2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. FOSHAN HUAXIN PACKAGING CO., LTD.
2014 ANNUAL REPORT
March 2015
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Section I. Important Reminders, Catalogue& Explanation
The Board of Directors, the Supervisory Committee, as well as all directors, supervisors and senior management staff of Foshan Huaxin Packaging Co., Ltd. (hereinafter referred to as “the Company”) warrant that this report is factual, accurate and complete without any false record, misleading statement or material omission. And they shall be jointly and severally liable for that.
Except the following directors, all other directors have attended in person the board session for reviewing this report.
|||||
|-|-|-|-|
|||Reason for not attending the||
|Name|Position||Name of proxy|
|||board session in person||
|Huang Xin|Director|On a business trip|Tong Laiming|

Profit distribution plan reviewed and approved by the board meeting: based on the total shares of the Company as at 31 Dec. 2014, a cash dividend of RMB 0.15 (tax included) was distributed for every 10 shares with 0 bonus shares (tax included) of and no capital reserve was turned into share capital.
Mr. Tong Laiming, company principal, Mr. Ji Xiangdong, chief of the accounting work, and Mr. Yang Yinghui, chief of the accounting organ (chief of accounting), hereby confirm that the Financial Report enclosed in this report is factual, accurate and complete.
Any forward-looking statement such as those involving the future operating environment and the operating plans in this report shall not be considered as virtual promises of the Company to investors. And investors are kindly reminded to pay attention to possible risks.
This report is prepared in both Chinese and English. Should there be any understanding discrepancy between the two versions, the Chinese version shall prevail.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Catalogue
2013 Annual Report ........................................................................................................................... 1 Section I. Important Reminders, Catalogue& Explanation .......................................................... 2 Section II. Company Profile .............................................................................................................. 6 Section III. Accouonting& Business Highlights ............................................................................. 8 Section IV. Report of the Board of Directors ................................................................................. 10 Section V. Significant Events ........................................................................................................... 28 Section VI. Change in Shares& Shareholders .............................................................................. 49 Section VII. Preferred Shares ......................................................................................................... 57 Section VIII. Directors, Supervisors, Senior Management Staff& Employees ......................... 58 Section IX. Corporate Governance ................................................................................................ 67 Section X. Internal Control ............................................................................................................. 74 Section XI. Financial Report ........................................................................................................... 77 Section XII. Documents Available for Reference ........................................................................ 199
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Explanation
|||||
|-|-|-|-|
||Refers|||
|Term||Contents||
||to|||
||Refers|||
|Company, the Company, our Company||Foshan Huaxin Packaging Co., Ltd.||
||to|||
|||Actual controller of the Company—China Paper Corporation, whose||
||Refers|||
|China Paper||primitive name is|China National Paper-Industry Investment Corp. and|
||to|||
|||renamed in Jan. 2014||
||Refers|Ultimate controller of the Company—China Chengtong Holdings Group||
|China Chengtong||||
||to|Ltd.||
||Refers|||
|Hongta Renheng||Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd.||
||to|||
||Refers|||
|Golden Pheasant Chemical||Zhuhai Golden Pheasant Chemical Co., Ltd.||
||to|||
||Refers|||
|Foshan Chengtong||Foshan Chengtong Paper Co., Ltd.||
||to|||
||Refers|||
|Huaxin Color Printing||Huaxin (Foshan) Color Printing Co., Ltd.||
||to|||
||Refers|||
|Kunshan Focai||Kunshan Focai Packaging & Printing Co., Ltd.||
||to|||
||Refers|||
|Tetra Huaxin||Tetra Huaxin (Foshan) Packaging Co., Ltd.||
||to|||
||Refers|||
|Tetra Foshan||Tetra Pak (Foshan) Co., Ltd.||
||to|||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Reminder of Major Risks
Any forward-looking statement such as those involving the future operating environment and the operating plans in this report shall not be considered as virtual promises of the Company to investors. And investors are kindly reminded to pay attention to possible risks.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Section II. Company Profile
I. Basic information of the Company
|||||
|-|-|-|-|
|Stock abbreviation|YHBB|Stock code|200986|
|Stock exchange listed with|Shenzhen Stock Exchange|||
|Chinese name of the Company|佛山华新包装股份有限公司|||
|Abbr. of the Chinese name of||||
||华新包装|||
|the Company||||
|English name of the Company||||
||Foshan Huaxin Packaging Co., Ltd.|||
|(if any)||||
|Abbr. of the English name of||||
||FSHXP|||
|the Company (if any)||||
|Legal representative of the|Mr. Tong Laiming|||
|Company||||
|Registered address|19/F, Jinghua Building, No. 18, the 5th Jihua Road, Foshan, Guangdong Province, P.R.C.|||
|Postal code for the registered||||
||528000|||
|address||||
|Office address|19/F, Jinghua Building, No. 18, the 5th Jihua Road, Foshan, Guangdong Province, P.R.C.|||
|Postal code for the office||||
||528000|||
|address||||
|Internet website of the||||
||http://www.fshxp.com|||
|Company||||
|Email address|jzw-hxbz@chinapaper.com.cn|||

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

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. III. About information disclosure and where this report is placed
|||
|-|-|
|Newspapers designated by the Company for||
||Securities Times, Ta Kung Pao (HK)|
|information disclosure||
|Internet website designated by CSRC for disclosing||
||http://www.cninfo.com.cn|
|this report||
|Where this report is placed|BOD Office of the Company|

IV. Change of the registered information
|||||||
|-|-|-|-|-|-|
|||||Registration code of||
||Registration date|Registration place|Business license No.||Organizational code|
|||||taxation||
|||Guangdong||||
|||Provincial||||
|||||GSZ No.||
|Initial registration|21 Jun. 1999|Administration for|19035257-5||70768227-9|
|||||440601707682279||
|||Industry and||||
|||Commerce||||
|||Foshan Municipal||||
|At the end of the||Administration for||GSZ No.||
||29 Nov. 2010||19035257-5||70768227-9|
|reporting period||Industry and||440601707682279||
|||Commerce||||
|Changes of the main business since listing||||||
|||Unchanged||||
|(if any)||||||
|Changes of the controlling shareholder (if||||||
|||Unchanged||||
|any)||||||

V. Other information
The CPAs firm hired by the Company:
|||
|-|-|
|Name|BDO China Shu Lun Pan Certified Public Accountants LLP|
|Office address|4/F, 61 Nanjing East Road, Huangpu District, Shanghai, P.R.C.|
|Signing accountants|Du Xiaoqiang, Jiang Gan|

Sponsor engaged by the Company to conduct sustained supervision during the reporting period
□ Applicable√ Inapplicable
Financial consultant engaged by the Company to conduct sustained supervision during the reporting period□ Applicable√ Inapplicable
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Section III. Accounting& Business Highlights
I. Major accounting data and financial indicators
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or correction of any accounting error?
□ Yes√ No
||||||
|-|-|-|-|-|
||||Increase or decrease of||
||2014|2013|this year over last year|2012|
||||(%)||
|Operating revenue (RMB Yuan)|3,552,698,716.17|4,006,109,812.66|-11.32%|3,646,702,240.82|
|Net profit attributable to|83,284,859.23|79,060,852.74|||
|shareholders of the Company|||5.34%|268,480,430.68|
|(RMB Yuan)|||||
|Net profit attributable to|||||
|shareholders of the Company after|56,027,427.75|31,046,179.76|80.46%|51,677,120.22|
|extraordinary gains and losses|||||
|(RMB Yuan)|||||
|Net cash flows from operating|479,890,329.98|821,251,323.61|||
||||-41.57%|19,164,596.26|
|activities (RMB Yuan)|||||
|Basic EPS (RMB Yuan/share)|0.16|0.16|0.00%|0.53|
|Diluted EPS (RMB Yuan/share)|0.16|0.16|0.00%|0.53|
|Weighted average ROE (%)|4.70%|4.61%|0.09%|16.55%|
||||Increase or decrease of||
||As at 31 Dec. 2014|As at 31 Dec. 2013|this year-end than last|As at 31 Dec. 2012|
||||year-end (%)||
|Total assets (RMB Yuan)|6,434,127,025.51|5,773,266,460.61|11.45%|6,429,081,652.74|
|Net assets attributable to|1,812,763,910.47|1,729,936,978.68|||
|shareholders of the Company|||4.79%|1,706,059,800.96|
|(RMB Yuan)|||||

II. Differences between accounting data under domestic and overseas accounting standards 1. Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese accounting standards
□ Applicable√ Inapplicable
No difference.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards
□ Applicable√ Inapplicable
No difference.
III. Items and amounts of extraordinary gains and losses
√Applicable□ Inapplicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|2014|2013|2012|Note|
|Gain/loss on the disposal of non-current|24,546,653.22||||
|assets (including the offset part of the asset||51,123,921.58|280,004,646.96||
|impairment provisions)|||||
|Government grants recognized in the current|14,044,743.94||||
|period, except for those acquired in the|||||
|ordinary course of business or granted at||7,246,780.00|10,528,559.91||
|certain quotas or amounts according to the|||||
|government’s unified standards|||||
|Gain/loss on debt restructuring|||-136,610.80||
|Impairment provision reversal of accounts|||||
|receivable on which the impairment test is|||828,429.15||
|carried out separately|||||
|Non-operating income and expense other|4,027,332.47||||
|||16,236,462.91|5,788,931.29||
|than the above|||||
|Less: Income tax effects|7,172,671.53|12,941,980.74|71,762,094.83||
|Minority interests effects (after tax)|8,188,626.62|13,650,510.77|8,448,551.22||
|Total|27,257,431.48|48,014,672.98|216,803,310.46|--|

Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item□ Applicable√ Inapplicable
No such cases during the reporting period.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Section IV. Report of the Board of Directors
I. Overview
Looking back into 2014, the global economy was in a slow recovery with multiple uncertainties throughout the year. The European region, in particular, recorded a growth much weaker than expected. Meanwhile,China’s economic growth also continued to slow down with an annual GDP growth of7.4%, representing the slowest in 24 years. As a basic industry closely related to the national economy, the difficulties are more than before in 2014.The decline in growth of domestic consumption demand also greatly affect the market demand for packaging paper, especially top-grade ivory board. Demand growth is restrained during a certain period of time.What’s more, the recent two years and the few years following are expected to continue to witness a flood of new capacity of ivory board in different varieties, which would cause a big difference between the rapidly growing production capacity and the weakening demand. All these factors will create difficulties and challenges for the Company.
Meanwhile, the new law of environmental protection, the stricter emission standards, the restrained high-end consumption, the increasing difficulty in recruiting, the increasing average salary, etc. have been building up pressure on the production and operation of the Company.
In 2015, the policies and reform factors will continue to boost growth in the domestic economy. The papermaking industry also began to step into the de-capacity period in Y2015, with the fixed assets investment of the industry tended to decline and the enterprises expansion ended. For the sub-industry of the packaging paper, especially the ivory paper, the problems of rapidly growth of the capacity and the market release will continue. The relationship between supply and demand in different subdivision of the industry has great difference in structure, and this will be an important external factor of the company continued to maintain profitability.
In face of a severe external environment, the Company will adhere to the operating strategy of “innovation& change, transformation& upgrade, integration& development”, developing individualized and differentiate products and exploring new markets through innovation and transformation so as to solidify its competitive edges. It will also try to enlarge the space for development through optimizing and integrating its assets.
II. Main business analysis
1. Overview
Overview of the reporting period progress of development strategies and business plans disclosed in previous periods:
Products structure adjustment, new products study and development among the development plan in previous periods both achieved favorable achievements, with the proportion of the high-value-added products exceeded60%, which led the regular income of the Company gained constantly growth and also became the important measures for reserving the losses as well as the development of the subsidiaries of the Company.
The Company included the a piece of land of the West Side, Gangkou Rd, Chancheng District, Foshan into the government purchases in previous periods, which had been successfully transferred in the last year through multiple times of coordination, and would acquire profits that exceed the anticipation according to the agreements.
Expansion Project of Phase III of Huaxin Color Printing of the planning projects of the Company in previous periods had completed the workshop construction and the execution of the first batch of equipments, and the Company was making great efforts to develop new customers as well as research and development new products and technique that prepared for developing high-end customers for
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. the future.
The job of purchasing20% equities of Chengtong Finance Co., Ltd. of the planning project of the Company in previous periods had successfully completed and had distributed profits for the Company during the reporting period.
Owning to the immature conditions of the two jobs such as planning the Yangtze River Delta Printing and Packaging base as well as solving the historical problems of B shares of the planning of the Company in previous periods, the planningdidn’t acquire great progress during the reporting period and would be constantly promoted in future.
State the reasons why theCompany’s actual business performance is20% lower or higher than the earning forecast for the reporting period which has been publicly disclosed earlier:
□ Applicable√ Inapplicable
Changes of the main operation mode
□ Applicable√ Inapplicable
2. Revenues
Explanation:
Because the Company closed the subsidiary-Foshan Chengtong Paper Co., Ltd. during the reporting period, the products sales volume and the operation income of the Company declined; besides, influenced by the concentrated release of capacity of the ivory board industry, the sales volume of which also declined a bit.
Are theCompany’s goods selling revenue higher than the service revenue?
√ Yes□ No
|||||||
|-|-|-|-|-|-|
|Industry|Item|Unit|2014|2013|YoY +/-%|
||Sales volume|Ten thousand tons|50.48|64.41|-18.52%|
|Paper-making|Output|Ten thousand tons|49.06|61.35|-20.03%|
||Stock|Ten thousand tons|6.6|8.35|-20.96%|

 Reasons for anyover-30% YoY movement of the data above:
□ Applicable√ Inapplicable
Major orders on hand:
□ Applicable√ Inapplicable
Significant change or adjustment of theCompany’s products or services during the reporting period:
√ Applicable□ Inapplicable
During the reporting period, the subordinate subsidiary Foshan Chengtong Paper Co., Ltd. of the Company (referred to as Foshan Chengtong for short) had ceased production in Jan., and the production halts of the subsidiary would directly reduce the production and sales volume of the coated paper. According to the planning, the coated paper will quit the production scope of the Company during a period in the future. In 2013, the operation revenue of Foshan Chengtong was of RMB 320,768,820 that covered8% of the consolidation operation income, with the net profits of RMB -60,077,900 and the absolute value of the losses covered61.48% of the consolidation operation income of the Company. Because the coated paper business was the business with losses of the Company in recent years, the reduction would be beneficial to reduce the operating losses amount and perfect the products structure of the Company.
Major customers:
|||
|-|-|
|Total sales to the top 5 customers (RMB Yuan)|830,576,599.77|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
|Ratio of the total sales to the top 5 customers to the||
||24.45%|
|annual total sales (%)||

Information about the top 5 customers:
√ Applicable□ Inapplicable
|||||
|-|-|-|-|
|Serial No.|Name of customer|Sales (RMB Yuan)|Proportion in annual total sales|
|1|Customer A|350,708,518.10|10.32%|
|2|Customer B|170,747,162.34|5.03%|
|3|Customer C|120,302,348.17|3.54%|
|4|Customer D|97,264,943.50|2.86%|
|5|Customer E|91,553,627.66|2.70%|
|Total|--|830,576,599.77|24.45%|

 Other notes of the main customers
□ Applicable√ Inapplicable
3. Costs
Classified by industry:
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||2014||2013|||
|Industry|Item||Proportion in||Proportion in|YoY +/-|
|||Amount||Amount|||
||||operating costs||operating costs||
|Manufacture||2,880,124,643.42|100.00%|3,423,875,741.27|100.00%|-15.88%|

 Classified by product:
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||2014||2013|||
|Product|Item||Proportion in||Proportion in|YoY +/-|
|||Amount||Amount|||
||||operating costs||operating costs||
|Duplex board||79,677,879.18|2.77%|326,026,186.59|9.52%|-75.56%|
|Ivory board||2,439,881,057.80|84.71%|2,723,804,294.88|79.55%|-10.42%|
|Presswork||197,410,288.54|6.85%|184,860,824.39|5.40%|6.79%|
|Latex||163,155,417.90|5.67%|188,520,701.36|5.51%|-13.45%|
|Calcium|||||||
|||||663,734.05|0.02%|-100.00%|
|carbonate|||||||

Notes:
1. Calcium carbonate in 2014 mainly was internal related party transaction and without any individual external sales.
2. Packaging paper for liquid had been included into the statistical range of ivory board thatdidn’t make individual assortment.
Main suppliers:
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
|Total purchases from the top 5 suppliers （RMB Yuan）|1,048,450,136.80|
|Ratio of the total purchases from the top 5 suppliers to the||
||40.15%|
|annual total purchases（%）||

Note: Except for suppliers under the actual control of the same state-owned asset management institution, those under the same actual controller shall be combined in statement.
Information about the top 5 suppliers:
√ Applicable□ Inapplicable
|||||
|-|-|-|-|
|||Procurement amount (RMB|Proportion in annual total procurement|
|Serial No.|Name of supplier|||
|||Yuan)|amount|
|1|Supplier A|449,704,129.53|17.22%|
|2|Supplier B|182,165,619.66|6.98%|
|3|Supplier C|147,198,480.53|5.64%|
|4|Supplier D|136,983,802.64|5.25%|
|5|Supplier E|132,398,104.44|5.07%|
|Total|--|1,048,450,136.80|40.15%|

 Note: Except for suppliers under the actual control of the same state-owned asset management institution, those under the same actual controller shall be combined in statement.
Other notes of the main suppliers
□ Applicable√ Inapplicable
4. Expense
Item 2014 2013 YoY+/-%
||||
|-|-|-|
|14,596,194.98|22,782,408.90|-35.93%|

Business tax and surtaxes decreased by35.93% over last year mainly because operating revenue decreased.
5.R&D expenses
In the reporting period, the Company has developed many new products. Main contents of research and development are as follows: 1. As for the ivory board, the Company mainly studied and tested the SBS purple fabric ivory board, SBS ID code anti-counterfeiting paper, special hue coated duplex board, special specifications liquid wrapping paper, special performance high- bulk ivory board, special hue cigarette paper and expressage special paper.
2. As for the color printing technology, the main study and application were as follows: introduced and adopted the digital printing film technology, silver money screen data proofread technology; studied and developed the solvent-free two-component composite technology to replace the traditional technique of PE composite extrusion; besides, three technology such as avoid-coated curly automatic labeling labels, flexo printing adhesive labels and aluminum foil composite materials UV printed packaging material gained the high-tech product certification.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 6. Cash flows
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|2014|2013|YoY +/-|
|Subtotal of cash inflows from|3,346,146,233.58|3,151,996,919.76||
||||6.16%|
|operating activities||||
|Subtotal of cash outflows from|2,866,255,903.60|2,330,745,596.15||
||||22.98%|
|operating activities||||
|Net cash flows from operating|479,890,329.98|821,251,323.61||
||||-41.57%|
|activities||||
|Subtotal of cash inflows from|9,603,980.96|51,491,678.51||
||||-81.35%|
|investing activities||||
|Subtotal of cash outflows from|402,938,656.29|200,038,588.03||
||||101.43%|
|investing activities||||
|Net cash flows from investing|-393,334,675.33|-148,546,909.52||
||||164.79%|
|activities||||
|Subtotal of cash inflows from|2,529,205,000.37|1,372,183,849.94||
||||84.32%|
|financing activities||||
|Subtotal of cash outflows from|2,702,056,106.89|2,222,692,993.98||
||||21.57%|
|financing activities||||
|Net cash flows from financing|-172,851,106.52|-850,509,144.04||
||||-79.68%|
|activities||||
|Net increase in cash and cash|-87,000,163.56|-178,623,629.93||
||||-43.45%|
|equivalents||||

Reasons for anyover-30% YoY movement of the data above:
√ Applicable□ Inapplicable
1. Net cash flows from operating activities decreased by41.57% over last year mainly because the operation income reduced and the strategic purchase of the raw materials increased;
2. Cash inflows from investing activities decreased by81.35% over last year mainly because the disposal of non-current assets of 2013 led to the cash inflows increased sharply while there was no such inflow in Y2014;
3. Cash outflows from investing activities increased by101.43% over last year mainly because the purchase of long-term equity in 2014 led to the cash outflows increased sharply;
4. Changes of net cash flows from investing activities were influenced by the inflows and outflows of the comprehensive investment activities;
5. Cash inflows from financing activities increased84.32% over last year mainly because the borrowings scale enlarged;
6. Net cash flows from financing activities decreased79.68% over last year mainly because the borrowings scale enlarged with the comprehensive influences of the increase of the financing activities payment;
7. Net increase in cash and cash equivalents decreased43.45% over last year mainly because the districted capital (cash deposit and
pledge overdue funds of notes) was of large amount of the reporting period.
Reasons for a big difference between the operating cash flows and the net profit:
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.□ Applicable√ Inapplicable
III. Breakdown of main business
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||||Increase/decrease|||
||||||Increase/decrease|Increase/decrease|
||Operating|||of operating|||
|||Operating cost|Gross profit rate||of operating cost|of gross profit|
||revenue|||revenue over last|||
||||||over last year|rate over last year|
|||||year|||
|Classified by industry:|||||||
|Manufacture|3,397,014,091.45|2,880,124,643.42|15.22%|-13.19%|-15.88%|21.68%|
|Classified by product:|||||||
|Duplex board|48,802,387.17|79,677,879.18|-63.27%|-84.15%|-75.56%|-971.54%|
|Ivory board|2,893,604,162.62|2,439,881,057.80|15.68%|-7.68%|-10.42%|19.71%|
|Presswork|247,590,676.51|197,410,288.54|20.27%|1.13%|6.79%|-17.26%|
|Latex|207,016,865.15|163,155,417.90|21.19%|-8.13%|-13.45%|29.67%|
|Classified by region:|||||||
|Domestic sale|3,005,923,153.81|2,512,797,080.36|16.41%|-11.24%|-13.13%|12.42%|
|Export|391,090,937.64|367,327,563.06|6.08%|-25.72%|-30.87%|759.57%|

 Where theCompany’s accounting standard of the main business data above changed during the reporting period, give the main business data of the latest year adjusted according to the accounting standard at the end of the reporting period:
□ Applicable√ Inapplicable
IV. Asset and liability analysis
1. Major changes of asset items
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||As at 31 Dec. 2014||As at 31 Dec. 2013||||
||||||Proportion||
|||Proportion in||Proportion in||Explain any major change|
||Amount||Amount||change||
|||total assets||total assets|||
||474,549,403.56||201,666,231.22||||
|Monetary funds||7.38%||3.49%|3.89%||
|Accounts|837,978,587.68||867,805,009.95||||
|||13.02%||15.03%|-2.01%||
|receivable|||||||
||942,156,138.62||780,502,680.31||||
|Inventories||14.64%||13.52%|1.12%||
|Investing real|12,605,907.08||16,380,804.64||||
|||0.20%||0.28%|-0.08%||
|estate|||||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
|Long-term equity|246,747,332.67||7,606,994.20|||
|||3.83%||0.13%|3.70%|
|investment||||||
||2,926,710,908.66||2,964,629,037.82|||
|Fixed assets||45.49%||51.35%|-5.86%|
|Construction in|154,209,661.31||113,869,930.02|||
|||2.40%||1.97%|0.43%|
|progress||||||

2. Major changes of liability items
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||2014||2013||||
||||||Proportio||
|||Proportion in||Proportion in||Explain any major change|
||Amount||Amount||n change||
|||total assets||total assets|||
|Short-term|1,130,267,087.23||746,518,360.93||||
|||17.57%||12.93%|4.64%||
|borrowings|||||||

3. Assets and liabilities measured at fair value
√ Applicable□ Inapplicable
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|||Gain/loss on||||||
||||Cumulative fair|Impairment|Purchased|||
|||fair value||||Sold amount in||
||Opening||value change|provisions in|amount in the||Closing|
|Item||change in the||||the reporting||
||amount||recorded into|the reporting|reporting||amount|
|||reporting||||period||
||||equity|period|period|||
|||period||||||
|Financial assets||||||||
|1. Financial||||||||
|assets||||||||
|measured by||||||||
|fair value with||||||||
|the changes||||||||
|included||||||||
||4,976,178.84|||||4,862,620.84|113,558.00|
|current gains||||||||
|and losses||||||||
|(excluding||||||||
|derivative||||||||
|financial||||||||
|assets)||||||||
|Total of the||||||||
||4,976,178.84|||||4,862,620.84|113,558.00|
|above||||||||
|Financial|0.00|||||0.00|0.00|

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

Did any significant change occur to the attribute of theCompany’s main asset measurement during the reporting period?
□ Yes√ No
4. Main foreign assets
□ Applicable√ Inapplicable
V. Core competitiveness analysis
The patents newly declared in Y2014 are of 10 items, including 9 patents for invention and 1 utility model. The subsidiaries of the Company totally received patents of 8 items, of which there were 7 patents for invention and 1 patent for utility models; including “a kind of coated duplex board its production technique used for skin packing” in papermaking field, “a production method of the paper materials of the active windows which own covert and uncover function” etc.
In 2014, the Company executed affirmation and declaration of multiple high-tech technology products, including avoid-coated curly automatic labeling labels, flexo printing adhesive labels and aluminum foil composite materials UV printed packaging material gained certifications. Besides, multiple items such as SBS ID code anti-counterfeiting coated duplex board and direct vacuum aluminum coated duplex board had passed provincial scientific and technological achievements appraisal and gained the science and technology award.
VI. Investment analysis
1. Investments in equities of external parties
(1) Investments in external parties
√ Applicable□ Inapplicable
||||
|-|-|-|
|Investments in external parties|||
|Investment amount in 2014 (RMB Yuan)|Investment amount in 2013 (RMB Yuan)|+/-|
|231,450,200.00|49,862,600.00|364.18%|
|Particulars about investees|||
|||Proportion of the Company’s investment in|
|Name of investee|Main business||
|||the investee’s total equity interests|
||Non-bank financial business of group||
|Chengtong Finance Co., Ltd.||20.00%|
||finance company||

(2) Equity-holdings in financial enterprises
√ Applicable□ Inapplicable
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Enterprise|Enterprise|Initial|Opening|Opening|Closing|Closing|Closing|Gain/loss|Accountin|Equity|
|name|variety|investment|equity-hol|equity-hol|equity-hol|equity-hol|book value|in the|g title|source|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||cost (RMB|dings|ding ratio|dings|ding ratio|(RMB|reporting|||
|||Yuan)|(share)||(share)||Yuan)|period|||
|||||||||(RMB|||
|||||||||Yuan)|||
|Guangdon|Commercial bank|||||||||Incorporat|
|g|||||||||Long-term|ion with a|
|Developm||113,558.00|113,558|0.00%|113,558|0.00%|113,558.00|0.00|equity|capital|
|ent Bank|||||||||investment|c ontributio|
|Co., Ltd.||||||||||n|
|Total||113,558.00|113,558|--|113,558|--|113,558.00|0.00|--|--|

 (3) Securities investments
√ Applicable□ Inapplicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Sharehold||Sharehold||Gain/loss|||
||||Initial|Number||Number||Closing||||
||||||ing||ing||for|||
||||investmen|of shares||of shares||book||||
|Variety of|Code of|Name of|||percentag||percentag||reporting|Accounti|Source of|
||||t cost|held at||held at||value||||
|securities|securities|securities|||e at||e at||period|ng title|stock|
||||(RMB|period-be||period-en||(RMB||||
||||||period-be||period-en||(RMB|||
||||Yuan)|gin||d||Yuan)||||
||||||gin||d||Yuan)|||
|||||||||||Available|Contribut|
||||1,854,600||||||5,188,211|-for-sale|ion and|
|Stock|000507|ZHG||902,156|0.11%|0|0.00%|0.00||||
||||.00||||||.83|financial|shares|
|||||||||||assets|allotment|
|Other securities investment held||||||||||||
||||0.00|0|--|0|--|0.00|0.00|--|--|
|at the period-end||||||||||||
||||1,854,600||||||5,188,211|||
|Total||||902,156|--|0|--|0.00||--|--|
||||.00||||||.83|||
|Disclosure date of the board||||||||||||
|announcement on approval of||||||||||||
|the securities investment||||||||||||
|Disclosure date of the general||||||||||||
|meeting announcement on||||||||||||
|approval of the securities||||||||||||
|investment (if any)||||||||||||

(4) Shareholdings in other listed companies:
□ Applicable√ Inapplicable
The Company did not have any shareholding in any other listed company in the reporting period.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 2. Wealth management entrustment, derivative investments and entrustment loans
(1) Wealth management entrustment
□ Applicable√ Inapplicable
The Company did not make any wealth management entrustment in the reporting period.
(2) Derivative investment
□ Applicable√ Inapplicable
The Company did not carry out any derivative investment in the reporting period.
(3) Entrustment loans
□ Applicable√ Inapplicable
There were no entrustment loans in the reporting period.
3. Use of raised funds
□ Applicable√ Inapplicable
There was use of raised fund in the reporting period.
4. Analysis to main subsidiaries and stock-participating companies
√ Applicable□ Inapplicable
Main subsidiaries and stock-participating companies:
Unit: RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Main|||||||
|Company|Company|||Registered|||Operating|Operating||
|||Industry|||Total assets|Net assets|||Net profit|
||||products/ser|||||||
|name|variety|||capital|||revenues|profit||
||||vices|||||||
|Zhuhai|||Ivory|||||||
|S.E.Z.|||board,|||||||
|Hongta|||packaging|||||||
|||||USD||||||
|Renheng||Manufactur|base paper||5,196,864,7|2,696,305,8|3,186,263,0|139,737,06|134,146,83|
||Subsidiary|||243,609,90||||||
|Paper Co.,||e|for liquid||97.69|05.18|78.91|1.02|4.91|
|||||9||||||
|Ltd.|||food, latex|||||||
|(combinatio|||and calcium|||||||
|n)|||carbonate|||||||
|Zhuhai|||Ivory|||||||
|S.E.Z.|||board,|USD||||||
|||Manufactur|||4,633,641,2|2,653,928,8|2,210,557,8|82,951,763.|75,099,623.|
|Hongta|Subsidiary||packaging|243,609,90||||||
|||e|||76.89|14.09|47.86|96|20|
|Renheng|||base paper|9||||||
|Paper Co.,|||for liquid|||||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Ltd.|||food|||||||
|(mainly:||||||||||
|monomer||||||||||
|enterprise||||||||||
|data)||||||||||
||||Ivory|||||||
|Zhuhai|||board,|||||||
|||||RMB||||||
|Huafeng||Manufactur|packaging||2,356,598,3|961,613,37|1,412,835,5|15,808,076.|24,063,292.|
||Subsidiary|||984.56||||||
|Paper Co.,||e|base paper||48.14|7.75|76.11|35|82|
|||||million||||||
|Ltd.|||for liquid|||||||
||||food|||||||
||||Coated|||||||
|Foshan||||||||||
||||duplex|||||||
|Chengtong||Manufactur||RMB 300|585,692,97|116,510,62|53,478,830.|-80,623,767|-77,763,910|
||Subsidiary||board,|||||||
|Paper Co.,||e||million|6.07|8.63|62|.79|.41|
||||coated craft|||||||
|Ltd.||||||||||
||||paper|||||||
|Huaxin||||||||||
||||Color|||||||
|(Foshan)||||||||||
|||Manufactur|package|USD 12.80|406,379,86|197,977,08|251,662,32|11,476,582.|10,376,801.|
|Color|Subsidiary|||||||||
|||e|and tag|million|4.35|5.69|8.03|16|73|
|Printing||||||||||
||||printing|||||||
|Co., Ltd.||||||||||
|Zhuhai||||||||||
|Golden|||Latex and|||||||
|||Manufactur||RMB|218,880,36|200,418,49|323,730,93|42,051,970.|35,897,456.|
|Pheasant|Subsidiary||calcium|||||||
|||e||69,271,900|7.29|1.61|6.76|29|03|
|Chemical|||carbonate|||||||
|Co., Ltd.||||||||||

Explain particulars about main subsidiaries and stock-participating companies:
1.Headquater of Hongta Renheng and Zhuhai Huafeng: sales volume and sales revenue of ivory board business decreased while the profits increased. The sales volume of ivory board of Y2014 of Foshan Huaxin Packaging Co., Ltd. declined of 47,700 tons over last year which led the sales revenue declined; which was influenced on the market factors such as the concentrated release of production capacity of the ivory board on one side, on the other side was the result of the Company initially adjusted the products structure. Hongta Renheng decreased with big proportion of the production and sales volume of the social card products in 2014 and sharply improved the production and sales volume of the paper with high profits such as cigarette card and food card. It was because of the execution of the adjust strategy of the products structure, the profits of Hongta Renheng (combination, including Golden Pheasant Chemical)increased sharply with the total amount of the whole year profits of RMB 0.15 billion and the YoY increase about140%. 2. Huaxin Color Printing: the packaging printing business influenced by the slowly increase of the economy and the fierce horizontal competition, thus the price war of the packaging printing market became more and more fierce that led the profits declined. Especially was the competitive price falling of the key products which influenced the profits, and at the same time, the order amount of the core main customers decreased of about 30 million, which directly led the profits fail to achieve the goals in 2014.
3. Foshan Chengtong ceased production since Jan. 2014, which led the operation revenue and profits of Foshan Huaxin Packaging
decreased. Because the enterprise was cleaning the inventory overstocked commodities, the sales unit price was lower than the
products cost, with the reasons such as disposing the cost expenses of previous years that led the losses amount of Foshan Chengtong
Paper rather large.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. In the reporting period, subsidiaries acquired and disposed:
□Applicable√ Inapplicable
5. Significant projects invested with non-raised funds
□ Applicable√ Inapplicable
No significant projects of investments with non-raised funds during the reporting period.
VII. Predict the operating results of Jan.-Mar. 2015
Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-begin to the end of the next reporting period according to prediction, as well as explanations on the reasons:
□ Applicable√ Inapplicable
VIII. Special purpose entities controlled by the Company
□ Applicable√ Inapplicable
IX. Outlook of theCompany’s future development
I. Industry environment and outlook
(I) Overall situation of domestic papermaking industry
In 2014, the domestic papermaking industry had been through the phases of “double bind of supply and demand” “gradually access” “weak recovery”, however, the differences compared between the rapid growth of the capacity and the slowly increase of the requirements was still tremendous. The papermaking industry also began to step into the de-capacity period in Y2015, with the fixed assets investment of the industry tended to decline and the enterprises expansion ended, and the industry profits gradually recovered. According to the statistics data of State Statistics Bureau, the accumulative production volume was of 109.814 million tons of the domestic machine-made paper and paperboard from Jan. to Nov. 2014, which only increased2.97% over the same period of last year, which meant the differeces between supply and demand led the domestic capacity factor was rather low, the commencement of work was insufficient and the profits space was narrow.
(II) Situation of sub-industry of ivory paper
For the sub-industry of the packaging paper, especially the ivory paper, the problems of rapidly growth of the capacity and the market release will be more serious, which led the future industry profits face with the pressure. In 2014, the whole year newly increased productivity of the whole year of the white cardboard was about 1.8 million tons and the domestic totao productivity had achived 11 million tons that increased35% over the year-end of 2013 of the design capacity. Besides, Hubei Junma and Xinxiang Xinya were both planed to put into production in 2015.
Under the market situation of the supply seriously expansion of new Capacity in 2014, led the operation rate of the subsidiaries of the whole packaging paper industry become rather low; at the same time, the competition directly led to the reduce of the production price. Under the market situation of serious unbalance, the ivory board of the Company was also be greatly influenced, thus the production and sales volume of the reporting period was a certain extent of decline over the same period of the year before last year. II. Opportunities and Strategies for Future Development of the Company
The strategic goals of the Company were to be established on the high-end manufacture of the paper packaging materials and to build up the preponderant competitive power which could maintain the sustainable development among the global ivory board industry; to realized the strategic upgrade transformation of aheading the “new packaging materials field” of the tranditional industry through
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. “enterprise value chain extension and business model change”, and to realize the operation goal of “10 billion production value and 1 million tons capacity” that to grow up to be the large-sized backbone enterprises with local 10 billion scale.
(I) Developing Deep-processing paper products and seeking the higher products added value. The Company made great efforts to develop multiple products with high technology content according to the thinking of improving the added value of the base paper products for occupying the market opportunities. Since the successful trial-production of Zhuhai Huafeng sterile liquid package paper at the year-end of the year befor last year, the Company invested with greater efforts in the development and study of the paper post processing and the deep-processing technology of the reporting period.
(II) Developing the overseas cigarette card market with great efforts that with an eye to the high standing point overseas cooperation. And to reduce the risks of the enterprises brought by the domestic price competition through gradually development of the international business.
(III) Expanding the packaging printing business and developing the high-end products such as pharmaceutical packaging and specialized packaging. Aims at the important customers to execute the upgrade transformation of the new products tackling and the core products, and to develop more high-end products for the customers especially to aim at the key tackling of the pharmaceutical packaging and specialized packaging.
(IV) Seeking the methods to breakthrough the bottleneck of the capital market and opening the magnificent space of the development of the Company.
III. Main work of 2015
(I) Appropriately make great efforts of the assets disposal of Foshan Chengtong
Positively widen the thinking and appropriately make great efforts to the liquidation work and assets disposal work of Foshan Chengtong Paper that strive for the miniman amount of the losses.
(II) Making great efforts to the assets integration and capital operation
1. To strenthgen the tracking and study of the relevant polices of the capital market, to tightly follow up the steps of the securities market reform, to explore and make great efforts to the preparation job of the B shares reform and to adopt measures to slove the historical problems of the B shares in good time.
2. According to the strategic planing of Foshan Huaxin Packaging and with mature conditions, the Company will execute the industry expansion and assets integration through the integration methods such as mergers and acquisitions as well as stock participation, will intensity the main business advantage through participate in the assets integration of domestic paper industry, thus to expand the competitive industries, to strengthen the potential industries, to moderately participate in the new industries and to comprehensively enhance the competitiveness of each industry.
3. To grasp the opportunities of the innovation development of the capital market, to study and explore how to make use of the multiple-level capital market to inject new energy of the development and expansion of the Company and the owned enterprises, for example, to make use of the bond market, inter-bank market to issue bonds for locking the financing cost, to make use of the three board and local shares transfer system to execute mergers and acquisitions, assets integration and market value management as well as to make use of the instruments such as asset securitization to execute financing and capital operation.
(III) Promoting the significant projects constructions and seeking the constantly development
1. Make great efforts to expand the project planning and preparation job of 0.25 million tons ivory board production line (BM4), which was under the planing phase at the moment.
2. Preparing to build distribution base of package printing and products post processing. The Company had started to develop the paper products post processing and deep-processing of the papermaking industry, and now the Company plans to combine the processing and package printing business, to collect ivory board deep-processing, package printing, products transfer, and distribution as well as mating warehouse logistics as an organic whole, which made the Company form the integrative products characteristic of “paper packaging materials manufacture” that led the products chain more complete and to innovate new core value. The project was under the planing phase.
(IV) Strongly promoting the lean management and sharply reducing the unconscious waste
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. (V) Intensifying the technologyR&D and promoting the products innovation and reducing the cost
(VI) Promoting the new projects to realize the benefits as quick as possible throug expanding the new market
IV. Main risks factors and countermeasures
1. Market risks
Policies such as “eight regulations” influence the high-end packaging and cigarette industry and cigarette market may cause an inflection point. And recently two years, the newly increased capacity continued to make concentrated release of each domestic ivory board, which brought the unprecedented competition stress for the industry market. As for the countermeasures: to adjust the products structures and expand the development power of the business.
2. Price fluctuation of raw materials
Changes of the international pulp price were rather large which incurred the cost risks. As for the countermeasures: to keep an eye on the change tendency of the price, the exchange rate tendency of CNY as well as the foreign currency index changes. The Company insists on large quantities of purchase.
3. Risks of the inefficient or invalid inventory occupying the current capital and the payment collecting
As for the countermeasures: to continue to strictly control the enterprises newly-increased inefficient or invalid inventories and to strengthen the inefficient and invalid inventories clearance. To make great efforts to management and control the enterprises finance risks, with the join forces of finance, purchase and sales departments etc. to strictly control the bad debts risks of the accounts receivables and prepayments.
4. Constantly raised risks of the environmental protection policies and environmental protection cost
As for the countermeasures: to urge each enterprise to execute each environmental protection and safety products requirements, to take preventive measures of uttermost, to lighten the environmental protection policies risks and to ensure the safety production to avoid the losses of people property.
5. Law risks
As for the countermeasures: to strengthen the prevention of the law risks and to effectively maintain the legal interests of the Company. Especially to intensify the case lawsuits through in time and effective disposal such as the enterprise economic disputes and labor disputes, to strengthen the analysis on the loopholes which reflect the internal management system and to adopt corresponding measures to execution perfection and prevention.
6. Human resource risks
Human resources cost raised with the employees stability declined. As the promotion of the collective contracts and the negotiation salary system, the labor costs of the enterprises improved sharply and with the right-protection awareness of the employees obviously strengthened, the labor risks of the enterprises constantly increased.
X. Explanation by the Board of Directors and the Supervisory Committee about the “non-standard audit report” issued by the CPAs firm for the reporting period
□ Applicable√ Inapplicable
XI. Explanation of the changes of the accounting policy, the accounting estimates and the accounting methods compared to the last financial report
√ Applicable□ Inapplicable
(I) Reasons of the changes of the accounting policies
Since 26 Jan. 2016, Ministry of Finance revised the No. 2 of ASBE-Long-term Equity Investment, No. 9 of ASBE-Employee Compensation, No. 30 of ASBE-Presentation of Financial Report, No. 33 of ASBE-Combination of Financial Report and No. 37 of
ASBE-Presentation of Financial Instruments and issued the specific regulations such as No. 39 of ASBE-Fair Value Measurement,
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. No. 40 of ASBE-Joint Venture Arrangement, No. 41 of ASBE-Disclosure of the Equities of Other Entities, and were all be carried out within all the enterprises that executed the ASBE since 1 Jul. 2014.
On 23 Jul. 2014, Ministry of Finance issued the Decision on Ministry of Finance Revising the ASBE-Basic Standards, which required all the enterprises that executed the ASBE to carry out since the date published.
According to the above regulations, the Company began to execute the above ASBE regulations from the starting date.
(II) The changed date of the accounting policies: 1 Jul. 2014 and 23 Jul. 2014.
(III) Accounting polices adopted before the changes
The ASBE-Basic Standards and the No. 38 regulation of the specific accounting standards, application guide of accounting standards, interpretations of ASBE and other relevant regulations issued by China Ministry of Finance on 15 Feb. 2006.
(IV) Accounting polices adopted after the changes
After the changes, the Company according to the regulations of Ministry of Finance to execute the specific regulations of the above eight new ASBE and the ASBE-Basic Standards revised on 23 Jul. 2014 since 1 Jul. 2014.
For the details, please refer to the announcement with the announcement number of 2014-048 that disclosed on 6 Dec. 2014 by the Company.
XII. Explanation of the significant accounting correction of errors that needed to make retroactive statement during the reporting period
□ Applicable√ Inapplicable
There was no such situation.
XIII. Explanation of the changes of the consolidated statement scale compared to the last financial report
√ Applicable□ Inapplicable
Because the subsidiary Foshan Chengtong Paper Co., Ltd. was in the phase of closing and liquidation, the Company executed the liquidation procedures of its wholly-owned subsidiary (sub-subsidiary of the Company) Foshan Huazhi Waste Paper Recycling Co., Ltd. and had disclosed the industry and commerce cancellation notice on Guangzhou Daily on 17 Nov. 2014.
XIV. Profit allocation and dividend payout
Formulation, execution or adjustment of theCompany’s profit allocation policy, especially the cash dividend policy, during the reporting period:
√ Applicable□ Inapplicable
During the reporting period, the Companydidn’t execute the adjustment and changes on the original dividend policies but executed according to the dividend policies.
|||
|-|-|
|Special statement about the cash dividend policy||
|In compliance with the Company’s Articles of Association and||
||Yes|
|the resolution of the general meeting||
|Specific and clear dividend standard and ratio|Yes|
|Complete decision-making procedure and mechanism|Yes|
|Independent directors fulfilled their responsibilities and played|Yes|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
|their due role.||
|Minority shareholders have the chance to fully express their||
|opinion and desire and their legal rights and interests were fully|Yes|
|protected.||
|In adjustment or alteration of the cash dividend policy, the||
|conditions and procedure were in compliance with regulations|Inapplicable|
|and transparent.||

TheCompany’s preplans or plans for profit allocation and turning capital reserve into share capital for the recent three years (including the reporting year):
Profit distribution plan for 2012: based on the total shares of the Company as at 31 Dec. 2012, a dividend of RMB 1.00 (tax included) was distributed for every 10 shares held by all shareholders. The dividend plan had completed execution.
Profit distribution plan for 2013: the Company neither executed the profits distribution nor turned capital reserve into share capital. Profit distribution preplan for 2014: the distribution preplan had been approved by the 2nd Session of the 6th Board of Directors of 2015 and based on the total shares of the Company as at 31 Dec. 2014, a dividend of RMB 0.15 (tax included) was distributed for every 10 shares held by all shareholders.
Cash dividend distribution of the Company over the recent three years:
Unit: Yuan
|||||||
|-|-|-|-|-|-|
||||The ratio accounting|||
|||Net profit belonging|||The proportion|
||||in net profit which|The amount offered||
|||to shareholders of|||offered and|
||Amount of cash||belongs to|and re-purchased the||
|||the listed company|||re-purchased the|
|Dividend year|dividend (including||shareholders of the|shares by cash that||
|||in consolidated|||shares by cash that|
||tax)||listed company in|included in the cash||
|||statement of|||included in the cash|
||||consolidated|bonus||
|||dividend year|||bonus|
||||statement|||
|2014|7,581,375.00|83,284,859.23|9.10%|0.00|0.00%|
|2013|0.00|79,060,852.74|0.00%|0.00|0.00%|
|2012|50,542,500.00|268,480,430.68|18.83%|0.00|0.00%|

 The Company (including its subsidiaries) made profit in the reporting period and the retained profit of the Company (without subsidiaries) was positive, but it did not put forward a preplan for cash dividend distribution:
□ Applicable√ Inapplicable
XV. Pre-plan for profit allocation and turning capital reserve into share capital for the reporting period
√ Applicable□ Inapplicable
|||
|-|-|
|Bonus shares for every 10 shares (share)|0|
|Dividend for every 10 shares (RMB Yuan) (tax||
||0.15|
|included)||
|Turning capital reserve into share capital for every||
||0|
|10 shares (share)||
|Total shares as the basis for the allocation preplan|505,425,000|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
|(share)||
|Total cash dividends (RMB Yuan) (tax included)|7,581,375.00|
|Distributable profit (RMB Yuan)|7,581,375.00|
|Percentage of the cash bonus of the total profits||
||100.00%|
|dividends||
|Cash dividend policy:||
|If there was cash dividend difficult to distinguish but with significant assets expenses arrangement, when making the profits||
|distribution, the minimum proportion of cash bonus of the profits distribution should reach 20%.||
|Details about the profit allocation or turning capital reserve into share capital||
|Based on the total shares of the Company as at 31 Dec. 2014, a dividend of RMB 0.15 (tax included) was distributed for every 10||
|shares held by all shareholders.||

XVI. Social responsibilities
□ Applicable√ Inapplicable
XVII. Particulars about researches, visits and interviews received in this reporting period√ Applicable□ Inapplicable
|||||||
|-|-|-|-|-|-|
||||||Main discussion and|
|Time of reception|Place of reception|Way of reception|Visitor type|Visitor|materials provided by the|
||||||Company|
||||||Consulted the relevant|
||||||situation of the production|
|||Telephone||||
|25 Feb. 2014|||Individual|Individual investor|halts and the removing|
|||communication||||
||||||planning of Foshan|
||||||Chengtong.|
|||Telephone|||Consulted the business|
|1 Apr. 2014|||Individual|Ms. Yuan||
|||communication|||structure of the Company|
||||||1. The operation of the|
|||Telephone||||
|9 Apr. 2014|||Individual|Mr. Li|Company; 2. Why the|
|||communication||||
||||||shares eased.|
||||||1. The operation of the|
|||Telephone|||Company; 2. Whether the|
|31 Jul. 2014|||Individual|Individual investor||
|||communication|||Company had new profits|
||||||growth point|
||||||1. The operation of the|
|||Telephone|||Company; 2. Whether the|
|31 Jul. 2014|||Individual|Individual investor||
|||communication|||Company had new profits|
||||||growth point|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
||||||1. Consulted the relevant|
||||||situation of the land|
||||||purchasing and storage|
||Telephone|||||
|19 Aug. 2014|||Individual|Individual investor|progress; 2. Put forward the|
||communication|||||
||||||advices on solving the|
||||||historical problems of the B|
||||||shares|
||||||Put forward the advices on|
||Telephone|||||
|8 Oct. 2014|||Individual|Individual investor|solving the historical|
||communication|||||
||||||problems of the B shares|
||||||1. Consulted the relevant|
||||||situation of the land|
||Telephone|||Chen Xuming/He|purchasing and storage|
|28 Oct. 2014|||Individual|||
||communication|||Hong|progress; 2. Consulted the|
||||||assets disposal situation of|
||||||Foshan Chengtong|
||||||The old shareholders who|
||||||voted the negative votes|
||Telephone|||||
|25 Dec. 2014|||Individual|Liu Bin|suggested that to promote|
||communication|||||
||||||the shares reform without|
||||||always stay in B shares|
||||||Consulted the events about|
||Telephone|||||
|26 Dec. 2014|||Individual|Zhang Weiguang|the dividend system and the|
||communication|||||
||||||shares reform|
|Reception times||10||||
|Number of reception institutions||0||||
|Number of reception person||10||||
|Number of receipting other targets||0||||
|Whether disclose, reveal or let out unpublished||||||
|||N/A||||
|significant information||||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Section V. Significant Events
I. Significant lawsuit or arbitration
□ Applicable√ Inapplicable
There was no such situation.
II.Media’s questions
□ Applicable√ Inapplicable
There was no such situation.
III. Occupation of theCompany’s capital by the controlling shareholder and its related parties for non-operating purposes
□ Applicable√ Inapplicable
There was no such situation.
VI. Bankruptcy& restructuring
□ Applicable√ Inapplicable
There was no such situation.
V. Asset transactions
1. Acquisition of assets
√ Applicable□ Inapplicable
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||Ratio of||Relationsh|||
|||||||the net||ip between|||
|||||Influence|Influence|profit||the|||
|Transactio|Asset|Transactio|||||Related-pa||||
|||||on the|on the|contribute||transaction|Disclosure||
|n party or|acquired|n price|Progress||||rty|||Disclosure|
|||||Company’|Company’|d by the||party and|date (note||
|ultimate|or bought|(RMB Ten|(note 2)||||transaction|||index|
|||||s operation|s gain/loss|asset to the||the|5)||
|controller|in|thousand)|||||or not||||
|||||(note 3)|(note 4)|Company||Company|||
|||||||to the total||(applicable|||
|||||||profit||for|||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||related-par|||
|||||||||ty|||
|||||||||transaction|||
|||||||||s)|||
|||||||||||Announce|
|||||||||||ment with|
||||The||The||||||
|||||||||||the|
||||property||investment||||||
|China||||||||||number of|
||||rights|Increased|profits||||||
|National|20%|||||||||2014-032|
||||involved|the|contribute||||||
|Paper-indu|equities of|||||||||and|
||||had all|investment|d of the|||Actual|||
|stry|Chengtong|23,145.02||||8.49%|Yes||4 Jul. 2014|disclosed|
||||completed|profits of|reporting|||controller|||
|Investment|Finance|||||||||on 13 Dec.|
||||the|the|period was||||||
|Corporatio|Co., Ltd.|||||||||2013 with|
||||ownership|Company|of RMB||||||
|n||||||||||the|
||||transforma||7.0684||||||
|||||||||||announce|
||||tion||million.||||||
|||||||||||ment No.|
|||||||||||2013-073.|

 2. Sale of assets
□ Applicable√ Inapplicable
There was no such situation.
3. Business combination
□ Applicable√ Inapplicable
There was no such situation.
VI. Implementation situation and influence of equity incentive plan of the Company
□ Applicable√ Inapplicable
There was no such situation.
VII. Significant related-party transactions
1. Related-party transactions relevant to routine operation
√ Applicable□ Inapplicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Type of|Content|Pricing|Transacti|Transacti|Proportio|Settlemen||||
|Related|Relations|the|of the|principle|on price|on|n in same|t method|Market|Disclosur|Index for|
|party|hip|related|related|of the|(RMB|amount|kind of|of the|price|e date|disclosure|
|||transactio|transactio|related|Ten|(RMB|transactio|related||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|||n|n|transactio|thousand)|Ten|ns|transactio|
|||||n||thousand)||n|
|||||Being|||||
|||||decided|||||
|Foshan|||||||||
||Under the|Routine||through|||||
|Huaxin|||Purchasin|||||Bank bills|
||same|related||negotiatio|Market||||
|Import &|||g paper|||10.82|0.07%|and|
||actual|transactio||n based|value||||
|Export|||products|||||transfer|
||controller|n||on the|||||
|Co., Ltd.|||||||||
|||||market|||||
|||||value|||||
|||||Being|||||
|||||decided|||||
|Foshan|||||||||
||Under the|Routine||through|||||
|Huaxin|||Purchasin|||||Bank bills|
||same|related||negotiatio|Market||||
|Import &|||g raw|||217.86|100.00%|and|
||actual|transactio||n based|value||||
|Export|||materials|||||transfer|
||controller|n||on the|||||
|Co., Ltd.|||||||||
|||||market|||||
|||||value|||||
|China||||Being|||||
|National||||decided|||||
|Paper-ind||Routine||through||||Bank bills|
||||Purchasin||||||
|ustry|Actual|related||negotiatio|Market|||and|
||||g wood|||13,434.63|7.52%||
|Investme|controller|transactio||n based|value|||telephone|
||||pulp||||||
|nt||n||on the||||transfer|
|Corporati||||market|||||
|on||||value|||||
|China||||Being|||||
|National||||decided|||||
|Paper-ind||Routine||through||||Bank bills|
|ustry|Actual|related|Purchasin|negotiatio|Market|||and|
|||||||1,157.63|14.61%||
|Investme|controller|transactio|g energy|n based|value|||telephone|
|nt||n||on the||||transfer|
|Corporati||||market|||||
|on||||value|||||
|||||Being|||||
|Guangdo||||decided|||||
|ng|Under the|Routine||through|||||
||||Purchasin|||||Bank bills|
|Chengton|same|related||negotiatio|Market||||
||||g logistics|||2,189.8|15.74%|and|
|g|actual|transactio||n based|value||||
||||service|||||transfer|
|Logistics|controller|n||on the|||||
|Co., Ltd.||||market|||||
|||||value|||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|China|||||||||
|Logistics|||||||||
|||||Being|||||
|Investme|||||||||
|||||decided|||||
|nt|||||||||
||Under the|Routine||through|||||
|Develop||||||||Bank bills|
||same|related|Purchasin|negotiatio|Market||||
|ment Co.,||||||6,620.18|3.55%|and|
||actual|transactio|g energy|n based|value||||
|Ltd. of||||||||transfer|
||controller|n||on the|||||
|Bonded|||||||||
|||||market|||||
|area of|||||||||
|||||value|||||
|Tianjin|||||||||
|Port|||||||||
|||||Being|||||
|||||decided|||||
|Guangdo|||||||||
||Under the|Routine||through|||||
|ng|||Purchasin|||||Bank bills|
||same|related||negotiatio|Market||||
|Guanhao|||g raw|||7.31|0.05%|and|
||actual|transactio||n based|value||||
|High-tech|||materials|||||transfer|
||controller|n||on the|||||
|Co., Ltd.|||||||||
|||||market|||||
|||||value|||||
|||||Being|||||
|Guangdo||||decided|||||
|ng|Under the|Routine||through|||||
||||Purchasin|||||Bank bills|
|Guanhao|same|related||negotiatio|Market||||
||||g raw|||41.46|0.28%|and|
|Gaoxin|actual|transactio||n based|value||||
||||materials|||||transfer|
|Industry|controller|n||on the|||||
|Co., Ltd.||||market|||||
|||||value|||||
|||||Being|||||
|||||decided|||||
||Under the|Routine||through|||||
|Yuanjiang|||Purchasin|||||Bank bills|
||same|related||negotiatio|Market||||
|Paper|||g raw|||163.69|0.09%|and|
||actual|transactio||n based|value||||
|Co., Ltd.|||materials|||||transfer|
||controller|n||on the|||||
|||||market|||||
|||||value|||||
|||||Being|||||
|||||decided|||||
|Hunan|||||||||
||Under the|Routine||through|||||
|Juntai|||Purchasin|||||Bank bills|
||same|related||negotiatio|Market||||
|Pulp|||g raw|||228.03|0.13%|and|
||actual|transactio||n based|value||||
|Paper|||materials|||||transfer|
||controller|n||on the|||||
|Co., Ltd.|||||||||
|||||market|||||
|||||value|||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Being|||||
|||||priced|||||
|Foshan||||through|||||
||Under the|Routine|||||||
|Huaxin||||negotiatio||||Bank bills|
||same|related|Selling||Market||||
|Import &||||n||80.4|66.74%|and|
||actual|transactio|presswork||value||||
|Export||||according||||transfer|
||controller|n|||||||
|Co., Ltd.||||to the|||||
|||||market|||||
|||||value|||||
|||||Being|||||
|||||priced|||||
|Foshan||||through|||||
||Under the|Routine|||||||
|Huaxin|||Selling|negotiatio||||Bank bills|
||same|related|||Market||||
|Import &|||ivory|n||9.9|0.00%|and|
||actual|transactio|||value||||
|Export|||board|according||||transfer|
||controller|n|||||||
|Co., Ltd.||||to the|||||
|||||market|||||
|||||value|||||
|||||Being|||||
|||||decided|||||
|Guangdo|||||||||
||Under the|Routine||through|||||
|ng|||Selling|||||Bank bills|
||same|related||negotiatio|Market||||
|Guanhao|||ivory|||75.42|0.03%|and|
||actual|transactio||n based|value||||
|High-tech|||board|||||transfer|
||controller|n||on the|||||
|Co., Ltd.|||||||||
|||||market|||||
|||||value|||||
|||||Being|||||
|||||decided|||||
|Yueyang|Under the|Routine||through|||||
|||||||||Bank bills|
|Forest &|same|related|Selling|negotiatio|Market||||
|||||||152.69|0.74%|and|
|Paper|actual|transactio|emulsion|n based|value||||
|||||||||transfer|
|Co., Ltd.|controller|n||on the|||||
|||||market|||||
|||||value|||||
|||||Being|||||
|||||decided|||||
|Dragon|||||||||
||Under the|Routine||through|||||
|State||||||||Bank bills|
||same|related|Selling|negotiatio|Market||||
|Investme||||||7,437.95|97.32%|and|
||actual|transactio|materials|n based|value||||
|nt Co.,||||||||transfer|
||controller|n||on the|||||
|Ltd.|||||||||
|||||market|||||
|||||value|||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Being||||||||
|Guangdo||||decided||||||||
|ng|Under the|Routine|Renting|through||||||||
|||||||||Bank bills||||
|Chengton|same|related|out|negotiatio|Market|||||||
|||||||125.69|66.40%|and||||
|g|actual|transactio|constructi|n based|value|||||||
|||||||||transfer||||
|Logistics|controller|n|on|on the||||||||
|Co., Ltd.||||market||||||||
|||||value||||||||
|||||Being||||||||
|||||decided||||||||
|Foshan||||||||||||
|||Routine|Accepting|through||||||||
|Huaxin||||||||||||
|||related|lease of|negotiatio|Market|||||||
|Import &|Controller|||||56.94|63.89%|Transfer||||
|||transactio|constructi|n based|value|||||||
|Export||||||||||||
|||n|on|on the||||||||
|Co., Ltd.||||||||||||
|||||market||||||||
|||||value||||||||
|Total||||--|--|32010.4|--|--|--|--|--|
|Details of large amount of sales returns||||N/A||||||||
|||||In order to ensure the continuity and timeliness on fuel and raw materials supply for the||||||||
|||||controlling subsidiaries of the Company, improve the logistic efficiency, further||||||||
|||||decrease the purchase costs and enlarge the sales channel as well as expand the market||||||||
|Necessity and continuity of related||||coverage, the above related transactions are the continuous business relevant to routine||||||||
|transaction as well as reason of choosing||||operation, so it’s expected that such related transactions will still exist in a certain||||||||
|the related party (but not other transaction||||period. Generally speaking, the related transactions will give full play to the resources||||||||
|parties) to conduct the said transaction||||and advantages of the related parties, strengthen the advantage of centralized purchase,||||||||
|||||improve the efficiency of centralized purchase, decrease the purchasing and logistic||||||||
|||||costs, so as to realize the optimal allocation of resources and further maximize the||||||||
|||||economical benefits, therefore such transactions exist the trading necessity.||||||||
|||||The related transactions are necessary for the Company and its subsidiaries such as||||||||
|Impacts of related transaction on||||Huaxin Color Printing, Hongta Renheng, Zhuhai Huafeng, and Jinji Chemicals to||||||||
|independency of the Company||||conduct regular business, which are based on fair and mutual benefit, and will not harm||||||||
|||||to the interest of the Company or influence the independence of the listed corporations.||||||||
|||||The related transactions are necessary for the Company and its subsidiaries such as||||||||
|Dependant degree of the Company on||||||||||||
|||||Huaxin Color Printing, Hongta Renheng, Zhuhai Huafeng, and Jinji Chemicals to||||||||
|related party and relevant solutions for the||||||||||||
|||||conduct regular business, which are based on fair and mutual benefit, and will maintain||||||||
|dependence (if any)||||||||||||
|||||normal business contact with each party.||||||||
|As for the prediction on the total amount of||||||||||||
|routine related transactions to be occurred||||||||||||
|||||The above amount of related transactions was within the predicted total amount of||||||||
|in the reporting period by relevant types,||||||||||||
|||||routine related transaction.||||||||
|the actual performance in the reporting||||||||||||
|period (if any)||||||||||||
|Reasons for the big difference between||||N/A||||||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||
|-|
|transaction price and market reference|
|price (if applicable)|

2. Related-party transactions arising from acquisition and sale of assets
√ Applicable□ Inapplicable
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Book|Assessed|||||||
||||||value of|value of|Market||||||
|||||||||Transfer|||||
||||||the|the|fair|||Gain/loss|||
|||Type of|Contents|||||price|||||
|Related|||||transferr|transferr|value||Mode of|(RMB|||
|||the|of the|Pricing||||(RMB|||Disclosu|Disclosu|
|transacti|Relation||||ed asset|ed asset|(RMB||settleme|Ten|||
|||transacti|transacti|principle||||Ten|||re date|re index|
|on party|||||(RMB|(RMB|Ten||nt|thousand|||
|||on|on|||||thousand|||||
||||||Ten|Ten|thousand|||Yuan)|||
|||||||||Yuan)|||||
||||||thousand|thousand|Yuan)||||||
||||||Yuan)|Yuan)|||||||
|||||Price|||||||||
|China|||||||||||||
||||Purchase|evaluate||||||||Announc|
|National|||||||||||||
||||d the|d by the||||||||ement|
|Paper-in||Assets|||||||||||
||Actual||equity of|third||||||||No.:|
|dustry||purchase|||21,308.4|23,145.0||23,145.0|||13 Dec.||
||controlle||Chengto|party|||||Transfer|||2013-07|
|Investme||transacti|||8|2||2|||2013||
||r||ng|intermed||||||||3 and|
|nt||ons|||||||||||
||||Finance|iary||||||||2014-03|
|Corporat|||||||||||||
||||Co., Ltd.|institutio||||||||2.|
|ion|||||||||||||
|||||n|||||||||
|||||To expand the business scope of the Company that involves with the finance business that|||||||||
|Impacts on the company’s operating|||||||||||||
|||||enhances the flexibility of the financing and at the same time increase the profits resources|||||||||
|results and financial condition|||||||||||||
|||||of the Company.|||||||||

3. Related-party transitions with joint investments
□ Applicable√ Inapplicable
There was no such situation.
4. Significant credits and liabilities with related parties
√ Applicable□ Inapplicable
Was there any non-operating credit or liability with any related party?
√ Yes□ No
|||||||||
|-|-|-|-|-|-|-|-|
|Related party|Relationship|Type of|Cause|Whether|Opening|Incurred|Closing|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||||
|-|-|-|-|-|-|-|-|
|||credits and||existing|balance (RMB|amount (RMB|balance (RMB|
|||liabilities||occupation of|ten thousand|ten thousand|ten thousand|
|||||non-operating|Yuan)|Yuan)|Yuan)|
|||||funds||||
||||Being used to|||||
||||pay off bank|||||
|China Chengtong||Payable|loans of the|||||
||Ultimate|||||||
|Holding Group Co.,||liabilities of|Company and|No|41,875|0|41,875|
||controller|||||||
|Ltd.||related parties|to supplement|||||
||||circulating|||||
||||funds|||||

5. Other related party transactions
□ Applicable√ Inapplicable
There was no other related party transaction of the Company during the reporting period.
VIII. Particulars about significant contracts and their fulfillment
1. Trusteeship, contracting and leasing
(1) Trusteeship
□ Applicable√ Inapplicable
The Company did not make any entrustment in the reporting period.
(2) Contracting
□ Applicable√ Inapplicable
The Company was not involved in any contracting in the reporting period.
(3) Leasing
√ Applicable□ Inapplicable
Notes of leasing
The Company as the lessor:
||||
|-|-|-|
|Name of leasee|Category of leasing assets|Leasing revenue confirmed during the|
|||reporting period (Unit: RMB Yuan)|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Guangdong Chengtong Logistics Co., Ltd.|Building and construction|1,256,863.00|

 The Company as the leasee:
||||
|-|-|-|
|Name of lessor|Category of leasing assets|Leasing expenses confirmed during the|
|||reporting period (Unit: RMB Yuan)|
|Foshan Huaxin Development Co., Ltd.|Offices|569,400.00|
|Kunshan Linda Advertising Campaign|Plant and offices|321,756.04|
|Printing Co., Ltd.|||

Any leasing event incurring gain/loss reaching more than10% of the total profits of the Company in the reporting period
□ Applicable√ Inapplicable
No leasing event incurred gain/loss reaching more than10% of the total profits of the Company in the reporting period.
2. Guarantees provided by the Company
√ Applicable□ Inapplicable
Unit: RMB Ten Thousand Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|Guarantees provided by the Company for external parties (excluding those for subsidiaries)|||||||||
||Disclosure|||||||Guarante|
||||Actual||||||
||date of|||Actual||||e for a|
|||Amount for|occurrence date||Type of|Period of|Executed||
|Guaranteed party|relevant|||guarantee||||related|
|||guarantee|(date of||guarantee|guarantee|or not||
||announcem|||amount||||party or|
||||agreement)||||||
||ent|||||||not|
|Guarantees provided by the Company for its subsidiaries|||||||||
||Disclosure|||||||Guarante|
||||Actual||||||
||date of|||Actual||||e for a|
|||Amount for|occurrence date||Type of|Period of|Executed||
|Guaranteed party|relevant|||guarantee||||related|
|||guarantee|(date of||guarantee|guarantee|or not||
||announcem|||amount||||party or|
||||agreement)||||||
||ent|||||||not|
|Zhuhai S.E.Z.|||||||||
||28 Mar.||||Guarantee of|2012.03.27-2|||
|Hongta Renheng||5,000|27 Mar. 2012|0|||No|Yes|
||2012||||joint liability|015.03.27|||
|Paper Co., Ltd.|||||||||
|Zhuhai S.E.Z.|||||||||
||21 May||||Guarantee of|2014.05.07-2|||
|Hongta Renheng||33,000|7 May 2014|14,153.09|||No|Yes|
||2014||||joint liability|017.05.06|||
|Paper Co., Ltd.|||||||||
|Zhuhai S.E.Z.|||||||||
||20 Nov.||||Guarantee of|2012.10.17-2|||
|Hongta Renheng||15,000|17 Oct. 2012|8,246.38|||No|Yes|
||2012||||joint liability|014.12.31|||
|Paper Co., Ltd.|||||||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|Zhuhai S.E.Z.|||||||||
||10 Mar.||||Guarantee of|2013.12.24-2|||
|Hongta Renheng||10,000|15 Jan. 2014|2,896.13|||No|Yes|
||2014||||joint liability|014.12.24|||
|Paper Co., Ltd.|||||||||
|Zhuhai S.E.Z.|||||||||
||25 Apr.||||Guarantee of|2014.02.25-2|||
|Hongta Renheng||25,000|25 Feb. 2014|0|||No|Yes|
||2014||||joint liability|015.12.31|||
|Paper Co., Ltd.|||||||||
|Zhuhai S.E.Z.|||||||||
||||||Guarantee of|2014.7.15-20|||
|Hongta Renheng|14 Jul. 2014|20,000|15 Jul. 2014|14,884|||No|Yes|
||||||joint liability|15.07.15|||
|Paper Co., Ltd.|||||||||
|Zhuhai S.E.Z.|||||||||
||||||Guarantee of|2014.11.08-2|||
|Hongta Renheng|6 Dec. 2014|18,900|28 Nov. 2014|12,584.3|||No|Yes|
||||||joint liability|015.11.07|||
|Paper Co., Ltd.|||||||||
|Zhuhai Huafeng|13 Dec.||||Guarantee of|2013.10.29-2|||
|||35,000|16 Nov. 2013|22,911|||No|Yes|
|Paper Co., Ltd.|2013||||joint liability|016.10.28|||
|Huaxin (Foshan)|||||Guarantee of||||
||10 Mar.|||||2013.07.01-2|||
|Color Printing Co.,||6,500|12 Mar. 2014|1,229|joint liability||No|Yes|
||2014|||||017.12.31|||
|Ltd.|||||||||
|||||Total actual occurred amount|||||
|Total guarantee line approved for|||||||||
|||||of guarantee for the|||||
|the subsidiaries during the||250,000||||113,400|||
|||||subsidiaries during the|||||
|reporting period (B1)|||||||||
|||||reporting period (B2)|||||
|Total guarantee line that has been|||||||||
|||||Total actual guarantee balance|||||
|approved for the subsidiaries at|||||||||
|||168,400||for the subsidiaries at the end||76,903.9|||
|the end of the reporting period|||||||||
|||||of the reporting period (B4)|||||
|(B3)|||||||||
|Total guarantee amount provided by the Company (total of the above-mentioned two kinds of guarantees)|||||||||
|Total guarantee line approved||||Total actual occurred amount|||||
|during the reporting period||250,000||of guarantee during the||113,400|||
|(A1+B1)||||reporting period (A2+B2)|||||
|Total guarantee line that has been||||Total actual guarantee balance|||||
|approved at the end of the||168,400||at the end of the reporting||76,903.9|||
|reporting period (A3+B3)||||period (A4+B4)|||||
|Proportion of total guarantee amount (A4+B4) to the net assets|||||||||
|||||42.42%|||||
|of the Company|||||||||
|Of which:|||||||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
|Amount of debt guarantee provided for shareholders, actual|0|
|controller and the related-party (C)||
|Amount of debt guarantee provided for the guaranteed party||
||0|
|whose asset-liability ratio is not less than 70% directly or||
|indirectly (D)||
|Total guarantee amount exceeded 50% of the net assets (E)|0|
|Total amount of the above three guarantees (C+D+E)|0|
||All guarantees provided by the Company are for its controlled|
|Explanation on possibility to bear joint liability due to undue||
||subsidiaries. Currently, all the involved subsidiaries are in normal|
|guarantees (if any)||
||production and operation, without risk of insolvency.|
||N o provision of guarantees by the Company is in violation of the|
|Explanation on the external guarantees in violation of||
|stipulated procedures (if any)|prescribed procedure.|

Explanation on guarantee that adopts complex method
(1) Illegal provision of guarantees for external parties
□ Applicable√ Inapplicable
The Company did not illegally provide any guarantee for any external party in the reporting period.
3. Other significant contracts
□ Applicable√ Inapplicable
There was no other significant contract of the Company in the reporting period.
4. Other significant transactions
□ Applicable√ Inapplicable
There was no significant transaction in reporting period.
IX. Performance of commitments
1. Commitments made by the Company or shareholders holding over5% of theCompany’s shares in the reporting period or such commitments carried down into the reporting period
√Applicable□Inapplicable
|||||||
|-|-|-|-|-|-|
|||Commitment|Time of|Term of||
|Commitment items|Promiser||||Execution|
|||contents|commitment|commitment||
|Commitments of share reform||||||
|||China supplies||||
||China Paper|||||
|Commitments made in acquisition report||development|||Normal|
||Industry||28 Jun. 2005|Long-term||
|or in report on changes of equity||investment|||performance|
||Investment|||||
|||corporation (has||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
|Corporation|changed its|
||name to “China|
||National|
||Paper-Industry|
||Investment|
||Corp. "）in order|
||to avoid|
||potential future|
||competition,|
||CNPIC made|
||the following|
||commitment:|
||1. The Company|
||and the|
||Company’s|
||wholly owned|
||and controlling|
||companies|
||ensured that|
||there is no same|
||or similar|
||business with|
||Foshan Huaxin|
||Packaging Co.,|
||Ltd. 2. The|
||Company and|
||the Company’s|
||wholly owned|
||and controlling|
||companies|
||ensured that|
||there is no same|
||or similar|
||business with|
||Foshan Huaxin|
||Packaging Co.,|
||Ltd.; The|
||Company and|
||the Company’s|
||wholly owned|
||and controlling|
||companies will|
||not self-run no|
||same or similar|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||business with||||
|||Foshan Huaxin||||
|||Packaging Co.,||||
|||Ltd.; not self-||||
|||run any similar||||
|||projects||||
|||constitute a||||
|||direct||||
|||competition||||
|||with Foshan||||
|||Huaxin||||
|||Packaging Co.,||||
|||Ltd.; nor any||||
|||method of||||
|||investment||||
|||business||||
|||constituted or||||
|||may constituted||||
|||competition||||
|||with Foshan||||
|||Huaxin||||
|||Packaging Co.,||||
|||Ltd. thus ensure||||
|||to avoid any||||
|||direct or indirect||||
|||business||||
|||competition to||||
|||the production||||
|||and operation of||||
|||Foshan Huaxin||||
|||Packaging Co.,||||
|||Ltd..||||
|||The Company||||
|||and relevant||||
|||information||||
|||disclosure||||
|||obligor|||The|
||Foshan Huaxin|||||
|Commitments made at the time of assets||committed that|||commitment|
||Packaging Co.,||19 Oct. 2013|2014-04-19||
|reorganization||within 6 months|||has been|
||Ltd|||||
|||from the date of|||fulfilled|
|||announcement,||||
|||there is no||||
|||longer planning||||
|||a major asset||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
||reorganization||||
||events.||||
||For defective||||
||real estate||||
||failing to obtain||||
||the drawbacks||||
||of the ownership||||
||certificate,||||
||Hongta Group||||
||Co., Ltd., and||||
||Yanlord||||
||Industries Pte.||||
||Ltd. committed||||
||that: if a third||||
||party claim,||||
||such as right,||||
||housing||||
||demolition any||||
||lead to Hongta||||
|Yanlord|Group Co., Ltd.,||||
|Industries Pte.|can not normally||||
|||||Long-term|
|Ltd.; Yunnan|possess, utilize,||||
|||||commitment|
|Hongta Group|profit from and||||
|||19 Oct. 2012|Long-term|belonging to|
|Co., Ltd.,( not|dispose of||||
|||||need trigger|
|the shareholders|defective (real||||
|||||conditions|
|of the|estate), Hongta||||
|Company)|Group Co., Ltd.,||||
||and Yanlord||||
||Industries Pte.||||
||Ltd. agreed to||||
||pay the||||
||compensation of||||
||suffered losses||||
||of Foshan||||
||Huaxin||||
||Packaging Co.,||||
||Ltd and Long||||
||Bon||||
||International||||
||Co., Ltd. swith||||
||30 days from||||
||receiving notice||||
||of Foshan||||
||Huaxin||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||Packaging Co.,||||
|||Ltd and Long||||
|||Bon||||
|||International||||
|||Co., Ltd. , the||||
|||value of defect||||
|||real estate was||||
|||comprehensive||||
|||determined||||
|||according to the||||
|||Rights and||||
|||Interests of All||||
|||Shareholders||||
|||Value Assets||||
|||Evaluation||||
|||Report of||||
|||Zhuhai Special||||
|||Economic Zone||||
|||Hongta Group||||
|||Co., Ltd., issued||||
|||by Zhongshang||||
|||Assets Appraisal||||
|||Co., Ltd. on 7||||
|||Nov. 2008||||
|||and used years||||
|||and depreciation||||
|||of real estate||||
|||Compensation||||
|||does not exceed||||
|||the total||||
|||assessment net||||
|||value of the||||
|||defective real||||
|||estate of RMB||||
|||10,746,298.00.||||
|||Foshan Huaxin||||
|||Development||||
|||Co., Ltd. as the||||
||Foshan Huaxin|controlling||||
|Commitments made in the initial public|||||Normal|
||Development|shareholder of|23 Jun. 1999|Long-term||
|offering or refinancing|||||performance|
||Co., Ltd.|Foshan Huaxin||||
|||Packaging Co.,||||
|||Ltd. (here in||||
|||after referred||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||to as "YHB"||||
|||committed that||||
|||Will not in any||||
|||place within or||||
|||outside of||||
|||Guangdong||||
|||province in any||||
|||way (including,||||
|||but not limited||||
|||to, with||||
|||individual||||
|||proprietorship,||||
|||joint venture or||||
|||through another||||
|||company hold||||
|||the share or own||||
|||equities to||||
|||participate in||||
|||similar business||||
|||activities may||||
|||directly form||||
|||competition||||
|||with YHB at||||
|||that time.||||
|||Excepting as the||||
|||subsequent||||
|||restructuring,||||
|||transfer, newly||||
|||issuance, etc.,||||
|||Foshan Huaxin||||
|||Development||||
|||Co., Ltd. no||||
|||long effectively||||
|||control YHB.||||
|||The Company||||
|||future the next||||
|||three years||||
|||(2012-2012) the||||
||Foshan Huaxin|||||
|Commitments made by the company to||specific returns|||Normal|
||Packaging Co.,||18 Jul. 2012|2015-08-31||
|other medium and small shareholders||planning of|||performance|
||Ltd|||||
|||shareholder: 1,||||
|||the company can||||
|||take the ways of||||
|||cash, shares or||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||
|-|
|cash combined|
|to allocate|
|dividends, can|
|undertake|
|metaphase cash|
|dividends. 1, the|
|Company can|
|take cash, shares|
|or combination|
|o f cash and|
|share, with stock|
|allocation of|
|dividends, can|
|undertake|
|metaphase cash|
|dividends. 2.|
|The next three|
|years, the|
|Company will|
|actively take|
|cash distribution|
|of profits. In|
|accord with|
|relevant laws,|
|regulations|
|and provisions|
|of the Articles of|
|Corporation and|
|the system and|
|conditions and|
|the profit in the|
|Company meet|
|the capital|
|demand of|
|normal|
|production and|
|business|
|operation and|
|fully reserved|
|legal|
|accumulation|
|fund and surplus|
|accumulation,|
|under such|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|||condition, if|
|||there is no major|
|||investment plan|
|||or major cash|
|||payments, etc,|
|||the next three|
|||years|
|||cumulative|
|||distribution of|
|||profits in cash|
|||will be not less|
|||than thirty|
|||percent of the|
|||average annual|
|||distributable|
|||profits realized|
|||in recent three|
|||years. 3,|
|||According to the|
|||actual situation|
|||of the Company|
|||and long-term|
|||sustainable|
|||development,|
|||the Board of|
|||Directors|
|||thought that|
|||when the profit|
|||allocation by|
|||stock dividend|
|||meets all the|
|||overall interests|
|||of shareholders,|
|||the Company|
|||can conduct|
|||stock dividend|
|||to distribute|
|||profit.|
|Executed timely or not?|Yes||

2. TheCompany’s assets or projects exist profitable prediction and the report period is in such prediction
period, it states the profits from the assets or projects reaching original prediction and relevant reasons
□Applicable√Inapplicable
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. X. Particulars about engagement and disengagement of CPAs firm
Certified Public Accountants in employment
|||
|-|-|
|Name of domestic accounting firm|Shu Lun Pan CPA Co., Ltd. (LLP)|
|Payment for domestic accounting firm(RMB Ten||
||150|
|Thousand Yuan)||
|Number of successive years of audit service||
||5|
|provided by domestic accounting firm||
|Name of certified public accounts in domestic||
||Du Xiaoqiang, Jiang Gan|
|accounting firm||

Whether employing another accounting firm instead during the reporting period
□ Yes√ No
Particulars about financial consultancy or sponsor when employing accounting firm of internal control audit
√ Applicable□ Non-applicable
In the reporting period, the Company employed Shu Lun Pan CPA Co., Ltd. (LLP) as the audit institution of internal control and paid RMB 350,000 for the expenses of internal control audit and RMB 1,150,000 of annual report audit.
XI. Explanation of the Supervisory Committee and Independent Directors (if applicable) on the “Non-standard Audit Report” issued by the CPAs firm during the reporting period□Applicable√Inapplicable
XII. Punishment and rectification
□Applicable√Inapplicable
XIII. Particulars about trading suspension and termination faced after the disclosure of annual report
□ Applicable√ Inapplicable
XIV. Explanation on other significant events
√Applicable□ Inapplicable
1．The Company held the 4th Meeting of the Sixth Session of the Board of Directors on 22 Oct. 2014 and held the Second Special Meeting of the General Shareholds on 10 Nov. 2014, the meeting reviewed and approved the Proposal of the Issue of Medium-Term Notes. According to the need of the financial situation and production operation, the Company planed to apply to the Bank of China Dealers Association for no more than RMB five hundred million of the medium-term notes, all the raise capital will be used to supplement cash flow and working capital of the company. In the end of reporting period, the medium-term notes were not officially released.
2. The Company held the 4th Meeting of the Sixth Session of the Board of Directors on 22 Oct. 2014, the meeting reviewed and
approved the Proposal of Closing and Liquidating Foshan Chengtong Paper Co., Ltd., determined to close Foshan Chengtong Paper
Co., Ltd., and make liquidation to it. On 18 Feb. 2014, Letter of about Cooperating with Foshan Chancheng District North Area
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Planning the Implementation of Upgrade of Foshan City People's Government Office (FFBH No.[2014]91), Foshan Chengtong Paper Co., Ltd. was located on urban area of Foshan, and the implementation and upgrade of central axis of urban planning of Foshan, its location was included in the upgrade scope of “Northern Portal Section”, Foshan Chengtong Paper Co.,Ltd.‘s industry type did not conform to the requirements of city planning of Foshan , in Feb. 2014, in response to the localgovernment’s requirements, conducted staff resettlement , then entered long shutdown state.
XV. Significant events of the subsidiaries of the Company
√Applicable□ Inapplicable
On 18 Feb. 2014, theCompany’s subsidiary Foshan Chengtong Paper Co.,Ltd.‘s had received Letter of about Cooperating with Foshan Chancheng District North Area Planning the Implementation of Upgrade of Foshan City People's Government Office (FFBH No.[2014]91), theCompany’s production site was included in the upgrade scope of “Northern Portal Section”, so far, the industry type did not conform to the requirements of city planning of Foshan, the Company was required to carry out the relocation plan as soon as possible, the Company and the 5th session of the Board of Directors held the 1st meeting on 7 Mar. 2014, the meeting decided to close Foshan Chengtong Paper Co., Ltd.. On 22 Oct. 2014, the Company held the 4th meeting of the 6th session of the Board of Directors, the meeting decided to liquidate Foshan Chengtong Paper Co., Ltd..
XVI. Information about issuing bonds of the Company
On 31 May 2012, the Company received the Reply of CSRC on Approving Public Offering of Corporate Bonds of Foshan Huaxin Packaging Co., Ltd. (Zheng-Jian-Xu-Ke[2012] No. 725), which approved it to public offer the corporate bonds with par value no more than RMB 800 million. The Board of Directors, in accordance with the requirements of relevant laws, rules and the approval document as well as the authorization of theShareholders’ General Meeting of the Company, employed Guangzhou Securities Co., Ltd. as the issuer and major underwriter of this-time bonds. On 22 Nov. 2012, “Announcement on Issuing Company Bonds in 2012” (No. 2012-037) was released; “Prospectus on the Public Issuance of Company Bonds” and its abstract, “Analysis Report on Credit Rating of Company Bonds for 2012” were disclosed. On 26 Nov.2012, “Announcement on Coupon Rate of Bonds of Huaxin (Foshan) Packaging Co., Ltd. in 2012”(No. 2012-038) was issued and the bonds were publicly issued for the public on the website. From 26 Nov. 2012 to 28 Nov. 2012, the bonds were issued for institutional investors by other means. On 28 Nov. 2012, the issuance work was completed. The actual amount of online issuance reached RMB 70.065 million which occupied8.76% of the total amount of issued bonds of this period and the amount of offline issuance reached RMB 729.935 million which occupied91.24% of the total amount of issued bonds of this period and the actual total raised amount was RMB 791.7 million. On 8 Jan. 2013, the Company issued “Announcement on Listing Company Bonds for 2012” (No.2013-002) and disclosed the relevant information: listing date is 9 Jan. 2013, listing place: Shenzhen Stock Exchange, abbreviation of bonds is 12HBZ, and stock code is 112130).
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Section VI. Changes in Share Capital and Particulars about the Shareholders
I. Changes in share capital
Unit: Share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the change||Increase/decrease in the change (+,-)|||||After the change||
||||||Shares|||||
||||Issuance||transferred|||||
|||Proportion||Bonus|||||Proportion|
||Number||of new||from|Other|Subtotal|Number||
|||(%)||shares|||||(%)|
||||shares||capital|||||
||||||reserves|||||
||333,500,0|||||||333,500,0||
|I. Unlisted shares||65.98%|||||||65.98%|
||00|||||||00||
||333,500,0|||||||333,500,0||
|1. Sponsor’s shares||65.98%|||||||65.98%|
||00|||||||00||
|Shares held by domestic|332,930,2|||||||332,930,2||
|||65.87%|||||||65.87%|
|corporations|90|||||||90||
|Other|569,7101|0.11%||||||569,710|0.11%|
||171,925,0|||||||171,925,0||
|II. Listed shares||34.02%|||||||34.02%|
||00|||||||00||
|2. Domestically listed|171,925,0|||||||171,925,0||
|||34.02%|||||||34.02%|
|foreign shares|00|||||||00||
||505,425,0|||||||505,425,0||
|III. Total shares||100.00%|||||||100.00%|
||00|||||||00||

Note: 1. Due to 569,710 held bySponsor’s shares was held by domestic individual, thus put it from the category" Shares held by domestic corporations " to "other" column.
Reasons for changes in share capita
□ Applicable√ Non-applicable
Information about approval of changes in share capital
□ Applicable√ Non-applicable
Information about the transfer of ownership of changed share
□ Applicable√ Non-applicable
Influence of changes in shares on financial indicators of the recent year or the recent term including basic EPS, diluted EPS, net asset
value per share belonging to common stock holders of the Company, etc.
□ Applicable√ Non-applicable
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Other contents that the Company thinks it is necessary to disclose or that securities regulatory institutions demand to disclose□ Applicable√ Non-applicable
2. Changes in restricted shares
□Applicable√Inapplicable
II. Issuance and listing of securities
1. Particulars about issuance of securities over the past three years till the end of the reporting period
√ Applicable□ Non-applicable
||||||||
|-|-|-|-|-|-|-|
|Name of stock|||||||
||||||Amount of shares||
|and the||Issue price (or||||Ending date of|
||Issue date||Issue amount|Listing date|authorized for||
|derivative||ratio)||||exchange|
||||||listed exchange||
|securities|||||||
|Stocks|||||||
|Convertible corporate bonds, separable-traded convertible bonds, corporate bonds|||||||
|2012 corporate|||||||
|bonds of Foshan|||||||
|Huaxin|||||||
||26 Nov. 2012|100|80,000|9 Jan. 2013|80,000|25 Nov. 2017|
|Packaging Co.,|||||||
|Ltd.|||||||
|Warrants|||||||

Explanations about issuance of securities over the past three years
See XVI“XVI. Particulars about issuing corporate bonds by the Company”, Section V. Significant Events of the report.
2. Explanation on changes in share capital& the structure of shareholders, the structure of assets and liabilities
□ Applicable√ Inapplicable
3. Particulars about staff shares
□ Applicable√ Inapplicable
III. Particulars about the shareholders and actual controller
1. Total number of shareholders and their shareholding
Unit: share
||||||
|-|-|-|-|-|
|Total number of||Total number of|Total number of||
||14,874|||0|
|shareholders during||shareholders on the|preferred stockholder||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|the reporting period|||fifth trading day|||||with vote right|||
||||before the disclosure|||||restored( if any)|||
||||date of the annual|||||( note 8 )|||
||||report||||||||
|Shareholding of shareholders holding more than 5% shares|||||||||||
|||||Number|Increase|Number|||Pledged or frozen shares||
||||||||Number of||||
|||||of|and|of shares|||||
||||||||shares held||||
|||Holding||shareholdi|decrease|held|||||
|Name of|Nature of||||||not subject||||
|||percentage||ng at the|of shares|subject to|||||
|shareholder|shareholder||||||to trading||Status of shares|Number of shares|
|||(%)||end of the|during|trading|||||
||||||||moratoriu||||
|||||reporting|reporting|moratoriu|||||
||||||||m||||
|||||period|period|m|||||
|Foshan HuaxinDevelopmentCo., Ltd.|State-ownedcorporation|65.20%||329,512,030|0|329,512,030|0||||
|Wu Haoyuan|Foreign naturalperson|0.51%||2,561,991|0|0|2,561,991||||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|Foreigncorporation|0.42%||2,113,219|282,495|0|2,113,219||||
|ZhanChangcheng|Domestic naturalperson|0.32%||1,629,000|29,000|0|1,629,000||||
|Wu Fenqiang|Domestic naturalperson|0.25%||1,249,288|-80,712|0|1,249,288||||
|Foshan ChanBen DeDevelopmentCo., Ltd.|State-ownedcorporation|0.23%||1,139,420|0|1,139,420|0||||
|Zhang Meilan|Domestic naturalperson|0.20%||988,901|988,901|0|988,901||||
|Zhu Shijie|Domestic naturalperson|0.20%||987,472|0|0|987,472||||
|Chen Cirou|Domestic naturalperson|0.19%||969,409|6,300|0|969,409||||
|Ma Zeqi|Domestic naturalperson|0.19%||959,762|0|0|959,762||||
|Particulars about strategic investors|||||||||||
|||No|||||||||
|or common legal persons who|||||||||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|became the top ten shareholders||||
|because of the issuance of||||
|additional shares (if any) (note3)||||
||It is unknown whether the tradable share holders above are related parties or whether they are|||
|Explanations about associated||||
||parties acting in concert as stipulated in the Administrative Methods for Information|||
|relationship or concerted action||||
|among the above shareholders||||
||Disclosure Regarding Shareholding Changes of Listed Companies.|||
|Shareholdings of the top ten shareholders not subject to trading moratorium||||
||Amount of listed and circulated shares at the end of the|Type of shares||
|Name of shareholders||||
||year|Type|Amount|
|Wu Haoyuan|2,561,991|Domestically||
|||listed foreign|2,561,991|
|||shares||
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|2,113,219|Domestically||
|||listed foreign|2,113,219|
|||shares||
|Zhan Changcheng|1,629,000|Domestically||
|||listed foreign|1,629,000|
|||shares||
|Wu Fenqiang|1,249,288|Domestically||
|||listed foreign|1,249,288|
|||shares||
|Zhang Meilan|988,901|Domestically||
|||listed foreign|988,901|
|||shares||
|Zhu Shijie|987,472|Domestically||
|||listed foreign|987,472|
|||shares||
|Chen Cirou|969,409|Domestically||
|||listed foreign|969,409|
|||shares||
|Ma Zeqi|959,762|Domestically||
|||listed foreign|959,762|
|||shares||
|VANGUARD TOTALINTERNATIONAL STOCKINDEX FUND|911,402|Domestically||
|||listed foreign|911,402|
|||shares||
|Zheng Heng|851,701|Domestically||
|||listed foreign|851,701|
|||shares||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
|Explanation about associated||
|relationship and concerted action||
|among the top ten shareholders not||
||It is unknown whether the tradable share holders above are related parties or whether they are|
|subject to trading moratorium as||
||parties acting in concert as stipulated in the Administrative Methods for Information|
|well as between the top ten||
||Disclosure Regarding Shareholding Changes of Listed Companies.|
|shareholders not subject to trading||
|moratorium and the top ten||
|shareholders||
|Particulars about shareholders||
|participating in margin trading (if|N/A|
|any) (note 4)||

Did any top ten shareholder of common share and the top ten shareholders not subject to trading moratorium of the Company carry out an agreed buy-back in the reporting period?
□ Yes√ No
Top ten shareholder of common share and the top ten shareholders not subject to trading moratorium of the Company did carry out an agreed buy-back in the reporting period
2. Particulars about controlling shareholders of the Company
Legal person
|||||||
|-|-|-|-|-|-|
||Legal|||||
|Name of controlling|representative /|Date of||||
||||Organization code|Registered capital|Main business|
|shareholders|head of unit|foundation||||
||||||Production, manufacture|
||||||and distribution of|
||||||packing materials,|
||||||papermaking, cable,|
||||||wire, new materials;|
|Foshan Huaxin||||RMB 45793 ten||
||Tong Laiming|27 May 1993|19353992-5||distribution of packing|
|Development Co., Ltd.||||thousand||
||||||machinery and repairing|
||||||services, amplifiers and|
||||||fittings, decoration|
||||||materials, and drinks;|
||||||information consulting|
|Future development||||||
||N/A|||||
|strategy||||||
|Operating results,|Particulars about the controlling shareholder of the Company: Foshan Huaxin Development Co., Ltd.|||||
|financial situation, cash|(hereinafter referred to as “FHD”) holds 329,512,030 of the Company’s state-owned corporate shares|||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
|flow and future|(non-tradable), taking 65.2% of the total share capital. FHD was incorporated on May 27, 1993; its legal|
|development strategy,|representative is Tong Laiming; its registered capital is RMB 457.93 million; its business scope:|
|etc.|production, manufacture and distribution of packing materials, papermaking, cable, wire, new materials;|
||distribution of packing machinery and repairing services, amplifiers and fittings, decoration materials, and|
||drinks; information consulting, etc. The shareholder, Huaxin Development Co., Ltd. mainly works on|
||promotion of program on integrating forest with paper and the major business is providing paper-making|
||and printing for the Company. In 2013, the consolidated operation revenue of FHD reached RMB 4.006|
||billion, total profits reached RMB 138 million, total assets reached RMB 5.809 billion and net cash flow|
||of operating activities reached RMB 813 million.|
|Equity of shareholding||
|and participating shares||
|of controlling||
|shareholders in other|N/A|
|domestic and foreign||
|listed company during||
|the reporting period||

Changes in controlling shareholders during the reporting period
□ Applicable√ Non-applicable
The controlling shareholder did not change during the reporting period.
3. Particulars about the actual controller
Legal person
|||||||
|-|-|-|-|-|-|
||Legal|||||
|Name of actual|representative /|Date of|Organization|||
|||||Registered capital|Main business|
|controller|head of unit|foundation|code|||
||||||Investment and|
||||||development of capital|
||||||goods of major industrial|
|China National Paper||||||
||||||products, metal materials,|
|Industry Investment|Tong Laiming|22 Jan. 1998|10000890-7|RMB 4.033 billion||
||||||sales of raw materials and|
|Corp.||||||
||||||products of chemical light|
||||||industry and paper, import|
||||||& export industry.|
||Based on depth adjustment and optimization of the visual angle of whole industry chain and through deep|||||
||pulp paper industry, related industries of the moderate development, and actively cultivate emerging|||||
|Future development||||||
||business, achieve a more reasonable layout of the industrial structure. Through capital operation and|||||
|strategy||||||
||system innovation, establish a market-oriented operation mechanism, improve the industry status and|||||
||influence, strive to build to an internationally competitive enterprise groups.|||||
|Operating results,||||||
||In the end of 2013, total assets reached RMB 33.653505 billion, net assets was RMB 11.8731773|||||
|financial situation, cash||||||
||billion, the total operation revenue was RMB18.5695505 billion, net profits reached RMB 108.5123|||||
|flow and future||||||
||million.|||||
|development strategy,||||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
|etc.||
|Particulars about||
|shareholding of||
|controlling shareholders||
|controlling and holding|Guangdong Guanhao High-tech Co., Ltd. (600433.SH), Yueyang Forest & Paper Co., Ltd. (600963.SH).|
|shares of other listed||
|companies during the||
|reporting period||

Change in actual controller in the reporting period
□ Applicable√ Inapplicable
Diagram of ownership and control relationship between the Company and its actual controller:
SASAC
100%
China Chengtong Holding Group
Co., Ltd
100%
78.26%
China National Paper Industry
Investment Corp.
66.79%
Jiacheng Enterprise
Development Co., Ltd
0.11%
Foshan Huaxin Development Co.,
6.62%
Ltd
65.2%
34.69%
Foshan Huaxin Packaging Co., Ltd
Other sponsors shareholders& shareholders of B share
The actual controller controls the Company by the means of trust or other means of assets management
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.□ Applicable√ Inapplicable
4. Other Corporate Shareholder with a shareholding percentage over10%
□ Applicable√ Inapplicable
IV. Particulars on shareholding increase scheme during the reporting period proposed or implemented by the shareholders and act-in-concert persons
□ Applicable√ Inapplicable
Within the scope of the Company known, there was no shareholding increase scheme during the reporting period proposed or implemented by the shareholders and act-in-concert persons.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. VII. Preferred stock
□ Applicable√ Inapplicable
There was no preferred stock during reporting period.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Section VIII. Directors, Supervisors and Senior Executives and Employees
I. Changes in shareholding of directors, supervisors and senior executives
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||Shares|Increase of|||
||||||Starting|Closing|||Decrease|Shares|
||||||||held at the|shares in|||
||||||date of|date of|||of shares|held at the|
|||Incumbent|||||beginning|this|||
|Name|Title||Gender|Age|office term|office term|||in this|end of the|
|||or not|||||the|reporting|||
||||||(yy-mm-d|(yy-mm-d|||reporting|reporting|
||||||||reporting|period|||
||||||d)|d)|||period|period|
||||||||period|(share)|||
||Chairman||||||||||
|Tong|||||6 Jun.|6 Jun.|||||
||of the|Incumbent|Male|45|||0|0|0|0|
|Laiming|||||2014|2017|||||
||Board||||||||||
|Ji|Vice||||6 Jun.|1 Jun.|||||
|||Incumbent|Male|40|||0|0|0|0|
|Xiangdong|p resident||||2014|2017|||||
||||||6 Jun.|1 Jun.|||||
|Hong Jun|Director|Incumbent|Male|55|||0|0|0|0|
||||||2014|2017|||||
||||||26 Jun.|1 Jun.|||||
|Huang Xin|Director|Incumbent|Male|52|||0|0|0|0|
||||||2014|2017|||||
||||||6 Jun.|1 Jun.|||||
|Ye Meng|Director|Incumbent|Male|46|||0|0|0|0|
||||||2014|2017|||||
|Yang|||||6 Jun.|1 Jun.|||||
||Director|Incumbent|Male|44|||0|0|0|0|
|Weixing|||||2014|2017|||||
||Independe||||6 Jun.|1 Jun.|||||
|Zhao Wei||Incumbent|Male|54|||0|0|0|0|
||nt Director||||2014|2017|||||
|Zhang|Independe||||6 Jun.|1 Jun.|||||
|||Incumbent|Male|47|||0|0|0|0|
|Wenjing|nt Director||||2014|2017|||||
|Yang|Independe||||6 Jun.|1 Jun.|||||
|||Incumbent|Male|44|||0|0|0|0|
|Zhenyu|nt Director||||2014|2017|||||
||Chairman||||||||||
||of the||||||||||
|Ren|||||6 Jun.|1 Jun.|||||
||Supervisor|Incumbent|Male|52|||0|0|0|0|
|Xiaoming|||||2014|2017|||||
||y||||||||||
||Committee||||||||||
|Huang|||||6 Jun.|1 Jun.|||||
||Supervisor|Incumbent|Male|58|||0|0|0|0|
|Jianrong|||||2014|2017|||||
|Yang|||||6 Jun.|6 Jun.|||||
||Supervisor|Incumbent|Male|41|||0|0|0|0|
|Chenglin|||||2014|2017|||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Ji|||||6 Jun.|6 Jun.|||||
||GM|Incumbent|Male|40|||0|0|0|0|
|Xiangdong|||||2014|2017|||||
||Vice||||||||||
||||||6 Jun.|6 Jun.|||||
|Chen Jiali|General|Incumbent|Male|57|||0|0|0|0|
||||||2014|2017|||||
||Manager||||||||||
||Vice||||||||||
|Liu|||||6 Jun.|6 Jun.|||||
||General|Incumbent|Male|45|||0|0|0|0|
|Hanwen|||||2014|2017|||||
||Manager||||||||||
||Vice||||||||||
||||||6 Jun.|6 Jun.|||||
|Wu Yirong|General|Incumbent|Male|52|||0|0|0|0|
||||||2014|2017|||||
||Manager||||||||||
||Vice||||||||||
|Chen|||||6 Jun.|6 Jun.|||||
||General|Incumbent|Male|48|||0|0|0|0|
|Zhenran|||||2014|2017|||||
||Manager||||||||||
||Vice||||||||||
||General||||||||||
||Manager,||||||||||
|Yang|CFO,||||26 Jun.|6 Jun.|||||
|||Incumbent|Male|44|||0|0|0|0|
|Yinhui|Secretary||||2014|2017|||||
||of the||||||||||
||Board of||||||||||
||Directors||||||||||
||Vice||||||||||
||||||1 Jun.|26 Jun.|||||
|Wang Qi|president,|Former|Male|61|||0|0|0|0|
||||||2011|2014|||||
||GM||||||||||
||||||1 Jun.|26 Jun.|||||
|Wang Jun|Director|Former|Female|42|||0|0|0|0|
||||||2011|2014|||||
||||||1 Jun.|26 Jun.|||||
|Yan Su|Director|Former|Male|44|||0|0|0|0|
||||||2011|2014|||||
|Zhu|Independe||||1 Jun.|26 Jun.|||||
|||Former|Male|50|||0|0|0|0|
|Zhengfu|nt Directo||||2011|2014|||||
|Chen|||||1 Jun.|26 Jun.|||||
||Supervisor|Former|Male|48|||0|0|0|0|
|Zhenran|||||2011|2014|||||
|Total|--|--|--|--|--|--|0|0|0|0|

 II. Information about employment
Main work experience of current directors, supervisors and senior executives during the recent 5 years
1. Chairman of the Board: Tong Laiming, born in 1969, is a master of economics and certified public accountant. He has served as General Manager as well as Legal Representative in China National Paper-industry Investment Corp. from Apr. 2005 up to now;
from Feb. 2006 up to now, he has been acting as Chairman of the Board in Foshan Huaxin Development Co., Ltd; from May 2008 up
to now, he has been acting as Chairman of the Board in Foshan Huaxin Packaging Co., Ltd. From Jun. 2009 up to now, he has been
acting as Chairman of the Board of Zhuhai Hongta Renheng Paper Co., Ltd.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 2. Vice president& General Manager: Ji Xiangdong, born in 1974, MBA holder and CPA. He held the posts in China Materials Development Investment Corporation as Deputy Manger and Manager of Financial Dept from Aug. 2004 to May 2007; from May 2007 to May 2009, he acted as Chief Financial Officer in Foshan Huaxin Packaging Co., Ltd. He has been acting as Deputy General Manager in Zhuhai Hongta Renheng Paper Co., Ltd since Jan. 2009. He acted as the Assistant General Manager in China Materials Development Investment Corporation from May to Jul. 2009. He acted as Deputy General Manager in Foshan Huaxin Packaging Co., Ltd from Jul. 2009 to May 2014. He has been acting as Vice president& General Manager in Foshan Huaxin Packaging Co., Ltd since 2014.
3. Director: Hong Jun, born in 1959, is a postgraduate degree holder and senior economist. From 1991 to Sep. 2007, he successively took posts as Vice Chief of Appointment& Dismissal Office, Personnel Division in Materials Department, Vice Chief of Cadre Office of Personnel Organ in Domestic Trade Department and General Manager of Human Resource Department in China Chengtong Holding Group Co., Ltd; he has been successively holding a post as Vice Secretary and Secretary of the CPC, Deputy General Manager in China National Paper-industry Investment Corp. since Sep. 2007; Concurrently he acted as Secretary of the CPC in Foshan Huaxin Packaging Co., Ltd since Jul. 2008 as well as Chairman of the Supervisory Committee of Foshan Huaxin Packaging Co., Ltd from May 2008 to May 2014. He has been acting as Director of Foshan Huaxin Packaging Co., Ltd
4. Director: Huang Xin, born in 1962, master degree holder. From 1993 to Mar. 2006, he successively served as Deputy General Manager, Manager of OperationDept.Ⅱ, Manager of Industrial Dept., Deputy Manager of Stratagem Investment Dept. and Manager of Asset Management Dept. in China Material Development Investment Corporation. He has been acting as the Director of the Company since May 2003. He held a post in Foshan Huaxin Packaging Co., Ltd as a Deputy General Manager from Mar. 2006 to May 2008. He worked as Deputy General Manager in Foshan Huaxin Development Co., Ltd from May 2008 to Jul. 2009; he acted as General Manager in Zhuhai Hongta Renheng Paper Co., Ltd from Jun. 2008 to March 2012, and is also Deputy General Manager in Foshan Huaxin Packaging Co., Ltd from Jul. 2009 to Jun. 2011, and now is Executive, Vice Manager. He has been acting as General Manager of Hunan Tiger Forest& Paper Group Co., Ltd. since Aug. 2012, and now is Chairman; From July 2013 up to now act as Chairman of Yueyang Forest& Paper Co., Ltd.
5. Director: Ye Meng, born in 1968, master degree holder, Senior Economist, he acted as HR Manager in Yueyang Paper Co., Ltd. from Feb. 2003 to Apr. 2003, Deputy GM in Yueyang Paper Co., Ltd. from Apr. 2003 to Sep. 2006; he acted as Secretary of the Board in Tiger Forest& Paper Group Co., Ltd. from Sep. 2006 to Jan. 2008, Chief Economist and Chief Legal Officer from Sep. 2006 to Sep. 2009 in Tiger Forest& Paper Group Co. , Ltd. he has been acting as Vice President& Communist Party Member(concurrently) in Tiger Forest& Paper Group Co. , Ltd. since Nov. 2007; he acted as Secretary of the Party Committee in Yueyang Paper Co., Ltd. (concurrently). Since Aug. 2011, he has been acting as General Manager Assistant in China National Paper-Industry Investment Corp. (now known as: China Paper Corporation ), Vice President& Communist Party Member(concurrently) in Tiger Forest& Paper Group Co. , Ltd. Since Apr. 2012, he has been acting as Chairman of the Supervisors in Yueyang Paper Co., Ltd. And he has been acting as Director in Foshan Huaxin Development Packaging co., Ltd since Jun. 2014. 6. Director: Yang Weixing, born in 1970, is a bachelor degree holder and economist. From Dec. 1999 to Aug. 2006, he successively took posts as Vice Director of Assets Operation Department in Foshan Industry Investment Holding Co., Ltd, Minister of Property Management Department, Assistant to General Manager and Deputy General Manger in Foshan Chan Ben De Development Co., Ltd and Deputy General Manager in Foshan Taiji Wine Co., Ltd; he acted as General Manager in Foshan Chan Ben De Development Co., Ltd since Jun. 2007. From Jan. 2010 to Nov. 2013, he acted as Chairman of Board of Supervisors in Foshan Investment Holodings Co., Ltd.; from Oct. 2013 up to now, he has been acting as Chairman of Foshan East Asia Co., Ltd.; from Dec. 2013 up to now, he has been acting as Director, Deputy General Vice Manager in Foshan Investment Holodings Co., Ltd.
7. Independent Director: Zhao Wei, born in 1960, is a bachelor degree holder and senior engineer. He has took post of Vice Director in Personnel Division in Clerk and Cadre Office of Ministry of Light Industry from Apr. 1987 to Mar. 1991; of Office Director, Director of Production Office of Paper Production Division of Ministry of Light Industry from Mar. 1991 to Feb. 1993; of Vice Director of Paper Industry Office of China National Light Industry Association from Feb. 1993 to Aug. 1998. He has been Vice Chairman and concurrent Secretary of China Paper Association since Feb. 1998.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 8. Independent Director: Yang Zhenyu, born in 1970, college degree, auditor. He has been Chief of Business Section of Hong Kong Jieren Co., (Guangzhou) Company from Jun. 1994 to Mar. 1996; Manager of Guangxi Datong Certified Public Accountant from Mar. 1996 to Dec. 1997; Vice GM of Guangdong Guangxin Certified Public Accountant from De. 1997 to Sep. 2009. He has been partner of Grant Thornton China and Ascenda Certified Public Accountants since Sep. 2009.
9. Independent Director: Zhang Wenjing, born in 1967, master degree, lawyer. He acted as Prosecutor in Zhuhai West Zone People's Procuratorate from Jul, 1995 to Dec. 1997. He has been acting as lawyer officer of Guangdong Chenguang Law Offices (now renamed as De Heng (Zhuhai) Law Offices). Now he acts as the Standing Committee of the National People' s Congress of Zhuhai City, Legal Counsel of Zhuhai Municipal Housing and Urban and Rural Planning Construction Bureau. He has been acting as Independent Director in Foshan Huaxin Packaging Co., Ltd. since Jun. 2014.
10. Chairman of the Supervisory Committee: Ren Xiaoming, born in 1962, bachelor degree, lecturer. he has successively held the posts of Deputy Manager of Planning Department, Director of Financial Department, Deputy Officer of Integrated Office, Deputy Manager of Personnel Administration Department (Office) Party Committee, Deputy Officer of General Manager Office (Party-Mass Work) in China Materials Development Investment Corporation ( now renamed as China National Paper-industry Investment Corp.) he has been acting as Commission for Discipline Inspection Committee in China Materials Development Investment Corporation ( now renamed as China National Paper-industry Investment Corp.) since May 2008, Discipline Inspection Commission Secretary, Party Committee Members in Foshan Huaxin Packaging Co., Ltd. since Oct. 2011. He has been acting as Chairman of the Supervisory Committee in Foshan Huaxin Packaging Co., Ltd. since Jun. 2014.
11. Supervisor; Huang Jianrong, born in 1956, is a MBA degree holder and Senior Political Worker. From May 1990 to Mar. 2008, he successively acted as Deputy Director General of Foshan Secrecy Bureau, Vice Secretary of the CPC and Deputy General Manager in Foshan Petroleum Chemical Industry Co., Ltd, Director of Enterprise Management Department as well as Secretary of Discipline Inspection Committee in Foshan Zhongli Management Co., Ltd; Director of Administration Office, Director of the Party Committee Office and Vice Secretary of Discipline Inspection Committee in Foshan Huaxin Development Co., Ltd; he has been holding posts as the Chairman of the Supervisory Committee in Foshan Huaxin Development Co., Ltd since May 2008; he has been holding posts as Manager of Human Resource Department since Mar. 2008 and Vice Secretary of Discipline Inspection Committee and Director of Communist Party Office in Foshan Huaxin Packaging Co., Ltd. since Jul. 2008.
12. Supervisor; Yang Chenglin, born in 1973, bachelor degree, CPA. He acted as CFO in Zhuhai Huihai Development Co., Ltd. from Aug. 2001 to Nov. 2006, Financial Manager in MABOX from Dec. 2006 to Jun. 2009. He successively acted as Accounting, Deputy Director, Deputy Financial Manager, Financial Manager, and Assistant of General Manager in Zhuhai S.E.Z Hongta Renheng Paper Co., Ltd. since Jun. 2009. He has been acting as Supervisor (Staff Representative) in Foshan Huaxin Packaging Co., Ltd. since Jun. 2014.
13. Deputy General Manager: Chen Jiali, born in 1957, is a junior college graduate and engineer. He served as Deputy General Manager in Huaxin Tetra (Foshan) Packaging Co., Ltd from Feb. 1997 to Sep. 2012. He has been acting as Deputy General Manager in Foshan Huaxin Packaging Co., Ltd since Jul. 1999, concurrently serves as Chairman of the Board in Huaxin (Foshan) Color Printing Co., Ltd.; since Feb. 2011, he has been GM of Foshan Chengtong Paper Co., Ltd.
14. Vice General Manager: Liu Hanwen, born in 1969, bachelor degree, an engineer. He acted as technician in Technology Reform Office, Assistant Engineer and Minister of Production Technology Division of Foshan Huafeng Paper Co., Ltd. from 1989 to 2001; as GM of Strategy Development Division of Foshan Huaxing Packaging Co., Ltd. from 2001 to 2002; as GM of Huaxin (Foshan) Color Printing Co., Ltd from 2002 to 2003; as Director of Production Line, Assistant to GM, GM of Foshan Huafeng Paper Co., Ltd from 2004 to 2008; as Vice GM since 2009 to present; and Vice GM of Foshan Huaxin Packaging Co., Ltd. since Jun. 2011. 15. Vice General Manager: Wu Yirong, born in Oct. 1962, bachelor degree, Senior Engineer. He acted as Deputy Section Chief, Section Chief, the Chief Engineer in Hongjiang Paper-Making Factory, Technology Deputy Managers, Sales Managers, Deputy Chief Engineer, Deputy General Manager in Zhuhai S.E.Z Hongta Renheng Paper Co., Ltd. He has been acting as Deputy General Manager in Zhuhai S.E.Z Hongta Renheng Paper Co., Ltd. since 2008. He has been acting as Deputy General Manager in Foshan
Huaxin Packaging Co., Ltd. since 2014.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 16. Vice General Manager: Chen Zhenran, born in 1966, is a MBA degree holder and Mechanical Engineer. From June 1989 to Dec. 1990, he acted as Technician of New Plant Construction Office of Foshan Huaxin Composite Materials Co., Ltd.; from Jan. 1991 to Jun. 1995, he acted as Vice manager and duty manager in production department of Foshan Huaxin Composite Material Co., Ltd.; from Jul. 1995 to Jun. 2004, he acted as Printing Manager, QA Manager, WCM Coordinator in Tetra Huaxin (Foshan) Packaging Co., Ltd.; from Jul. 2004 to Jun. 2006, he acted as Vice Manager and New Plant Project Manager in Huaxin (Foshan) Color Printing Co., Ltd.; from Jul. 2006 up to now, he has been acting as General Manage of Huaxin (Foshan) Color Printing Co., Ltd.
He has been acting as Vice General Manage of Huaxin (Foshan) Color Printing Co., Ltd. since 2014.
17. Deputy General Manager, Secretary of the Board of Directors, CFO: Yang Yinghui, born in 1970, bachelor degree holder, senior accountant, CPA, CTA and CIA. From Mar. 1997 to Jun. 2001, he acted as accountant of finance department of Zhuhai Huafeng Foodstuff Industry (group) Co., Ltd., Chief of Finance Section of Zhuhai Huafeng Color Print Co., Ltd. and Zhuhai Huafeng Membrane Co., Ltd., subordinated to Zhuhai Huafeng Foodstuff Industry (group) Co., Ltd. From Jun. 2001 to Feb. 2014, he was working in Finance Department of Zhuhai Hongta Renheng Paper Co., Ltd., successively took posts of Chief Accountant in sales, Vice GM, GM of Finance Department, Assistant of General Manager and Deputy General Manager. From Jun. 2011 up to now, he has been acting Supervisor of Foshan Huaxin Development Co., Ltd; from Jul. 2013 up to now, he has been acting as Deputy General Manager of Foshan Huaxin Packaging Co., Ltd; from Oct. 2013, he has been acting as CFO and Secretary of Board of Directors in Foshan Walsin Packaging Co., Ltd.
Employment inshareholders’ companies
√ Applicable□ Non-applicable
|||||||
|-|-|-|-|-|-|
||||||Whether receiving|
|||Posts held in|||subsidies and|
|Name of|||Start date of|Expiration||
||Name of shareholders’ companies|shareholders’|||remuneration in|
|employers|||tenure|Date of tenure||
|||companies|||shareholders’|
||||||companies|
||China National Paper Industry Investment|General||||
|Tong Laiming|||1 Apr. 2005||Yes|
||Corp.|Manager||||
|||Secretary of||||
|||the Party||||
||China National Paper Industry Investment|Committee,||||
|Hong Jun|||1 Sep. 2007||Yes|
||Corp.|Deputy||||
|||General||||
|||Manager||||
|||Perform||||
||China National Paper Industry Investment|||||
|Huang Xin||General|1 May 2012||Yes|
||Corp.|||||
|||Manager||||
||China National Paper Industry Investment|Assistant of||||
|Ye Meng|||1 Aug. 2011||Yes|
||Corp.|GM||||
||Foshan Chan Ben De Development Co.,|General||||
|Yang Weixing|||1 Jun. 2007||Yes|
||Ltd.|Manager||||

Employment in other entities
√ Applicable□ Non-applicable
|||||||
|-|-|-|-|-|-|
|Name of|Name of other companies|Posts held in|Start date of|Expiration|Whether receiving|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
|employers||shareholders’|tenure|Date of tenure|subsidies and|
|||companies|||remuneration in|
||||||other companies|
|||Vice||||
|||Chairman||||
|Zhao Wei|China Paper Association|and|1 Jan. 1998||Yes|
|||concurrent||||
|||Secretary||||
||Grant Thornton China and Ascenda|||||
|Yang Zhenyu||Partner|1 Sep. 2009||Yes|
||Certified Public Accountants|||||
|Zhang Wenjing|De Heng (Zhuhai) Law Offices|Director|1 Dec. 1997||Yes|

III. Remuneration of directors, supervisors and senior executives
Decision-making procedure, determination basis and actual payment of remuneration of directors, supervisors and senior executives 1. Decision-making procedure of remuneration of directors, supervisors and senior executives: remuneration of directors and supervisors was deliberated and approved byshareholders’ general meeting; the standards of remuneration of senior executives were decided by the remuneration and appraisal commission according to management regulations of remuneration and business performance, and then were submitted to the board of directors for approval.
2. Determination basis of remuneration of directors, supervisors and senior executives: the Company, according to the income level of industry and region and considering business performance of the Company and contribution to the Company, decided the scope of annual remuneration of directors, supervisors and senior executives. On the basis of appraisal results, annual remuneration was determined. Moreover, according to the growth of annual business performance and accomplishment of major projects, the extra rewards would be granted after the authorization of the board of directors and verification of Chairman of the board of directors. Remuneration of directors, supervisors and senior executives in the reporting period
Unit: Ten Thousand Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|||||||Total amount|Actual|
||||||Total amount|||
|||||||of|payment|
||||||of|||
|||||Incumbent or||remuneration|received at the|
|Name|Title|Gender|Age||remuneration|||
|||||not||received from|end of the|
||||||received from|||
|||||||shareholders’|reporting|
||||||the Company|||
|||||||companies|period|
||Chairman of|||||||
|Tong Laiming||Male|45|Current|0|0|0|
||the Board|||||||
|Ji Xiangdong|Vice president|Male|40|Current|1|0|1|
|Hong Jun|Director|Male|55|Current|0|0|0|
|Huang Xin|Director|Male|52|Current|0|0|0|
|Ye Meng|Director|Male|46|Current|0|0|0|
|Yang Weixing|Director|Male|44|Current|0|0|0|
||Independent|||||||
|Zhao Wei||Male|54|Current|8|0|8|
||Director|||||||
|Yang Zhenyu|Independent|Male|44|Current|8|0|8|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||||
|-|-|-|-|-|-|-|-|
||Director|||||||
||Independent|||||||
|Zhang Wenjing||Male|47|Current|4|0|4|
||Director|||||||
||Chairman of|||||||
|Ren Xiaoming|the Supervisory|Male|52|Current|1|0|1|
||Committee|||||||
|Huang||||||||
||Supervisor|Male|58|Current|1|0|1|
|Jianrong||||||||
|Yang Chenglin|Supervisor|Male|41|Current|1|0|1|
||Vice General|||||||
|Chen Jiali||Male|57|Current|1|0|1|
||Manager|||||||
||Vice General|||||||
|Liu Hanwen||Male|45|Current|1|0|1|
||Manager|||||||
||Vice General|||||||
|Wu Yirong||Male|52|Current|1|0|1|
||Manager|||||||
||Vice General|||||||
|Chen Zhenran||Male|49|Current|1|0|1|
||Manager|||||||
||Vice General|||||||
||Manager, CFO,|||||||
|Yang Yinhui|Secretary of|Male|44|Current|1|0|1|
||the Board of|||||||
||Directors|||||||
||Vice president,|||||||
|Wang Qi||Male|61|Former|1|0|1|
||GM|||||||
|Yan Su|Director|Male|44|Former|0|0|0|
|Wan Jun|Director|Female|42|Former|0|0|0|
||Independent|||||||
|Zhu Zheng fu||Male|50|Former|4|0|4|
||director|||||||
|Total|--|--|--|--|34|0|34|

 Information about stock incentive granted to directors, supervisors and senior executives in the reporting period
□ Applicable√ Inapplicable
IV. Explanation of payment
Because of the Board of Directors of Company had not deliberated the gained annual salary of Directors, Supervisors and Senior Executives of 2014, the above “1” was it salary data will be supplemented and disclosed in supplement in time when the Company passed the deliberation of the Board of Directors.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. V. Changes in engagement and dismissal of Directors, Supervisors and Senior Management Staffs within the reporting period
||||||
|-|-|-|-|-|
|Name|Position|Type|Date|Reason|
|Ji Xiangdong|Vice President|Elected|6 Jun. 2014|General Election of the Board of Director|
|Hong Jun|Director|Elected|6 Jun. 2014|General Election of the Board of Director|
|Ye Meng|Director|Elected|6 Jun. 2014|General Election of the Board of Director|
||Independent||||
|Zhang Wenjing||Elected|6 Jun. 2014|General Election of the Board of Director|
||Director||||
||Chairman of the||||
|Ren Xiaoming||Elected|6 Jun. 2014|General Election of the Board of Supervisor|
||supervisor||||
||Supervisor of||||
|Yang Chenglin|Staff|Elected|6 Jun. 2014|By-election of Supervisor of Staff Representative|
||Representative||||
|Ji Xiangdong|GM|Employed|6 Jun. 2014|Job Transfer|
|Wu Yirong|Deputy GM|Employed|6 Jun. 2014|Job Transfer|
|Chen Zhenran|Deputy GM|Employed|6 Jun. 2014|Job Transfer|
|||Left as the|||
|Wang Qi|Vice President|service term|6 Jun. 2014|Retirement|
|||expired|||
|||Left as the|||
|Yan Su|Director|service term|6 Jun. 2014|Left as the service term expired|
|||expired|||
|||Left as the|||
|Wang Jun|Director|service term|6 Jun. 2014|Left as the service term expired|
|||expired|||
|||Left as the|||
||Independent||||
|Zhu Zhenfu||service term|6 Jun. 2014|Left as the service term expired|
||Director||||
|||expired|||
|||Left as the|||
||Chairman of the||||
|Hong Jun||service term|6 Jun. 2014|Left as the service term expired|
||supervisor||||
|||expired|||
||Supervisor of|Left as the|||
|Chen Zhenran|Staff|service term|6 Jun. 2014|Left as the service term expired|
||Representative|expired|||

VI. Particulars about changes in core technical team or key technicians during the reporting
period (not directors, supervisors or senior management)
N/A
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. VII. Employees of the Company
Employees of the Company and professional structure: The Company has 2,285 in-service employees, including 1,391 production staff, 110 sales staff, 91 technical staff, 23 procurement staff, 298 logistics staff, 185 financial staff and administrative staff and 187other staff.
There existed no retirees whom the Company will bear the expenses. The staff above included staff from subsidiary holding company.
0 500 1000 1500 2000 2500
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Section IX. Corporate governance
I. Basic information about corporate governance
In the reporting period, the Company continuously perfected its corporate governance structure, built up a modern enterprise system, and regulated its operation in accordance to Company Law, Securities Law and Code of Corporate Governance of Listed Companies as well as requirements of other relevant laws and statutes. In view of this, the Board of Directors believes that the actual situation of theCompany’s corporate governance is basically in line with the requirements of the Code of Corporate Governance for Listed Companies, which is detailed as follows:
(I) About shareholders andShareholders’ General Meeting: The Company according to requirements such as the Articles of Association and Rules of Procedure of the General Assembly, further standardized the convening of theShareholders’ General Meeting, so as to ensure the full exercise of allshareholders’ legal rights and interests; to fully take advantage of the internet voting instruments, to ensure the full exercise of allshareholders’ legal rights and interests, as well as the fair treatment for all shareholders, especially minority shareholders.
(II) About the controlling shareholders and the listed Company: the controlling shareholders acted according to rules, and did not go beyond theShareholders’ General Meeting for direct or indirect interference in theCompany’s decisions and business activities; the Company was separated from its controlling shareholders in such aspects as personnel, assets, financial affairs, organs and business activities. The Board of Directors, the Board of Supervisors and theCompany’s other internal organs worked independently; the transactions between the Company and its controlling shareholders, as well as other related parties, were conducted in a fair and just way.
(III) About the directors and the Board of Directors: directors of the Company were elected in strict compliance with the stipulation in the Company Law and the Articles of Association of the Company. And the number of directors and the structure of the Board of Directors were in accordance to the requirements of laws and regulations. In according to Rules of Procedures for the Board, attended the Board meetings in a conscientious and responsible manner.
(IV) About Supervisors and the Board of Supervisors: the number of supervisors and the structure of the Board of Supervisors were in line with the requirements of laws and regulations. And all the supervisors of the Company conscientiously performed their duties by supervising the legitimacy of duty performance of the directors, managers and other senior management personnel.
(V) Independent directors played an important role in theCompany’s decision-making. The Company paid attention to the roles of the independent directors and during the management, the independent directors carried out a carefully investigation of the financial audit, significant related transaction, recruitment of senior executives and declared relevant independent advice.
(VI) About the performance appraisal and incentive& restraining mechanism: the performance appraisal and incentive& restraining mechanism of Directors, Supervisors and Senior Executives were being gradually established in the Company to work impartially and transparently.
(VII) About information disclosure and transparency: the Secretary of the Board of Directors was assigned by the Company to take charge of information disclosure. In strict compliance with relevant laws and regulations, as well as the Information Disclosure Rules, relevant information was disclosed in time with authenticity, accuracy and completeness. And it was made sure that all shareholders were fairly treated in terms of information disclosure. (VIII) About related beneficiaries: the Company fully respected and protected the legal rights and interests of its
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. related beneficiaries, and managed to reach a balance among interests of its shareholders, employees, the society and other related beneficiaries, so as to promote theCompany’s continuous and healthy development.
(IV) About management of the relationship with investors: the Company had specially-appointed staff to manage the relationship with investors, and established a platform of communication with investors. And the phones calls and letters from investors were carefully answered and replied in details. Meanwhile, the investors visiting the Company in person were well received.
Whether there existed differences between corporate governance and the relevant regulations of “Company Law” and CSRC.□ Yes√ No
There existed no difference between corporate governance and the relevant regulations of “Company Law” and CSRC
Information about the progress of special activities of corporate governance, and about establishment and implementation of registration and management of insiders
During the reporting period, the Company strictly executed the requirements of the Registration System for Information Insiders, and to truthfully and completely record the name list of all insiders in the aspects of planning, transfer, promulgation, review and disclosure as well as the relevant filers such as the time when the insiders knew of the inside information before the public disclosure of relevant inside information, which were all strictly executed according to the Registration System for Information Insiders, and at the same time the relevant materials had been submitted and recorded timely to Shenzhen Stock Exchange.
II. Particulars about annualshareholders’ general meetings and temporaryshareholders’ general meetings held during the reporting period
1. Particulars about annualshareholders’ general meetings during the reporting period
|||||||
|-|-|-|-|-|-|
||Date of holding|Proposal passed on||||
|Meetings|||Resolution|Date of disclosure|Index for disclosure|
||meetings|the meetings||||
|||1. 2013 Working||||
||||||Name of|
|||Report of the Board||||
||||||announcement:|
|||of Directors||||
||||||Foshan Huaxin|
|||2. Proposal on 2013||||
||||||Packaging Co.,|
|||Annual Working||||
||||||Ltd.-Announcement|
|||Report of the||||
||||||on Resolution of|
|||Supervisory||||
||||||2013 Shareholders'|
|||Committee||||
||||||General Meeting;|
|2013 annual||3. Proposal on 2011||||
||||The above proposals||Number of|
|shareholders’ general||Annual Report and||||
||16 May 2014||have been all|17 May 2014|announcement:|
|meeting||Abstract 4. Proposal||||
||||approved.||2014-018|
|||on 2013 Annual||||
||||||Newspaper and|
|||Financial Statement||||
||||||website on which the|
|||5.Proposal on Profit||||
||||||announcement was|
|||Distribution Plan for||||
||||||disclosed: Securities|
|||2013||||
||||||Times, HK Ta Kung|
|||6. Proposal on||||
||||||Pao, Cninfo|
|||Conducting Routine||||
||||||(http:/www.cninfo.co|
|||Related Transactions||||
||||||m.cn)|
|||Between Controlling||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||
|-|
|Subsidiaries and|
|Related Parties|
|7. Proposal on|
|Providing Guarantee|
|for Controlling|
|Subsidiaries 8.|
|Proposal on revising|
|Articles of|
|Association 9.|
|Proposal on revising|
|the Accessory|
|System of Articles of|
|Association and the|
|Profit Distribution|
|Management|
|System.|

2. Particulars about the temporary shareholders' general meeting
|||||||
|-|-|-|-|-|-|
||Date of holding|Proposal passed on||||
|Meetings|||Resolution|Date of disclosure|Index for disclosure|
||meetings|the meetings||||
|||1. Proposal on the||||
|||Nomination of the||||
||||||Name of|
|||Company’s 6th||||
||||||announcement:|
|||Session of the Board||||
||||||Foshan Huaxin|
|||of Directors in the||||
||||||Packaging Co.,|
|||General Election of||||
||||||Ltd.-Announcement|
|||the Board||||
||||||on Resolution of the|
|||2.Proposal on the||||
||||||1st Temporary|
|||Nomination of the||||
||||||Shareholders'|
|||Company’s 6th||||
||||||General Meeting for|
|The 1st temporary||Session of the Board||||
||||||2014; Number of|
|shareholders' general|6 Jun. 2014|of Supervisors in|Have been approved.|9 Jun. 2014||
||||||announcement:|
|meeting for 2014||the General Election||||
||||||2014-027|
|||of the Board of||||
||||||Newspaper and|
|||Supervisors 3.||||
||||||website on which the|
|||Proposal on||||
||||||announcement was|
|||Providing Guarantee||||
||||||disclosed: Securities|
|||for Controlling||||
||||||Times, HK Ta Kung|
|||Subsidiaries||||
||||||Pao, Cninfo|
|||Borrowing and||||
||||||(http:/www.cninfo.co|
|||Adjusting Estimate||||
||||||m.cn)|
|||Amount of||||
|||Guarantee Line for A||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||Whole Year.||||
||||||Name of|
||||||announcement:|
||||||Foshan Huaxin|
||||||Packaging Co.,|
||||||Ltd.-Announcement|
||||||on Resolution of|
||||||the 2nd Temporary|
|||1. Proposal on||||
||||||Shareholders'|
|||Renewing 2014||||
||||||General Meeting in|
|The 2nd temporary||Certified Public||||
||||||2014; Number of|
|shareholders' general|10 Nov. 2014|Accountants 2.|Have been approved.|11 Nov. 2014||
||||||announcement:|
|meeting for 2014||Proposal on applying||||
||||||2014-045|
|||for the Issuance of||||
||||||Newspaper and|
|||Medium-Term Notes||||
||||||website on which the|
||||||announcement was|
||||||disclosed: Securities|
||||||Times, HK Ta Kung|
||||||Pao, Cninfo|
||||||(http:/www.cninfo.co|
||||||m.cn)|
||||||Name of|
||||||announcement:|
||||||Foshan Huaxin|
||||||Packaging Co.,|
||||||Ltd.-Announcement|
||||||on Resolution of the|
||||||3rd Temporary|
|||Proposal on Related||||
||||||Shareholders'|
|||Party Transactions||||
||||||General Meeting for|
|The 3rd temporary||And Expected||||
||||||2014;Number of|
|shareholders' general|23Dec. 2014|Amount of Adjusting|Have been approved.|24 Dec. 2014||
||||||announcement:|
|meeting for 2014||Part of the Daily||||
||||||2014-052|
|||Related Party||||
||||||Newspaper and|
|||Transactions||||
||||||website on which the|
||||||announcement was|
||||||disclosed: Securities|
||||||Times, HK Ta Kung|
||||||Pao, Cninfo|
||||||(http:/www.cninfo.co|
||||||m.cn)|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.3．Preferred shareholders with the recovery of voting right request for an special shareholders' meeting□ Applicable√ Inapplicable
III. Performance of the Independent Directors during the Reporting Period
1. Particulars about the independent directors attending the board sessions and theshareholders’ general meetings
||||||||
|-|-|-|-|-|-|-|
|Particulars about the independent directors attending the board sessions|||||||
|||||||Failing to present|
||||Presence by||||
|Name of independent|Due presence|Presence in||Entrusted||in person for two|
||||telecommunicati||Absence (times)||
|directors|(times)|person (times)||presence (times)||consecutive|
||||on (times)||||
|||||||sessions or not|
|Zhu Zhengfu|3|0|2|0|1|No|
|Zhao Wei|8|1|7|0|0|No|
|Yang Zhenyu|8|1|7|0|0|No|
|Zhang Wenjing|5|1|4|0|0|No|
|Presence of independent directors in|||||||
|||4|||||
|shareholders’ general meeting (times)|||||||

Explanation of independent directors failed to attend board sessions in person for two consecutive times
2. Particulars about independent directors propose objection on relevant events
Whether independent directors propose objection on relevant events or not?
□ Yes√ No
The independent directorsdidn’t propose objection on relevant events during the reporting period.
3. Other explanation on performance of independent directors
Whether the advices of independent directors for the Company were adopted or not?
√ Yes□ No
Explanation about whether advices related to the Company from the independent directors were taken or not
The Company, according to the relevant regulations and requirements of Company Law and Guideline on Establishing Independent Director System in Listed Company, Articles of Association, earnestly fulfilled the obligations of laws and regulations, articles of association and independent director system, actively attended the board meetings andshareholders’ general meetings, examined and guided the production and operation of the Company, proposed independent opinions on significant events, put forward many valuable and expert advices about internal control and daily operation decisions, fulfilled the duties diligently, faithfully, brought their roles into full play and effectively safeguarded the interests of listed companies and general shareholders.
IV. Duty performance of special committees affiliated to the board of directors during the reporting period
The board of directors of the Company set up nomination committee, remuneration and appraisal committee, audit
and strategy committee. Each committee proposed expert advices and opinions about the development of the
Company in line with its own responsibilities and promoted the standardized corporate development. In 2014,
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. duty performance of each committee affiliated to the board of directors:
1. The audit committee totally participated in the annual audit work for 2013 including formulation of plan on annual audit, examination and verification of the first draft of annual audit report and establishment of the final draft. The audit committee held two meetings in 2013, of which the first one deliberated and approved report on annual financial statements, proposal on continuing employing accounting firms and conclusion on duty performance of accounting firm; and the second one was aimed to communicate with the accounting firm about 2014 annual audit plan.
2. In 2014, the remuneration committee held one meeting in total on which deliberated and approved proposal on remuneration distribution of the management for 2013.
3. In 2014, the nomination committee held one meeting in total on which deliberated and approved proposal on General Election of the Board of Directors and submitted to the Board of Directors.
V. Particulars about the work of supervisory committee
Whether there existed risks in the Company during the reporting period on the basis of supervision conducted by the supervisory committee
□ Yes√ No
The supervisory committee made no objection to events under supervision during the reporting period.
VI. Independence and integrity in business, personnel, assets, organization, finance and so on from controlling shareholder
The Company was independent from the controlling shareholder in aspects of personnel, assets, finance, institutions and business; independently calculated, assumed the responsibilities and risks. The Company had complete and independent business and capacity of self-operation. 1. In terms of personnel, the Company was also independent from its controlling shareholder. General Manager, Deputy General Manager, Secretary of the Board of the Board of Directors and financial personnel of the Company all drew remuneration from the Company, and they did not hold any important position in the controlling shareholder entities. 2. In terms of assets, the Company owned independent production and operation system and affiliated facilities. Assets invested by the controlling shareholder were independent and intact with the clear ownership. 3. In terms of assets, the Company set up independent accounting department, founded independent accounting calculation system and financial management rules; the Company opened an
independent account and paid taxes in line with the laws. 4. In terms of institution, the Company set up organizations independent from the controlling shareholder and conducted the work and performed the duties independently. 5. In terms of business, the Company was completely independent from its controlling shareholder and was fully capable of running its completely independent business.
VII. Horizontal competition
□ Applicable√ Inapplicable
VIII. Particulars about appraisal and incentive mechanisms for senior executives
1. The Company, according to principles of remuneration and stock incentive mechanisms approved byshareholders’ general meeting , Management Method of Remuneration and Incentive of Foshan Huaxin Packaging Co., Ltd. and Implementation Rules of Remuneration and Incentive of Foshan Huaxin Packaging Co., Ltd. revised in 2010 by the remuneration and appraisal committee and the board of directors, determined the amount of incentive remuneration for senior executives on the basis of appraisal results. 2. In the reporting period, the subsidy for independent directors was RMB 80 thousand per year and the expenses for duty performance were borne by the Company.
3. The incumbent Chairman of the board of directors, Tong Laiming, and Directors including Hong Jun, Huangxin, Ye Meng and Yang Weixing did not draw remuneration in the Company. Hong Jun, the supervisor did either. The above persons all received remuneration from entities where they held the posts.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Section X. Internal Control
I. Information about internal control
(I)Overall situation: in the reporting period, the Company, in accordance with the requirements of Company Law, Securities Law, Governance Law for Listed Companies, Guideline for Internal Control of Listed Companies, continuously perfected the governance structure of corporations, standardized the relationship between the Company and controlling shareholders, strengthen the management and control of routine related transactions, continuously enhanced the level of governance and standard operation and conducted a basic guarantee for the effective implementation of internal control management of listed companies to lay a solid foundation to the long-term development of the Company.
(II) Relationship between the controlling shareholder and listed companies: the code of conduct of controlling shareholder did not directly or indirectly interfere with the decision-making and operation of the Company regardless ofshareholders’ general meeting; the Company and controlling shareholder conducted “independence in five aspects” including independence in personnel, assets, finance, institution and business; the board of directors, supervisory committee and internal institutions can operate independently; the transactions conducted between the Company and controlling shareholder were fair, righteous and equitable
(III) Directors and the board of directors: the Company, held the general election of the Board of Directors in Jun. 2014, in strictly accordance with employment procedure regulated in Company Law, Articles of Association, elected directors. The number and structure of the board of directors were in conformity with the requirements of laws and regulations. The directors in the Company were able to the institutions of Rules of Resolution foe the Board of Directors and attended the board meetings with the careful and earnest attitude.
(VI) Implementation of internal control: the year of 2014 is the third year to implement internal control standards to clarify internal control targets, in order to fully conduct the implementation of the requirements of the Ministry of Finance, Securities Regulatory Commission on listed company establishing perfect internal control standard system, further improve enterprise's internal management level, and improve the mechanism of risk assessment, risk control process and improve the ability of risk prevention and control, on the preliminary base of implementation of the company internal control system, the Company decided to fully carry out the supervision of the internal control system construction. In order to better promote the continuous improvement of internal control system, to ensure that the effective implementation of internal control system, the Company set up internal control system construction councilor teams. Councilors consists of teams working group, organized by director of finance and deputy general manager of operating management and manager of each department in each subsidiary, coordinate and cooperate the audit function and promoting the board of directors office to supervise the construction of internal control system, promote continuous improvement of the internal control system , participate in carding diagnosis, rectification and improvement of the internal control and ensure that the internal control system is carried out effectively.
(V) The Company compiled 2014 Internal Control Evaluation Report, covering main units, businesses, items and high-risk areas. Conclusion of internal control is: according to the affirmation of material weakness of internal control and base date, no material weakness exists in financial report. The board of directors considers, the Company has maintained the effective financial report internal control for internal control standards and related regulations. According tot the affirmation of material weakness of internal control without reporting period, no material weakness of internal control without reporting period is discovered.
II. Statement of responsibilities of the board of directors about internal control
According to the regulations of enterprise internal control standard system, establishing, perfecting and effectively implementing internal control, as well as evaluating its effectiveness, is the responsibility of the Board of Directors. The supervisory committee supervises the establishment and implementation of internal control; the management is responsible for organizing and leading the routine operation of internal control. The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior management staff of the Company, which warranted that this report is factual, accurate and complete without any false record, misleading statement or material omission. And they shall be jointly and severally liable for that.
Target of internal control is to guarantee legal management, asset safety and complete financial report and related information,
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. improve management efficiency and effectiveness and promote the development strategy. Due to fixed limitation of internal control, it could provide reasonable guarantee to achieve above targets. Moreover, changes may result inappropriate internal control or incomplete implementation of control policies and procedures. According to internal control evaluation results, effectiveness of future internal control would have risks.
III. Basis on establishing the internal control for financial report
The internal control for financial report is decided according to the Accounting Standards for Business stipulated by the nation and the relevant regulations of Financial Accounting, and established internal unified Financial Management System and Accounting Assessing System; and Enterprises Basic Rules for Enterprise Internal Control and Supporting Guidelines for Enterprise Internal Control jointly issued by the five ministries of PRC, such as the Ministry of Finance and CSRC.
IV. Self-appraisal report on internal control
|||
|-|-|
|Particulars about significant defects of internal control found during the reporting period in the self-appraisal report on internal||
|control||
|According to the affirmation of material weakness of internal control and base date, no material weakness exists in financial||
|report. The board of directors considers, the Company has maintained the effective financial report internal control for internal||
|control standards and related regulations. According to the affirmation of material weakness of internal control and base date, no||
|material weakness exists in the internal control of non-financial report. From the base date of internal control evaluation report to||
|issued date of internal control evaluation report, no effective conclusive elements exist in internal control.||
|Disclosure date of the||
|Self-appraisal Report on Internal|25 Mar. 2015|
|Control||
|Disclosure index of the||
|Self-appraisal Report on Internal|Internal Control Self Assessment Report of 2014, http//www.cninfo.com.cn|
|Control||

V.Auditor’s report on internal control or verification
Auditor’s report on internal control
|||
|-|-|
|Audit opinion paragraphs in the Auditor’s Report on Internal Control||
|Foshan Huaxin Packaging Co., Ltd. maintained effective internal control of financial statements in all significant aspects according||
|to Basic Standards of Corporate Internal Control and relevant regulations on 31 Dec. 2014.||
|Disclosure date of the Auditor’s||
||25 Mar. 2015|
|Report on Internal Control||
|Disclosure index of the Auditor’s|Internal Control Audit Report, Newspaper and website on which the announcement was|
|Report on Internal Control|disclosed: Securities Times, HK Ta Kung Pao, Cninfo (http:/www.cninfo.com.cn)|

Whether the CPAs firm issues anAuditor’s Report on Internal Control with non-standard opinion or not?
□ Yes√ No
Whether theAuditor’s Report on Internal Control from the CPAs firm is in consistent with the Self-appraisal Report from the Board
or not?
√ Yes□ No
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. VI. Establishment and execution of Accountability Mechanism for Material Mistakes in Disclosure of Annual Reports
On 29 April 2010, the 4th session of the 4th board of directors in 2010 deliberated and approved “Accountability Mechanism for Material Mistakes in Disclosure of Annual Reports”. Up to now, there existed no major mistakes of annual report information regulated in the above mechanism.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Section XI. Financial Report
I.Auditor’s report
|||
|-|-|
|Type of audit opinion|Standard unqualified audit opinion|
|Date for signing the auditor’s report|23 Mar. 2015|
|Name of the audit firm|BDO China Shu Lun CPA LLP|
|Name of the CPA.|Du Xiaoqiang, Jiang Gan|

Text of theAuditor’s Report
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 “the Company”) which comprise the balance sheet and the consolidated balance sheet as at 31 Dec. 2014, 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.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 2014 and theCompany’s operating results and cash flows for the year then ended.
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. 2014
Unit: RMB Yuan
||||
|-|-|-|
|Item|31 Dec. 2014|31 Dec. 2013|
|Current Assets:|||
|Monetary funds|474,549,403.56|201,666,231.22|
|Settlement reserves|||
|Intra-group lendings|||
|Financial assets measured at fair|||
|value of which changes are recorded in|||
|current profits and losses|||
|Derivative financial assets|||
|Notes receivable|345,827,854.88|362,998,502.84|
|Accounts receivable|837,978,587.68|867,805,009.95|
|Accounts paid in advance|181,932,527.24|207,761,823.07|
|Premiums receivable|||
|Reinsurance premiums receivable|||
|Receivable reinsurance contract|||
|reserves|||
|Interest receivable|||
|Dividend receivable|||
|Other accounts receivable|106,548,714.08|66,085,747.47|
|Financial assets purchased under|||
|agreements to resell|||
|Inventories|942,156,138.62|780,502,680.31|
|Assets held for sale|||
|Non-current assets due within 1 year|||
|Other current assets|8,212,679.56||
|Total current assets|2,897,205,905.62|2,486,819,994.86|
|Non-current assets:|||
|Loans by mandate and advances|||
|granted|||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Available-for-sale financial assets|113,558.00|4,976,178.84|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investment|246,747,332.67|7,606,994.20|
|Investing real estate|12,605,907.08|16,380,804.64|
|Fixed assets|2,926,710,908.66|2,964,629,037.82|
|Construction in progress|154,209,661.31|113,869,930.02|
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|129,264,164.34|117,213,820.33|
|R&D expense|12,556,242.88|12,554,942.88|
|Goodwill|11,547,305.29|11,547,305.29|
|Long-term deferred expenses|510,136.71|929,287.66|
|Deferred income tax assets|35,246,535.27|36,738,164.07|
|Other non-current assets|7,409,367.68||
|Total of non-current assets|3,536,921,119.89|3,286,446,465.75|
|Total assets|6,434,127,025.51|5,773,266,460.61|
|Current liabilities:|||
|Short-term borrowings|1,130,267,087.23|746,518,360.93|
|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|||
|current profits and losses|||
|Derivative financial liabilities|||
|Notes payable|68,436,123.39|7,208,770.58|
|Accounts payable|442,828,366.71|305,340,312.40|
|Accounts received in advance|23,232,010.74|41,644,176.60|
|Financial assets sold for repurchase|||
|Handling charges and commissions|||
|payable|||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Payroll payable|32,322,152.63|39,051,200.53|
|Tax payable|22,020,173.90|20,193,255.40|
|Interest payable|29,816,504.46|28,765,634.67|
|Dividend payable|170,913.00|9,732,961.09|
|Other accounts payable|21,260,151.32|25,645,628.13|
|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|2,189,103,483.38|1,224,100,300.33|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|794,912,384.37|793,330,251.65|
|Of which: preferred shares|||
|Perpetual bonds|||
|Long-term payables|10,506,735.99|461,462,266.00|
|Long-term payroll payables|||
|Specific payables|||
|Estimated liabilities|7,431,237.75|7,146,269.00|
|Deferred income|6,648,333.32|8,810,000.00|
|Deferred income tax liabilities|2,805,584.00|3,324,001.75|
|Other non-current liabilities|||
|Total non-current liabilities|822,304,275.43|1,274,072,788.40|
|Total liabilities|3,011,407,758.81|2,498,173,088.73|
|Owners’ equity:|||
|Share capital|505,425,000.00|505,425,000.00|
|Other equity instruments|||
|Of which: preferred shares|||
|Perpetual bonds|||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Capital reserves|256,822,373.42|256,822,373.42|
|Less: Treasury stock|||
|Other comprehensive income|169,714.39|627,641.83|
|Specific reserves|||
|Surplus reserves|187,280,095.40|179,240,134.80|
|Provisions for general risks|||
|Retained profits|863,066,727.26|787,821,828.63|
|Total equity attributable to owners of|||
||1,812,763,910.47|1,729,936,978.68|
|the Company|||
|Minority interests|1,609,955,356.23|1,545,156,393.20|
|Total owners’ equity|3,422,719,266.70|3,275,093,371.88|
|Total liabilities and owners’ equity|6,434,127,025.51|5,773,266,460.61|

 Legal representative: Tong Laiming Person-in-charge of the accounting work: Ji Xiangdong Person-in-charge of accounting firm: Yang Yinghui
2. Balance sheet of the parent company
Unit: RMB Yuan
||||
|-|-|-|
|Item|31 Dec. 2014|31 Dec. 2013|
|Current Assets:|||
|Monetary funds|10,063,979.96|45,291,203.37|
|Financial assets measured at fair|||
|value of which changes are recorded in|||
|current profits and losses|||
|Derivative financial assets|||
|Notes receivable|||
|Accounts receivable|42,393,540.95|51,991.20|
|Accounts paid in advance||73,114.00|
|Interest receivable|||
|Dividend receivable|||
|Other accounts receivable|1,437,567,917.18|1,689,379,067.73|
|Inventories|||
|Assets held for sale|||
|Non-current assets due within 1 year|||
|Other current assets|||
|Total current assets|1,490,025,438.09|1,734,795,376.30|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Non-current assets:|||
|Available-for-sale financial assets|||
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investment|1,518,626,016.33|1,280,107,442.14|
|Investing real estate|||
|Fixed assets|269,949.29|526,396.87|
|Construction in progress|||
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|523,980.01|614,177.89|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|||
|Other non-current assets|||
|Total of non-current assets|1,519,419,945.63|1,281,248,016.90|
|Total assets|3,009,445,383.72|3,016,043,393.20|
|Current liabilities:|||
|Short-term borrowings||120,000,000.00|
|Financial liabilities measured at fair|||
|value of which changes are recorded in|||
|current profits and losses|||
|Derivative financial liabilities|||
|Notes payable|||
|Accounts payable|42,393,540.96|51,991.19|
|Accounts received in advance|||
|Payroll payable||25,095.87|
|Tax payable|1,176,814.16|13,836,851.52|
|Interest payable|22,709,722.31|21,997,861.17|
|Dividend payable|170,913.00|170,913.00|
|Other accounts payable|1,265,692.77|213,718.67|
|Liabilities held for sale|||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Non-current liabilities due within 1|||
||418,750,000.00||
|year|||
|Other current liabilities|||
|Total current liabilities|486,466,683.20|156,296,431.42|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|794,912,384.37|793,330,251.65|
|Of which: preferred shares|||
|Perpetual bonds|||
|Long-term payables||418,750,000.00|
|Long-term payroll payables|||
|Specific payables|||
|Estimated liabilities|||
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|794,912,384.37|1,212,080,251.65|
|Total liabilities|1,281,379,067.57|1,368,376,683.07|
|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|179,240,134.80|
|Retained profits|784,829,738.75|712,470,093.33|
|Total owners’ equity|1,728,066,316.15|1,647,666,710.13|
|Total liabilities and owners’ equity|3,009,445,383.72|3,016,043,393.20|

 3. Consolidated income statement
Unit: RMB Yuan
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Item|2014|2013|
|I. Total operating revenues|3,552,698,716.17|4,006,109,812.66|
|Including: Sales income|3,552,698,716.17|4,006,109,812.66|
|Interest income|||
|Premium income|||
|Handling charge and commission|||
|income|||
|II. Total operating costs|3,410,828,486.83|3,940,105,765.06|
|Including: Cost of sales|2,970,740,412.17|3,437,981,452.16|
|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|14,596,194.98|22,782,408.90|
|Selling and distribution expenses|164,537,468.45|198,966,933.06|
|Administrative expenses|140,664,702.02|149,343,286.25|
|Financial expenses|126,985,102.16|113,521,836.70|
|Asset impairment loss|-6,695,392.95|17,509,847.99|
|Add: Gain/(loss) from change in fair|||
|value (“-” means loss)|||
|Gain/(loss) from investment (“-”|||
||12,486,831.40|657,513.24|
|means loss)|||
|Including: share of profits in|||
||7,690,138.47|530,727.73|
|associates and joint ventures|||
|Foreign exchange gains (“-” means|||
|loss)|||
|III. Business profit (“-” means loss)|154,357,060.74|66,661,560.84|
|Add: non-operating income|43,948,392.57|80,729,893.58|
|Including: Gains on disposal of|||
||25,556,368.05|51,476,397.59|
|non-current assets|||
|Less: non-operating expense|1,329,662.94|6,122,729.09|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Including: Losses on disposal of|||
||1,009,714.83|352,476.01|
|non-current assets|||
|IV. Total profit (“-” means loss)|196,975,790.37|141,268,725.33|
|Less: Income tax expense|47,717,250.82|43,552,505.99|
|V. Net profit (“-” means loss)|149,258,539.55|97,716,219.34|
|Net profit attributable to owners of|||
||83,284,859.23|79,060,852.74|
|the Company|||
|Minority shareholders’ income|65,973,680.32|18,655,366.60|
|VI. After-tax net amount of other|||
||-1,632,644.73|1,114,621.23|
|comprehensive incomes|||
|After-tax net amount of other|||
|comprehensive incomes attributable to|-457,927.44|467,754.15|
|owners of the Company|||
|(I) Other comprehensive incomes|||
|that will not be reclassified into gains and||169,714.39|
|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|||
|||169,714.39|
|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|298,039.76|
|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|-457,927.44|298,039.76|
|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|||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|5. Foreign-currency financia|l||
|statement translation difference|||
|6. Other|||
|After-tax net amount of othe|r||
|comprehensive incomes attributable to|-1,174,717.29|646,867.08|
|minority shareholders|||
|VII. Total comprehensive incomes|147,625,894.82|98,830,840.57|
|Attributable to owners of the|82,599,714.97||
|||79,528,606.88|
|Company|||
|Attributable to minority|65,026,179.85||
|||19,302,233.69|
|shareholders|||
|VIII. Earnings per share|||
|(I) Basic earnings per share|0.16|0.16|
|(II) Diluted earnings per share|0.16|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: Tong Laiming Person-in-charge of the accounting work: Ji Xiangdong Person-in-charge of accounting firm: Yang Yinghui
4. Income statement of the Company
Unit: RMB Yuan
||||
|-|-|-|
|Item|2014|2013|
|I. Total sales|288,258,240.65|223,295,320.08|
|Less: cost of sales|218,075,280.68|153,119,961.48|
|Business taxes and surcharges|4,186,523.39|4,324,338.53|
|Distribution expenses|||
|Administrative expenses|9,699,461.03|12,613,176.11|
|Financial costs|-17,690,231.39|-15,359,734.95|
|Impairment loss|||
|Add: gain/(loss) from change in fairvalue (“-” means loss)|||
|Gain/(loss) from investment (“-”means loss)|||
||7,068,374.19||
|Including: income form investmenton associates and joint ventures|||
||7,068,374.19||
|II. Business profit (“-” means loss)|81,055,581.13|68,597,578.91|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Add: non-operating income|23,852,512.83|50,221,175.80|
|Including: Gains on disposal of|||
|non-current assets|||
|Less: non-operating expense|870.00||
|Including: Losses on disposal of|||
|non-current assets|||
|III. Total profit (“-” means loss)|104,907,223.96|118,818,754.71|
|Less: Income tax expense|24,507,617.94|29,788,467.60|
|IV. Net profit (“-” means loss)|80,399,606.02|89,030,287.11|
|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|||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|6. Other|||
|VI. Total comprehensive incomes|80,399,606.02|89,030,287.11|
|VII. Earnings per share|||
|(I) Basic earnings per share|||
|(II) Diluted earnings per share|||

5. Consolidated cash flow statement
Unit: RMB Yuan
||||
|-|-|-|
|Item|2014|2013|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||3,292,918,326.94|3,016,408,289.23|
|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|115,495.24||
|Other cash received relating to|||
||53,112,411.40|135,588,630.53|
|operating activities|||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Subtotal of cash inflows from operating|||
||3,346,146,233.58|3,151,996,919.76|
|activities|||
|Cash paid for goods and services|2,378,278,547.25|1,692,116,197.47|
|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|212,913,710.51|216,059,855.35|
|Various taxes paid|145,880,960.62|286,319,001.23|
|Other cash payment relating to|||
||129,182,685.22|136,250,542.10|
|operating activities|||
|Subtotal of cash outflows from|||
||2,866,255,903.60|2,330,745,596.15|
|operating activities|||
|Net cash flows from operating activities|479,890,329.98|821,251,323.61|
|II. Cash flows from investing activities:|||
|Cash received from withdrawal of|||
||7,669,463.73||
|investments|||
|Cash received from return on|||
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|1,934,517.23|51,491,678.51|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other business units|||
|Other cash received relating to|||
|investing activities|||
|Subtotal of cash inflows from investing|||
||9,603,980.96|51,491,678.51|
|activities|||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long-term|171,488,456.29|152,265,166.93|
|assets|||
|Cash paid for investment|231,450,200.00|47,773,421.10|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|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|||
||402,938,656.29|200,038,588.03|
|investing activities|||
|Net cash flows from investing activities|-393,334,675.33|-148,546,909.52|
|III. Cash Flows from Financing|||
|Activities:|||
|Cash received from capital|||
|contributions|||
|Including: Cash received from|||
|minority shareholder investments by|||
|subsidiaries|||
|Cash received from borrowings|2,526,205,000.37|1,371,409,849.94|
|Cash received from issuance of|||
|bonds|||
|Other cash received relating to|||
||3,000,000.00|774,000.00|
|financing activities|||
|Subtotal of cash inflows from financing|||
||2,529,205,000.37|1,372,183,849.94|
|activities|||
|Repayment of borrowings|2,218,884,556.85|1,987,677,754.42|
|Cash paid for interest expenses and|||
||121,870,769.48|235,015,239.56|
|distribution of dividends or profit|||
|Including: dividends or profit paid|||
|||32,526,295.30|
|by subsidiaries to minority shareholders|||
|Other cash payments relating to|||
||361,300,780.56||
|financing activities|||
|Sub-total of cash outflows from|||
||2,702,056,106.89|2,222,692,993.98|
|financing activities|||
|Net cash flows from financing activities|-172,851,106.52|-850,509,144.04|
|IV. Effect of foreign exchange rate|||
||-704,711.69|-818,899.98|
|changes on cash and cash equivalents|||
|V. Net increase in cash and cash|||
||-87,000,163.56|-178,623,629.93|
|equivalents|||
|Add: Opening balance of cash and|||
||200,248,786.56|378,872,416.49|
|cash equivalents|||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|VI. Closing balance of cash and cash|||
||113,248,623.00|200,248,786.56|
|equivalents|||

6. Cash flow statement of the Company
Unit: RMB Yuan
||||
|-|-|-|
|Item|2014|2013|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||282,982,651.03|257,904,067.52|
|commodities and rendering of service|||
|Tax refunds received|||
|Other cash received relating to|||
||429,286,185.00|219,409,759.36|
|operating activities|||
|Subtotal of cash inflows from operating|||
||712,268,836.03|477,313,826.88|
|activities|||
|Cash paid for goods and services|212,806,528.66|187,728,908.92|
|Cash paid to and for employees|6,267,950.81|5,323,409.60|
|Various taxes paid|41,674,623.68|82,059,900.06|
|Other cash payment relating to|||
||61,951,789.20|224,691,068.00|
|operating activities|||
|Subtotal of cash outflows from|||
||322,700,892.35|499,803,286.58|
|operating activities|||
|Net cash flows from operating activities|389,567,943.68|-22,489,459.70|
|II. Cash flows from investing activities:|||
|Cash received from retraction of|||
|investments|||
|Cash received from return on|||
|||30,918,655.65|
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|18,300.00|40,680,000.00|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other business units|||
|Other cash received relating to|||
|investing activities|||
|Subtotal of cash inflows from investing|||
||18,300.00|71,598,655.65|
|activities|||
|Cash paid to acquire fixed assets,|27,656.00|390,972.00|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|intangible assets and other long-term|||
|assets|||
|Cash paid for investment|231,450,200.00|47,273,554.71|
|Net cash paid to acquire subsidiaries|||
|and other business units|||
|Other cash payments relating to|||
|investing activities|||
|Subtotal of cash outflows from|||
||231,477,856.00|47,664,526.71|
|investing activities|||
|Net cash flows from investing activities|-231,459,556.00|23,934,128.94|
|III. Cash Flows from Financing|||
|Activities:|||
|Cash received from capital|||
|contributions|||
|Cash received from borrowings|100,000,000.00|120,000,000.00|
|Cash received from issuance of|||
|bonds|||
|Other cash received relating to|||
|financing activities|||
|Subtotal of cash inflows from financing|||
||100,000,000.00|120,000,000.00|
|activities|||
|Repayment of borrowings|220,000,000.00|176,250,000.00|
|Cash paid for interest expenses and|||
||73,335,611.09|125,458,130.23|
|distribution of dividends or profit|||
|Other cash payments relating to|||
|financing activities|||
|Sub-total of cash outflows from|||
||293,335,611.09|301,708,130.23|
|financing activities|||
|Net cash flows from financing activities|-193,335,611.09|-181,708,130.23|
|IV. Effect of foreign exchange rate|||
|changes on cash and cash equivalents|||
|V. Net increase in cash and cash|||
||-35,227,223.41|-180,263,460.99|
|equivalents|||
|Add: Opening balance of cash and|||
||45,291,203.37|225,554,664.36|
|cash equivalents|||
|VI. Closing balance of cash and cash|||
||10,063,979.96|45,291,203.37|
|equivalents|||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 7. Consolidated statement of changes inowners’ equity
2014
Unit: RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||2014|||||||||||||
||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|||||||||||1,545,1|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||||||||||||||

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

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||||
|-|-|-|-|-|-|-|-|
|(V) Specific||||||||
|reserve||||||||
|1. Withdrawn||||||||
|for the period||||||||
|2. Used in the||||||||
|period||||||||
|(VI) Other||||||||
||505,42|||||1,609,9|3,422,719,266.70|
|IV. Closing||256,822|169,714|187,280|863,066|||
||5,000.|||||55,356.||
|balance||,373.42|.39|,095.40|,727.26|||
||00|||||23||

 2013
Unit: RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||2013|||||||||||||
||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|||||||||||1,568,4|3,274,5|
||||||262,091||||170,337||768,206|||
|end of the|5,000.|||||||||||59,238.|19,039.|
||||||,190.27||||,106.09||,504.60|||
|previous year|00|||||||||||94|90|
|Add: change of|||||-159,88||159,887|||||||
|accounting policy|||||7.68||.68|||||||
|Correction of||||||||||||||
|errors in previous||||||||||||||
|periods||||||||||||||
|Business||||||||||||||
|mergers under the||||||||||||||
|same control||||||||||||||
|Other||||||||||||||
|II. Balance at the|505,42|||||||||||1,568,4|3,274,5|
||||||261,931||159,887||170,337||768,206|||
|beginning of the|5,000.|||||||||||59,238.|19,039.|
||||||,302.59||.68||,106.09||,504.60|||
|year|00|||||||||||94|90|
|III. Increase/||||||||||||||
|decrease in the|||||-5,108,9||467,754||8,903,0||19,615,|-23,302|574,331|
|period (“-” means|||||29.17||.15||28.71||324.03|,845.74|.98|
|decrease)||||||||||||||
|(I) Total|||||||467,754||||79,060,|19,302,|98,830,|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|comprehensive||.15||852.74|233.68|840.57|
|incomes|||||||
|(II) Capital|||||||
||-5,568,7||||-44,293|-49,862,|
|increased and|||||||
||77.21||||,822.79|600.00|
|reduced by owners|||||||
|1. Common|||||||
||||||-44,293|-44,293,|
|shares increased|||||||
||||||,822.79|822.79|
|by shareholders|||||||
|2. Capital|||||||
|increased by|||||||
|holders of other|||||||
|equity instruments|||||||
|3. Amounts|||||||
|of share-based|||||||
|payments|||||||
|recognized in|||||||
|owners’ equity|||||||
||-5,568,7|||||-5,568,7|
|4. Other|||||||
||77.21|||||77.21|
|(III) Profit|||8,903,0|-59,445,||-50,542,|
|distribution|||28.71|528.71||500.00|
|1.|||||||
||||8,903,0|-8,903,0|||
|Appropriations to|||||||
||||28.71|28.71|||
|surplus reserves|||||||
|2.|||||||
|Appropriations to|||||||
|general risk|||||||
|provisions|||||||
|3.|||||||
|Appropriations to||||-50,542,||-50,542,|
|owners (or||||500.00||500.00|
|shareholders)|||||||
|4. Other|||||||
|(IV) Internal|||||||
|carry-forward of|||||||
|owners’ equity|||||||
|1. New|||||||
|increase of capital|||||||
|(or share capital)|||||||
|from capital public|||||||
|reserves|||||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||||
|-|-|-|-|-|-|-|-|
|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||||||||
|||459,848||||1,688,7|2,148,5|
|(VI) Other||||||||
|||.04||||43.37|91.41|
||505,42|||||1,545,1|3,275,0|
|IV. Closing||256,822|627,641|179,240|787,821|||
||5,000.|||||56,393.|93,371.|
|balance||,373.42|.83|,134.80|,828.63|||
||00|||||20|88|

 8. Statement of changes inowners’ equity of the Company
2014
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||2014|||||||||||
|||Other equity instruments|||||Other|||||
|||||||Less:|||||Total|
|Item|Share||||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|

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

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
|(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|1,728,066,316.15|
|balance|000.00|82.00|95.40|,738.75||

 2013
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||2013|||||||||||
|||Other equity instruments|||||Other|||||
|||||||Less:|||||Total|
|Item|Share||||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||||170,337,1|682,885|1,609,178|
|end of the previous||||||||||||
||000.00||||82.00||||06.09|,334.93|,923.02|
|year||||||||||||
|Add: change of||||||||||||
|accounting policy||||||||||||
|Correction of||||||||||||
|errors in previous||||||||||||
|periods||||||||||||
|Other||||||||||||
|II. Balance at the|505,425,||||250,531,4||||170,337,1|682,885|1,609,178|
|beginning of the|000.00||||82.00||||06.09|,334.93|,923.02|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|year||||
|III. Increase/||||
|decrease in the|8,903,028|29,584,|38,487,78|
|period (“-” means|.71|758.40|7.11|
|decrease)||||
|(I) Total||||
|||89,030,|89,030,28|
|comprehensive||||
|||287.11|7.11|
|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|8,903,028|-59,445,|-50,542,5|
|distribution|.71|528.71|00.00|
|1.||||
||8,903,028|-8,903,0||
|Appropriations to||||
||.71|28.71||
|surplus reserves||||
|2.||||
|Appropriations to||-50,542,|-50,542,5|
|owners (or||500.00|00.00|
|shareholders)||||
|3. Other||||
|(IV) Internal||||
|carry-forward of||||
|owners’ equity||||
|1. New||||
|increase of capital||||
|(or share capital)||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
|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|179,240,1|712,470|1,647,666|
|balance|000.00|82.00|34.80|,093.33|,710.13|

 III. Company profiles
Foshan Huaxin Packing Co., Ltd. (hereinafter referred to as the Company) was promoted by Foshan Huaxin Development Co., Ltd., as a main sponsor, under approval ofPeople’s Government of Guangdong Province with YBH (1999) No. 297 document and Economic System Reform Committee of Guangdong Province with YTG (1999) No. 032 document, and jointly invested by seven shareholders such as Foshan Municipal Investment General Corporation, Foshan Xinhui Industrial Development Co., Ltd., China Packaging General Corporation, China Material Development& Investment General Corporation, Guangdong Technical Reforming& Investment Co., Ltd., China Chemistry& Light Industry General Corporation, and Foshan Light Industry Company by promotion with total share capital of RMB 290,000,000 at par value of RMB 1 per share. The Company is joint-stock company who was registered in Administration Bureau for Commerce& Industry of Guangdong Province on June 21, 1999. (Business License No. 40000000005147). In the year of 2000, the Company successfully placed domestically listed foreign shares (B shares) amounting to 149,500,000 by mean of private placing, which was listed in Shenzhen Stock Exchange for trade. After offering, theCompany’s total share capital was increased to RMB 439,500,000.00. In June 2007, the Company distributed dividends of 65,925,000 shares, thus, the total share capital was changed into RMB 505,425,000.00. The Company is mainly engaged in the paper making, paper package and printing industry.
As at 31 Dec. 2012, the Company accumulatively issued 505,425,000 shares in number and the registered capital stood at RMB 505,425,000. The Company mainly manufactures (operated by subsidiary companies under the Company) and sells packaging materials, and packaging products, materials for decoration and aluminum and plastic compound materials; sells and maintains package machinery; invests in industry in terms of package and printing. Main products include high-grade coated white paperboard, high-grade coated white board and color
packages printing products. TheCompany’s registered address is No. 18; Jihua 5th Road, Foshan, Guangdong,
and the office address of headquarter is 19/F, Jinghua Bldg., Jihua Rd., Foshan.
The parent company of the Company is Foshan Huaxin Development Co., Ltd., and the actual controller of the
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. China Paper Corporation and the Ultimate controller of the Company is China Chengtong Holding Group Co., Ltd.
For the details, please refer to the “Notes VIII. Changes of the consolidation scope” and “Notes IX. Equity among the other entities”. IV. 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 processes constantly operation ability with 12 months since the reporting period.
V. 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.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 5. Accounting process of business combinations under the same control and not under the same control 1. Business combination under the same control
The assets and liabilities that the combining party obtains in a business combination shall be measured on the basis of their carrying amount in the combined party on the combining date. Where the combined party adopts accounting polices different from the Company, the Company makes adjustments according to its own accounting policy on the combination date and recognizes the assets and liabilities according to the book values after the adjustments.
As for the balance between the carrying amount of the net assets obtained by the combining party and the carrying amount of the consideration paid by it (or the total par value of the shares issued), the additional paid-in capital shall be adjusted. If the additional paid-in capital is not sufficient to be offset, the retained earnings shall be adjusted.
The direct cost for the business combination of the combining party shall, including the expenses for audit, assessment and legal services, be recorded into the profits and losses at the current period.
The handling fees, commissions and other expenses for the issuance of equity securities for the business combination shall be credited against the surplus of equity securities; if the surplus is not sufficient, the retained earnings shall be offset.
2. Business combination not under the same control
The Company shall, on the acquisition date, measure the assets given and liabilities incurred or assumed by an enterprise for a business combination in light of their fair values, and shall record the balances between them and their carrying amounts into the profits and losses at the current period.
The Company shall distribute the combination costs on the acquisition date and determine the fair values of theacquiree’s identifiable assets, liabilities and contingent liabilities obtained by the Company.
The Company shall recognize the positive balance between the combination costs and the fair value of the identifiable net assets it obtains from the acquiree as business reputation. The Company shall record, upon recheck, the negative balance between the combination costs and the fair value of the identifiable net assets it obtains from the acquiree into the profit and loss of the current period.
As for the assets other than intangible assets acquired from the acquiree in a business combination (not limited to the assets which have been recognized by the acquiree), if the economic benefits brought by them are likely to flow into the enterprise and their fair values can be measured reliably, they shall be separately recognized and measured in light of their fair values. As for any intangible asset acquired in a combination, if the fair value can be measured reliably, it shall be separately recognized as an intangible asset and shall measured in light of its fair value. As for the liabilities other than contingent liabilities acquired from the acquiree, if the performance of the relevant obligations is likely to result in any out-flow of economic benefits from the enterprise, and their fair values can be measured reliably, they shall be separately recognized and measured in light of their fair values. As for the contingent liabilities of the acquiree obtained in a combination, if their fair values can be measured reliably, they shall be separately recognized as liabilities and shall be measured in light of their fair values.
As for the deductible temporary differences the Company obtains from the acquiree in a business combination which do not meet the recognition standards for deferred income tax assets, they shall not be recognized. If new or further information shows that the relevant situation has existed on the acquiring date and the economic benefits brought by the deductible temporary differences the acquirer obtains from the acquiree on the acquiring date can be realized, they shall be recognized into deferred income tax assets and the relevant goodwill shall be reduced. Where the goodwill is not sufficient to be offset, the difference shall be recognized into the profits and losses in the current period. In other circumstances than the above, where the deductible temporary differences are
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. recognized into deferred income tax assets on the acquiring date, they shall be recorded into the profits and losses in the current period.
In a business combination not under the same control, the intermediary fees (fees for audit, legal and evaluation& consulting services, etc.) and other relevant management expenses incurred on the acquirer for the business combination shall be recorded into current gains and losses when incurred. The trading expenses arising from theacquirer’s issuing equity securities or debt securities as the combination consideration shall be included in the initially recognized amount of the equity securities or debt securities.
6. Methods for preparing consolidated financial statements
1. Consolidation scope
The scope of consolidated financial statements shall be confirmed based on the control. All subsidiaries of the Company shall be included into the consolidated financial statement.
2. Consolidation process
The accounting policies and accounting period adopted by the subsidiaries that are included into the scope of consolidated financial statement consistent with those the Company adopts. If the accounting policies and accounting period adopted by a subsidiary are different from those adopted by the Company, necessary adjustments shall be made to the financial statements under the accounting policies and accounting period adopted by the Company. As for a subsidiary obtained in a business combination not under the same control, its financial statements shall be adjusted based on the fair value of its identifiable net assets on the acquisition date. The consolidated financial statements shall, on the basis of the financial statements of the Company and its subsidiaries, be prepared by the Company after the long term equity investments in the subsidiaries are adjusted through the equity method.
Consolidated financial statement shall be prepared by the parent company after the effects of the internal transactions between the Company and its subsidiaries and between its subsidiaries themselves on the consolidated balance sheets, consolidated income statement, consolidated cash flow and consolidated statement of change inowners’ equity are offset.
Minorityshareholders’ portions of equities and income in subsidiaries shall be separately stated respectively underowners’ equity in the consolidated balance sheet and net profit in the consolidated income statement. For the deficit of current period exceeding the share in the beginning ofowner’s equity, the balance shall offset against the minorityshareholder’s equity.
(1) Increasing the subsidiaries
During the reporting period, for the added subsidiary companies for business combination under the same control, shall adjust the beginning balance of the consolidated balance sheet, and shall involve the incomes, expenses and profits of the subsidiary companies incurred from the beginning of the current period to the end of reporting year into consolidated income statement; and shall include the cash flow of the subsidiary companies from the beginning of the current period to the reporting period into the consolidated cash flow statement. Meanwhile, relevant items in the statements shall be compared and adjusted with the reporting subject after the consolidation being regarded to have always existed in previous periods.
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
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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 not under the same control, shall not adjust the beginning balance of the consolidated balance sheet; and shall involve the incomes, expenses and profits of the subsidiary companies incurred from the acquisition date to the end of reporting year into the consolidated income statement; and shall include the cash flow from the acquisition date to the end of reporting period into the consolidated cash flow.
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) Disposing the subsidiaries
① General disposing method
During the reporting period, for the Company settling the subsidiary companies, the incomes, expenses and profits from the beginning to the settlement date shall be involved into the consolidated income statement; the consolidated cash flow statement shall include the cash flow from the beginning of the current period to the settlement date. Where the Company loses the control over a former subsidiary due to disposal of some equity investments or other reasons, the Company re-measures the remaining equity investments after the disposal according to the fair value on the date when the control ceases. The consideration obtained in the equity disposal, plus the fair value of the remaining equities, less theCompany’s share of net assets in the former subsidiary calculated from the acquisition date according to the former shareholding ratio, is recorded into the investment gains for the period when the control ceases. Other comprehensive incomes in relation to the equity investments in the former subsidiary are restated as investment gains for the period when the control ceases.
② 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:
i. These deals are at the same time or under the condition of considering the influence of each other to concluded; ii. These transactions only be as a whole can achieve a complete business result;
iii. The occurrence of a deal depends on at least one othertransactions；
iv. A deal alone is not economical, it is economical with other trading together.
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.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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 lose 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 Notes II (IV) 2. (4) “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 disposal of the subsidiaries of Notes II (IV) 2.(2)① “general disposing method”.
(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.
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
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. capital reserve.
2. Translation for foreign currency financial statements
On the balance sheet date, as for the overseas subsidiaries with recording currency which is foreign currency, the Company would adopt the following principles to translate the foreign currency financial statement:
(1) Balance sheet:
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 at the period-end:
Owners’ equities items should be translated as CNY according to the spot rate when occurr except for the “undistributed profits” and the “undistributed profits” should be reflected as the amount among the profits distribution statement after translation;
The difference between the translated assets and liabilities items and the total amount of theowners’equities items, should be reflected as the translated difference of the statement among the items of the “translated difference of the foreign currency statement”.
(2) Income statement:
All the items of the income statement should be translated and reflected as CNY according to the average amount of the spot rate at the year-begin and period-end. The difference of the foreign currency financial statement from the above translation should be individually listed under the items of theowners’ equities among the balance sheet.
When disposing an overseas business, the Company shall shift the balance, which is presented under the items of theowner’s equities in the balance sheet and arises from the translation of foreign currency financial statements related to this oversea business, into the disposal profits and losses of the current period. If the overseas business is disposed of partially, the Company shall calculate the balance arising from the translation of foreign currency statements of the part of disposal based on the disposal rate and shall shift them into the profits and losses of the current period.
10. Financial instruments
Financial instruments include financial assets and liabilities and equity instruments.
1. Categorization of financial instruments
The Management team shall divide the financial instruments pursuant to the purpose to acquire the said financial assets or undertake the financial liabilities: (1) the financial assets and liabilities which are measured at their fair values and of which the variation is included in the current profits and losses, including transactional financial assets and liabilities and the designated financial assets and liabilities which are measured at their fair values and of which the variation is included in the current profits and losses; (2) the investments which will be held to their maturity;(3) loans and the account receivables; (4) financial assets available for sale; and (5) other financial liabilities.
(1) The financial assets (financial liabilities) which are measured at their fair values and of which the variation is included in the current profits and losses
The initial amount of the financial assets and financial liabilities shall be recognized at fair value (excluding cash dividends that have been declared but not yet distributed or bond interests that have matured but not yet received) when they are acquired. The transaction expense thereof shall be directly recorded into the profits and losses of the current period.
The interests or cash dividends acquired, during the holding period, shall be recognized as investment income, and
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. at the end of reporting period, the change in the fair value shall be recorded into the profits and losses of the current period.
When financial assets and financial liabilities are disposed, the balance between fair value and initial amount shall be recognized as investment income, at the same time, the profits and losses arising from the change in the fair value of financial assets and financial liabilities shall be adjusted.
(2) Held-to-maturity investments
When held-to-maturity investments are acquired, its initial amount shall be recognized the sum between the fair value (excluding bond interests that have matured but not yet received) and the transaction expense thereof. During the holding period, interest income is recognized as investment income based on amortized cost and actual interest rate (where there is very small gap between actual interest rate and nominal rate of which interests income shall be measured at the nominal rate). The actual interest rate is determined upon acquisition and remains unchanged during the expected holding period or a shorter period for applicable.
When held-to-maturity investments are disposed, the difference between the acquired price and investment book value shall be recorded into the investment income.
(3) Accounts receivable
Thecreditor’s rights arising from selling goods or providing service by the Company and othercreditor’s rights to other enterprises held by the company that are not quoted in an active market, including accounts receivable, notes receivable, other receivables, long-term receivables, etc., the contract or agreement price should be taken as the initial recognition amount. If it has the nature of financing, it shall be recognized by present value.
Difference between the amount received and book value of the receivables shall be included into the profit or loss of the current period upon collection or disposal.
(4) Available-for-sale financial assets
When available-for-sale financial assets are acquired, its initial amount shall be recognized at the fair value (excluding cash dividends that have been declared but not yet distributed or bond interests that have matured but not yet received) plus transaction expense thereof.
The interests or cash dividends acquired, during the holding period, shall be recognized as investment income. At the end of reporting period, it shall be measured at the fair value and the change in fair value thereof shall be recorded into the capital reserves (Other Capital Reserves).
Difference between the amount received and the book value of the financial assets shall be recognized as investment gain or loss upon disposal. Meanwhile, the accumulated changes in fair value previously recognized in theowners’ equity are transferred into investment gain or loss.
(5) Other financial liabilities
Other financial liabilities shall be initially recognized at fair value plus transaction costs. The subsequent measurement shall be made by adopting amortized costs.
3. Recognition and measurement of transfer of financial assets
Where an enterprise has transferred nearly all of the risks and rewards relating to the ownership of the financial asset to the transferee, it shall stop recognizing the financial asset. If it retains nearly all of the risks and rewards relating to the ownership of the financial asset, it shall not stop recognizing the financial asset.
Substance over form philosophy should be adopted to determine whether the transfer of a financial asset can satisfy the conditions as described in these Standards for de-recognition of a financial asset. An enterprise shall differentiate the transfer of a financial asset into the entire transfer and the partial transfer of financial assets. If the transfer of an entire financial asset satisfies the conditions for stop recognition, the difference between the
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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. Where there is no active market for a financial assets and financial liabilities, the Company concerned shall adopt value appraisal techniques (include the prices adopted by the parties, who are familiar with the condition, in the latest market transaction upon their own free will, the current fair value obtained by referring to other financial instruments of the same essential nature, the cash flow capitalization method and the option pricing model, etc.) to determine its
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. fair value. As for the financial assets initially obtained or produced at source and the financial liabilities assumed, the fair value thereof shall be determined on the basis of the transaction price of the market.
6. Testing method of impairment and withdrawal method of provision for impairment on financial assets (excluding accounts receivable)
Except for financial assets which are measured at their fair values and of which the variation is included in the current profits and losses, the Company checks the book values of all other financial assets on the balance sheet date. If there is objective evidence proving that a financial asset is impaired, an impairment provision is made. (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. 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 equity instrument investment for which there is no quoted price in the active market and whose fair value cannot be reliably measured, or a derivative financial asset which is connected with the equity instrument and which must be settled by delivering the equity instrument, suffers from any impairment of the carrying amount of the equity instrument investment or the derivative financial asset, the Company should recognize the difference from the amount of which the current value of the future cash flow of the financial assets that lower than the book value as impairment-related losses and be recorded into the profits and losses of the current period. For the impairment losses from the assets should not be reversed within the accounting period thereafter.
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 currentperiod；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.
(2) Provision for impairment of held-to-maturity investments
Measurement for impairment loss of held-to-maturity investments shall be disposed in accordance with the measurement method for impairment loss of accounts receivable.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 11. Recognition criteria and withdrawal methods for bad debts provision of accounts receivable
(1) Bad debt provision for individually significant accounts receivable
|||
|-|-|
|Judgement basis or monetary standards of provision for bad|An account receivable exceeds 10 million, or an other account|
|debts of the individually significant accounts receivable|receivable exceeds five million|
||An impairment test shall be conducted on the account receivable,|
||and the difference of the expected future cash flow’s present|
||value less than its book value shall be withdrawn as the bad debt|
|Method of individual provision for bad debts of the individually|provision and recorded into current gains/losses. Where an|
|significant accounts receivable|impairment test is conducted on an account receivable and no|
||impairment occurs, the account receivable shall be included in an|
||account receivable group with similar credit risk and tested|
||again.|

(2) Accounts receivable which the bad debt provision is withdrawn by credit risk characteristics
|||
|-|-|
|Name of portfolios|Bad debt provision method|
|Certain accounts receivable groups divided by aging||
||Aging analysis method|
|characteristics||

In the groups, adopting aging analysis method to withdraw bad debt provision:
√ Applicable□ Inapplicable
||||
|-|-|-|
||Withdrawal proportion for accounts|Withdrawal proportion for other accounts|
|Age|||
||receivable|receivable|
|1-3 months|0.00%|0.00%|
|4-12 months|5.00%|5.00%|
|1-2 years|10.00%|10.00%|
|2-3 years|20.00%|20.00%|
|Over 3 years|50.00%|50.00%|

 In the groups, adopting balance percentage method to withdraw bad debt provision:
□ Applicable√ Inapplicable
In the groups, adopting other methods to withdraw bad debt provision:
□ Applicable√ Inapplicable
(3) Accounts receivable with an insignificant single amount but for which the bad debt provision is made individually
|||
|-|-|
||There is objective evidence proving that the account receivable|
||may have been impaired. For instance, the debtor is cancelled,|
|Reason of individually withdrawing bad debt provision:||
||bankrupt or dead and the account receivable still cannot be|
||recovered or the generated cash flow is seriously inadequate after|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
||the bankrupt’s estates or heritages are used for the debt|
||repayment.|
||Where there is objective evidence proving that an account|
||receivable may have been impaired, the account receivable shall|
|Withdrawal method for bad debt provision:|be separated from the relevant group and an independent|
||impairment test shall be conducted on the account receivable so|
||as to recognize the impairment loss.|

12. Inventory
1. Category
Inventory are classified as materials in transit, raw materials, revolving materials, merchandise inventory, goods in process, goods sent out, goods in outside processing and etc.
2. Pricing method for outgoing inventories
Adopting the weighted average method for pricing when outgoing inventories
3. Recognition of net realizable value and withdrawal of provision for falling price of inventory
At the end of every year, the Company shall make an overall checking to inventory, thereafter, the provision for falling price of inventory shall be measured according to its cost or its net realizable value, whichever is lower. Finished goods, merchandise inventories, and available for sale materials which are applied directly for sales of stock inventory, under normal producing process, to the amount after deducting the estimated sale expense and relevant taxes from the estimated sell price of the inventory, the net realizable value has been recognized. Material inventories which need to be processed, under normal producing process, to the amount after deducting the estimated cost of completion, estimated sale expense and relevant taxes from the estimated sale price of produced finished goods, the net realizable value has been recognized. The net realizable value of inventories held for the execution of a sales contract or labor contract shall be calculated on the basis of the contract price. If an enterprise holds more inventories than the quantities subscribed in the sales contract, the net realizable value of the excessive inventories shall be calculated on the basis of the general sales price.
Ordinarily the Company shall make provision for falling price of inventories on the ground of each item of inventories. For inventories with large quantity and relatively low unit prices, the provision for falling price of inventories shall be made on the ground of the categories of inventories. For the inventories related to the series of products manufactured and sold in the same area, and of which the final use or purpose is identical or similar thereto, and if it is difficult to measure them by separating them from other items, the provision for falling price of inventories shall be made on a combination basis.
If the factors causing any write-down of the inventories have disappeared, the amount of write-down shall be resumed and be reversed from the provision for the loss on decline in value of inventories that has been made. The reversed amount shall be included in the current profits and losses.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 4. Inventory system for inventories:
Inventory system: Perpetual inventory system
5. Amortization method of the low-value consumption goods and packing articles
(1) Adopting one-off amortization method for the low-value consumption goods
(2) Adopting one-off amortization method for the packaging articles
13. Divided as assets held for sale
Naught
14. Long-term equity investment
1. Judgment standard of joint control and significant influences
Joint control, refers to the control jointly owned according to the relevant agreement on an arrangement by the Group and the relevant activities of the arrangement should be decided only after the participants which share the control right make consensus. When the Company and other parties have joint control over an invested party and own the rights of the net assets of the invested party, the invested party is considered a joint venture of the Company.
The term "significant influence" means having the power to participate in the formulation of financial and operating policies of an enterprise, but not the power to control or jointly control the formulation of these policies together with other parties. Where the Company has significant influence over an invested party, the invested party is considered an associate of the Company.
2. Recognition of the initial investment cost
(1) Long-term equity investments acquired by enterprise merger
For the merger of enterprises under the same control, if the consideration of the Company is that it makes payment in cash, transfers non-cash assets, bear its debts or issuance of equity securities, the share of the book value of theowner’s equity of the merged enterprise of the ultimate control party among the consolidation financial statement, on the date of merger, is regarded as the initial cost of the long-term equity investment. For which could execute the control on the invested parties under the same control owning to the reasons such as adding the investment, on the date of merger, is regarded as the initial cost of the long-term equity investment according to the amount of the book value of the ultimate control party among the consolidation financial statement of the net assets of the consolidated parties enjoyed after the consolidation. The difference between the initial investment cost of the long-term equity investment on the date of merger and the sum of the book value of the long-term equity investment before reaching the combination and the book value of the new payment consideration of the shares further acquired on the date of merger, should be adjusted the premiums, and if the premiums of the share capital are not sufficient to be offset, the retained earnings shall be adjusted.
For the merger of enterprises not under the same control, the combination cost recognized on the acquisition date is the initial investment cost of the long-term equity investment. For which could execute the control on the
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. invested parties not under the same control owning to the reasons such as adding the investment, is regarded as the initial investment cost which changed to be measured by cost method according to the sum of the book value of the original held equity investment and the newly increased investment cost.
(2) Long-term equity investment gained by other methods
The initial cost of a long-term equity investment obtained by making payment in cash shall be the purchase cost which is actually paid.
The initial cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the fair value of the equity securities issued.
The initial cost of a long-term equity investment of an investor shall be the value (excluding cash dividends that have been declared but not yet distributed) stipulated in the investment contract or agreement except the unfair value stipulated in the contract or agreement.
As for a non-monetary assets transaction, under the premise that the transaction is commercial in nature and the fair value of the assets received or surrendered can be measured reliably, the initial cost of the fair value of the long-term equity investment received shall be recognized based on the fair value of the assets surrendered, unless there is any exact evidence showing that the fair value of the assets received is more reliable. Where any non-monetary assets transaction does not meet the conditions as prescribed in the above premises at the same time, the book value and relevant payable taxes of the assets surrendered shall be the initial cost of the long-term equity investment received.
The initial cost of a long-term equity investment obtained by debts restructuring shall be recognized based on the fair value.
3.Subsequent measurement and gain/loss recognition method
(1) Long-term equity investment measured by adopting cost method
The Company adopts cost method for measurement of the long-term equity investment of the subsidiaries. The return on investment at current period shall be recognized in accordance with the cash dividend or profit announced to distribute by the invested entity, except the announced but not distributed cash dividend or profit included in the actual payment or consideration upon gaining the investment.
(2) Long-term equity investment measured by adopting equity method
The Company adopts the equity method to measure the long-term equity investment of the associated enterprises and joint ventures. The long-term equity investment that does joint control or significant influences over the Company shall be measured by employing the equity method. If the initial cost of a long-term equity investment is more than the investing enterprise' attributable share of the fair value of the invested entity's identifiable net assets for the investment, the initial cost of the long-term equity investment may not be adjusted. If the initial cost of a long-term equity investment is less than the investing enterprise' attributable share of the fair value of the invested entity's identifiable net assets for the investment, the difference shall be included in the current profits and losses.
The Company should respectively recognize investment income and other comprehensive income according to the net gains and losses as well as the portion of other comprehensive income which should be enjoyed or be shared, and at the same time adjust the book value of the long-term equity investment; corresponding reduce the book value of the long-term equity investment according to profits which be declared to distribute by the investees or the portion of the calculation of cash dividends which should be enjoyed; for the other changes except for the net gains and losses, other comprehensive income and theowners’ equity except for the profits distribution of the investees, should adjust the book value of the long-term equity investment as well as include in the capital reserve. The investing enterprise shall, on the ground of the fair value of all identifiable assets of the invested entity when
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. it obtains the investment and according to the accounting polices as well as the accounting period of the Company, recognize the attributable share of the net profits and losses of the invested entity after it adjusts the net profits of the invested entity. When holding the investment, the Company shall measure on the basis of the amount of the net profit, other comprehensive income and otherowners’ equity changes which belongs to the investees in the consolidated financial statements if invested parties compiled consolidated financial statements.
For the transaction happened between the Company and associated enterprises as well as joint ventures, the portion of the unrealized gains and losses of the internal transaction, which belongs to the Company according to the calculation of the enjoyed proportion, should off set and recognized the investment gains and losses on the basis. But the losses of the unrealized internal transaction happened between the Company and the investees which belongs to the impairment losses of the assets, should be recognized with full amount. The assets launched or sold from the transactions between the Company and the associated enterprises as well as the joint ventures if could form into business, should be executed accounting disposal according to the relevant polices disclosed on the Notes III. (V) “Accounting disposal method of the enterprise merger under or not under the same control” and Notes III. (VI) “Compile method of the consolidation financial statement”.
The Company shall handle to the net losses of the invested enterprise recognized by it: (1) offset book value of long-term equity investment; (2) if the book value of long-term equity investment is insufficient to dilute, investment loss shall be recognized based on the book value of other long-term rights and interests (reminder: should clearly confirm the specific content and the recognition standard of the sort of long-term rights and interest) which substantially form the net investment made to the invested entity, to offset book value of long-term receivables items; and (3) through the above treatment, where the Company still has the obligation to undertake extra losses as per investment contracts or agreements, the obligation that is expected to undertake shall be recognized the project liabilities, and recorded into losses on investment of the current period.
(3) Disposal of long-term equity investment
For the disposal of long-term equity investment, the balance between the book value of the disposed equity and its actual payment gained shall be recorded into current profits and losses.
For the long-term equity investment measured by adopting equity method, when disposing the investment, the other comprehensive income originally recorded intoowners’ equity should adopt the same basis of the accounting disposal of the relevant assets or liabilities directly disposed by the investees according to the corresponding proportion. Theowners’ equity recognized owning to the changes of the otherowners’ equity except for the net gains and losses, other comprehensive income and the profits distribution of the investees, should be transferred into the current gains and losses according to the proportion except for the other comprehensive income from the changes of the net liabilities or net assets which be re-measured to set the defined benefit pension plans by the investees.
For those the Group lost the control of the investees by disposing part of the equity investment, the disposed remained equity should change to calculate according to the recognition and measurement standards of financial instrument, and difference between the fair value and book value on the date lose the control right should be included in the current gains and losses. For the other comprehensive income recognized from the original equity investment by adopting the equity method, should execute the accounting disposal by adopting the same basis of the accounting disposal of the relevant assets or liabilities directly disposed by the investees when terminate the equity method for measurement, while for theowners’ equity recognized owning to the changes of the otherowner’s equity except for the net gains and losses, other comprehensive income and the profits distribution of the investees, should be transferred into the current investment income with full amount when terminate adopting the equity method.
For those the Group lost the control of the investees by disposing part of the equity investment as well as the
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. remained equity after disposal could execute joint control or significant influences on the investees, should change to measure by equity method when compiling the individual financial statement and should adjust the measurement of the remained equity to equity method as adopted since the time acquired; if the remained equity after disposal could not execute joint control or significant influences on the investees, should change the accounting disposal according to the relevant regulations of the recognition and measurement standards of financial instrument, and its difference between the fair value and book value on the date lose the control right should be included in the current gains and losses.
For the disposed equity required from the enterprise merger owning to the reasons such as adding the investment, if the remained equity after disposal adopted the cost method or equity method for measurement, the other comprehensive income and the otherowners’ equity recognized by adopting the equity method for measuring the equity investment held before the acquisition date should be carried forward according to the proportion when compiling the individual financial statement; for the disposed remained equity which changed to execute the accounting disposal according to the recognition and measurement standards of financial instrument, the other comprehensive income and the otherowners’ equity should be carried forward in full amount.
15. Investment real estates
Measurement mode of investment real estates
Measurement of cost method
Depreciation or amortization method
As for investment real estates measured by employing the cost pattern, i.e. building used for rental, its depreciation policy consistent with that for fixed assets; while for land use right used for rental, its amortization policy consistent with that for intangible assets.
16. Fixed assets
(1) Recognized standard of fixed assets
The term "fixed assets" refers to the tangible assets that simultaneously possess the features as follows: they are held for the sake of producing commodities, rendering labor service, renting or business management; and their useful life is in excess of one fiscal year. No fixed asset may be recognized unless it simultaneously meets the conditions as follows: (1) The economic benefits pertinent to the fixed asset are likely to flow into the enterprise; (2) The cost of the fixed asset can be measured reliably.
(2) Depreciation method
||||||
|-|-|-|-|-|
||||Expected net salvage||
|Category of fixed assets|Method|Useful life||Annual deprecation|
||||value||
||Average method of||||
|Housing and building||30-40|5.00%|2.375-3.17|
||useful life||||
||Average method of||||
|Machinery equipments||10-25|5.00%|3.80-9.50|
||useful life||||
||Average method of||||
|Transportation vehicle||5|5.00%|19.00|
||useful life||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
||Average method of||||
|Other||5-10|5.00%|9.50-19.00|
||useful life||||

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

The Company shall, at the end of every year, check the useful life and the amortization method of the said intangible assets with uncertain service life.
After check, useful life and the amortization method of the said intangible assets remained the same as the previous valuation.
3. Judgment of intangible assets with uncertain service life
In accordance with composite factors such as contractual right or other statutory rights of intangible assets, situation of same industry, historical experiences and proof of professional, if it is unable to forecast the period
when the intangible asset can bring economic benefits to the enterprise, it shall be regarded as an intangible asset
with uncertain service life.
The Company shall, at the end of every year, check the useful life of the said intangible assets with uncertain
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. service life.
After check, useful life of the said intangible assets remained in uncertainty.
4. Withdrawal of impairment reserve of intangible assets
As for intangible assets with certain service life, where there is sign of impairment, the Company shall make an impairment test at the end of year.
As for intangible assets with uncertain service life, the Company shall make an impairment test at the end of every year.
The Company shall make impairment test to the intangible assets and estimate its recoverable amount. Where there is any evidence indicating a possible impairment of intangible assets, the Company shall, on the basis of single item intangible assets, estimate the recoverable amount. Where it is difficult to do so, it shall determine the recoverable amount of the asset group on the basis of the asset group to which the intangible assets belongs. The recoverable amount shall be determined in light of the higher one of the net amount of the fair value of the intangible assets minus the disposal expenses and the current value of the expected future cash flow of the intangible assets.
Where the recoverable amount of the intangible assets is lower than its carrying value, its carrying value shall be recorded down to the recoverable amount, and the reduced amount shall be recognized as impairment loss on intangible assets and recorded as the profit or loss for the current period. Simultaneously, a provision for the impairment of the intangible assets shall be made.
After the loss of intangible asset impairment has been recognized, the depreciation of the impaired intangible asset shall be adjusted accordingly in the future periods so as to amortize the post-adjustment carrying value of the intangible asset systematically (deducting the expected net residual value) within the residual service life of the intangible asset.
Once any loss of impairment of the intangible assets is recognized, it shall not be switched back in the future accounting periods.
(2) Accounting polices of internalR&D expenses
5. Standard for classifying research phase and development phase of theCompany’sR&D projects
Expense for theCompany’sR&D projects divided into research expenditure and development expenditure. The term “research” refers to the creative and planned investigation to acquire and understand new scientific or technological knowledge.
The term "development" refers to the application of research achievements and other knowledge to a certain plan or design, prior to the commercial production or use, so as to produce any new material, device or product, or substantially improved material, device and product.
6. Standard for capitalization of development expenditures
The development expenditures for its internal research and development projects of the Company may be capitalized when they satisfy the following conditions simultaneously:
(1) It is feasible technically to finish intangible assets for use or sale;
(2) It is intended to finish and use or sell the intangible assets;
(3) The usefulness of methods for intangible assets to generate economic benefits shall be proved, including being able to prove that there is a potential market for the products manufactured by applying the intangible assets or there is a potential market for the intangible assets itself or the intangible assets will be used internally;
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. (4) It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with the support of sufficient technologies, financial resources and other resources; and
(5) The development expenditures of the intangible assets can be reliably measured.
If development expendituredoesn’t satisfied the above listed conditions, then written into current gains& losses. While research expenditure written into current gains& losses when occurred.
22. Impairment of long-term assets
Inapplicable
23. Long-term deferred expenses
Long-term deferred expenses refer to general expenses with the apportioned period over one year that have occurred but attributable to the current and future periods.
1. Amortization method
Long-term deferred expense shall be amortized averagely within benefit period.
2. Amortization period
The amortization period of the long-term deferred expenses shall be decided by the benefit period.
24. Payroll
(1) Accounting treatment of short-term compensation
The short-term compensation actually happened during the accounting period when the active staff offering the service for the Company should be recognized as liabilities and is included in the current gains and losses or relevant assets cost.
The social insurance charges and housing fund the Company pays for the employees, and the labor union expenditure and personnel education fund that withdrawn according to the regulations, during the accounting period that the employees providing the service, should be calculated and recognized the corresponding payroll amount according to the stated withdrawal basic and proportion
If the employee services and benefits is non-monetary welfare could be reliable measured, should be calculated according to the fair value.
(2) Accounting treatment of the welfare after demission
(1) Setting drawing plan
The Company pays the basic endowment insurance and unemployment insurance for the employees according to the relevant regulations of the local government, and should be calculated the payable amount according to the cardinal number of payment and proportion stated by the local period during the employees providing the service for the Company, as well as should be recognized as liabilities and be included into the current gains and losses or the relevant assets cost.
Except for the basic endowment insurance, the Company also constructs the corporation pension plan according to the relevant polices of the national corporation pension system. The Company pays the fees/the pension plan to the local social security institution with certain proportion according to the payroll with the corresponding
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. expenses is included in the current gains and losses or the relevant asset cost.
(2) Defined benefit pension plans
The Company attributes the welfare obligations from the defined benefit pension plans to the period when the employees providing the service according to the formulation recognized by the estimated accumulative welfare unit methods and includes which in the current gains and losses or the relevant asset cost.
To recognize the deficits or surplus from which the current value of the obligations of the defined benefit pension plans minuses the fair value of the assets of the defined benefit pension plans as an item of net liabilities or net assets of the defined benefit pension plans. If there was surplus of the defined benefit pension plans, the Company should measure the net assets of the defined benefit pension plans of the lower one between the surplus and assets of the defined benefit pension plans.
All the obligations of the defined benefit pension plans, including the payment obligations within 12 months after the ending of the estimated annual report period of which the employees providing the services, should be discounted according to the market yield of the national debt which matches with the term and currency of the defined benefit pension plans on the balance sheet date or the high-quality corporation bond.
To include the service cost from the defined benefit pension plans and the net amount of the interests of the net liabilities or net assets from the defined benefit pension plans in the current gains and losses or the relevant assets cost; to include the changes from re-measuring the net liabilities or net assets of the defined benefit pension plans into other comprehensive income and would not be reserved to gains and losses of the follow-up accounting period.
When settling the defined benefit pension plans, the Company should recognize the gains or losses from the settlement according to the difference between the current value and the settlement price of the defined benefit pension plans recognized on the settlement date.
(3) Accounting treatment of the demission welfare
When the Company is unable to unilaterally withdraw the plan on the cancellation of labor relationship or the layoff proposal, or when recognizing the costs or expenses (the earlier one between the two) related to the reorganization of paying the demission welfare, should recognize the payroll liabilities from the demission welfare and include in the current gains and losses.
(4) Accounting treatment of the welfare of the long-term employees
Inapplicable
25. Estimated liabilities
When the Company involves with the lawsuits, debt guarantee, losses contracts and reorganization events, if the events possibly be needed for paying for the assets or providing service in the future with their amounts could be reliable measured, should be recognized as estimated liabilities.
If the Company sells or transfers assets, it should sign the repurchase agreements of sold products and transferred assets and determine whether the sold products satisfy revenue recognition according to articles of agreement. If sales of buyback agreements belong to financing transactions, the Company would not affirm sales revenue when delivering products or assets. Balance of buy-back prices greater than sales prices would be calculated the interests during back-buy period into financial costs.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 1. Recognition standard of estimated liabilities
The obligation pertinent to the Contingencies shall be recognized as estimated liabilities when the following conditions are satisfied simultaneously:
(1) The obligation is a current obligation of the company;
(2) It is likely to cause any economic benefit to flow out of the Company as a result of performance of the obligation;
(3) The amount of the obligation can be measured in a reliable way.
2. Measurement method of estimated liabilities
The estimated debts shall be initially measured in accordance with the best estimate of the necessary expenses for the performance of the current obligation.
To determine the best estimate, an enterprise shall take into full consideration of the risks, uncertainty, time value of money, and other factors pertinent to the Contingencies. If the time value of money is of great significance, the best estimate shall be determined after discounting the relevant future outflow of cash.
The best estimate shall be conducted in the light of the following situations:
If there is a sequent range for the necessary expenses and if all the outcomes within this range are equally likely to occur, the best estimate shall be determined in accordance with the middle estimate (average number of bound) within the range.
If there is not a sequent range for the necessary expenses, or although there is a sequent range for the necessary expenses but all possible outcomes are not the same within the scope, i.e. If the Contingencies concern a single item, best estimate shall be determined in the light of the most likely outcome; If the Contingencies concern two or more items, the best estimate should be calculated and determined in accordance with all possible outcomes and the relevant probabilities.
When all or some of the expenses necessary for the liquidation of an estimated debts of an enterprise is expected to be compensated by a third party, the compensation should be separately recognized as an asset only when it is virtually certain that the reimbursement will be obtained. The amount recognized for the reimbursement should not exceed the book value of the estimated debts.
26. Share-based payment
Inapplicable
27. Other financial instruments such as preferred shares and perpetual capital securities
Inapplicable
28. Revenue
1. Criteria for recognition time of revenue from sale of goods
(1) General principles of the reorganization and measurement of the revenue from sale of goods: The significant risks and rewards of ownership of the goods have been transferred to the buyer by the enterprise; The enterprise retains neither continuous management right that usually keeps relation with the ownership nor effective control over the sold goods; The relevant amount of revenue can be measured in a reliable way; The relevant economic benefits may flow into the enterprise; and the relevant costs incurred or to be incurred can be measured in a
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. reliable way.
(2) Recognition criteria of sales revenues and confirm time: confirmation methods of domestic sales revenue shall satisfy following conditions: products should be delivered according tocustomer’s requirements; amount of sales revenues is determined, received or respected to receive; sales slip should be invoiced; costs of sold products should be calculated; confirmation methods of export sales revenue shall satisfy following conditions: products should be produced according to export sales agreement signed with customers, received export declaration after qualified inspection and obtained bill of lading (waybill) after delivery by transport company; amount of sales revenues is determined, received or respected to receive; sales slip should be invoiced; costs of sold products should be calculated.
2. Recognition basis of revenue from transferring use rights of assets
The relevant economic benefits are likely to flow into the enterprise; and the amount of revenues can be measured in a reliable way. The revenue from abalienating the right to use assets shall be recognized in the light of the following methods:
(1) The amount of interest revenue should be measured and confirmed in accordance with the length of time for which the enterprise's cash is used by others and the actual interest rate; or
(2) The amount of royalty revenue should be measured and confirmed in accordance with the period and method of charging as stipulated in the relevant contract or agreement.
3. Recognition basis and method for the schedule of contracted project when recognizing the revenue from providing labour services and construction contract by percentage-of-completion method
If the Company can, on the date of the balance sheet, reliably estimate the outcome of a transaction concerning the labor services it provides, it shall recognize the revenue from providing services employing the percentage-of-completion method. Schedule of completion under the transaction concerning the providing of labor services shall be recognized in the light of the measurement of the work completed.
The Company shall ascertain the total revenue from the providing of labor services in accordance with the received or to-be-received price of the party that receives the labor services as stipulated in the contract or agreement, unless the received or to-be-received price as stipulated in the contract or agreement is unfair. The Company shall, on the date of the balance sheet, ascertain the current revenue from providing labor services in accordance with the amount of multiplying the total amount of revenues from providing labor services by the schedule of completion then deducting the accumulative revenues from the providing of labor services that have been recognized in the previous accounting periods. At the same time, the enterprise shall carry forward the current cost of labor services in accordance with the sum of multiplying the total amount of revenues arising from the providing of labor services by the schedule of completion and then deducting the accumulative revenues from the providing of labor services.
If the Company can not, on the date of the balance sheet, measure the result of a transaction concerning the providing of labor services in a reliable way, it shall be conducted in accordance with the following circumstances, respectively:
(1) If the cost of labor services incurred is expected to be compensated, the revenue from the providing of labor services shall be recognized in accordance with the amount of the cost of labor services incurred, and the cost of labor services shall be carried forward at the same amount;
(2) If the cost of labor services incurred is not expected to compensate, the cost incurred should be included in the current profits and losses, and no revenue from the providing of labor services may be recognized.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 29. Government subsidies
(1) Judgment basis and accounting treatment of government subsidies related to assets
1. The government subsidies pertinent to assets mean the government assets that are obtained by enterprises used for purchase or construction, or forming the long-term assets by other ways, including the fiscal appropriations for purchasing the fixed assets or intangible assets and the finance discounts of the special borrowings of the fixed assets etc.
2. The Company defines the government subsidies required for purchasing or construction or which formed as long-term assets by other methods as the government subsidies related to assets.
3. Asset-related governmental subsidies determined as deferred income should be calculated into current profits and losses within the asset service life.
(2) Judgment basis and accounting treatment of government subsidies related to profits
1. The government subsidies pertinent to income refer to all the government subsides except those pertinent to assets.
2. The Company defines the government subsidies required for purchasing or construction or which formed as long-term assets by other methods as the government subsidies related to assets while the remained are defined as government subsidies related to profits. If the government documents had not clearly established the subsidy objects, should adopt the following methods to divide the subsidies as the government subsidies related to profits and government subsidies related to assets: (1) if the government documents definitely confirm the special items aimed at by the subsidy, should be divided according to the relative proportion between the expenses amount which formed the assets and the expenses amount included in the expenditures of the estimation of the special item, and should re-exam the partition ratio on each balance sheet date as well as execute the alternation when it was necessary; (2) as for those with usage be generally stated and without indicating the special items in the government documents, should be regarded as government subsidies related to profits.
3. Government subsidies related to profits, as for those subsidies used for compensating the related future expenses or losses of the enterprise shall be recognized as deferred income and shall included in the current profits and losses during the period when the relevant expenses are recognized; those subsidies used for compensating the related expenses or losses incurred to the enterprise shall be directly included in the current profits and losses. 30. Deferred income tax assets/deferred income tax liabilities
The Company will recognize the deferred income tax liability arising from a deductible temporary difference to the extent of the amount of the taxable income which it is most likely to obtain in future term and which can be deducted from the deductible temporary difference.
As for deductible temporary difference of tax payable, is shall written in deferred income tax liability but for special particulars
The special situations not recognize the deferred income tax assets or deferred income tax liabilities including: initial recognition of goodwill; other transactions or events neither influence the accounting profits nor influence the taxable income (or deductible losses) when occur except for the enterprise merger.
When having the legal rights to settle by net amount and intends to settle by net amount or requiring the assets and liquidating the liabilities are happened at the same time, the income tax assets and liabilities of the current period
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. should be listed by net amount after offset.
The deferred income tax assets and liabilities of the Group should be listed as written-off net amount when having the legal rights of settling the current income tax assets and liabilities by net amount and the deferred income tax and liabilities is relevant to the income tax which be collected from the same taxpaying bodies by the same tax collection and administration department or is relevant to the different taxpaying bodies but during each period which there is significant reverse of the deferred income assets and liabilities in the future and among which the involved taxpaying bodies intend to settle the current income tax and liabilities by net amount or are at the same time acquire the asset as well as liquidate the liabilities.
31. Lease
(1) Accounting treatment of operating lease
(1) Rent charge paid for leasing assets shall be apportioned at the straight-line method and recorded into the current expense within the overall rent period including rent-free period. The initial direct expense paid by the Company related to lease transaction shall be included into the current expense.
Where the lessor undertakes the expenses related to the lease that should be undertaken by the Company, the Company shall deduct such expense from total rental, and such deducted rental fee shall be apportioned within the rent period and included into the current expense.
(2) Rent charge received for renting out assets shall be apportioned at the straight-line method and recognized as rental income within the overall rent period including rent-free period. The initial direct expense paid by the Company related to lease transaction shall be included into the current expense. In the event of the larger amount, it shall be capitalized and recoded into the current income by installment within the overall lease period.
Where the Company undertakes the expenses related to the lease that should be undertaken by the lessor, the Company shall deduct such expense from total rental income, and such deducted rental fee shall be apportioned within the rent period.
(2) Accounting treatments of financial lease
Assets acquired under finance leases: On the lease beginning date, the Company shall record the lower one of the fair value of the leased asset and the present value of the minimum lease payments on the lease beginning date as the entering value in an account, recognize the amount of the minimum lease payments as the entering value in an account of long-term account payable, and treat the balance between the recorded amount of the leased asset and the long-term account payable as unrecognized financing charges.
32. Changes in main accounting policies and estimates
(1) Change of accounting policies
√ Applicable□ Inapplicable
||||
|-|-|-|
|Content and reason|Vetting process|Notes|
|Executed the criterion revised in 2014 and|||
|newly issued by Ministry of Finance|||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||
|-|
|The Company had executed the following|
|new and revised ASBE issued by Ministry|
|of Finance in 2014:|
|ASBE-Basic Standard (revised),|
|No. 2 of ASBE-Long-term Equity|
|Investment (revised),|
|No. 9 of ASBE-Employee Compensation|
|(revised),|
|No. 30 of ASBE-Presentation of Financial|
|Statement (revised),|
|No. 33 of ASBE-Consolidation Financial|
|Statement (revised),|
|No. 37 of ASBE-Presentation of Financial|
|Instruments (revised),|
|No. 39 of ASBE-Measurement of Fair|
|Value|
|No. 40 of ASBE-Joint Venture|
|Arrangement|
|No. 41 of ASBE-Disclosure of the Equity|
|among Other Entities|

Main influences of executing the above ASBE of the Company were as follows:
1. Executing the No. 2 of ASBE-Long-term Equity Investment (revised)
The Company sorted out the investment which had no jointly control or significant influences on the investeees and had no quoted price in the active market as well as its fair value could not be reliable measured to available-for-sale financial assets for measurement and executed the retroactive adjustment.
The Company according to the No. 30 of ASBE-Presentation of Financial Statement (revised)
② Main influences of the above retroactive adjustment on the financial statement of the reporting period and the last period were as follows:
|||||
|-|-|-|-|
|Item|1 Jan. 2013|Adjusted amount|1 Jan. 2013|
|Avaiable-for-sale financialassets|3,400,433.40|113,558.00|3,513,991.4|
|Long-term equityinvestment|6,785,408.47|-113,558.00|6,671,850.47|

|||||
|-|-|-|-|
|Item|31 Dec. 2013|Adjusted amount|31 Dec. 2013|
|Avaiable-for-sale financialassets|4,862,620.84|113,558.00|4,976,178.84|
|Long-term equityinvestment|7,720,552.20|-113,558.00|7,606,994.20|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|Item|31 Dec. 2014|Adjusted amount|31 Dec. 2013|
|Avaiable-for-sale financialassets||113,558.00|113,558.00|
|Long-term equityinvestment|246,860,890.67|-113,558.00|246,747,332.67|

(2) Change of main accounting estimates
□ Applicable√ Inapplicable
VI. Taxation
1. Main taxes and tax rate
||||
|-|-|-|
|Category of taxes|Tax base|Tax rate|
||The measurement of output tax was based||
||on sales of goods and taxable labor income||
|VAT|measured by regulations of tax law, while|17%|
||the difference of excluding current||
||deductible tax amount is VAT||
|Business tax|Taxable operating income|5%|
||Taxed at actual business tax, VAT and||
|Urban maintenance and construction tax||7%|
||consumption tax||
|Enterprise income tax|Amount of taxable income|25%|

Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
|||
|-|-|
|Name|Income tax rate|
|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%|
|Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd.|15%|
|Zhuhai Jinji Chemicals Co., Ltd.|15%|

2. Tax preference
1. According to business income tax rate of sub-subsidiary Pearl River Color Printing Co., Ltd. of Chancheng District, Foshan as at7% of total revenue, income tax rate remained25%.
2. According to the Circular on issuing the First Name List of Hi-tech Enterprise through the review in Guangdong Province for Y2012 (YKGZi (2013) Document No. 27) jointly issued by Science& Technology Department of Guangdong Province, Finance Department of Guangdong Province, National Tax Bureau of Guangdong Province and Local Tax Bureau of Guangdong Province, theCompany’s shareholding subsidiary company Zhuhai S.E.Z Hongta Renheng Paper Co., Ltd. passed First Batch of Hi-tech Enterprise in Guangdong
Province for Y2012, and gained Certificate for Hi-tech Enterprise (Certificate No.: GR2012440000283, with three
years of validity). So the subsidiary can enjoy the relevant tax preference for Hi-tech enterprise since Y2012
(include Y2012) for three years, whose CIT rate was15%.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 3. 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.
VII. 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|283,310.72|246,013.17|
|Bank deposits|110,640,137.90|197,521,218.12|
|Other monetary funds|363,625,954.94|3,898,999.93|
|Total|474,549,403.56|201,666,231.22|

 Other notes
List of the monetary capital limited by being mortgaged, pledged or frozen, deposited overseas and limited when making capital collection was as follows:
|||
|-|-|
|Item|Closing balance|
|Cash deposit of bank acceptance bill|5,614,583.26|
|The L/C deposit|115,119,272.90|
|The L/G L/G|91,331,459.72|
|Other monetary funds used to guarantee|149,235,464.68|
|Total|361,300,780.56|

2. Derivative financial assets
□ Applicable√ Inapplicable
3. Notes receivable
(1) Notes receivable listed by category
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Bank acceptance bill|345,827,854.88|362,998,502.84|
|Total|345,827,854.88|362,998,502.84|

 (2) Notes receivable pledged by the Company at the period-end
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|
|Bank acceptance bill|110,024,322.52|
|Total|110,024,322.52|

 (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|760,124,116.27||
|Total|760,124,116.27||

4. Accounts receivable
(1) Accounts receivable disclosed 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||||0.62%|||||||
|withdrawn bad debt|||||||||||
||838,669,||5,237,91||833,431,6|870,040||6,105,130||863,934,95|
|provision according||93.23%|||||93.87%||0.70%||
||616.29||9.48||96.81|,090.27||.79||9.48|
|to credit risks|||||||||||
|characteristics|||||||||||
|Accounts receivable||||92.54%|||||||
|with insignificant|||||||||||
||60,931,3||56,384,4||4,546,890|56,831,||52,961,15||3,870,050.4|
|single amount for||6.77%|||||6.13%||93.19%||
||75.72||84.85||.87|203.11||2.64||7|
|which bad debt|||||||||||
|provision separately|||||||||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|accrued|||||||||||
||899,600,||61,622,4||837,978,587.68|926,871||59,066,28||867,805,009.95|
|Total||100.00%||6.85%|||100.00%||6.37%||
||992.01||04.33|||,293.38||3.43|||

 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 accrue bad debt provision:
√Applicable□ Inapplicable
Unit: RMB Yuan
|||||
|-|-|-|-|
||Closing balance|||
|Aging||||
||Accounts receivable|Bad debt provision|Withdrawal proportion|
|Subitem within 1 year||||
|1-3 months|775,717,973.00||0.00%|
|4-12 months|44,319,708.71|2,215,433.48|5.00%|
|Subtotal within 1 year|820,037,681.71|2,215,433.48||
|1 to 2 years|15,349,540.89|1,534,954.10|10.00%|
|2 to 3 years|512,216.52|102,443.31|20.00%|
|Over 3 years|2,770,177.17|1,385,088.59|50.00%|
|Total|838,669,616.29|5,237,919.48||

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 accrue bad debt provision:
(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 RMB 6,307,649.74; the amount of the reversed or collected part during the reporting period was of RMB 3,751,528.85.
Of which the significant amount of the reversed or collected part during the reporting period:
Unit: RMB Yuan
||||
|-|-|-|
|Name of the units|Reversed or collected amount|Method|
|Foshan Jiahe Paper Trading Co., Ltd.|1,500,000.00|Mutual negotiation|
|Dongguan Hong’an Paper Packaging Co.,|||
||788,588.35|Mutual negotiation|
|Ltd.|||
|Foshan, Shunde District Guanhui Trading|||
||200,584.58|Mutual negotiation|
|Co., Ltd.|||
|Jiangsu Wangda Paper Packaging Co., Ltd.|180,066.92|Mutual negotiation|
|Dongguan Zhongbo Color Printing Arts &|172,631.54|Mutual negotiation|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Crafts Co., Ltd.|||
|Total|2,841,871.39|--|

(3) Actual write-off accounts receivable during the reporting period
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|
|Naught||

Of which the significant actual write-off accounts receivable:
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||Whether occurred|
|Name of the units|Nature|Amount|Reason|Process|from the related|
||||||transactions|

 Notes of the write-off the accounts receivable:
Naught.
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
||||
|-|-|-|
|Name of units|||
||Accounts receivable|Proportion of the totalyear end balance of theaccounts receivable (%)|
|No. 1|108,226,167.66|12.03|
|No. 2|33,315,952.71|3.70|
|No. 3|22,141,557.56|2.46|
|No. 4|20,860,238.63|2.32|
|No. 5|19,862,891.02|2.21|
|Total|204,406,807.58|20.51|

5. Prepayment
(1) List by aging analysis:
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Aging|||||
||Amount|Proportion|Amount|Proportion|
|Within 1 year|169,346,566.63|93.08%|205,885,132.55|99.09%|
|1 to 2 years|12,302,740.61|6.76%|1,227,426.40|0.59%|
|2 to 3 years|71,240.00|0.04%|345,584.00|0.17%|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|Over 3 years|211,980.00|0.12%|303,680.12|0.15%|
|Total|181,932,527.24|--|207,761,823.07|--|

Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
Situation of top 5 prepayments
|||||
|-|-|-|-|
|Name of the units|Relationship|Amount|Aging|
|No. 1|Non-related party|39,181,180.19|Within 1 year|
|No. 2|Non-related party|30,000,000.00|Within 1 year|
|No. 3|Non-related party|26,063,138.67|Within 1 year of RMB22,195,515.07, and ofRMB 3,867,623.60 over 1year|
|No. 4|Non-related party|15,981,094.89|Within 1 year|
|No. 5|Non-related party|11,612,211.87|Within 1 year|
|Total||122,837,625.62||

Other notes:
6. Other receivables
(1) Other accounts receivable disclosed by categories:
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Book balance||Bad debt provision||Book|Book balance||Bad debt provision|||
|||||Withdra|||||||
|Category|||||||||||
|||Proportio||wal|||Proportio||Withdrawal|Book value|
||Amount||Amount||value|Amount||Amount|||
|||n||proportio|||n||proportion||
|||||n|||||||
|Other accounts|||||0.00||||||
|receivable that is|||||||||||
|individually|17,874,4||17,874,4|||18,103,||18,103,51|||
|||13.68%||100.00%|||20.05%||100.00%|0.00|
|significant and|14.64||14.64|||516.48||6.48|||
|provisions for bad|||||||||||
|debts individually|||||||||||
|Other accounts|107,239,|82.09%|790,904.|0.74%|106,448,7|67,023,|74.22%|1,037,355|1.55%|65,985,747.|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|receivable withdrawn|618.76||68||14.08|103.35||.88||47|
|bad debt provision|||||||||||
|according to credit|||||||||||
|risks characteristics|||||||||||
|Other accounts||||98.19%|||||||
|receivable that is|||||||||||
|individually|5,529,85||5,429,85||100,000.0|5,178,2||5,078,290|||
|||4.23%|||||5.73%||98.00%|100,000.00|
|insignificant and|1.77||1.77||0|90.54||.54|||
|provisions for bad|||||||||||
|debts individually|||||||||||
||130,643,||24,095,1|18.44%|106,548,714.08|90,304,||24,219,16||66,085,747.47|
|Total||100.00%|||||100.00%||26.82%||
||885.17||71.09|||910.37||2.90|||

 Other closing accounts receivable that is individually significant and provisions for bad debts individually.
√Applicable□Inapplicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Content of other accounts|Closing balance||||
|receivable (classified by|Other accountsreceivable||||
|||Provision for bad debts|Withdrawal proportion|Reason|
|unit)|||||
|Zhuhai Yidecheng||||Accounts of 2013 with|
||6,000,000.00|6,000,000.00|100.00%||
|Industrial Co., Ltd||||minimal recovery|
|||||With financial difficulty|
|Hong Kong Hang Fung|||||
||11,874,414.64|11,874,414.64|100.00%||
|Holdings Limited||||that difficult to recover|
|Total|17,874,414.64|17,874,414.64|--|--|

In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
√Applicable□ Inapplicable
Unit: RMB Yuan
|||||
|-|-|-|-|
||Closing balance|||
|Aging||||
||Other accounts receivable|Bad debt provision|Withdrawal proportion|
|Subitem within 1 year||||
|1-3 months|102,859,891.16|||
|4-12 months|1,005,810.15|50,290.51|5.00%|
|Subtotal within 1 year|103,865,701.31|50,290.51||
|1 to 2 years|1,404,388.08|140,438.81|10.00%|
|2 to 3 years|1,281,964.39|256,392.87|20.00%|
|Over 3 years|687,564.98|343,782.49|50.00%|
|Total|107,239,618.76|790,904.68||

Notes of the basis of recognizing the group:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.□ Applicable√ Inapplicable
In the groups, other accounts receivable adopting other methods to accrue 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 RMB 358,621.20; the amount of the reversed or collected part during the reporting period was of RMB 2482,613.01.
Of which the significant amount of the reversed or collected part during the reporting period was of RMB 000:
Unit: RMB Yuan
||||
|-|-|-|
|Name of units|Reversed or collected amount|Method|
|Hong Kong Lifengnian Co., Ltd.|||
||100,000.00||
|(Huashan)|||
|Hunan Yuanjiang Tuan Hill Paper Making|||
||65,351.67||
|Factory|||
|Foshan Jinfuyuan Property Agency Co.,|||
||7,500.00||
|Ltd.|||
|Taishan Mingxin Hardware Plastic|||
||5,978.95||
|Products Co., Ltd.|||
|Foshan Light Industry Co., Ltd.|5,440.00||
|Total|184,270.62|--|

(3) The actual write-off other accounts receivable
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|
|Naught||

Of which the significant write-off other accounts receivable:
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||Whether occurred|
|Name of units|Nature|Amount|Reason|Process|from the related|
||||||transactions|

 Notes of write-off other accounts receivable:
(4) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||||Proportion of the|Closing balance of|
|Name of units|Nature|Closing balance|Aging|total year end|bad debt provision|
|||||balance of the||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||||accounts receivable||
|No. 1||64,499,000.00|Within 3 months|49.37%||
|No. 2||25,887,209.79|Within 3 months|19.82%||
|No. 3||11,874,414.64|Over 3 years|9.09%|11,874,414.64|
|No. 4||6,000,000.00|Over 3 years|4.59%|6,000,000.00|
|No. 5||2,000,000.00|Over 3 years|1.53%|2,000,000.00|
|Total|--|110,260,624.43|--||19,874,414.64|

 7. 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|409,604,688.10|7,809,558.43|401,795,129.67|267,103,600.50|7,791,933.32|259,311,667.18|
|Goods in process|110,950,017.57||110,950,017.57|59,834,965.17||59,834,965.17|
|Inventory goods|405,756,387.77|12,476,310.64|393,280,077.13|448,948,918.51|21,921,444.43|427,027,474.08|
|Turnover|||||||
||36,130,914.25||36,130,914.25|34,328,573.88||34,328,573.88|
|materials|||||||
|Total|962,442,007.69|20,285,869.07|942,156,138.62|810,216,058.06|29,713,377.75|780,502,680.31|

 (2) Falling price reserves of inventory
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||Increased amount||Decreased amount|||
|Item|Opening balance|||Reverse or||Closing balance|
|||Withdrawal|Other||Other||
|||||write-off|||
|Raw materials|7,791,933.32|17,625.11||||7,809,558.43|
|Inventory goods|21,921,444.43|||9,445,133.79||12,476,310.64|
|Total|29,713,377.75|17,625.11||9,445,133.79||20,285,869.07|

 8. Other current assets
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Pending deduct VAT on purchase|8,212,679.56||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
|Total|8,212,679.56|

Other notes:
9. 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|||||||
||113,558.00||113,558.00|4,976,178.84||4,976,178.84|
|instruments|||||||
|Measured by fair value||||4,862,620.84||4,862,620.84|
|Measured by cost|113,558.00||113,558.00|113,558.00||113,558.00|
|Total|113,558.00||113,558.00|4,976,178.84||4,976,178.84|

 (2) Available-for-sale financial assets measured by cost at the period-end
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Book balance||||Impairment provision||||Shareholdi|Cash|
||||||||||ng|bonus of|
|Investee|Period-beg||||Period-beg||||proportion|the|
|||Increase|Decrease|Period-end||Increase|Decrease|Period-end|||
||in||||in||||among the|reporting|
||||||||||investees|period|
|China|||||||||||
|Guangfa|||||||||||
||113,558.00|||113,558.00|||||0.00%||
|Bank Co.,|||||||||||
|Ltd.|||||||||||
|Total|113,558.00|||113,558.00|||||--||

(3) Other notes of available-for-sale financial assets
Available-for-sale equity instruments is shares subject to trading moratorium amounting to 385,537 of Zhuhai Port Co., Ltd. held by Zhuhai S.E.Z Hongta Renheng Paper Co., Ltd. after completing share merger reform. Since the end of 2007, the said shares had been transferred to circulating shares. Donate shares of 308,429 by Zhuhai Port Co., Ltd. in 2012; on 8 Mar. 2013, Zhuhai Port Co., Ltd. allotted shares, for every 10 shares with three shares. Zhuhai S.E.Z Hongta Renheng Paper Co., Ltd held 693,966 shares of the Company and can be allotted 208,190
shares, after the allotment, the amount of the shares are 902,156shares， which be sold with full amount after
approved by the Board of Directors of the Company on 27 Nov. 2014.
The subsidiary Foshan Chengtong Paper Co., Ltd. held0.0004248% equity of China Guangfa Bank Co., Ltd. of
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. RMB 113,558.00, which had no joint control or significant influences and had no quoted price in the active market as well as could not be reliable measured. In 2014, the Company sorted out the investment which had no joint control or significant influence and without a quoted price in the active market which could not be reliable measured from the long-term equity investment to as available-for-sale financial assets for measurement and executed the retroactive adjustment according to No. 2 of ASBE-Long-term Equity Investment (revised).
10. Long-term equity investment
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase/decrease||||||||||
||||||||||||Closing|
|||||Gains and|Adjustme|||||||
||||||||Cash|Withdraw|||balance|
|||Additiona||losses|nt of|||||||
||Opening||Reduced|||Changes|bonus or|al of||Closing|of|
|Investees||||||||||||
|||l||recognize|other|||||||
||balance||investmen|||of other|profits|impairme|Other|balance|impairme|
|||investmen||d under|comprehe|||||||
||||t|||equity|announce|nt|||nt|
|||t||the equity|nsive|||||||
||||||||d to issue|provision|||provision|
|||||method|income|||||||
|I. Joint ventures||||||||||||
|II. Associated enterprises||||||||||||
|Guangdo||||||||||||
|ng||||||||||||
|Chengton|7,606,994|||621,764.2||||||8,228,758||
|g|.20|||8||||||.48||
|Logistics||||||||||||
|Co., Ltd.||||||||||||
|Chengton||||||||||||
|||231,450,2||7,068,374||||||238,518,5||
|g Finance||||||||||||
|||00.00||.19||||||74.19||
|Co., Ltd.||||||||||||
||7,606,994|231,450,2||7,690,138||||||246,747,3||
|Subtotal||||||||||||
||.20|00.00||.47||||||32.67||
||7,606,994|231,450,2||7,690,138||||||246,747,3||
|Total||||||||||||
||.20|00.00||.47||||||32.67||

Other notes
Changes of the shareholding proportion of the long-term equity investment:
(1) 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 asstes reduction[(Singapore) Renheng Industry Co., Ltd. (occupied shares25%) withdrawn the equity of Guangdong Chengtong Logistics Co.,Ltd.]. Thus, the shareholding proportion of Guangdong Chengtong Logsistics Co., Ltd. by the subsidiary of the Company Zhuhai S.E.Z.Hongta Renheng Paper Co., Ltd. raised 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 Purchasing
20% Equity of Chengtong Finance Co., Ltd. held by China Project Ltd in 2013, of which the company had signed
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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 Finance Co., Ltd. had completed the shareholder alternation registration on 23 Jun. 2014. Thus the Company held20% equity of Chengtong Finance Co., Ltd. since Jul. 2014 and be measured by equity method.
11. Investment property
(1) Investment property calculated by cost measurement mode
√ Applicable□ Inapplicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Houses and buildings|Land use right|construction in progress|Total|
|1. Opening balance|24,340,076.58|||24,340,076.58|
|3. Decreased|||||
||3,895,428.56|||3,895,428.56|
|amount of the period|||||
|(1) Disposal|3,895,428.56|||3,895,428.56|
|4. Closing balance|20,444,648.02|||20,444,648.02|
|1. Opening balance|7,959,271.94|||7,959,271.94|
|2. Increase amount|||||
||712,839.18|||712,839.18|
|of the period|||||
|(1) Withdrawal or|||||
||712,839.18|||712,839.18|
|amortization|||||
|3. Decreased|||||
||833,370.18|||833,370.18|
|amount of the period|||||
|(1) Disposal|833,370.18|||833,370.18|
|4. Closing balance|7,838,740.94|||7,838,740.94|
|1. Book value at the||||12,605,907.08|
||12,605,907.08||||
|period-end|||||
|2. Book value at the||||16,380,804.64|
||16,380,804.64||||
|period-begin|||||

(1) Investment property calculated by fair value measurement mode
□ Applicable√ Inapplicable
12. Fixed assets
(1) List of fixed assets
Unit: RMB Yuan
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
||Houses and|Machinery|Electronic|Transportation|||
|Item|||||Other|Total|
||buildings|equipment|equipment|equipment|||
||1,248,435,491.|3,319,791,023.|||||
|1. Opening balance||||64,375,913.16|121,949,294.83|4,754,551,723.39|
||78|62|||||
|2. Increased amount of|||||||
||27,855,117.55|73,442,348.39||4,045,614.08|10,737,479.92|116,080,559.94|
|the period|||||||
|(1) Purchase|133,119.07|22,292,738.78||4,045,614.08|6,193,829.11|32,665,301.04|
|(2) Transfer of project|||||||
||27,721,998.48|51,149,609.61|||4,543,650.81|83,415,258.90|
|under construction|||||||
|3. Decreased amount of|||||||
|||4,264,212.00||6,949,300.35|462,044.72|11,675,557.07|
|the period|||||||
|(1) Disposal or Scrap||4,264,212.00||6,949,300.35|462,044.72|11,675,557.07|
||1,276,290,609.|3,388,969,160.|||||
|4. Closing balance||||61,472,226.89|132,224,730.03|4,858,956,726.26|
||33|01|||||
|||1,242,037,229.|||||
|1.Opening balance|345,171,796.57|||44,727,411.48|81,306,490.74|1,713,242,928.57|
|||78|||||
|2. Increased amount of|||||||
||34,211,778.70|106,382,035.24||5,608,779.67|5,023,786.75|151,226,380.36|
|the period|||||||
|(1) Withdrawal|34,211,778.70|106,382,035.24||5,608,779.67|5,023,786.75|151,226,380.36|
|3. Decreased amount of|||||||
|||2,451,990.67||6,150,032.10|301,225.56|8,903,248.33|
|the period|||||||
|(1) Disposal or Scrap||2,451,990.67||6,150,032.10|301,225.56|8,903,248.33|
|||1,345,967,274.|||||
|4. Closing balance|379,383,575.27|||44,186,159.05|86,029,051.93|1,855,566,060.60|
|||35|||||
|1.Opening balance||76,679,757.00||||76,679,757.00|
|4. Closing balance||76,679,757.00||||76,679,757.00|
|||1,966,322,128.||||2,926,710,908.66|
|1. Closing book value|896,907,034.06|||17,286,067.84|46,195,678.10||
|||66|||||
|||2,001,074,036.||||2,964,629,037.82|
|2. Opening book value|903,263,695.21|||19,648,501.68|40,642,804.09||
|||84|||||

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

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. (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|3,932,874.40||8,279,735.60|
|Machineries|3,160,000.00|1,660,680.86||1,499,319.14|
|Total|15,372,610.00|5,593,555.26||9,779,054.74|

 (4) Details of fixed assets failed to accomplish certification of property
Unit: RMB Yuan
||||
|-|-|-|
|Item|Book value|Reason|
|||Under processing, estimated finished in|
|Houses and buildings|134,379,218.15||
|||2015|
|Total|134,379,218.15||

Other notes
The closing temporarily idle fixed assets:
On 18 Feb. 2014, theCompany’s subsidiary Foshan Chengtong Paper Co., Ltd. had received Letter of about cooperating with Foshan Chancheng District North Area Planning the Implementation of Upgrade of Foshan City People's Government Office (FFBH No.[2014]91), theCompany’s production site was included in the upgrade scope of “Northern Portal Section”, so far, the industry type did not conform to the requirements of city planning of Foshan, the Company was required to carry out the relocation plan as soon as possible, Foshan Chengtong Paper Co., Ltd. shut down on 20 Feb. 2014.
13. Construction in progress
(1) List of construction in progress
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Provision for|||Provision for||
||Book balance||Book value|Book balance||Book value|
|||impairment|||impairment||
|Expansion project|||||||
|for production|||||||
||119,567,820.87||119,567,820.87|50,958,074.14||50,958,074.14|
|workshop phase|||||||
|III|||||||
|Self -bring heating|||||||
|boiler|10,419,623.13||10,419,623.13|1,159,776.60||1,159,776.60|
|environmental|||||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|upgrading|||||
|technical|||||
|renovation project|||||
|Advanced|||||
|wastewater|||||
||3,085,481.43|3,085,481.43|2,760,654.45|2,760,654.45|
|treatment and|||||
|water reuse project|||||
|BM1 transmission|||||
|actuator|2,843,941.12|2,843,941.12|555,555.56|555,555.56|
|renovation|||||
|Renovation of|||||
|BM1multi-disc|2,221,705.07|2,221,705.07|2,341,020.22|2,341,020.22|
|machine|||||
|BM3 Tetra project|2,163,918.29|2,163,918.29|302,565.61|302,565.61|
|Upscale special|||||
|white cardboard|2,113,080.67|2,113,080.67|||
|BM4 new project|||||
|Paper cutter|||||
||1,159,264.85|1,159,264.85|1,159,264.85|1,159,264.85|
|project|||||
|Videojet ink-jet|||||
||1,119,000.00|1,119,000.00|||
|printer|||||
|Licensing and|||||
|software fee for|||||
|informalization|||1,239,877.54|1,239,877.54|
|project of China|||||
|paper （NC）|||||
|Rubber latex phase|||||
||||27,827,556.42|27,827,556.42|
|II project|||||
|BM2 Chuangjie|||||
|system renovation|||2,512,354.05|2,512,354.05|
|project|||||
|Central|||||
|air-conditioning|||||
||||1,460,000.00|1,460,000.00|
|installation|||||
|package B|||||
|Automatic|||||
|packaging line|||||
||||7,363,133.16|7,363,133.16|
|reconstruction|||||
|project phase II|||||
|BM2 Paper cutting|||3,550,875.50|3,550,875.50|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
|machine drive||||||
|control system||||||
|upgrade project||||||
|Huafeng OARS||||||
|||||2,926,116.91|2,926,116.91|
|library||||||
|Other|9,515,825.88|-|9,515,825.88|7,753,105.01|- 7,753,105.01|
|Total|154,209,661.31||154,209,661.31|113,869,930.02|113,869,930.02|

 (2) Changes of significant construction in progress
Unit: RMB Yuan
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Ofwhich:|||
|||||Amount|||Proporti||||||
||||||||||Accumul||||
|||||that|||on|||the|Capitaliz||
||||||Other||||ative||||
||||Increase|transferr|||estimate|||amount|ation rate||
||Estimate||||decrease||||amount||||
|Name o f||Opening|d amount|ed to||Closing|d of the|Project||of the|of the|Capital|
||d||||d amount||||of||||
|item||balance|of the|fixed||balance|project|progress||capitaliz|interests|resources|
||number||||of the||||capitaliz||||
||||period|assets of|||accumul|||ed|of the||
||||||period||||ed||||
|||||the|||ative|||interests|period||
||||||||||interests||||
|||||period|||input|||of theperiod|||
|Jinji|||||||||||||
|Rubber|||||||||||||
||54,850,0|27,827,5|15,755,5|43,583,0|||||||||
|latex|||||||79.46%|100|||||
||00.00|56.42|16.23|72.65|||||||||
|phase II|||||||||||||
|project|||||||||||||
|Huafeng|||||||||||||
||26,339,1|2,926,11|12,789,0|15,715,1|||||||||
|OARS|||||||59.66%|100|||||
||29.18|6.91|30.08|46.99|||||||||
|library|||||||||||||
|Advance|||||||||||||
|d|||||||||||||
|wastewat|||||||||||||
|er|||||||||||||
||4,917,70|2,760,65|324,826.|||3,085,48|||||||
|treatmen|||||||62.74%|80|||||
||0.00|4.45|98|||1.43|||||||
|t and|||||||||||||
|water|||||||||||||
|reuse|||||||||||||
|project|||||||||||||
|Central|||||||||||||
|air-condi|1,460,00|1,460,00||1,460,00|||||||||
||||||||100.00%|100|||||
|tioning|0.00|0.00||0.00|||||||||
|installati|||||||||||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|on|||||||||||
|package|||||||||||
|B|||||||||||
|Self|||||||||||
|-bring|||||||||||
|heating|||||||||||
|boiler|||||||||||
|environ|||||||||||
|mental|22,000,0|1,159,77|9,259,84||10,419,6||||||
|||||||47.36%|60||||
|upgradin|00.00|6.60|6.53||23.13||||||
|g|||||||||||
|technical|||||||||||
|renovati|||||||||||
|on|||||||||||
|project|||||||||||
|BM3|||||||||||
|Manufac|||||||||||
|turing|6,000,00||918,359.||918,359.||||||
|||||||15.31%|15||||
|executio|0.00||60||60||||||
|n system|||||||||||
|project|||||||||||
|Producti|||||||||||
|on|||||||||||
|worksho|||||||||||
||98,100,0|54,375,5|78,768,0|11,822,7|121,320,|||7,401,73|6,374,63||
|p||||||124.00%|试车|||5.00%|
||00.00|93.44|40.59|50.92|883.11|||9.42|8.55||
|expansio|||||||||||
|n project|||||||||||
|Phase III|||||||||||
|Automat|||||||||||
|ic|||||||||||
|packagin|||||||||||
|g line|9,500,00|7,363,13|988,682.|8,351,81|||||||
|||||||87.91%|100||||
|reconstru|0.00|3.16|92|6.08|||||||
|ction|||||||||||
|project|||||||||||
|phase II|||||||||||
|BM2|||||||||||
|Paper|||||||||||
|cutting|||||||||||
||4,000,00|3,550,87|178,348.|3,729,22|||||||
|machine||||||93.23%|100||||
||0.00|5.50|95|4.45|||||||
|drive|||||||||||
|control|||||||||||
|system|||||||||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|upgrade|||||||||||
|project|||||||||||
|Line 1|||||||||||
|multi-dis|||||||||||
|c|2,500,00|2,202,85|18,855.0|2,221,70|||||||
|||||||88.87%|100||||
|machine|0.00|0.07|0|5.07|||||||
|renovati|||||||||||
|on|||||||||||
|Line 2|||||||||||
|Wet|||||||||||
|chemistr|||||||||||
|y|||||||||||
||3,000,00|2,512,35|||2,512,35||||||
|additive||||||83.75%|90.00||||
||0.00|4.05|||4.05||||||
|system|||||||||||
|renovati|||||||||||
|on|||||||||||
|project|||||||||||
|Line 2|||||||||||
|Paper|||||||||||
|cutting|||||||||||
|machine|||||||||||
||4,000,00|3,550,87|178,348.|3,729,22|||||||
|drive||||||93.23%|100||||
||0.00|5.50|95|4.45|||||||
|control|||||||||||
|system|||||||||||
|upgrade|||||||||||
|project|||||||||||
||236,666,|109,689,|119,179,|90,612,9|138,256,|||7,401,73|6,374,63||
|Total||||||--|--|||--|
||829.18|786.10|855.83|40.61|701.32|||9.42|8.55||

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

Other notes
No construction in progress was used as pledge or guarantee at the period-end.
14. Productive biological assets
(1) Productive biological assets adopted cost measurement mode
□ Applicable√ Inapplicable
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. (2) Productive biological assets adopted fair value measurement mode
□ Applicable√ Inapplicable
.15 Oil and gas assets
□ Applicable√ Inapplicable
16. Intangible assets
(1) List of intangible assets
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|Item|Land use right|Patent right|Non-patent right|Other|Total|
|1. Opening balance|147,280,219.42|14,157,206.11||10,055,442.46|171,492,867.99|
|2. Increased amount of the||||||
||17,798,816.81|||2,859,717.25|20,658,534.06|
|period||||||
|(1) Purchase|17,798,816.81|||2,859,717.25|20,658,534.06|
|3. Decreased amount of the||||||
||4,616,723.47||||4,616,723.47|
|period||||||
|(1) Disposal|4,616,723.47||||4,616,723.47|
|4. Closing balance|160,462,312.76|14,157,206.11||12,915,159.71|187,534,678.58|
|1. Opening balance|41,111,918.25|8,068,301.54||5,098,827.87|54,279,047.66|
|2. Increased amount of the||||||
||2,715,736.32|446,461.44||894,555.08|4,056,752.84|
|period||||||
|(1) Withdrawal|2,715,736.32|446,461.44||894,555.08|4,056,752.84|
|3. Decreased amount of the||||||
||65,286.26||||65,286.26|
|period||||||
|(1) Disposal|65,286.26||||65,286.26|
|4. Closing balance|43,762,368.31|8,514,762.98||5,993,382.95|58,270,514.24|
|1. Book value of the|||||129,264,164.34|
||116,699,944.45|5,642,443.13||6,921,776.76||
|period-end||||||
|2. Book value of the|||||117,213,820.33|
||106,168,301.17|6,088,904.57||4,956,614.59||
|period-begin||||||

The proportion of the intangible assets formed through the internalR&D of the Company in the balance of intangible assets at the period-end stood at9.82%.
No intangible asset was used as pledge or guarantee at the period-end.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. (2) Details of fixed assets failed to accomplish certification of land use right
Unit: RMB Yuan
||||
|-|-|-|
|Item|Book value|Reason|

Other notes:
17.R&D expenses
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|||Increase||Decrease||||
||Opening|||Recognized as|Transferred in||Closing|
|Item||Internal R&D||||||
||balance||Other|intangible|current gains|Other|balance|
|||expenses||||||
|||||assets|and losses|||
|R&D expenses||||||||
|of new|12,554,942.88|1,300.00|||||12,556,242.88|
|product||||||||
|Total|12,554,942.88|1,300.00|||||12,556,242.88|

 Other notes
18. Goodwill
(1) Original book value of goodwill
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|Name of the||Increase||Decrease|||
|investees or the||Formed from the|||||
||Opening balance|||||Closing balance|
|events formed||business|Other|Dispose|Other||
|goodwill||combination|||||
|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
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|Name of the||Increase||Decrease|||
|investees or the|||||||
||Opening balance|||||Closing balance|
|events formed||Withdrawal|Other|Dispose|Other||
|goodwill|||||||

Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill impairment losses: 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 RMN 808.4487 million, obtained the fair value of the identifiable net assets of the Company was RMB 799.3197 million. Combination cost being large than the fair value of the identifiable net assets balance formed goodwill RMB 9129025.01. 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 RMB 69,000,000.00, obtained the fair value of the identifiable net assets of the Company was RMB 66,581,719.72, Combination cost being large than the fair value of the identifiable net assets balance formed goodwill RMB 2,418,280.28. 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.
Other notes
19. Long-term unamortized expenses
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||Amortization|||
|Item|Opening balance|Increase||Decrease|Closing balance|
||||amount|||
|Decoration expense||||||
||780,783.39||270,646.68||510,136.71|
|for rent-in plant||||||
|Expense for||||||
||148,504.27||148,504.27|||
|Software service||||||
|Total|929,287.66||419,150.95||510,136.71|

 Other notes
20. 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|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|Assets impairment|||||
||173,726,182.78|31,651,663.16|189,678,581.08|32,981,307.91|
|provision|||||
|Accrued unpaid wages|1,248,945.82|312,236.45|4,458,350.03|1,114,587.51|
|Accrued sales agency|||||
||6,921,826.10|1,038,273.92|5,374,237.59|806,135.64|
|fees|||||
|Estimated liabilities/|||||
|estimated product quality|6,961,893.98|1,044,284.10|7,146,269.00|1,071,940.35|
|guarantee losses|||||
|Accrued paper|||||
||8,000,517.69|1,200,077.64|5,094,617.78|764,192.66|
|transportation fees|||||
|Total|196,859,366.37|35,246,535.27|211,752,055.48|36,738,164.07|

 (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|
|Change in fair value of|||||
|available-for-sale|||||
|financial assets that was|||2,381,368.73|357,205.31|
|recorded into the capital|||||
|reserves|||||
|Appreciation of assessed|||||
||14,979,280.47|2,246,892.07|15,346,120.01|2,301,918.00|
|intangible assets|||||
|Appreciation of assessed|||||
||3,724,612.87|558,691.93|4,432,522.90|664,878.44|
|fixed assets|||||
|Total|18,703,893.34|2,805,584.00|22,160,011.64|3,324,001.75|

 (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|Mutual set-off amount of|Amount of deferred|
||deferred income tax|income tax assets or|deferred income tax|income tax assets or|
|Item|||||
||assets and liabilities at|liabilities after off-set at|assets and liabilities at|liabilities after off-set at|
||the period-end|the period-end|the period-begin|the period-begin|
|Deferred income tax||35,246,535.27||36,738,164.07|
|assets|||||
|Deferred income tax||2,805,584.00||3,324,001.75|
|liabilities|||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. (4) List of unrecognized deferred income tax assets
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Deductible temporary difference|196,859,366.37|211,752,055.48|
|Deductible losses|301,542,428.22|216,726,509.38|
|Total|498,401,794.59|428,478,564.86|

 (5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB Yuan
|||||
|-|-|-|-|
|Years|Closing amount|Opening amount|Note|
|Year-end of 2011|4,394,500.39|4,394,500.39||
|Year-end of 2012|140,903,717.19|140,903,717.19||
|Year-end of 2013|71,428,291.80|71,428,291.80||
|Year-end of 2014|84,815,918.84|||
|Total|301,542,428.22|216,726,509.38|--|

Other notes:
21. Other non-current assets
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Payments for equipment|7,409,367.68||
|Total|7,409,367.68||

Other notes:
22. Short-term loans
(1) Category of short-term loans
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Pledge loan|406,720,259.72|109,794,168.00|
|Guarantee loan|502,216,032.75|281,453,500.00|
|Credit loan|78,952,000.00|290,000,000.00|
|Trade financing|142,378,794.76|65,270,692.93|
|Total|1,130,267,087.23|746,518,360.93|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Notes of category of short-term loan:
(1) The pledge loan of RMB 406,720,259.72 gained on 31 Dec. 2014, in which: theCompany’s subsidiary Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd.signed the Contract on Pledge of Rights with Zhuhai Branch of China Everbright Bank, which pledged the bank acceptance bills of RMB 25,516,906.89, pledge deposit of RMB75, 097,224.42 (including interest of pledge deposit of RMB 28,191.60) to Zhuhai Branch of China Everbright Bank for short-term loan of$ 15,000,000.00 equivalence RMB 91,785,000.00;
Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd.signed the Contract on Pledge of Rights with Luso International Banking Limited, which pledged the bank acceptance bills of RMB 8, 576,936.30, pledge deposit of RMB of 89,611,574.78 (including interest of pledge deposit of RMB 136,439.72) to Luso International Banking Limited for loan of foreign L/G and gained short-term loan of$ 14,925,880.00 equivalence RMB 91,331,459.72.
Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd.signed the Contract on Pledge of Rights with Luso International Banking Limited, which pledged the bank acceptance bills of RMB 44,052,749.50, pledge deposit of RMB of 19,444,437.47 (including interest of pledge deposit of RMB 2,071.79) to Luso International Banking Limited for loan of foreign L/G and gained short-term loan of$ 9,800,000.00, equivalence RMB 59,966,200.00.
Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd.signed the Contract on Pledge of Rights with Zhuhai Branch of Industrial Bank, which pledged the cash deposit of RMB 10,000,000.00 to Zhuhai Branch of Industrial Bank gained short-term loan of RMB 100,000,000.00.
TheCompany’s sub-subsidiary Zhuhai Huafeng Paper Co., Ltd. signed the Contract on Pledge of Rights with China Everbright Bank, which pledged the bank acceptance bills of RMB 3,806,669.00 pledge deposit of RMB of 53,331,980.11 to China Everbright Bank, gained short-term loan of$ 8,300,000.00 equivalence RMB 50,787,700.00.
Zhuhai Huafeng Paper Co., Ltd. signed the Contract on Pledge of Rights with Zhuhai Branch of China Resources Bank of Zhuhai Co., Ltd. which pledged the bank acceptance bills of RMB 312,250,000.00 pledge deposit of RMB of 1,390,014.37 to Zhuhai Branch of China Resources Bank of Zhuhai Co., Ltd., gained short-term loan of$ 2,100,000.00 equivalence RMB 12,849,900.00.
(2) The guarantee loan was RMB 502,216,032.75 on 31 Dec. 2014, of which theCompany’s subsidiary Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. borrowed$ 14,160,960.00 equivalence RMB 86,650,914.24 from Luso International Banking Limited, guaranteed by Zhuhai Branch of Shanghai Pudong Development Bank; in total borrowed$ 24,400,000.00 equivalence RMB 149,303,600.00 from Jida Branch of China Resources Bank of Zhuhai Co., Ltd. all provided by the Company with no more than equivalence RMB 200,000,000.00, borrowed$ 20,634,338.70 equivalence RMB126,261,518.51 from Export-Import Bank of China, and the Company provided the joint liability guarantee for such loan.
TheCompany’s sub-subsidiary Zhuhai Huafeng Paper Co., Ltd. borrowed RMB 140,000,000.00 from Zhuhai Qianshan Branch of Agricultural Bank of China and the Company and heCompany’s subsidiary Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. provided the joint liability guarantee for such loan.
(3) The trade financing loan of RMB 142,378,794.76 gained on 31 Dec. 2014, in which: theCompany’s
subsidiary Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. borrowed RMB 10,180,276.60 from Zhuhai Branch of China Construction Bank and the Company provided guarantee of maximum ceiling of RMB 100 million, other credit business was assets usufruct. Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. borrowed USD pledge loan of RMB 98,646,979.14 from Zhuhai Branch of Bank of China, Zhuhai Branch of China Construction Bank and Qianshan Branch of Agricultural Bank of China Co., Ltd.
TheCompany’s sub-subsidiary Zhuhai Huafeng Paper Co., Ltd. gained trade financing loan of$ 5,483,173.56 equivalence RMB 33,551,539.02 from Qianshan Branch of Agricultural Bank of China Co., Ltd.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 23. Derivative financial liabilities
□ Applicable√ Inapplicable
24. Notes payable
Unit: RMB Yuan
||||
|-|-|-|
|Category|Closing balance|Opening balance|
|Bank acceptance bill|68,436,123.39|7,208,770.58|
|Total|68,436,123.39|7,208,770.58|

 The total amount of the due but not pay notes payable at the period-end was of RMB 000.
25. Accounts payable
(1) List of accounts payable
Unit: RMB Yuan
||||
|-|-|-|
|Category|Closing balance|Opening balance|
|Within 1 year (including 1 year)|409,275,385.16|287,598,469.58|
|1 to 2 years (including 2 years)|26,560,206.75|15,187,985.61|
|2 to 3 years (including 3 years)|5,584,882.13|47,028.25|
|Over 3 years|1,407,892.67|2,506,828.96|
|Total|442,828,366.71|305,340,312.40|

 (2) Notes of the significant accounts payable aging over one year
Unit: RMB Yuan
||||
|-|-|-|
|Name of creditor|Amount|Unpaid reason|
|European Forest Products Co., Ltd.|9,167,782.02|Unsettled|
|TEMBEL INC.|3,239,277.38|Unsettled|
|Marubeni Corporation|2,067,214.63|Unsettled|
|“International Paper Manufacturing|||
||1,558,883.84|Unsettled|
|Distribution Limited"|||
|Guangzhou Wenmao Packaging Materials|||
||1,295,078.55|Unsettled|
|Co., Ltd.|||
|Dongjing Transporter|958,428.29|Unsettled|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Fujian Xinye Investment & Management|||
||873,741.60|Unsettled|
|Group Co., Ltd.|||
|Total|19,160,406.31|--|

Other notes
26. Advance from customers
(1) List of advance from customers
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Within 1 year|21,178,860.84|37,631,581.27|
|1 to 2 years|1,624,309.26|3,420,667.13|
|2-3years|428,840.64|591,928.20|
|Total|23,232,010.74|41,644,176.60|

 (2) Significant advance from customers aging over one year
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Unpaid/ Un-carry-over reason|
|Shanghai Zi Dan Food Packaging and|||
||943,891.50|Unsettled|
|Printing Co., Ltd.|||
|Total|943,891.50|--|

27. Payroll payable
(1) List of Payroll payable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|I. Short-term salary|39,051,200.53|204,654,473.10|211,383,521.00|32,322,152.63|
|III. Termination benefits||1,042,105.88|1,042,105.88||
|Total|39,051,200.53|205,696,578.98|212,425,626.88|32,322,152.63|

 (2) List of Short-term salary
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|1. Salary, bonus,|||||
||32,720,189.82|166,137,378.35|173,828,195.59|25,029,372.58|
|allowance, subsidy|||||
|2. Employee welfare||7,192,026.16|7,192,026.16||
|3. Social insurance|12,529.31|21069437.84|21,006,867.46|75,099.69|
|Including: 1. Medical|||||
||3,513.19|6,413,862.76|6,382,919.64|34,456.31|
|insurance premiums|||||
|Work-related injury|||||
||1,761.25|975,225.26|975,225.26|1,761.25|
|insurance|||||
|Maternity insurance|463.44|844,951.97|844,951.97|463.44|
|4. Housing fund|10,390.11|5,742,249.46|5,728,491.91|24,147.66|
|5. Labor union budget|||||
|and employee education|6,308,091.29|4,094,131.29|3,208,689.88|7,193,532.70|
|budget|||||
|6. Short-term absence|||||
|||419,250.00|419,250.00||
|with payment|||||
|Total|39,051,200.53|202,101,217.43|208,830,265.33|32,322,152.63|

 28. Taxes payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|VAT||3,731,653.25|
|Business tax|294,497.66|292,397.66|
|Corporate income tax|12,629,131.42|12,598,097.09|
|Personal income tax|158,712.09|259,900.51|
|Urban maintenance and construction tax|1,609,791.92|887,098.94|
|Property tax|3,676,497.57|633,167.20|
|Education surtax|1,157,379.13|638,263.78|
|Levee expense|147,845.87|323,995.44|
|Stamp tax|1,535,611.28|1,249,271.95|
|Other|810,706.96|-420,590.42|
|Total|22,020,173.90|20,193,255.40|

 Other notes:
29. Interest payable
Unit: RMB Yuan
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Enterprise bond interest|5,928,888.96|5,284,444.47|
|Interest payable on short-term borrowings|7,106,782.15|6,979,523.50|
|Interest payable arising from capital of|||
||16,780,833.35|16,501,666.70|
|medium term notes assigned for loan|||
|Total|29,816,504.46|28,765,634.67|

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

Other notes:
30. Dividends payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Common stock dividends|170,913.00|9,732,961.09|
|Total|170,913.00|9,732,961.09|

 Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
31. Other accounts payable
(1) Other accounts payable listed by nature of the account
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Within 1 year|13,592,945.91|18,235,144.33|
|1-2 years|6,551,135.51|2,124,117.74|
|2-3 years|493,850.75|479,734.09|
|Over 3 years|622,219.15|4,806,631.97|
|Total|21,260,151.32|25,645,628.13|

 (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|
|Changsha Chaint Machinery Co., Ltd.|768,000.00|Final payment of engineering, settlement|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|||period not arrived|
|||Logistics margin, transaction is under|
|Jiangxi Hongxin Logistics Co., Ltd.|560,000.00||
|||processing|
|||Logistics margin, transaction is under|
|Zhuhai Jianli Transport Co., Ltd.|500,000.00||
|||processing|
|||Logistics margin, transaction is under|
|Eastern Sunday Logistics Co., Ltd.|500,000.00||
|||processing|
|Total|3,378,000.00|--|

Notes:
32. 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||

Notes:
The closing 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, with the term of use being 5 years and the due date being 24 Mar. 2015. If investors chose to exercise the re-sell option, the due date for the relevant MTNs would be 24 Mar. 2013, with a singer interest rate of4.8% on the yearly basis. In Mar. 2013, some investors exercised their re-sell option on MTNs worth RMB 81.25 million. As such, the Company repaid a borrowing principal of RMB 81.25 million to China Chengtong on 24 Mar. 2013.
33. Bonds payable
(1) Bonds payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Corporation bonds|794,912,384.37|793,330,251.65|
|Total|794,912,384.37|793,330,251.65|

 (2) Changes on bonds payable (not including other financial instrument classified as preferred stock and perpetual capital securities of financial liabilities)
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||The|Withdraw|Overflow|Pay in|||
|Name of|Book|||Issue|Opening||||||Closing|
|||Issue date|Period|||current|interest at|discount|current|Other||
|the bond|value|||amount|balance||||||period|
|||||||issue|par|amortizati|period|||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||on|||
|Corporati|800,000,0|26 Nov.|26 Nov.|791,700,0|793,330,2|47,044,44|1,582,132|46,400,00|794,912,3|
|on bonds|00|2012|2017|00.00|51.65|4.49|.72|0.00|84.37|
|||||791,700,0|793,330,2|47,044,44|1,582,132|46,400,00|794,912,3|
|Total|--|--|--|||||||
|||||00.00|51.65|4.49|.72|0.00|84.37|

 (3) Notes:
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, and the raised capital after deducting the bond issuance underwriting fees and custodian fees was RMB 791,700,000.00, and the interest period started from 26 Nov. 2012.
34. Long-term payable
(1) Long-term payable listed by nature of the account
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|China Chengtong Holding Group Co., Ltd.|0.00|418,750,000.00|
|Zhejiang Jinji Holdings Co., Ltd.|0.00|29,400,000.00|
|Zhuhai Delai Environment Protection|||
||8,337,820.93|10,539,109.12|
|Technology Co., Ltd.|||
|Zhuhai Xiangyu Energy Saving|||
||2,168,915.06|2,773,156.88|
|Technology Co., Ltd.|||
|Total|10,506,735.99|461,462,266.00|

 Note: as of 31 Dec. 2014, theCompany’s sub-subsidiary Zhuhai Jinji Chemical Co.,Ltd’s balance of
derecognition financing charge was RMB 1,130,607.10
35. Accrued liabilities
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|Closing balance|Opening balance|Formation reasons|
||||Claim due to the quality|
|Other|7,431,237.75|7,146,269.00||
||||problem in sale of product|
|Total|7,431,237.75|7,146,269.00|--|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Other notes, including related important assumptions and estimates of accrued liabilities:
36. Deferred income
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|Formation reasons|
||||||Government|
||||||subsidies related to|
|Government|||||assets, the unused|
||8,810,000.00||2,161,666.68|6,648,333.32||
|subsidies|||||part included in|
||||||deferred income|
||||||temporarily|
|Total|8,810,000.00||2,161,666.68|6,648,333.32|--|

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||||
|Funds for|||||||
|||||||Related to the|
|desulfurization|990,000.00||990,000.00||||
|||||||assets|
|project|||||||
|Funds for|||||||
|energy-saving|||||||
|||||||Related to the|
|and|510,000.00||510,000.00||||
|||||||assets|
|emission-reductio|||||||
|n|||||||
|Renovation|||||||
|project of the|||||||
|information|||||||
|system of||||||Related to the|
||800,000.00||||800,000.00||
|paper-making||||||assets|
|enterprise energy|||||||
|management|||||||
|center|||||||
|Renovation|||||||
|project of the|||||||
|||||||Related to the|
|information|||||||
||1,400,000.00||||1,400,000.00||
|system of||||||assets|
|paper-making|||||||
|enterprise energy|||||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|management|||||
|center|||||
|No. 1 paper|||||
|||||Related to the|
|machine update|240,000.00||240,000.00||
|& renovation||||assets|
|project|||||
|Liquid paper|||||
|||||Related to the|
|renovation|350,000.00|11,666.68|338,333.32||
|||||assets|
|project|||||
|Funds for|||||
|energy-saving|||||
|||||Related to the|
|and|1,200,000.00|300,000.00|900,000.00||
|||||assets|
|emission-reductio|||||
|n|||||
|Improvement of|||||
|the information|||||
|system of the|||||
|energy||||Related to the|
||1,400,000.00|350,000.00|1,050,000.00||
|management||||assets|
|center of the|||||
|paper-making|||||
|subsidiary|||||
|Steam|||||
|condensation||||Related to the|
||1,920,000.00||1,920,000.00||
|water recycling|||||
|||||assets|
|and energy saving|||||
|projects|||||
|Total|8,810,000.00|2,161,666.68|6,648,333.32|--|

 Notes:
1. The special appropriation by the Finance Bureau for the desulphurization project at the end of the reporting period referred to the appropriation of RMB 1,320,000.00 from Foshan Finance Bureau to the subsidiary Foshan Chengtong Paper Co., Ltd. in 2007. The relevant assets were put in use, and were written off according to their estimated depreciation period from the day of use, and RMB 990,000.00 was recorded into the current non-operating revenue.
2. According to the Notice of the Ministry of Finance on 2009 Central State-owned Capital Operation Budget Special Appropriation (CQ[2009] No. 411), the subsidiary Foshan Chengtong Paper Co., Ltd. received energy-saving and emission reduction funds of RMB 600,000.00 from China Paper Corporation for transforming the sewage fiber ball filtering system. The system was put into use and amortized over the asset depreciation period from this year, and RMB 510,000.00 was carried forward to the non-operating revenue.
3. In accordance with the Notice of Zhuhai Municipal Bureau of Finance on Delivering the Interest Subsidy Funds on Technical Renovation of the Provincial Industrial Structure Adjustment Special Funds in 2012 (ZCG[2012]
No. 066), theCompany’s subsidiary Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. gained the government grant
of RMB 800,000.00 for the information system renovation project of the Paper-making Enterprises Energy.
Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. gained the government grant of RMB 240,000.00 for No. 1 paper
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. machine update& renovation project in Oct. 2012. Because the issue has not been used in the reporting period, it wad not calculated into non-operating income.
4. The subsidiary Company Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. received RMB 1.40 million of government subsidies for papermaking enterprise energy management center information system project in Jan. 2013, the system was put in use, and were written off according to their estimated depreciation period from the day of use, and RMB 350,000.00 was recorded into the current non-operating revenue. RMB 350000 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 the day of use, and RMB 11,666.68 was recorded into the current non-operating revenue. RMB 1.20 million of government subsidies for Special fund for energy conservation and circular economy the system was put in use, and was written off according to their estimated depreciation period from the day of use, and RMB 300,000.00 was recorded into the current non-operating revenue.
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 RMB 1.92 million of government subsidies for steam condensation water recycling and energy saving projects, 1.40 million of government subsidies for information system project and energy management center project in Feb, 2013 because the issue has not been used in the reporting period, it wad not calculated into non-operating income. 37. 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||||||||

Notes:
38. 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:
39. Other comprehensive income
Unit: RMB Yuan
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||||
|-|-|-|-|-|-|-|-|
|||Reporting period||||||
||||Less: Amount|||||
||||transferred|||||
||||into profit and|||||
|||Amount|loss in the|||After-tax||
|||||Less:|After-tax|||
||Opening||||||Closing|
|||incurred|current period|||attribute to||
|Item||||||||
|||||income|attribute to|||
||balance|before|that|||minority|balance|
|||||tax|the parent|||
|||income|recognized|||shareholde||
|||||expense|company|||
|||tax|into other|||r||
||||comprehensive|||||
||||income in|||||
||||prior period|||||
|II. Other comprehensive income|||||-457,927.44|||
|||||||-1,174,717.|169,714.3|
|reclassified into profits or losses in|627,641.83||2,381,368.98|357,205.35||||
|||||||29|9|
|future||||||||
|Of which, shares in other||||||||
|comprehensive income reclassified||||||||
||||||||169,714.3|
|into profits or losses in future in|169,714.39|||||||
||||||||9|
|investee entity under the equity||||||||
|method||||||||
|Change in profits or losses of fair|||||-457,927.44|||
|||||||-1,174,717.||
|value of available for sale financial|457,927.44||2,381,368.98|357,205.35||||
|||||||29||
|assets||||||||
||627,641.83||||-457,927.44|-1,174,717.29|169,714.39|
|Total|||2,381,368.98|357,205.35||||

 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:
40. Surplus reserves
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Statutory surplus|||||
||179,240,134.80|8,039,960.60||187,280,095.40|
|reserves|||||
|Total|179,240,134.80|8,039,960.60||187,280,095.40|

 Other note, including changes and reason of change
41. Retained profits
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount|Withdrawal or distributed proportion|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Opening balance of retained profits beforeadjustments|||
||787,821,828.63|768,206,504.60|
|Opening balance of retained profits afteradjustments|787,821,828.63||
|||768,206,504.60|
|Add：Attributable to owners of the Company|83,284,859.23|79,060,852.74|
|Less: Withdrawal of statutory surplus reserves|8,039,960.60|8,903,028.71|
|Dividend of common stock payable||50,542,500.00|
|Closing retained profits|863,066,727.26|787,821,828.63|

 List of adjustment of opening retained profits:
1) RMB 000 opening retained profits was affected by retrospective adjustment conducted according to the Accounting Standards for Business Enterprises and relevant new regulations.
2) RMB 000 opening retained profits was affected by changes on accounting policies.
3) RMB 000 opening retained profits was affected by correction of significant accounting errors.
4) RMB 000 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB 000 opening retained profits was affected totally by other adjustments.
42. Revenue and Cost of Sales
(1) Revenue, Cost of Sales
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||2014||2013||
|Item|||||
||Revenue|Cost|Revenue|Cost|
|Main operation|3,397,014,091.45|2,880,124,643.42|3,913,213,455.88|3,423,875,741.27|
|Other operation|155,684,624.72|90,615,768.75|92,896,356.78|14,105,710.89|
|Total|3,552,698,716.17|2,970,740,412.17|4,006,109,812.66|3,437,981,452.16|

 43. Business tax and surcharges
Unit: RMB Yuan
||||
|-|-|-|
|Item|2014|2013|
|Business tax|3,617,483.37|3,650,875.27|
|Urban maintenance and construction tax|5,515,184.19|9,827,347.34|
|Education surtax|3,956,565.52|6,444,483.49|
|Levee expense|1,506,961.90|2,859,702.80|
|Total|14,596,194.98|22,782,408.90|

Notes:
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 44. Sales expenses
Unit: RMB Yuan
||||
|-|-|-|
|Item|2014|2013|
|Wages|12,369,818.29|15,751,600.09|
|Transportation fees|113,506,495.17|138,867,042.68|
|Sales agency fees|6,149,876.04|5,441,020.33|
|Entertainment expense|6,493,157.23|5,485,611.86|
|Warehousing fees / rental expense|3,796,237.56|6,614,797.62|
|Packing fee|8,975,622.62|9,209,815.07|
|Travel expense|2,846,116.57|2,380,665.97|
|Other|10,400,144.97|15,216,379.44|
|Total|164,537,468.45|198,966,933.06|

 Notes:
45. Administrative expenses
Unit: RMB Yuan
||||
|-|-|-|
|Item|2014|2013|
|Wages|37,811,780.74|48,410,715.19|
|Social security fee|16,608,351.81|16,619,297.05|
|Amortization of depreciation fee|15,273,193.09|17,243,493.20|
|Taxes|12,718,284.85|10,586,659.84|
|Office expense|1,868,436.49|2,031,880.70|
|Maintenance expense and material|||
||2,606,416.84|2,763,487.45|
|consumption|||
|Business entertainment fees|2,587,432.32|3,295,402.18|
|Employ agency fee|5,842,229.27|6,547,435.56|
|Other|45,348,576.61|41,844,915.08|
|Total|140,664,702.02|149,343,286.25|

 Notes:
46. Financial expenses
Unit: RMB Yuan
||||
|-|-|-|
|Item|2014|2013|
|Interest expenditures|121,068,027.97|119,128,083.30|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Less: interest income|2,037,453.21|3,308,024.38|
|Foreign exchange losses|385,620.40|1,584,107.88|
|Less: foreign exchange gains and losses|720,838.01|6,620,083.83|
|Other|8,289,745.01|2,737,753.73|
|Total|126,985,102.16|113,521,836.70|

 Notes:
47. Asset impairment loss
Unit: RMB Yuan
||||
|-|-|-|
|Item|2014|2013|
|I. Bad debt loss|2,432,129.09|14,030,801.82|
|II. Inventory falling price loss|-9,127,522.04|3,479,046.17|
|Total|-6,695,392.95|17,509,847.99|

 Notes:
48. Investment income
Unit: RMB Yuan
||||
|-|-|-|
|Item|2014|2013|
|Long-term equity investment income|||
||7,690,138.47|530,727.73|
|accounted by equity method|||
|Investment gains on available-for-sale|||
|||126,785.51|
|financial assets during the holding period|||
|Investment gains on disposal of|||
||4,796,692.93||
|available-for-sale financial assets|||
|Total|12,486,831.40|657,513.24|

 Notes:
49. Non-operating gains
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Recorded in the amount of the|
|Item|2014|2013||
||||non-recurring gains and losses|
|Total gains from disposal of|25,556,368.05|51,476,397.59||
|non-current assets||||
|Including: Gains from disposal||||
||1,727,368.05|1,255,221.79|1,727,368.05|
|of fixed assets||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|Gains from disposal of||||
||23,829,000.00|50,221,175.80|23,829,000.00|
|intangible assets||||
|Government grants|14,044,743.94|7,246,780.00|14,044,743.94|
|Other|4,347,280.58|22,006,715.99|4,347,944.95|
|Total|43,948,392.57|80,729,893.58|43,948,392.57|

 Government subsidies recorded into current profits and losses
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|2014|2013|Related to the assets/ income|
|Water price different incentive|3,096,498.90|3,800,000.00|Related to the income|
|Promote & encourage important||||
||2,338,500.00||Related to the income|
|goods import incentive||||
|Discount funds for import|2,016,485.00|278,183.00|Related to the income|
|Discount funds for promoting||||
||1,244,434.00|748,960.00|Related to the income|
|important||||
|Imported wood pulp incentive|544,858.66||Related to the income|
|Energy saving funds|430,000.00|316,500.00|Related to the income|
|Technical innovation fund|410,000.00||Related to the income|
|Papermaking enterprise energy||||
|management center information|350,000.00||Related to the assets|
|system project||||
|Special fund for energy saving|300,000.00||Related to the assets|
|Special matching funds for||||
||353,539.70||Related to the income|
|increasing imports||||
|Enterprise financial incentives|201,581.00|382,939.00|Related to the income|
|Cash rewards for expand||||
||200,000.00||Related to the income|
|domestic enterprise||||
|Consigning subsidies|187,890.00|121,070.00|Related to the income|
|Gaolan port subsidies|162,250.00||Related to the income|
|Special fund for transformation||||
||216,000.00||Related to the income|
|of processing trade||||
|Special fund for transformation||||
|and upgrading to expand|120,000.00|100,000.00|Related to the income|
|production||||
|Special fund for technical||||
||50,000.00||Related to the income|
|standards strategy||||
|Enterprise development fund|35,046.00||Related to the income|
|Subsidies for he expo of 2014|30,000.00||Related to the income|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|Employment and reemployment||||
||27,094.00||Related to the income|
|funds (social security)||||
|Special fund for promoting||||
|insurance export credit|16,500.00||Related to the income|
|insurance||||
|Deferred income (Tetra liquid||||
||11,666.68||Related to the assets|
|paper transformation)||||
|Funds for application for a||||
||9,100.00||Related to the income|
|patent||||
|Special funds for the||||
|desulfurization project paid by||||
||990,000.00|66,000.00|Related to the assets|
|Foshan Municipal Bureau of||||
|Finance||||
|Energy-saving and||||
|emission-reduction funds for||||
||510,000.00||Related to the assets|
|reforming the sewage fiber ball||||
|filter system of Finance Bureau||||
|Gaolan fiscal Treasury center||||
|||21,228.00|Related to the income|
|social security incentive||||
|Special subsidies for||||
|||300,000.00|Related to the income|
|environmental protection||||
|R&D subsidy funds||130,400.00|Related to the income|
|Subsidy for support||281,200.00|Related to the income|
|Funds for application for a||||
|||24,800.00|Related to the income|
|patent||||
|Pollution control construction||||
|||45,000.00|Related to the income|
|subsidy funds||||
|Special funds produce, study||||
|and grinds received from||||
|Bureau of finance of Foshan||||
|||90,000.00|Related to the income|
|Chancheng district,||||
|production, special fund grant||||
|subsidies||||
|Government subsidy for||||
|ammonia nitrogen on-line||40,500.00|Related to the income|
|monitoring system||||
|Special funds of expanding||||
|||500,000.00|Related to the income|
|import||||
|Other subsidies|193,300.00||Related to the income|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|Total|14,044,743.94|7,246,780.00|--|

Notes: The gain of RMB 23,829,000.00 on intangible asset disposal was the actual auction gain on the state-owned land use right of the land in the west of No. 13 Gangkou Road which was included in thegovernment’s land reserve in 2014.
50. Non-operating expenses
Unit: RMB Yuan
|||||
|-|-|-|-|
||||The amount included in the|
|Item|2014|2013|current non-recurring gains and|
||||losses|
|Loss on disposal of non-current|1,009,714.83|352,476.01||
|assets||||
|Including: Loss on disposal of||||
||1,009,714.83|352,476.01|1,009,714.83|
|fixed assets||||
|Penalty damages, fine for||||
||13,232.17|203,539.05|13,232.17|
|delaying payment||||
|Abandonment loss||2,165,129.78||
|Other|306,715.94|3,401,584.25|302,715.94|
|Total|1,329,662.94|6,122,729.09||

Notes:
51. Income tax expense
(1) Lists of income tax expense
Unit: RMB Yuan
||||
|-|-|-|
|Item|2014|2013|
|Current income tax expense|46,386,834.46|43,821,527.88|
|Deferred income tax expense|1,330,416.36|-269,021.89|
|Total|47,717,250.82|43,552,505.99|

 (2) Adjustment process of accounting profit and income tax expense
Unit: RMB Yuan
|||
|-|-|
|Item|2014|
|Total profits|196,975,790.37|
|Current income tax expense accounted by tax and relevant||
||49,243,947.59|
|regulations||
|Influence of different tax rate applicable to subsidiary|-13,456,866.49|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
|Influence of income tax before adjustment|-724,384.43|
|Influence of not deductable costs, expenses and losses|19,653,688.23|
|Influence of deductible temporary difference or deductible losses||
||-6,407,015.82|
|of derecognized deferred income tax assets||
|Profits and losses attributed to the joint ventures and||
||-1,922,534.62|
|associated enterprises||
|Adjustment of deferred income tax assets|1,330,416.36|
|Income tax expense|47,717,250.82|

 Notes:
52. Other comprehensive income
Refer to the notes of other comprehensive income of balance sheet
53. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
Unit: RMB Yuan
||||
|-|-|-|
|Item|2014|2013|
|Income from government grants|11,894,743.94|26,855,369.83|
|Insurance fee|1,096,461.56|2,783,289.89|
|Interest income from normal bank deposit|2,002,902.83|2,329,968.99|
|Waste income|387,920.71|890,783.48|
|Award for the disabled employment|||
||183,218.72|252,104.87|
|security|||
|The related party that contacts|3,000,000.00|64,549,356.84|
|Other|34,547,163.64|37,927,756.63|
|Total|53,112,411.40|135,588,630.53|

 Notes:
(2) Other cash paid relevant to operating activities
Unit: RMB Yuan
||||
|-|-|-|
|Item|2014|2013|
|In-comings and out-goings with|||
||26,907,209.79|18,636,471.47|
|non-related parties|||
|Business entertainment fees|8,744,386.49|8,229,000.61|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Insurance expenses|5,816,511.98|5,589,491.14|
|Sewage charge|4,675,520.61|7,796,601.69|
|Expenses for intermediaries|3,700,837.44|6,664,518.97|
|Maintenance fees|3,408,554.61|6,274,883.89|
|Travel expenses|5,563,360.11|4,551,435.57|
|Office expense|2,781,459.88|2,882,364.09|
|Handling charge|8,305,530.23|2,437,186.12|
|Lease expense|2,635,880.96|2,426,112.16|
|Water & electricity and property|||
||1,473,307.00|2,180,827.69|
|management charges|||
|Environmental protection expense|3,190,888.24|1,633,268.80|
|Communications and communications|||
||916,626.61|1,036,929.66|
|equipment expense|||
|Other|51,062,611.27|65,911,450.24|
|Total|129,182,685.22|136,250,542.10|

 Notes:
(3) Other cash received relevant to investment activity
Unit: RMB Yuan
||||
|-|-|-|
|Item|2014|2013|

Notes:
(4) Other cash paid relevant to investment activity
Unit: RMB Yuan
||||
|-|-|-|
|Item|2014|2013|

Notes:
(5) Other cash received relevant to financing activities
Unit: RMB Yuan
||||
|-|-|-|
|Item|2014|2013|
|Interest subsidy|3,000,000.00|774,000.00|
|Total|3,000,000.00|774,000.00|

 Notes:
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. (6) Other cash paid relevant to financing activities
Unit: RMB Yuan
||||
|-|-|-|
|Item|2014|2013|
|Pledge deposit|238,847,039.46||
|Marginal deposit|122,453,741.10||
|Total|361,300,780.56||

Notes:
54. Supplementary information to cash flow statement
(1) Information of net profit to net cash flows generated from operating activities
Unit: RMB Yuan
||||
|-|-|-|
|Item|2014|2013|
|1. Reconciliation of net profit to net cash|||
||--|--|
|flows generated from operating activities|||
|Net profit|149,258,539.55|97,716,219.34|
|Add: Provision for impairment of assets|-6,695,392.95|17,509,847.99|
|Depreciation of fixed assets, of oil-gas|||
||151,939,219.54|185,584,645.83|
|assets, of productive biological assets|||
|Amortization of intangible assets|4,056,752.84|5,204,054.31|
|Amortization of long-term deferred expense|419,150.95|239,080.05|
|Losses on disposal of fixed assets, intangible|||
|assets and other long-term assets (gains:|-24,546,653.22|-51,123,921.58|
|negative)|||
|Financial cost (gains: negative)|120,732,810.36|114,092,107.35|
|Investment loss (gains: negative)|-12,486,831.40|-657,513.24|
|Decrease in deferred income tax assets|||
||1,491,628.80|-234,818.67|
|(gains: negative)|||
|Increase in deferred income tax assets|||
||-518,417.75|-2,125,330.50|
|(decrease: negative))|||
|Decrease in inventory (gains: negative)|-161,653,458.31|237,879,465.61|
|Decrease in accounts receivable from|||
||86,877,346.52|196,891,784.46|
|operating activities (gains: negative)|||
|Increase in payables from operating|||
||171,015,635.05|20,275,702.66|
|activities (decrease: negative)|||
|Net cash flows generated from operating|479,890,329.98|821,251,323.61|
|activities|||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|2. Investing and financing activities that do|||
|not involving|--|--|
|cash receipts and payment:|||
|Fixed assets under financing lease||15,372,610.00|
|3. Net increase in cash and cash equivalents|--|--|
||113,248,623.00|200,248,786.56|
|Closing balance of cash|||
||200,248,786.56|378,872,416.49|
|Less: Opening balance of cash|||
|Net increase in cash and cash equivalents|-87,000,163.56|-178,623,629.93|

 (2) Cash and cash equivalents
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|I. Cash|113,248,623.00|200,248,786.56|
|Including: Cash on hand|283,310.72|246,013.17|
|Bank deposit can be used for payment|||
||110,640,137.90|197,521,218.12|
|at any time|||
|Other monetary funds can be used for|||
||2,325,174.38|2,481,555.27|
|payment at any time|||
|III. Closing balance of cash and cash|113,248,623.00|200,248,786.56|
|equivalents|||

Notes:
55. 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.:
Assessment value changes of RMB 459,848.04 due total rate changes of theCompany’s sub-subsidiary Zhuhai Jinji Chemical Co., Ltd. were attributable to the parent Company.
56. The assets with the ownership or use right restricted
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing book value|Restricted reason|
|Monetary capital|361,300,780.56||
|Notes receivable|110,024,322.52||
|Total|471,325,103.08|--|

Notes:
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 57. 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|21,539,673.10|6.11900|131,801,259.69|
|HKD|37,603.41|0.78890|29,665.33|
|Including: USD|5,209,274.43|6.1190|31,875,550.24|
|HKD|3,014,552.88|0.78890|2,378,090.33|
|Short-term borrowing||||
|Including: USD|138,925,773.92|6.1190|850,086,810.63|

 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
58. Other
N/A
VIII. Changes of merge scope
1. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes√ No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in reporting period□ Yes√ No
2. Other reasons for the changes in combination scope
Note to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation) and relevant information:
On 18 Feb. 2014, theCompany’s subsidiary Foshan Chengtong Paper Co., Ltd. had received Letter of about cooperating with Foshan
Chancheng District North Area Planning the Implementation of Upgrade of Foshan City People's Government Office (FFBH No.
[2014]91), theCompany’s production site was included in the upgrade scope of “Northern Portal Section”, so far, the industry type
did not conform to the requirements of city planning of Foshan, the Company was required to carry out the relocation plan as soon as
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. possible, Foshan Chengtong Paper Co., Ltd. shut down on 20 Feb. 2014 and dealed with the liquidation to theCompany’s sub-subsidiary Foshan Huazhi Waste Paper Recycling Co., Ltd.. The cancellation notice for industry and commerce was disclosed on Guangzhou Daily on 17 Nov. 2014. As of 31 Dec. 2014, theCompany’s sub-subsidiary Foshan Huazhi Waste Paper Recycling Co., Ltd. respectively obtained the cancellation approval of national tax registration certificate on Aug. 15, 2014; the cancellation approval of local tax certificate on Nov. 5, 2014 and completed the procedure of bank account cancellation on 23 Dec. 2014.
3. Other
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
||||||||
|-|-|-|-|-|-|-|
|Name of the|Main operating|Registration|Nature of|Proportion of shareholding|||
|||||||Way of gaining|
|subsidiary|place|place|business|Directly|Indirectly||
|Foshan|||||||
|Chengtong Paper|Foshan|Foshan|Manufacturing|75.00%||Establishment|
|Co., Ltd|||||||
|||||||Business|
|Huaxin (Foshan)|||||||
|||||||combination|
|Color Printing|Foshan|Foshan|Manufacturing|100.00%|||
|||||||under common|
|Co., Ltd.|||||||
|||||||control|
|||||||Business|
|Zhuhai Huafeng||||||combination|
||Zhuhai|Zhuhai|Manufacturing||100.00%||
|Paper Co., Ltd.||||||under common|
|||||||control|
|||||||Business|
|Zhuhai S.E.Z.|||||||
|||||||combination not|
|Hongta Renheng|Zhuhai|Zhuhai|Manufacturing|41.97%|||
|||||||under common|
|Paper Co., Ltd.|||||||
|||||||control|
|Pearl River Color|||||||
|Printing Co., Ltd.|||||||
||Foshan|Foshan|Manufacturing||100.00%|Establishment|
|of Chancheng|||||||
|District, Foshan|||||||
|Kunshan Focai|||||||
|Packaging &|Suzhou|Suzhou|Manufacturing|100.00%||Establishment|
|Printing Co., Ltd.|||||||
|||||||Business|
|Zhuhai Jinji|||||||
|||||||combination not|
|Chemicals Co.,|Zhuhai|Zhuhai|Manufacturing||51.00%||
|||||||under common|
|Ltd.|||||||
|||||||control|

2014 Annual Report of Foshan Huaxin Packaging 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 in the first half of 2014.
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
||||||
|-|-|-|-|-|
||Shareholding|The profits and losses|Declaring dividends|Balance of minority|
|Name|proportion of minority|arbitrate to the|distribute to minority|shareholder at closing|
||shareholder|minority shareholders|shareholder|period|
|Jingzhou Huaxiang|||||
||58.03%|43,583,841.03||1,538,558,315.16|
|Chemical 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
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance||||||Opening balance||||||
|||Non-curr|||Non-curr|||Non-curr|||Non-curr||
|Name|Current||Total|Current||Total|current||Total|Current||Total|
|||ent|||ent|||ent|||ent||
||assets||assets|liabilities||liability|assets||assets|liabilities||liability|
|||assets|||liability|||assets|||liability||
|Zhuhai|||||||||||||
|S.E.Z.|||||||||||||
||2,510,36|2,120,44|4,630,81|1,310,41|669,296,|1,979,71|2,027,21|2,207,18|4,234,40|711,069,|945,305,|1,656,37|
|Hongta|||||||||||||
||3,959.60|9,163.95|3,123.55|5,499.51|963.29|2,462.80|0,931.33|9,117.27|0,048.60|107.11|740.31|4,847.42|
|Renheng|||||||||||||
|Paper|||||||||||||

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

Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||2014||||2013||||
||||Total||||Total||
|Name|Operation|||Operating|Operation|||Operating|
|||Net profit|comprehensi|||Net profit|comprehensi||
||revenue|||cash flow|revenue|||cash flow|
||||ve income||||ve income||
|Zhuhai|||||||||
|S.E.Z.|||||||||
|Hongta|2,210,557,84|75,099,623.2|75,504,039.2|362,558,449.|1,972,105,91|47,324,700.3|48,439,321.6|548,527,818.|
|Renheng|7.86|0|0|05|9.68|8|1|23|
|Paper Co.,|||||||||
|Ltd.|||||||||

Notes：
2. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
||||||||
|-|-|-|-|-|-|-|
|||||Proportion||Accounting|
|||||||treatment of the|
||Main operating|Registration||||investment of|
|Name|||Business nature||||
||place|place||Directly|Indirectly|joint venture or|
|||||||associated|
|||||||enterprise|
|Guangdong|||||||
|Chengtong|||||||
||Zhuhai|Zhuhai|Service||32.00%|Equity method|
|Logistics Co.,|||||||
|Ltd.|||||||
|Chengtong|||Financial||||
||Beijng|Beijng||20.00%||Equity method|
|financial Co., Ltd|||industry||||

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 joint venture
||||||
|-|-|-|-|-|
|Item|Closing balance/ 2014||Opening balance/ 2013||
||Chengtong financial Co.,Ltd|Guangdong ChengtongLogistics Co., Ltd.|Chengtong financialCo., Ltd|Guangdong ChengtongLogistics Co., Ltd.|
|Current assets|4,726,244,903.00|43,548,964.58|3,537,386,884.92|34,623,090.30|
|Non-current assets|8,795,688.23|11,111,974.89|6,515,017.10|9,403,519.42|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Total assets 4,735,040,591.23 54,660,939.47 3,543,901,902.02 44,026,609.72
||||||
|-|-|-|-|-|
|Current liabilities|3,655,103,302.48|28,946,069.23|2,470,200,865.45|20,254,752.84|
|Non-current liabilities|||||
|Total liabilities|3,655,103,302.48|28,946,069.23|2,470,200,865.45|20,254,752.84|
|Minority equity|||||
|Equity attributable toshareholders of parentcompany|||||
|Share of net assetscalculated at shareholdingproportion||8,228,758.48||7,606,994.20|
|Adjusting events|||||
|-Goodwill|||||
|-Internal tradingunrealized profits|||||
|-Other|||||
|Book value to equityinvestment in jointventure|238,518,574.19|8,228,758.48||7,606,994.20|
|Fair value of equityinvestment in jointventure with public offer|||||
|Operating revenue|111,741,235.34|93,216,104.09|148,160,789.68|70,517,396.40|
|Net profits|66,236,252.18|2,280,234.46|87,553,479.93|2,091,739.44|
|Net profits ofdiscontinuing operation|||||
|Other comprehensiveincome|||||
|Total amount ofcomprehensive income|||||
|Dividends received fromassociated enterprises inreporting period|||||

Notes:
X. The risk related financial instruments
N/A
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. XI. The disclosure of the fair value
1. Other
Inapplicable
XII. 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||
||Registered place|Business scope|Registered capital||parent company|
|company||||company against the||
||||||against the Company|
|||||Company (%)||
||||||(%)|
|Foshan Huaxin||||||
|Development Co.,|Foshan|Manufacturing|457,930,000|65.20%|65.20%|
|Ltd.||||||
|China National||||||
|Paper Industry|Beijing|Comprehensive|4,033,000,000|65.31%|65.31%|
|Investment Corp.||||||
|China Chengtong||||||
|Holding Group Co.,|Beijing|Comprehensive|7,480,165,600.00|65.31%|65.31%|
|Ltd.||||||

Statement of particulars about parent company of the Company:
On 28 Jun. 2005, Foshan Gongying Investment Holding Co., Ltd. transferred62.1142% shares (capital contribution was RMB 284,440,000) of Foshan Huaxin Development Co., Ltd. to China National Materials Development& Investment Corporation, which has changed its name to China National Paper-industry Investment Corporation. Foshan Huaxin Development Co., Ltd is the parent company and holds65.2% shares of the Company, China National Paper-industry Investment Corporation originally holds0.11% shares of the Company, so that China National Paper-industry Investment Corporation held65.31% shares of the Company directly and indirectly and becomes actual controller of the Company. China Chengtong Holding Group Co., Ltd. holds100% shares of China National Paper-industry Investment Corporation and has become the ultimate controller of the Company.
The ultimate controller of the Company was China Chengtong Holding Group Co., Ltd..
Other notes:
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 2. Subsidiaries of the Company
Subsidiaries of the Company see note “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
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.|Associated enterprise|
|Chengtong financial Co., Ltd|Associated enterprise|

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|

Notes:
5. List of related-party transactions
(1) Information on acquisition of goods and reception of labor service
Purchase of goods and acceptance of labor services
Unit: RMB Yuan
|||||
|-|-|-|-|
|Related-party|Content|2014|2013|
|Foshan Huaxin Import &||||
||Paper products|108,218.97|1,886,140.17|
|Export Co., Ltd.||||
|Foshan Huaxin Import &|Raw material|2,178,617.16|7,275,539.83|

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|Export Co., Ltd.||||
|China National Paper Industry||||
||Imported newspapers||11,406,070.55|
|Investment Corp.||||
|China National Paper Industry||||
||Purchasing wood pulp|134,346,267.91|260,418,971.08|
|Investment Corp.||||
|China National Paper Industry||||
||Purchase of fuel|11,576,258.98||
|Investment Corp.||||
|Guangdong Chengtong||||
||Logistics service|21,897,955.85|24,662,742.33|
|Logistics Co., Ltd.||||
|Guangdong Guanhao High-tech||||
||Raw material|73,078.85|467,471.22|
|Co., Ltd.||||
|Guangdong Guanhao High-tech||||
||Raw material|414,609.92|235,692.37|
|Co., Ltd.||||
|Tianjin Port Free Trade Zone||||
|Zhongwu Investment|Raw material|66,201,848.87|67,810,181.53|
|Development Co., Ltd.||||
|Yuanjian Paper Co., Ltd.|Raw material|1,636,875.00||
|Hunan Juntai Pulp Paper Co.,||||
||Raw materials|2,280,291.54||
|Ltd.||||

Information of sales of goods and provision of labor service
Unit: RMB Yuan
|||||
|-|-|-|-|
|Related-party|Content|2014|2013|
|Foshan Huaxin Import &||||
||Presswork|804,048.63|2,584,191.03|
|Export Co., Ltd.||||
|Foshan Huaxin Import &||||
||White card paper|98,980.77|1,724,794.87|
|Export Co., Ltd.||||
|Guangdong Guanhao High-tech||||
||White card paper|754,222.21|1,070,331.64|
|Co., Ltd.||||
|Yueyang Forest & Paper Co.,||||
||Rubber latex|1,526,923.63|2,901,306.98|
|Ltd.||||
|Yueyang Antai industrial Co.,||||
||Rubber latex||90,001.80|
|Ltd||||
|Long Bond Investment Co.,||||
||Raw material|74,379,473.02||
|Ltd.||||

Notes:
(2) Information of related lease
The Company was lessor:
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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|1,256,863.00|700,108.00|
|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.||||

Note
(3) 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|||||
||50,000,000.00|27 Mar. 2012|27 Mar. 2015|No|
|Renheng Paper Co., Ltd.|||||
|Zhuhai S.E.Z. Hongta|||||
||330,000,000.00|7 May 2014|6 May 2017|No|
|Renheng Paper Co., Ltd.|||||
|Zhuhai S.E.Z. Hongta|||||
||150,000,000.00|17 Oct. 2012|31 Dec. 2014|No|
|Renheng Paper Co., Ltd.|||||
|Zhuhai S.E.Z. Hongta|||||
||100,000,000.00|24 Dec. 2013|24 Dec. 2014|No|
|Renheng Paper Co., Ltd.|||||
|Zhuhai S.E.Z. Hongta|||||
||250,000,000.00|25 Feb. 2014|31 Dec. 2015|No|
|Renheng Paper Co., Ltd.|||||
|Zhuhai S.E.Z. Hongta|||||
||200,000,000.00|15 Jul. 2014|15 Jul. 2015|No|
|Renheng Paper Co., Ltd.|||||
|Zhuhai S.E.Z. Hongta|||||
||189,000,000.00|8 Nov. 2014|7 Nov. 2015|No|
|Renheng Paper Co., Ltd.|||||
|Huaxin (Foshan) Color|||||
||65,000,000.00|1 Jul. 2013|31 Dec. 2017|No|
|Printing Co., Ltd.|||||
|Zhuhai Huafeng Paper|||||
||350,000,000.00|29 Oct. 2013|28 Oct. 2016|No|
|Co., Ltd.|||||

The Company was Secured party
Unit: RMB Yuan
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|||||Execution accomplished|
|guarantor:|Guarantee amount|Start date|End date||
|||||or not|
|China National Paper|||||
|Industry Investment|610,000,000.00|17 Apr. 2013|17 Apr. 2016|No|
|Corp.|||||

Notes:
(4) 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. 2011|24 Mar. 2015||
|Holding Group Co., Ltd.|||||
|Foshan Huaxin|||||
||1,100,000.00|1 Jan. 2012|31 Dec. 2014||
|Development Co., Ltd.|||||
|loaned|||||

(5) Rewards for the key management personnel
Unit: RMB Yuan
||||
|-|-|-|
|Item|2014|2013|
|Director|240,000.00|340,000.00|
|GM/ Deputy GM|3,933,263.10|4,403,063.11|
|Supervisor|740,386.00|641,305.60|
|Total|4,913,649.10|5,384,368.71|

 (6) Other related party transactions
(1) 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 transafer20% 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, recognized as investment income RMB 7,068,374.19 in reporting period.
(2) According to the 2013
1st
meeting of
5th
board of directors on 18 April, 2013 and 2012 Annual General
Meeting on 15 May, 2013, the review of Financial Services Agreement signed by this Company and Hengtong
Financial Co., Ltd and related transaction bill for financial services has agreed to sign Financial Services
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Agreement signed by this Company and Hengtong Financial Co., Ltd and conduct financial services; sum of daily maximum outstanding of deposits and interests on deposit of this Company in Chengtong Financial Co., Ltd should not be higher than5% of last year audit amount (outstanding of deposits excluding loans or settlement amount); sum of credit extension and interests should not be greater than RMB 600,000,000; and all settlement businesses should be conducted according to requirements. Until 31 Dec. 2014, outstanding of deposits of the Company in Chengtong Financial Co., Ltd was RMB 45,314,291.62 and loan balance was RMB 30,000,000.00. 6. Receivables and payables of related parties
(1) Receivables
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Closing period||Opening period||
|Item|Related party|||||
|||Book balance|Bad debt provision|Book balance|Bad debt provision|
||Guangdong Guanhao|||||
|Account receivable||29,875.20||548,407.00||
||High-tech Co., Ltd.|||||
||Yueyang Forest &|||||
|Account receivable||1,574,001.70||9,112.56||
||Paper Co., Ltd.|||||
||Yueyang Antai|||||
|Account receivable||5,302.10||105,302.10||
||industrial Co., Ltd|||||
||Long Bond|||||
||Investment|||||
|Account receivable||156.16||||
||Development Co.,|||||
||Ltd.|||||
||Guangdong|||||
|Account receivable|Chengtong Logistics|252,199.10||||
||Co., Ltd.|||||
||Foshan Huaxin|||||
|Account receivable|Import & Export|726,513.19||||
||Co., Ltd.|||||
||China National|||||
||Paper-industry|||||
|Prepayment||11,612,211.87||37,947,833.90||
||Investment|||||
||Corporation|||||
||Tianjin Port Free|||||
||Trade Zone|||||
|Prepayment|Zhongwu Investment|||10,846,922.22||
||Development Co.,|||||
||Ltd.|||||
|Other account|Guangdong|||||
|||967,052.75||774,552.14||
|receivable|Chengtong Logistics|||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
||Co., Ltd.|||
||China National|||
|Other account|Paper-industry|||
|||249,255.39|94,575.18|
|receivable|Investment|||
||Corporation|||

(2) Payables
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|Related party|Closing book value|Opening book value|
||Foshan Huaxin Import &|||
|Accounts payable|||755,289.22|
||Export Co., Ltd.|||
||Foshan Huaxin Import &|||
|Accounts payable||30,359,297.02|111,529.20|
||Export Co., Ltd.|||
||Guangdong Guanhao High-tech|||
|Accounts payable||50,184.38|73,497.75|
||Industry Co., Ltd.|||
||Tianjin Port Free Trade Zone|||
|Accounts payable|Zhongwu Investment|12,906,627.84||
||Development Co., Ltd.|||
||Guangdong Guanhao High-tech|||
|Accounts payable|||4,452.00|
||Co., Ltd. Shanghai Branch|||
||Foshan Huaxin Development|||
|Other accounts payable||1,100,000.00||
||Co., Ltd.|||
||Guangdong Chengtong|||
|Other accounts payable||392,547.84|141,967.29|
||Logistics Co., Ltd.|||
||Dragon State|||
||Dragon State|||
|Other accounts payable|||164,247.77|
||International|||
||Foshan Huaxin Import &|||
|Other accounts payable|||300,000.00|
||Export Co., Ltd.|||
||China National Paper-industry|||
|Other accounts payable||14,355.00|173,750.00|
||Investment Corporation|||
||China Chengtong Holding|||
|Other non-current liabilities||418,750,000.00||
||Group Co., Ltd.|||
||China Chengtong Holding|||
|Interest payable||16,780,833.35|16,501,666.70|
||Group Co., Ltd.|||
||Chengtong financial Co.,|||
|Interest payable||196,000.00||
||Ltd.|||
||China Chengtong Holding|||
|long-term payable|||418,750,000.00|
||Group Co., Ltd.|||

2014 Annual Report of Foshan Huaxin Packaging 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 2.1 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 2.5 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.
8. Other
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable√ Inapplicable
2. The Stock payment settled by equity
□ Applicable√ Inapplicable
3. The Stock payment settled by cash
□ Applicable√ Inapplicable
4. Modification and termination of the stock payment
N/A
5. Other
XIV. Commitments or contingency
1. Significant commitments
Significant commitments at balance sheet date
(1) In Nov. 2012 theCompany’s sub-subsidiary Zhuhai Huafeng Paper Co., Ltd., signed huafeng paper advanced wastewater treatment and water reuse project engineering contract with Engineering Technology Research Institute of Guangdong Province, the project contract cost was RMB 3917700.00, as of Dec. 31, 2014, has paid RMB 2892400.00, there were RMB 1025300.00 remaining not paid, the contract has not yet been fulfilled.
(2) In Jul. 2014, theCompany’s sub-subsidiary Zhuhai Huafeng Paper Co., Ltd., signed respectively self-bring heating boiler environmental upgrading technical renovation project contract with Guangdong Province Environmental Engineering Equipment Company, Guangdong Zhengye Construction Co., Ltd., Zhuhai Kore Electric Co., Ltd., the contract price respectively was RMB 10660000.00, RMB 2686721.45 and RMB 1368000.00. As of 31 Dec. 2014, respectively RMB5, 863,000.00, RMB 600,000.00 had
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. been paid to the three contracts, and RMB 8,251,721.45 remained unpaid, the three contracts has not yet been fulfilled.
(3) On Oct. 2014, theCompany’s sub-subsidiary Zhuhai Huafeng Paper Co., Ltd., signed BM3 MES manufacturing execution system contract with the project contract cost RMB 4828526.00, as of 31 Dec. 2014, RMB 965705.16 has been paid, there was RMB 3862820.84 remained unpaid, the contract has not yet been fulfilled.
2. Contingency
(1) Significant contingency at balance sheet date
(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. On 25 Dec, Zhuhai Jinji Chemical Co., Ltd. filed a lawsuit on the dispute with Hong He Gu Company, Guangdong Jinwan District People's Court has accepted, as of the report issued day, the case was still pending. Zhuhai Jinji Chemical Co., Ltd. had individually withdrawn80% bad debt provision for the said other account receivable of RMB 500000 of Hong He Gu Company.
(2) 1. As at the year-end, Guangdong Regall Group Co., Ltd. (hereinafter referred to as “Regall Group”) owed a goods payment of RMB 9,919,562.58 to theCompany’s subsidiary Zhuhai S.E.Z Hongta Renheng Paper Co., Ltd. (hereinafter referred to as “Hongta Renheng”) (with an account age over three years). On 28 Mar. 2008, the said two parties signed an agreement on repayment with wood pulp. According to the said agreement, Regall Group should repay with wood pulp as the consideration, which should be executed before 15 May 2008. However, Regall Group has not accomplished the execution according to the said agreement. Up until 31 Oct. 2008, only RMB 3,099,200.00 had been executed as consideration for the debt. On 29 Oct. 2008, Hongta Renheng sent a Notice on Terminating Agreement to Regall Group, but Regall Group asked to continue the execution of the Agreement. On 6 Dec. 2008, Hongta Renheng submitted a bill of compliant on the goods payment dispute to Guangzhou HuangfuPeople’s Court, requesting the Court to terminate the agreement on repayment with wood pulp and asking Regall Group to repay the goods payment of RMB 10,047,398.58 and take the responsibilities thus caused. On 28 Jun. 2009, the Court issued the Civil Judgment Letter (2009) HMEC Zi No.72, deciding to declare theCompany’s Notice on Terminating Agreement legally null. Hongta Renheng appealed to Guangzhou IntermediatePeople’s Court against the decision and Guangzhou IntermediatePeople’s Court ruled that the case should be remanded for retrial in the Court of the first instance. On 12 Jun. 2010, the Court issued the Civil Judgment Letter (2010) HMEC Zi No.1, deciding to declare the Agreement on Set Debt off with Pulp Payment legal and effective. However, as Regall Groupwasn’t able to fulfill liability of supplying pulp, it should pay RMB 9,786, 596.96 back to Hongta Renheng. Regall Group appealed to Guangzhou IntermediatePeople’s Court against the decision. On 25 Nov. 2010, in accordance with the Civil Judgment Letter (2010) SZFMEZ Zi No. 1851, the Court rejected the appeal and maintained the original judgment. Up until the date of this Report, RMB 127,836.00 of executed account was received. Hongta Renheng has withdrawn100% bad debt provision for the said account receivable at full amount.
(3) As at the year-end, Zhuhai Eastern Zhengtai Power Equipment Co., Ltd. owed a goods payment of RMB 2,925,825.54 to Hongta Renheng. In line with Civil Judgment (2010) XMEC Zi No.641, Hongta Renheng won the appeal and Zhuhai East Zhengtai Power Equipment Co., Ltd. should pay loans of RMB 2,405,789.44 and its penalty back to Hongta Renheng as a result. Zhuhai East Zhengtai Power Equipment Co., Ltd. filed an appeal 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) Up until the year-end, Zhuhai Gongbei Ronghui Trade Co., Ltd. owed a goods payment of RMB 1,016,655.73 to Hongta Renheng.
Hongta Renheng won the appeal at the first instance in accordance with the Civil Judgment Letter (2009) XMEC Zi No. 2174.
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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 at the year-end, Shenzhen Xieji Industry Co., Ltd. owed a goods payment of RMB 3,760,350.10 to Hongta Renheng, in accordance with Civil Judgment Letter (2011) SZFMEZ Zi No. 1318, Hongta Renheng won the appeal. Hongta Renheng withdrew50% bad debt provision for the said account receivable in 2010. Up until the date of this Report, Hongta Renheng was preparing to appeal to the Court for executing the judgment, so it continued to withdraw50% bad debt provision for the said account receivable. (6) As at the year-end, Qingdao Donglu Packing Development Co., Ltd. owed a goods payment of RMB 450,000.00 to Hongta Renheng. Hongta Renheng won the appeal at the first instance in accordance with the Civil Judgment Letter (2010) NSC Zi No. 20678. And Hongta Renheng has 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 at the year-end, Foshan Jiahe Paper Trading Co., Ltd. owed a goods payment of RMB 4,902,239.70 to Hongta Renheng. Hongta Renheng won the appeal at the first instance in accordance with the Civil Judgment Letter (2011) FCFMEC Zi No. 852.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.
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
3. Other
As of the end of the reporting period, for the Company and its subsidiaries, undue bank acceptance bills with endorsement valued RMB 578,257,047.60, with the mature dates between Jan.-Jun. 2015. And there were no undue bank acceptance bills which had been discounted at period-end.
XV. Events after balance sheet date
1. Significant unadjusting events
Unit: RMB Yuan
|||||
|-|-|-|-|
|||Influence number to the||
||||Reason of unable to estimate|
|Item|Content|financial position and operating||
||||influence number|
|||results||

2. Profit distribution
Unit: RMB Yuan
|||
|-|-|
|Planning allocation of profits or dividends|7,581,375.00|
|Profits or dividends approved, reviewed and issue by the||
||7,581,375.00|
|declaration||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 3. Sales return
N/A
4. Notes of other significant events
N/A
XVI. Other significant events
1. Significant transactions and events have influence to the decisions of other investors.
1. In accordance with the Resolutions Made at the
2nd
Session of the
6th
Board of Directors of the Company on 23 Mar. 2015, the 2014 Annual Profits Distribution Plan was reviewed and approved at the 2015 AnnualShareholders’ General Meeting, with details as follows: Based on the total share capital of 505,425,000 shares as at 31 Dec. 2014, a cash dividend of RMB 0.15 (tax included) will be distributed for every 10 shares, representing a total dividend of RMB 7,581,375.
2. 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. And the total pre-fixed issuing amount of bonds by online and off-line were RMB 100,000,000.00 and RMB 700,000,000.00 respectively. 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. 3. The Company has signed Cooperation Agreement with Tetra Pak Asia Co., Ltd (hereinafter referred to as Tetra Pak Asia) and its four subsidiaries in China, which promised that Tetra Pak (Kunshan) Co., Ltd, Tetra Pak (Beijing) Co., Ltd, Tetra Pak (Hohhot) Co., Ltd, and Tetra Pak (Foshan) Co., Ltd, hope to entrust the Company to arrange production of specific products satisfied requirements of Tetra Pak with current production specifications of the four companies and other affiliated companies. For the future devoted time, material and financial resources, Tetra Pak Asia would pay RMB 150,000,000 as cooperation costs to the Company according to regulations in this Agreement. The cooperation costs are net amounts deducted25% corporate income tax and5% business tax. The cooperation costs would be paid by year within three years.
4 The Company held the 4th Meeting of the Sixth Session of the Board of Directors on 22 Oct. 2014 and held the Second Special Meeting of the General Shareholds on 10 Nov. 2014, the meeting reviewed and approved the Proposal of the Issue of Medium-Term Notes. According to the need of the financial situation and production operation, the Company planed to apply to the Bank of China Dealers Association for no more than RMB five hundred million of the medium-term notes, all the raise capital will be used to supplement cash flow and working capital of the company. In the end of reporting period, the medium-term notes were not officially released. 5. The Company held the 4th Meeting of the Sixth Session of the Board of Directors on 22 Oct. 2014, the meeting reviewed and approved the Proposal of Closing and Liquidating Foshan Chengtong Paper Co., Ltd., determined to close Foshan Chengtong Paper Co., Ltd., and make liquidation to it. On 18 Feb. 2014, Letter of about Cooperating
with Foshan Chancheng District North Area Planning the Implementation of Upgrade of Foshan City People's
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Government Office (FFBH No.[2014]91), Foshan Chengtong Paper Co., Ltd. was located on urban area of Foshan, and the implementation and upgrade of central axis of urban planning of Foshan, its location was included in the upgrade scope of “Northern Portal Section”, Foshan Chengtong Paper Co.,Ltd.‘s industry type did not conform to the requirements of city planning of Foshan , in Feb. 2014, in response to the localgovernment’s requirements, conducted staff resettlement , then entered long shutdown state.
6. Foshan Chengtong Paper Co., Ltd has prosecuted its customer, Jiangsu Wangda Paper Package Co., Ltd and DongguanHong’an Paper Package Co., Ltd, for malicious delinquent payment on 24 June, 2013 and 5 July, 2013 respectively. At present the lawsuits are filed for property preservation. Until 31 Dec. 2014, cases of DongguanHong’an and Jiangsu Wangda have been decided by ChanchengPeople’s Court that the prosecution, Foshan Chengtong Paper Co., Ltd, won the lawsuit and supported all claims from Foshan Chengtong Paper Co., Ltd (all payment for goods, liquidated damages, court costs, and property preservation costs for RMB 12,716,900 together; DongguanHong’an and Jiangsu Wangda shall undertake all liabilities for satisfaction). At present, the judgment is publicly announced and in execution by stages.
XVII. 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|||||
||||Provision for bad||||||||
||Book balance|||||Book balance||Provision for bad debts|||
|Category|||debts||Book||||||
|||||||||||Book value|
|||Proportio|||||Proportio||||
||Amount||Amount|Amount|value|Amount||Amount|Amount||
|||n (%)|||||n (%)||||
|Accounts receivable|||||||||||
|withdrawal of bad|||||||||||
||42,393,5||||42,393,54|51,991.|||||
|debt provision of by||100.00%|||||100.00%|||51,991.20|
||40.95||||0.95|20|||||
|credit risks|||||||||||
|characteristics:|||||||||||
||42,393,5||||42,393,540.95|51,991.||||51,991.20|
|Total||100.00%|||||100.00%||||
||40.95|||||20|||||

Accounts receivable with insignificant single amount but large risks of groups after grouping by credit risks characteristics at the end of reporting period.
□ Applicable√ Inapplicable
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√Applicable□ Inapplicable
Unit: RMB Yuan
|||||
|-|-|-|-|
||Closing balanceAccounts receivable Provision for bad debts Proportion (%)|||
|Aging||||
|||Provision for bad debts|Proportion (%)|
|Subentry within 1 year||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|1-3 months|42,393,540.95|100.00%|
|Subtotal of within 1 year|42,393,540.95|100.00%|
|Total|42,393,540.95|100.00%|

 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) Top five of account receivable of closing balance collected by arrears party
|||||
|-|-|-|-|
|Name of the entity|Relationship|Amount|Year|
|Tetra Pak (Foshan) Co., Ltd.|Non-related party|14,049,439.54|Within 3months|
|Tetra Pak (Beijing) Co., Ltd.|Non-related party|12,727,632.85|Within 3months|
|Tetra Pak (Kunshan) Co., Ltd.|Non-related party|10,999,391.91|Within 3months|
|Tetra Pak (Huhhot) Co., Ltd.|Non-related party|4,617,076.65|Within 3months|
|Total:||42,393,540.95||

2. Other account receivable
(1) Other account receivable classified by category
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||||Provision for bad||||||||
||Book balance|||||Book balance||Provision for bad debts|||
|Category|||debts||Book||||||
|||||||||||Book value|
||Amount|Proportio||Proportion (%)|||Proportio||Proportion||
||||Amount||value|Amount||Amount|||
|||n (%)|||||n (%)||(%)||
|Accounts receivable|1,437,567,917.18||||||||||
|withdrawal of bad||||||1,689,3|||||
||||||1,437,567|||||1,689,379,0|
|debt provision of by||100.00%||||79,067.|100.00%||||
||||||,917.18|||||67.73|
|credit risks||||||73|||||
|characteristics:|||||||||||
||1,437,567,917.18||||1,437,567,917.18|1,689,3||||1,689,379,067.73|
|Total||100.00%||||79,067.|100.00%||||
|||||||73|||||

Other accounts receivable with insignificant single amount but large risks of groups after grouping by credit risks characteristics at
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. the end of reporting period
□ 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 account receivable|Provision for bad debts|Proportion (%)|
|Subentry within 1 year||||
|1-3 months|107,017,527.56||7.45%|
|4-12 months|306,206,741.73||21.30%|
|Subtotal of within 1 year|413,224,269.29||28.75%|
|1-2 years|649,508,977.26||45.18%|
|2-3 years|123,228,772.66||8.57%|
|Over 3 years|251,605,897.97||17.50%|
|Total|1,437,567,917.18||100.00%|

 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) Other account receivable classified by account nature
Unit: RMB Yuan
||||
|-|-|-|
|Nature|Closing book value|Opening book value|
|Group 1—Consolidate statement entity|1,372,824,049.15|1,648,679,453.73|
|Group2?—aging analysis|64,743,868.03|40,699,614.00|
|Total|1,437,567,917.18|1,689,379,067.73|

 (3)The top five other account receivable classified by debtor at period end
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||Closing balance of|
|Entity|Nature|Closing balance|Aging|Proportion%||
||||||bad debt provision|
|Zhuhai Huafeng|Come-and-go|||||
|||75,225,111.11|1-2years|5.23%||
|Paper Co., Ltd.|money, interests|||||
|Foshan Chengtong|Come-and-go|||||
|||483,192,233.34|2-3 years|33.61%||
|Paper Co., Ltd.|money, interests|||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|Zhuhai S.E.Z. Hongta|Come-and-go||||
|Renheng Paper Co.,|money, interests|660,710,388.89|1-3 years|45.96%|
|Ltd.|||||
|Huaxin (Foshan)|Come-and-go||||
|Color Printing Co.,|money, interests|153,696,315.81|1-2 years|10.69%|
|Ltd.|||||
|Foshan Chancheng|Land funds||||
|||64,499,000.00|1-3 months|4.49%|
|Land Reserve Center|||||
|Total|--|1,437,323,049.15|--|99.98%|

3. Long-term equity investment
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||bad debt|||bad debt||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Investment to thesubsidiary|||||||
||1,280,107,442.14||1,280,107,442.14|1,280,107,442.14||1,280,107,442.14|
|Investment tojoint ventures andassociatedenterprises|||||||
||238,518,574.19||238,518,574.19||||
|Total|1,518,626,016.33||1,518,626,016.33|1,280,107,442.14||1,280,107,442.14|

 (1) Investment to the subsidiary
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||||||Withdrawn||
|||||||Closing balance|
||||||impairment||
|Entity|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|5,000,000.00||||||
|||||5,000,000.00|||
|Package Printing|||||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Co., Ltd.|||
|Total|1,280,107,442.14|1,280,107,442.14|

(2) Investment to joint ventures and associated enterprises
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase/decrease in reporting period||||||||||
|||||Investme|||||||Closing|
||||||Adjustme|||||||
|||||nt profit||||Withdraw|||balance|
|||Additiona|||nt of||Declarati|||||
|Name of|Opening||Negative|and loss||Other||n||Closing|of|
|||l|||other||on of cash|||||
|investee|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||||||||||||
|Chengton||||||||||||
|g||231,450,2||7,068,374||||||238,518,5||
|financial||00.00||.19||||||74.19||
|Co., Ltd.||||||||||||
|||231,450,2||7,068,374||||||238,518,5||
|Subtotal||||||||||||
|||00.00||.19||||||74.19||
|||231,450,2||7,068,374||||||238,518,574.19||
|Total||||||||||||
|||00.00||.19||||||||

(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 the first half of 2014.
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
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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. 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 transafer20% 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.
4. Revenues and operating costs
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Reporting period||Same period of last year||
|Item|||||
||Revenues|Operating costs|Revenues|Operating costs|
|Main operations|218,075,280.68|218,075,280.68|153,119,961.48|153,119,961.48|
|Other operations|70,182,959.97||70,175,358.60||
|Total|288,258,240.65|218,075,280.68|223,295,320.08|153,119,961.48|

 Other notes:
5. Investment income
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Long-term equity investment income|||
||7,068,374.19||
|accounted by equity method|||
|Total|7,068,374.19||

6. Other
XVIII. Supplementary materials
1. Items and amounts of extraordinary gains and losses
√ Applicable□ Inapplicable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount|Note|
|Gains/losses on the disposal of non-current|24,546,653.22||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|assets|||
|Tax rebates, reductions or exemptions due to|||
|approval beyond authority or the lack of|14,044,743.94||
|official approval documents|||
|Other non-operating income and expenses|||
||4,027,332.47||
|other than the above|||
|Less: Income tax effects|7,172,671.53||
|Minority interests effects|8,188,626.62||
|Total|27,257,431.48|--|

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||0.16|0.16|
||4.70%|||
|shareholders of the Company||||
|Net profit attributable to common||||
|shareholders of the Company after||||
||3.19%|0.11|0.11|
|deduction of non-recurring profit||||
|and loss||||

3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese accounting standards
□ Applicable√ Inapplicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards
□ Applicable√ Inapplicable
4. Supplementary materials of changes in accounting policies
√ Applicable□ Inapplicable
The Company according to such eight accounting rules of Accounting Standards for Enterprises No.2—Long Term Equity
Investment released in 2014 by Ministry of Finance change related accounting policies and retroactive restate the comparative
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. financial statements, after restatement, the consolidated balance sheet of 1 Jan. 2013 and 31 Dec. 2013:
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|1 Jan. 2013|31 Dec. 2013|31 Dec. 2014|
|Current Assets:||||
|Monetary funds|478,856,596.14|201,666,231.22|474,549,403.56|
|Notes receivable|480,257,032.09|362,998,502.84|345,827,854.88|
|Accounts receivable|971,593,562.06|867,805,009.95|837,978,587.68|
|Accounts paid in advance|179,421,134.87|207,761,823.07|181,932,527.24|
|Other account receivable|29,274,074.78|66,085,747.47|106,548,714.08|
|Inventories|1,018,382,145.92|780,502,680.31|942,156,138.62|
|Other current assets|||8,212,679.56|
|Total current assets|3,157,784,545.86|2,486,819,994.86|2,897,205,905.62|
|Non-current assets:||||
|Available-for-sale|||113,558.00|
||3,513,991.40|4,976,178.84||
|financial assets||||
|Long term equity|||246,747,332.67|
||6,671,850.47|7,606,994.20||
|investment||||
|Investment property|9,942,981.44|16,380,804.64|12,605,907.08|
|Fixed assets|2,979,056,238.05|2,964,629,037.82|2,926,710,908.66|
|Construction in progress|79,155,016.60|113,869,930.02|154,209,661.31|
|Intangible assets|144,128,514.79|117,213,820.33|129,264,164.34|
|R&D expense||12,554,942.88|12,556,242.88|
|Goodwill|11,547,305.29|11,547,305.29|11,547,305.29|
|Long-term unamortized|||510,136.71|
||777,863.44|929,287.66||
|expenses||||
|Deferred income tax assets|36,503,345.40|36,738,164.07|35,246,535.27|
|Other non-current assets|||7,409,367.68|
|Total non-current assets|3,271,297,106.88|3,286,446,465.75|3,536,921,119.89|
|Total assets|6,429,081,652.74|5,773,266,460.61|6,434,127,025.51|
|Current liabilities:||||
|Short-term loans|1,212,158,914.28|746,518,360.93|1,130,267,087.23|
|Notes payable|21,440,149.18|7,208,770.58|68,436,123.39|
|Accounts payable|326,507,829.98|305,340,312.40|442,828,366.71|
|Accounts received in|||23,232,010.74|
||28,987,800.81|41,644,176.60||
|advance||||

2014 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|Payroll payable|22,133,675.39|39,051,200.53|32,322,152.63|
|Tax payable|89,539,824.80|20,193,255.40|22,020,173.90|
|Interest payable|25,040,571.55|28,765,634.67|29,816,504.46|
|Dividends payable|60,563,595.31|9,732,961.09|170,913.00|
|Other account payable|31,256,027.83|25,645,628.13|21,260,151.32|
|Non-current liabilities due|||418,750,000.00|
|within 1 year||||
|Total current liability|1,817,628,389.13|1,224,100,300.33|2,189,103,483.38|
|Non-current liabilities:||||
|Bonds payable|796,481,868.00|793,330,251.65|794,912,384.37|
|Long-term payables|529,400,000.00|461,462,266.00|10,506,735.99|
|Estimated liabilities|2,967,023.46|7,146,269.00|7,431,237.75|
|Deferred income|2,636,000.00|8,810,000.00|6,648,333.32|
|Deferred income tax|||2,805,584.00|
||5,449,332.25|3,324,001.75||
|liabilities||||
|Total non-current liabilities|1,336,934,223.71|1,274,072,788.40|822,304,275.43|
|Total liabilities|3,154,562,612.84|2,498,173,088.73|3,011,407,758.81|
|Owners’ equity (or||||
|shareholders’ equity)||||
|Paid-up capital (or share|||505,425,000.00|
||505,425,000.00|505,425,000.00||
|capital)||||
|Capital reserves|261,931,302.59|256,822,373.42|256,822,373.42|
|Other comprehensive income|159,887.68|627,641.83|169,714.39|
|Surplus reserves|170,337,106.09|179,240,134.80|187,280,095.40|
|Retained profits|768,206,504.60|787,821,828.63|863,066,727.26|
|Total equity attributable to|||1,812,763,910.47|
||1,706,059,800.96|1,729,936,978.68||
|owners of the Company||||
|Minority interests|1,568,459,238.94|1,545,156,393.20|1,609,955,356.23|
|Total owners’ (or||3,275,093,371.88|3,422,719,266.70|
||3,274,519,039.90|||
|shareholders’) equity||||
|Total liabilities and owners’|||6,434,127,025.51|
||6,429,081,652.74|5,773,266,460.61||
|(or shareholders’) equity||||

5. Other
2014 Annual Report of Foshan Huaxin Packaging Co., Ltd. Section XII. Documents Available for Reference
The investors and relevant departments can access to the materials in the Office of the Board of Directors of the Company as follows:
1. Financial statements with the signatures and seals of the legal representative, principal of accounting work, and manager of finance department;
2. Originals ofAuditors’ Report with the seals of the CPAs firm and the signatures& seals of the certified public accountants;
3. Texts of all theCompany’s documents ever disclosed on http://www. cninfo.com.cn in the reporting period, and the originals of the public notices.
4. The text of the 2014 Annual Report with the authentic signature of the Chairman of the Board of Directors. The Board of Foshan Huaxin Packaging Co.,Ltd.. March 23, 2015