (“-” denotes loss)|-199,109,603.59|-33,069,486.40|
|Gain on disposal of assets (“-” denotes loss)|-38,828,228.51|2,935,235.19|
|III. Operating profit (“-” denotes loss)|721,686,442.48|843,346,948.95|
|Plus: Non-operating income|31,033,192.17|22,243,068.90|
|Less: Non-operating expenses|11,007,861.52|13,045,182.22|
|IV. Total profit (“-” denotes total loss)|741,711,773.13|852,544,835.63|
|Less: Income tax expenses|160,781,655.00|119,353,651.11|
|V. Net profit (“-” denotes net loss)|580,930,118.13|733,191,184.52|
|(I) Classification according to the continuity of operation|||
|Net profit from continuing operations (“-” denotes net loss)|580,930,118.13|733,191,184.52|
|(II) Classification according to ownership|||
|1. Net profit attributable to|||
||557,960,253.43|696,526,748.13|
|shareholders of the Company|||
|2. Profit or loss of minority|||
||22,969,864.70|36,664,436.39|
|interest|||
|VI. Net other comprehensive income after tax|-231,012,416.02|-300,157,276.21|
|Net other comprehensive income after tax attributable to|||
||-231,012,416.02|-300,157,276.21|
|shareholders of the Company|||
|Other comprehensive income that will be reclassified to|||
||-231,012,416.02|-300,157,276.21|
|profit or loss in subsequent periods|||
|Exchange differences on translation of foreign operations|-231,012,416.02|-300,157,276.21|
|VII. Total comprehensive income|349,917,702.11|433,033,908.31|
|Total other comprehensive income attributable to|||
||326,947,837.41|396,369,471.92|
|shareholders of the Company|||
|Total comprehensive income attributable to minority interest|22,969,864.70|36,664,436.39|
|VIII. Earnings per share:|||
|(I) Basic earnings per share|0.14|0.18|
|(II) Diluted earnings per share|0.14|0.18|

 Legal Representative: Head in charge of accounting: Head of the accounting department: Chen Hongguo
Dong Lianming Zhang Bo
4. Income statement of the Company
Unit: RMB
||||
|-|-|-|
||Amounts for the|Amounts for the|
|Item|||
||period|prior period|
|I. Revenue|2,000,086,603.00|1,261,921,341.41|
|Less: Operating costs|1,509,980,777.19|908,457,085.81|
|Taxes and surcharges|8,956,107.34|12,885,905.11|
|Sales and distribution expenses|60,328,897.34|47,689,998.79|
|General and administrative expenses|97,046,884.52|93,493,353.35|
|Research and development expenses|82,066,921.93|59,219,583.02|

Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
||||
|-|-|-|
|Finance expenses|527,818,510.79|453,694,048.02|
|Including: Interest expenses|680,271,275.54|696,626,615.28|
|Interest income|160,658,344.73|314,594,724.63|
|Plus: Other income|1,075,008.68||
|Investment income (“-” denotes loss)|276,223,938.89|294,222,268.43|
|Including: Investment income from associates and|||
||-1,560,406.88|-5,777,731.57|
|joint ventures|||
|Credit impairment loss (“-” denotes loss)|-47,516,333.91|-7,239,283.13|
|Gain on disposal of assets (“-” denotes loss)|-5,712,679.60|1,970,855.12|
|II. Operating Profit (“-“ denotes loss)|-62,041,562.05|-24,564,792.27|
|Plus: Non-operating income|11,070,851.80|268,363.50|
|Less: Non-operating expenses|6,387,118.13|6,916,026.81|
|III. Total profit (“-” denotes total loss)|-57,357,828.38|-31,212,455.58|
|Less: Income tax expenses|-17,381,871.64|-59,221,592.13|
|IV. Net profit (“-” denotes net loss)|-39,975,956.74|28,009,136.55|
|Net profit from continuing operations (“-” denotes net loss)|-39,975,956.74|28,009,136.55|
|IV. Total comprehensive income|-39,975,956.74|28,009,136.55|

 5. Consolidated income statement for the period from the beginning of the year to the end of the reporting period
Unit: RMB
||||
|-|-|-|
||Amounts for the|Amounts for the|
|Item|||
||period|prior period|
|I. Total revenue|22,014,178,363.64|23,492,768,818.05|
|Including: Revenue|22,014,178,363.64|23,492,768,818.05|
|II. Total operating costs|20,892,416,331.43|20,685,327,112.35|
|Including: Operating costs|16,037,798,692.65|15,765,961,398.47|
|Taxes and surcharges|192,036,292.08|197,549,747.01|
|Sales and distribution expenses|963,752,678.83|930,070,485.21|
|General and administrative expenses|808,517,752.24|725,799,621.03|
|Research and development expenses|705,690,315.68|723,110,209.34|
|Finance expenses|2,184,620,599.95|2,342,835,651.29|
|Including: Interest expenses|2,354,263,128.87|2,466,934,321.95|
|Interest income|304,096,729.01|240,596,355.69|
|Plus: Other income|59,641,233.95|83,167,106.06|
|Investment income (“-” denotes loss)|166,312,098.33|185,650,350.16|
|Including: Investment income from associates and joint|||
||-8,655,474.08|-23,726,437.11|
|ventures|||
|Gain on change in fair value (“-” denotes loss)|-1,883,064.80|-23,973,841.55|
|Credit impairment loss (“-” denotes loss)|-261,549,886.93|-183,525,156.37|

Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
||||
|-|-|-|
|Asset impairment loss (“-” denotes loss)|82,790,921.68||
|Gain on disposal of assets (“-” denotes loss)|-15,331,491.17|725,186.56|
|III. Operating profit (“-” denotes loss)|1,151,741,843.27|2,869,485,350.56|
|Plus: Non-operating income|268,505,785.14|213,875,626.25|
|Less: Non-operating expenses|16,057,989.71|13,491,403.54|
|IV. Total profit (“-” denotes total loss)|1,404,189,638.70|3,069,869,573.27|
|Less: Income tax expenses|286,659,474.62|553,555,763.61|
|V. Net profit (“-” denotes net loss)|1,117,530,164.08|2,516,313,809.66|
|(I) Classification according to the continuity of operation|||
|Net profit from continuing operations (“-” denotes net loss)|1,117,530,164.08|2,516,313,809.66|
|(II) Classification according to ownership|||
|3. Net profit attributable to|||
||1,067,755,825.72|2,481,157,773.44|
|shareholders of the Company|||
|4. Profit or loss of minority|||
||49,774,338.36|35,156,036.22|
|interest|||
|VI. Net other comprehensive income after tax|-247,029,104.22|-403,391,386.59|
|Net other comprehensive income after tax attributable to|||
||-247,029,104.22|-403,391,386.59|
|shareholders of the Company|||
|Other comprehensive income that will be reclassified to|||
||-247,029,104.22|-403,391,386.59|
|profit or loss in subsequent periods|||
|Exchange differences on translation of foreign operations|-247,029,104.22|-403,391,386.59|
|VII. Total comprehensive income|870,501,059.86|2,112,922,423.07|
|Total other comprehensive income attributable to|||
||820,726,721.50|2,077,766,386.85|
|shareholders of the Company|||
|Total comprehensive income attributable to minority interest|49,774,338.36|35,156,036.22|
|VIII. Earnings per share:|||
|(I) Basic earnings per share|0.15|0.54|
|(II) Diluted earnings per share|0.15|0.54|

 Legal Representative: Head in charge of accounting: Head of the accounting department: Chen Hongguo
Dong Lianming Zhang Bo
6. Income statement of the Company for the period from the beginning of the year to the end of the reporting period
Unit: RMB
||||
|-|-|-|
||Amounts for the|Amounts for the|
|Item|||
||period|prior period|
|I. Revenue|||
||4,696,099,019.10|4,078,215,827.23|
|Less: Operating costs|||
||3,613,267,928.83|2,882,818,698.89|
|Taxes and surcharges|||
||31,340,628.12|57,455,929.28|
|Sales and distribution expenses|156,262,010.50|137,742,324.61|

Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
||||
|-|-|-|
|General and administrative expenses|257,448,680.43|233,936,154.40|
|Research and development expenses|204,332,393.43|172,154,901.59|
|Finance expenses|1,379,257,085.04|903,986,694.58|
|Including: Interest expenses|1,977,451,686.00|1,910,292,825.08|
|Interest income|||
||684,663,818.41|1,152,849,226.50|
|Interest income|3,255,881.04|2,170,587.30|
|Investment income (“-” denotes loss)|1,286,777,082.46|351,894,141.34|
|Including: Investment income from associates and joint|||
||-14,360,263.31|-9,855,858.66|
|ventures|||
|Credit impairment loss (“-” denotes loss)|-48,361,072.12|-3,976,204.29|
|Gain on disposal of assets (“-” denotes loss)|16,703,489.82|566,364.87|
|II. Operating profit (“-” denotes loss)|312,565,673.95|40,776,013.10|
|Plus: Non-operating income|89,014,190.80|159,402,602.05|
|Less: Non-operating expenses|10,583,044.24|6,916,026.81|
|III. Total profit (“-” denotes total loss)|390,996,820.51|193,262,588.34|
|Less: Income tax expenses|-113,957,576.37|-32,650,646.92|
|IV. Net profit (“-” denotes net loss)|504,954,396.88|225,913,235.26|
|Net profit from continuing operations (“-” denotes net loss)|504,954,396.88|225,913,235.26|
|VI. Total comprehensive income|504,954,396.88|225,913,235.26|

 7. Consolidated cash flow statement for the period from the beginning of the year to the end of the reporting period
Unit: RMB
||||
|-|-|-|
||Amounts for the|Amounts for the|
|Item|||
||period|prior period|
|I. Cash flows from operating activities:|||
|Cash received from sales of goods and rendering of|||
||24,694,452,196.67|22,826,321,614.77|
|services|||
|Tax refund received|||
||3,235,185.49|9,286,422.78|
|Cash received relating to other operating activities|4,789,319,464.29|6,112,249,944.86|
|Subtotal of cash inflows from operating activities|29,487,006,846.45|28,947,857,982.41|
|Cash paid for goods and services|||
||18,654,617,667.62|15,406,856,581.77|
|Cash paid to and for employees|||
||957,941,627.76|931,350,643.01|
|Payments of taxes and surcharges|||
||1,440,370,577.89|1,712,799,956.34|
|Cash paid relating to other operating activities|1,934,852,831.68|1,823,488,953.71|
|Subtotal of cash outflows from operating activities|||
||22,987,782,704.95|19,874,496,134.83|
|Net cash flows from operating activities|||
||6,499,224,141.50|9,073,361,847.59|
|II. Cash flows from investment activities:|||
|Cash received from investments|||
||2,784,345.77|2,390,000,000.00|

Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
||||
|-|-|-|
|Cash received from investment income|||
||12,000,000.00|375,641,400.00|
|Net cash received from disposal of fixed assets,|||
||131,375,805.90|393,600.22|
|intangible assets and other long-term assets|||
|Net cash received from disposal of subsidiaries and|||
||221,000,000.00|19,610,260.70|
|other business units|||
|Cash received relating to other investment activities|||
||767,670,000.00|69,843,200.00|
|Subtotal of cash inflows from investment activities|1,134,830,151.67|2,855,488,460.92|
|Cash paid for purchase of fixed assets, intangible assets|||
||926,528,167.05|3,142,851,174.29|
|and other long-term assets|||
|Cash paid on investments|||
||1,639,194,479.24|2,085,954,389.46|
|Cash paid relating to other investment activities|189,628,400.00|103,042,210.54|
|Subtotal of cash outflows from investment activities|||
||2,755,351,046.29|5,331,847,774.29|
|Net cash flows from investment activities|||
||-1,620,520,894.62|-2,476,359,313.37|
|III. Cash flows from financing activities:|||
|Cash received from borrowings|||
||28,024,258,208.07|36,121,975,695.37|
|Cash received relating to other financing activities|||
||4,096,789,134.60|14,012,509,155.81|
|Subtotal of cash inflows from financing activities|||
||32,121,047,342.67|50,134,484,851.18|
|Cash repayments on borrowing|||
||23,844,425,199.09|27,467,045,407.89|
|Cash paid for dividend and profit distribution or interest|||
||3,051,263,128.87|4,438,836,047.90|
|payment|||
|Cash paid relating to other financing activities|9,712,203,599.23|23,217,117,156.71|
|Subtotal of cash outflows from financing activities|||
||36,607,891,927.19|55,122,998,612.50|
|Net cash flows from financing activities|||
||-4,486,844,584.52|-4,988,513,761.32|
|IV. Effect of foreign exchange rate changes on cash and cash|||
||-377,093,948.33|120,553,325.21|
|equivalents|||
|V. Net increase in cash and cash equivalents|14,764,714.03|1,729,042,098.10|
|Plus: Balance of cash and cash equivalents as at the|||
||2,381,558,242.52|2,804,408,374.46|
|beginning of the period|||
|VI. Balance of cash and cash equivalents as at the end of the|||
||2,396,322,956.55|4,533,450,472.56|
|period|||

8. Cash flow statement of the Company for the period from the beginning of the year to the end of the reporting period
Unit: RMB
||||
|-|-|-|
||Amounts for the|Amounts for the|
|Item|||
||period|prior period|
|I. Cash flows from operating activities:|||
|Cash received from sales of goods and rendering of|||
||6,426,249,401.49|5,529,614,111.40|
|services|||
|Cash received relating to other operating activities|||
||1,296,334,093.23|2,427,573,406.75|
|Subtotal of cash inflows from operating activities|7,722,583,494.72|7,957,187,518.15|
|Cash paid for goods and services|1,643,706,437.55|1,963,218,833.84|
|Cash paid to and for employees|||
||324,122,682.18|299,290,526.60|

Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report
||||
|-|-|-|
|Payments of taxes and surcharges|||
||145,658,208.00|286,150,551.10|
|Cash paid relating to other operating activities|||
||815,945,979.17|1,834,166,575.63|
|Subtotal of cash outflows from operating activities|2,929,433,306.90|4,382,826,487.17|
|Net cash flows from operating activities|4,793,150,187.82|3,574,361,030.98|
|II. Cash flows from investment activities:|||
|Cash received from investments|||
||2,784,345.77|2,350,000,000.00|
|Cash received from investment income|||
||2,000,000.00|284,041,400.00|
|Net cash received from disposal of fixed assets,|||
||75,806,913.60||
|intangible assets and other long-term assets|||
|Net cash received from disposal of subsidiaries and|||
||221,000,000.00|19,610,260.70|
|other business units|||
|Cash received relating to other investment activities|767,670,000.00||
|Subtotal of cash inflows from investment activities|1,069,261,259.37|2,653,651,660.70|
|Cash paid for purchase of fixed assets, intangible assets|||
||39,680,681.99|47,475,737.37|
|and other long-term assets|||
|Cash paid on investments|1,147,500,000.00|2,301,714,807.50|
|Subtotal of cash outflows from investment activities|||
||1,187,180,681.99|2,349,190,544.87|
|Net cash flows from investment activities|-117,919,422.62|304,461,115.83|
|III. Cash flows from financing activities:|||
|Cash received from borrowings|||
||8,067,108,555.77|9,487,503,196.92|
|Cash received relating to other financing activities|||
||5,638,813,889.00|11,525,489,947.95|
|Subtotal of cash inflows from financing activities|||
||13,705,922,444.77|21,012,993,144.87|
|Cash repayments on borrowing|8,335,983,231.30|8,707,654,631.90|
|Cash paid for dividend and profit distribution or interest|||
||1,471,593,054.48|2,426,583,005.38|
|payment|||
|Cash paid relating to other financing activities|8,479,116,872.45|13,496,703,811.58|
|Subtotal of cash outflows from financing activities|||
||18,286,693,158.23|24,630,941,448.86|
|Net cash flows from financing activities|||
||-4,580,770,713.46|-3,617,948,303.99|
|IV. Effect of foreign exchange rate changes on cash and cash|||
||-3,844,637.47|-16,058,996.41|
|equivalents|||
|V. Net increase in cash and cash equivalents|90,615,414.27|244,814,846.41|
|Plus: Balance of cash and cash equivalents as at the|||
||607,805,063.02|1,020,262,069.85|
|beginning of the period|||
|VI. Balance of cash and cash equivalents as at the end of the|||
||698,420,477.29|1,265,076,916.26|
|period|||

II. Reason for Adjustment in the Financial Statement
1. Adjustment to the relevant items in the financial statements at the beginning of the year due to the adoption starting from 2019 of the New Standards for Financial Instruments, the New Standards for
Revenue and the New Standards for Lease
□ Applicable √ Not applicable
Shangdong Chenming Paper Holdings Limited 2019 Third Quarterly Report 2. Reason for the retrospective adjustment to the comparative data in the prior period due to the adoption starting from 2019 of the New Standards for Financial Instruments and the New Standards for Lease
□ Applicable √ Not applicable
III.Auditors’ Report
Has the third quarterly report already been audited yet?
□ Yes √ No
The third quarterly report of the Company is unaudited.
By order of the Board
Shandong Chenming Paper Holdings Limited 25 October 2019