Report forr the First Quarrter of 2018 of SShandong Chennming Paper Hooldings Limitedd SHANNDONGG CHENNMINGG PAPEER HOLLDINGGS LIMITED 20018 Firstt Quarterly Repoort
AApril 20118
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited I Important Notice
The board of directors (the “Board”), the supervisory committee (the“Supervisory Committee”), the directors (the “Director”), supervisors (the “Supervisors”) and senior management (the “Senior Management”) of the Company hereby warrant that the contents of this quarterly report are true, accurate and complete, and there are no false representations, misleading statements or material omissions, and are jointly and severally responsible for the liabilities of the Company.
All Directors were present at the Board meeting to consider and approve this quarterly report.
Chen Hongguo, the head of the Company, Hu Jinbao, the head in charge of accounting, and Zhang Bo, the head of the accounting department（Accounting Officer), declare that they warrant the truthfulness, accuracy and completeness of the financial statements in this quarterly report.
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited II. General Information of the Company
I. Major financial data and financial indicators
Retrospective adjustment to or restatement of the accounting data for prior years by the Company
□ Yes√ No
|||||
|-|-|-|-|
||||Increase/decrease compared|
|||Corresponding period of||
||The reporting period||to the corresponding period|
|||prior year||
||||of the prior year|
|Revenue (RMB)|7,241,811,895.12|6,274,273,821.63|15.42%|
|Net profit attributable to shareholders of the|782,500,357.98|702,517,923.91||
||||11.39%|
|Company (RMB)||||
|Net profit after extraordinary gains or losses||||
|attributable to shareholders of the Company|733,118,818.26|615,479,547.22|19.11%|
|(RMB)||||
|Net cash flows from operating activities|1,267,680,953.19|-1,799,933,755.66||
||||170.43%|
|(RMB)||||
|Basic earnings per share (RMB per share)|0.31|0.29|6.90%|
|Diluted earnings per share (RMB per share)|0.31|0.29|6.90%|
|Rate of return on net assets on weighted||||
||3.32%|3.67%|-0.35%|
|average basis||||
||||Increase/decrease as at the|
||As at the end of the|As at the end of the prior|end of the reporting period|
||reporting period|year|compared to the end of the|
||||prior year|
|Total assets (RMB)|107,080,769,428.79|105,625,096,076.92|1.38%|
|Net assets attributable to shareholders of the|28,743,611,313.74|27,778,529,074.90||
||||3.47%|
|Company (RMB)||||

Items and amounts of extraordinary gains or losses
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
||Amounts for the period from||
|Item|the beginning of the year to|Note|
||the end of the reporting period||
|Profit or loss from disposal of non-current assets (including|-833,628.51||
|write-off of provision for assets impairment)|||
|Government grants (except for the government grants closely|||

Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
||||
|-|-|-|
|related to the normal operation of the Company and granted|33,384,235.89||
|constantly at a fixed amount or quantity in accordance with a|||
|certain standard based on state policies) accounted for in profit|||
|or loss for the current period|||
|Except for effective hedging business conducted in the ordinary|||
|course of business of the Company, gain or loss arising from the|||
|change in fair value of financial assets held for trading and|18,500,000.00||
|financial liabilities held for trading, as well as investment gains|||
|from disposal of financial assets held for trading and financial|||
|liabilities held for trading and available-for-sale financial assets|||
||2,332,415.27||
|Non-operating income and expenses other than the above items|||
||3,695,386.20||
|Less: Effect of income tax|||
||306,096.73||
|Effect of minority interest (after tax)|||
||49,381,539.72||
|Total||--|

Notes for theCompany’s extraordinary gain or loss items as defined in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No.1 - Extraordinary Gains or Losses and the extraordinary gain or loss items as illustrated in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No.1 - Extraordinary Gains or Losses defined as its recurring gain or loss items.
□ Applicable√ Not applicable
No extraordinary gain or loss items as defined or illustrated in the Explanatory Announcement on Information Disclosure for
Companies Offering Their Securities to the Public No.1 - Extraordinary Gains or Losses were defined by the Company as its
recurring gain or loss items during the reporting period.
II. Total number of shareholders and the shareholding of the top ten shareholders as at the end of the reporting period
1. Total number of shareholders of ordinary shares and shareholders of preference shares with restored voting rights and the shareholding of the top ten shareholders
Unit: share
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Total number of shareholders||||
|Total number of shareholders of|98,301, of which 79,067were holders of A||||of preference shares with||||
|ordinary shares as at the end of the|shares, 18,866 were holders of B shares and||||restored voting right as at the|||0|
|reporting period|368 were holders of H shares||||end of the reporting period (if||||
||||||any)||||
|Shareholding of top 10 shareholders|||||||||
|Name of shareholders||Nature of|Percentage of|Number of||Number of|Share pledged or||

Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
||||||||||
|-|-|-|-|-|-|-|-|-|
||shareholders|shareholding||shares held|restricted|locked-up|||
||||||shares held|Status of|||
|||||||||Number|
|||||||shares|||
|SHOUGUANG CHENMING HOLDINGSCOMPANY LIMITED|State-ownedlegal person|15.13%||293,003,657|0||||
|||||||Pledged||193,939,100|
|HKSCC NOMINEES LIMITED|Overseas legalperson|12.85%||248,905,750|0||||
|CHENMING HOLDINGS (HONG KONG)LIMITED|Overseas legalperson|12.54%||242,754,375|0||||
|CENTRAL HUIJIN ASSETMANAGEMENT LTD.|State-ownedlegal person|2.07%||40,137,900|0||||
|JIAO Yanxi|Domestic natureperson|0.52%||9,978,637|0||||
|CHINA UNIVERSAL FUND- CHINACONSTRUCTION BANK - CHINA LIFEINSURANCE - CHINA LIFEINSURANCE’SEQUITYPORTFOLIOENTRUSTED TO CHINAUNIVERSAL FUND|Others|0.47%||9,134,240|0||||
|VANGUARD EMERGING MARKETSSTOCK INDEX FUND|Overseas legalperson|0.44%||8,608,238|0||||
|INDUSTRIAL AND COMMERCIALBANK OF CHINA - CHINA UNIVERSALFOCUSED GROWTH FUND|Others|0.39%||7,500,009|0||||
|Chen Hongguo|Domestic natureperson|0.35%||6,696,296|5,022,222||||
|VANGUARD TOTAL INTERNATIONALSTOCK INDEX FUND|Overseas legalperson|0.33%||6,301,672|0||||
|Shareholding of the top ten shareholders of non-restricted shares|||||||||
||||Number of||Class of shares||||
|Name of shareholders|||non-restricted shares||||||
||||||Class of shares||Number||
||||held||||||
|SHOUGUANG CHENMING HOLDINGS COMPANY LIMITED|||293,003,657||RMB ordinary||||
||||||||293,003,657||
||||||shares||||
|HKSCC NOMINEES LIMITED|||248,905,750||Overseas listed||||
||||||||248,905,750||
||||||foreign shares||||
|CHENMING HOLDINGS (HONG KONG) LIMITED|||242,754,375||Domestic listed||||
||||||||140,478,375||
||||||foreign shares||||
||||||Overseas listed||102,276,000||

Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
||||||
|-|-|-|-|-|
||||foreign shares||
|CENTRAL HUIJIN ASSET MANAGEMENT LTD.||40,137,900|RMB ordinary||
|||||40,137,900|
||||shares||
|JIAO Yanxi||9,978,637|RMB ordinary||
|||||9,978,637|
||||shares||
|CHINA UNIVERSAL FUND- CHINA CONSTRUCTION BANK -CHINA LIFE INSURANCE - CHINA LIFE INSURANCE’SEQUITYPORTFOLIOENTRUSTED TO CHINA UNIVERSAL FUND||9,134,240|||
||||RMB ordinary||
|||||9,134,240|
||||shares||
|VANGUARD EMERGING MARKETS STOCK INDEX FUND||8,608,238|Domestic listed||
|||||8,608,238|
||||foreign shares||
|INDUSTRIAL AND COMMERCIAL BANK OF CHINA - CHINAUNIVERSAL FOCUSED GROWTH FUND||7,500,009|RMB ordinary||
|||||7,500,009|
||||shares||
|VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND||6,301,672|Domestic listed||
|||||6,301,672|
||||foreign shares||
|LSV EMERGING MARKETS EQUITY FUND,L.P.||6,102,800|Domestic listed||
|||||6,102,800|
||||foreign shares||
||A shareholder, Chenming Holdings (Hong Kong) Limited, which is an overseas legal person, is a||||
||wholly-owned subsidiary of a shareholder, Shouguang Chenming Holdings Company Limited, which||||
|Related relationship or acting|||||
||is a state-owned legal person. Hence they are persons acting in concert under Administration of||||
|in concert among the above|||||
||Disclosure of Information on the Change of Shareholding in Listed Companies Procedures. Save for||||
|shareholders|||||
||the above, it is not aware that any other shareholders of tradable shares are persons acting in concert||||
||and it is also not aware that any other shareholders of tradable shares are related with each other.||||

Whether an agreed repurchase transaction was entered into during the reporting period by the top 10 ordinary shareholders and top 10 shareholders of non-restricted shares of the Company
□ Yes√ No
The top 10 ordinary shareholders and top 10 shareholders of non-restricted ordinary shares of the Company did not enter into any agreed repurchase transaction during the reporting period.
2. Total number of shareholders of preference shares and shareholding of the top ten shareholders of preference shares
√ Applicable□ Not applicable
Unit: share
|||||||||
|-|-|-|-|-|-|-|-|
|Total number of shareholders of||||||||
|preference shares as at the end of the|7|||||||
|reporting period||||||||
|Shareholding of the top ten shareholders of preference shares||||||||
||||Percentage||Number of|Share pledged or||
|||Nature of||Number of||||
|Name of shareholders|||of||restricted|locked-up||
|||shareholders||shares held||||
||||shareholdi||shares held|Status of|Number|

Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
||||||||
|-|-|-|-|-|-|-|
|||ng|||shares||
|BEIJING YIBEN ZHONGXINGINVESTMENT MANAGEMENT CO., LTD.|Domesticnon-state-ownedlegal person|27.78%|12,500,000|0|||
||||||Pledged|12,500,000|
|BANK OF COMMUNICATIONSINTERNATIONAL TRUST CO., LTD. -HUILI NO.167 SINGLE CAPITAL TRUST|Others|22.44%|10,100,000|0|||
|BANK OF COMMUNICATIONSINTERNATIONAL TRUST CO., LTD. -HUILI NO.136 SINGLE CAPITAL TRUST|Others|14.22%|6,400,000|0|||
|QILU BANK CO., LTD. - QILU BANKQUANXIN WEALTH MANAGEMENTPRODUCT SERIES|Others|13.33%|6,000,000|0|||
|HENGFENG BANK CO., LTD.|Domesticnon-state-ownedlegal person|11.11%|5,000,000|0|||
|SHANGHAI STATE-OWNED ASSETSOPERATION CO., LTD.|State-owned legalperson|6.67%|3,000,000|0|||
|NCF - MINSHENG BANK - CHINAFORTUNE INTERNATIONAL TRUST -CHINA FORTUNE TRUST‧MIN XIN NO.11 SINGLE CAPITAL TRUST|Others|4.44%|2,000,000|0|||
||Shareholders of preference shares, namely “BANK OF COMMUNICATIONS||||||
||INTERNATIONAL TRUST CO., LTD. - HUILI NO.167 SINGLE CAPITAL||||||
||TRUST” and “BANK OF COMMUNICATIONS INTERNATIONAL TRUST||||||
|Related relationship or acting in concert among|||||||
||CO., LTD. - HUILI NO.136 SINGLE CAPITAL TRUST”, are persons acting in||||||
|the above shareholders|||||||
||concert. Save for the above, it is not aware that any other shareholders of||||||
||preference shares are persons acting in concert and it is also not aware that any||||||
||other shareholders of preference shares are related with each other.||||||

Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited III Material matters
I. Details and reasons for changes of major financial data and financial indicators during the reporting period
√ Applicable□ Not applicable
(I) Analysis of the assets and liabilities of the Company
Unit: RMB
||||||
|-|-|-|-|-|
|Item|31 March 2018|31 December 2017|Change|Reason for change|
|Goodwill|49,364,594.99|20,283,787.17|143.37%|(1)|
|Advance receipts|427,243,722.99|243,182,891.22|75.69%|(2)|
|Staff remuneration payables|106,813,340.85|185,130,892.10|-42.30%|(3)|
|Interest payable|47,928,028.59|85,480,380.32|-43.93%|(4)|
|Bonds payable|1,198,395,304.75|2,196,261,279.57|-45.43%|(5)|
|Other non-current liabilities|1,246,666,667.00|250,000,000.00|398.67%|(6)|

Explanation of the reasons leading to the major changes:
(1)Goodwill increased by143.37% as compared to the beginning of the year mainly due to the positive goodwill arising from the acquisition of30% equity interest in Shanghai Hongtai by the Company.
(2) Advance receipts increased by75.69% as compared to the beginning of the year mainly due to the increase of advance receipts received by the Company.
(3) Staff remuneration payables decreased by42.30% as compared to the beginning of the year mainly due to the payment of annual performance bonus by the Company during the reporting period.
(4) Interest payable decreased by43.93% as compared to the beginning of the year mainly due to the repayment of the interest on RMB1,000 million corporate bonds by the financial leasing company.
(5) Bonds payable decreased by45.43% as compared to the beginning of the year mainly due to the repayment of RMB1,000 million corporate bonds by the financial leasing company.
(6) Other non-current liabilities increased by398.67% as compared to the beginning of the year mainly due to the issue of RMB1,000 million medium-term notes by the Company during the reporting period
(II) Reasons for significant year on year changes of income statement items during the reporting period Unit: RMB
||||||
|-|-|-|-|-|
|Item|January – March2018|January – March2017|Change|Reason for change|
|Sales revenue|7,241,811,895.12|6,274,273,821.63|15.42%|(1)|
|Taxes and surcharges|62,538,374.77|54,684,663.59|14.36%|(2)|
|Selling and distribution|270,903,272.57|304,176,522.86|-10.94%|(3)|

Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
||||||
|-|-|-|-|-|
|expenses|||||
|General and|495,307,657.40|413,588,829.04|19.76%|(4)|
|administrative expenses|||||
|Loss on impairment|59,082,697.85|23,825,034.05|147.99%|(5)|
|of assets|||||
|Financial expenses|768,650,745.61|472,931,576.60|62.53%|(6)|

Explanation of the reasons leading to the major changes:
(1) Sales revenue increased by15.42% as compared to the corresponding period of last year mainly due to a year-on-year increase in the prices of machine-made paper.
(2)Taxes and surcharges increased by14.36% as compared to the corresponding period of last year mainly due to a year-on-year increase in theCompany’s sales revenue and gross profit margin.
(3)Selling and distribution expenses decreased by10.94% as compared to the corresponding period of last year mainly due to the tighter control on selling and distribution expenses by the Company.
(4)General and administrative expenses increased by19.76% as compared to the corresponding period of last year mainly due to a year-on-year increase inR&D expenditure.
(5)Loss on impairment of assets increased by147.99% as compared to the corresponding period of last year mainly due to the amendment to the bad debt policy of the financial leasing business at the end of last year by the Company.
(6) Financial expenses increased by62.53% as compared to the corresponding period of last year mainly due to a year-on-year increase in the debt size and financing costs of the Company.
(III) Analysis of cash flows during the reporting period
Unit: RMB
||||||
|-|-|-|-|-|
|Item|January - March 2018|January - March 2017|Change|Reason for change|
|Net cash flows from operating|1,267,680,953.19|-1,799,933,755.66|170.43%|(1)|
|activities|||||
|Net cash flows from investment|-1,724,411,977.89|147,890,412.84|-1266.01%|(2)|
|activities|||||
|Net cash flows from financing|-134,535,571.79|2,013,126,167.07|-106.68%|(3)|
|activities|||||

Explanation of the reasons leading to the major changes:
(1)Net cash flows from operating activities increased by170.43%as compared to the beginning of the year mainly due to an increase in sales revenue resulting from the increase in the prices of machine-made paper and a decrease in net leasing of the financial leasing business as compared to the corresponding period of last year.
(2)Net cash flows from investing activities decreased by1,266.01%as compared to the beginning of the year mainly due to the acquisition of30% equity interest in Shanghai Hongtai by the Company.
(3)Net cash flows from financial activities decreased by106.68%as compared to the beginning of the year mainly due to the expansion of the debt size controlled by the Company.
II. Progress in respect to material matters and analysis of the related effects and solutions
□ Applicable√ Not applicable
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited III. Undertakings made by parties involved in undertakings including theCompany’s beneficial controllers, shareholders, related parties, bidders and the Company subsisting during the reporting period
□ Applicable√ Not applicable
During the reporting period, there were no undertakings made by parties involved in undertakings including theCompany’s beneficial controllers, shareholders, related parties, bidders and the Company subsisting during the reporting period.
IV. Estimate of the operating results for January - June 2018
Warning of projection on cumulative net profit for the period from the beginning of the year to the end of the next reporting period to be at a loss or expected to have material changes as compared to the corresponding period of prior year and its explanation
□ Applicable√ Not applicable
V. Security investments
□ Applicable√ Not applicable
The Company did not have any security investments during the reporting period.
VI. Derivatives investments
□Applicable√ Not applicable
The Company did not have any derivative investments during the reporting period.
VII. Registration report on reception of research investigations, communications and interviews during the reporting period
□ Applicable√ Not applicable
The Company did not have any reception of research investigations, communications and interviews during the reporting period. VIII. External guarantees against the rules and regulations
□ Applicable√ Not applicable
There was no external guarantee provided by the Company which was against the rules and regulations during the reporting period. IX. Appropriation of funds of the Company by the controlling shareholder and its related parties for non-operating purposes
□ Applicable√ Not applicable
There was no appropriation of funds of the Company by the controlling shareholder and its related parties for non-operating purposes during the reporting period.
Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited IV Financial Statements
I. Financial Statements
1. Consolidated Balance Sheet
Prepared by: Shandong Chenming Paper Holdings Limited
31 March 2018
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|CURRENT ASSETS:|||
|Monetary funds|15,089,639,413.59|14,443,492,461.43|
|Financial assets at fair value|||
||112,500,000.00|94,000,000.00|
|through profit or loss|||
|Bills receivable|3,916,254,267.61|4,220,231,853.56|
|Accounts receivable|3,869,956,800.54|3,665,865,577.03|
|Prepayments|1,981,625,567.07|1,962,151,473.35|
|Other receivables|658,325,916.30|538,734,656.55|
|Inventories|6,632,665,030.29|6,022,805,491.17|
|Non-current assets due within one|||
||6,932,124,260.47|6,901,695,875.94|
|year|||
|Other current assets|9,374,699,651.53|11,568,757,330.26|
|Total current assets|48,567,790,907.40|49,417,734,719.29|
|NON-CURRENT ASSETS:|||
|Available-for-sale financial assets|2,453,000,000.00|2,453,000,000.00|
|Long-term receivables|11,118,982,838.89|9,400,862,089.18|
|Long-term equity investments|408,356,486.31|391,868,827.45|
|Investment properties|4,785,281,837.13|4,809,535,109.82|
|Fixed assets|28,169,837,026.84|28,227,509,503.05|
|Construction in progress|8,460,922,302.89|7,668,669,413.87|
|Construction materials|10,090,951.74|15,275,630.45|
|Intangible assets|1,925,863,054.11|2,059,221,379.09|
|Goodwill|49,364,594.99|20,283,787.17|
|Long-term prepaid expenses|137,283,507.52|139,122,569.45|
|Deferred income tax assets|523,792,145.93|522,288,850.40|

Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
||||
|-|-|-|
|Other non-current assets|470,203,775.04|499,724,197.70|
|Total non-current assets|58,512,978,521.39|56,207,361,357.63|
|Total assets|107,080,769,428.79|105,625,096,076.92|
|CURRENT LIABILITIES:|||
|Short-term borrowings|35,711,413,757.44|35,096,574,873.03|
|Bills payable|1,595,333,518.56|1,278,395,090.71|
|Accounts payable|3,146,107,129.21|4,013,936,527.74|
|Advance receipts|427,243,722.99|243,182,891.22|
|Staff remuneration payables|106,813,340.85|185,130,892.10|
|Taxes payable|506,766,970.98|496,626,014.68|
|Interest payable|47,928,028.59|85,480,380.32|
|Other payables|1,530,547,398.00|1,426,629,545.41|
|Non-current liabilities due within|||
||3,529,882,896.40|3,625,430,347.40|
|one year|||
|Other current liabilities|12,907,095,864.17|10,797,248,631.76|
|Total current liabilities|59,509,132,627.19|57,248,635,194.37|
|NON-CURRENT LIABILITIES:|||
|Long-term borrowings|7,191,782,466.97|7,646,122,995.91|
|Bonds payable|1,198,395,304.75|2,196,261,279.57|
|Long-term payables|5,431,980,150.13|5,550,881,435.64|
|Special payables|681,039,716.66|681,039,716.66|
|Provisions|325,259,082.28|325,259,082.28|
|Deferred income|1,430,904,842.12|1,452,717,833.55|
|Other non-current liabilities|1,246,666,667.00|250,000,000.00|
|Total non-current liabilities|17,506,028,229.91|18,102,282,343.61|
|TOTAL LIABILITIES|77,015,160,857.10|75,350,917,537.98|
|OWNERS’ EQUITY:|||
|Share capital|1,936,405,467.00|1,936,405,467.00|
|Other equity instruments|10,048,300,000.00|10,048,300,000.00|
|Including: Preference shares|4,477,500,000.00|4,477,500,000.00|
|Perpetual bonds|5,570,800,000.00|5,570,800,000.00|
|Capital reserves|6,149,257,784.90|6,149,257,784.90|
|Other comprehensive income|-73,483,246.94|-354,165,127.80|
|Surplus reserves|1,132,116,106.40|1,132,116,106.40|

Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
||||
|-|-|-|
|Retained profit|9,551,015,202.38|8,866,614,844.40|
|Total equity attributable to equity|||
||28,743,611,313.74|27,778,529,074.90|
|holders of the company|||
|Minority interest|1,321,997,257.95|2,495,649,464.04|
|Total owners’ equity|30,065,608,571.69|30,274,178,538.94|
|TOTAL LIABILITIES AND|||
||107,080,769,428.79|105,625,096,076.92|
|OWNERS’ EQUITY|||

Legal Representative: Financial controller: Head of the financial department:
Chen Hongguo Hu Jinbao Zhang Bo
2. Balance sheet of the Company
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|CURRENT ASSETS:|||
|Monetary funds|9,441,442,393.70|9,580,548,200.88|
|Financial assets at fair value|||
||112,500,000.00|94,000,000.00|
|through profit or loss|||
|Bills receivable|923,114,795.94|787,095,075.51|
|Accounts receivable|1,334,746,219.41|8,188,750.45|
|Prepayments|655,328,549.76|742,107,273.09|
|Other receivables|26,863,440,842.76|22,351,203,484.83|
|Inventories|804,406,410.36|751,426,520.51|
|Other current assets|3,256,461.13|2,488,977.72|
|Total current assets|40,138,235,673.06|34,317,058,282.99|
|NON-CURRENT ASSETS:|||
|Available-for-sale financial assets|2,453,000,000.00|2,453,000,000.00|
|Long-term receivables|456,925,607.06|456,925,607.06|
|Long-term equity investments|18,662,876,221.53|18,674,034,243.49|
|Fixed assets|2,177,471,274.40|2,364,990,246.94|
|Construction in progress|1,303,979,588.96|973,375,557.42|
|Intangible assets|467,348,695.74|470,379,203.58|
|Deferred income tax assets|168,294,583.66|186,935,887.68|

Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
||||
|-|-|-|
|Other non-current assets|54,800,000.00|54,800,000.00|
|Total non-current assets|25,744,695,971.35|25,634,440,746.17|
|Total assets|65,882,931,644.41|59,951,499,029.16|
|CURRENT LIABILITIES:|||
|Short-term borrowings|7,278,360,581.34|7,522,637,247.14|
|Bills payable|6,978,205,900.00|6,375,070,000.00|
|Accounts payable|1,793,381,184.53|570,706,495.21|
|Advance receipts|1,435,718,563.63|956,040,917.07|
|Staff remuneration payables|37,774,561.75|47,546,116.66|
|Taxes payable|100,627,697.68|116,173,781.96|
|Interest payable|47,928,028.59|28,428,028.58|
|Other payables|2,739,303,962.12|2,162,553,106.46|
|Non-current liabilities due within|||
||1,743,985,162.45|1,318,429,260.12|
|one year|||
|Other current liabilities|12,907,095,864.17|10,797,248,631.76|
|Total current liabilities|35,062,381,506.26|29,894,833,584.96|
|NON-CURRENT LIABILITIES:|||
|Long-term borrowings|742,724,996.42|908,182,122.65|
|Bonds payable|1,198,395,304.75|1,198,305,304.75|
|Long-term payables|4,514,290,046.62|4,605,691,332.13|
|Provisions|325,259,082.28|325,259,082.28|
|Deferred income|49,667,895.95|50,753,189.60|
|Other non-current liabilities|1,246,666,667.00|250,000,000.00|
|Total non-current liabilities|8,077,003,993.02|7,338,191,031.41|
|TOTAL LIABILITIES|43,139,385,499.28|37,233,024,616.37|
|OWNERS’ EQUITY:|||
|Share capital|1,936,405,467.00|1,936,405,467.00|
|Other equity instruments|10,048,300,000.00|10,048,300,000.00|
|Including: Preference shares|4,477,500,000.00|4,477,500,000.00|
|Perpetual bonds|5,570,800,000.00|5,570,800,000.00|
|Capital reserves|5,938,960,168.19|5,938,960,168.19|
|Surplus reserves|1,119,926,524.49|1,119,926,524.49|
|Retained profit|3,699,953,985.45|3,674,882,253.11|
|Total owners’ equity|22,743,546,145.13|22,718,474,412.79|

Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
||||
|-|-|-|
|TOTAL LIABILITIES ANDOWNERS’ EQUITY|||
||65,882,931,644.41|59,951,499,029.16|

3. Consolidated income statement
Unit: RMB
||||
|-|-|-|
|Item|Amounts for the period|Amounts for the prior period|
|I. Total revenue|7,241,811,895.12|6,274,273,821.63|
|Including: Revenue|7,241,811,895.12|6,274,273,821.63|
|II. Total operating costs|6,348,793,347.27|5,540,639,425.53|
|Including: Operating costs|4,692,310,599.07|4,271,432,799.39|
|Taxes and surcharges|62,538,374.77|54,684,663.59|
|Sales and distribution|||
||270,903,272.57|304,176,522.86|
|expenses|||
|General and administrative|||
||495,307,657.40|413,588,829.04|
|expenses|||
|Finance expenses|768,650,745.61|472,931,576.60|
|Loss on impairment of assets|59,082,697.85|23,825,034.05|
|Plus: Gain on change in fair value|||
||18,500,000.00||
|(“-” denotes loss)|||
|Investment income|||
||38,745,214.22|34,080,946.51|
|(“-” denotes loss)|||
|Including: Investment income|||
|from associates|-5,008,613.46|-5,602,501.04|
|and joint ventures|||
|Gain on disposal of assets|||
||5,264.44|-921,000.44|
|(“-” denotes loss)|||
|Other income|35,587,255.87||
|III. Operating profit (“-” denotes loss)|985,856,282.38|766,794,342.17|
|Plus: Non-operating income|2,608,937.24|98,493,848.65|
|Less: Non-operating expenses|905,848.50|429,165.35|
|IV. Total profit (“-” denotes total loss)|987,559,371.12|864,859,025.47|
|Less: Income tax expenses|207,172,541.16|165,263,056.51|
|V. Net profit (“-” denotes net loss)|780,386,829.96|699,595,968.96|
|(I) Net profit from continuing|||
||780,386,829.96|699,595,968.96|
|operations (“-” denotes net loss)|||
|(II) Net profit from discontinued|-|-|

Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
||||
|-|-|-|
|operations(“-” denotes net loss)|||
|Net profit attributable to|||
||782,500,357.98|702,517,923.91|
|shareholders of the Company|||
|Profit or loss of minority interest|-2,113,528.02|-2,921,954.95|
|VI. Net other comprehensive income|||
||280,681,880.86|36,500,385.95|
|after tax|||
|Net other comprehensive income after|||
|tax attributable to shareholders of the|280,681,880.86|36,500,385.95|
|Company|||
|(I) Other comprehensive income that|||
|will not be reclassified to profit|-|-|
|or loss in sub sequent periods|||
|(II) Other comprehensive income|||
|that will be reclassified to profit|280,681,880.86|36,500,385.95|
|or loss in subsequent periods|||
|1. Exchange differences on|||
||280,681,880.86|36,500,385.95|
|translation of foreign operations|||
|Net other comprehensive income after|||
||-|-|
|tax attributable to minority interest|||
|VII. Total comprehensive income|1,061,068,710.82|736,096,354.91|
|Total other comprehensive income|||
|attributable to shareholders of the|1,063,182,238.84|739,018,309.86|
|Company|||
|Total comprehensive income|||
||-2,113,528.02|-2,921,954.95|
|attributable to minority interest|||
|VIII. Earnings per share:|||
|(I) Basic earnings per share|0.31|0.29|
|(II) Diluted earnings per share|0.31|0.29|

 Legal Representative: Financial controller: Head of the financial department:
Chen Hongguo Hu Jinbao Zhang Bo
4. Income statement of the Company
Unit: RMB
||||
|-|-|-|
|Item|Amounts for the period|Amounts for the prior period|
|I. Revenue|1,450,100,125.24|1,825,135,337.89|

Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
||||
|-|-|-|
|Less: Operating costs|1,004,299,850.90|1,346,106,037.13|
|Taxes and surcharges|23,185,158.78|22,146,157.86|
|Sales and distribution|||
||41,118,479.35|61,708,995.39|
|expenses|||
|General and administrative|||
||128,845,305.73|157,074,579.69|
|expenses|||
|Finance expenses|160,195,809.53|133,730,116.49|
|Loss on impairment of assets|-3,637,308.53|10,581,405.57|
|Plus: Gain on change in fair value|||
||18,500,000.00||
|(“-” denotes loss)|||
|Investment income|||
||35,095,805.72|39,583,206.16|
|(“-” denotes loss)|||
|Including: Investment income|||
|from associates|-154,294.28|-97,092.16|
|and joint ventures|||
|Gain on disposal of assets|||
||121.63|19,293.30|
|(“-” denotes loss)|||
|Other income|1,085,293.65||
|II. Operating profit (“-” denotes loss)|150,774,050.48|133,390,545.22|
|Plus: Non-operating income|164,617.03|1,682,622.31|
|Less: Non-operating expenses|621,903.47||
|III. Total profit (“-” denotes total loss)|150,316,764.04|135,073,167.53|
|Less: Income tax expenses|18,641,304.02|10,663,012.86|
|IV. Net profit (“-” denotes net loss)|131,675,460.02|124,410,154.67|
|(I) Net profit from continuing|||
|operations (“-” denotes net|131,675,460.02|124,410,154.67|
|loss)|||
|(II) Net profit from discontinued|||
|operations (“-” denotes net|-|-|
|loss)|||
|V. Net other comprehensive income|||
||-|-|
|after tax|||
|(I) Other comprehensive income|||
|that will not be reclassified to|-|-|
|profit or loss in subsequent periods|||
|(II) Other comprehensive income|||
|that will be reclassified to profit or|-|-|
|loss in subsequent periods|||

Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
||||
|-|-|-|
|VI. Total comprehensive income|131,675,460.0|2 124,410,154.67|
|VII. Earnings per share|||
|(I) Basic earnings per share||- -|
|(II) Diluted earnings per share||- -|

 5. Consolidated cash flow statement
Unit: RMB
||||
|-|-|-|
|Item|Amounts for the period|Amounts for the prior period|
|I. Cash flows from operating activities:|||
|Cash received from sales of goods|||
||8,279,206,351.45|6,071,765,519.77|
|and rendering of services|||
|Tax rebates received|2,412,586.40|49,253.28|
|Cash received relating to other|||
||580,565,896.58|344,275,340.11|
|operating activities|||
|Subtotal of cash inflows from operating|||
||8,862,184,834.43|6,416,090,113.16|
|activities|||
|Cash paid for goods and services|6,100,012,550.54|4,284,027,734.66|
|Cash paid to and for employees|338,948,088.15|254,685,584.47|
|Payments of taxes and surcharges|497,568,122.37|349,632,991.79|
|Cash paid relating to other|||
||657,975,120.18|3,327,677,557.90|
|operating activities|||
|Subtotal of cash outflows from|||
||7,594,503,881.24|8,216,023,868.82|
|operating activities|||
|Net cash flows from operating|||
||1,267,680,953.19|-1,799,933,755.66|
|activities|||
|II. Cash flows from investment|||
|activities:|||
|Cash received from investments|30,000,000.00|-|
|Cash received from investment|||
||112,541,400.00|13,750,000.00|
|income|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and|17,384.00|-|
|other long-term assets|||
|Cash received relating to other|||
||-|518,764,372.00|
|investment activities|||
|Subtotal of cash inflows from|||
||142,558,784.00|532,514,372.00|
|investment activities|||

Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
||||
|-|-|-|
|Cash paid for purchase of fixed|||
|assets, intangible assets and other|591,970,761.89|384,623,959.16|
|long-term assets|||
|Cash paid on investments|1,171,957,789.46||
|Cash paid relating to other|||
||103,042,210.54||
|investment activities|||
|Subtotal of cash outflows from|||
||1,866,970,761.89|384,623,959.16|
|investment activities|||
|Net cash flows from investment|||
||-1,724,411,977.89|147,890,412.84|
|activities|||
|III. Cash flows from financing|||
|activities:|||
|Cash received from borrowings|9,233,253,564.49|13,559,751,515.69|
|Cash received from issuance of|||
|||997,000,000.00|
|bonds|||
|Cash received relating to other|||
||6,034,958,302.56|5,011,942,828.52|
|financing activities|||
|Subtotal of cash inflows from financing|||
||15,268,211,867.05|19,568,694,344.21|
|activities|||
|Cash repayments on borrowing|10,182,447,626.95|12,943,894,864.13|
|Cash paid for dividend and profit|||
||651,766,445.79|468,301,155.59|
|distribution or interest payment|||
|Cash paid relating to other|||
||4,568,533,366.10|4,143,372,157.42|
|financing activities|||
|Subtotal of cash outflows from|||
||15,402,747,438.84|17,555,568,177.14|
|financing activities|||
|Net cash flows from financing|||
||-134,535,571.79|2,013,126,167.07|
|activities|||
|IV. Effect of foreign exchange rate|||
||-18,600,721.48|-12,654,907.93|
|changes on cash and cash equivalents|||
|V. Net increase in cash and cash|||
||-609,867,317.97|348,427,916.32|
|equivalents|||
|Plus: Balance of cash and cash|||
|equivalents as at the|2,804,408,374.46|1,979,861,045.62|
|beginning of the period|||
|VI. Balance of cash and cash|||
|equivalents as at the end of the|2,194,541,056.49|2,328,288,961.94|
|period|||

Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited 6. Cash flow statement of the Company
Unit: RMB
||||
|-|-|-|
|Item|Amounts for the period|Amounts for the prior period|
|I. Cash flows from operating activities:|||
|Cash received from sales of goods|||
||1,646,162,348.96|2,043,512,964.97|
|and rendering of services|||
|Cash received relating to other|||
||21,435,511.08|2,307,363,848.50|
|operating activities|||
|Subtotal of cash inflows from operating|||
||1,667,597,860.04|4,350,876,813.47|
|activities|||
|Cash paid for goods and services|800,010,191.80|1,596,601,181.89|
|Cash paid to and for employees|109,109,796.36|91,590,954.26|
|Payments of taxes and surcharges|129,294,420.54|93,278,359.86|
|Cash paid relating to other|||
||2,483,754,448.42|14,107,297.75|
|operating activities|||
|Subtotal of cash outflows from|||
||3,522,168,857.12|1,795,577,793.76|
|operating activities|||
|Net cash flows from operating|||
||-1,854,570,997.08|2,555,299,019.71|
|activities|||
|II. Cash flows from investment|||
|activities:|||
|Cash received from investments|30,000,000.00|-|
|Cash received from investment|||
||112,541,400.00|13,750,000.00|
|income|||
|Cash received relating to other|||
||-|500,000,000.00|
|investment activities|||
|Subtotal of cash inflows from|||
||142,541,400.00|513,750,000.00|
|investment activities|||
|Cash paid for purchase of fixed|||
|assets, intangible assets and other|6,127,000.00|246,066.75|
|long-term assets|||
|Cash paid on investments|-|2,000,000,000.00|
|Subtotal of cash outflows from|||
||6,127,000.00|2,000,246,066.75|
|investment activities|||
|Net cash flows from investment|||
||136,414,400.00|-1,486,496,066.75|
|activities|||
|III. Cash flows from financing|||

Report for the First Quarter of 2018 of Shandong Chenming Paper Holdings Limited
||||
|-|-|-|
|activities:|||
|Cash received from borrowings|2,680,503,196.92|2,805,500,000.00|
|Cash received relating to other|||
||5,408,064,947.95|4,495,241,096.00|
|financing activities|||
|Subtotal of cash inflows from financing|||
||8,088,568,144.87|7,300,741,096.00|
|activities|||
|Cash repayments on borrowing|3,605,796,202.77|3,585,574,810.02|
|Cash paid for dividend and profit|||
||438,519,151.51|374,131,591.29|
|distribution or interest payment|||
|Cash paid relating to other|||
||2,710,525,941.91|4,660,350,945.07|
|financing activities|||
|Subtotal of cash outflows from|||
||6,754,841,296.19|8,620,057,346.38|
|financing activities|||
|Net cash flows from financing|||
||1,333,726,848.68|-1,319,316,250.38|
|activities|||
|IV. Effect of foreign exchange rate|||
|changes on cash and cash|5,801,533.68|42,600.81|
|equivalents|||
|V. Net increase in cash and cash|||
||-378,628,214.72|-250,470,696.61|
|equivalents|||
|Plus: Balance of cash and cash|||
|equivalents as at the|1,020,262,069.85|582,578,426.62|
|beginning of the period|||
|VI. Balance of cash and cash|||
|equivalents as at the end of the|641,633,855.13|332,107,730.01|
|period|||

II.Auditors’ Report
Has the first quarterly report already been audited yet?
□ Yes√ No
The first quarterly report of the Company is unaudited.
By order of the Board
Shandong Chenming Paper Holdings Limited 26 April 2018