Report for the Third Quarrter of 2017 of SShandong Chennming Paper Hooldings Limitedd SHANNDONGG CHENNMINGG PAPEER HOLLDINGGS LIMITED 20117 Thirdd Quarteerly Repport
Occtober 20017
Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited I Important Notice
The board of directors (the “Board”), the supervisory committee (the “Supervisory Committee”), the directors (the “Director”), the supervisors (the “Supervisors”) and the senior management (the “Senior Management”) of the Company hereby warrant that the contents of this quarterly report are true, accurate and complete, and there are no false representations, misleading statements or material omissions, and are jointly and severally responsible for the liabilities of the Company.
All Directors were present at the Board meeting to consider and approve this quarterly report.
Chen Hongguo, the head of the Company, Hu Jinbao, the head in charge of accounting, and Dong Lianming, 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.
Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings LimitedⅡ General Information of the Company
I. Major financial data and change of shareholders
Retrospective adjustment to or restatement of the accounting data for prior years by the Company
□ Yes √ No
||||||||
|-|-|-|-|-|-|-|
||||As at the end of the prior year||Increase/decrease as at the end||
||As at the end of the||||of the reporting period||
||reporting period||||compared to the end of the||
||||||prior year||
|Total assets (RMB)|98,789,227,727.27||82,285,354,532.14||20.06%||
|Net assets attributable to shareholders|26,596,099,057.59||22,218,808,367.43||||
||||||19.70%||
|of the Company (RMB)|||||||
|||||||Increase/decrease for|
|||||||the period from the|
|||Increase/decrease for|||||
|||||||beginning of the year|
|||the reporting period as||From the beginning of|||
||The reporting|||||to the end of the|
|||compared to the||the year to the end of|||
||period|||||reporting period|
|||corresponding period||the reporting period|||
|||||||compared to the|
|||of the prior year|||||
|||||||corresponding period|
|||||||of the prior year|
|Revenue (RMB)|8,179,965,762.07|37.12%||21,929,200,769.31||32.33%|
|Net profit attributable to shareholders|966,000,240.51|||2,711,515,078.74|||
|||57.07%||||74.47%|
|of the Company (RMB)|||||||
|Net profit after extraordinary gains or|||||||
|losses attributable to shareholders of|927,544,638.20|77.44%||2,550,839,196.40||101.72%|
|the Company (RMB)|||||||
|Net cash flows from operating||||-1,613,139,694.33|||
||--|--||||48.30%|
|activities (RMB)|||||||
|Basic earnings per share (RMB per|0.41|||1.16|||
|||41.38%||||56.76%|
|share)|||||||
|Diluted earnings per share (RMB per|0.41|||1.16|||
|||41.38%||||56.76%|
|share)|||||||
|Rate of return on net assets on|||||||
||2.41%|-0.50%||9.65%||0.85%|
|weighted average basis|||||||

Items and amounts of extraordinary gains or losses
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|Amount|Note|

Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
||||
|-|-|-|
|Profit or loss from disposal of non-current assets (including|||
||-475,168.69||
|write-off of provision for assets impairment)|||
|Government grants (except for the government grants closely|||
|related to the normal operation of the Company and granted|||
|constantly at a fixed amount or quantity in accordance with a|176,601,739.21||
|certain standard based on state policies) accounted for in profit or|||
|loss for the current period|||
|Gain or loss on external entrusted loans|13,312,368.97||
|Non-operating income and expenses other than the above items|-11,009,851.10||
|Gain or loss from changes in fair value of consumable biological|||
||21,051,219.02||
|assets subsequently measured at fair value|||
|Less: Effect of income tax|37,188,106.97||
|Effect of minority interest (after tax)|1,616,318.10||
|Total|160,675,882.34|--|

Notes 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 the shareholding of the top ten shareholders as at the end of the reporting period
1. Total number of shareholders of ordinary shares and shareholders of preference shares with restored voting rights and the shareholding of the top ten shareholders
Unit: share
||||||||||
|-|-|-|-|-|-|-|-|-|
|Total number of shareholders of|89,049, of which 69,448 were holders of A|||Total number of shareholders of preference|||||
|ordinary shares as at the end of|shares, 19,188 were holders of B shares and|||shares with restored voting right as at the||||0|
|the reporting period|413 were holders of H shares|||end of the reporting period (if any)|||||
|Shareholding of top 10 shareholders|||||||||
||||Percentage|||Share pledged or|||
||||||Number of||||
|||Nature of|of|Number of||locked-up|||
|Name of shareholders|||||restricted||||
|||Shareholders|shareholdi|shares held||Status of|||
||||||shares held||Number||
||||ng|||shares|||
|SHOUGUANG CHENMING HOLDINGSCOMPANY LIMITED||State-ownedlegal person|15.13%|293,003,657|0||154,273,0||
|||||||Pledged|||
||||||||00||

Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
||||||||
|-|-|-|-|-|-|-|
|HKSCC NOMINEES LIMITED|Overseas legalperson|12.85%|248,769,250|0|||
|CHENMING HOLDINGS (HONG KONG)LIMITED|Overseas legalperson|11.75%|227,556,921|0|||
|CENTRAL HUIJIN ASSET MANAGEMENTLTD.|State-ownedlegal person|2.07%|40,137,900|0|||
|CHINA MERCHANTS BANK CO., LTD.—EVERBRIGHT PRAMERICAADVANTAGE ALLOCATION STOCKFUND|Others|0.75%|14,497,314|0|||
|NATIONAL SOCIAL SECURITY FUND 403|Others|0.56%|10,853,596|0|||
|BBH A/C VANGUARD EMERGINGMARKETS STOCK INDEX FUND|Overseas legalperson|0.44%|8,608,238|0|||
|INDUSTRIAL AND COMMERCIAL BANKOF CHINA LIMITED –EVERBRIGHTPRAMERICA MADE IN CHINA 2025FLEXIBLE ALLOCATION MIXEDSECURITIES INVESTMENT FUND|Others|0.43%|8,280,589|0|||
|JIN Xing|Domesticnature person|0.39%|7,630,100|0|||
|HONG KONG SECURITIES CLEARINGCOMPANY LIMITED|Overseas legalperson|0.36%|6,899,610|0|||
|Shareholding of the top ten shareholders of non-restricted shares|||||||
||||Number of||Class of shares||
|Name of shareholders|||non-restricted||||
||||||Class of shares|Number|
||||shares held||||
|SHOUGUANG CHENMING HOLDINGS COMPANY LIMITED|||293,003,657||RMB ordinary shares|293,003,657|
|HKSCC NOMINEES LIMITED|||248,769,250||Overseas listed||
|||||||248,769,250|
||||||foreign shares||
|CHENMING HOLDINGS (HONG KONG) LIMITED|||227,556,921||Domestic listed||
|||||||125,280,921|
||||||foreign shares||
||||||Overseas listed||
|||||||102,276,000|
||||||foreign shares||
|CENTRAL HUIJIN ASSET MANAGEMENT LTD.|||40,137,900||RMB ordinary shares|40,137,900|
|CHINA MERCHANTS BANK CO., LTD. —EVERBRIGHTPRAMERICA ADVANTAGE ALLOCATION STOCK FUND|||14,497,314||||
||||||RMB ordinary shares|14,497,314|
|NATIONAL SOCIAL SECURITY FUND 403|||10,853,596||RMB ordinary shares|10,853,596|
|BBH A/C VANGUARD EMERGING MARKETS STOCK INDEX FUND|||8,608,238||Domestic listed||
|||||||8,608,238|
||||||foreign shares||

Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
||||||
|-|-|-|-|-|
|INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED –EVERBRIGHT PRAMERICA MADE IN CHINA 2025 FLEXIBLEALLOCATION MIXED SECURITIES INVESTMENT FUND||8,280,589|||
||||RMB ordinary shares|8,280,589|
|JIN Xing||7,630,100|Domestic listed||
|||||7,630,100|
||||foreign shares||
|HONG KONG SECURITIES CLEARING COMPANY LIMITED||6,899,610|RMB ordinary shares|6,899,610|
||A shareholder, CHENMING HOLDINGS (HONG KONG) LIMITED, which is an overseas legal person, is||||
||a wholly-owned subsidiary of a shareholder, SHOUGUANG CHENMING HOLDINGS COMPANY||||
|Related party|||||
||LIMITED, which is a state-owned legal person. Hence they are persons acting in concert under||||
|relationship or acting|||||
||Administration of Disclosure of Information on the Change of Shareholding in Listed Companies||||
|in concert relationship|||||
||Procedures. HKSCC NOMINEES LIMITED and HONG KONG SECURITIES CLEARING COMPANY||||
|among the above|||||
||LIMITED are wholly-owned subsidiaries of HONG KONG EXCHANGES AND CLEARING LIMITED.||||
|shareholders|||||
||Save for the above, it is not aware that any other shareholders of tradable shares are persons acting in||||
||concert and it is also not aware that any other shareholders of tradable shares are related to each other.||||

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 reporting period||||7|||
|Shareholding of the top ten shareholders of preference shares|||||||
||||||Share pledged or||
|||Percentage||Number of|||
||Nature of||Number of||locked-up||
|Name of shareholder||of||restricted|||
||Shareholders||shares held||Status of||
|||shareholding||shares held||Number|
||||||shares||
|BEIJING YIBEN ZHONGXINGINVESTMENT MANAGEMENT CO.,LTD.|Domesticnon-state-ownedlegal person|27.78%|12,500,000|0|||
||||||Pledged|12,500,000|
|BANK OF COMMUNICATIONSINTERNATIONAL TRUST CO., LTD. -HUILI NO.167 SINGLE CAPITAL TRUST|Others|22.44%|10,100,000|0|||
|BANK OF COMMUNICATIONSINTERNATIONAL TRUST CO., LTD. -HUILI NO.136 SINGLE CAPITAL TRUST|Others|14.22%|6,400,000|0|||

Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
|||||||
|-|-|-|-|-|-|
|QILU BANK CO., LTD. - QILU BANKQUANXIN WEALTH MANAGEMENTPRODUCT SERIES||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 - CHINAFORTUNE INTERNATIONAL TRUST –CHINA FORTUNE TRUST‧MIN XIN NO.11 SINGLE CAPITAL TRUST||Others|4.44%|2,000,000|0|
||The aforesaid holders of preference shares, “BANK OF COMMUNICATIONS INTERNATIONAL|||||
|Related party||||||
||TRUST CO., LTD. - HUILI NO.167 SINGLE CAPITAL TRUST” and “BANK OF|||||
|relationship or acting in||||||
||COMMUNICATIONS INTERNATIONAL TRUST CO., LTD. - HUILI NO.136 SINGLE CAPITAL|||||
|concert relationship||||||
||TRUST”, are persons acting in concert. Save for the above, it is not aware that the remaining holders of|||||
|among the above||||||
||preference shares, and the top ten holders of preference shares and the top ten holders of ordinary shares|||||
|shareholders||||||
||are related to each other or are persons acting in concert.|||||

Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited III Material matters
I. Details and reasons for changes of major financial data and financial indicators during the reporting period
√Applicable□ No applicable
(I) Analysis of the assets and liabilities of the Company
Unit: RMB
||||||
|-|-|-|-|-|
|Item|30 September 2017|31 December 2016|Change|Reason for change|
|Monetary funds|14,767,294,153.38|10,109,930,319.49|46.07%|（1）|
|Bills receivable|4,667,456,461.50|1,590,460,875.23|193.47%|（2）|
|Prepayments|2,456,350,916.92|1,511,362,674.64|62.53%|（3）|
|Other current assets|11,472,578,975.95|6,616,744,831.28|73.39%|（4）|
|Long-term equity investments|196,324,628.83|67,251,992.88|191.92%|（5）|
|Construction in progress|6,943,190,111.56|4,115,194,870.23|68.72%|（6）|
|Intangible assets|2,099,221,292.45|1,540,959,330.74|36.23%|（7）|
|Bills payable|1,378,417,276.47|515,301,703.08|167.50%|（8）|
|Interest payable|208,900,615.00|30,731,253.71|579.77%|（9）|
|Long-term payables|6,015,612,933.90|3,951,368,854.00|52.24%|（10）|

Explanation of the reasons leading to the major changes:
(1) Monetary funds increased by46.07% as compared to the beginning of the year mainly due to an increase in other monetary funds of the Company.
(2) Bills receivable increased by193.47% as compared to the beginning of the year mainly due to an increase in sales income of the Company, as well as an increase in letters of credit for pledged bills and bills.
(3) Prepayments increased by62.53% as compared to the beginning of the year mainly due to an increase in prepayments for raw materials in order to reduce the procurement costs.
(4) Other current assets increased by73.39% as compared to the beginning of the year mainly due to an increase in receivables under financial lease due within one year.
(5) Long-term equity investments increased by191.92% as compared to the beginning of the year mainly due to the new equity investment in Weifang Sime Darby West Port.
(6) Construction in progress increased by68.72% as compared to the beginning of the year mainly due to an increase in investments in projects, including the forestry paper integration project of Huanggang Chenming.
(7) Intangible assets increased by36.23% as compared to the beginning of the year mainly due to the land use rights newly acquired by Huanggang Pulp and Haiming Mining, the subsidiaries of the Company.
(8) Bills payable increasedby167.50% as compared to the beginning of the year mainly due to an increase in payments for goods
through issuance of bills.
Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited (9) Interest payable increased by579.77% as compared to the beginning of the year mainly due to an increase in outstanding payables for corporate bonds and interests for medium-term notes.
(10) Long-term payables increased by52.24% as compared to the beginning of the year mainly due to the addition of payables under financial leaseback leases.
(II) Reasons for significant year-on-year changes of income statement items during the reporting period
Unit: RMB
||||||
|-|-|-|-|-|
|Item|January - September 2017|January - September 2016|Change|Reason for change|
|Sales revenue|21,929,200,769.31|16,572,058,544.35|32.33%|（1）|
|Business taxes and surcharges|162,946,170.78|115,224,750.98|41.42%|（2）|
|Administrative expenses|1,359,800,918.78|1,085,916,429.65|25.22%|（3）|
|Finance expenses|1,723,984,373.79|1,393,180,175.66|23.74%|（4）|
|Investment income|121,348,201.62|59,098,978.74|105.33%|（5）|
|Non-operating income|210,450,367.20|331,382,681.55|-36.49%|（6）|

Explanation of the reasons leading to the major changes:
(1) Sales revenue increased by32.33% as compared to the corresponding period of last year mainly due to an increase in sales volume of machine made paper and the rise in selling prices.
(2) Business taxes and surcharges increased by41.42% as compared to the corresponding period of last year mainly due to the reclassification of taxes under administrative expenses.
(3) Administrative expenses increased by25.22% as compared to the corresponding period of last year mainly due to an increase in expenses for research and development as compared to the corresponding period of last year.
(4) Finance expenses increased by23.74% as compared to the corresponding period of last year mainly due to an increase in expenses for interests as compared to the corresponding period of last year.
(5) Investment income increased by105.33% as compared to the corresponding period of last year mainly due to the provision made by the Company for the investment income from Guangdong Dejun.
(6) Non-operating income decreased by36.49% as compared to the corresponding period of last year mainly due to a decrease in government grants received by the Company during the period.
(III) Analysis of cash flows during the reporting period
Unit: RMB
||||||
|-|-|-|-|-|
|Item|January - September 2017|January - September 2016|Change|Reason for change|
|Net cash flows from operating activities|-1,613,139,694.33|-3,120,091,496.30|48.30%|（1）|
|Net cash flows from investment activities|-1,483,934,428.52|-895,903,143.36|-65.64%|（2）|
|Net cash flows from financing activities|4,859,032,582.33|4,698,016,246.43|3.43%|-|

Explanation of the reasons leading to the major changes:
(1) Net cash flows from operating activities increased by48.30% as compared to the corresponding period of last year mainly due to an increase in sales revenue resulting from the recovery of the paper market and a decrease in net investments in financial leases.
(2) Net cash flows from investment activities decreased by65.64% as compared to the corresponding period of last year mainly
due to an increase in cash paid for investments by the Company.
Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited II. Progress in respect to material matters and analysis of the related effects and solutions□Applicable√ No 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√ No applicable
During the reporting period, there was no undertaking made by parties involved in undertakings including theCompany’s beneficial controllers, shareholders, related parties, bidders and the Company during the reporting period or prior periods but subsisting to the end of the reporting period.
IV. Estimate of the operating results for 2017
Warning of projection on cumulative net profit for the period from the beginning of the year to the end of the next reporting period to be at a loss or expected to have material changes as compared to the corresponding period of prior year and its explanation
□Applicable√ No applicable
V. Security investments
□Applicable√ No applicable
The Company did not have any security investments during the reporting period.
VI. Derivatives investments
□Applicable√ No applicable
The Company did not have any derivative investments during the reporting period.
VII. Registration report on reception of research investigations, communications and interviews during the reporting period
□Applicable√ No applicable
The Company did not have any reception of research investigations, communications and interviews during the
reporting period.
VIII. External guarantees against the rules and regulations
□Applicable√ No applicable
There was no external guarantee provided by the Company which was against the rules and regulations during the reporting period.
Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited IX. Appropriation of funds of the Company by the controlling shareholder and its related parties for non-operating purposes
□Applicable√ No 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.
X. Fulfilment of social responsibility regarding specialised poverty relief
□Applicable√ No applicable
Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited IV Financial Statements
I. Financial Statements
1. Consolidated Balance Sheet
Prepared by: Shandong Chenming Paper Holdings Limited
30 September 2017 Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|14,767,294,153.38|10,109,930,319.49|
|Bills receivable|4,667,456,461.50|1,590,460,875.23|
|Accounts receivable|3,949,840,303.80|3,974,065,104.15|
|Prepayments|2,456,350,916.92|1,511,362,674.64|
|Other receivables|1,843,427,753.66|1,614,214,645.48|
|Inventories|5,408,154,387.01|4,862,668,746.90|
|Non-current assets due within one year|5,409,102,920.25|5,487,376,588.22|
|Other current assets|11,472,578,975.95|6,616,744,831.28|
|Total current assets|49,974,205,872.47|35,766,823,785.39|
|Non-current assets:|||
|Available-for-sale financial assets|2,453,000,000.00|1,945,000,000.00|
|Long-term receivables|8,764,627,044.99|8,844,262,173.65|
|Long-term equity investments|196,324,628.83|67,251,992.88|
|Investment properties||14,258,675.83|
|Fixed assets|27,270,769,747.52|28,811,555,365.39|
|Construction in progress|6,943,190,111.56|4,115,194,870.23|
|Construction materials|12,186,789.61|18,847,584.79|
|Intangible assets|2,099,221,292.45|1,540,959,330.74|
|Goodwill|20,283,787.17|20,283,787.17|
|Long-term prepaid expenses|140,919,078.86|157,772,100.69|
|Deferred income tax assets|513,772,113.99|497,457,826.70|
|Other non-current assets|400,727,259.82|485,687,038.68|
|Total non-current assets|48,815,021,854.80|46,518,530,746.75|
|Total assets|98,789,227,727.27|82,285,354,532.14|
|Current liabilities:|||

Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
||||
|-|-|-|
|Short-term borrowings|32,460,742,633.40|27,875,506,988.53|
|Bills payable|1,378,417,276.47|515,301,703.08|
|Accounts payable|3,422,433,283.43|3,724,266,382.06|
|Advance receipts|348,029,214.86|377,135,566.33|
|Staff remuneration payables|176,726,960.48|159,968,262.82|
|Taxes payable|342,381,176.72|236,927,459.78|
|Interest payable|208,900,615.00|30,731,253.71|
|Other payables|1,268,610,813.05|948,919,195.80|
|Non-current liabilities due within one year|7,124,994,924.39|6,237,021,557.17|
|Other current liabilities|8,157,339,181.03|6,602,863,069.45|
|Total current liabilities|54,888,576,078.83|46,708,641,438.73|
|Non-current liabilities:|||
|Long-term borrowings|6,314,079,606.96|6,935,598,781.23|
|Bonds payable|2,196,003,710.72||
|Long-term payables|6,015,612,933.90|3,951,368,854.00|
|Special payables|681,039,716.66|681,039,716.66|
|Deferred income|1,449,022,671.76|1,443,846,526.33|
|Other non-current liabilities|250,000,000.00||
|Total non-current liabilities|16,905,758,640.00|13,011,853,878.22|
|Total liabilities|71,794,334,718.83|59,720,495,316.95|
|Owners’ equity:|||
|Share capital|1,936,405,467.00|1,936,405,467.00|
|Other equity instruments|10,048,300,000.00|7,060,300,000.00|
|Including: Preference shares|4,477,500,000.00|4,477,500,000.00|
|Perpetual bonds|5,570,800,000.00|2,582,800,000.00|
|Capital reserves|6,149,257,784.90|6,149,257,784.90|
|Other comprehensive|-478,784,772.93|-805,245,771.89|
|Surplus reserves|1,132,116,106.40|1,132,116,106.40|
|Retained profit|7,808,804,472.22|6,745,974,781.02|
|Total equity attributable to shareholders of the Company|26,596,099,057.59|22,218,808,367.43|
|Minority interest|398,793,950.85|346,050,847.76|
|Total owners’ equity|26,994,893,008.44|22,564,859,215.19|
|Total liabilities and owners’ equity|98,789,227,727.27|82,285,354,532.14|

Legal Representative: Chen Hongguo Financial controller: Hu Jinbao Head of the financial department: Dong Lianming
Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited 2. Balance sheet of the Company
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|11,254,727,006.01|7,934,163,265.76|
|Bills receivable|840,178,623.78|112,943,069.85|
|Accounts receivable|50,074,012.43|84,089,911.81|
|Prepayments|3,329,268,322.12|1,003,699,885.05|
|Interest receivable|11,885,269.32||
|Other receivables|25,317,847,533.75|22,848,685,985.74|
|Inventories|784,361,615.71|663,006,714.42|
|Non-current assets due within one year||900,000,000.00|
|Total current assets|41,588,342,383.12|33,546,588,832.63|
|Non-current assets:|||
|Available-for-sale financial assets|2,453,000,000.00|1,909,000,000.00|
|Long-term equity investments|16,526,374,314.95|14,558,097,658.49|
|Investment properties||14,258,675.83|
|Fixed assets|2,381,873,175.73|3,343,366,320.45|
|Construction in progress|985,994,828.50|52,757,799.47|
|Construction materials||71,973.35|
|Intangible assets|473,409,711.42|300,218,996.05|
|Deferred income tax assets|164,239,626.96|164,139,190.27|
|Other non-current assets|54,800,000.00|67,400,000.00|
|Total non-current assets|23,039,691,657.56|20,409,310,613.91|
|Total assets|64,628,034,040.68|53,955,899,446.54|
|Current liabilities:|||
|Short-term borrowings|6,881,572,995.23|8,203,392,554.58|
|Bills payable|7,475,670,000.00|3,057,000,000.00|
|Accounts payable|545,682,916.92|654,411,787.56|
|Advance receipts|83,292,178.72|537,139,483.60|
|Staff remuneration payables|65,037,092.32|58,599,576.37|
|Taxes payable|78,812,639.95|43,087,056.70|
|Interest payable|174,160,615.00|30,731,253.71|
|Other payables|5,586,207,008.40|3,689,371,275.46|

Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
||||
|-|-|-|
|Non-current liabilities due within one year|5,559,196,937.99|5,648,861,310.04|
|Other current liabilities|8,157,339,181.03|6,602,863,069.45|
|Total current liabilities|34,606,971,565.56|28,525,457,367.47|
|Non-current liabilities:|||
|Long-term borrowings|771,497,413.63|1,521,611,382.77|
|Bonds payable|1,198,260,000.00||
|Long-term payables|5,070,422,830.39|3,005,178,750.49|
|Deferred income|52,738,483.25|56,572,797.75|
|Other non-current liabilities|250,000,000.00||
|Total non-current liabilities|7,342,918,727.27|4,583,362,931.01|
|Total liabilities|41,949,890,292.83|33,108,820,298.48|
|Owners’ equity:|||
|Share capital|1,936,405,467.00|1,936,405,467.00|
|Other equity instruments|10,048,300,000.00|7,060,300,000.00|
|Including: Preference shares|4,477,500,000.00|4,477,500,000.00|
|Perpetual bonds|5,570,800,000.00|2,582,800,000.00|
|Capital reserves|5,938,960,168.19|5,938,960,168.19|
|Surplus reserves|1,119,926,524.49|1,119,926,524.49|
|Retained profit|3,634,551,588.17|4,791,486,988.38|
|Total owners’ equity|22,678,143,747.85|20,847,079,148.06|
|Total liabilities and owners’ equity|64,628,034,040.68|53,955,899,446.54|

 3. Consolidated income statement during the reporting period
Unit: RMB
||||
|-|-|-|
|Item|Amounts for the period|Amounts for the prior period|
|I. Total revenue|8,179,965,762.07|5,965,699,811.33|
|Including: Revenue|8,179,965,762.07|5,965,699,811.33|
|II. Total operating costs|7,089,959,307.39|5,377,887,845.68|
|Including: Operating costs|5,463,612,011.51|4,144,701,407.84|
|Taxes and surcharges|56,986,158.42|29,736,313.69|
|Sales and distribution expenses|343,307,442.54|289,990,334.43|
|General and administrative expenses|503,445,919.61|391,902,602.27|
|Finance expenses|668,587,867.43|424,836,614.05|
|Loss on impairment of assets|54,019,907.88|96,720,573.40|

Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
||||
|-|-|-|
|Plus: Investment income (“-” denotes loss)|55,483,529.26|22,090,548.96|
|Including: Investment income from associates and|||
||27,516,929.26|392,435.75|
|joint ventures|||
|III. Operating profit (“-” denotes loss)|1,145,489,983.94|609,902,514.61|
|Plus: Non-operating income|51,931,072.52|102,474,327.24|
|Including: Gain on disposal of non-current assets|1,243,031.34|324,435.53|
|Less: Non-operating expenses|3,578,969.93|801,515.18|
|Including: Loss on disposal of non-current assets|2,063,003.02|34,165.48|
|IV. Total profit (“-” denotes total loss)|1,193,842,086.53|711,575,326.67|
|Less: Income tax expenses|217,301,563.56|99,388,566.27|
|V. Net profit (“-” denotes net loss)|976,540,522.97|612,186,760.40|
|Net profit attributable to shareholders of the Company|966,000,240.51|614,998,648.94|
|Profit or loss of minority interest|10,540,282.46|-2,811,888.54|
|VI. Net other comprehensive income after tax|155,763,579.06|-50,780,213.13|
|Net other comprehensive income after tax attributable to|||
||155,763,579.06|-50,780,213.13|
|shareholders of the Company|||
|Other comprehensive income that will be reclassified to|||
||155,763,579.06|-50,780,213.13|
|profit or loss in subsequent periods|||
|Translation difference of financial statements denominated|||
||155,763,579.06|-50,780,213.13|
|in foreign currency|||
|VII. Total comprehensive income|1,132,304,102.03|561,406,547.27|
|Total other comprehensive income attributable to|||
||1,121,763,819.57|564,218,435.81|
|shareholders of the Company|||
|Total comprehensive income attributable to minority|||
||10,540,282.46|-2,811,888.54|
|interest|||
|VIII. Earnings per share:|||
|(I) Basic earnings per share|0.41|0.29|
|(II) Diluted earnings per share|0.41|0.29|

 Legal Representative: Chen Hongguo Financial controller: Hu Jinbao Head of the financial department: Dong Lianming 4. Income statement of the Company during the reporting period
Unit: RMB
||||
|-|-|-|
|Item|Amounts for the period|Amounts for the prior period|
|I. Revenue|1,706,131,164.94|1,800,634,310.34|
|Less: Operating costs|1,193,116,257.66|1,433,887,369.01|

Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
||||
|-|-|-|
|Taxes and surcharges|18,092,927.04|10,099,093.08|
|Sales and distribution expenses|64,749,892.58|68,618,973.83|
|General and administrative expenses|158,346,538.91|140,786,536.50|
|Finance expenses|224,536,497.92|54,057,408.65|
|Loss on impairment of assets|-1,721,797.89|-4,942,941.64|
|Plus: Investment income (“-” denotes loss)|27,471,467.73|21,954,581.39|
|Including: Investment income from associates and joint|||
||-495,132.27|256,468.18|
|ventures|||
|II. Operating profit (“-” denotes loss)|76,482,316.45|120,082,452.30|
|Plus: Non-operating income|4,343,228.95|51,354,806.03|
|Including: Gain on disposal of non-current assets|564,393.38||
|Less: Non-operating expenses|1,825,070.96|470,784.28|
|Including: Loss on disposal of non-current assets|1,325,070.96|784.28|
|III. Total profit (“-” denotes total loss)|79,000,474.44|170,966,474.05|
|Less: Income tax expenses|-20,254,937.09|19,922,995.56|
|IV. Net profit (“-” denotes net loss)|99,255,411.53|151,043,478.49|
|V. Net other comprehensive income after tax|0|0|
|VI. Total comprehensive income|99,255,411.53|151,043,478.49|
|VII. Earnings per share:|||
|(I) Basic earnings per share|-|-|
|(II) Diluted earnings per share|-|-|

 5. Consolidated income statement from the beginning of the year to the end of the reporting period
Unit: RMB
||||
|-|-|-|
|Item|Amounts for the period|Amounts for the prior period|
|I. Total revenue|21,929,200,769.31|16,572,058,544.35|
|Including: Revenue|21,929,200,769.31|16,572,058,544.35|
|II. Total operating costs|18,970,046,742.20|15,000,475,024.81|
|Including: Operating costs|14,634,679,000.00|11,408,668,718.07|
|Taxes and surcharges|162,946,170.78|115,224,750.98|
|Sales and distribution expenses|984,805,717.89|863,724,991.48|
|General and administrative expenses|1,359,800,918.78|1,085,916,429.65|
|Finance expenses|1,723,984,373.79|1,393,180,175.66|
|Loss on impairment of assets|103,830,560.96|133,759,958.97|

Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
||||
|-|-|-|
|Plus: Gain on change in fair value (“-” denotes loss)|-11,009,851.10|-10,599,543.68|
|Investment income (“-” denotes loss)|121,348,201.62|59,098,978.74|
|Including: Investment income from associates and|||
||23,362,635.96|-6,811,398.62|
|joint ventures|||
|III. Operating profit (“-” denotes loss)|3,069,492,377.63|1,620,082,954.60|
|Plus: Non-operating income|210,450,367.20|331,382,681.55|
|Including: Gain on disposal of non-current assets|3,065,955.29|2,741,063.58|
|Less: Non-operating expenses|7,129,672.35|6,804,497.54|
|Including: Loss on disposal of non-current assets|3,541,123.98|4,077,479.69|
|IV. Total profit (“-” denotes total loss)|3,272,813,072.48|1,944,661,138.61|
|Less: Income tax expenses|548,554,890.64|406,419,988.73|
|V. Net profit (“-” denotes net loss)|2,724,258,181.84|1,538,241,149.88|
|Net profit attributable to shareholders of the Company|2,711,515,078.74|1,554,163,519.54|
|Profit or loss of minority interest|12,743,103.10|-15,922,369.66|
|VI. Net other comprehensive income after tax|326,460,998.96|-205,097,483.27|
|Net other comprehensive income after tax attributable to|||
||326,460,998.96|-205,097,483.27|
|shareholders of the Company|||
|Other comprehensive income that will be reclassified to|||
||326,460,998.96|-205,097,483.27|
|profit or loss in subsequent periods|||
|Translation difference of financial statements denominated|||
||326,460,998.96|-205,097,483.27|
|in foreign currency|||
|VII. Total comprehensive income|3,050,719,180.80|1,333,143,666.61|
|Total other comprehensive income attributable to|||
||3,037,976,077.70|1,349,066,036.27|
|shareholders of the Company|||
|Total comprehensive income attributable to minority interest|12,743,103.10|-15,922,369.66|
|VIII. Earnings per share:|||
|(I) Basic earnings per share|1.16|0.74|
|(II) Diluted earnings per share|1.16|0.74|

 6. Income statement of the Company from the beginning of the year to the end of the reporting period Unit: RMB
||||
|-|-|-|
|Item|Amounts for the period|Amounts for the prior period|
|I. Revenue|5,388,701,473.86|5,205,542,239.30|
|Less: Operating costs|3,753,815,510.75|4,183,283,135.43|
|Taxes and surcharges|56,290,076.46|23,130,058.25|

Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
||||
|-|-|-|
|Sales and distribution expenses|196,448,912.34|196,681,913.14|
|General and administrative expenses|464,970,811.33|408,342,264.32|
|Finance expenses|526,756,927.96|544,626,983.09|
|Loss on impairment of assets|11,317,153.72|-3,586,791.16|
|Plus: Investment income (“-” denotes loss)|96,961,416.40|266,126,747.21|
|Including: Investment income from associates and joint|||
||-525,752.57|216,369.85|
|ventures|||
|II. Operating profit (“-” denotes loss)|476,063,497.70|119,191,423.44|
|Plus: Non-operating income|17,494,858.09|91,356,544.13|
|Including: Gain on disposal of non-current assets|933,699.78|373,450.11|
|Less: Non-operating expenses|1,908,805.14|492,515.62|
|Including: Loss on disposal of non-current assets|1,408,805.14|22,515.62|
|III. Total profit (“-” denotes total loss)|491,649,550.65|210,055,451.95|
|Less: Income tax expenses|-100,436.69|-13,617,000.87|
|IV. Net profit (“-” denotes net loss)|491,749,987.34|223,672,452.82|
|V. Net other comprehensive income after tax|0|0|
|VI. Total comprehensive income|491,749,987.34|223,672,452.82|
|VII. Earnings per share:|||
|(I) Basic earnings per share|-|-|
|(II) Diluted earnings per share|-|-|

 7. Consolidated cash flow statement from the beginning of the year to the end of the reporting period
Unit: RMB
||||
|-|-|-|
|Item|Amounts for the period|Amounts for the prior period|
|I. Cash flows from operating activities:|||
|Cash received from sales of goods and rendering of services|20,682,008,390.14|16,060,904,509.24|
|Tax rebates received|6,142,112.71|5,646,133.71|
|Cash received relating to other operating activities|679,050,296.06|651,590,955.66|
|Subtotal of cash inflows from operating activities|21,367,200,798.91|16,718,141,598.61|
|Cash paid for goods and services|13,560,139,182.92|11,147,598,194.09|
|Cash paid to and for employees|796,561,408.01|714,282,143.95|
|Payments of taxes|1,212,046,214.97|969,117,648.05|
|Cash paid relating to other operating activities|7,411,593,687.34|7,007,235,108.82|
|Subtotal of cash outflows from operating activities|22,980,340,493.24|19,838,233,094.91|

Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
||||
|-|-|-|
|Net cash flows from operating activities|-1,613,139,694.33|-3,120,091,496.30|
|II. Cash flows from investment activities:|||
|Cash received from investment income|16,861,112.27|68,750,383.34|
|Net cash received from disposal of fixed assets, intangible assets and|||
||395,843.67|215,006.40|
|other long-term assets|||
|Cash received relating to other investment activities|972,391,073.00|304,056,200.00|
|Subtotal of cash inflows from investment activities|989,648,028.94|373,021,589.74|
|Cash paid for purchase of fixed assets, intangible assets and other|||
||1,859,472,457.46|1,268,924,733.10|
|long-term assets|||
|Cash paid on investments|614,110,000.00||
|Subtotal of cash outflows from investment activities|2,473,582,457.46|1,268,924,733.10|
|Net cash flows from investment activities|-1,483,934,428.52|-895,903,143.36|
|III. Cash flows from financing activities:|||
|Cash received from investments|40,000,000.00||
|Cash received from borrowings|39,497,574,620.08|37,799,886,869.48|
|Cash received relating to other financing activities|13,220,512,476.06|18,328,338,789.75|
|Subtotal of cash inflows from financing activities|52,758,087,096.14|56,128,225,659.23|
|Cash paid for repayments of amounts borrowed|31,347,684,782.25|32,481,340,263.49|
|Cash paid for dividend and profit distribution or interest payment|3,743,137,077.79|1,570,444,086.84|
|Cash paid relating to other financing activities|12,808,232,653.77|17,378,425,062.47|
|Subtotal of cash outflows from financing activities|47,899,054,513.81|51,430,209,412.80|
|Net cash flows from financing activities|4,859,032,582.33|4,698,016,246.43|
|IV. Effect of foreign exchange rate changes on cash and cash|||
||-28,349,867.42|-2,961,648.36|
|equivalents|||
|V. Net increase in cash and cash equivalents|1,733,608,592.06|679,059,958.41|
|Plus: Balance of cash and cash equivalents as at the beginning of the|||
||1,979,861,045.62|1,888,107,493.76|
|period|||
|VI. Balance of cash and cash equivalents as at the end of the period|3,713,469,637.68|2,567,167,452.17|

 8. Cash flow statement of the Company from the beginning of the year to the end of the reporting period Unit: RMB
||||
|-|-|-|
|Item|Amounts for the period|Amounts for the prior period|
|I. Cash flows from operating activities:|||
|Cash received from sales of goods and rendering of services|4,878,948,116.17|5,414,479,352.87|
|Cash received relating to other operating activities|1,113,913,447.97|167,105,052.62|

Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited
||||
|-|-|-|
|Subtotal of cash inflows from operating activities|5,992,861,564.14|5,581,584,405.49|
|Cash paid for goods and services|3,360,835,113.73|3,892,542,059.80|
|Cash paid to and for employees|303,489,318.02|287,707,598.25|
|Payments of taxes|281,187,045.12|185,838,759.30|
|Cash paid relating to other operating activities|689,143,413.39|184,927,673.92|
|Subtotal of cash outflows from operating activities|4,634,654,890.26|4,551,016,091.27|
|Net cash flows from operating activities|1,358,206,673.88|1,030,568,314.22|
|II. Cash flows from investment activities:|||
|Cash received from investment income|16,861,111.11|268,750,383.34|
|Net cash received from disposal of fixed assets, intangible assets and|||
||17,628.00|93,406.40|
|other long-term assets|||
|Cash received relating to other investment activities|900,000,000.00||
|Subtotal of cash inflows from investment activities|916,878,739.11|268,843,789.74|
|Cash paid for purchase of fixed assets, intangible assets and other|||
||54,575,321.80|62,251.00|
|long-term assets|||
|Cash paid on investments|2,673,511,220.00|1,240,000,000.00|
|Subtotal of cash outflows from investment activities|2,728,086,541.80|1,240,062,251.00|
|Net cash flows from investment activities|-1,811,207,802.69|-971,218,461.26|
|III. Cash flows from financing activities:|||
|Cash received from borrowings|21,235,270,880.03|27,598,877,726.66|
|Cash received relating to other financing activities|12,686,968,650.12|14,478,903,288.89|
|Subtotal of cash inflows from financing activities|33,922,239,530.15|42,077,781,015.55|
|Cash paid for repayments of amounts borrowed|19,317,134,289.21|23,603,939,264.28|
|Cash paid for dividend and profit distribution or interest payment|3,220,449,336.43|1,041,349,301.02|
|Cash paid relating to other financing activities|10,548,021,423.28|16,891,324,487.90|
|Subtotal of cash outflows from financing activities|33,085,605,048.92|41,536,613,053.20|
|Net cash flows from financing activities|836,634,481.23|541,167,962.35|
|IV. Effect of foreign exchange rate changes on cash and cash|||
||-368,087.45|-14,150,795.86|
|equivalents|||
|V. Net increase in cash and cash equivalents|383,265,264.97|586,367,019.45|
|Plus: Balance of cash and cash equivalents as at the beginning of the|||
||582,578,426.62|49,438,736.95|
|period|||
|VI. Balance of cash and cash equivalents as at the end of the period|965,843,691.59|635,805,756.40|

Report for the Third Quarter of 2017 of Shandong Chenming Paper Holdings Limited II.Auditors’ Report
Has the third quarterly report been audited?
□ Yes√ No
The third quarterly report of the Company is unaudited.
Board of Directors SHANDONG CHENMING PAPER HOLDINGS LIMITED 25 October 2017