The Abstract of the 2015 Annual Report of Foshan Huaxin Packaging Co., Ltd. Stock code: 200986 Stock abbreviation: FSHXP B Public Announcement No.: 2016-027 Foshan Huaxin Packaging Co., Ltd.
The Abstract of the 2015 Annual Report
I. Important information
This Abstract is based on the full text of the Annual Report. In order for a full understanding of the operating results, financial condition and future development planning of the Company, investors are kindly reminded to read the full text carefully on the media designated by the China Securities Regulatory Commission (the “CSRC”).
This Abstract is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version shall prevail.
Statement
Except for the following directors, the other directors all attended in person the board meeting for the review of the Annual Report.
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|-|-|-|-|
|||Reason for not attending in||
|Name|Office title||Proxy|
|||person||
|Zhang Wenjing|Independent Director|For reason of work|Yang Zhenyu|

Non-standardauditor’s opinion
□ Applicable√ Inapplicable
Preliminary plan for profit distribution to the common shareholders or turning the capital reserve into the share capital for the reporting period, which has been reviewed and approved at the board meeting
√ Applicable□ Inapplicable
Share capital increase from the capital reserve
□ Yes√ No
Preliminary plan for profit distribution to the common shareholders for the reporting period which has been reviewed and approved at the board meeting: Based on the total 505,425,000 shares, a cash dividend of RMB0.38 (tax included) will be distributed to all the shareholders for every 10 shares that they hold. No bonus shares will be granted and no capital reserve will be turned into share capital.
Preliminary plan for profit distribution to the preference shareholders for the reporting period which has been reviewed and approved at the board meeting
□ Applicable√ Inapplicable
Company profile
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|Stock abbr.|FSHXP B|Stock code||200986|
|Stock exchange|Shenzhen Stock Exchange||||
|Contact information|Company Secretary||Securities Affairs Representative||
|Name|Mr. Yang Yinghui||Mr. Jiang Zhuowen||
||20/F, Jinghua Building, No. 18, the 5th JihuaRoad, Foshan, Guangdong Province, P.R.C.||19/F, Jinghua Building, No. 18, the 5th JihuaRoad, Foshan, Guangdong Province, P.R.C.||
|Office address|||||
|Fax|0757-83992026||0757-83992026||
|Tel.|0757-83992076||0757-83992076||
|E-mail address|yyh-hxbz@chinapaper.com.cn||jzw-hxbz@chinapaper.com.cn||

II. Brief introduction to the main business or products in the reporting period
The Company aims to be a green packaging material provider covering design, manufacture and service. It specializes in theR&D, production and sales of machine-made paper and paperboard, color printing and the latex and calcium carbonate used for paper making. The ivory board is a product of theCompany’s main business, which accounts for a majority of theCompany’s business revenue. TheR&D, production and sales of the ivory board is mainly undertaken by Zhuhai S.E.Z Hongta Renheng Paper Co., Ltd. and Zhuhai Huafeng Paper Co., Ltd.. The coated ivory board, as a category of ivory board, is a kind of packaging paper with wide applications (it can be used as the packaging box for daily chemical products, electronics products, and cigarette, paper handbags,
various paper box, cards, paper cups, food packaging, and liquid food packaging, etc.). In general, it can be divided into the social
ivory board and tobacco packaging board. Over the years, as the hygienic conditions for the paper increase, new categories such as
the food grade ivory board and the liquid food packing paper have emerged. As one of the first companies that go into the ivory
board production field in China, the Company has always been devoted to the production and sales of the high-end ivory board, with
its customers mainly demanding for the tobacco packaging board, the food grade ivory board, etc. In recent years, the Company
The Abstract of the 2015 Annual Report of Foshan Huaxin Packaging Co., Ltd. continuously development new products, adjusting the product and customer structure, expanding the proportion of food grade board, liquid food packaging papers and mid-range tobacco packaging board in the total production and sales amount.
III. Accounting and financial highlights
1. Accounting and financial highlights for the past three years
Does the Company adjust retrospectively or restate the accounting data of previous years due to changes in the accounting policy or corrections of accounting errors?
□ Yes√ No
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||||Increase/decrease of||
||2015|2014|current year over last|2013|
||||year||
|Operating revenues|3,282,043,995.12|3,552,698,716.17|-7.62%|4,006,109,812.66|
|Net profits attributable to|133,094,696.66|83,284,859.23|||
||||59.81%|79,060,852.74|
|shareholders of the Company|||||
|Net profits attributable to|||||
|shareholders of the Company after|11,175,961.64|56,027,427.75|-80.05%|31,046,179.76|
|extraordinary gains and losses|||||
|Net cash flows from operating|613,491,329.76|479,890,329.98|||
||||27.84%|821,251,323.61|
|activities|||||
|Basic EPS (RMB Yuan/share)|0.26|0.16|62.50%|0.16|
|Diluted EPS (RMB Yuan/share)|0.26|0.16|62.50%|0.16|
|Weighted average ROE (%)|7.10%|4.70%|2.40%|4.61%|
||||Increase/decrease of||
||As at 31 Dec. 2015|As at 31 Dec. 2014|current year-end than|As at 31 Dec. 2013|
||||last year-end||
|Total assets|6,059,337,427.41|6,434,127,025.51|-5.83%|5,773,266,460.61|
|Net assets attributable to|1,938,277,232.13|1,812,763,910.47|||
||||6.92%|1,729,936,978.68|
|shareholders of the Company|||||

2. Accounting highlights by quarter
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Q1|Q2|Q3|Q4|
|Operating revenues|770,917,814.66|809,017,692.83|832,624,532.55|869,483,955.08|
|Net profits attributable to|924,536.92|11,639,642.77|9,227,754.12|111,302,762.85|
|shareholders of the Company|||||
|Net profits attributable to|-456,555.81|7,849,115.93|6,699,935.16|-2,916,533.64|
|shareholders of the Company after|||||
|extraordinary gains and losses|||||
|Net cash flows from operating|110,920,169.38|192,187,074.13|61,139,767.33|249,244,318.92|
|activities|||||

Any material differences between the financial indicators above or their summations and those which have been disclosed in quarterly or semi-annual reports?
□ Yes√ No
IV. Share capital and shareholders
1. Numbers of the common shareholders and the preference shareholders with resumed voting rights as
well as the shareholdings of the top 10 shareholders
Unit: share
The Abstract of the 2015 Annual Report of Foshan Huaxin Packaging Co., Ltd.
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||||||||Total||||||
||||||||number||||||
||||||||of||||||
||||||||||Total number of||||
|Total|||||||preferenc||||||
||||Total number of||||||preference||||
|number of|||||||e||||||
||||common shareholders||||||shareholders with||||
|common|||||||sharehold||||||
||14,170||at pervious month-end||14,170|||0|resumed voting||0||
|shareholder|||||||ers with||||||
||||of this Report’s||||||rights at pervious||||
|s at|||||||resumed||||||
||||disclosure||||||month-end of this||||
|period-end|||||||voting||||||
||||||||||Report’s disclosure||||
||||||||rights at||||||
||||||||period-en||||||
||||||||d||||||
|Shareholdings of top 10 shareholders|||||||||||||
||||||Total shares|||||Pledged or frozen shares|||
|Name of||Nature of||Shareholding|||||||||
||||||held at|Number of restricted shares held||||Status of||Number of|
|shareholder||shareholder||percentage|||||||||
||||||period-end|||||shares||shares|
|FOSHANHUAXINDEVELOPMENT CO., LTD.||State-ownedcorporation||65.20%|329,512,030|329,512,030|||||||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED||Foreigncorporation||0.81%|4,084,905||||||||
|WUHAOYUAN||Foreignindividual||0.42%|2,561,991||||||||
|VANGUARDTOTALINTERNATIONAL STOCKINDEX FUND||Foreigncorporation||0.27%|1,362,902||||||||
|NORGESBANK||Foreigncorporation||0.27%|1,352,720||||||||
|ESSENCEINTERNATIONALSECURITIES(HONGKONG) CO.,LTD.||Foreigncorporation||0.26%|1,305,152||||||||
|BOCISECURITIESLIMITED||Foreigncorporation||0.25%|1,280,990||||||||
|WUFENQIANG||Domesticindividual||0.24%|1,233,901||||||||
|FOSHANCHAN BENDEDEVELOPMENT CO., LTD.||State-ownedcorporation||0.23%|1,139,420|1,139,420|||||||
|MIAO JUN||Domesticindividual||0.22%|1,119,200||||||||
|Related or acting-in-concert||||It is unknown to the Company whether there exists associated relationship among the|||||||||
|parties among shareholders||||shareholders above or they are acting-in-concert entities as stipulated in the Administrative|||||||||
|above||||Measures on Information Disclosure of Changes in Shareholding of Listed Companies.|||||||||

The Abstract of the 2015 Annual Report of Foshan Huaxin Packaging Co., Ltd. 2. Number of the preference shareholders and the shareholdings of the top 10 of them
□ Applicable√ Inapplicable
No preference shareholders in the reporting period
3. Relationship between the Company and its actual controller in the form of diagram
SASAC
100%
China Chengtong Holding Group
Co., Ltd
100%
78.26%
China National Paper Industry
Investment Corp.
66.79%
Jiacheng Forestryry Holdings
Co., Ltd.
0.11%
Foshan Huaxin Development Co.,
6.62%
Ltd
65.2% 34.69%
Other sponsors shareholders Foshan Huaxin Packaging Co., Ltd
& shareholders of B share V. Discussion and analysis by the management
1. Business review for the reporting period
During the reporting period, the white cardboard production industry which the Company involved in was still in the low state that mainly due to the slow increase of the paper demand, and the release of he newly increased the capacity was still in the progress, which may be estimated to take a rather long time to digest newly increased capacity. Influenced by which, the competition method among the subdivided trade structure was based on the price competition and each competitor among the industry snatched the market share one after another, which led to a certain decline of the price of the high-and-medium grade white cardboard that caused a distinct drop in the prices of theCompany’s mainproduct—the ivoryboard—and pressed greatly on the operation.
For handling with the difficulties, the Company executed the internal and external “both hands” on basis of “product structure adjustment” of the recent two years. On the one hand, the Company promoted the “lean production” among the internal management for digging out the “profits maintain point” from the “internal part”; on the other hand, to further and deepen optimize the production structure and to take advantage of the self liquid package paper technology and try to raise the rate of sale of liquid packing board to seek for new “profit increase point” from the “external part” with the white cardboard business maintained the profitable as well as stable state. The papermaking chemical industry business of the Company influence by the overall weak of the papermaking industry and by the market squeeze and the fluctuation of the production price from the intensifying competition, the gross profit rate declined and the profits decreased. And influenced by the demand contraction of the down stream customers of the printing business, the
operating income of the Company failed to increase but owning to the release of the newly increase printing capacity, the fixed assets
The Abstract of the 2015 Annual Report of Foshan Huaxin Packaging Co., Ltd. depreciation increased as well as the profits fell after rise.
2. Significant changes in the main business in the reporting period
□ Yes√ No
3. Products contributing over10% of the main business revenue or profit
√ Applicable□ Inapplicable
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||||Operating||Gross profit|
||Operating||Gross profit||Operating profit:||
|Product||Operating profit||revenue: YoY||margin: YoY|
||revenue||margin||YoY +/-%||
|||||+/-%||+/-%|
|Ivory board|2,820,881,163.79|75,027,870.13|16.57%|-2.51%|-24.03%|0.89%|
|Printing materials|245,352,660.29|5,714,065.66|18.18%|-0.90%|-46.79%|-2.09%|
|Rubber latex|136,811,844.75|19,350,769.50|17.13%|-33.91%|-53.98%|-4.06%|

 4. Seasonal or periodic characteristics in the operating performance that need special attention
□ Yes√ No
5. Significant YoY changes in the operating revenues, operating costs and net profits attributable to the common shareholders or their composition
√ Applicable□ Inapplicable
In the reporting period, the Company achieved high earnings from the disposal of the equity interests in its controlled subsidiary Foshan Chengtong Paper Co., Ltd., resulting in a59.81% YoY increase in its net profits attributable to the shareholders of the Company.
6. Listing suspension or termination
□ Applicable√ Inapplicable
VI. Issues related to the financial report
1. YoY changes in the accounting policy, accounting estimation and measurement methods
□ Applicable√ Inapplicable
No changes
2. Retrospective restatements due to correction of significant accounting errors in the reporting period□ Applicable√ Inapplicable
No such cases
3. YoY changes in the consolidation scope
√ Applicable□ Inapplicable
There was 1 increased and 1 decreased of the main entities included in the scope of the consolidated financial statement of the
reporting period when compared to the last period, of which:
1. Subsidiary newly included in the consolidated scope of the reporting period
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|Name|Reason of alternation|
|Pinghu Huaxin Packaging Materials Science &|Newly built up a subsidiary of the reporting period|

The Abstract of the 2015 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||
|-|
|Technology Co., Ltd.|

2. Subsidiary not longer be included in the consolidated scope of the reporting period
|||
|-|-|
|Name|Reason of alternation|
|Foshan Chengtong Paper Co., Ltd.|Disposal of the subsidiaries of the reporting period|

The Company disposed the controlling subsidiary-Foshan Chengtong Paper Co., Ltd. at the year-end of 2015 and according to the regulations of the accounting policies, the revenues, expenses and profits should be included in the consolidated statement of income from the period-begin to the disposal date of the business or subsidiaries which disposed by the Company during the reporting period; and the cash flow from the period-begin to the disposal date of the subsidiary or the business should be included in the consolidated cash flow statement; of which the assets, liabilities and theowners’ interests should not be included in the consolidated statement at the year-end.
4. Explanation by the Board of Directors and the Supervisory Committee concerning the “non-standardauditor’s report” issued by the CPAs firm for the reporting period
□ Applicable√ Inapplicable
The Board of Foshan Huaxin Packaging Co.,Ltd.. March 18, 2016