2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. FOSHAN HUAXIN PACKAGING CO., LTD.
2013 ANNUAL REPORT
March 2014
2013 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―theCompany‖) 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.
Independent director Mr. Zhu Zhengfu was unable to review this annual report in person for he needed to attend the ChinesePeople‘s Political Consultant Conference at the time. Therefore, he cannot ensure the factuality, accuracy and completeness of the contents of this report.
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||
|||Needed to attend the Chinese||
|Zhu Zhengfu|Independent director|People‘s Political Consultant||
|||Conference||
|Huang Xin|Director|On a business trip|Tong Laiming|

The Company plans not to distribute cash dividends or bonus shares or turn capital reserve into share capital.
Mr. Tong Laiming, company principal, Mr. Wang qi, 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.
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Catalogue
Section I. Important Reminders, Catalogue& Explanation .....................................................................................................................2 Section II. Company Profile ....................................................................................................................................................................6 Section III. Accounting& Business Highlights .......................................................................................................................................8 Section IV. Report of the Board of Directors ......................................................................................................................................... 10 Section V. Significant Events ................................................................................................................................................................. 29 Section VI. Changes in Share Capital and Particulars about the Shareholders ...................................................................................... 41 Section VII. Directors, Supervisors and Senior Executives and Employees .......................................................................................... 48 Section VIII. Corporate governance ...................................................................................................................................................... 58 Section IX. Internal Control .................................................................................................................................................................. 64 Section X. Financial Statements ............................................................................................................................................................ 66 Section XI. Documents Available for Reference ................................................................................................................................. 209
2013 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||
||Refers||
|China Paper||Actual controller of the Company—China Paper Corporation|
||to||
||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||

2013 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.
2013 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)||||
|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.China|||
|Postal code for the registered||||
||528000|||
|address||||
|Office address|19/F, Jinghua Building, No. 18, the 5th Jihua Road, Foshan, Guangdong Province, P.R.China|||
|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|
||20/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.China|P.R.China|
|Tel.|0757-83992076|0757-83992076|
|Fax|0757-83992026|0757-83992026|
|E-mail|yyh-hxbz@chinapaper.com.cn|jzw-hxbz@chinapaper.com.cn|

III. About information disclosure and where this report is placed
|||
|-|-|
|Newspapers designated by the Company for|Securities Times, Ta Kung Pao (HK)|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
|information disclosure||
|Internet website designated by CSRC for||
||http://www.cninfo.com.cn|
|disclosing 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.China|
|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
2013 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||
||2013|2012|this year over last year|2011|
||||(%)||
|Operating revenue (RMB Yuan)|4,006,109,812.66|3,646,702,240.82|9.86%|4,026,523,768.59|
|Net profit attributable to|79,060,852.74|268,480,430.68|||
|shareholders of the Company|||-70.55%|111,933,677.75|
|(RMB Yuan)|||||
|Net profit attributable to|||||
|shareholders of the Company after|31,046,179.76|51,677,120.22|-39.92%|110,028,838.75|
|extraordinary gains and losses|||||
|(RMB Yuan)|||||
|Net cash flows from operating|821,251,323.61|19,164,596.26|||
||||4,185.25%|-208,235,321.99|
|activities (RMB Yuan)|||||
|Basic EPS (RMB Yuan/share)|0.16|0.53|-69.81%|0.22|
|Diluted EPS (RMB Yuan/share)|0.16|0.53|-69.81%|0.22|
|Weighted average ROE (%)|4.61%|16.55%|-11.94%|7.55%|
||||Increase or decrease of||
||As at 31 Dec. 2013|As at 31 Dec. 2012|this year-end than last|As at 31 Dec. 2011|
||||year-end (%)||
|Total assets (RMB Yuan)|5,773,266,460.61|6,429,081,652.74|-10.2%|6,571,888,756.69|
|Net assets attributable to|1,729,936,978.68|1,706,059,800.96|||
|shareholders of the Company|||1.4%|1,538,546,101.56|
|(RMB Yuan)|||||

II. Items and amounts of extraordinary gains and losses
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|2013|2012|2011|Note|
|Gain/loss on the disposal of non-current|51,123,921.58||||
|assets (including the offset part of the asset||280,004,646.96|113,629.11||
|impairment provisions)|||||
|Government grants recognized in the current|7,246,780|10,528,559.91|4,328,764.79||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|period, except for those acquired in the|||||
|ordinary course of business or granted at|||||
|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|127,836.00||
|carried out separately|||||
|Non-operating income and expense other|16,236,462.91||||
|||5,788,931.29|-278,638.79||
|than the above|||||
|Less: Income tax effects|12,941,980.74|71,762,094.83|648,699.70||
|Minority interests effects (after tax)|13,650,510.77|8,448,551.22|1,738,052.41||
|Total|48,014,672.98|216,803,310.46|1,904,839.00|--|

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
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Section IV. Report of the Board of Directors
I. Overview
In 2013, the domestic packaging paper market was still weak as it had been in 2012. The domestic new production capacity of ivory board was released at once, making the growth rate of the nominal production capacity surge to38%. The production capacity is expected to reach 11.80 million tons by 2014. The new production capacity influx escalated the competition that was already fierce. The recent two years also saw new production capacity of duplex board, of which prices have been significantly cut down since 2011 by over RMB 1,500/ton. Prices of main raw materials almost remained the same, with a slight increase. In addition, labor cost was also on the rise. The aforesaid factors led to the rise ofenterprises‘ production costs and more pressure in operation. To cope with the complex market environment and operational challenges, under the correct leadership of the Board of Directors and with great confidence and composure, the Company and its subsidiaries enhanced market research, worked out effective measures and endeavored to implement the transformation and upgrading strategy.―Transformation andupgrading‖ and―innovation‖ stood out in theCompany‘s production and operation in 2013, which resulted in a YoY increase in operating revenue.
II. Main business analysis
1. Overview
For 2013, the Company achieved operating revenue of RMB 4,006,109,800, up by9.86% over last year; operating cost of RMB 3,437,981,500, up by9.19% over last year; operating profit of RMB 66,661,600, down by74.28% over last year; net profit attributable to shareholders of the Company of RMB 79,060,900, down by70.55% over last year; and net cash flows from operating activities of RMB 821,251,300, up by4185.26% over last year. Overview of the reporting period progress of development strategies and business plans disclosed in previous periods:
In the reporting period, the Company made a distinct progress in the product innovation project and the transformation and upgrading key projects that had been planned last year. In particular, production and market expansion in relation to packaging paper for liquid food and ivory board for food produced some excellent results in the reporting period. And the weight of common ivory board in theCompany‘s product mix further decreased. 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
2. Revenues
Explanation:
In the reporting period, the Company produced 613,500 tons of machine-made paper, up1.71% over last year, and sold 644,100 tons of machine-made paper, up8.29% on a year-on-year basis. It achieved main business revenue
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. of RMB 3,913,213,500, up13.10% over last year.
Is theCompany‘s goods selling revenue higher than the service revenue?
√ Yes□ No
Unit: Ten thousand tons
||||||
|-|-|-|-|-|
|Industry|Item|2013|2012|YoY +/-%|
||Sales volume|64.41|59.48|8.29%|
|Paper-making|Output|61.35|60.32|1.71%|
||Stock|8.35|11.78|-29.12%|

 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
Major customers:
|||
|-|-|
|Total sales to the top 5 customers (RMB Yuan)|603,555,071.21|
|Ratio of the total sales to the top 5 customers to the||
||15.43%|
|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|323,468,629.06|8.27%|
|2|Customer B|101,036,026.20|2.58%|
|3|Customer C|62,062,508.10|1.59%|
|4|Customer D|58,721,199.60|1.5%|
|5|Customer E|58,266,708.25|1.49%|
|Total|--|603,555,071.21|15.43%|

 3. Costs
Classified by industry:
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||2013||2012|||
||||Proportion in||Proportion in||
|Industry|Item|||||YoY +/- (%)|
|||Amount|operating costs|Amount|operating costs||
||||（%）||（%）||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
|Manufacture|3,423,875,741.27|100%|3,045,672,151.91|100%|9.19%|

 Classified by product:
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||2013||2012|||
||||Proportion in||Proportion in||
|Product|Item|||||YoY +/- (%)|
|||Amount|operating costs|Amount|operating costs||
||||（%）||（%）||
|Duplex board||326,026,186.59|9.52%|476,971,191.93|15.66%|-31.65%|
|Ivory board||2,578,032,409.98|75.3%|2,292,937,258.22|75.29%|12.43%|
|Presswork||182,009,702.69|5.32%|176,797,785.91|5.8%|2.95%|
|Packaging paper|||||||
|||145,771,884.90|4.25%|6,406,462.93|0.21%|2,175.39%|
|for liquid|||||||
|Latex||188,520,701.36|5.51%|92,557,137.10|3.04%|103.68%|
|Calcium|||||||
|||663,734.05|0.02%|2,315.82|0%|28,560.87%|
|carbonate|||||||
|Products|||||||
|commissioned to||2,851,121.70|0.08%||||
|process|||||||

Notes:
Naught
Major suppliers:
|||
|-|-|
|Total purchases from the top 5 suppliers （RMB Yuan）|1,023,664,973.68|
|Ratio of the total purchases from the top 5 suppliers to the||
||39.31%|
|annual total purchases（%）||

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|271,825,041.63|10.44%|
|2|Supplier B|210,648,515.39|8.09%|
|3|Supplier C|185,106,976.83|7.11%|
|4|Supplier D|181,938,125.64|6.99%|
|5|Supplier E|174,146,314.20|6.69%|
|Total|--|1,023,664,973.68|39.31%|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 4. Expense
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|2013|2012|YoY +/-%|
|Business tax and surtaxes|22,782,408.90|14,713,424.54|54.84%|
|Selling expenses|198,966,933.06|181,936,273.76|9.36%|
|Administrative expenses|149,343,286.25|156,324,336.38|-4.47%|
|Financial expenses|113,521,836.70|189,968,915.07|-40.24%|
|Income tax expenses|43,552,505.99|68,830,236.76|-36.72%|

1. Business tax and surtaxes increased by54.84% over last year mainly because operating revenue increased. 2. Financial expenses decreased by40.24% over last year mainly because loans decreased.
3. Income tax expenses decreased by36.72% over last year mainly because extraordinary gains decreased. 5.R&D expenses
TheR&D inputs for 2012 and 2013 accounted for3.73% and3.24% of the operating revenue respectively. In the reporting period, the Company has developed many new products. Main contents of research and development are as follows:
1. Research and development of hydrographics transfer printing base paper: hydrographics transfer printing base paper is the new product developed by Hongta Renheng Paper Co., Ltd. Its quality definition and operating requirements are different from plain coated white cardboard. By data collection and communication with customers in the last year, the second pilot production has been completed in August 2013, which won great appreciation from customers. Hydrographics transfer paper has been the environmental friendly paper product during preparation, printing and manufacturing.
2. PE coated paper: due to the use of PE coated production line, the base paper of paper cup produced by Hongta Renheng could be coated by coating equipment. Self-made PE coated paper is one of the new products made by Hongtang Renheng, opening up the new paper market for the company.
3. Oil-proof coated white cardboard: since developed in 2012, the paper has integrated the oil-proof technology for oil repellency. It has the cost advantages and been environmentally friendly. After several technology optimization, it has been brought into quantity production and won the satisfactory from customers.
4. Unbleached cigarette cardboard: after pilot production and technology improvement, BM3 of Hongtang Renheng brought into quantity production of unbleached cigarette cardboard in 2013. It is environmental friendly and all technical specifications reach the requirements of cigarette white cardboard. All customers are very satisfied.
5. Huaxin Color Printing has developed the environmental friendly non-color seal sizing label printing technology, holographic transferring printing technology, high-end colorful label printing technology and other paper printing technologies.
6. Highlights of product technologies of color printing: metal reverse coating technology is applied on non-absorbent materials packaging of high-end infant formula; two-dimension code variable information printing
technology is applied on packaging of some high-end household products; CPP thin-film material flexible
packaging printing technology for household paper has been put into market; the self-developed multi-functional
multilayer label flexography has been used to provide qualified products to customers.
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 7. The Company has reserved several new products in papermaking and printing, such as new wrapper for liquid food, high bulking noodle bowl base paper, SBS coating (composite) white cardboard, dual coated FBB cigarette card, dyeing anti-fake coating white cardboard, etc.
6. Cash flows
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|2013|2012|YoY +/-（%）|
|Subtotal of cash inflows from|3,151,996,919.76|3,024,633,797.40||
||||4.21%|
|operating activities||||
|Subtotal of cash outflows from|2,330,745,596.15|3,005,469,201.14||
||||-22.45%|
|operating activities||||
|Net cash flows from operating|821,251,323.61|19,164,596.26||
||||4,185.25%|
|activities||||
|Subtotal of cash inflows from|51,491,678.51|581,224,429.89||
||||-91.14%|
|investing activities||||
|Subtotal of cash outflows from|200,038,588.03|115,279,651.22||
||||73.52%|
|investing activities||||
|Net cash flows from investing|-148,546,909.52|465,944,778.67||
||||-131.88%|
|activities||||
|Subtotal of cash inflows from|1,372,183,849.94|3,673,903,514.77||
||||-62.65%|
|financing activities||||
|Subtotal of cash outflows from|2,222,692,993.98|4,144,809,533.40||
||||-46.37%|
|financing activities||||
|Net cash flows from financing|-850,509,144.04|-470,906,018.63||
||||80.61%|
|activities||||
|Net increase in cash and cash|-178,623,629.93|14,312,325.62||
||||-1,348.04%|
|equivalents||||

Reasons for anyover-30% YoY movement of the data above:
√ Applicable□ Inapplicable
1. Net cash flows from operating activities increased by4185.25% over last year mainly because the cash received from operating activities increased while the cash paid for procurement decreased.
2. Cash inflows from investing activities decreased by91.14% over last year mainly because in 2012, the transfer of equities generated a great deal of cash inflows while there was no such event in 2013.
3. Cash outflows from investing activities increased by73.52% over last year mainly because of acquisition of long-term equities.
4. Cash inflows from financing activities decreased by62.65% over last year mainly because the Company issued bonds in 2012.
Reasons for a big difference between the operating cash flows and the net profit:
2013 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||Gross profit rate|of operating||of gross profit|
|||Operating cost|||of operating cost||
||revenue||(%)|revenue over last||rate over last year|
||||||over last year (%)||
|||||year (%)||(%)|
|Classified by industry:|||||||
|Manufacture|3,913,213,455.88|3,423,875,741.27|12.5%|13.1%|12.42%|4.44%|
|Classified by product:|||||||
|Duplex board|307,849,900.30|326,026,186.59|-5.9%|-38.9%|-31.65%|-210.84%|
|Ivory board|2,972,806,546.33|2,578,032,409.98|13.28%|13.53%|12.43%|6.8%|
|Presswork|239,632,899.59|182,009,702.69|24.05%|9.41%|2.95%|24.73%|
|Liquid packaging|||||||
||161,537,448.20|145,771,884.90|9.76%|2,089.88%|2,175.39%|-25.79%|
|paper|||||||
|Latex|225,339,705.10|188,520,701.36|16.34%|102.68%|103.68%|-2.46%|
|Calcium|||||||
||846,956.36|663,734.05|21.63%|26,459.76%|28,560.87%|-20.98%|
|carbonate|||||||
|Products|||||||
|entrusted to|5,200,000.00|2,851,121.70|45.17%||||
|process|||||||
|Classified by region:|||||||
|Domestic sale|3,386,684,492.85|2,892,496,217.19|14.59%|13.29%|11.67%|9.27%|
|Export|526,528,963.03|531,379,524.08|-0.92%|11.93%|16.69%|-128.81%|

 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. 2013||As at 31 Dec. 2012||Proportio||
||Proportion in||Proportion in|n change|Explain any major change|
|Amount||Amount||||
||total assets||total assets|（%）||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||(%)||(%)||
||201,666,231.22||478,856,596.14|||
|Monetary funds||3.49%||7.45%|-3.96%|
|Accounts|867,805,009.95||971,593,562.06|||
|||15.03%||15.11%|-0.08%|
|receivable||||||
||780,502,680.31||1,018,382,145.92|||
|Inventories||13.52%||15.84%|-2.32%|
|Investing real|16,380,804.64||9,942,981.44|||
|||0.28%||0.15%|0.13%|
|estate||||||
|Long-term equity|7,720,552.20||6,785,408.47|||
|||0.13%||0.11%|0.02%|
|investment||||||
||2,964,629,037.82||2,979,056,238.05|||
|Fixed assets||51.35%||46.34%|5.01%|
|Construction in|113,869,930.02||79,155,016.60|||
|||1.97%||1.23%|0.74%|
|progress||||||

2. Major changes of liability items
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||2013||2012||||
||||||Proportio||
|||Proportion in||Proportion in|||
||||||n change|Explain any major change|
||Amount|total assets|Amount|total assets|||
||||||（%）||
|||(%)||(%)|||
|Short-term|746,518,360.93||1,212,158,914.28||||
|||12.93%||18.85%|-5.92%||
|borrowings|||||||

3. Assets and liabilities measured at fair value
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||||||||
|3.|3,400,433.40||1,462,187.44||||4,862,620.84|
|Available-for-s||||||||
|ale financial||||||||
|assets||||||||
|Subtotal of|3,400,433.40||||||4,862,620.84|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|financial assets||||
|Total of the|3,400,433.40|1,462,187.44|4,862,620.84|
|above||||
|Financial|0.00||0.00|
|liabilities||||

Did any significant change occur to the attribute of theCompany‘s main asset measurement during the reporting period?
□ Yes√ No
V. Core competitiveness analysis
No significant change occurred to the core competitiveness of the Company in the reporting period.
VI. Investment analysis
1. Investments in equities of external parties
(1) Investments in external parties
||||
|-|-|-|
|Investments in external parties|||
|Investment amount in 2013 (RMB Yuan)|Investment amount in 2012 (RMB Yuan)|+/-%|
|49,862,600.00|69,000,000.00|-27.74%|
|Particulars about investees|||
|||Proportion of the Company‘s investment in|
|Name of investee|Main business||
|||the investee‘s total equity interests (%)|
|Huaxin (Foshan) Color Printing Co., Ltd.|Color package and tag printing|100%|

 (2) Equity-holdings in financial enterprises
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Gain/loss|||
|||Initial|Opening|Opening|Closing|Closing|Closing||||
|||||||||in the|||
|Enterprise|Enterprise||||||||Accountin|Equity|
|||investment|equity-hol|equity-hol|equity-hol|equity-hol|book value|reporting|||
|name|variety|cost (RMB|dings|ding ratio|dings|ding ratio|(RMB|period|g title|source|
|||Yuan)|(share)|(%)|(share)|(%)|Yuan)|(RMB|||
|||||||||Yuan)|||
|Guangdon||||||||||Incorporat|
|g|||||||||Long-term|ion with a|
||Commerci||||||||||
|Developm||113,558.00|113,558|0%|113,558|0%|113,558.00|0.00|equity|capital|
||al bank||||||||||
|ent Bank|||||||||investment|c ontributio|
|Co., Ltd.||||||||||n|
|Total||113,558.00|113,558|--|113,558|--|113,558.00|0.00|--|--|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. (3) Securities investments
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Numberof sharesheld atperiod-begin|Sharehold||Sharehold||Gain/loss|||
||||Initial|||Number||Closing||||
||||||ing||ing||for|||
||||investmen|||of shares||book||||
|Variety of|Code of|Name of|||percentag||percentag||reporting|Accounti|Source of|
||||t cost|||held at||value||||
|securities|securities|securities|||e at||e at||period|ng title|stock|
||||(RMB|||period-en||(RMB||||
||||||period-be||period-en||(RMB|||
||||Yuan)|||d||Yuan)||||
||||||gin||d||Yuan)|||
||||||||||||Incorpora|
|||||||||||Available||
||||||||||||tion with|
||||1,854,600|||||4,862,620|126,785.5|-for-sale||
|Stock|000507|ZHG||693,966|0.11%|902,156|0.11%||||a capital|
||||.00|||||.84|1|financial||
||||||||||||contributi|
|||||||||||assets||
||||||||||||on|
||||1,854,600|||||4,862,620|126,785.5|||
|Total||||693,966|--|902,156|--|||--|--|
||||.00|||||.84|1|||
|Disclosure date of the boardannouncement on approval ofthe securities investment||||||||||||
|Disclosure date of the generalmeeting announcement onapproval of the securitiesinvestment (if any)||||||||||||

Shareholdings in other listed companies:
□ Applicable√ Inapplicable
2. Use of raised funds
（1）Overview of the use of raised funds
Unit: RMB Ten thousand
|||
|-|-|
|Total raised funds|79,170|
|Raised funds input in the reporting period|170.1|
|Accumulative input raised funds|79,171.89|
|Raised funds with changed use in the reporting period|0|
|Accumulative raised funds with changed use|0|
|Proportion of accumulative raised funds with changed||
||0%|
|use (%)||
|Overview of the use of raised funds||
|During the reporting period, the financing funds issuing by securities of the Company (issued on Nov. 2012) had been used to||
|repay the bank loans and make up the current capital of the Company. The used capital during the reporting period was RMB 1.701||
|million (including the interest incomes of the financing funds of RMB 88,896.74). And the balance of the raised funds account||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. stood at RMB 3.69 (interest on the raised funds).
3. Analysis to main subsidiaries and stock-participating companies
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|||||||
|Huaxin||||||||||
|(Foshan)|||Color|||||||
|||Manufactur||USD 12.80|335,083,739|187,600,283|248,305,842|15,830,043.|12,968,727.|
|Color|Subsidiary||package and|||||||
|||e||million|.67|.96|.94|88|09|
|Printing|||tag printing|||||||
|Co., Ltd.||||||||||
|Zhuhai||||||||||
||||Ivory board,|||||||
|S.E.Z.||||||||||
||||packaging|||||||
|Hongta||Manufactur||USD|4,237,228,2|2,580,853,3|1,972,105,9|54,946,185.|47,324,700.|
||Subsidiary||base paper|||||||
|Renheng||e||243,609,909|01.94|54.52|19.68|95|38|
||||for liquid|||||||
|Paper Co.,||||||||||
||||food|||||||
|Ltd.||||||||||
|Zhuhai||||||||||
|Golden|||Latex,|||||||
|||Manufactur||RMB|254,579,024|164,521,035|346,484,461|37,550,654.|32,662,628.|
|Pheasant|Subsidiary||calcium|||||||
|||e||69,271,900|.37|.58|.01|43|87|
|Chemical|||carbonate|||||||
|Co., Ltd.||||||||||
|Zhuhai||||||||||
|||||RMB||||||
|Huafeng||Manufactur|||2,332,552,4|937,550,084|1,793,585,0|-51,113,847|-25,053,186|
||Subsidiary||Ivory board|984.56||||||
|Paper Co.,||e|||06.09|.93|61.11|.55|.47|
|||||million||||||
|Ltd.||||||||||
||||Coated|||||||
|Foshan||||||||||
||||duplex|||||||
|Chengtong||Manufactur||RMB 300|665,100,561|194,274,539|320,768,192|-60,676,195|-60,077,866|
||Subsidiary||board,|||||||
|Paper Co.,||e||million|.35|.04|.71|.43|.60|
||||coated craft|||||||
|Ltd.||||||||||
||||paper|||||||

Explain particulars about main subsidiaries and stock-participating companies:
(I) Hongta Renheng successfully implemented the product transformation and upgrading strategies to broaden corporate profitability.
Due to the market homogenization of plain social white card products and fierce competition, Hongta Renheng Co., Ltd has implemented the strategy of optimizing product mix and upgrading product transformation and promoted the transformation and upgrading of three series and seven categories. It is to use the product
differentiation strategy to get users and win the market.
According to product transformation planning, Hongta Renheng has developed the technology development and
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. experiment of black fiber white cardboard, SBS unbleached cigarette card, sterile liquid package, PE coated paper and other papers, which enriches the product structure and provide powerful technical support for new market. On the other hand, in order to expand the market of high-end customers and improve product added values and profitability, the Company production system has prepared well for quantity production of liquid package base paper for the No.2 machine and field certification and review of liquid package base paper product for the No.3 machine of Gaolan factory. In 2012, more than 30,000 tons of liquid package paper has been produced by No.2 production line, while No.3 production line has developed two field reviews and pilot production of sterile liquid packaging paper. The quality has achieved expectations and laid foundation for next production distribution. Facing the new capacity concentrate release, Hongta Renheng insists de-stocking operation, which could influence the inventory, but take initiative for future management.
Through the above measures and efforts, Hongta Renheng has developed a new way with great achievements under the circumstances of surplus productivity of white cardboard and fierce competition. In 2013, Hongta Renheng produced 510,000 tons white cardboard, a15% increase of last year; sold 530,000 tons, increased by20%. Merged sales revenue of Hongta Renheng in 2013 reached 3,379,000,000 Yuan (including Jinji Chemical), increased by17.94%. The merged total profits has been 63,480,000 Yuan earnings from the 87,000,000 Yuan losses. All achievements are satisfactory.
(II) Foshan Chengtong was troubled by internal and external adverse factors and could not implement transformation and upgrading strategies to cause difficult operation.
In this year, Foshan Chengtong was troubled by internal and external adverse factors and the production and management presents a serious test: shrinking export, insufficient domestic demand, booming new production capacity, depressed market of white board, especially the prominent imbalance of white board in Pearl River Delta, severe market competition and declining selling prices.
Due to the limits of equipment and production scale, current backward facilities cause the difficulties in insufficient production costs and product quality, falling behind the major competitors. The management dilemma is hardly improved due to insufficient input.
Because the enterprise transformation and product upgrading adjustment could not be implemented promptly, Foshan Chengtong is passive and difficult in management. The yield and sales volume in 2013 has declined by35% compared with last year. Operating profit deficit in 2013 has reached 60,676,200 Yuan.
(III) Huaxin Color Printing pays special attention to technical innovation and management improvement for steady development in enterprise management.
Effected by economic downturn and slumping demand, packaging industry was managed poorly in 2013. Many printing factories have been closed down in Pearl River Delta. Printing industry is facing reshulttle.
Huaxin Color Printing pays adequate attention to technical innovation and management innovation means and timely adjusts operating strategies, including creating business promotion and customer development methods; adjusting credit extension and developing orders to grasp customers and allocate internal resources to key customers. Huaxin Color Printing targeted 2013 as the Year of Improvement to improve management levels by fine chemistry. Deep maintenance would be conducted on production field and offset printing workshop to improve refining and production efficiency.
By technical innovation and management upgrading, market shares of Huaxin Color Printing are rising steadily. With insufficient market demand, the Company still sails against the current and all demands of orders exceed supply. In 2013, operation revenue of Huaxin Color Printing has reached 248,310,000 Yuan, increased by8%. The operating profits has reached 15,830,000 Yuan, increased by26.57%.
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. In the reporting period, subsidiaries acquired and disposed:
□Applicable√Inapplicable
VII. Prediction of operating performance from January to March in 2014
Cautions and reasons of prediction of accumulative net profit might be losses or changed by a large margin compared with the same period of last year from the beginning of year to next reporting period
□Applicable√Inapplicable
VIII. Outlook of theCompany’s future development
(1) Development trends in the industry and market competition situation faced by the Company
Entering into 2014, the operating environment in the industry is very severe; adjustment of domestic economic structure and declining consumption decelerate the demand growth; export and fund supply is not optimistic due to RMB exchange rate fluctuation and rising domestic production costs; the economic environment is unsatisfactory.
Domestic market of papermaking industry is not development and original production capacity is not completed, while the next capacity is increased. According to industry information, the predicted production capacity of white cardboard in 2014 has reached 2,100,000 tons and overall domestic production capacity has reached 11,800,000 tons; the increased production capacity of white cardboard has reached 2,200,000 tons. The market competition becomes white-hot and product prices face the pressure of declining. It is predicted that management environment in 2014 is not optimistic than 2013.
Therefore, the Company would insist operating strategy of innovation, transformation and upgrading. By innovation and transformation, it is to develop new products and market and customized and differentiated products. It is to grasp new opportunities to create advantages in competition, overcome all difficulties and develop in adverse condition.
(II) Opportunities and Strategies for Future Development of the Company
1. Opportunities for Future Development: The
―12th
Five-Year DevelopmentPlan‖ for the papermaking industry requires the domestic paper makers to optimize the industrial, product and organizational structures, and attaches greater importance to ecological environment protection and energy saving& emission reduction, which may be achieved through upgrading or washing out laggard production capacity and enhancing the new product development ability and brand building ability.What‘s ahead of the papermaking industry will be a key period for major upgrading and adjustment. As the government keeps raising the environmental protection standards for the papermaking industry, operation costs of paper makers will increase considerably. This will help wash out laggard production capacity and promote the transformation to the low-energy-consumption and low-pollution development mode, which will bring opportunities to large-sized and excellent paper makers.
2. Strategies for Future Development: The Company adheres to the philosophy of enlarging and strengthening the main business. In order to further expand theCompany‘s capability for sustainable development, enrich its industrial structure and enhance its capability of sustained profits, on one hand, the Company actively makes industry acquisitions (acquiring Zhuhai Golden Pheasant Chemical in 2012 to reach out to the upstream industry), enlarges the business scale and creates new profit growth points. It also concentrates on developing high-end paper, enlarges its market share of cigarette packets, opens up the food paper field and enters into the market area of liquid packaging board, so as to take a diversified paper-making path featuring environmental protection and
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. high added value. On the other hand, the Company looks for an opportunity to carry out vertical industrial expansion and enter upstream industrial fields of forestation& pulping and paper-making supporting by integrating paper-making, printing and other resources, enhancing its financing and expansion capability and making use of the existing platforms and resources, so as to become a green environmentally friendly packaging solution provider integrated with design, development, manufacture and service, as well as a leader in the green environment friendly packaging industry.
(III) Business Plan for 2014
Considering its development strategy, the Company will concentrate on the following tasks:
1. Development strategies of promoting upgrading and transformation of old subsidiaries and factories and product transformation.
2. Hongta Renheng insists product transformation and upgrading, continuous input development and new profit contribution.
(1) To consolidate achievements of product transformation and upgrading: to increase input of fixed assets and research and development, develop new product market.
(2) To further development product deep processing: to strengthen coated production line management, improve product quality and accelerate coated line efficiency and improve product added values.
(3) To implement production and operation of Jinji Chemistry Phase II and achieve profitability.
3. Huaxin Color Printing would enlarge production capacity and welcome the new development opportunities by the development momentum
(1) The Phase III of cleaning workshop would be started on April 8, 2013. After completion of the project, new workshop should comply with national cleaning industry and green printing requirements and provide powerful protection for high-end customers and international market.
(2) It is planning to establish the printing and packaging base in Yangtze River Delta and expand or merge at the right time.
4. It is to continue the shareholding reform and capital operation to improve management development of the Company.
(1) To promote the acquisition of20% stock rights of Chengtong Finance Company and further accomplish stock change.
(2) To strengthen the research and tracking of capital market and make a breakthrough for the B-stock problems left over by history.
(IV) Future Fund Requirement and Application Plan
The Company belongs to capital intensive industry and resource-constrained industry. Along with further expansion of business scale and productivity of the Company, particularly the equity acquisition project and several production expansion projects, the capital needs of the Company will increase distinctly. According to fund need for future development strategy, the Company will adopt measures as follow to ensure sufficient funding:
1. To make reasonable use of self-own capital, expand sales channel actively and enhance assessment of customer credit and management over receivables, so as to speed up the recovery of funds, improve asset liquidity of the Company, and properly increase the proportion of retained profit;
2. To actively establish favorable communication and cooperation relationships with local financial institutes and seek loan support from commercial banks;
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 3. To make good use of the financial platform of Chengtong Finance Co., Ltd. as another capital supply channel to reduce financing cost;
4. To intensify effort in tracking and studying the capital market and monetary market policies, follow up the B-share market reform, keep an eye on change of relevant policies, seize strategic opportunities in time, improve the financing ability, optimize the capital structure, enhance the financing ability and strengthen cost control, so as to promote long-term development of the Company.
(V) Major Risks and Countermeasures
The prosperity of the papermaking industry is closely related to the macro economic cycle. Currently, the industry is facing risks such as structural over-capacity, increasing fierce competition, unsteady prices of raw materials, stricter national standards for environmental protection and interest rate fluctuations that may affect theCompany‘s financial cost. Considering the aforesaid risk elements, the Company is to adopt the following countermeasures:
Firstly, adhering to the strategy of transformation and upgrading, the Company will enrich its product range through product innovation, adjust the product structure and increase the product quality to maintain its competitive edges in the cigarette packet market. Meanwhile, it will focus on developing high-grade liquefied food packaging board with high technological contents and added value, provide food packaging board meeting the hygienic standards and develop product series related to paper post-processing and deep-processing, so as to solidify its position in the green packaging market and the food packaging paper market, expand the product range and ensure its profitability. Secondly, the Company will make full use of purchasing center, seize opportunities by deep situation analysis, closely pay attention to market information and price movements of bulk materials such as wood pulp, coal and waste paper, timely arrange integrated strategic purchase, and cut down production cost of the enterprise. In addition, the funds from the equity transfer and the issue of corporate bonds will replace the bank loans with high interest rates, further reducing the comprehensive financing costs. It will also try other financing channels with a low cost and try to seize the opportunity for equity financing to reduce liabilities. IX. 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
N/A
X. Explanation of the changes of the accounting policy, the accounting estimates and the accounting methods compared to the last financial report
N/A
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. XI. Explanation of the significant accounting correction of errors that needed to make retroactive statement during the reporting period
N/A
XII. Explanation of the changes of the consolidated statement scale compared to the last financial report
N/A
XIII. 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
In the reporting period, the Company did not adjust or alter its dividend policy. On 12 Jun. 2012, the―Articles ofAssociation‖ of the Company was revised on the
5th
Session of the
5th
Board of Directors for 2012. In terms of the dividend ratio, the new―Articles ofAssociation‖ said,―Profit distribution ratio: The distributed profit shall not exceed the cumulative distributable total profit. After reserving enough capital for needs in normal production and operation, as well as for statutory reserve and surplus reserve, if no significant investment plan or cash disbursement is expected to occur, the Company shall distribute cash dividends. And the profit accumulatively distributed in cash in the recent three years shall not be less than30% of the annual average distributable profit in the recent threeyears.‖ Meanwhile, the Company formulated the―Management Rules for ProfitAllocation‖, further specifying its profit allocation policy, decision-making mechanism, supervision mechanism and alteration procedure. On 18 Jul. 2012, the―Plan for Returns for Shareholders in the Coming Three Years(2012-2014)‖ was formulated on the
7th
Session of the
5th
Board of Directors for 2012, further specifying the bonus plan. In the reporting period, the Company did not make a new cash dividend policy or change the old one. During the reporting period, 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, with the total dividends accounting for18.83% of the net profit attributable to the Company in 2012. The dividend plan was approved by the 2012 AnnualShareholders‘ General Meeting on 15 May 2013. And execution of the said profit allocation plan was completed by 31 Dec. 2013.
|||
|-|-|
|Special statement about the cash dividend policy||
|In compliance with the Company‘s Articles of||
||Yes|
|Association and 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||
||Yes|
|played their due role.||
|Minority shareholders have the chance to fully express||
|their opinion and desire and their legal rights and|Yes|
|interests were fully protected.||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
|In adjustment or alteration of the cash dividend policy,||
|the conditions and procedure were in compliance with|The cash dividend policy remained the same.|
|regulations 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 2011: Based on the total shares of the Company as at 31 Dec. 2011, a dividend of RMB 2.00 (tax included) (RMB 1.8 after tax) was distributed for every 10 shares held by all shareholders. The dividend plan was approved on the
3rd
Session of the
5th
Board of Directors for 2012 and unveiled on 10 Apr. 2012, with the total dividends accounting for90.31% of the net profit attributable to the Company in 2011. It was approved by the 2011 AnnualShareholders‘ General Meeting on 3 May 2012. And execution of the said profit allocation plan was completed by 31 Dec. 2012.
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 was approved on the
1st
Session of the
5th
Board of Directors for 2013 and unveiled on 18 Apr. 2013, with the total dividends accounting for18.83% of the net profit attributable to the Company in 2012. It was approved by the 2012 AnnualShareholders‘ General Meeting on 15 May 2013. And execution of the said profit allocation plan was completed by 31 Dec. 2013.
Profit distribution pre-plan for 2013: Because the Company will have a large-amount cash disbursement plan, it plans not to distribute profit for 2013. And the said pre-plan was approved on the
1st
Session of the
5th
Board of Directors for 2014.
Cash dividend distribution of the Company over the recent three years:
Unit: Yuan
|||||
|-|-|-|-|
||||Ratio the amount of cash|
|||Net profit attributable to||
||||dividend to the net profit|
||Amount of cash dividend|shareholders of the Company in||
|Year|||attributable to shareholders of|
||(tax included)|the consolidated statement for||
||||the Company in the|
|||the year||
||||consolidated statement (%)|
|2013|0.00|79,060,852.74|0%|
|2012|50,542,500.00|268,480,430.68|18.83%|
|2011|101,085,000.00|111,933,677.75|90.31%|

 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
|||
|-|-|
|Reason for the Company (including its subsidiaries) making||
|profit in the reporting period with the retained profit of the||
||Function and use plan for retained profit|
|Company (without subsidiaries) being positive, but not putting||
|forward a preplan for cash dividend distribution||
|Owning to the significant capital expense plan in 2014, including||
||Used for mergers and acquisitions development projects and|
|the purchasing of 20% equity of Chengtong Financial Co., Ltd.,||
||expansion projects.|
|the expansion project investment of Zhuhai S.E.Z. Hongta||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||
|-|
|Renheng Paper, the investment of Phase II expansion project of|
|Zhuhai Jinji Chemicals and Phase III extension project|
|investment of Huaxin (Foshan) Color Printing Co., Ltd., the|
|Company needed to enlarge the capital investments and increase|
|the operation funds requirements. Because the large funds|
|requirements, the proportion of retained income increased, and|
|no profits will be distributed in 2013.|

XIV. Pre-plan for profit allocation and turning capital reserve into share capital for the reporting period
|||
|-|-|
|The equity base number of the distribution plan||
||505,425,000|
|(share)||
|The total amount of cash bonus (tax-inclusive)|0.00|
|Distributable profit (RMB Yuan)|787,821,828.63|
|Cash dividend policy:||
|Others||
|Detailed description of the pre-arranged planning of the profit distribution and transferring the capital reserve into equity||
|Owning to the significant capital expense plan in 2014, including the purchasing of 20% equity of Chengtong Financial Co., Ltd.,||
|the expansion project investment of Zhuhai S.E.Z. Hongta Renheng Paper, the investment of Phase II expansion project of Zhuhai||
|Jinji Chemicals and Phase III extension project investment of Huaxin (Foshan) Color Printing Co., Ltd., the Company needed to||
|enlarge the capital investments and increase the operation funds requirements. So 2013 was planed not to distribute profit and||
|transfer the capital reserve into equity.||

XV. Social responsibilities
The Company has always adhered to the philosophy of environment-friendly and green papermaking. With integration of woods, wood pulp and paper, as well as sustainable development, as the direction, the Company has been exploring a mechanism to achieve both economic and social benefits. Meanwhile, with creating fortune for the society, creating value for shareholders and creating opportunities for employees as its task, the Company has been operating in compliance with laws and regulations, proactively improving various conditions in production and operation, improving the production techniques, producing best-quality and hygienic products and reducing emission of pollutants. Being friendly to the environment, caring to employees and responsible to customers, the Company has been trying to increase social benefits in operation.
Over recent years, subordinate subsidiaries of the Company have passed the food safety management system certification, the quality management system certification, the environment management system certification, the occupational security and health management system certification, the FSC forest system certification and the QS certification, as well as taking the initiative to carry out the clean production certification ahead of thegovernment‘s mandatory regulations. TheCompany‘s subordinate Zhuhai Huafeng is the first paper maker in China to pass the occupational security and health management system certification, and Hongta Renheng is the first paper maker in China to pass the food safety management system certification, demonstrating theCompany‘s being responsible to its employees and product quality, as well as its wish and practice to build an environment-friendly enterprise. In terms
of energy saving and emission reduction, subordinates of the Company have won the title of―Environmental ProtectionModel‖ for
quite a few consecutive years. In addition, Hongta Renheng has been honored by China Paper Association as―China Papermaking
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Environment Friendly Enterprise forY2010-2011‖.
The Company continued to carry out the emission reduction and energy saving projects in 2013. Firstly, the Zhuhai Huafeng water reclaiming project had put into production of mission, helped enhance water recycling, reduce water consumption and achieve the goal of energy saving and emission reduction; Secondly, the Hongta Renheng waste water biochemical treatment project had put into operation, helped further increase the ability of water pollutant treatment.
Does the listed company or its subsidiaries belong to the heavily polluting industries stipulated by the environmental protection authorities of the country?
□ Yes√ No
Does the listed company or its subsidiaries have any other significant social security problems?
□ Yes√ No
Any administrative punishment during the reporting period?
√Yes□ No
Punishment events, measures and rectification
No significant influencing punishment events.
XVI. Particulars about researches, visits and interviews received in this reporting period
|||||||
|-|-|-|-|-|-|
||||||Main discussion and|
|Time of reception|Place of reception|Way of reception|Visitor type|Visitor|materials provided by the|
||||||Company|
|||Telephone|||The operation and industry|
|11 Jan. 2013|||Individual|Cai Bo||
|||Communication|||of the Company|
|||Telephone|||The operation and products|
|7 Feb. 2013|||Individual|Wu Hongqiang||
|||Communication|||of the Company|
|||Telephone|||The operation of the|
|18 Feb. 2013|||Individual|Mr. Zhang||
|||Communication|||Company|
|||Telephone||||
|21 Feb. 2013|||Individual|Wu Hongqiang|The products and industry|
|||Communication||||
|||Telephone|||The environmental|
|11 Mar. 2013|||Individual|Wu Hongqiang||
|||Communication|||protection of the Company|
||||||The operation of the|
|||Telephone|||Company and if the|
|1 Apr. 2013|||Individual|Mr. Ma||
|||Communication|||Company issued the|
||||||performance report|
|||Telephone|||The operation of the|
|26 Apr. 2013|||Individual|Mr. Li||
|||Communication|||Company|
|||Telephone|||The operation of the|
|28 Apr. 2013|||Individual|Wu Hongqiang||
|||Communication|||Company|
||||||The operation and Zhuhai|
|||Telephone||||
|2 May 2013|||Individual|Mr. Liu|Doumen Project of the|
|||Communication||||
||||||Company|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
||Telephone|||The operation of the|
|23 May 2013||Individual|Mr. Yu||
||Communication|||Company|
||Telephone|||The operation of the|
|25 May 2013||Individual|Xie Guangrong||
||Communication|||Company|
||Telephone|||Enquired of the bonus|
|12 Jul. 2013||Individual|Mr. Chen Zheping||
||Communication|||issues|
||Telephone|||Given advice of the asset|
|2 Sep. 2013||Individual|Mr. He||
||Communication|||restructuring|
||||Journalist of||
||Telephone|||Enquired of the assets|
|23 Sep. 2013||Other|Shenzhen||
||Communication|||restructuring issues|
||||Economic Daily||
||Telephone|||Given advice of the asset|
|18 Oct. 2013||Individual|Mr. He||
||Communication|||restructuring|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Section V. Significant Events
I. Significant lawsuit or arbitration
√Applicable□ Inapplicable
|||||||||
|-|-|-|-|-|-|-|-|
||Amount|||||||
|Basic information||Whether|Progress of|Results and|Implementation|||
||involved in|||||||
|about||resulting in|litigations|influence of|of adjudication|Disclosure|Index for|
||the|||||||
|litigations(arbitrati||anticipated|(arbitrations|litigations|of litigations|date|disclosure|
||case(RMB|||||||
|ons)||liabilities or not|)|(arbitrations)|(arbitrations)|||
||0‘000)|||||||
|Basic detail on the||||||||
|dispute case of||||||||
|transfer agreement,||||||||
|in which Huafeng||||||||
|Paper Co., Ltd||||||||
|appeals Stora Enso||||||||
|Packing Boards||||||||
|Asia Oy||||||||
||||||||http://www.c|
|(hereinafter refer||||||||
|to as Stora Enso),|||||||ninfo.com.cn.|
|has a final|||||||2010 Annual|
|judgment by|||||||Report|
||||Had judged|||||
|Guangdong Higher|||||||disclosed on|
||||and had|won the lawsuit||||
|People‘s Court,|||||||2 Mar. 2011;|
||||already|and received||||
|and had completed|2,051.9|No|||Completed|9 Jul. 2013|and the 2013|
||||completed|defendant||||
|the execution. On|||||||announcemen|
||||the|compensation||||
|5 Nov. 2013, the|||||||ts of which|
||||execution.|||||
|Company‘s|||||||the No were|
|subsidiary--|||||||2013-036 and|
|Huafeng Paper,|||||||2013-069|
|which received the|||||||respectively.|
|execution amounts||||||||
|(exchange losses||||||||
|and execution fees||||||||
|deducted) of RMB||||||||
|20,258,966.54||||||||
|from Zhuhai||||||||
|Intermediate||||||||
|People's Court. Up||||||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||
|-|
|to now, the|
|proposition for the|
|lawsuit of the|
|Company and|
|Huafeng Paper had|
|completed the|
|execution.|

II.Media’s doubts
□ Applicable√ Inapplicable
There was no such a case in the reporting period where most of the media raised the same doubt about the Company.
III. Bankruptcy and reorganization
There was no any bankruptcy and reorganization situation in the reporting period.
IV. Asset transaction
1. Asset acquisition
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Relationsh|||
|||||||||ip between|||
|||||||Ratio of||the|||
|||||||the net||transaction|||
|||||Influence|Influence|profit||party and|||
|Transactio|Asset|Transactio|||||Related-pa||||
|||||on the|on the|contribute||the|Disclosure||
|n party or|acquired|n price|Progress||||rty|||Disclosure|
|||||Company‘|Company‘|d by the||Company|date (note||
|ultimate|or bought|(RMB Ten|(note 2)||||transaction|||index|
|||||s operation|s gain/loss|asset to the||(applicable|5)||
|controller|in|thousand)|||||or not||||
|||||(note 3)|(note 4)|Company||for|||
|||||||to the total||related-par|||
|||||||profit (%)||ty|||
|||||||||transaction|||
|||||||||s)|||
|Dragon|25%|||||||Related||Announce|
||||Payment|After|||||||
||||||Ownership||||||
|State|equities of||completed|completing||||representat|28 Jun.|ment No.|
||||||transforma||||||
|||4,986.26|and the|the||13.27%|Yes||||
|Internation|Foshan||||tion|||ive under|2013|2013-032;|
||||business|transaction|||||||
||||||completed||||||
|al Limited|(Huaxin)||license|, the||||same||2013-58.|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|ColorPrintingCo., Ltd|altered.|Company|actual|
|||will||
||||controller|
|||thicken the||
|||net profit||
|||of the||
|||Company||
|||shared||
|||rapid||
|||developme||
|||nt printing||
|||business of||
|||its wholly||
|||owned||
|||company:||
|||Foshan||
|||(Huaxin)||
|||Color||
|||Printing||
|||Co., Ltd||

2. Sale of assets
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Transactionparty||||Net|||||Relation||Whether||Indexfordisclosure|
|||||||Ratio of||||||||
|||||profit|||||ship|Whether|or not|||
|||||||the net||||||||
|||||contribu|||||between|or not|the|||
|||||||profit||||||||
|||||ted by|||||the|the|creditor‘|||
||||Transact||Influenc|contribu||||||||
|||||the asset|||||transacti|ownersh|s right|||
||||ion||e on the|ted to||||||||
|||||from the||||Related|on party|ip of the|and|||
||||price||Compan|the|Pricingprinciple|||||Date of||
||Asset|Date of||period-b||||transacti|and the|asset|liabilitie|||
||||(RMB||y‘s|Compan||||||disclosu||
||sold|sale||egin to||||on or|Compan|involve|s|||
||||Ten||operatio|y by the||||||re||
|||||the date||||not|y|d has|involved|||
||||thousan||n (note|asset||||||||
|||||of sale|||||(applica|been|have|||
||||d)||3)|sale to||||||||
|||||(RMB|||||ble for|fully|been|||
|||||||the total||||||||
|||||Ten|||||related|transferr|fully|||
|||||||profit||||||||
|||||thousan|||||transacti|ed|transferr|||
|||||||(%)||||||||
|||||d)|||||ons)||ed|||

V. Significant related-party transactions
1. Related-party transactions concerning routine operation
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Type of|Content|Pricing|Transacti|Transacti|Proportio|Settlemen||||
|Related|Relations||||||||Market|Disclosur|Index for|
|||the|of the|principle|on price|on|n in same|t method||||
|party|hip||||||||price|e date|disclosure|
|||related|related|of the|(RMB|amount|kind of|of the||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|||transactio|transactio|related|Ten|(RMB|transactio|related|
|||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|||188.61|1.11%|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|||727.55|19.3%|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|
||||Importing||||||
|ustry|Actual|related||negotiatio|Market|||and|
||||newspape|||1,140.6|30.26%||
|Investme|controller|transactio||n based|value|||telephone|
||||rs||||||
|nt||n||on the||||transfer|
|Corporati||||market|||||
|on||||value|||||
|China||||Being|||||
|National||||decided|||||
|Paper-ind||Routine||through||||Bank bills|
||||Purchasin||||||
|ustry|Actual|related||negotiatio|Market|||and|
||||g wood|||26,041.9|12.56%||
|Investme|controller|transactio||n based|value|||telephone|
||||pulp||||||
|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|||2,466.27|19.48%|and|
|g|actual|transactio||n based|value||||
||||service|||||transfer|
|Logistics|controller|n||on the|||||
|Co., Ltd.||||market|||||
|||||value|||||

2013 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.,||||||6,781.02|58.13%|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|||72.74|24.38%|and|
||actual|transactio||n based|value||||
|High-tech|||materials|||||transfer|
||controller|n||on the|||||
|Co., Ltd.|||||||||
|||||market|||||
|||||value|||||
|||||Being|||||
|||||priced|||||
|Foshan||||through|||||
||Under the|Routine|||||||
|Huaxin||||negotiatio||||Bank bills|
||same|related|Selling||Market||||
|Import &||||n||258.42|1.08%|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||172.48|0.06%|and|
||actual|transactio|||value||||
|Export|||board|according||||transfer|
||controller|n|||||||
|Co., Ltd.||||to the|||||
|||||market|||||
|||||value|||||
|||||Being|||||
|Guangdo|||||||||
||Under the|Routine||decided|||||
|ng|||Selling|||||Bank bills|
||same|related||through|Market||||
|Guanhao|||ivory|||107.03|0.04%|and|
||actual|transactio||negotiatio|value||||
|High-tech|||board|||||transfer|
||controller|n||n based|||||
|Co., Ltd.|||||||||
|||||on the|||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||market|||||
|||||value|||||
|||||Being|||||
|Guangdo||||decided|||||
|ng|Under the|Routine||through|||||
||||Selling||||||
|Chengton|same|related||negotiatio|Market||||
||||duplex|||0.41|0%|Transfer|
|g|actual|transactio||n based|value||||
||||board||||||
|Logistics|controller|n||on the|||||
|Co., Ltd.||||market|||||
|||||value|||||
|||||Being|||||
|||||decided|||||
|Yueyang|Under the|Routine||through|||||
|||||||||Bank bills|
|Forest &|same|related|Selling|negotiatio|Market||||
|||||||290.13|1.29%|and|
|Paper|actual|transactio|emulsion|n based|value||||
|||||||||transfer|
|Co., Ltd.|controller|n||on the|||||
|||||market|||||
|||||value|||||
|||||Being|||||
|||||decided|||||
|Yueyang|Under the|Routine||through|||||
|||||||||Bank bills|
|Antai|same|related|Selling|negotiatio|Market||||
|||||||9|0.04%|and|
|Industrial|actual|transactio|emulsion|n based|value||||
|||||||||transfer|
|Co., Ltd.|controller|n||on the|||||
|||||market|||||
|||||value|||||
|||||Being|||||
|Guangdo||||decided|||||
|ng|Under the|Routine|Renting|through|||||
|Chengton|same|related|out|negotiatio|Market||||
|||||||70.01|82.62%|Transfer|
|g|actual|transactio|constructi|n based|value||||
|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|100%|Transfer|
|||transactio|constructi|n based|value||||
|Export|||||||||
|||n|on|on the|||||
|Co., Ltd.|||||||||
|||||market|||||
|||||value|||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|Total|--|--|38,383.11|--|--|--|--|--|
|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||||||||
||coverage, the above related transactions are the continuous business relevant to routine||||||||
||operation, so it‘s expected that such related transactions will still exist in a certain||||||||
|Necessity and continuity of related|period. Generally speaking, the related transactions will give full play to the resources||||||||
|transaction as well as reason of choosing|and advantages of the related parties, strengthen the advantage of centralized purchase,||||||||
|the related party (but not other transaction|improve the efficiency of centralized purchase, decrease the purchasing and logistic||||||||
|parties) to conduct the said transaction|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 Huaxin Color||||||||
||Printing, Hongta Renheng, Zhuhai Huafeng, and Jinji Chemicals to conduct regular||||||||
||business, which are based on fair and mutual benefit, and will maintain normal||||||||
||business contact with each party.||||||||
||he 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.||||||||
|Dependant degree of the Company on|||||||||
||In the reporting period, the amount of related transactions was comparatively low and||||||||
|related party and relevant solutions for the|||||||||
||there existed no dependence.||||||||
|dependence (if any)|||||||||
|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|||||||||
|transaction price and market reference|The above related transaction prices were all from the market value.||||||||
|price|||||||||

2. Related-party transactions arising from acquisition and sale of assets
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Book|Assessed|Market|Transfer|||||
|||||||||||Gain/loss|||
|||Type of|Contents||value of|value of|fair|price|||||
|Related|||||||||Mode of|(RMB|||
|||the|of the|Pricing|the|the|value|(RMB|||Disclosu|Disclosu|
|transacti|Relation||||||||settleme|Ten|||
|||transacti|transacti|principle|transferr|transferr|(RMB|Ten|||re date|re index|
|on party|||||||||nt|thousand|||
|||on|on||ed asset|ed asset|Ten|thousand|||||
|||||||||||)|||
||||||(RMB|(RMB|thousand|)|||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Ten|Ten|)|||||
||||||thousand|thousand||||||
||||||)|)||||||
|||||Priceevaluated by the||||||||
||Related|||||||||||
||represent|||||||||||
|Dragon||||||||||||
||ative||||||||||No.2013|
|State||Purchase|Purchase|third||||||||
||under|||||||||28 June|-032;|
|Internati||of share|of share|party|4,199.5|4,986.26||4,986.26|Cash|||
||same|||||||||2013|2013-05|
|onal||equity|equity|intermed||||||||
||actual||||||||||8.|
|Limited||||iaryinstitution||||||||
||controlle|||||||||||
||r|||||||||||
|Impacts on the company‘s operating||||Huaxin color printing business maintained increase and stable in profits, and would||||||||
|results and financial condition||||increase the net profits of the parent company.||||||||

3. Credits and liabilities with related parties
Was there any non-operating credit or liability with any related party?
√ Yes□ No
|||||||||
|-|-|-|-|-|-|-|-|
|||||Whether||||
|||Type of||existing|Opening|Incurred|Closing|
|Related party|Relationship|credits and|Cause|occupation of|balance (RMB|amount (RMB|balance (RMB|
|||liabilities||non-operating|ten thousand)|ten thousand)|ten thousand)|
|||||funds||||
||||Being used to|||||
||||pay off bank|||||
|China Chengtong||Payable|loans of the|||||
||Ultimatelcontroller|||||||
|Holding Group Co.,||iabilities of|Company and|No|50,000|-8,125|41,875|
|Ltd.||related parties|to supplement|||||
||||circulating|||||
||||funds|||||
|Influence of the credits and liabilitieswith related parties on the businessresults and financial status of the||||||||
|||Borrowing from related creditors was beneficial for the increase of fund resources and the||||||
|||decrease of capital costs of the Company.||||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||
|-|
|Company|

VI. Significant contracts and their fulfillment
1. Information about guarantee
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|
|Foshan Chengtong|7 Aug.||||||||
||||||Guarantee of|2010.01.01-|||
|||4,000|27 Aug. 2010||||Yes|Yes|
|Paper Co., Ltd.|2010||||joint liability|2013.12.31|||
|Foshan Chengtong|28 Mar.|||||||Yes|
||||||Guarantee of|2013.03.14-|||
|||5,000|14 Mar. 2013|677.07|||No||
|Paper Co., Ltd.|2012||||joint liability|2014.03.14|||
|Zhuhai S.E.Z.|||||||No|Yes|
||28 Mar.||||||||
||||||Guarantee of|2012.3.27-2|||
|Hongta Renheng||33,000|27 Mar. 2012||||||
||2012||||joint liability|015.03.27|||
|Paper Co., Ltd.|||||||||
|Zhuhai S.E.Z.|||||||No|Yes|
||20 Apr.||||Guarantee of|2013.05.23-|||
|Hongta Renheng||10,000|11 Mar. 2013|9,145.35|||||
||2013||||joint liability|2014.05.22|||
|Paper Co., Ltd.|||||||||
|Zhuhai S.E.Z.|||||||No|Yes|
||25 Aug.||||Guarantee of|2012.8.24-2|||
|Hongta Renheng||20,000|24 Aug. 2012|20,000|||||
||2012||||joint liability|014.8.23|||
|Paper Co., Ltd.|||||||||
|Zhuhai S.E.Z.|||||||No|Yes|
||20 Nov.||||Guarantee of|2012.10.17-|||
|Hongta Renheng||15,000|1 Nov. 2012||||||
||2012||||joint liability|2014.12.31|||
|Paper Co., Ltd.|||||||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|Zhuhai S.E.Z.|||||||No|No|
||14 Feb.||||Guarantee of|2012.1.20-2|||
|Hongta Renheng||10,000|20 Jan. 2012||||||
||2012||||joint liability|014.1.20|||
|Paper Co., Ltd.|||||||||
|Foshan (Huaxin)|||||||||
||22 Nov.||||Guarantee of|2010.01.01-|||
|Color Printing Co.,||9,000|1 Jan. 2010||||Yes|Yes|
||2011||||joint liability|2013.12.31|||
|Ltd.|||||||||
|Zhuhai S.E.Z.|||||||No|Yes|
||14 Feb.||||Guarantee of|2012.1.20-2|||
|Hongta Renheng||10,000|20 Jan. 2012||||||
||2012||||joint liability|014.1.20|||
|Paper Co., Ltd.|||||||||
|Zhuhai Huafeng|13 Dec.||||Guarantee of|2013.10.29-|No|Yes|
|||30,000|16 Nov. 2013|13,434|||||
|Paper Co., Ltd.|2013||||joint liability|2016.10.28|||
|||||Total actual occurred amount|||||
|Total guarantee line approved for|||||||||
|||||of guarantee for the|||||
|the subsidiaries during the||195,000||||45,000|||
|||||subsidiaries during the|||||
|reporting period (B1)|||||||||
|||||reporting period (B2)|||||
|Total guarantee line that has been|||||||||
|||||Total actual guarantee balance|||||
|approved for the subsidiaries at|||||||||
|||146,000||for the subsidiaries at the end||43,256.42|||
|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||195,000||of guarantee during the||45,000|||
|(A1+B1)||||reporting period (A2+B2)|||||
|Total guarantee line that has been|||||||||
|||||Total actual guarantee balance|||||
|approved at the end of the|||||||||
|||146,000||at the end of the reporting||43,256.42|||
|reporting period|||||||||
|||||period (A4+B4)|||||
|(A3+B3)|||||||||
|Proportion of total guarantee amount (A4+B4) to the net assets|||||||||
|||||25%|||||
|of the Company|||||||||
|Of which:|||||||||
|||||All guarantees provided by the Company are for its controlled|||||
|Explanation on possible bearing joint responsibility of|||||||||
|||||subsidiaries. Currently, all the involved subsidiaries are in normal|||||
|liquidation due to immature guarantee|||||||||
|||||production and operation, without risk of insolvency.|||||
|Explanation on provision of guarantees for external parties in||||No provision of guarantees by the Company is in violation of the|||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
|violation of the prescribed procedure|prescribed procedure.|

Explanation about guarantee provided in the compound form
VII. 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
|||||||
|-|-|-|-|-|-|
|||Commitment|Time of|Term of||
|Commitment items|Promiser||||Execution|
|||contents|commitment|commitment||
|Commitments of share reform||||||
|Commitments made in acquisition reportor in report on changes of equity|China Paper|||||
|||Competition in||||
||Industry||||Normal|
|||different|15 Nov. 2005|Long-term||
||Investment||||execution|
|||industry||||
||Corporation|||||
|Commitments made at the time of assetsreorganization||||||
|Commitments made in the initial publicoffering or refinancing||||||
|Commitments made by the company toother medium and small shareholders||||||
|Executed timely or not?|Yes|||||

VIII. 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||
||135|
|Thousand Yuan)||
|Number of successive years of audit service||
||4|
|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 300,000 for the expenses of internal control audit and RMB 1,050,000 of annual report audit.
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. IX. Significant events of subsidiaries of the Company
TheCompany‘ssubsidiary—Foshan Chengtong Paper Co., Ltd. had received the Request Letter on the Coordination with the Plan for the Implement of the Upgrading of the North Area of Foshan Chancheng from Foshan People's Government Office on 18 Feb. 2014 (FFBH[2014] No. 91), and the production land of the Company had included in the scale of the upgrading plan of the north portal section. The production structure was not met with the urban planning demands at present, so the Company was required to carry out the plan for the enterprise moving as soon as possible.
X. 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 in2012‖ (No. 2012-037) was released;―Prospectus on the Public Issuance of CompanyBonds‖ and its abstract,―Analysis Report on Credit Rating of Company Bonds for2012‖ were disclosed. On 26 Nov.2012,―Announcement on Coupon Rate of Bonds of Huaxin (Foshan) Packaging Co., Ltd. in2012‖(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. On 8 Jan. 2013, the Company issued―Announcement on Listing Company Bonds for2012‖ (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).
2013 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|333,500,0|||||||333,500,0||
|||65.98%|||||||65.98%|
|corporations|00|||||||00||
||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%|||||||100%|
||00|||||||00||

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
Other contents that the Company thinks it is necessary to disclose or that securities regulatory institutions demand to disclose
□ Applicable√ Non-applicable
II. Issuance and listing of securities
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 1. Particulars about issuance of securities over the past three years till the end of the reporting period
||||||||
|-|-|-|-|-|-|-|
|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
There existed no issuance of securities over the past three years.
2. Explanations about changes in total amout of shares of the Company, structure of shareholders, corporate assets and liability structure
In the reporting period, there existed no change in total amount of shares and structure of shareholders.
III. Particulars about shareholders and actual controller
1. Amount of shareholders and shareholding
Unit: share
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Total number of shareholders till the end of the|||||
|Total number of shareholders during|||||||||
|||15,950||5th trading day before the date of disclosure of|||||
|the reporting period|||||||||
|||||annual report|||||
|Shareholding of shareholders owning over 5% shares|||||||||
||||Amount||||Pledged or frozen shares||
|||||Increase/|||||
|||Proportion|of shares||Amount||||
|||||decrease||Amount of|||
|Name of|Type of|of|till the||of||||
|||||during the||tradable|Condition of||
|Shareholder|shareholder|shareholdi|end of||non-trada|||Amount|
|||||reporting||shares|shares||
|||ng (%)|reporting||ble shares||||
|||||period|||||
||||period||||||
|Foshan HuaxinDevelopmentCo., Ltd.|State-ownedcorporation|65.2%|329,512,030|0|329,512,030|0|||
|Wu Haoyuan|Foreign naturalperson|0.51%|2,561,991|0|0|2,561,991|||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|Foreigncorporation|0.36%|1,830,634|-738659|0|1,830,634|||
|ZhanChangcheng|Domestic naturalperson|0.32%|1,600,000|-1041200|0|1,600,000|||
|Wu Fenqiang|Domestic naturalperson|0.26%|1,330,000|1330000|0|1,330,000|||
|Foshan Chan BenDe DevelopmentCo., Ltd.|State-ownedcorporation|0.23%|1,139,420|0|1,139,420|0|||
|Zheng Heng|Domestic naturalperson|0.2%|998,901|998,901|0|998,901|||
|Zhu Shijie|Domestic naturalperson|0.2%|987,472|-362928|0|987,472|||
|Liu Bin|Domestic naturalperson|0.19%|980,000|-130000|0|980,000|||
|Chen Cirou|Domestic naturalperson|0.19%|963,109|0|0|963,109|||
|Ma Zeqi|Domestic naturalperson|0.19%|959,762|959,762|0|959,762|||
|Particulars about strategic investors|||||||||
|or common legal persons who|||||||||
|became the top ten shareholders||N/A|||||||
|because of the issuance of additional|||||||||
|shares (if any)|||||||||
|||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||1,830,634|||||Domestically||
||||||||listed foreign|1,830,634|
||||||||shares||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|Zhan Changcheng|1,600,000|Domestically||
|||listed foreign|1,600,000|
|||shares||
|Wu Fenqiang|1,330,000|Domestically||
|||listed foreign|1,330,000|
|||shares||
|Zheng Heng|998,901|Domestically||
|||listed foreign|998,901|
|||shares||
|Zhu Shijie|987,472|Domestically||
|||listed foreign|987,472|
|||shares||
|Liu Bin|980,000|Domestically||
|||listed foreign|980,000|
|||shares||
|Chen Cirou|963,109|Domestically||
|||listed foreign|963,109|
|||shares||
|Ma Zeqi|959,762|Domestically||
|||listed foreign|959,762|
|||shares||
|PANG,KWOK SHI Peng Guoshi|780,704|Domestically||
|||listed foreign|780,704|
|||shares||
|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 shareholder of the Company carry out an agreed buy-back in the reporting period?
□ Yes√ No
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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|
|Foshan Huaxin Development||27 May||RMB 45793 ten|materials; distribution|
||Tong Laiming||19353992-5|||
|Co., Ltd.||1993||thousand|of packing machinery|
||||||and repairing services,|
||||||amplifiers and fittings,|
||||||decoration materials,|
||||||and drinks; information|
||||||consulting|
||Particulars about the controlling shareholder of the Company: Foshan Huaxin Development Co., Ltd.|||||
||(hereinafter referred to as ―FHD‖) holds 329,512,030 of the Company‘s state-owned corporate shares|||||
||(non-tradable), taking 65.2% of the total share capital. FHD was incorporated on May 27, 1993; its|||||
||legal representative is Tong Laiming; its registered capital is RMB 457.93 million; its business scope:|||||
|Operation results, financial|production, manufacture and distribution of packing materials, papermaking, cable, wire, new|||||
|situation, cash flow and|materials; distribution of packing machinery and repairing services, amplifiers and fittings,|||||
|future development|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 2012, the consolidated|||||
||operation revenue of FHD reached RMB 3.649 billion, total profits reached RMB 273 million, total|||||
||assets reached RMB 6.504 billion and net cash flow of operating activities reached RMB 14 million.|||||
|Particulars about||||||
|shareholding of controlling||||||
|shareholders controlling and||||||
||N/A|||||
|holding shares of other listed||||||
|companies during the||||||
|reporting period||||||

Changes in controlling shareholders during the reporting period
□ Applicable√ Non-applicable
3. Particulars about the actual controller
Legal person
|||||||
|-|-|-|-|-|-|
||Legal|||||
|||Date of||||
|Name of actual controller|representative||Organization code|Registered capital|Main business|
|||foundation||||
||/ head of unit|||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
||||||Investment and|
||||||development of capital|
||||||goods of major|
||||||industrial products,|
|China National Paper||22 Jan.|||metal materials, sales of|
||Tong Laiming||10000890-7|RMB 17,330,000,000||
|Industry Investment Corp.||1988|||raw materials and|
||||||products of chemical|
||||||light industry and|
||||||paper, import & export|
||||||industry.|
||China National Paper Industry Investment Corp. (named as China Paper Industry Investment Corp.|||||
||before rename) is the wholly-owned subsidiary of China Chengtong Holding Group Co., Ltd.|||||
||(hereinafter referred to as China CT) and is responsible for operation and management of business|||||
||platform of paper-making. China National Paper Industry Investment Corp. was founded in 1998|||||
||with the registered capital reaching RMB 2.319 billion. It was the original management company of|||||
||―national development funds for short-term supplies‖ and now is a subsidiary of China CT working|||||
||on development of paper pulp, process and manufacture of paper industry. In Feb. 2013, it renamed|||||
||as China Paper Industry Investment Corp. In the recent years, through capital operation and develop|||||
||of merger, China Paper rapidly enhanced its status in paper-making industry and its influence on this|||||
|Operation results, financial||||||
||industry was gradually increasing. In July 2009, China Paper acquired Zhanjiang Guanlong Paper|||||
|situation, cash flow and||||||
||Industrial Co., Ltd. and entered the field of specialty paper. In Dec. 2009, it acquired Guangdong|||||
|future development||||||
||Guanhao High-tech Co., Ltd., the biggest producer of thermo-sensitive paper in China. In Sep. 2010,|||||
||China Paper acquired Hunan Tiger Forest & Paper Group, controlled Yueyang Paper Industrial Co.,|||||
||Ltd., established industry of integrating paper with forest, converged advanced production line of|||||
||pulping and paper-making, the most multiply production line of pulping and the domestic biggest|||||
||self-operated forest base for paper-making. The predecessor of China Chengtong Holding Group Co.,|||||
||Ltd. is China Chengtong Group Corp. and was founded on 22 Jan. 1998 according to NMHEZ (1998)|||||
||No. 189 Article of State Bureau of Internal Trade with the approval of state administrative bureau. It|||||
||is a large logistics group managed by SASAC. China Chengtong Group Corp. owned the largest|||||
||transportation network which integrated storage, distribution with information in the mainland.|||||
|Particulars about||||||
|shareholding of controlling||||||
|shareholders controlling and|Guangdong Guanhao High-tech Co., Ltd. (600433.SH), Yueyang Forest & Paper Co., Ltd.|||||
|holding shares of other listed|(600963.SH).|||||
|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
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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%
Foshan Huaxin Packaging Co., Ltd
The actual controller controls the Company by the means of trust or other means of assets management
□ Applicable√ Inapplicable
4. Other Corporate Shareholder with a shareholding percentage over10%
|||||||
|-|-|-|-|-|-|
||Legal|||||
|Name of corporate|representative|Date of|||Main business or|
||||Organization code|Registered capital||
|shareholders|/ head of unit|foundation|||management activities|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Section VII. 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|||||1 June|1 June|||||
||of the|Incumbent|Male|44|||0|0|0|0|
|Laiming|||||2011|2014|||||
||Board||||||||||
||||||1 June|1 June|||||
|Wang Qi|Director|Incumbent|Male|60|||0|0|0|0|
||||||2011|2014|||||
||||||1 June|1 June|||||
|Wang Jun|Director|Incumbent|Female|41|||0|0|0|0|
||||||2011|2014|||||
||||||1 June|1 June|||||
|Yan Su|Director|Incumbent|Male|43|||0|0|0|0|
||||||2011|2014|||||
||||||1 June|1 June|||||
|Huang Xin|Director|Incumbent|Male|51|||0|0|0|0|
||||||2011|2014|||||
|Yang|||||1 June|1 June|||||
||Director|Incumbent|Male|43|||0|0|0|0|
|Weixing|||||2011|2014|||||
|Zhu|Independe||||1 June|1 June|||||
|||Incumbent|Male|49|||0|0|0|0|
|Zhengfu|nt Director||||2011|2014|||||
||Independe||||1 June|1 June|||||
|Zhao Wei||Incumbent|Male|53|||0|0|0|0|
||nt Director||||2011|2014|||||
|Yang|Independe||||1 June|1 June|||||
|||Incumbent|Male|43|||0|0|0|0|
|Zhenyu|nt Director||||2011|2014|||||
||Secretary||||||||||
|Zhou|of the|Resignatio|||1 June|22 July|||||
||||Male|47|||0|0|0|0|
|Qihong|Board of|n|||2011|2013|||||
||Directors||||||||||
||Secretary||||||||||
|Yang|||||19 July|1 June|||||
||of the|Incumbent|Male|43|||0|0|0|0|
|Yinghui|||||2013|2014|||||
||Board of||||||||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Directors||||||||||
||Chairman||||||||||
||of the||||||||||
||||||1 June|1 June|||||
|Hong Jun|Supervisor|Incumbent|Male|54|||0|0|0|0|
||||||2011|2014|||||
||y||||||||||
||Committee||||||||||
|Huang|||||1 June|1 June|||||
||Supervisor|Incumbent|Male|57|||0|0|0|0|
|Jianrong|||||2011|2014|||||
|Yang||Resignatio|||1 June|11 July|||||
||Supervisor||Male|43|||0|0|0|0|
|Yinghui||n|||2011|2013|||||
|Chen|||||17 July|1 June|||||
||Supervisor|Incumbent|Male|47|||0|0|0|0|
|Zhenran|||||2013|2014|||||
||General||||1 June|1 June|||||
|Wang Qi||Incumbent|Male|60|||0|0|0|0|
||Manager||||2011|2014|||||
||Vice||||||||||
|Ji|||||1 June|1 June|||||
||General|Incumbent|Male|39|||0|0|0|0|
|Xiangdong|||||2011|2014|||||
||Manager||||||||||
||Vice||||||||||
|Zhou||Resignatio|||1 June|22 July|||||
||General||Male|46|||0|0|0|0|
|Qihong||n|||2011|2013|||||
||Manager||||||||||
||Vice||||||||||
|Yang|General||||11 Oct.|1 June|||||
|||Incumbent|Male|43|||0|0|0|0|
|Yinghui|Manager,||||2013|2014|||||
||CFO||||||||||
||Vice||||||||||
|Liu|||||1 June|1 June|||||
||General|Incumbent|Male|44|||0|0|0|0|
|Hanwen|||||2011|2014|||||
||Manager||||||||||
||Vice||||||||||
||||||1 June|1 June|||||
|Chen Jiali|General|Incumbent|Male|56|||0|0|0|0|
||||||2011|2014|||||
||Manager||||||||||
||Vice||||||||||
|Qiu||Resignatio|||1 June|14 Jan.|||||
||General||Male|41|||0|0|0|0|
|Ruquan||n|||2011|2013|||||
||Manager||||||||||
||Vice||||||||||
|||Resignatio|||1 June|31 July|||||
|Liu Wenbo|General||Male|60|||0|0|0|0|
|||n|||2011|2013|||||
||Manager||||||||||
|Total|--|--|--|--|--|--|0|0|0|0|

 II. Information about employment
Main work experience of current directors, supervisors and senior executives during the recent 5 years
Chairman of the Board: Tong Laiming, born in 1969, is a master of economics and certified public accountant. He
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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.
Vice Chairman of the Board& General Manager: Wang Qi, born in 1953, was a MBA degree holder and economist. From Jan. 1995 to May 2008, he held posts in Foshan Huaxin Development Co., Ltd as the Chairman of the Board, Vice Chairman of the Board and General Manager; from Jun. 1999 to May 2008, he served in Foshan Huaxin Packaging Co., Ltd as Chairman of the Board. From May 2008 up to now. From Jul. 2008 up to now, he has been taking the post of Foshan Huaxin Packaging Co., Ltd as Vice Secretary of the CPC.
Director: Wang Jun, born in 1972, is an MBA degree holder. From Dec. 1996 to Oct. 1998,she acted as Director and Clerk in propaganda department of Party Committee of organ directly under Ministry of Trade of PRC; from Oct. 1998 to Feb. 2006, she acted as Assistant GM, Manager of HR Administration Department and Member of Discipline Committee of China National Materials Development& Investment Corporation. She has been Deputy GM of China National Materials Development& Investment Corporation since Nov. 2006.
Director: Yan Su, born in 1970, is an MBA degree holder, senior accountant, CPA and CTA. From Aug. 2000 to Apr. 2006, successively held posts in Huaxing Import& Export Co., Ltd as Manager of Finance Department, Chief Economist and Deputy General Manager; from Apr. 2006 up to now, he has been serving in China National Paper-industry Investment Corp. as Assistant of General Manager, Chief Financial Officer, now as Chief Accountant. He acted as Vice Secretary of Party Committee of Foshan Huaxin Development Co., Ltd from Jun. 2007 to Jul.2008. From May 2007 up to now act as Director of Foshan Huaxin Packaging Co., Ltd.; From Feb. to Jun. of 2009, he was Chairman of the Board of Foshan Huafeng Paper Co., Ltd. From Jun. 2009 up to now, he has been Chairman of the Board of Foshan Chengtong Paper Co., Ltd. From Nov. 2009 up to now act as Director of Guangdong Guanhao High-tech Co., Ltd. From Mar. 2013 up to now act as Chairman, General Manager and legal representative of MCC Paper Group Co., Ltd.
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 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 Deputy General-Manager. He has been acting as General Manager of Hunan Taige 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.
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 Chariman of Foshan East Asia Co., Ltd.; from Dec. 2013 up to now, he has been acting as Director, Executive Deputy General Manager in Foshan Investment Holodings Co., Ltd.
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Independent Director: Zhu Zhengfu, born in 1964, is a doctoral degree holder and lawyer. Since 1993, he had successively worked as Director of Finance& Property Department in Guangdong Economic and Trade Law Firms, partner of Guangdong Dalu Law Firm; Deputy Director of Land Law Advisory Services Center of Guangdong, which belongs to Guangdong Provincial Department of Land and Resources. He has been acting as Director and executive partner of Guangdong Kunlun Law Firm since 1998.
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.
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.
Chairman of the Supervisory Committee: 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 has been acting 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 since May 2008.
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.
Supervisor: Chen Zhenran, born in 1966, is a MBA degree holder and Machanical 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.
Deputy 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
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Co., Ltd. He has been acting as Deputy General Manager in Zhuhai Hongta Renheng Paper Co., Ltd since Jan. 2009,and now is the General Manger. He acted as the Assistant General Manager in China Materials Development Investment Corporation from May to Jul. 2009. He has been acting as Deputy General Manager in Foshan Huaxin Packaging Co., Ltd since Jul. 2009.
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.
Vice General Manager: Liu Hanwen, born in 1969, secondary school education, 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.
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.
Former Supervisor: Yang Yinghui, from Jun. 2011 to Jul. 2013, he acted as Supervisor (Staff Representative) in Foshan Huaxin Packaging Co., Ltd. (resume as the above and was omitted)
Former Vice General Manager and Secretary of Board of Directors: Zhou Qihong, was born in 1967, an engineer. He took post of Vice GM of Foshan Huaxin Development Co., Ltd. from Aug. 2004 to Jul. 2006; as Secretary to the Board in Foshan Huaxin Packaging Co., Ltd. from Sep. 2006 to present; as Secretary of Party Committee, Standing Vice GM of Foshan Huafeng Paper Co., Ltd. from Feb. to Jun. of 2009; as Vice GM of Foshan Chengtong Paper Co., Ltd. from Jun. 2009 to April 2012; as Vice GM of Zhuhai Hongta Renheng Paper Co., Ltd. from Dec. 2009 to present; and as Vice GM of Foshan Huaxin Packaging Co., Ltd. since Jun. 2011.
Former Vice General Manager: Liu Wenbo, born in 1953, is a university degree holder, senior engineer. He took posts of Deputy Director of Shanxi Xianyang Paper Production Plant from Apr. 1984 to Aug. 1992; of GM of Dongguan Changan Changzhong Paper Plant, Director of Dongguan Zhangmutou Zhongnan Paper Plant from Aug. 1992 to Dec. 1994; he worked in Zhuhai Hongta Renheng Paper Co., Ltd. since Dec. 1994 and has been acting as Vice GM from Feb. 1997; from Jun. 2011 to present, he worked as Vice GM of Foshan Huaxin Packaging Co., Ltd.
Former Vice General Manager: Qiu Ruquan, born in 1972, is a master degree holder, engineer. He acted as Vice GM in Technology Department of Zhuhai Hongta Renheng Paper Co., Ltd. from Jun. 2001 to Jan. 2004; as GM in Technology Department of Asia Pacific Resources International Limited (hereinafter refer to as―APRIL‖) SSYMB, subordinated to APRIL; Executive Manager of APRIL SSYMB; as Vice GM of Zhuhai Hongta Renheng Paper Co., Ltd. from Jun. 2009 to present; and as Vice GM of Foshan Huaxing Packaging Co., Ltd. from Jun.
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 2011 to Jan. 2013. On 11 Jan. 2013, he resigned his post in the Company.
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||||
||China National Paper Industry Investment|Vice General||||
|Wang Jun|||1 Nov. 2006||Yes|
||Corp.|Manager||||
||China National Paper Industry Investment|Chief||||
|Yan Su|||1 Apr. 2006||Yes|
||Corp.|Accountant||||
|||Vice General||||
|||Manager||||
||China National Paper Industry Investment|(now was||||
|Huang Xin|||1 May 2012||Yes|
||Corp.|Executive||||
|||Vice General||||
|||Manager)||||
|||Secretary of||||
|||the Party||||
||China National Paper Industry Investment|||||
|Hong Jun||Committee,|1 Sep. 2007||Yes|
||Corp.|||||
|||Vice General||||
|||Manager||||
||Foshan Chan Ben De Development Co.,|General||||
|Yang Weixing|||1 Jun. 2007||Yes|
||Ltd.|Manager||||

Employment in other entities
√ Applicable□ Non-applicable
|||||||
|-|-|-|-|-|-|
||||||Whether receiving|
|||Posts held in||||
|Name of|||Start date of|Expiration|subsidies and|
||Name of other companies|shareholders‘||||
|employers|||tenure|Date of tenure|remuneration in|
|||companies||||
||||||other companies|
|||Director,||||
|Zhu Zhengfu|Guangdong Kunlun Law Firm|Executive|1 Aug. 1998||Yes|
|||Partner||||
|||Vice||||
|Zhao Wei|China Paper Association|Chairman|1 Jan. 1998||Yes|
|||and||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|||concurrent|||
|||Secretary|||
||Grant Thornton China and Ascenda||||
|Yang Zhenyu||Partner|1 Sep. 2009|Yes|
||Certified Public Accountants||||

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||||0|||
|Tong Laiming||Male|44|Incumbent||0|0|
||the Board|||||||
||Vice Chairman||||79.36|||
||of the Board,|||||||
|Wang Qi||Male|60|Incumbent||0|102.59|
||General|||||||
||Manager|||||||
|Wang Jun|Director|Female|41|Incumbent|0|0|0|
|Yan Su|Director|Male|43|Incumbent|0|0|0|
|Huang Xin|Director|Male|51|Incumbent|0|0|0|
|Yang Weixing|Director|Male|43|Incumbent|0||38|
||Independent||||8|||
|Zhu Zhengfu||Male|49|Incumbent||0|8|
||Director|||||||
||Independent||||8|||
|Zhao Wei||Male|53|Incumbent||0|8|
||Director|||||||
||Independent||||8|||
|Yang Zhenyu||Male|43|Incumbent||0|8|
||Director|||||||
|Hong Jun|Chairman of|Male|54|Incumbent|0|0|0|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||||
|-|-|-|-|-|-|-|-|
||the Supervisory|||||||
||Committee|||||||
|Huang|||||16.13|||
||Supervisor|Male|57|Incumbent||0|16.13|
|Jianrong||||||||
|Chen Zhenran|Supervisor|Male|48|Incumbent|88||48|
|Yang Yinghui|Supervisor|Male|43|Resignation||||
||Vice General||||89.87|||
|Ji Xiangdong||Male|39|Incumbent||0|81.03|
||Manager|||||||
||Vice General||||49.31|||
||Manager, CFO,|||||||
|Yang Yinghui|Secretary of|Male|43|Incumbent||0|37.7|
||the Board of|||||||
||Directors|||||||
||Vice General||||15.49|||
||Manager,|||||||
|Zhou Qihong|Secretary of|Male|46|Resignation||0|35.96|
||the Board of|||||||
||Directors|||||||
||Vice General||||30.57|||
|Liu Wenbo||Male|60|Resignation||0|44.1|
||Manager|||||||
||Vice General||||68|||
|Chen Jiali||Male|56|Incumbent||0|53.76|
||Manager|||||||
||Vice General||||56.15|||
|Liu Hanwen||Male|44|Incumbent||0|48.6|
||Manager|||||||
||Vice General||||8.8|||
|Qiu Ruquan||Male|41|Resignation||0|36.58|
||Manager|||||||
|Total|--|--|--|--|525.68|0|528.45|

 Information about stock incentive granted to directors, supervisors and senior executives in the reporting period
□ Applicable√ Inapplicable
IV. Changes in engagement and dismissal of Directors, Supervisors and Senior Management Staffs within the reporting period
||||||
|-|-|-|-|-|
|Name|Position|Type|Date|Reason|
||Supervisor (Staff||||
|Yang Yinghui||Retirement|11 Jul. 2013|Job changes|
||Representative)||||
||Supervisor (Staff||||
|Chen Zhenyan||Be voted|17 Jul. 2013|By-election of Supervisor of Staff Representative|
||Representative)||||
|Qiu Ruquan|Vice General|Retirement|14 Jan. 2013|Job Transfer|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
||Manager||||
||Vice General||||
|Liu Wenbo||Retirement|31 Jul. 2013|Retirement|
||Manager||||
||Vice General||||
||Manager,||||
|Zhou Qihong|Secretary of the|Retirement|22 Jul. 2013|Job Transfer|
||Board of||||
||Directors||||
||Vice General||||
|Yang Yinghui||Recruitment|19 Jul. 2013|Job Transfer|
||Manager||||
||CFO, Secretary||||
|Yang Yinghui|of the Board of|Recruitment|11 Oct. 2013|Job Transfer|
||Directors||||

V. Employees of the Company
Employees of the Company and professional structure: The Company has 2,808 in-service employees, including 1,559 production staff, 388 sales staff, 162 technical staff, 424 financial staff and administrative staff and 275 other staff. Classified according to education background, 325 employees hold bachelor degree or above, 420 employees have college diploma and 2,064 employees are of or under degree of secondary technological school, senor middle school or technical school.
There existed no retirees whom the Company will bear the expenses while 19 retired staff the Companywon‘t bear. The staff above included staff from subsidiary holding company.
Structure of the Segregation of Duties
Production staff
Sales staff
Tenical staff
Financial staff and administrative staff
Other staff
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Structure of Education Background
Bachelor degree or above
College diploma
Under degree of secondary
technological school, senor middle
school or technical school
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Section VIII. 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.
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. (VIII) About related beneficiaries: the Company fully respected and protected the legal rights and interests of its 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―CompanyLaw‖ and CSRC.□ Yes√ No
There existed no difference between corporate governance and the relevant regulations of―CompanyLaw‖ 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. 2011 Working|||Name of|
|||Report of the Board|||announcement:|
|||of Directors|||Foshan Huaxin|
|||2. Proposal on 2011|||Packaging Co.,|
|||Annual Working|||Ltd.-Announcement|
|||Report of the|||on Resolution of|
|||Supervisory|||2012 Shareholders'|
|||Committee|||General Meeting;|
|2012 annual||||||
|||3. Proposal on 2011|The above proposals||Number of|
|shareholders‘ general||||||
||15 May 2013|Annual Financial|have been all|16 May 2013|announcement:|
|meeting||||||
|||Statement|approved.||2013-022|
|||4. Proposal on Profit|||Newspaper and|
|||Distribution Plan for|||website on which the|
|||2011|||announcement was|
|||5. Proposal on 2011|||disclosed: Securities|
|||Annual Report and|||Times, HK Ta Kung|
|||Abstract|||Pao, Cninfo|
||||||(http:/www.cninfo.co|
|||6. Proposal on the||||
||||||m.cn)|
|||payment of audit||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||
|-|
|expenses of 2012|
|and proposal on the|
|further employment|
|of external audit|
|institutions of 2013|
|7. Proposal on|
|Conducting Routine|
|Related Transactions|
|Between Controlling|
|Subsidiaries and|
|Related Parties|
|8. Proposal on|
|Providing Guarantee|
|for Controlling|
|Subsidiaries|
|9. Proposal on the|
|signing on the|
|Financial Services|
|Agreement of the|
|Company and|
|Chengtong Financial|
|Co., Ltd. and the|
|execution of related|
|transaction of|
|financial business.|

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||||
||||||Name of|
||||||announcement:|
||||||Foshan Huaxin|
|||Proposal on the||||
||||||Packaging Co.,|
|||related transaction of||||
||||||Ltd.-Announcement|
|||purchasing the||||
||||||on Resolution of the|
|The 1st temporary||equity of Zhuhai||||
||||Have not been||1st Temporary|
|shareholders' general|24 Jun. 2013|S.E.Z. Hongta||25 Jun. 2013||
||||approved.||Shareholders'|
|meeting for 2013||Renheng Paper Co.,||||
||||||General Meeting for|
|||Ltd. owned by||||
||||||2013; Number of|
|||Dragon State||||
||||||announcement:|
|||International Ltd.||||
||||||2013-030|
||||||Newspaper and|
||||||website on which the|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
||||||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 2nd Temporary|
|||Proposal on the|||Shareholders'|
|||estimated amount of|||General Meeting in|
|The 2nd temporary||||||
|||the partial|||2013; Number of|
|shareholders' general|11 Nov. 2013||Have been approved.|12 Nov. 2013||
|||adjustment of|||announcement:|
|meeting for 2013||||||
|||routine related|||2013-070|
|||transaction|||Newspaper and|
||||||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|
|||Proposal on the|||3rd Temporary|
|||related transaction of|||Shareholders'|
|The 3rd temporary||||||
|||purchasing 20% of|||General Meeting for|
|shareholders' general|30 Dec. 2013||Have been approved.|31 Dec. 2013||
|||Chengtong Financial|||2013;Number of|
|meeting for 2013||||||
|||Co., Ltd. owned by|||announcement:|
|||China Paper Industry|||2013-079|
|||Investment Corp.|||Newspaper and|
||||||website on which the|
||||||announcement was|
||||||disclosed: Securities|
||||||Times, HK Ta Kung|
||||||Pao, Cninfo|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||
|-|
|(http:/www.cninfo.co|
|m.cn)|

III. Duty performance of independent directors during the reporting period
1. Particulars about attendance of independent directors in board meetings andshareholders‘ general meetings
||||||||
|-|-|-|-|-|-|-|
|Particulars about attendance of independent directors in board meetings|||||||
||Amount of|Amount of|Amount of|Amount of|Amount of|Whether being|
||meetings|meetings|meetings director|meetings director|meetings|absent from|
|Name of independent|||||||
||independent|independent|attended in the|authorized|independent|board meetings|
|director|||||||
||director need|director attended|means of|others‘|director was|two times in|
||attend this year|in person|communication|attendance|absent from|succession|
|Zhu Zhengfu|11|1|10|0|0|No|
|Zhao Wei|11|1|10|0|0|No|
|Yang Zhenyu|11|1|10|0|0|No|
|Amount of shareholders‘ general|||||||
|meetings that independent directors||4|||||
|attended|||||||

Explanations about being absent from board meetings two times in succession
2. Particulars about objections to relevant events of the Company raised by independent directors
Whether independent directors raised objections to relevant events of the Company
□ Yes√ No
During the reporting period, independent directors did not raise objections to relevant events of the Company.
3. Other information about duty performance of independent directors
Whether advices related to the Company from the independent directors were taken 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 2012,
duty performance of each committee affiliated to the board of directors:
1. The audit committee totally participated in the annual audit work for 2012 including formulation of plan on
annual audit, examination and verification of the first draft of annual audit report and establishment of the final
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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 2013 annual audit plan.
2. In 2013, the remuneration committee held one meeting in total on which deliberated and approved proposal on remuneration distribution of the management for 2013.
3. In 2013, the nomination committee held two meetings in total on which deliberated and approved proposal on recruitment of Yang Yinghui as Vice General Manager, CFO and secretary of Board of Directors of the Company. 4. Because the Company did not conduct strategic external extension, the strategy committee did not hold meetings in 2013.
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
There existed no horizontal competition in the reporting period.
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 Wang Jun, Yan Su, 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.
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Section IX. 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 fiveaspects‖ 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, 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 2013 is the second year to implement internal control standards to clarify internal control targets, which is to guarantee legal management, asset safety and complete financial report and related information, improve management efficiency and effectiveness and promote the development strategy. In 2012, the Company compiled Internal Control Manual and employed professional organization to audit the self-evaluation report. In 2013, inc combination with the revision of process systems, the Company revised some chapters of Internal Control Manual to ensure the Internal Control Manual comply with practical business control modes and requirements. (V) The Company compiled 2013 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, 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
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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|11 Mar. 2014|
|Control||
|Disclosure index of the||
|Self-appraisal Report on Internal|Internal control self assessment report of 2013, http//www.cninfo.com.cn|
|Control||

V.Auditor’s report on internal control
√ Applicable□ Non-applicable
|||
|-|-|
|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. 2013.||
|Disclosure date of the Auditor‘s||
||11 Mar. 2014|
|Report on Internal Control||
|Disclosure index of the Auditor‘s||
||Internal control audit report of 2013, http//www.cninfo.com.cn|
|Report on Internal Control||

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
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 AnnualReports‖. Up to now, there existed no major mistakes of annual report information
regulated in the above mechanism.
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Section X. Financial Statements
I. Audit report
|||
|-|-|
|Type of audit opinions|Standard unqualified opinions|
|Signing date of audit report|7 Mar. 2014|
|Name of audit institution|Shu Lun Pan CPA Co., Ltd. (LLP)|
|Name of CPA|Du Xiaoqiang, Jiang Gan|

Main body of audit report
To all shareholders of Foshan Huaxin Packaging Co., Ltd.:
We have audited the attached financial statements of Foshan Huaxin Packaging Co., Ltd. (hereinafter referred to as―theCompany‖) which comprise the balance sheet and the consolidated balance sheet as at 31 Dec. 2013, 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.
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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. 2013 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.
Unit: RMB Yuan
||||
|-|-|-|
|Assets|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|201,666,231.22|478,856,596.14|
|Settlement reserve|||
|Lending to bank and other financial|||
|institutions|||
|Transactional financial assets|||
|Notes receivable|362,998,502.84|480,257,032.09|
|Accounts receivable|867,805,009.95|971,593,562.06|
|Accounts paid in advance|207,761,823.07|179,421,134.87|
|Premiums receivable|||
|Reinsurance accounts receivable|||
|Provision of cession receivable|||
|Interests receivable|||
|Dividend receivable|||
|Other receivables|66,085,747.47|29,274,074.78|
|Purchase of resale financial assets|||
|inventories|780,502,680.31|1,018,382,145.92|
|Non-current assets due within a year|||
|Other current assets|||
|Total current assets|2,486,819,994.86|3,157,784,545.86|
|Non-current assets:|||
|Offering entrusted financing and|||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|advances|||
|Available for sale financial assets|4,862,620.84|3,400,433.40|
|Hold to maturity investment|||
|Long-term receivables|||
|Long-term equity investment|7,720,552.20|6,785,408.47|
|Investing property|16,380,804.64|9,942,981.44|
|Fixed assets|2,964,629,037.82|2,979,056,238.05|
|Constructions in progress|113,869,930.02|79,155,016.60|
|Engineering materials|||
|Disposal of fixed assets|||
|Productive biological assets|||
|Oil and gas assets|||
|Intangible assets|117,213,820.33|144,128,514.79|
|Development expenses|12,554,942.88||
|Goodwill|11,547,305.29|11,547,305.29|
|Long-term deferred expenses|929,287.66|777,863.44|
|Deferred income tax assets|36,738,164.07|36,503,345.40|
|Other non-current assets|||
|Total non-current assets|3,286,446,465.75|3,271,297,106.88|
|Total assets|5,773,266,460.61|6,429,081,652.74|
|Current liabilities:|||
|Short-term borrowing|746,518,360.93|1,212,158,914.28|
|Loans from the central bank|||
|Deposits from customers and|||
|interbank|||
|Loans from other banks|||
|Transactional financial liabilities|||
|Notes payable|7,208,770.58|21,440,149.18|
|Accounts payable|305,340,312.40|326,507,829.98|
|Account received in advance|41,644,176.60|28,987,800.81|
|Financial assets sold for|||
|repurchase|||
|Handling charges and commissions|||
|payable|||
|Employee‘s compensation payable|39,051,200.53|22,133,675.39|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Tax payable|20,193,255.40|89,539,824.80|
|Interest payable|28,765,634.67|25,040,571.55|
|Dividend payable|9,732,961.09|60,563,595.31|
|Other account payable|25,645,628.13|31,256,027.83|
|Reinsurance premiums payable|||
|Insurance contract reserves|||
|Payables for acting trading of|||
|securities|||
|Payables for acting underwriting of|||
|securities|||
|Non-current liabilities due within 1|||
|year|||
|Other current liabilities|||
|Total current liabilities|1,224,100,300.33|1,817,628,389.13|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|793,330,251.65|796,481,868.00|
|Long-term payables|461,462,266.00|529,400,000.00|
|Specific payables|||
|Estimated liabilities|7,146,269.00|2,967,023.46|
|Deferred income tax liabilities|3,324,001.75|5,449,332.25|
|Other non-current liabilities|8,810,000.00|2,636,000.00|
|Total non-current liabilities|1,274,072,788.40|1,336,934,223.71|
|Total liabilities|2,498,173,088.73|3,154,562,612.84|
|Owners‘ equity (or shareholders‘|||
|equity)|||
|Paid-up capital (or share capital)|505,425,000.00|505,425,000.00|
|Capital reserves|257,450,015.25|262,091,190.27|
|Less: Treasury stock|||
|Specific reserves|||
|Surplus reserves|179,240,134.80|170,337,106.09|
|Provisions for general risks|||
|Retained profits|787,821,828.63|768,206,504.60|
|Foreign exchange difference|||
|Total equity attributable to owners of|1,729,936,978.68|1,706,059,800.96|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|the Company|||
|Minority interests|1,545,156,393.20|1,568,459,238.94|
|Total owners‘ (or shareholders‘) equity|3,275,093,371.88|3,274,519,039.90|
|Total liabilities and owners‘ (or|||
||5,773,266,460.61|6,429,081,652.74|
|shareholders‘) equity|||

Legal representative: Tong Laiming Person-in-charge of the accounting work: Wang Qi Person-in-charge of accounting firm: Yang Yinghui
2. Balance sheet of the parent company
Name of enterprise: Foshan Huaxin Packaging Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Monetary funds|45,291,203.37|225,554,664.36|
|Transactional financial assets|||
|Notes receivable||130,108,953.66|
|Accounts receivable|51,991.20|8,630,545.13|
|Accounts paid in advance|73,114.00|73,114.00|
|Interest receivable|||
|Dividend receivable||30,918,655.65|
|Other accounts receivable|1,689,379,067.73|1,433,928,505.44|
|Inventories|||
|Non-current assets due within 1 year|||
|Other current assets|||
|Total current assets|1,734,795,376.30|1,829,214,438.24|
|Non-current assets:|||
|Available-for-sale financial assets|||
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investment|1,280,107,442.14|1,230,244,842.14|
|Investing property|||
|Fixed assets|526,396.87|532,270.08|
|Construction in progress|||
|Engineering materials|||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|614,177.89|32,582,437.02|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|||
|Other non-current assets|||
|Total of non-current assets|1,281,248,016.90|1,263,359,549.24|
|Total assets|3,016,043,393.20|3,092,573,987.48|
|Current liabilities:|||
|Short-term borrowings|120,000,000.00|95,000,000.00|
|Transactional financial liabilities|||
|Notes payable|||
|Accounts payable|51,991.19|8,630,545.13|
|Accounts received in advance|||
|Employee‘s compensation payable|25,095.87|31,895.87|
|Tax payable|13,836,851.52|60,147,180.98|
|Interest payable|21,997,861.17|19,446,500.04|
|Dividend payable|170,913.00|247,700.00|
|Other accounts payable|213,718.67|3,409,374.44|
|Non-current liabilities due within 1|||
|year|||
|Other current liabilities|||
|Total current liabilities|156,296,431.42|186,913,196.46|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|793,330,251.65|796,481,868.00|
|Long-term payables|418,750,000.00|500,000,000.00|
|Specific payables|||
|Estimated liabilities|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Total non-current liabilities|1,212,080,251.65|1,296,481,868.00|
|Total liabilities|1,368,376,683.07|1,483,395,064.46|
|Owners‘ equity (or shareholders‘|||
|equity)|||
|Paid-up capital (or share capital)|505,425,000.00|505,425,000.00|
|Capital reserves|250,531,482.00|250,531,482.00|
|Less: Treasury stock|||
|Specific reserves|||
|Surplus reserves|179,240,134.80|170,337,106.09|
|Provision for general risks|||
|Retained profits|712,470,093.33|682,885,334.93|
|Foreign exchange difference|||
|Total owners‘ (or shareholders‘) equity|1,647,666,710.13|1,609,178,923.02|
|Total liabilities and owners‘ (or|||
||3,016,043,393.20|3,092,573,987.48|
|shareholders‘) equity|||

Legal representative: Tong Laiming Person-in-charge of the accounting work: Wang Qi Person-in-charge of accounting firm: Yang Yinghui
3. Consolidated income statement
Name of enterprise: Foshan Huaxin Packaging Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount of current period|Amount of last term|
|I. Total operating revenues|4,006,109,812.66|3,646,702,240.82|
|Including: Sales income|4,006,109,812.66|3,646,702,240.82|
|Interest income|||
|Premium income|||
|Handling charge and|||
|commission income|||
|II. Total operating cost|3,940,105,765.06|3,718,564,723.11|
|Including: Cost of sales|3,437,981,452.16|3,148,676,463.87|
|Interest expenses|||
|Handling charge and|||
|commission expenses|||
|Surrenders|||
|Net claims paid|||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Net amount withdrawn for the|||
|insurance contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium|||
|Taxes and associate charges|22,782,408.90|14,713,424.54|
|Selling expenses|198,966,933.06|181,936,273.76|
|Administrative expenses|149,343,286.25|156,324,336.38|
|Financial expenses|113,521,836.70|189,968,915.07|
|Asset impairment loss|17,509,847.99|26,945,309.49|
|Add: Gain/(loss) from change in fair|||
|value (―-‖ means loss)|||
|Gain/(loss) from investment (―-‖|||
||657,513.24|331,056,847.85|
|means loss)|||
|Including: share of profits in associates|||
||530,727.73|50,798,130.21|
|and joint ventures|||
|Foreign exchange gains (―-‖ means|||
|loss)|||
|III. Business profit (―-‖ means loss)|66,661,560.84|259,194,365.56|
|Add: non-operating income|80,729,893.58|18,151,556.67|
|Less: non-operating expense|6,122,729.09|2,218,709.98|
|Including: loss from non-current asset|||
||352,476.01|333,965.61|
|disposal|||
|IV. Total profit (―-‖ means loss)|141,268,725.33|275,127,212.25|
|Less: Income tax expense|43,552,505.99|68,830,236.76|
|V. Net profit (―-‖ means loss)|97,716,219.34|206,296,975.49|
|Including: Net profit achieved by|||
|combined parties before the|||
|combinations|||
|Attributable to owners of the|||
||79,060,852.74|268,480,430.68|
|Company|||
|Minority shareholders‘ income|18,655,366.60|-62,183,455.19|
|VI. Earnings per share|--|--|
|(I) Basic earnings per share|0.16|0.53|
|(II) Diluted earnings per share|0.16|0.53|
|Ⅶ. Other comprehensive incomes|1,114,621.23|281,825.04|
|Ⅷ. Total comprehensive incomes|98,830,840.57|206,578,800.53|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Attributable to owners of the|||
||79,528,606.88|268,598,699.40|
|Company|||
|Attributable to minority|||
||19,302,233.69|-62,019,898.87|
|shareholders|||

Legal representative: Tong Laiming Person-in-charge of the accounting work: Wang Qi Person-in-charge of accounting firm: Yang Yinghui
4. Income statement of the Company
Name of enterprise: Foshan Huaxin Packaging Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount of current period|Amount of last term|
|I. Total sales|223,295,320.08|77,551,972.88|
|Less: cost of sales|153,119,961.48|7,376,534.29|
|Business taxes and surcharges|4,324,338.53|4,014,035.10|
|Distribution expenses|||
|Administrative expenses|12,613,176.11|10,680,043.24|
|Financial costs|-15,359,734.95|-1,583,790.00|
|Impairment loss|||
|Add: gain/(loss) from change in fair|||
|value (―-‖ means loss)|||
|Gain/(loss) from investment (―-‖ means|||
|||361,795,912.36|
|loss)|||
|Including: income form investment on|||
|||50,618,539.07|
|associates and joint ventures|||
|II. Business profit (―-‖ means loss)|68,597,578.91|418,861,062.61|
|Add: non-business income|50,221,175.80|501,863.32|
|Less: non-business expense||45,257.00|
|Including: loss from non-current asset|||
|||45,257.00|
|disposal|||
|III. Total profit (―-‖ means loss)|118,818,754.71|419,317,668.93|
|Less: income tax expense|29,788,467.60|55,841,079.94|
|IV. Net profit (―-‖ means loss)|89,030,287.11|363,476,588.99|
|V. Earnings per share|--|--|
|(I) Basic earnings per share|0.16|0.53|
|(II) Diluted earnings per share|0.16|0.53|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|VI. Other comprehensive income|||
|VII. Total comprehensive income|89,030,287.11|363,476,588.99|

 Legal representative: Tong Laiming Person-in-charge of the accounting work: Wang Qi Person-in-charge of accounting firm: Yang Yinghui
5. Consolidated cash flow statement
Name of enterprise: Foshan Huaxin Packaging Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount of current period|Amount of last period|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||3,016,408,289.23|2,998,422,049.07|
|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 tradable|||
|financial assets|||
|Cash received from interest, handling|||
|charges and commissions|||
|Net increase of intra-group|||
|borrowings|||
|Net increase of funds in repurchase|||
|business|||
|Tax refunds received||492,270.26|
|Other cash received relating to|||
||135,588,630.53|25,719,478.07|
|operating activities|||
|Subtotal of cash inflows from operating|||
||3,151,996,919.76|3,024,633,797.40|
|activities|||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Cash paid for goods and services|1,692,116,197.47|2,478,469,031.86|
|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|216,059,855.35|189,727,075.07|
|Various taxes paid|286,319,001.23|136,395,645.85|
|Other cash payment relating to|||
||136,250,542.10|200,877,448.36|
|operating activities|||
|Subtotal of cash outflows from|||
||2,330,745,596.15|3,005,469,201.14|
|operating activities|||
|Net cash flows from operating activities|821,251,323.61|19,164,596.26|
|II. Cash flows from investing activities:|||
|Cash received from withdrawal of|||
|||409,527,933.24|
|investments|||
|Cash received from return on|||
|||109,574,409.85|
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|51,491,678.51|469,743.11|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other business units|||
|Other cash received relating to|||
|||61,652,343.69|
|investing activities|||
|Subtotal of cash inflows from|||
||51,491,678.51|581,224,429.89|
|investing activities|||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long-term|152,265,166.93|114,704,398.22|
|assets|||
|Cash paid for investment|47,773,421.10||
|Net increase of pledged loans|||
|Net cash paid to acquire subsidiaries|||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|and other business units|||
|Other cash payments relating to|||
|||575,253.00|
|investing activities|||
|Subtotal of cash outflows from|||
||200,038,588.03|115,279,651.22|
|investing activities|||
|Net cash flows from investing activities|-148,546,909.52|465,944,778.67|
|III. Cash Flows from Financing|||
|Activities:|||
|Cash received from capital|||
|||1,597,264.01|
|contributions|||
|Including: Cash received from|||
|minority shareholder investments by||1,597,264.01|
|subsidiaries|||
|Cash received from borrowings|1,371,409,849.94|2,880,606,250.76|
|Cash received from issuance of|||
|||791,700,000.00|
|bonds|||
|Other cash received relating to|||
||774,000.00||
|financing activities|||
|Subtotal of cash inflows from financing|||
||1,372,183,849.94|3,673,903,514.77|
|activities|||
|Repayment of borrowings|1,987,677,754.42|3,719,636,653.94|
|Cash paid for interest expenses and|||
||235,015,239.56|325,208,272.54|
|distribution of dividends or profit|||
|Including: dividends or profit paid|||
||32,526,295.30|64,337,481.24|
|by subsidiaries to minority shareholders|||
|Other cash payments relating to|||
|||99,964,606.92|
|financing activities|||
|Sub-total of cash outflows from|||
||2,222,692,993.98|4,144,809,533.40|
|financing activities|||
|Net cash flows from financing activities|-850,509,144.04|-470,906,018.63|
|IV. Effect of foreign exchange rate|||
||-818,899.98|108,969.32|
|changes on cash and cash equivalents|||
|V. Net increase in cash and cash|||
||-178,623,629.93|14,312,325.62|
|equivalents|||
|Add: Opening balance of cash and|||
||378,872,416.49|364,560,090.87|
|cash equivalents|||
|VI. Closing balance of cash and cash|||
||200,248,786.56|378,872,416.49|
|equivalents|||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Legal representative: Tong Laiming Person-in-charge of the accounting work: Wang Qi Person-in-charge of accounting firm: Yang Yinghui
6. Cash flow statement of the Company
Name of enterprise: Foshan Huaxin Packaging Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount of current period|Amount of last period|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||257,904,067.52|70,175,358.60|
|commodities and rendering of service|||
|Tax refunds received|||
|Other cash received relating to|||
||219,409,759.36|52,953,155.24|
|operating activities|||
|Subtotal of cash inflows from operating|||
||477,313,826.88|123,128,513.84|
|activities|||
|Cash paid for goods and services|187,728,908.92||
|Cash paid to and for employees|5,323,409.60|5,447,142.38|
|Various taxes paid|82,059,900.06|736,454.10|
|Other cash payment relating to|||
||224,691,068.00|592,537,482.92|
|operating activities|||
|Subtotal of cash outflows from|||
||499,803,286.58|598,721,079.40|
|operating activities|||
|Net cash flows from operating activities|-22,489,459.70|-475,592,565.56|
|II. Cash flows from investing activities:|||
|Cash received from retraction of|||
|||409,527,933.24|
|investments|||
|Cash received from return on|||
||30,918,655.65|109,574,409.85|
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|40,680,000.00|233,714.00|
|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|||
||71,598,655.65|519,336,057.09|
|investing activities|||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Cash paid to acquire fixed assets,|||
|intangible assets and other long-term|390,972.00|14,109,395.00|
|assets|||
|Cash paid for investment|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|||
||47,664,526.71|14,109,395.00|
|investing activities|||
|Net cash flows from investing activities|23,934,128.94|505,226,662.09|
|III. Cash Flows from Financing|||
|Activities:|||
|Cash received from capital|||
|contributions|||
|Cash received from borrowings|120,000,000.00|450,000,000.00|
|Cash received from issuance of|||
|||791,700,000.00|
|bonds|||
|Other cash received relating to|||
|financing activities|||
|Subtotal of cash inflows from financing|||
||120,000,000.00|1,241,700,000.00|
|activities|||
|Repayment of borrowings|176,250,000.00|920,000,000.00|
|Cash paid for interest expenses and|||
||125,458,130.23|156,382,847.15|
|distribution of dividends or profit|||
|Other cash payments relating to|||
|financing activities|||
|Sub-total of cash outflows from|||
||301,708,130.23|1,076,382,847.15|
|financing activities|||
|Net cash flows from financing activities|-181,708,130.23|165,317,152.85|
|IV. Effect of foreign exchange rate|||
|||48,681.66|
|changes on cash and cash equivalents|||
|V. Net increase in cash and cash|||
||-180,263,460.99|194,999,931.04|
|equivalents|||
|Add: Opening balance of cash and|||
||225,554,664.36|30,554,733.32|
|cash equivalents|||
|VI. Closing balance of cash and cash|||
||45,291,203.37|225,554,664.36|
|equivalents|||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Legal representative: Tong Laiming Person-in-charge of the accounting work: Wang Qi Person-in-charge of accounting firm: Yang Yinghui
7. Consolidated statement of changes inowners’ equity
Name of enterprise: Foshan Huaxin Packaging Co., Ltd.
Amount of current period
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount of current period||||||||||
||Equity attributable to owners of the Company||||||||||
||Paid-up||||||||||
|||||||||||Total|
|Item|capital||Less:|||General|||Minority||
|||Capital||Specific|Surplus||Retaine|||owners‘|
||(or||treasury|||risk||Others|interests||
|||reserve||reserve|reserve||d profit|||equity|
||share||stock|||reserve|||||
||capital)||||||||||
|I. Balance at the end of the|505,425|262,091,|||170,337||768,206,||1,568,459|3,274,519,|
|previous year|,000.00|190.27|||,106.09||504.60||,238.94|039.90|
|Add: change of accounting|||||||||||
|policy|||||||||||
|Correction of errors in|||||||||||
|previous periods|||||||||||
|Other|||||||||||
|II. Balance at the beginning of|505,425|262,091,|||170,337||768,206,||1,568,459|3,274,519,|
|the year|,000.00|190.27|||,106.09||504.60||,238.94|039.90|
|III. Increase/ decrease of|||||||||||
|||-4,641,1|||8,903,0||19,615,3||-23,302,8||
|amount in the year (―-‖ means||||||||||574,331.98|
|||75.02|||28.71||24.03||45.74||
|decrease)|||||||||||
||||||||79,060,8||18,655,36|97,716,219|
|(I) Net profit|||||||||||
||||||||52.74||6.60|.34|
|(II) Other comprehensive||467,754.|||||||646,867.0|1,114,621.|
|incomes||15|||||||8|23|
|||467,754.|||||79,060,8||19,302,23||
|Subtotal of (I) and (II)||||||||||98,830,840|
|||15|||||52.74||3.68||
|||||||||||.57|
|(III) Capital paid in and|||||||||-44,293,||
|||-5,568,||||||||-49,862,60|
|reduced by owners|||||||||822.79||
|||777.21||||||||0.00|
|1. Capital paid in by|||||||||-44,293,||
|||-||||||||-44,293,82|
|owners|||||||||822.79||
|||||||||||2.79|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|2. Amounts of share-based|||||||
|payments recognized in||-|||||
|owners‘ equity|||||||
|3. Others||-5,568,|||||
|||777.21|||||
||||8,903,0|-59,445,||-50,542,50|
|(IV) Profit distribution|||||||
||||28.71|528.71||0.00|
|1. Appropriations to|||8,903,0|-8,903,0|||
|surplus reserves|||28.71|28.71|||
|2. Appropriations to|||||||
|general risk provisions|||||||
|3. Appropriations to||||-50,542,||-50,542,50|
|owners (or shareholders)||||500.00||0.00|
|4. Other|||||||
|(V) 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|||||||
|(Ⅵ) Specific reserve|||||||
|1. Withdrawn for the|||||||
|period|||||||
|2. Used in the period|||||||
|||459,848.|||1,688,743||
|(Ⅶ) Other||||||2,148,591.|
|||04|||.37||
|||||||41|
|||||||3,275,093,371.88|
||505,425||179,240|787,821,|1,545,156||
|IV. Closing balance||257,450,|||||
||,000.00||,134.80|828.63|,393.20||
|||015.25|||||

Last year
Unit: RMB Yuan
|||
|-|-|
|Item|Last year|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Equity attributable to owners of the Company||||||||||
||Paid-up||||||||||
|||||||||||Total|
||capital||Less:|||General|||Minority||
|||Capital||Specific|Surplus||Retaine|||owners‘|
||(or||treasury|||risk||Others|interests||
|||reserve||reserve|reserve||d profit|||equity|
||share||stock|||reserve|||||
||capital)||||||||||
|I. Balance at the end of the|505,425|261,972,|||133,989||637,158,||1,607,355|3,145,901,|
|previous year|,000.00|921.55|||,447.19||732.82||,276.44|378.00|
|Add: retrospective|||||||||||
|adjustments due to business|||||||||||
|combinations under the same|||||||||||
|control|||||||||||
|Add: change of accounting|||||||||||
|policy|||||||||||
|Correction of errors in|||||||||||
|previous periods|||||||||||
|Other|||||||||||
|II. Balance at the beginning of|505,425|261,972,|||133,989||637,158,||1,607,355|3,145,901,|
|the year|,000.00|921.55|||,447.19||732.82||,276.44|378.00|
|III. Increase/ decrease of|||||||||||
|||118,268.|||36,347,||131,047,||-38,896,0|128,617,66|
|amount in the year (―-‖ means|||||||||||
|||72|||658.90||771.78||37.50|1.90|
|decrease)|||||||||||
||||||||268,480,||-62,183,4|206,296,97|
|(I) Net profit|||||||||||
||||||||430.68||55.19|5.49|
|(II) Other comprehensive||118,268.|||||||163,556.3||
|||||||||||281,825.04|
|incomes||72|||||||2||
|||118,268.|||||268,480,||-62,019,8|206,578,80|
|Subtotal of (I) and (II)|||||||||||
|||72|||||430.68||98.87|0.53|
|(III) Capital paid in and|||||||||67,455,12|67,455,121|
|reduced by owners|||||||||1.56|.56|
|1. Capital paid in by|||||||||65,543,86|65,543,869|
|owners|||||||||9.93|.93|
|2. Amounts of share-based|||||||||||
|payments recognized in|||||||||||
|owners‘ equity|||||||||||
||||||||||1,911,251.|1,911,251.|
|3. Others|||||||||||
||||||||||63|63|
||||||36,347,||-137,43||-44,331,2|-145,416,2|
|(IV) Profit distribution|||||||||||
||||||658.90||2,658.90||60.19|60.19|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|1. Appropriations to|||36,347,|-36,347,|||
|surplus reserves|||658.90|658.90|||
|2. Appropriations to||||-101,08|-44,331,2|-145,416,2|
|general risk provisions||||5,000.00|60.19|60.19|
|3. Appropriations to|||||||
|owners (or shareholders)|||||||
|4. Other|||||||
|(V) 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|||||||
|(Ⅵ) Specific reserve|||||||
|1. Withdrawn for the|||||||
|period|||||||
|2. Used in the period|||||||
|(Ⅶ) Other|||||||
||505,425|262,091,|170,337|768,206,|1,568,459|3,274,519,|
|IV. Closing balance|||||||
||,000.00|190.27|,106.09|504.60|,238.94|039.90|

 Legal representative: Tong Laiming Person-in-charge of the accounting work: Wang Qi Person-in-charge of accounting firm: Yang Yinghui
8. Statement of changes inowners’ equity of the Company
Name of enterprise: Foshan Huaxin Packaging Co., Ltd.
Amount of current period
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount of current periodPaid-upLess: General Totalcapital (or Capital Specific Surplus Retainedtreasury risk owners‘share reserve reserve reserve profitstock reserve equitycapital)||||||||
|||||||Generalriskreserve|||
||||Less:|||||Total|
|Item|capital (or|Capital||Specific|Surplus||Retained||
||||treasury|||||owners‘|
||sharecapital)|reserve||reserve|reserve||profit||
||||stock|||||equity|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
|I. Balance at the end of the|505,425,00|250,531,48|170,337,10|682,885,33|1,609,178,|
|previous year|0.00|2.00|6.09|4.93|923.02|
|Add: change of accounting||||||
|policy||||||
|Correction of errors in||||||
|previous periods||||||
|Other||||||
|II. Balance at the beginning of|505,425,00|250,531,48|170,337,10|682,885,33|1,609,178,|
|the year|0.00|2.00|6.09|4.93|923.02|
|III. Increase/ decrease of amount|||8,903,028.|29,584,758|38,487,787|
|in the year (―-‖ means decrease)|||71|.40|.11|
|||||89,030,287|89,030,287|
|(I) Net profit||||||
|||||.11|.11|
|(II) Other comprehensive||||||
|incomes||||||
|||||89,030,287|89,030,287|
|Subtotal of (I) and (II)||||||
|||||.11|.11|
|(III) Capital paid in and||||||
|reduced by owners||||||
|1. Capital paid in by owners||||||
|2. Amounts of share-based||||||
|payments recognized in owners‘||||||
|equity||||||
|3. Others||||||
||||8,903,028.|-59,445,52|-50,542,50|
|(IV) Profit distribution||||||
||||71|8.71|0.00|
|1. Appropriations to surplus|||8,903,028.|-8,903,028.||
|reserves|||71|71||
|2. Appropriations to general||||||
|risk provisions||||||
|3. Appropriations to owners||||-50,542,50|-50,542,50|
|(or shareholders)||||0.00|0.00|
|4. Other||||||
|(V) Internal carry-forward of||||||
|owners‘ equity||||||
|1. New increase of capital||||||
|(or share capital) from capital||||||
|public reserves||||||

2013 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||||||
|(Ⅵ) Specific reserve||||||
|1. Withdrawn for the period||||||
|2. Used in the period||||||
|(Ⅶ) Other||||||
||505,425,00|250,531,48|179,240,13|712,470,09|1,647,666,710.13|
|IV. Closing balance||||||
||0.00|2.00|4.80|3.33||

 Last year
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Last year||||||||
||Paid-up||||||||
||||Less:|||General||Total|
|Item|capital (or|Capital||Specific|Surplus||Retained||
||||treasury|||risk||owners‘|
||share|reserve||reserve|reserve||profit||
||||stock|||reserve||equity|
||capital)||||||||
|I. Balance at the end of the|505,425,00|250,531,48|||133,989,44||456,841,40|1,346,787,|
|previous year|0.00|2.00|||7.19||4.84|334.03|
|Add: change of accounting|||||||||
|policy|||||||||
|Correction of errors in|||||||||
|previous periods|||||||||
|Other|||||||||
|II. Balance at the beginning of|505,425,00|250,531,48|||133,989,44||456,841,40|1,346,787,|
|the year|0.00|2.00|||7.19||4.84|334.03|
|III. Increase/ decrease of amount|||||36,347,658||226,043,93|262,391,58|
|in the year (―-‖ means decrease)|||||.90||0.09|8.99|
||||||||363,476,58|363,476,58|
|(I) Net profit|||||||||
||||||||8.99|8.99|
|(II) Other comprehensive|||||||||
|incomes|||||||||
||||||||363,476,58|363,476,58|
|Subtotal of (I) and (II)|||||||||
||||||||8.99|8.99|
|(III) Capital paid in and|||||||||
|reduced by owners|||||||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
|1. Capital paid in by owners||||||
|2. Amounts of share-based||||||
|payments recognized in owners‘||||||
|equity||||||
|3. Others||||||
||||36,347,658|-137,432,6|-101,085,0|
|(IV) Profit distribution||||||
||||.90|58.90|00.00|
|1. Appropriations to surplus|||36,347,658|-36,347,65||
|reserves|||.90|8.90||
|2. Appropriations to general||||||
|risk provisions||||||
|3. Appropriations to owners||||-101,085,0|-101,085,0|
|(or shareholders)||||00.00|00.00|
|4. Other||||||
|(V) 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||||||
|(Ⅵ) Specific reserve||||||
|1. Withdrawn for the period||||||
|2. Used in the period||||||
|(Ⅶ) Other||||||
||505,425,00|250,531,48|170,337,10|682,885,33|1,609,178,|
|IV. Closing balance||||||
||0.00|2.00|6.09|4.93|923.02|

 Legal representative: Tong Laiming Person-in-charge of the accounting work: Wang Qi Person-in-charge of accounting firm: Yang Yinghui
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,
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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 China Paper Corporation and the Ultimate controller of the Company is China Chengtong Holding Group Co., Ltd.
IV. Main accounting policies, accounting estimates and corrections of prior accounting errors 1. Preparation basis of financial statement
With the going-concern assumption as the basis and based on transactions and other events that actually occurred, the Company prepared financial statements in accordance with the Basic Standard and 38 specific standards of Accounting Standards for Business Enterprises issued by Ministry of Finance of the PRC on 15 February 2006, Application Guidance of Accounting Standard for Business Enterprises, Interpretation of Accounting Standards for Business Enterprises and other regulations issued thereafter (hereinafter referred to as―the Accounting Standards for BusinessEnterprises‖,―China AccountingStandards‖ or―CAS‖), Rules for Preparation Convention of Disclosure of Public Offering Companies No.15– General Regulations for Financial Reporting (revised in 2010) by China Securities Regulatory Commission.
2. 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.
3. Fiscal period
The fiscal year of the Company is a solar calendar year, which is from January 1 to December 31.
4. Standard currency of accounts
The Company adopts Renminbi as a standard currency of accounts.
5. Accounting process of business combinations under the same control and not under the same control
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. (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 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 the
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.acquirer‘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. Preparation methods for consolidated financial statements
(1) Preparation methods for consolidated financial statements
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.
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.
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.
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. As for a business combination not under the same control concluded through more than one transaction, 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 before the acquisition date involves other comprehensive incomes, the relevant other comprehensive incomes are restated as investment gains for the period which the acquisition date belongs to.
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,
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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.
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 in the subsidiary calculated according to the newly increased shareholding ratio, or any difference 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. (2) As for the event about purchasing and then selling (or selling and then purchasing) equities of the same subsidiary, the Company shall disclose relevant accounting treatment methods.
7. 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―cashequivalents‖ 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.
8. Business of foreign currencies and the transaction of foreign currency 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 capital reserve.
(2) Translation for foreign currency financial statements
The assets and liabilities items in the balance sheets shall be translated as a spot exchange rate on the balance sheet date. Among theowner‘s equity items, except the one as―retainedprofits‖, others shall be translated at the spot exchange rate at the time when they are incurred. The income and expense items in the profit statements shall be translated at the spot exchange rate of the transaction date. The balance arisen from the translation of foreign currency financial statement in the compliance with the aforesaid methods shall be presented separately under theowner‘s equity item of 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.
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 9. 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.
A. 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 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.
B. 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.
C. 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.
D. Available-for-sale financial assets
When available-for-sale financial assets are acquired, its initial amount shall be recognized at the fair value
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. (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.
E. 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 amounts of the following 2 items shall recorded in the profits and losses of the current period:
A. The carrying amount of the transferred financial asset;
B. 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:
a. The carrying amount of the portion whose recognition has stopped;
b. 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.
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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 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. A. Provision for impairment of available-for-sale financial assets
If the fair value of financial assets available for sale has greatly dropped at the end of reporting period, or after considering of all the relevant factors and expecting decrease trend is non-temporary, the impairment shall be recognized, accumulated losses due to decreases in fair value previously recognized directly in capital reserve are reversed and charged to impairment loss.
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 current period.
The impairment-related losses incurred to a sellable equity instrument investment shall not be reversed through profits and losses.
B. 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.
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Various recognition standards of various kinds of available for sale financial assets impairment
(7) As for event about reclassifying the undue held-to-maturity investment into available-for-sale financial assets, the Company shall state the basis of changes in holding purpose or ability
Naught
10. 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 debts of|An account receivable exceeds 10 million, or an other|
|the individually significant accounts receivable|account 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|
|Method of individual provision for bad debts of the individually|withdrawn as the bad debt provision and recorded into|
|significant accounts receivable|current gains/losses. Where an 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 for which bad debt provisions are made on the group basis
||||
|-|-|-|
||Withdrawal method of bad||
|Name of group|debt provision on the group|Recognition basis of group|
||basis||
|Group 1—Entities consolidated is|||
|considered as an account|Other method|The accounts receivable consolidated have similar credit risk.|
|receivable group.|||
|Group 2—Several account|||
|||Except for the accounts receivable consolidated, accounts|
|receivable groups are divided|Aging analysis method||
|||receivable with the same age have similar credit risk.|
|according to account ages.|||

In the groups, adopting aging analysis method to withdraw bad debt provision:
√ Applicable□ Inapplicable
||||
|-|-|-|
||Withdrawal proportion for accounts|Withdrawal proportion for other accounts receivable|
|Age|||
||receivable (%)|(%)|
|1-3 months|||
|4-12 months|5%|5%|
|1－2 years|10%|10%|
|2－3 years|20%|20%|
|Over 3 years|50%|50%|

In the groups, those adopting balance percentage method to withdraw bad debt provision:
□ Applicable√ Inapplicable
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. In the groups, those adopting other methods to withdraw bad debt provision:
□ Applicable√ Inapplicable
(3) Account receivables with an insignificant single amount but for which a single bad debt provision is withdrawn
|||
|-|-|
||There is objective evidence proving that the account receivable may have been|
|Reason of individually withdrawing bad debt|impaired. For instance, the debtor is cancelled, bankrupt or dead and the account|
|provision:|receivable still cannot be recovered or the generated cash flow is seriously|
||inadequate after 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 be separated from the relevant group and an|
|Withdrawal method for bad debt provision:||
||independent impairment test shall be conducted on the account receivable so as to|
||recognize the impairment loss.|

(4) Other explanation
As for the other accounts receivable such as notes receivable, payment in advance, interests receivable, long-term accounts receivable, should confirm the impairment loss and withdraw the bad debts provision according to balance from which the portion the present value of future cash flow lower than its book value.
11. 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
Pricing method: Weighted average method
(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
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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.
(4) Inventory system for inventories:
Inventory system: Perpetual inventory system
(5) Amortization method of the low-value consumption goods and packing articles
Low-value consumption goods
Amortization method: one-off amortization method
Packaging articles
Amortization method: one-off amortization method
12. Long-term equity investment
(1) Recognition of initial investment cost
A. Long-term equity investment under business combination
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, it shall, on the date of merger, regard the share of the book value of the owner's equity of the merged enterprise as the initial cost of the long-term equity investment. The difference between the initial cost of the long-term equity investment and the consideration paid by the Company shall offset against the capital reserve. If the capital reserve is insufficient to dilute, 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.
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, and the combination costs shall be the fair values, on the acquisition date, of the assets paid, the liabilities incurred or assumed and the equity securities issued by the acquirer in exchange for the control on the acquiree and all relevant direct costs incurred to the Company for the business combination, including intermediary fees paid for auditing, legal, evaluating and consulting services for the business combination, as well as other relevant administrative expenses (the expense on trading equity or debt securities issued as the combination consideration and recorded into current gains/losses when incurred, the initially recognized amount recorded into equity or debt securities). For a business combination realized by two or more transactions of exchange, the initial investment cost shall be the summation of the book value of the equity investment in the acquiree held by the acquirer before the acquisition date and the cost of the investment newly increased on the acquisition date. The Company considers the contingent consideration agreed in the combination agreement as part of the combination consideration and records it into the combination cost according to its fair value on the acquisition date.
B. Long-term equity investment gained by other methods
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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.
(2) Subsequent measurement and gain/loss recognition
A. Subsequent measurement
The long-term equity investment that the Company carries out to its subsidiary companies shall be measured based on cost method, and adjust based on the equity method when preparing the consolidated financial statements.
The long-term equity investment that does not do joint control or does not have significant influences on the invested entity, and entity, and has no offer in the active market and its fair value cannot be reliably measured shall be measured at the cost method.
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. Disposal for any change is made to the owner's equity other than the net profits and losses of the invested entity: in case the shareholding proportion remained unchanged, the Company shall, in accordance with the shareholding proportion, calculate the proportion it shall enjoy or undertake, and adjust book value of long-term equity investment, and increase or decrease capital reserve (other capital reserve) simultaneously.
B. Recognition of profits and losses
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Under the cost method, the Company shall recognize investment income in the light of the attributable share of the profits or cash dividends declared to distribute by the invested entity except for money paid actually or cash dividends or profit that have been declared but not yet distributed included in consideration when obtaining investment.
Under the equity method, the recognition of profits and losses shall be carried out based on the net book profit of the invested entity and taking the following into account: If the accounting policies and accounting periods adopted by the invested entity are different from those adopted by the Company, an adjustment shall be made to the financial statements of the invested entity in accordance with the accounting policies and accounting periods of the Company; the influence on the investedparty‘s net profit from the depreciation or amortization amount withdrawn based on the fair values of the fixed and intangible assets of the invested party when the investment is obtained, from the relevant asset impairment provision, etc.; the net profit or net loss of the invested party that is attributable to the Company recognized after the unrealized intra-Group transactions between the Company and its associates and joint ventures are offset and other matters are properly adjusted.
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 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. If the invested entity realizes any profits later, the Company shall, after the amount of its attributable share of the un-recognized losses, treat based on reverse order, and write down the book balance of projected liabilities recognized, resume the book value of other long-term rights and interests which substantially form the net investment made to the invested entity and long-term equity investment, and recognize investment income simultaneously.
When holding the investment, the Company shall measure on the basis of the net profit and other equity changes in the consolidated financial statements if invested parties can provide consolidated financial statements.
(3) Recognition basis of joint control and significant influences of invested enterprises
The term "joint control" means control over an economic activity as specified by contract, which exists only when the investing parties that need to share the power of control in important financial and operating decision-making agree unanimously. When the Company and other parties have joint control over an invested party, the invested party is considered a joint venture.
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.
(4) Testing method of impairment and withdrawal method of provision for impairment
Under the significant influence, for the long-term equity investment that there is no offer in the active market and
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. of which the fair value cannot be reliably measured, of which impairment loss shall be confirmed at the balance between the book value and the present value recognized as the discount rate of market income rate to the future cash flow of the assets.
Other long-term equity investment with the sign of impairment except for the goodwill formed by merger of enterprises, where the recoverable amount of single item long-term equity investment is lower than its carrying value, the difference shall be recognized as impairment loss.
Once any loss of impairment of the long-term equity investment is recognized, it shall not be switched back in the future accounting periods.
13. Investment real estates
The term "investment real estates" refers to the real estates held for generating rent and/or capital appreciation, including (1) the right to use any land which has already been rented; (2) The right to use any land which is held and prepared for transfer after appreciation; and (3) Rented buildings (including buildings which have already been rented after the self-construction or self-development is completed and buildings that are being built or developed and will be used for renting).
The Company shall make a measurement to the investment real estate through the cost pattern. 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.
Where there is sign of impairment, the Company shall estimate the recoverable amount of the investment real estates. Where the recoverable amount of single item investment real estates is lower than its carrying value, of which the balance shall be recognized as impairment loss.
Once any loss of impairment of the investment real estates is recognized, it shall not be switched back in the future accounting periods.
14. 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:
A. The economic benefits pertinent to the fixed asset are likely to flow into the enterprise; and
B. The cost of the fixed asset can be measured reliably.
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. (2) Recognition basis and pricing method of fixed assets by finance lease
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:
A. The ownership of the leased asset is transferred to the Company after the term of lease expires;
B. 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.
C. The lease term covers the major part of the use life of the leased asset; and
D. 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.
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) Depreciation methods of fixed assets
The Company shall withdraw the depreciation of fixed assets by adopting the straight-line method, and recognized depreciation rate in the light of the category of fixed assets, expected useful life, and expected net salvage value. Where parts of a fixed asset have different useful lives or generate economic benefits for the Company in different ways, different depreciation rates and methods shall be adopted to make separate depreciations.
If it is reasonable to be certain that the Company will obtain the ownership of the leased asset when the lease term expires, the leased asset shall be fully depreciated over its useful life. If it is not reasonable to be certain that the Company 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 usefullife.。
|||||
|-|-|-|-|
|Category|Depreciation life (Y)|Rate of residual value (%)|Annual deprecation rate (%)|
|Housing and building|30-40|5%|2.375-3.17|
|Machinery equipments|10-25|5%|3.80-9.50|
|Transportation vehicle|5|5%|19.00|
|Other|5-10|5%|9.50-19.00|

(4) Testing method of impairment and withdrawal method of provision for impairment on fixed assets The Company shall, at the end of every reporting period, make a judgment on whether there is any sign of possible fixed assets impairment.
Where there is sign of impairment, the Company shall estimate the recoverable amount of the fixed assets. The recoverable amount shall be determined in light of the higher one of the net amount of the fair value of the fixed
minus the disposal expenses and the current value of the expected future cash flow of the fixed assets.
Where the recoverable amount of the fixed assets is lower than its carrying value, its carrying value shall be
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. recorded down to the recoverable amount, and the reduced amount shall be recognized as impairment loss on fixed assets and recorded as the profit or loss for the current period. Simultaneously, a provision for the impairment of the fixed assets shall be made.
After the loss of fixed asset impairment has been recognized, the depreciation of the impaired fixed asset shall be adjusted accordingly in the future periods so as to amortize the post-adjustment carrying value of the fixed asset systematically (deducting the expected net residual value) within the residual service life of the fixed asset. Once any loss of impairment of the fixed assets is recognized, it shall not be switched back in the future accounting periods.
Where there is any evidence indicating a possible impairment of fixed assets, the Company shall, on the basis of single item assets, estimate the recoverable amount. Where it is difficult to do so, it shall determine the recoverable amount of the group assets on the basis of the asset group to which the single fixed asset belongs. (5) Other explanations
15. 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 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
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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.
16. 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 forcapitalization‖ 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: A. 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;
B. The borrowing costs has already incurred; and
C. 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
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. for use or sale during the continuing construction of other parts, but it can not be used or sold until the asset is 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.
17. Biological assets
(1) Pricing method of intangible assets
A. 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 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
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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.
B. 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.
||||
|-|-|-|
|Items|Estimated useful life|Basis|

(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 service life.
After check, useful life of the said intangible assets remained in uncertainty.
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. (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.
(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:
A. It is feasible technically to finish intangible assets for use or sale;
B. It is intended to finish and use or sell the intangible assets;
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. C. 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;
D. 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
E. 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.
18. 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.
19. Assets transfer with a repurchase agreement
A repurchase agreement for selling product or transferring assets shall be signed between the Company and the purchaser when the Company sells its products and transfers other assets, thereafter, the Company shall judge that sale of product meets the recognition conditions of revenue or not in accordance with the clauses of the agreement. If after-sales repurchase belongs to financing transaction, the Company fails to recognize sales revenue when delivering products and assets. The positive balance between the repurchase price and sales price shall be withdrawn interests on schedule during the repurchase period, and included into financial expense.
20. 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.
(1) Recognition standard of estimated liabilities
The obligation pertinent to a Contingencies shall be recognized as an estimated liabilities when the following conditions are satisfied simultaneously: A. that obligation is a current obligation of the company; B. It is likely to cause any economic benefit to flow out of the Company as a result of performance of the obligation; and C. 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
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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.
21. Revenue
(1) Criteria for recognition time of revenue from sale of goods
A. 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 reliable way.
B. 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:
A. 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
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. B. 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 of revenue from providing labor service
(4) 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:
A. 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; or
B. 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.
22. Government grants
(1) Types
A government subsidy means the monetary or non-monetary assets obtained free by the Group from the
government, not including the invested capital as the owner.
Government subsidies consist of the government subsidies pertinent to assets and government subsidies pertinent to income. The Company would use the revenues to purchase or form long-term assets for governmental subsidies; other governmental subsidies would be defined as interest-related governmental subsidies. If the government documents do not clarify subsidy object, it should divide conditional grants into interest-related governmental subsidies and asset-related governmental subsidies by following methods: (1) asset-related amount paid and calculated amount paid should be divided according to relative proportions by the budget of specific projects
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. determined by government documents; the proportions should be reviewed in balance sheets and verified if necessary; (2) the application in government documents is only for general statement. Any subsidies without specific projects should be regarded as interest-related governmental subsidies.
Monetary assets governmental subsidies should be calculated according to received or receivable amount. Non-monetary assets governmental subsidies should be calculated according to fair value measurement. If fair value is not received, it should be calculated by nominal amount. Governmental subsidies calculated by nominal amount should be included in current profits and losses directly.
When the Company receives governmental subsidies, it should be calculated and measured according to the amount of paid-up. For the financial supporting funds are expected to be received according to financial supporting policies with concrete evidence, it should be calculated according to paid-up amount. Governmental subsidies calculated by paid-up amount shall satisfy following requirements: (1) Subsidy receivable should be confirmed by government departments or calculated according to management methods of financial funds and important uncertainty exists when calculating the amount. (2) The criteria should be published by local financial department according to Regulations on Open Government Information for open financial supporting projects and financial fund management methods. The management methods should be inclusive (all qualified enterprises would apply), but for specific enterprises. (3) Appropriation time has been determined in related conditional grants documents and appropriation is guaranteed to ensure all grants been received within time limit. (4) Details of subsidies shall satisfy other requirements (if any).
(2) Accounting policy
Asset-related governmental subsidies determined as deferred income should be calculated into current profits and losses within the asset service life. Those subsidies used for compensating the related future expenses or losses of the Company shall be recognized as deferred income and shall included in the non-operating income during the period when the relevant expenses are recognized; those subsidies used for compensating the related expenses or losses incurred to the Company shall be directly recognized as the current profits and losses into non-operating income.
Any confirmed governmental subsidies should be returned or with deferred income balance, excess amount of related deferred income balance should be calculated into current profits and losses; non-related deferred profits should be calculated into current profits and losses directly.
23. Deferred income tax assets and liabilities
(1) Recognition basis of deferred income tax assets
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.
(2) Recognition basis of deferred income tax liabilities
As for deductible temporary difference of tax payable, is shall written in deferred income tax liability but for specialparticulars。
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 24. Operating lease and financial lease
(1) Accounting treatments of operating lease
A. 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.
B. 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.
(3) Accounting treatment of the sold but leased-back assets
25. Correction of previous accounting errors
Was any accounting error made in previous periods discovered in the report period?
□ Yes√No
During the report period, there is no previous accounting errors need to be corrected.
(1) Retrospective restatement method
Was any previous accounting error adopting retrospective restatement method discovered in the report period?□ Yes√No
(2) Prospective application method
Was any previous accounting error adopting prospective application method discovered in the report period?□ Yes√No
V. Taxation
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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 measured by regulations of||
|||17%|
|VAT|||
||tax law, while 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%|

The income tax rates adopted by each subsidiary and branch factory
2. Tax preference and official documents
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%.
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, the sub-subsidiary of the Company Zhuhai Jinji Chemicals Co., Ltd. has passed the declaration, review and defense programs etc, was proposed to recognized as the Second Name List of Hi-tech Enterprise in Guangdong Province for Y2013 and was public. As of the report, the public date is full and the new technology enterprise certificate has not been issued. So the sub-subsidiary can enjoy the relevant tax preference for Hi-tech enterprise, whose CIT rate was15%.
3. Other
Ⅵ. Business combination and consolidated financial statements
1. Subsidiaries
(1) Subsidiaries obtained by establishment and investment
Unit: RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Subsidia|Type|Register|Busines|Register|Busines|Actual|Other|The|The|Include|Minorit|Deducti|Balance|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|ries||ed place|s nature|ed|s scope|amount|essential|proporti|proporti|d in|y|ble|of|
|||||capital||of|investm|on of|on of|consolid|interest|minority|parent|
|||||(Unit||investm|ent|holding|voting|ated||interests|compan|
|||||Ten||ents at||shares|rights|stateme|||y‘s|
|||||thousan||the||（%）|（%）|nt|||equity|
|||||d yuan)||period-e|||||||after|
|||||||nd (Unit|||||||deductin|
|||||||Ten|||||||g the|
|||||||thousan|||||||differen|
|||||||d yuan|||||||ce that|
||||||||||||||loss of|
||||||||||||||minority|
||||||||||||||interests|
||||||||||||||exceed|
||||||||||||||equity|
||||||||||||||obtained|
||||||||||||||by|
||||||||||||||minority|
||||||||||||||sharehol|
||||||||||||||ders|
||Subsidia|Foshan|||Purchas|||||||||
||ry of|||||||||||||
|Foshan|||||e and|||||||||
||holding|||||||||||||
|Huazhi|subsidia||||sale of|||||||||
||ry|||||||||||||
|Waste|||||waste|||||||||
||||Service|||||||||||
|Paper||||500|paper|500.00||100%|100%|Yes||||
||||industry|||||||||||
|Recycli|||||and|||||||||
|ng Co.,|||||waste|||||||||
|Ltd.|||||newspa|||||||||
||||||per|||||||||
|||Foshan|||Printing|||||||||
||||||other|||||||||
|Pearl||||||||||||||
||||||printed|||||||||
|River||||||||||||||
||||||material|||||||||
|Color||||||||||||||
||Subsidia||||s,|||||||||
|Printing||||||||||||||
||ry of||||design|||||||||
|Co.,|||Manufa|||||||||||
||holding|||150|&|150.00||100%|100%|Yes||||
|Ltd. of|||cturing|||||||||||
||subsidia||||producti|||||||||
|Chanch||||||||||||||
||ry||||on and|||||||||
|eng||||||||||||||
||||||release|||||||||
|District,||||||||||||||
||||||of|||||||||
|Foshan||||||||||||||
||||||advertisi|||||||||
||||||ng|||||||||
|||Foshan|Manufa||Manufa|||||||||
|Foshan|Holding|||30,000||22,500.||75%|75%|Yes|4,842.8|||
||||||cturing|||||||||
||||cturing|||||||||||
||||||and|||||||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Chengto|subsidia||||selling|00||||0|
||||||of||||||
|ng|ry||||||||||
||||||high-cla||||||
|Paper|||||ss paper||||||
||||||and||||||
|Co., Ltd|||||||||||
||||||paper||||||
||||||board;||||||
||||||export||||||
||||||&||||||
||||||import||||||
|Kunsha||Suzhou|||||||||
||||||Sale||||||
|n Focai|||||||||||
||||||packagi||||||
|Packagi|Holding||||||||||
||||Manufa||ng &||||||
|ng &|subsidia|||500||500.00|100%|100%|Yes||
||||cturing||printing||||||
|Printing|ry||||||||||
||||||material||||||
|Co.,|||||||||||
||||||s||||||
|Ltd.|||||||||||

Other notes to subsidiaries obtained by establishment and investment:
(2) Subsidiaries obtained by business combination under the same control
Unit: RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||Balance|
||||||||||||||of|
||||||||||||||parent|
||||||||||||||compan|
||||||||||||||y‘s|
|||||||Actual|||||||equity|
|||||||amount|||||||after|
|||||Register||of|||||||deductin|
|||||||||The|The|Include||||
|||||ed||investm|||||||g the|
||||||||Other|proporti|proporti|d in||Deducti||
|||||capital||ents at|||||Minorit||differen|
|Subsidia||Register|Busines||Busines||essential|on of|on of|consolid||ble||
||Type|||(Unit||the|||||y||ce that|
|ries||ed place|s nature||s scope||investm|holding|voting|ated||minority||
|||||Ten||period-e|||||interest||loss of|
||||||||ent|shares|rights|stateme||interests||
|||||thousan||nd (Unit|||||||minority|
|||||||||（%）|（%）|nt||||
|||||d yuan)||Ten|||||||interests|
|||||||thousan|||||||exceed|
|||||||d yuan)|||||||equity|
||||||||||||||obtained|
||||||||||||||by|
||||||||||||||minority|
||||||||||||||sharehol|
||||||||||||||ders|
|||Foshan|||Process|||||||||
|Huaxin|Holding|||||||||||||
|(Foshan|||Manufa|USD1,2|and|12,253.||||||||
|) Color|subsidia|||||||100%|100%|Yes||||
||||cturing|80|printing|67||||||||
|Printing|ry|||||||||||||
|Co., Ltd|||||of|||||||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||packagi||||
||||||ng or||||
||||||decorati||||
||||||ng||||
||||||printing||||
||||||products||||
||||||,||||
||||||domesti||||
||||||c and||||
||||||export||||
||||||sales of||||
||||||products||||
|||Zhuhai|||Manufa||||
||||||cturing||||
||||||and||||
||Subsidia||||||||
||||||selling||||
|Zhuhai|ry of||||||||
||||Manufa||of|106,897|||
|Huafeng|holding|||98,456|||100%|Yes|
|Paper|||cturing||high-cla|.15|||
|Co., Ltd|subsidia||||||||
||||||ss paper||||
||ry||||||||
||||||and||||
||||||paper||||
||||||board||||

Other notes to subsidiaries obtained by business combination under the same control:
Note: According to forth meeting of the fifth session of the board of directors of 2013, on June 28, 2013, the meeting reviewed and approved Proposal of related transaction about purchase the equity of Huaxin (Foshan) Color Printing Co., Ltd held by Dragon State International Limited,and proposed the Compant to purchase25% equity of Huaxin (Foshan) Color Printing Co., Ltd held by Dragon State International Limited, the base date of equity agreement to transfer was on June 30, 2013, Transfer price was refer to the assessment of a net worth of RMB 199.45 03 million of Huaxin (Foshan) Color Printing Co., Ltd.. Both party agreed that the price of the25% equity was RMB 49.8626 million. The Company had finished the transfer on Sep. 2013 and paid the purchase fee of RMB 49.8626 million. After the transfer, Huaxin (Foshan) Color Printing Co., Ltd became wholly-owned subsidiary of the Company.
(3) Subsidiaries obtained by business combination not under the same control
Unit: RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Actual||The|The|Include|||Balance|
||||||||Other|||||Deducti||
|||||Register||amount||proporti|proporti|d in|Minorit||of|
|Subsidia||Register|Busines||Busines||essential|||||ble||
||Type|||ed||of||on of|on of|consolid|y||parent|
|ries||ed place|s nature||s scope||investm|||||minority||
|||||capital||investm||holding|voting|ated|interest||compan|
||||||||ent|||||interests||
|||||||ents at||shares|rights|stateme|||y‘s|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||the|（%）|（%）|nt||equity|
|||||||period-e|||||after|
|||||||nd|||||deductin|
||||||||||||g the|
||||||||||||differen|
||||||||||||ce that|
||||||||||||loss of|
||||||||||||minority|
||||||||||||interests|
||||||||||||exceed|
||||||||||||equity|
||||||||||||obtained|
||||||||||||by|
||||||||||||minority|
||||||||||||sharehol|
||||||||||||ders|
|||Zhuhai|||Manufa|||||||
||||||cturing|||||||
|Zhuhai||||||||||||
||||||and|||||||
|S.E.Z.||||||||||||
||||||selling|||||||
|Hongta|Holding|||USD24,||||||||
||||Manufa||of|92,757.||||149,672||
|Renhen|subsidia|||360.990|||41.97%|41.97%|Yes|||
||||cturing||high-cla|07||||.84||
|g Paper|ry|||9||||||||
||||||ss|||||||
|Co.,||||||||||||
||||||packagi|||||||
|Ltd.||||||||||||
||||||ng paper|||||||
||||||board|||||||
|||Zhuhai|||Manufa|||||||
||||||cturing|||||||
|Zhuhai|Subsidia|||||||||||
||||||and|||||||
|Jinji|ry of|||||||||||
||||Manufa|6,927.1|selling|6,900.0||||||
|Chemic|holding||||||51%|51%|Yes|||
||||cturing|94|of|0||||||
|als Co.,|subsidia|||||||||||
||||||chemica|||||||
|Ltd.|ry|||||||||||
||||||l raw|||||||
||||||matrials|||||||

Other notes to subsidiaries obtained by business combination not under the same control:
Note: 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
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. (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 2013.
2. Special purpose entities or operating entities with control right formed by entrusted operation or lease during the reporting period
Unit: RMB Yuan
||||
|-|-|-|
||Main business with the|Main balance of assets and liabilities confirmed within the|
|Name|||
||Company|consolidated in the end of the period|

Note to Special purpose entities or operating entities with control right formed by entrusted operation or lease during the reporting period.
3. Explanation on changes in consolidated scope
Explanation on change in the consolidated scope:
□Applicable√Inapplicable
4. The entities newly or no longer included into the consolidated scope during the reporting period
The subsidiaries, special purpose entities and operating entities with control right formed by entrusted operation or lease that newly included in the consolidated scope
Unit: RMB Yuan
||||
|-|-|-|
|Name|Net asset at period-end|Net profit in the period|

 There is no subsidiary, special purpose entity and operating entity with control right formed by entrusted operation or lease that newly included in the consolidated scope
Unit: RMB Yuan
||||
|-|-|-|
|||Net profit from the year begin to|
|Name|Net asset at disposal date||
|||disposal date|

Other explanation to main body that newly included or excluded in the consolidated scope
5. Business combination under same control during the report period
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||cash flow from|
||||Income at the|Net profit at the||
|||Actual controller|||operations at the|
||||beginning of the|beginning of the||
|The combined party|Criterion|under same|||beginning of the|
||||period to the|period to the||
|||control|||period to the|
||||combining date|combining date||
||||||combining date|

Other explanation to business combination under same control
6. Business combination not under same control during the report period
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Unit: RMB Yuan
||||
|-|-|-|
|The combined party|Amount of goodwill|Calculation method of goodwill|

Other notes to business combination not under the same control:
Whether existing multiple transactions step by step carry out business combination and gain the control during the reporting period.
□Applicable√Inapplicable
7. Sale of losing control of equity to decrease subsidiary of the Company during the reporting period.
||||
|-|-|-|
|Name of the subsidiary|Date of the sale|Confirmation method of profit and loss|

 Other explanation to sale of losing control of equity to decrease subsidiary of the Company during the reporting period.
Whether there is a transaction through the multiple step by step disposal of subsidiary investment and lose the control till the reporting period.
□Applicable√Inapplicable
8. Counter purchase occurred during the reporting period
|||||
|-|-|-|-|
||||Calculation method of|
|||Determine method of the|goodwill confirmed or recorded|
|Back-door party|Judgment of counter purchase|||
|||combination costs|into the profits and losses in|
||||consolidated|

Other explanation of counter purchase.
9. Consolidation by merger during the reporting period.
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Type|Main assets of consolidation||Main liabilities of consolidation||
|Consolidation by merger under the same control|Item|Amount|Item|Amount|
|Consolidation by merger not under the same|||||
||Item|Amount|Item|Amount|
|control|||||

Other explanation to consolidation by merger during the reporting period
10. Conversion rate of the main report project in oversea business entity
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item|Amount in|Exchange||Amount in|Exchangerate||
||||Amount in RMB|||Amount in RMB|
||foreign currency|rate||foreign currency|||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|Cash:|--|--|246,013.17|--|--|384,346.80|
|RMB|--|--|124,103.29|--|--|208,930.83|
|HKD|51,192.14|0.78623|40,248.79|49,090.45|0.81085|39,804.99|
|USD|||||||
|Cash:|13,393.87|6.09690|81,661.09|21,575.21|6.28550|135,610.98|
|Bank deposit:|--|--|197,521,218.12|--|--|377,488,517.15|
|RMB|--|--|154,390,161.58|--|--|329,125,212.54|
|HKD|1,727,785.20|0.78623|1,358,436.56|655,300.84|0.81085|531,350.68|
|USD|6,851,452.37|6.09690|41,772,619.98|7,609,883.20|6.28550|47,831,920.83|
|EUR||||3.98|8.31760|33.10|
|Other monetary funds:|--|--|3,898,999.93|--|--|100,983,732.19|
|RMB|--|--|3,897,126.17|--|--|96,015,991.43|
|USD|307.33|6.09690|1,873.76|790,349.34|6.28550|4,967,740.76|
|Total|--|--|201,666,231.22|--|--|478,856,596.14|

 Special explanation shall be made for the accounts limited by being mortgaged, pledged or frozen, deposited overseas or with potential collecting risks:
Restricted monetary fund details are asbelow：
|||
|-|-|
|Item|Closing balance|
|Cash deposit of bank acceptance bill|13,273.83|
|The L/C deposit|826,873.76|
|The L/G L/G|577,297.07|
|Other monetary funds used toguarantee||
|Total|1,417,444.66|

2. Trading financial assets
（1）Trading financial assets
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing fair value|Opening fair value|

（2）Trading financial assets of variable current limit of tradable financial assets
Unit: RMB Yuan
||||
|-|-|-|
|Item|Restricted conditions or other major restricted of|Closing amount|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||
|-|
|variable current limit|

（3）Hedging tool and the explanation to related hedging transactions
3. Notes receivable
(1) Category of notes receivable
Unit: RMB Yuan
||||
|-|-|-|
|Category|Closing balance|Opening balance|
|Bank acceptance bill|362,998,502.84|478,565,033.97|
|Commercial acceptance bill||1,691,998.12|
|Total|362,998,502.84|480,257,032.09|

 (2) Notes receivable pledged at period-end
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Issuing entity|Date of issuance|Expiring date|Amount|Remark|
|Ukang Packaging Co.,|||||
||29 Nov. 2013|28 Feb. 2014|17,610,000.00||
|Ltd.|||||
|Shanghai Yuetu Industry|||||
|&Trade Development|29 Sep. 2013|29 Mar. 2014|7,200,000.00||
|Co., Ltd.|||||
|Shantou Yuedong|||||
|Printing Supplies Co.,|27 Aug. 2013|27 Feb. 2014|7,000,000.00||
|Ltd.|||||
|Shantou Yuedong|||||
|Printing Supplies Co.,|30 Sep. 2013|30 Mar. 2014|7,000,000.00||
|Ltd.|||||
|Shanghai Yuetu Industry|||||
|&Trade Development|31 Jul. 2013|31 Jan. 2014|6,000,000.00||
|Co., Ltd.|||||
|Total|--|--|44,810,000.00|--|

(3) Notes transferred to accounts receivable because drawer of the notes fails to execute the contract or agreement, and undue notes endorsed to other parties at the end of the period
Notes transferred to accounts receivable because drawer of the notes fails to execute the contract
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Issuing entity|Date of issuance|Expiring date|Amount|Remark|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Note
No notes transferred to accounts receivable because drawer of the notes fails to execute the contract
The Company has endorsed bills to the other party which not yet expired
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Issuing entity|Date of issuance|Expiring date|Amount|Remark|
|Fujian Province|||||
|Xinglong Packing Co.,|24 Sep. 2013|26 Mar. 2014|2,000,000.00||
|Ltd.|||||
|Guangdong Sun|||||
||23 Oct. 2013|22 Apr. 2014|1,800,000.00||
|Industrial Co., Ltd.|||||
|Guangdong Yongshun|||||
||22 Nov. 2013|22 May 2014|1,600,000.00||
|Color Printing Co., Ltd.|||||
|China Resources Snow|||||
|China Resources Snow|||||
|Breweries（GuangDong）|7 May 2013|26 Feb. 2014|1,259,237.78||
|Co,Ltd.|||||
|Chongqing Peace|||||
|Chongqing Peace|||||
||24 Jul. 2013|24 Jan. 2014|1,200,000.00||
|Drugstore Chain Co.,Ltd.|||||
|Total|--|--|7,859,237.78|--|

Note
Explain to commercial acceptance bill discounted or pledged
4 Dividends receivable
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||||||Related payment|
|||Increase in this|decrease in this||Reason of not||
|Item|Opening balance|||closing balance||whether impair|
|||period|period||recovered||
|||||||or not|
|Of which：|--|--|--|--|--|--|
|Of which：|--|--|--|--|--|--|

 Note
5. Interest receivable
（1）Interest receivable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase in this period|decrease in this period|closing balance|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.（2）Overdue interest
Unit: RMB Yuan
||||
|-|-|-|
|The loan entity|Overdue time (days)|Amount|

（3）Note to interest receivable
6. Accounts receivable
(1) Accounts receivable listed by categories
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing balance||||Opening balance||||
||Book balance||Bad debt provision||Book balance||Bad debt provision||
|Category|||||||||
|||Proportion||Proportion||Proportion||Proportion|
||Amount||Amount||Amount||Amount||
|||(%)||(%)||(%)||(%)|
|Accounts receivable for which bad debt provisions are made on the group basis|||||||||
|Group—aging analysis|870,040,09||6,105,130.7||978,106,4||||
|||93.87%||0.7%||95.09%|9,471,231.86|0.97%|
|method|0.27||9||47.60||||
||870,040,09||6,105,130.7||978,106,4||||
|Subtotal of the groups||93.87%||0.7%||95.09%|9,471,231.86|0.97%|
||0.27||9||47.60||||
|Accounts receivable with|||||||||
|insignificant single|||||||||
||56,831,203.||52,961,152.||50,542,91||47,584,566.5||
|amount and individually||6.13%||93.19%||4.91%||94.15%|
||11||64||2.82||0||
|withdrawn bad debt|||||||||
|provision|||||||||
||926,871,29||59,066,283.||1,028,649||57,055,798.3||
|Total||--||--||--||--|
||3.38||43||,360.42||6||

Notes to category of accounts receivable:
Accounts receivable with significant single amount and individually withdrawn bad debt provision
□Applicable√Inapplicable
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√Applicable□Inapplicable
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
||Book balance|||Book balance|||
|Aging|||Provision for bad||||
|||Proportion|||Proportio|Proportion (%)|
||Amount||debts|Amount|||
|||(%)|||n (%)||
|Within 1 year|||||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|Including:|--|--|--|--|--|--|
|1-3 months|794,657,093.64|91.34%||842,743,304.71|86.16%||
|4-12 months|54,434,618.95|6.25%|2,721,730.95|119,549,428.25|12.22%|5,977,142.70|
|Subtotal of within|||||||
||849,091,712.59|97.59%|2,721,730.95|962,292,732.96|98.38%|5,977,142.70|
|1 year|||||||
|1-2 years|15,838,149.05|1.82%|1,583,814.90|9,391,609.84|0.96%|939,160.99|
|2-3 years|2,518,431.30|0.29%|503,686.26|2,189,820.09|0.22%|437,964.00|
|Over 3 years|2,591,797.33|0.3%|1,295,898.68|4,233,928.31|0.44%|2,116,964.17|
|Total|870,040,090.27|--|6,105,130.79|978,106,447.60|--|9,471,231.86|

 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
□Applicable√Inapplicable
Other closing individually insignificant but provisions for bad debts individually accounts receivable:
√Applicable□Inapplicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Content of accounts|||Withdrawal proportion||
||Book balance|Provision for bad debts||Reason for withdrawal|
|receivable|||(%)||
|||||Already win the lawsuit,|
|||||while there were no|
|Guangdong Regall|||||
||9,919,562.58|9,919,562.58|100%|property available for|
|Group Co., Ltd.|||||
|||||execution that unable to|
|||||recover the balance|
|Foshan Jiahe Paper|||||
||4,902,239.70|4,412,015.73|90%|difficult to recover|
|Trading Co., Ltd.|||||
|Dongguan ErQing|||||
||4,516,409.08|4,516,409.08|100%|difficult to recover|
|Supplies Company|||||
|Hong Kong Chengkai|||||
|||||Small possibility to take|
|Economic and Trade|4,513,086.25|3,610,469.00|80%||
|||||back|
|Development Co., Ltd.|||||
|||||Already win the|
|Shenzhen Xieji Industry||||lawsuit,，no execution|
||3,760,350.10|1,880,175.05|50%||
|Co., Ltd.||||property，Difficult to take|
|||||back|
|||||Apply to the court for|
|Zhuhai Eastern Zhengtai|||||
|||||compulsory execution，|
|Power Equipment Co.,|2,925,825.54|2,633,242.99|90%||
|||||Small possibility to take|
|Ltd.|||||
|||||back|
|GuangzhouYi xin Color|1,917,358.32|1,917,358.32|100%|difficult to recover|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|Printing Paper co., Ltd.|||||
|Yueyang Economic and|||||
|Technological|||||
|Development Zone|1,589,682.46|1,589,682.46|100%|difficult to recover|
|Zhongfei Economic and|||||
|Trade Co., Ltd.|||||
|Urban Area Supplies|||||
||1,351,827.19|1,351,827.19|100%|difficult to recover|
|Industrial Company|||||
|Guangdong Jiangnan|||||
||1,070,324.24|1,070,324.24|100%|difficult to recover|
|Paper Co., Ltd|||||
|||||Already win the|
|||||lawsuit,，but no|
|Zhuhai Gongbei Ronghui|||||
||1,016,655.73|914,990.16|90%|executable property,|
|Trading Co., Ltd.|||||
|||||withdraw provision|
|||||according to 90%|
|Other|19,347,881.92|19,145,095.84|98.95%||
|Total|56,831,203.11|52,961,152.64|--|--|

(2) Accounts receivable reversed or collected in the reporting period
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Recognition basis oforiginal bad debtprovision|Reversed or collected||
|Content of accounts|Reversed or collected|||Reversed or collected|
||||amount of the accrued||
|receivable|reason|||amount|
||||bad debt provision||

The withdrawal of bad debt provision of accounts receivable with significant single amount or insignificant single amount but individually made impairment test at the end of reporting period:
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Content of accounts|||||
||Book balance|Balance of bad debts|Provision ratio (%)|Reason|
|receivable|||||

Notes to accounts receivable with insignificant single amount but large risks of groups after grouping by credit risks characteristics:
（3）Actual write-off accounts receivable during the reporting period
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||Whether occurred|
||Nature of the|||||
|Name of entity||Time of write-off|Amount of write-off|Reason of write-off|because of related|
||accounts receivable|||||
||||||party transaction|
|Nanhai Shatou||||||
||Payment for goods||9,919.11|Aging over 3 years|No|
|Qianfeng Color Print||||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
|Factory||||||
|Zhongshan Yicai||||||
|Color printing Co.,|Payment for goods||9,642.08|Aging over 3 years|No|
|Ltd.||||||
|Longjiang Huamei||||||
||Payment for goods||9,257.14|Aging over 3 years|No|
|Package Plant||||||
|Sihui Runcheng||||||
||Payment for goods||8,420.52|Aging over 3 years|No|
|Color Print Plant||||||
|Huidong—Liangxin||||||
||Payment for goods||8,113.73|Aging over 3 years|No|
|g||||||
|Xinhui Shuangshui||||||
||Payment for goods||8,000.00|Aging over 3 years|No|
|Carton plant||||||
|Other|||138,136.64|Aging over 3 years|No|
|Total|--|--|191,489.22|--|--|

Note to accounts receivable of cancel after verification
（4）Accounts receivable due to shareholders holding shares with over5% voting right at the period-end. Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Name of entity||Balance for bad debt||Balance for bad debt|
||Book balance||Book balance||
|||provision||provision|

（5）Information of the top five accounts receivable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Relationship with the|||Proportion in the total|
|Name of entity||Amount|Period||
||Company|||accounts receivable (%)|
|No. 1|Non-related party|58,441,220.58|Within 3 months|6.3%|
|No. 2|Non-related party|41,390,891.08|Within 3 months|4.46%|
|No. 3|Non-related party|33,384,914.27|Within 3 months|3.6%|
|No. 4|Non-related party|33,230,600.93|Within 3 months|3.58%|
|No. 5|Non-related party|30,941,437.30|Within 3 months|3.34%|
|Total|--|197,389,064.16|--|21.28%|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.（6）Accounts receivable that were terminated recognition
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Proportion in the total accounts|
|Name of entity|Relationship with the Company|Amount||
||||receivable (%)|
|Guangdong Guanhao||||
|||548,407.00|0.06%|
|High-tech Co., Ltd.||||
|Yueyang Forest & Paper Co.,||||
|||9,112.56|0%|
|Ltd.||||
|Yueyang Antai industry Co.,||||
|||105,302.10|0.01%|
|Ltd.||||
|Total|--|662,821.66|0.07%|

（7）Particulars of accounts receivable that were terminated recognition
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount of derecognition|The profit or loss related to derecognition|

（8）Securitization is carried out on accounts receivable, the amount of assets and liabilities formed by list in its continuous involvement
Unit: RMB Yuan
|||
|-|-|
|Item|Closing amount|
|Assets:||
|Liabilities:||

7. Other receivables
(1) Other accounts receivable disclosed by categories:
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing balance||||Opening balance||||
||Book balance||Provision for bad debts||Book balance||Provision for bad debts||
|Category|||||||||
|||Proportio||Proportion (%)||Proportion||Proportio|
||Amount||Amount||Amount||Amount||
|||n (%)||||(%)||n (%)|
|Other accounts|18,103,516.4||18,103,516.|4100%8|||||
|||20.05%|||6,000,000.00|14.36%|6,000,000.00|100%|
|receivable that is|8||||||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|individually significant|||||||||
|and provisions for bad|||||||||
|debts individually|||||||||
|Other accounts receivable that provisions for bad debts by group|||||||||
|Group—Aging analysis|67,023,103.3||||31,919,124.3||||
|||74.22%|1,037,355.88|1.55%||76.42%|2,645,049.57|8.29%|
|method|5||||5||||
||67,023,103.3||||31,919,124.3||||
|Subtotal of the groups||74.22%|1,037,355.88|1.55%||76.42%|2,645,049.57|8.29%|
||5||||5||||
|Other accounts|||||||||
|receivable with|||||||||
|insignificant single|||||||||
||5,178,290.54|5.73%|5,078,290.54|98%|3,850,082.38|9.22%|3,850,082.38|100%|
|amount and individually|||||||||
|withdrawn bad debt|||||||||
|provision|||||||||
||90,304,910.3||24,219,162.9||41,769,206.7||||
|Total||--||--||--|12,495,131.95|--|
||7||0||3||||

Notes for categories of other accounts receivable: N/A
Other closing accounts receivable that is individually significant and provisions for bad debts individually.√Applicable□Inapplicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Content of other accounts|||Withdrawal proportion||
||Book balance|Provision for bad debts||Reason|
|receivable|||(%)||
|Zhuhai Yidecheng|||||
||6,000,000.00|6,000,000.00|100%|difficult to recover|
|Industrial Co., Ltd|||||
|Hong Kong Hang Fung|||||
|Hong Kong Hang Fung|12,103,516.48|12,103,516.48|100%|difficult to recover|
|Holdings Limited|||||
|Total|18,103,516.48|18,103,516.48|--|--|

In the group, other accounts receivable that provision for bad debts by aging analysis:
√Applicable□Inapplicable
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
||Book balance|||Book balance|||
|Aging|||Provision for bad|||Provision for bad|
||Amount|Proporti|||Proporti||
||||debts|Amount||debts|
|||on (%)|||on (%)||
|Within 1 year|||||||
|Including:|||||||
|1-3 months|58,071,112.76|86.64%||11,125,855.66|34.86%||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|4-12 months|3,842,056.42|5.74%|192,102.82|1,952,101.10|6.12%|97,605.07|
|Subtotal of within 1 year|61,913,169.18|92.38%|192,102.82|13,077,956.76|40.98%|97,605.07|
|1-2 years|3,925,634.56|5.86%|392,563.46|16,981,789.80|53.2%|1,697,618.97|
|2-3 years|464,867.35|0.69%|92,973.48|266,211.21|0.83%|53,242.24|
|Over 3 years|719,432.26|1.07%|359,716.12|1,593,166.58|4.99%|796,583.29|
|Total|67,023,103.35|--|1,037,355.88|31,919,124.35|--|2,645,049.57|

 In the group, other accounts receivable that provision for bad debts by balance percentage:
□Applicable√Inapplicable
In the group, other accounts receivable that provision for bad debts by other methods:
□Applicable√Inapplicable
Other closing individually insignificant but provisions for bad debts individually accounts receivable:
√Applicable□Inapplicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Content of other accounts|||Withdrawal proportion||
||Book balance|Provision for bad debts||Reason for withdrawal|
|receivable|||(%)||
|Zhuhai Municipal||||Advances for road|
|Construction|2,000,000.00|2,000,000.00|100%|construction before 2001,|
|Commission||||and difficult to recover|
|||||Brush-ray machine used|
|||||in experiment, while the|
|Jiangmen Pengjiang||||machines cann‘t be used|
|Jinghua Sieve Plate|1,105,650.00|1,105,650.00|100%|for unsuccessful|
|Manufacturing Co., Ltd.||||experiment, so the|
|||||account was|
|||||irrecoverable|
|Shenchi Industrial Co.,||||Loans before 1993,|
||500,000.00|500,000.00|100%||
|Ltd.||||difficult to recover|
|Subtotal of other||||Estimayed to be|
||1,572,640.54|1,472,640.54|93.64%||
|companies||||irrecoverable|
|Total|5,178,290.54|5,078,290.54|--|--|

（2）Other accounts receivable reversed or recovered in the reporting period
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||||Withdrawal amount of||
|Content of accounts|Reason for reversal or|Basis on recognition of||Reversed or recovered|
||||bad debt provision before||
|receivable|recovery|provision for bad debts||amount|
||||the reversal or recovery||

The withdrawal of bad debt provision of accounts receivable with significant single amount or insignificant single
amount but individually made impairment test at the end of report period:
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Content of otheraccounts receivable|||Withdrawal proportion||
||Book balance|Provision for bad debts||Reason for withdrawal|
||||(%)||

Notes to accounts receivable with insignificant single amount but large risks of groups after grouping by credit risks characteristics:
（3）Other actual write-off accounts receivable during the reporting period
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||Whether occurred|
||Nature of the||Amount of|||
|Name of entity||Time of write-off||Reason of write-off|because of related party|
||accounts receivable||write-off|||
||||||transaction|

 Note to other actual write-off accounts receivable
（4）Accounts receivable due to shareholders holding shares with over5% voting right at the period-end. Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Name of entity||Balance for bad debt||Balance for bad debt|
||Book balance||Book balance||
|||provision||provision|
|China National Paper-Industry|||||
||94,575.18||||
|Investment Corp.|||||
|Total|94,575.18||||

（5）Nature or content of other accounts receivable with significant amount
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Proportion in the total accounts|
|Name of entity|Amount|Nature or content||
||||receivable (%)|

Note
（6）Top five other accounts receivable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||||Proportion in total|
||Relationship with the||||
|Name of entity||Amount|Period|amount of other accounts|
||Company||||
|||||receivable (%)|
|No. 1|Non-related party|40,670,000.00|Within 3 months|45.04%|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|No. 2|Non-related party|12,103,516.48|2-3 years|13.4%|
|No. 3|Non-related party|6,000,000.00|Over 3 years|6.64%|
|No. 4|Non-related party|4,000,000.00|1-3 months|4.43%|
|No. 5|Non-related party|2,000,000.00|Over 3 years|2.21%|
|合计|--|64,773,516.48|--|71.72%|

（7）Other accounts receivable due to related parties
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Proportion in total amount of|
|Name of entity|Relationship with the Company|Amount||
||||other accounts receivable (%)|
|Guangdong Chengtong||||
||Joint venture|774,552.14|0.86%|
|Logistics Co., Ltd.||||
|China National Paper-Industry||||
||Actual controller|94,575.18|0.1%|
|Investment Corp.||||
|Total|--|869,127.32|0.96%|

（8）Particulars of other accounts receivable that were terminated recognition
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount of derecognition|The profit or loss related to derecognition|

（9）Securitization is carried out on other accounts receivable, the amount of assets and liabilities formed by list in its continuous involvement
Unit: RMB Yuan
|||
|-|-|
|Item|Closing amount|
|Assets:||
|Liabilities:||

（10）Public subsidy recognized as amount receivable during the report period
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
||||||||Reason of not|
||Name of the||||||receiving the|
|Name of the||Closing|Closing|Estimated|Estimated|Estimated||
||item of public||||||estimated amount in|
|entity||balance|aging|receive time|receive amount|receive basis||
||subsidy||||||the estimated time (if|
||||||||any)|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.8、Prepayment
(1) List by aging analysis:
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Aging||Proportion||Proportion|
||Amount||Amount||
|||(%)||(%)|
|Within 1 year|205,885,132.55|99.09%|175,930,476.82|98.05%|
|1-2 years|1,227,426.40|0.59%|3,083,267.48|1.72%|
|2-3 years|345,584.00|0.17%|195,455.00|0.11%|
|Over 3 years|303,680.12|0.15%|211,935.57|0.12%|
|Total|207,761,823.07|--|179,421,134.87|--|

 Notes of aging of prepayment:
（2）Information of the top 5 prepayment
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Relationship with the||||
|Name of entity||Amount|Aging|Reason for unsettled|
||Company||||
|||||Prepayment for the|
|No. 1|Non-related relationship|37,687,939.04|Within 1 year||
|||||purchases of wood pulp|
|||||Prepayment for the|
|No. 2|Non-related relationship|33,672,376.83|Within 1 year||
|||||purchases|
|||||Prepayment for the|
|No. 3|Non-related relationship|22,548,208.80|Within 1 year||
|||||purchases|
|||||Prepayment for the|
|No. 4|Non-related relationship|13,818,914.81|Within 1 year||
|||||purchases|
|||||Prepayment for the|
|No. 5|Non-related relationship|13,115,125.48|Within 1 year||
|||||purchases|
|Total|--|120,842,564.96|--|--|

Notes of important companies of prepayment:
（3）Prepayment due to shareholders holding shares with over5% voting right during the reporting period Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Name of entity||Amount of provision||Amount of provision|
||Book balance||Name of entity||
|||for bad debt||for bad debt|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.（4）Note to prepayment
9 Inventory
(1) Category
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Provision for|||Provision for||
||Book balance||Book value|Book balance||Book value|
|||falling price|||falling price||
|Raw materials|267,103,600.50|8,003,749.83|259,099,850.67|336,780,913.59|3,573,128.74|333,207,784.85|
|Goods in process|59,834,965.17||59,834,965.17|66,579,779.62||66,579,779.62|
|Inventory goods|448,948,918.51|21,709,627.92|427,239,290.59|599,572,775.03|22,661,202.84|576,911,572.19|
|Revolving material|34,328,573.88||34,328,573.88|37,834,915.75||37,834,915.75|
|Contracted|||||||
|||||3,848,093.51||3,848,093.51|
|processing materials|||||||
|Total|810,216,058.06|29,713,377.75|780,502,680.31|1,044,616,477.50|26,234,331.58|1,018,382,145.92|

（2）Provision for falling price of inventories
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Withdrawal amount|Decrease in the reporting period|||
||Opening book|||||
|Category||in the reporting|||Closing book balance|
||balance||Reversal|||
|||period||||
|Raw materials|3,573,128.74|4,430,621.09|||8,003,749.83|
|Goods in process|22,661,202.84|3,279,027.33|4,126,915.57|103,686.68|21,709,627.92|
|Total|26,234,331.58|7,709,648.42|4,126,915.57|103,686.68|29,713,377.75|

（3）Details of provision for falling price of inventories
|||||
|-|-|-|-|
||||Proportion of reversal of|
||Basis on provision for falling||provision for impairment of|
|Item||Reasons for reversal||
||price of inventories||inventories to closing balance|
||||(%)|
|Goods in process|Net realizable value||0.92%|

 Notes of inventory
10. Other liquid assets
Unit: RMB Yuan
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Item|Closing balance|Opening balance|

Notes of other liquid assets
11. Available-for-sale financial assets
(1) Information of available-for-sale financial assets
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing fair value|Opening fair value|
|Available-for-sale equity instruments|4,862,620.84|3,400,433.40|
|Total|4,862,620.84|3,400,433.40|

 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 902,156 shares.
（2）Long-term liability investment of available-for-sale financial assets
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||||Total interestreceivable orreceived||
||||Initial cost of||Opening|Current||Closing|
|Item|Type|Value||Expiry date|||||
||||investment||balance|interest||balance|

Note to long-term liability investment of available-for-sale financial assets
（3）Impairment of available for sale financial assets
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Type of available for sale financial|equity instruments|Debt Instrument|||
||||Other|Total|
|assets|available for sale|available for sale|||

（4）Changer in impairment of available for sale financial assets during the reporting period
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Type of available for sale|Equity instruments|Debt Instrument|Other|Total|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|financial assets|available for sale|available for sale|

（5）The fair value falling sharply or continue falling of equity instruments available for sale
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||||Range of the||||
|Equity||||||Reasons of not according to|
||||fair value||Amount of||
|instruments||||Time of||provision for impairment of the|
||Cost|Fair value|relative to||provision for||
|available for||||continue falling||difference between the fair|
||||costs falling||impairment||
|sale（Subentry）||||||value and the cost|
||||（%）||||

12、Held-to-maturity investments
（1）Held-to-maturity investments
Unit: RMB Yuan
||||
|-|-|-|
|Item|Opening balance|Closing balance|

Note to held-to-maturity investments
（2）Investments for sale but not held-to-maturity
Unit: RMB Yuan
||||
|-|-|-|
|||Proportion of the amount of the investment before|
|Item|Amount||
|||sale（%）|

Note to Investments for sale but not held-to-maturity
13. Long-term receivables
Unit: RMB Yuan
||||
|-|-|-|
|Category|Closing balance|Opening balance|

14 Investment to joint ventures and associated enterprises
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
||Percentage of|Voting||||Total operation||
||||||||Net profit in|
|Name of|holding shares|percentage of|Total closing|Total closing|Total net|revenue in||
||||||||reporting|
|investee|of the|the Company|assets|liabilities|closing assets|reporting||
||||||||period|
||Company (%)|in investee (%)||||period||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||
|-|
|I. Joint ventures|
|II. Associated enterprises|
|I. Joint ventures|
|II. Associated enterprises|

15 Long-term equity investments
(1) List of long-term equity investment
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Explanati||||
|||||||||on for||||
|||||||||indifferen||||
|||||||||||Withdraw||
|||||||||ces||||
|||||||Share||||n||
||||||||Voting|between|||Cash|
|||||||holding||||impairme||
||Accounti|Initial|||||percentag|the share|Impairme||bonus in|
||||Opening|Increase/d|Closing|percentag||||nt||
|Investee|ng|investmen|||||e in|holding|nt||the|
||||balance|ecrease|balance|e in||||provision||
||method|t cost|||||investee|percentag|provision||reporting|
|||||||investee||||in the||
||||||||(%)|e and|||period|
|||||||(%)||||reporting||
|||||||||voting||||
|||||||||||period||
|||||||||percentag||||
|||||||||e in||||
|||||||||investee||||
|Guangdo||||||||||||
|ng||||||||||||
|Chengton|Equity|7,200,000|6,671,850|935,143.7|7,606,994|||||||
|||||||32%|32%|||||
|g|method|.00|.47|3|.20|||||||
|Logistics||||||||||||
|Co., Ltd.||||||||||||
|China||||||||||||
|Guangfa|Cost|113,558.0|113,558.0||113,558.0|||||||
|||||||0%|0%|||||
|Bank Co.,|method|0|0||0|||||||
|Ltd.||||||||||||
|||7,313,558|6,785,408|935,143.7|7,720,552|||||||
|Total|--|||||--|--|--||||
|||.00|.47|3|.20|||||||

（2）particular about the limited ability of transfer funds to investment enterprises
Unit: RMB Yuan
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Items of long-term equity investment|||
|||The amount of derecognized investment|
||Reason of limited||
|||losses in current period|

Note to long-term equity investment
Decease of long-term equity investment: in 2013 theCompany‘s subsidiary Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. use the original warehouse rented to Zhuhai Special Economic Zone ChengCheng printing (original worth RMB 3469705.05, accumulated depreciation RMB 1367140.17, and book value RMB 2102564.88). Since the date of change purpose, it was converted into fixed assets.
theCompany‘s subsidiary Huaxin (Foshan) Color Printing Co., Ltd. plan to sell long-term equity investment, so far had conduct the assets appraisal, and received RMB 8,526,499.50 of the housing fund, the house sale contracts of 1304,704, 604 of No. 47 in HuiJingCheng second street had been signed and sold. Others had not been signed.
There is no long-term equity investment using in mortgage or guarantee.
The amount of the investment real estate depreciation and amortization of 2013 was RMB 4,631,348.372013; the investment real estate did not need provision for impairment.
16. Investment property
(1) Investment property calculated by cost
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening book balance|Increase in the reporting|Decrease in the|Closing book balance|
|||period|reporting period||
|I. Total original book|14,695,094.19|13,301,225.27|3,656,242.88|24,340,076.58|
|value|||||
|1. Houses and|||||
||14,695,094.19|13,301,225.27|3,656,242.88|24,340,076.58|
|buildings|||||
|II. Accumulated|||||
|depreciation and|4,752,112.75|4,631,348.37|1,424,189.18|7,959,271.94|
|amortization|||||
|1. Houses and|||||
||4,752,112.75|4,631,348.37|1,424,189.18|7,959,271.94|
|buildings|||||
|III. Book value of|||||
||9,942,981.44|8,669,876.90|2,232,053.70|16,380,804.64|
|investment property|||||
|1. Houses and|||||
||9,942,981.44|8,669,876.90|2,232,053.70|16,380,804.64|
|buildings|||||
|V. Book value of|||||
||9,942,981.44|8,669,876.90|2,232,053.70|16,380,804.64|
|investment property|||||
|1. Houses and|||||
||9,942,981.44|8,669,876.90|2,232,053.70|16,380,804.64|
|buildings|||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Unit: RMB Yuan
|||
|-|-|
||Reporting period|
|Depreciation and amortization amount|4,631,348.37|

（2）Investment property calculated by the fair value
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
||||||Decrease in the reportingperiod|||
|||Increase in the reporting period||||||
||Opening|||Changes in|||Closing|
||||Self-use real|||||
|Item|book|||fair value||Transfer to|book|
||||estate or|||||
||balance|Purchase|inventory|recognised|Disposal|self-use real|balance|
||||transfer into|in profit or||estate||
|||||loss||||

Note: related details of investment real estate that change measurement model and investment real estate that not completed the property certificate during the reporting period, explain the reason and the estimated time of investment real estate.
17. Fixed assets
(1) Fixed assets details
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||Opening book||||Closing book|
|Item||Increase in the reporting period||Decrease in the||
||balance|||reporting period|balance|
|I. Total original book value|4,605,130,805.41|175,519,247.99||26,098,330.01|4,754,551,723.39|
|Including: Houses and|1,193,587,379.44|64,461,785.74||9,613,673.40|1,248,435,491.78|
|buildings||||||
|Machineries|3,221,258,649.07|101,447,753.57||10,626,977.00|3,312,079,425.64|
|Vehicles|65,428,392.20|4,285,187.57||5,339,632.42|64,373,947.35|
|Other equipments|124,856,384.70|5,324,521.11||518,047.19|129,662,858.62|
||Opening book|Increase in|Withdrawal in|||
|--||||Decrease in the|Closing book|
||balance|reporting period|reporting period|reporting period|balance|
|II. Accumulated|1,549,394,810.36|180,953,297.46||17,105,179.25|1,713,242,928.57|
|depreciation||||||
|Including: Houses and|310,351,756.85|37,580,833.04||2,760,793.31|345,171,796.58|
|buildings||||||
|Machineries|1,117,609,274.72|130,574,115.93||9,500,263.30|1,238,683,127.35|
|Vehicles|43,515,423.98|5,765,255.46||4,555,135.28|44,725,544.16|
|Other equipments|77,918,354.81|7,033,093.03||288,987.36|84,662,460.48|
||Opening book||||Closing book|
|--||--||||
||balance||||balance|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|III. The net book value of|3,055,735,995.05|--|3,041,308,794.82|
|fixed assets||||
|Including: Houses and|883,235,622.59|--|903,263,695.20|
|buildings||||
|Machineries|2,103,649,374.35|--|2,073,396,298.29|
|Vehicles|21,912,968.22|--|19,648,403.19|
|Other equipments|46,938,029.89|--|45,000,398.14|
|IV. Total impairment|76,679,757.00|--|76,679,757.00|
|provision||||
|Machineries|76,679,757.00|--|76,679,757.00|
|Other equipments||--||
|V. Total book value of fixed|2,979,056,238.05|--|2,964,629,037.82|
|assets||||
|Including: Houses and|883,235,622.59|--|903,263,695.20|
|buildings||||
|Machineries|2,026,969,617.35|--|1,996,716,541.29|
|Vehicles|21,912,968.22|--|19,648,403.19|
|Other equipments|46,938,029.89|--|45,000,398.14|

 Depreciation amount of this reporting period was RMB 180,953,297.46; original value of RMB 133,940,448.33was transferred into fixed assets from construction project.
（2）Temporary idle fixed assets at the end of the reporting period
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Accumulated||||
|Item|Original book value||Impairment of assets|Net book value|Remark|
|||depreciation||||

（3）Fixed assets rented in by financial lease
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|Original book value|Accumulated depreciation|Net book value|

（4）Fixed assets leased out by operating lease
Unit: RMB Yuan
|||
|-|-|
|Category|Closing book value|

（5）Fixed assets available for sale at the end of the reporting period.
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Book value|Fair value|Estimated disposal|Estimated disposal time|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||
|-|
|expenses|

（6）Fixed assets have not completed the property right certificate
||||
|-|-|-|
|||Estimate time of transferred to property|
|Item|Reason||
|||rights certificate|
||Is collecting documents or transfer||
|Buildings|||
||procedures are not completed||

Note to fixed assets
18. Construction in progress
(1) 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||
|Rewinder||||5,050,527.09||5,050,527.09|
|New establishment of|||||||
|||||25,717,155.57||25,717,155.57|
|warehouses|||||||
|Renovation project of 100 ton|||||||
|||||14,118,687.47||14,118,687.47|
|boiler|||||||
|Small projects||||2,583,328.30||2,583,328.30|
|Expansion project for|||||||
|production workshop phase|50,513,760.14||50,513,760.14|2,900,502.48||2,900,502.48|
|III|||||||
|Renovation of|||||||
|||||2,226,798.29||2,226,798.29|
|BM2DCS&QCS|||||||
|Renovation of BM1multi-disc|||||||
||2,341,020.22||2,341,020.22|2,105,153.55||2,105,153.55|
|machine|||||||
|Bobst automatic die cutting|||||||
|machine||||2,101,017.10||2,101,017.10|
|Founder H500 ink-jet printer||||1,400,769.24||1,400,769.24|
|BM2 air conditioner|||||||
||67,196.52||67,196.52|1,384,757.22||1,384,757.22|
|renovation|||||||
|Licensing and software fee for|||||||
||1,239,877.54||1,239,877.54|1,023,867.54||1,023,867.54|
|informalization project of|||||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|China paper （NC）|||||
|330# Flexo printing machine|||||
|non-stop collection /|||1,018,559.87|1,018,559.87|
|unwinding equipment|||||
|BM1 air conditioner|||||
||916,358.98|916,358.98|955,135.05|955,135.05|
|renovation|||||
|Rubber latex phase II project|27,827,556.42|27,827,556.42|797,356.20|797,356.20|
|Repair project for large staffs‘|||||
||||795,400.00|795,400.00|
|dormitory|||||
|BM2 Chuangjie system|||||
||2,512,354.05|2,512,354.05|||
|renovation project|||||
|Advanced wastewater|||||
|treatment and water reuse|2,760,654.45|2,760,654.45|||
|project|||||
|Central air-conditioning|||||
||1,460,000.00|1,460,000.00|||
|installation package B|||||
|Self -bring heating boiler|||||
|environmental upgrading|1,159,776.60|1,159,776.60|||
|technical renovation project|||||
|Automatic packaging line|||||
||7,363,133.16|7,363,133.16|||
|reconstruction project phase II|||||
|BM2 Paper cutting machine|||||
|drive control system upgrade|3,550,875.50|3,550,875.50|||
|project|||||
|Huafeng OARS library|2,926,116.91|2,926,116.91|||
|Other|9,231,249.53|9,231,249.53|14,976,001.63|14,976,001.63|
|Total|113,869,930.02|113,869,930.02|79,155,016.60|79,155,016.60|

 (2). Changes in significant construction in progress
Unit: RMB Yuan
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Includin||||
|||||||Project|||||||
||||Increase||||||||||
||||||||||g:||||
|||||Transferr||input||||Capitaliz|||
|Name of||Opening|in|ed to|Other|percenta|Project|Capitaliz|capitaliz|ation of|Source|Closing|
||Budget|||||||ation of|ation of||of||
|project||balance|reporting|fixed|decrease|ge of|process|||interest||balance|
|||||||||interest|interest||funding||
||||period|assets||budget|||in this|rate (%)|||
|||||||(%)|||||||
||||||||||period||||
|Rewinde|5,050,52|5,050,527.09||5,050,52|||||||Other||
||||||||100||||||
|r|7.09|||7.09|||||||source||
|Renovati|30,079,7|14,118,6|15,961,0|30,079,7|||100||||Other||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|on|56.55|87.47|69.08|56.55||||||source||
|project||||||||||||
|of 100||||||||||||
|ton||||||||||||
|boiler||||||||||||
|New||||||||||||
|establish||||||||||||
||35,799,1|25,717,1|10,082,0|35,799,1||||||Other||
|ment of||||||100||||||
||84.98|55.57|29.41|84.98||||||source||
|warehou||||||||||||
|ses||||||||||||
|Renovati||||||||||||
|on of|2,226,79|2,226,79||2,226,79||||||Other||
|||||||100||||||
|BM2DC|8.29|8.29||8.29||||||source||
|S&QCS||||||||||||
|Renovati||||||||||||
|on of||||||||||||
||2,500,00|2,105,15|235,866.|||||||Other|2,341,02|
|BM1mul|||||94%|95||||||
||0.00|3.55|67|||||||source|0.22|
|ti-disc||||||||||||
|machine||||||||||||
|Rubber||||||||||||
|latex|54,850,0|797,356.|27,030,2|||||||Other|27,827,5|
||||||51%|60||||||
|phase II|00.00|20|00.22|||||||source|56.42|
|project||||||||||||
|Food||||||||||||
|white||||||||||||
|card||||||||||||
|coated||||||||||||
|paper|25,000,0|4,000,91|22,394,3|26,395,2||||||Other||
|||||||100||||||
|double-si|00.00|0.13|53.27|63.40||||||source||
|ded||||||||||||
|special||||||||||||
|producti||||||||||||
|on line||||||||||||
|Renovati||||||||||||
|on of|3,420,00|2,800,99|347,160.|3,148,15||||||Other||
|||||||100||||||
|pulping|0.00|0.49|51|1.00||||||source||
|machine||||||||||||
|Expansio||||||||||||
|n project||||||||||||
||98,100,0|2,900,50|47,613,2||||1,027,10|1,027,10||Other|50,513,7|
|for|||||51%|50|||5%|||
||00.00|2.48|57.66||||0.87|0.87||source|60.14|
|producti||||||||||||
|on||||||||||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|worksho|||||||||||||
|p phase|||||||||||||
|III|||||||||||||
|Rubber|||||||||||||
|latex|9,500,00||7,634,13||271,000.||||||Other|7,363,13|
|||||||78%|90||||||
|phase II|0.00||3.16||00||||||source|3.16|
|project|||||||||||||
|BM2|||||||||||||
|Paper|||||||||||||
|cutting|||||||||||||
|machine|||||||||||||
||4,000,00||3,550,87||||||||Other|3,550,87|
|drive||||||89%|||||||
||0.00||5.50||||||||source|5.50|
|control|||||||||||||
|system|||||||||||||
|upgrade|||||||||||||
|project|||||||||||||
|Huafeng|||||||||||||
||26,339,1||2,926,11||||||||Other|2,926,11|
|OARS||||||11%|30||||||
||29.18||6.91||||||||source|6.91|
|library|||||||||||||
||296,865,|59,718,0|137,775,|102,699,|271,000.|||1,027,10|1,027,10|||94,522,4|
|Total||||||--|--|||--|--||
||396.09|81.27|062.39|681.31|00|||0.87|0.87|||62.35|

 Notes of changes in construction in progress
(3). Provision for impairment of construction in progress
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Increase in reporting|Decrease in|||
|Item|Opening amount|||Closing amount|Reason of provision|
|||period|reporting period|||

(4). Progress of major projects under construction in progress
||||
|-|-|-|
|Item|Progress|Remark|

(5). Note to construction in progress
19. Engineering materials
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Increase in|Decrease in||
|Item|Opening amount|||Closing amount|
|||reporting period|reporting period||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Notes of engineering materials:
20. Disposal of fixed assets
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Reason of transferring into|
|Item|Opening book value|Closing book value||
||||disposal|

Note to the disposal progress fixed assets has transfer into disposal more than one year from the beginning
21. Productive biological assets
(1). Calculated by the cost
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Increase in reporting|||
|Item|Opening book balance||Decrease in reporting period|Closing book balance|
|||period|||
|I. Crop farming|||||
|II. Livestock|||||
|III. Forestry|||||
|IV. Fishing industry|||||

（2）Calculated by fair value
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Increase in reporting|||
|Item|Opening book balance||Decrease in reporting period|Closing book balance|
|||period|||
|I. Crop farming|||||
|II. Livestock|||||
|III. Forestry|||||
|IV. Fishing industry|||||

Note to productive biological assets
22. Oil and gas assets
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Increase in reportingperiod|Decrease in reporting||
|Item|Opening book balance|||Closing book balance|
||||period||

Note to oil and gas assets
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 23. Intangible assets
(1) Information
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Increase in reporting|Decrease in reporting||
|Item|Opening book balance|||Closing book balance|
|||period|period||
|I. Total original book value|194,176,283.94|9,418,184.05|32,101,600.00|171,492,867.99|
|(1) Land use right|175,368,514.04|4,013,305.38|32,101,600.00|147,280,219.42|
|(2) Development of coated|||||
||8,318,225.05|||8,318,225.05|
|cow card paper|||||
|(3) Research of new process|||||
||3,029,721.95|||3,029,721.95|
|for papermaking|||||
|(4) Research of liquid|||||
||2,168,353.05|||2,168,353.05|
|packaging paper|||||
|(5) Research of|||||
||3,631,820.08|||3,631,820.08|
|low-white-smoke card paper|||||
|(6) Other|1,659,649.77|5,404,878.67||7,064,528.44|
|II. Accumulative|||||
||50,047,769.15|5,204,054.31|972,775.80|54,279,047.66|
|amortization|||||
|(1) Land use right|38,161,657.88|3,923,036.17|972,775.80|41,111,918.25|
|(2) Development of coated|||||
||7,860,927.52|340,920.00||8,201,847.52|
|cow card paper|||||
|(3) Research of new process|||||
||3,029,721.95|||3,029,721.95|
|for papermaking|||||
|(4) Research of liquid|||||
||64,368.30|216,835.32||281,203.62|
|packaging paper|||||
|(5) Research of|||||
||90,795.51|363,182.04||453,977.55|
|low-white-smoke card paper|||||
|(6) Other|840,297.99|360,080.78||1,200,378.77|
|III. Total net book value of|||||
||144,128,514.79|4,214,129.74|31,128,824.20|117,213,820.33|
|intangible assets|||||
|(1) Land use right|137,206,856.16|90,269.21|31,128,824.20|106,168,301.17|
|(2) Development of coated|||||
||457,297.53|-340,920.00|0.00|116,377.53|
|cow card paper|||||
|(3) Research of new process|||||
|for papermaking|||||
|(4) Research of liquid|2,103,984.75|-216,835.32||1,887,149.43|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|packaging paper|||||
|(5) Research of|||||
||3,541,024.57|-363,182.04||3,177,842.53|
|low-white-smoke card paper|||||
|(6) Other|819,351.78|5,044,797.89||5,864,149.67|
|IV. Total of provision for|||||
||||0.00||
|impairment|||||
|(1) Land use right|||||
|(2) Development of coated|||||
|cow card paper|||||
|(3) Research of new process|||||
|for papermaking|||||
|(4) Research of liquid|||||
|packaging paper|||||
|(5) Research of|||||
|low-white-smoke card paper|||||
|(6) Other|||||
|Total book value of|144,128,514.79|||117,213,820.33|
|||4,214,129.74|31,128,824.20||
|intangible assets|||||
|(1) Land use right|137,206,856.16|90,269.21|31,128,824.20|106,168,301.17|
|(2) Development of coated|||||
||457,297.53|-340,920.00||116,377.53|
|cow card paper|||||
|(3) Research of new process|||||
|for papermaking|||||
|(4) Research of liquid|||||
||2,103,984.75|-216,835.32||1,887,149.43|
|packaging paper|||||
|(5) Research of|||||
||3,541,024.57|-363,182.04||3,177,842.53|
|low-white-smoke card paper|||||
|(6) Other|819,351.78|5,044,797.89||5,864,149.67|

 Amortization was of RMB 5,204,054.31 in reporting period.
(2). Company development expense
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||Decrease in reporting period|||
|||Increase in reporting||||
|Item|Opening amount||Calculated into the|Recognized as|Closing amount|
|||period||||
||||profits and losses|intangible assets||

The proportion of development expense account for total research and development projects expense in the reporting period.
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. The proportion of intangible assets formed through the internal research and development of the Company account for the closing book value of intangible assets.
Note to the research item, including single value over 100 million and recorded on the basis of appraisal value shall disclose the name of appraisal agency, and appraisal method.
24. Goodwill
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||Opening balance||||Impairment|
|Name of investee or event that||Increase in the|Decrease in the|||
|||||Closing balance|provision at|
|generated goodwill||reporting period|reporting period|||
||||||period-end|
|Zhuhai S.E.Z. Hongta Renheng||||||
||9,129,025.01|||9,129,025.01||
|Paper Co., Ltd.||||||
|Zhuhai Jinji Chemicals Co., Ltd.|2,418,280.28|||2,418,280.28||
|Total|11,547,305.29|||11,547,305.29||

Notes of test method of goodwill impairment and impairment withdrawal method
25. Long-term deferred expense
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||||Amortizationamount in thereporting period||||
|||Increase in the||Decrease in thereporting period||Reason for other|
|Item|Opening balance||||Closing balance||
|||reporting period||||decrease|
|Decoration|||||||
|expense for|777,863.44|242,000.00|239,080.05||780,783.39||
|rent-in plant|||||||
|Expense for|||||||
|||148,504.27|||148,504.27||
|Software service|||||||
|Total|777,863.44|390,504.27|239,080.05||929,287.66|--|

 Notes of long-term deferred expense
26. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets and deferred income tax liabilities are not listed as the net value after offset Recognized deferred income tax assets and deferred income tax liabilities:
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Deferred income tax assets|||
|Provision for assets impairment|16,695,072.75|13,211,336.12|
|Provision for bad debts|5,782,323.73|5,463,164.31|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Provision for falling price of inventories|10,503,911.43|10,782,244.25|
|Accrued unpaid wages|1,114,587.51|1,092,275.43|
|Accrued sales agency fees|806,135.64|1,528,718.80|
|Estimated liabilities/ estimated product quality|||
||1,071,940.35|445,053.52|
|guarantee losses|||
|Accrued paper transportation fees|764,192.66|3,980,552.97|
|Subtotal|36,738,164.07|36,503,345.40|
|Deferred income tax liabilities:|||
|Change in fair value of available-for-sale financial|||
||357,205.31|231,875.00|
|assets that was recorded into the capital reserves|||
|Appreciation of assessed intangible assets|2,301,918.00|3,928,239.88|
|Appreciation of assessed fixed assets|664,878.44|1,289,217.37|
|Subtotal|3,324,001.75|5,449,332.25|

 List of unrecognized deferred income tax assets
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Deductible temporary differences|79,081,983.21||
|Total|79,081,983.21||

The deductible losses of unrecognized deferred income tax assets that will expire in the following fiscal year
Unit: RMB Yuan
|||||
|-|-|-|-|
|Year|Closing balance|Opening balance|Remark|

List of taxable differences and deductible differences
Unit: RMB Yuan
||||
|-|-|-|
||Amount of temporary difference||
|Item|||
||Period-end|Period-begin|
|Taxable differences item|||
|Appreciation of assessed intangible assets|15,346,120.01||
|Appreciation of assessed fixed assets|4,432,522.90||
|Change in fair value of available-for-sale financial|||
||2,381,368.73||
|assets that was recorded into the capital reserves|||
|Subtotal|22,160,011.64||
|Deductible difference item|||
|Deductible difference item|||
|Provision for bad debts|83,285,446.33||
|Provision for falling price of inventories|29,713,377.75||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
|Provision for falling price of fixed assets|76,679,757.00|
|Accrued unpaid wages|4,458,350.03|
|Accrued sales agency fees|5,374,237.59|
|Estimated liabilities/ estimated product quality||
||7,146,269.00|
|guarantee losses||
|Accrued paper transportation fees|5,094,617.78|
|Subtotal|211,752,055.48|

（2）List of net amount of deferred income tax assets and deferred income tax liabilities after write-off Items of deferred income tax assets and deferred income tax liabilities after offset with each other
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Deferred income tax|Deductible or taxable|Deferred income tax|Deductible or taxable|
||assets or liabilities|temporary|assets or liabilities|temporary|
|Item|after offset with each|differences after|after offset with each|differences after|
||other at the|offset with each other|other at the|offset with each other|
||period-end|at the period-end|period-begin|at the period-begin|
|Deferred income tax assets|36,738,164.07||36,503,345.40||
|Deferred income tax liabilities|3,324,001.75||5,449,332.25||

List of deferred income tax assets and deferred income tax liabilities after offset with each other
Unit: RMB Yuan
|||
|-|-|
|Item|Offset amount in the reporting period|

Notes of deferred income tax assets and deferred income tax liabilities:
27. List of provision for assets impairment
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||Opening book|Increase in|Decrease in reporting period||Closing book|
|Item||||||
||balance|reporting period|Reversal|Written off|balance|
|I. Provision for bad debts|69,550,930.31|16,998,424.83|2,967,623.01|296,285.80|83,285,446.33|
|II. Provision for falling price|26,234,331.58|7,709,648.42|4,126,915.57|103,686.68|29,713,377.75|
|of inventories||||||
|VII. Provision for impairment|76,679,757.00||||76,679,757.00|
|of fixed assets||||||
|Total|172,465,018.89|24,708,073.25|7,094,538.58|399,972.48|189,678,581.08|

 Notes of the list of assets impairment:
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 28. Other non-current assets
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing amount|Opening amount|

Note to other non-current assets
29. Short-term loan
(1) Category
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Pledge loan|109,794,168.00|100,000,000.00|
|Guarantee loan|281,453,500.00|403,000,000.00|
|Credit loan|290,000,000.00|700,423,375.00|
|Trade financing|65,270,692.93|8,735,539.28|
|Total|746,518,360.93|1,212,158,914.28|

 Notes of category of short-term loan:
(1). The pledge loan of RMB 109,794,168.00 gained on 31 Dec. 2013, in which: theCompany‘s subsidiary Zhuhai Huafeng Paper Co., Ltd. signed the Contract on Pledge of Rights with Agricultural Bank of China Co., Ltd, which pledged the bank acceptance bills of RMB 59,321,136.24 to Foshan Huada Branch of Agricultural Bank of China Co., Ltd for export business commercial financing and gained a short-term loan of RMB 60,000,000.00; Zhuhai Huafeng Paper Co., Ltd. signed the Contract on Pledge of Rights with Foshan Huada Branch of Agricultural Bank of China Co., Ltd, which pledged the bank acceptance bills of RMB 59,321,136.24 and receivables of 8,500,980.29 dollars to Foshan Huada Branch of Agricultural Bank of China Co., Ltd for export business commercial financing and gained a short-term loan of 8,007,402.46 dollars, which is RMB 49,794,168.00.
(2).The guarantee loan of RMB 281,453,500.00 gained on 31 Dec. 2013, in which: the Company
borrowed RMB 120,000,000.00 from the Foshan Huada Branch of the Agricultural Bank of China Co., Ltd, and China Paper Corporation provided the joint liability guarantee for such loan; theCompany‘s subsidiary Zhuhai Hongta Renheng Paper Co., Ltd borrowed RMB 5,000,000.00 from Zhuhai Qianshan Branch of the Agricultural Bank of China Co., Ltd, and China Paper Corporation provided the joint liability guarantee for such loan and borrowed 15,000,000.00 dollars (RMB 91,453,500.00) from Zhuhai Branch of China Everbright Bank, and the Company provided the joint liability guarantee for such loan; borrowed RMB 50,000,000.00 from Zhuhai Branch of China Construction Bank Co., Ltd, and the Company provided the joint liability guarantee for such loan; theCompany‘s subsidiary Zhuhai Huafeng Paper Co., Ltd borrowed RMB 15,000,000.00 from Zhuhai Qianshan Branch of the Agricultural Bank of China Co., Ltd, and the Company provided the joint liability guarantee for such loan.
(3). The trade financing loan of RMB 65,270,692.93 gained on 31 Dec. 2013, in which: theCompany‘s subsidiary
Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. gained the trade financing loan of RMB 60,000,000.00 and the
Company provided the joint liability guarantee for such loan; the subsidiary Foshan Chengtong Paper Co., Ltd.
gained the trade financing loan of RMB 5,270,692.93, and the Company provided the joint liability guarantee for
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. such loan
(2)No List of unsettled mature short-term loan at the end of this period
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||Estimated repayment|
|The loan entity|Amount of loan|Loan rate|Uses of loan fund|Reason of fail to repay||
||||||period|

Amount has been repaid after the balance sheet
Note short-term loan, including short-term loan by extension expired, explanation of the expired conditions, new date of expiry 30. Transaction financial liabilities
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing fair value|Opening fair value|

Note to transaction financial liabilities
31. Notes payable
Unit: RMB Yuan
||||
|-|-|-|
|Category|Closing amount|Opening amount|
|Bank acceptance|7,208,770.58|21,440,149.18|
|Total|7,208,770.58|21,440,149.18|

 Expiry amount RMB 7,208,770.58 in next accounting period
Note to notes payable
Cash deposit of notes payable was RMB 0.
32. Accounts payable
(1) Accounts payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Within 1 year|287,598,469.58|322,681,001.39|
|1-2 years|15,187,985.61|211,033.05|
|2-3 years|47,028.25|774,555.87|
|Over 3 years|2,506,828.96|2,841,239.67|
|Total|305,340,312.40|326,507,829.98|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. (2) Accounts payable to shareholders with more than5% (including5%) of the voting shares of the Company
Unit: RMB Yuan
||||
|-|-|-|
|Name of the entity|Closing amount|Opening amount|

（3）Explanation on significant accounts payable aging over one year
||||
|-|-|-|
|Name of entity|Closing balance|Reason forunsettlement|
|Marubeni Corporation|2,059,748.47|Under thesettlement|
|Tokyo Ferry Party|958,428.29|Under thesettlement|
|Zhuhai Gas Company|819,425.16|Under thesettlement|
|Guangdong Zhanjiang City United|498,984.01|Under thesettlement|
|Run Industrial Co., Ltd.|||
|Vioth paper gmbh|440,000.00|Under thesettlement|
|TEMFELT CORP.|151,971.12|Under thesettlement|
|CROSLENE CHEMICALINDUSTRIES (H.K.) LIMITED|115,329.29|Under thesettlement|
|Total:|5,043,886.34|Under thesettlement|

33. Advance from customers
(1) Advance from customers
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Within 1 year|37,631,581.27|28,025,682.57|
|1-2 years|3,420,667.13|616,912.74|
|2-3 years|591,928.20|345,205.50|
|Total|41,644,176.60|28,987,800.81|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. (2) Accounts payable to shareholders with more than5% (including5%) of the voting shares of the Company
Unit: RMB Yuan
||||
|-|-|-|
|Name of the entity|Closing amount|Opening amount|

（3）Explanation on significant accounts payable aging over one year
||||
|-|-|-|
|Name of entity|Closing balance|Reason forunsettlement|
|Shanghai FengYi MultiplexMaterial Co., Ltd|1,891,129.70|Not yet settled|
|Hongta Liaoning Tobacco|177,600.00|Not yet settled|
|Co., Ltd Yingkou CigaretteFactory|||
|Combine:|2,068,729.70||

34. Payroll payable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Increase in reporting|||
|Item|Opening book balance||Decrease in reporting period|Closing book balance|
|||period|||
|I. Salary, bonus,|||||
||15,471,417.80|197,000,453.52|179,751,681.50|32,720,189.82|
|allowance, subsidy|||||
|II. Employee welfare|645,935.47|6,137,055.19|6,782,990.66||
|III. Social insurance|23,820.29|22,677,184.33|22,688,475.31|12,529.31|
|IV. Housing fund||6,132,706.06|6,122,315.95|10,390.11|
|V. Termination|||||
|||1,010,849.78|1,010,849.78||
|benefit|||||
|VI. Others|5,992,501.83|4,524,008.08|4,208,418.62|6,308,091.29|
|Total|22,133,675.39|237,482,256.96|220,564,731.82|39,051,200.53|

 The amount in arrears of payroll payable
The labor union budget and employee education budget is RMB 6,308,091.29; compensation made due to terminate the labor relationship is RMB 1,010,849.78.
Time and amount of payroll payable is expected to issue
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 35. Taxes payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|VAT|3,731,653.25|10,395,693.60|
|Business tax|292,397.66|3,508,971.93|
|Corporate income tax|12,598,097.09|68,920,147.28|
|Personal income tax|259,900.51|163,454.41|
|Urban maintenance and construction tax|887,098.94|1,751,021.90|
|Property tax|633,167.20|1,178,160.92|
|Education surtax|638,263.78|1,255,354.79|
|Levee expense|323,995.44|272,139.69|
|Stamp tax|1,249,271.95|1,548,649.16|
|Other|-420,590.42|546,231.12|
|Total|20,193,255.40|89,539,824.80|

 Notes of taxes payable: for the taxable income of branch companies and factories approved to be inter-adjusted by their local tax authorities, the Company shall specified their calculation procedure:
36. Interest payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Enterprise bond interest|5,284,444.47||
|Interest payable on short-term borrowings|6,979,523.50|5,136,504.84|
|Interest payable arising from capital of medium term|||
||16,501,666.70|19,266,666.71|
|notes assigned for loan|||
|Zhejiang Jinji Holdings Co., Ltd.||637,400.00|
|Total|28,765,634.67|25,040,571.55|

 Note to interest payable
37. Dividends payable
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Reason for unsettlement over 1|
|Name of entity|Closing balance|Opening balance||
||||year|
|Foshan Xinhui Industrial||||
|||54,494.00||
|Development Co., Ltd.||||
|Foshan Light Industry Company||79,264.00||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|Foshan Asset Administration Center|170,913.00|113,942.00||
|Yanlord Industries Pte. Ltd.||10,065,774.75||
|Yunnan Hongta Group Co., Ltd.||23,486,807.76||
|Xinbang (Group) Hong Kong Ltd.|9,562,048.09|9,562,048.09||
|Jinhou International Chemicals||||
|||4,300,316.18||
|(Hong Kong) Co., Ltd.||||
|Zhejiang Jinji Holdings Co., Ltd.||12,900,948.53||
|Total|9,732,961.09|60,563,595.31|--|

Notes:
38. Other accounts payable
(1) Other accounts payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Within 1 year|18,235,144.33|14,690,977.10|
|1-2 years|2,124,117.74|6,260,122.32|
|2-3 years|479,734.09|8,215,634.81|
|Over 3 years|4,806,631.97|2,089,293.60|
|Total|25,645,628.13|31,256,027.83|

 (2) Other accounts payable from shareholders with more than5% (including5%) of the voting shares of the Company
Unit: RMB Yuan
||||
|-|-|-|
|Name of entity|Closing balance|Opening balance|
|Foshan Huaxin Development Co., Ltd.||11,756,255.21|
|Total||11,756,255.21|

 (3) Notes of the other large amount accounts payable aging over 1 year
||||
|-|-|-|
|Name of entity|Closing balance|Reason for unpayment|
|Yunan Yuxi Tengyin Logistics Co., Ltd.|1,050,000.00|Logistics margin|
|China Merchants Logistics|750,000.00|Logistics margin|
|Guangdong Xinliang ContainerTransportation Co., Ltd.|600,962.00|Litigation fees|
|Jiangxi Zhongshun Automotive logisticsCo., Ltd.|560,000.00|Logistics margin|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Nanhai Xingda packaging company|500,000.00|Logistics margin|
|Total:|3,460,962.00||

(4) Notes of other accounts payable with significant amount
||||
|-|-|-|
|Name of entity|Closing balance|Nature or content|
|Yunan Yuxi Tengyin Logistics Co., Ltd.|1,050,000.00|Logistics margin|
|China Merchants Logistics|750,000.00|Logistics margin|
|Guangdong Xinliang ContainerTransportation Co., Ltd.|600,962.00|Litigation fees|
|Jiangxi Zhongshun Automotivelogistics Co., Ltd.|560,000.00|Logistics margin|
|Nanhai Xingda packaging company|500,000.00|Logistics margin|
|Total:|3,460,962.00||

39. Estimated liabilities
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Increase in reporting|Decrease in reporting||
|Item|Opening balance|||Closing balance|
|||period|period||
|Other|2,967,023.46|4,179,245.54||7,146,269.00|
|Total|2,967,023.46|4,179,245.54||7,146,269.00|

 Notes of estimated liabilities:
Estimated losses for the goods sales claims
40. Non-current liabilities due within 1 year
(1)Non-current liabilities due within 1 year
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing amount|Opening amount|

(2) Long-term loan due within 1 year
Long-term loan due within 1 year
Unit: RMB Yuan
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Item|Closing amount|Opening amount|

The amount of the overdue loan in long-term loan due within 1 year
Top five long-term loans due within 1 year
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Closing balance||Opening balance||
||Startingdate||||||||
|Creditor||Ending date|Currency|Rate (%)|Foreign||Foreigncurrencybalance||
|||||||RMB||RMB|
||||||currency||||
|||||||balance||balance|
||||||balance||||

Mature loan of long-term loan due within 1 year:
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||||||Reason for|Estimated|
|Creditor|Amount of loan|Overdue date|Annual rate (%)|Usage|||
||||||unsettlement|settlement date|

RMB* was paid back after Balance Sheet Date:
Notes of long-term borrowings due within 1 year:
（3）Bonds payable due within 1 year in the reporting period
Unit: RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||||Accrued||||
||||||||Interest paid|||
||||||Opening|interest in||Closing||
|Name of the|Amount of||Overdue|Issuance|||in the||Closingbalance|
|||Issue date|||interest|the||interest||
|credit|loan||date|amount|||reporting|||
||||||payable|reporting||payable||
||||||||period|||
|||||||period||||

Bonds payable due within one year
（4）long-term accounts payable due within 1 year in the reporting period
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||||||Conditions of a|
|Creditor|Time limit|Initial amount|rate (%)|Accrued interest|Closing balance||
|||||||loan|

 Note to long-term accounts payable due within 1 year in the reporting period
41. Other current liability
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing book balance|Opening book balance|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Note to other current liability
42. Long-term loan
(1) Category of long-term loan
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing amount|Opening amount|

Notes of category of long-term loan:
(2) The top five long-term loans
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Startingdate||||Closing balance||Opening balance||
|Creditor||Ending date|Currency|Rate (%)|Foreign||Foreigncurrencybalance||
|||||||RMB||RMB|
||||||currency||||
|||||||balance||balance|
||||||balance||||

Note to long-term borrowing, long-term borrowing formed by overdue loan rollover, shall explain the conditions of the rollover, capital, interest, estimated repayment schedule etc.
43. Bonds payable
Unit: RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||Interest paid|||
||||||Opening|Closing||Closing||
|||Issuance||Issuing|||in the||Closingbalance|
|Name|Par value||Term||interest|interest||interest||
|||date||amount|||reporting|||
||||||payable|payable||payable||
||||||||period|||
|Corporatebonds||26 Nov.||791,700,000|4,640,000.0|47,044,444.|46,400,000.|5,284,444.4|793,330,251|
||||5 years|||||||
|||2012||.00|0|44|00|7|.65|

 Notes of bonds payable, including the conditions and date of conversion of the convertible corporate bonds: 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.
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 44. Long-term payable
(1) The top five long-term payable
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||||||Conditions of|
|Company|Term|Initial amount|Rate (%)|Accrued interest|Closing balance||
|||||||loan|
|China Chengtong|||||||
|Holding Group|5 years|500,000,000.00|4.8%|21,234,999.99|418,750,000.00||
|Co., Ltd.|||||||
|Zhejiang Jinji|||||||
|Holdings Co.,||29,400,000.00|6%|1,788,500.00|29,400,000.00||
|Ltd.|||||||
|Zhuhai Delai|||||||
|Environment|||||||
|Protection||12,772,400.00|1.52%|139,058.88|10,539,109.12||
|Technology Co.,|||||||
|Ltd.|||||||
|Zhuhai Xiangyu|||||||
|Energy Saving|||||||
|||3,392,000.00|2.9%|108,968.01|2,773,156.88||
|Technology Co.,|||||||
|Ltd.|||||||

（2）Details of accounts payable of financing lease in long-term payable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Closing Amount||Opening amount||
|Entity|||||
||Foreign currency|RMB|Foreign currency|RMB|
|Zhuhai Delai Environment Protection|||||
|||10,539,109.12|||
|Technology Co., Ltd.|||||
|Zhuhai Xiangyu Energy Saving|||||
|||2,773,156.88|||
|Technology Co., Ltd.|||||
|Total||13,312,266.00|||

An independent third party provide guarantee for financing lease of the Company.
Note: Closing balance is 500 million which is the raise money of medium-term notes issued by China Chengtong Holding Group Co., Ltd. the use period is five years, and the due date is March 24, 2015, if investors conduct back sell option, then back sell part of its current medium-term notes due date is March 24, 2013, rate is4.8% calculated by simple interest on a yearly basis. In Mar. 2013 part of theinvestor‘s about RMB 81.25 million had
conducted back sell option, so that on 24 Mar. 2013, the Company had pay the loan principal of 81.25 million to
China Chengtong Holding Group Co., Ltd.
The Sub-subsidiary of the Company Zhuhai jinji Chemical Co., Ltd took up the shareholder Zhejiang Jinji
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Holdings Co., Ltd. and use it to sign long term loan contract which agree that the lending rate is according to the same period of the people's bank of China announced the benchmark one-year lending rate Borrowing deadline was from September 1, 2012 to August 31, 2014.
As of December 31, 2013, the Sub-subsidiary of the Company Zhuhai jinji Chemical Co.,Ltd‗s balance of unrecognized financing charges is RMB 1,031,200.00.
45. Special payable
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||Decrease in|||
|||Increase in||||
|Item|Opening balance||reporting|Closing balance|Remark|
|||reporting period||||
||||period|||

Note to special payable
46. Other non-current liabilities
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing book balance|Opening book balance|
|Funds for desulfurization project|990,000.00|1,056,000.00|
|Funds for energy-saving and emission-reduction|1,710,000.00|540,000.00|
|Renovation project of the information system of|||
|paper-making enterprise energy management|3,600,000.00|800,000.00|
|center|||
|No. 1 paper machine update & renovation project|240,000.00|240,000.00|
|Tetra liquid paper renovation project|350,000.00||
|Steam condensation water recycling and energy|||
||1,920,000.00||
|saving projects|||
|Total|8,810,000.00|2,636,000.00|

 Note to other non-current liabilities
Item Opening book New amount The amount Other Closing book Associated
balance of subsidies in of chang balance with the
the reporting non-operati es asset/related
period ng income to earnings
in the
reporting
period
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Funds for Associated
1,056,000.00
66,000.00
990,000.00
desulfurization with the
project asset
Funds for Associated
540,000.00
1,200,000.00 30,000.00
1,710,000.00
energy-saving with the
and asset
emission-reducti
on
Renovation Associated
800,000.00
2 , 8 0 0,000.00
3,600,000.00
project of the with the
information asset
system of
paper-making
enterprise
energy
management
center
No. 1 paper Associated
240,000.00 240,000.00
machine update with the
& renovation asset
project
Leli liquid paper
Associated
renovation
350,000.00 350,000.00
with the
project
asset
Steam
1,920,000.00 Associated
condensation
1,920,000.00
with the
water recycling
and energy asset
saving projects
||||||
|-|-|-|-|-|
|Total|2,636,000.00|6,270,000.00|96,000.00|8,810,000.00|

Notes of other non-current liabilities, including each government grants relevant to assets and income received in the reporting period and their closing amounts:
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 66,000.00 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 30,000.00 was carried forward to the non-operating revenue.
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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. 4. 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, 2012. 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, RMB 350000 of government subsidies for Tetra liquid paper renovation project in Nov. 2013 and RMB 1.20 million special funds for energy conservation and circular economy of Guangdong province of 2013 in December of the same year. The above the government subsidies pertinent to assets, because the issue has not been used in the reporting period, it wad not calculated into non-operating income.
Liabilities project involving government subsidies Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||New amount of|The amount of|Other changes|Closing|Associated with the|
|||subsidies in the|non-operating||balance|asset/related to|
|Item|Opening balance||||||
|||reporting period|income in the|||earnings|
||||reporting period||||

47. Share capital
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|||Increase/Decrease (+/-)||||||
||Opening|||Capitalization|||Closing|
|||Issuing new||||||
||balance||Bonus shares|of public|Other|Subtotal|balance|
|||shares||||||
|||||reserves||||
|Total shares|505,425,000.00||||||505,425,000.00|

 Notes of changes in share capital, for those action of increasing capital or decreasing capital in the reporting period, the Company shall disclose the name of the accounting firm executing the capital verification and document number of the capital verification report; for joint-stock companies running for less than three years, only the net assets shall be specified for particulars before establishment; while for case of totally changing the limited liability companies into joint-stock companies, capital verification on the establishment shall be specified: 48. Treasury stock
Note to treasury stock
49. The special reserve
Note to The special reserve
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 50. Capital reserves
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Increase in the reporting|Decrease in the||
|Item|Opening balance|||Closing balance|
|||period|reporting period||
|Capital premium (share|||||
||261,931,302.59||5,568,777.21|256,362,525.38|
|capital premium)|||||
|Other capital reserves|159,887.68|467,754.15||627,641.83|
|Other||459,848.04||459,848.04|
|Total|262,091,190.27|927,602.19|5,568,777.21|257,450,015.25|

 Note to capital reserve: the decrease of the current capital reserve was the Company purchased the25% equity of Dragon State InternationalLimited‘s subsidiary Huaxin (foshan) Color Printing Co., Ltd. the purchase was belong to the purchase of minority share in the subsidiary. According to the provisions of the accounting standards for enterprises No. 2, When preparing consolidated financial statements of the company, By buying a minority share in the newly obtain a long-term equity investment and calculated according to the new shareholding, the Company should enjoy the subsidiaries‗share of net assets since acquisition continue to calculating the difference between the share of net assets, adjusting capital reserves.
51. Surplus reserves
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Increase in the reporting|Decrease in the||
|Item|Opening balance|||Closing balance|
|||period|reporting period||
|Statutory surplus reserves|170,337,106.09|8,903,028.71||179,240,134.80|
|Total|170,337,106.09|8,903,028.71||179,240,134.80|

 Notes of surplus reserves: for surplus reserves transferred to share capital, compensating losses and distributed as dividends, relevant resolutions shall be explained:
52. Provision for general risk
Note to provision for general risk
53. Retained profit
Unit: RMB Yuan
||||
|-|-|-|
|||Withdrawal or distributed|
|Item|Amount||
|||proportion|
|Opening balance of retained profits before|||
||768,206,504.60|--|
|adjustments|||
|Opening balance of retained profits after|768,206,504.60|--|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|adjustments|||
|Add：Attributable to owners of the Company|79,060,852.74|--|
|Less: Withdrawal of statutory surplus reserves|8,903,028.71|10%|
|Dividend of common stock payable|50,542,500.00||
|Closing retained profits|787,821,828.63|--|

List of adjustment of opening retained profits:
1) RMB0.00 opening retained profits was affected by retrospective adjustment conducted according to the Accounting Standards for Business Enterprises and relevant new regulations.
2) RMB0.00 opening retained profits was affected by changes on accounting policies.
3) RMB0.00 opening retained profits was affected by correction of significant accounting errors.
4) RMB0.00 opening retained profits was affected by changes in combination scope arising from same control. 5) RMB0.00 opening retained profits was affected totally by other adjustments.
Notes: as for IPO companies, if the accumulated profits were enjoyed by new and original shareholders according to the resolutions made at theshareholders‘ general meeting before public offering, the Company shall explain clearly; if the accumulated profits were distributed before public offering and enjoyed by the original shareholders according to the resolutions made at theshareholders‘ general meeting, the Company shall clearly disclose the audited profits of dividends payable enjoyed by the original shareholders:
Other notes to retained profits: withdrew the statutory surplus reserves at10% of the total net profits of the Company of RMB 89,030,287.11.
Acording to the first meeting of Fifth session of the board of directors resolution in 2013, the first meeting, On May 15, 2013 the Company companies annual shareholder meeting resolution in 2012, the meetings review and approved the 2012 annual profit distribution plan, the Company base on the total shares of 50542.5 million of the Company on 31 Dec. 2012, sent to all shareholders RMB 1 (tax included) in cash every 10 shares to the
shareholders, totally distribute dividend RMB 50,524.500.
54. Revenue and Cost of Sales
(1) Revenue, Cost of Sales
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Revenue from main business|3,913,213,455.88|3,459,925,967.03|
|Revenue from other business|92,896,356.78|186,776,273.79|
|Cost of sales|3,437,981,452.16|3,148,676,463.87|

 (2) Main business (Classified by industry)
Unit: RMB Yuan
||||
|-|-|-|
|Name of industry|Reporting period|Same period of last year|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
||Revenue of sales|Cost of sales|Revenue of sales|Cost of sales|
|Industry|3,913,213,455.88|3,423,875,741.27|3,459,925,967.03|3,045,672,151.91|
|Service industry|||||
|Total|3,913,213,455.88|3,423,875,741.27|3,459,925,967.03|3,045,672,151.91|

 (3) Main business (Classified by product)
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Reporting period||Same period of last year||
|Name of product|||||
||Revenue of sales|Cost of sales|Revenue of sales|Cost of sales|
|White board paper|307,849,900.30|326,026,186.59|503,807,864.71|476,971,191.93|
|White card paper|2,972,806,546.33|2,578,032,409.98|2,618,534,230.62|2,292,937,258.22|
|Printing products|244,832,899.59|184,860,824.39|219,023,051.72|176,797,785.91|
|Liquid packaging paper|161,537,448.20|145,771,884.90|7,376,534.29|6,406,462.93|
|Rubber latex|225,339,705.10|188,520,701.36|111,181,096.82|92,557,137.10|
|Calcium carbonate|846,956.36|663,734.05|3,188.87|2,315.82|
|Total|3,913,213,455.88|3,423,875,741.27|3,459,925,967.03|3,045,672,151.91|

 (4) Main business (Classified by area)
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Reporting period||Same period of last year||
|Area|||||
||Revenue of sales|Cost of sales|Revenue of sales|Cost of sales|
|Domestic sales|3,386,684,492.85|2,892,496,217.19|2,989,514,752.71|2,590,302,611.33|
|Export|526,528,963.03|531,379,524.08|470,411,214.32|455,369,540.58|
|Total|3,913,213,455.88|3,423,875,741.27|3,459,925,967.03|3,045,672,151.91|

 (5) The revenue of sales from the top five customers
Unit: RMB Yuan
||||
|-|-|-|
|Customer|Main business revenue|Proportion of total business revenue (%)|
|No. 1|323,468,629.06|8.27%|
|No. 2|101,036,026.20|2.58%|
|No. 3|62,062,508.10|1.59%|
|No. 4|58,721,199.60|1.5%|
|No. 5|58,266,708.25|1.49%|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Total|603,555,071.21|15.43%|

 Notes:
55. The revenue of contract item
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||||Cumulative gross||
||||The cumulative cost|||
|Fixed price contract|Contract item|Amount||profit has confirmed|Settled amount|
||||has occurred|||
|||||(loss with "-")||
|||||Cumulative gross||
||||The cumulative cost|||
|Cost plus contract|Contract item|Amount||profit has confirmed|Settled amount|
||||has occurred|||
|||||(loss with "-")||

Note to contract item
56. Business tax and surtax
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|Reporting period|Same period of last year|Calculation and payment standard|
|Business tax|3,650,875.27|3,549,162.20||
|Urban maintenance and construction||||
||9,827,347.34|5,415,004.05||
|tax||||
|Education surtax|6,444,483.49|3,862,861.47||
|Levee expense|2,859,702.80|1,886,396.82||
|Total|22,782,408.90|14,713,424.54|--|

Notes:
57. Selling expenses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Wages|15,751,600.09|11,203,856.23|
|Transportation fees|138,867,042.68|121,934,481.56|
|Sales agency fees|5,441,020.33|6,411,775.65|
|Entertainment expense|5,485,611.86|9,272,799.93|
|Warehousing fees / rental expense|6,614,797.62|11,552,916.73|
|Packing fee|9,209,815.07|7,549,009.74|
|Other|17,597,045.41|14,011,433.92|
|Total|198,966,933.06|181,936,273.76|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 58. Administrative expenses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Wages|48,410,715.19|44,013,480.20|
|Social security fee|16,619,297.05|14,998,133.73|
|Amortization of depreciation fee|17,243,493.20|20,847,615.57|
|Taxes|10,586,659.84|9,323,566.29|
|Office expense|2,031,880.70|2,879,743.03|
|Maintenance expense and material|||
||2,763,487.45|1,816,179.65|
|consumption|||
|Employ agency fee|6,547,435.56|2,008,192.58|
|Other|45,140,317.26|60,437,425.33|
|Total|149,343,286.25|156,324,336.38|

 59. Financial expenses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Interest expenditures|119,128,083.30|176,053,911.30|
|Less: interest income|3,308,024.38|2,609,314.15|
|Foreign exchange losses|1,584,107.88|8,611,636.93|
|Less: foreign exchange gains and losses|6,620,083.83||
|Other|2,737,753.73|7,912,680.99|
|Total|113,521,836.70|189,968,915.07|

 60. Gains and losses from changes in fair value during the year
Unit: RMB Yuan
||||
|-|-|-|
|Source of gains and losses from changes in fair|||
||Reporting period|Same period of last year|
|value|||

Note
61、. Investment income
(1) List of investment income
Unit: RMB Yuan
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Long-term equity investment income accounted by|||
||530,727.73|50,798,130.21|
|equity method|||
|Investment income arising from disposal of|||
|||280,258,717.64|
|long-term equity investments|||
|Investment income gain from available for sale|||
||126,785.51||
|financial assets|||
|Total|657,513.24|331,056,847.85|

 (2). Long-term equity investment income accounted by cost method in this period
Unit: RMB Yuan
|||||
|-|-|-|-|
|||Same period of last||
|Name of investee|Reporting period||Reason for increase/decrease|
|||year||

(3). Long-term equity investment income accounted by equity method
Unit: RMB Yuan
|||||
|-|-|-|-|
|||Same period of last||
|Name of investee|Reporting period||Reason for increase/decrease|
|||year||
||||Already transferred into equity in the|
|Tetra Pak (Foshan) Packaging Co., Ltd.||50,618,539.07||
||||year|
|Guangdong Chengtong Logistics Co.,||||
||530,727.73|179,591.14|Change in business performance|
|Ltd.||||
|Total|530,727.73|50,798,130.21|--|

Notes of investment income: make notes if there is significant limitation for recovery of investment income. If thereisn‘t the said limitation, notes too:
There was no significant limitation for recovery of investment income.
62. Asset impairment losses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|I. Bad debts losses|14,030,801.82|6,918,180.56|
|II. Inventory falling price losses|3,479,046.17|20,027,128.93|
|Total|17,509,847.99|26,945,309.49|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 63. Non-operating gains
(1)Non-operating gains
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Amount recorded into|
|Item|Reporting period|Same period of last year|current non-recurring gains|
||||and losses|
|Total gains from disposal of non-current||||
||51,476,397.59|102,559.32|51,476,397.59|
|assets||||
|Including: Gains from disposal of fixed||||
||1,255,221.79|102,559.32|1,255,221.79|
|assets||||
|Disposal of intangible assets|50,221,175.80||50,221,175.80|
|Government grants|7,246,780.00||7,246,780.00|
|Other|22,777,796.99|10,528,559.91|22,777,796.99|
|Total||||
|Total gains from disposal of non-current|80,729,893.58|18,151,556.67||
||||80,729,893.58|
|assets||||

Note:
1. Disposal of intangible assets gains RMB 50221175.80 component was from the company, in 2013,will bring the state-owned land use right of Port Road No. 13 on the west side into the government land reserve which became the disposal gains.
2. Other non-operating income mainly is the company's subsidiaries Zhuhai Huafeng Paper Co., Ltd received RMB 20,258,966.54 of the Stora Enso case performance fee according to the settlement agreement from Zhuhai Municipal Intermediate People's Court of Guangdong Province.
（2）List of government grants calculated in profit or loss.
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||||Associated with the|Non-recurring profit and|
|Item|Reporting period|Same period of last year|||
||||asset/related to earnings|loss or not|
|Pollution control|||||
||||Associated with the||
|construction subsidy|45,000.00|||Yes|
||||asset/||
|funds|||||
|Special funds produce,|||||
|study and grinds received|||||
|from Bureau of finance|||Associated with the||
||90,000.00|||Yes|
|of Foshan Chancheng|||asset/||
|district, production,|||||
|special fund grant|||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|subsidies|||||
|Government subsidy for|||||
|ammonia nitrogen|||Associated with the||
||40,500.00|||Yes|
|on-line monitoring|||asset/||
|system|||||
|Discount funds for|||Associated with the||
||44,764.00|||Yes|
|import|||asset/||
|Government discount|||Associated with the||
||14,637.00|||Yes|
|funds for import loan|||asset/||
|Special funds for the|||||
|desulfurization project|||||
||||Associated with the||
|paid by Foshan|66,000.00|||Yes|
||||asset/||
|Municipal Bureau of|||||
|Finance|||||
|Energy-saving and|||||
|emission-reduction funds|||||
||||Associated with the||
|for reforming the sewage|30,000.00|||Yes|
||||asset/||
|fiber ball filter system of|||||
|Finance Bureau|||||
|Special funds of|||||
|transformation and|||Associated with the||
||100,000.00|||Yes|
|upgrading of processing|||asset/||
|trade of Finance Bureau|||||
|Discount funds for|||||
||||Associated with the||
|promoting the imports of|263,546.00|||Yes|
||||asset/||
|enterprises in Guangdong|||||
|Discount funds for|||Associated with the||
||704,196.00|||Yes|
|import loan|||asset/||
|Special funds of|||Associated with the||
||500,000.00|||Yes|
|expanding import|||asset/||
|Awards for enterprise|||Associated with the||
||167,383.00|||Yes|
|development|||asset/||
|Water price different|||Associated with the||
||3,800,000.00|||Yes|
|incentive|||asset/||
|Subsidy for application|||Associated with the||
||24,800.00|||Yes|
|for a patent|||asset/||
|Awards for Guangdong|||||
||||Associated with the||
|provincial energy-saving|100,000.00|||Yes|
||||asset/||
|advanced enterprise|||||
|Subsidy for support|281,200.00|20,000|Associated with the|Yes|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|||asset/||
|Subsidy for energy||Associated with the||
||200,000.00||Yes|
|saving||asset/||
|Clean production, energy||Associated with the||
||10,000.00||Yes|
|saving incentive||asset/||
|||Associated with the||
|R&D subsidy funds|130,400.00||Yes|
|||asset/||
|||Associated with the||
|Consignment subsidies|121,070.00||Yes|
|||asset/||
|Awards for intellectual||||
|||Associated with the||
|property advantage|50,000.00||Yes|
|||asset/||
|enterprise||||
|Awards for enterprise||Associated with the||
||65,556.00||Yes|
|development||asset/||
|Gaolan fiscal Treasury||||
|||Associated with the||
|center social security|21,228.00||Yes|
|||asset/||
|incentive||||
|Special subsidies for||Associated with the||
||300,000.00||Yes|
|environmental protection||asset/||
|Awards for energy saving||Associated with the||
||46,500.00||Yes|
|technically improvement||asset/||
|Awards for advanced||Associated with the||
||30,000.00||Yes|
|energy-saving||asset/||

Award fund for Sample 10,000.00 Associated with the Yes
Enterprises Gaining asset/
Excellence on Market
Operation test for
Y2011 of Zhuhai
Municipal Bureau of
Finance
Funds for the 70,000.00 Associated with the Yes
independent brand asset/
projects of processing
trade by transformation
and upgrading paid by
Zhuhai Industry and
Trade Department
from the provincial
appropriation
Advanced Awards for 10,000.00 Associated with the Yes
Industry and
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Commerce from asset/
Zhuhai Social
Insurance Fund
Management Center
Price subsidies for 4,218,076.80 Associated with the Yes
industrial water asset/
|||||
|-|-|-|-|
|Awards for corporate||||
|||Associated with the||
|energy saving and|1,200,000.00||Yes|
|||asset/||
|consumption reduction||||

Award subsidy of 50,000.00 Associated with the Yes
energy saving for key asset/
energy consuming
enterprises
Awards for Guangdong 180,000.00 Associated with the Yes
provincial asset/
energy-saving
advanced enterprise
Special fund for energy 500,000.00 Associated with the Yes
saving in 2012 of asset/
Zhuhai Municipal
Bureau of Finance
Award form Zhuhai 100,000.00 Associated with the Yes
Municipal Bureau of asset/
Finance
Special fund for energy 100,000.00 Associated with the Yes
saving in 2012 of asset/
Zhuhai Municipal
Bureau of Finance
Awards for enterprise 324,497.11 Associated with the Yes
development of Zhuhai asset/
Municipal Bureau of
Finance
Subsidy for patents 32,050.00 Associated with the Yes
application of Zhuhai asset/
Municipal Bureau of
Finance
|||||
|-|-|-|-|
|Subsidy for energy||||
|saving of Foshan||Associated with the||
||30,000.00||Yes|
|Municipal Bureau of||asset/||
|Finance||||
|Awards for clearing|20,000.00|Associated with the|Yes|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|production and energy|||asset/||
|saving of Foshan|||||
|Special subsidy for|||||
||||Associated with the||
|environmental protection||100,000.00||Yes|
||||asset/||
|(VOCS)|||||
|Total|7,246,780.0|0 10,528,559.91|--|--|

64. Non-operating expenses
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Amount recorded into|
|Item|Reporting period|Same period of last year|current non-recurring|
||||gains and losses|
|Loss on disposal of non-current assets|352,476.01|333,965.61|352,476.01|
|Including: Loss on disposal of non-current assets|352,476.01|333,965.61|352,476.01|
|Loss on disposal of fixed assets||||
|Loss on arrangement||||
|Non-monetary asset exchange losses||||
|External donation expense||85,000.00||
|Fines, damages, fine for delaying payment|203,539.05|25,526.86|203,539.05|
|Scrap loss|2,165,129.78||2,165,129.78|
|other|3,401,584.25|1,774,217.51|3,401,584.25|
|Total|6,122,729.09|2,218,709.98|6,122,729.09|

 Note:
65. Income tax expense
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Current income tax expense accounted by tax and relevant|||
||43,821,527.88|69,631,763.59|
|regulations|||
|Adjustment of income tax|-269,021.89|-801,526.83|
|Total|43,552,505.99|68,830,236.76|

 66. Calculation process of basic EPS and diluted EPS
Calculation formula for data above:
1. Basic EPS
Basic EPS=P0÷S
S=S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk
Of which: P0 represents the amounts attributable to ordinary equity holders of the Company in respect of:
(a) Profit or loss attributable to the Company; and
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. (b) Profit or loss after deducting extraordinary gain or loss attributable to the Company.
S represents the weighted average number of ordinary shares outstanding during the period. S0 represents the number of ordinary shares at the beginning of the period. S1 represents the number of additional ordinary shares issued on capital surplus transfer or share dividends appropriation; Si represents the number of ordinary shares issued in exchange for cash or issued as a result of the conversion of a debt instrument to ordinary shares during the period. Sj represents reduced number of ordinary shares such as shares buy back. Sk represents the number of a reverse share split. Mo represents the months during the period. Mi represents the months from the following month after issuing incremental shares to the end of the period. Mj represents the months from the following month after reducing shares to the end of the period.
2. Diluted EPS
Diluted EPS=P1/(S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk+ The weighted average number of incremental ordinary shares on warrants, options, convertible debt and soon）
Of which: P1 represents the amounts attributable to ordinary equity holders of the Company in respect of: (a) Profit or loss attributable to the Company; and (b) Profit or loss after deducting extraordinary gain or loss attributable to the Company, adjust according to the accounting standards for enterprises and other relevant provisions. The Company considered in sequence from dilutive potential ordinary shares to get the lowest earnings per share.
Calculating process:
(1) Basic EPS
For the Company, the basic earnings per share shall be calculated by dividing the consolidated net profits belonging to the shareholders of ordinary shares by the weighted average number of ordinary shares issued to thepublic：
|||
|-|-|
|Item|Occurred amount in currentyear|
|Consolidated net profits belonging to the shareholdersof ordinary shares|79,060,852.74|
|Weighted average number of ordinary shares issued tothe public|505,425,000.00|
|Basic EPS（Yuan/share）|0.16|

Process of calculating weighted average number of ordinaryshares：
|||
|-|-|
|Item|Occurred amount incurrent year|
|Ordinary shares issued at the beginning of the period|505,425,000.00|
|Add: Weighted average number of ordinary shares issuedat the current period||
|Less: Weighted average number of ordinary sharerepurchased at the current period||
|Weighted average number publicly issued at the end of theperiod|505,425,000.00|

Note: the above date was adjusted in accordance with Accounting Standards of Business Enterprise No.34— Basic EPS.
(2) Diluted EPS
For the Company, the diluted EPS shall be calculated by dividing the adjusted consolidated net profits belonging
to the shareholders of ordinary shares by the adjusted weighted average number of ordinary shares issued to the
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. public
|||
|-|-|
|Item|Occurred amount incurrent year|
|Consolidated net profits belonging to the shareholders ofordinary shares (diluted)|79,060,852.74|
|Weighted average number of ordinary shares issued to thepublic（diluted）|505,425,000.00|
|Diluted EPS（Yuan/share）|0.16|

Process of calculating weighted average number of ordinary shares（diluted）：
|||
|-|-|
|Item|Occurred amount incurrent year|
|Weighted average number of ordinary shares issued to thepublic at period-end when calculating basic EPS|505,425,000.00|
|Affect of convertible bond||
|Affect of stock option||
|Weighted average number of ordinary shares at period-end(diluted)|505,425,000.00|

67. Other comprehensive income
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|1. Profits/(losses) from available-for-sale financial assets|835,535.56|331,558.87|
|Less: Effects on income tax generating from available-for-sale|||
||125,330.33|49,733.83|
|financial assets|||
|Subtotal|710,205.23|281,825.04|
|2.Share that enjoys in other comprehensive income of the|||
|invested entity in accordance with the equity method of|475,783.53||
|accounting share|||
|Less: Effects on income tax generating from share that|||
|enjoys in other comprehensive income of the invested entity in|71,367.53||
|accordance with the equity method of accounting share|||
|Subtotal|404,416.00||
|Total|1,114,621.23|281,825.04|

Note:
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 68. Notes of Cash Flow Statement
(1) Other cash received relevant to operating activities
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|
|Income from government grants|26,855,369.83|
|Insurance fee|2,783,289.89|
|Interest income from normal bank deposit|2,329,968.99|
|Waste income|890,783.48|
|Award for the disabled employment security|252,104.87|
|The related party that contacts|64,549,356.84|
|Other|37,927,756.63|
|Total|135,588,630.53|

 Notes of other cash received relevant to operating activities
(2) Other cash paid relevant to operating activities
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|
|In-comings and out-goings with non-related parties|18,636,471.47|
|Freight and miscellaneous fees|8,929,254.80|
|Business entertainment fees|8,229,000.61|
|Expenses for intermediaries|6,664,518.97|
|Maintenance fees|6,274,883.89|
|Travel expenses|4,551,435.57|
|Expenses for intermediaries|2,882,364.09|
|Bank charges|2,437,186.12|
|Lease expense|2,426,112.16|
|Water & electricity and property management charges|2,180,827.69|
|Environmental protection expense|1,633,268.80|
|Communications and communications equipment expense|1,036,929.66|
|Other|70,368,288.27|
|Total|136,250,542.10|

Notes
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. (3) Other cash received relevant to investment activities
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|

Notes
(4) Other cash paid relevant to investment activities
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|

Notes
(5) Other cash received relevant to financing activities
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|
|The acceptance deposit received|774,000.00|
|Total|774,000.00|

 Notes
(6) Other cash paid relevant to financing activities
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|

Notes
69. Appendix of Cash Flow Statement
(1) Appendix of Cash Flow Statement
Unit: RMB Yuan
||||
|-|-|-|
|Supplemental information|Reporting period|Same period of last year|
|1. Reconciliation of net profit to net cash flows generated|||
||--|--|
|from operating activities|||
|Net profit|97,716,219.34|206,296,975.49|
|Add: Provision for impairment of assets|17,509,847.99|26,945,309.49|
|Depreciation of fixed assets, of oil-gas assets, of productive|||
||185,584,645.83|178,244,949.36|
|biological assets|||
|Amortization of intangible assets|5,204,054.31|3,063,822.17|
|Amortization of long-term deferred expense|239,080.05|222,246.72|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Losses on disposal of fixed assets, intangible assets and|||
||-51,123,921.58|231,406.29|
|other long-term assets (gains: negative)|||
|Financial cost (gains: negative)|114,092,107.35|187,771,735.63|
|Investment loss (gains: negative)|-657,513.24|-331,056,847.85|
|Decrease in deferred income tax assets (gains: negative)|-234,818.67|-647,505.56|
|Increase in deferred income tax assets (decrease: negative))|-2,125,330.50|5,267,191.09|
|Decrease in inventory (gains: negative)|237,879,465.61|115,804,398.66|
|Decrease in accounts receivable from operating activities|||
||196,891,784.46|-72,783,518.59|
|(gains: negative)|||
|Increase in payables from operating activities (decrease:|||
||20,275,702.66|-300,195,566.64|
|negative)|||
|Net cash flows generated from operating activities|821,251,323.61|19,164,596.26|
|2. Investing and financing activities that do not involving|||
||--|--|
|cash receipts and payment:|||
|3. Net increase in cash and cash equivalents|--|--|
||200,248,786.56|378,872,416.49|
|Closing balance of cash|||
||378,872,416.49|364,560,090.87|
|Less: Opening balance of cash|||
|Net increase in cash and cash equivalents|-178,623,629.93|14,312,325.62|

 (2) Information about acquisition or disposal of subsidiary and other business units in the reporting period Unit: RMB Yuan
||||
|-|-|-|
|Supplementary Information|Reporting period|Same period of last year|
|I. Information about acquisition of subsidiaries and other|||
||--|--|
|business units:|||
|II. Information about disposal of subsidiaries and other|||
||--|--|
|business units|||

(3) Composition of cash and cash equivalents
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|I. Cash|200,248,786.56|378,872,416.49|
|Including: cash in hand|246,013.17|384,346.80|
|Bank deposit can be used for payment at any time|197,521,218.12|377,488,517.15|
|Other monetary funds can be used for payment at any|||
||2,481,555.27|999,552.54|
|time|||
|III. Closing balance of cash and cash equivalents|200,248,786.56|378,872,416.49|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Notes
70. Note to changes inowners’ equity
Explain the―Other‖ items to be adjusted at the end of the first half year and the adjusted amount; the retroactive adjustment due to consolidation of enterprises under the same control:
VIII. Relationship and Related Party Transactions
1. Particulars about the parent company of the Company:
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||Proportion|Proportion|||
||||||||s of parent|s of parent|||
||||||||||Ultimate||
|Name of||||Legal|||company‘s|company‘s|||
||Relationsh|Enterprise|Registratio||Business|Registered|||controller|Organizati|
|parent||||representat|||shareholdi|voting|||
||ip|nature|n place||nature|capital|||of the|on code|
|company||||ive|||ng to the|right to the|||
||||||||||company||
||||||||company|company|||
||||||||(%)|(%)|||
|Foshan|||||||||China||
||Controllin||||||||||
|Huaxin|||||||||Chengtong||
||g|Limited||Tong|Manufactu|||||19353992-|
|Developm|||Foshan|||45,793|65.2%|65.2%|Holding||
||shareholde|company||Laiming|ring|||||5|
|ent Co.,|||||||||Group Co.,||
||r||||||||||
|Ltd.|||||||||Ltd.||
|China|||||||||||
|National|||||||||China||
|Paper-indu|||||||||Chengtong||
||Actual|State-owne||Tong||||||10000890-|
|stry|||Beijing||Integrated|173,300|65.31%|65.31%|Holding||
||controller|d||Laiming|industry|||||7|
|Investment|||||||||Group Co.,||
|Corporatio|||||||||Ltd.||
|n|||||||||||
|China||Limited|||||||China||
||Controllin||||||||||
|Chengtong||company|||||||Chengtong||
||g|||Ma||||||71092254-|
|Holding||(solely|Beijing||Integrated|748,016.56|65.42%|65.42%|Holding||
||shareholde|||Zhengwu|industry|||||4|
|Group Co.,||state-owne|||||||Group Co.,||
||r||||||||||
|Ltd.||d )|||||||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
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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 through holding0.11% shares of the Company by its subsidiary, China Packaging Corporation.
2. Subsidiaries of the Company
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||Legal|||Proportion|Proportion||
|Full-name|Type of|Enterprise|Registered||Business|Registered|||Organizatio|
|||||representati|||of shares|of voting||
|of subsidiary|subsidiary|type|place||nature|capital|||n code|
|||||ve|||held (%)|right (%)||
|Foshan||||||||||
|Chengtong|Holding|Limited|||Manufacturi|||||
||||Foshan|Yan Su||30,000|75%|75%|68641217-2|
|||liability||||||||
|Paper Co.,|subsidiary||||ng|||||
|||company||||||||
|Ltd||||||||||
|Huaxin||||||||||
|(Foshan)||Limited||||||||
||Holding||||Manufacturi|||||
|Color||liability|Foshan|Chen Jiali||USD1,280|100%|100%|72111733-X|
||subsidiary||||ng|||||
|Printing||company||||||||
|Co., Ltd.||||||||||
|Zhuhai||||||||||
|||Limited||||||||
|Huafeng|Shareholdin|||||||||
|||liability|Zhuhai|Yan Su|Manufacturi|98,456|100%|100%|61762142-1|
|Paper Co.,|g company||||ng|||||
|||company||||||||
|Ltd.||||||||||
|Zhuhai||||||||||
|S.E.Z.||||||||||
|||Limited||||||||
|Hongta|Holding|||Tong||USD24,360.||||
|||liability|Zhuhai||Manufacturi||41.97%|41.97%|61750210-7|
|Renheng|subsidiary|||Laiming|ng|9909||||
|||company||||||||
|Paper Co.,||||||||||
|Ltd.||||||||||
|Foshan||||||||||
|Huazhi||Limited||||||||
||Shareholdin|||||||||
|Waste Paper||liability|Foshan|Chen Jiali|Service|500|100%|100%|77620148-3|
||g company||||industry|||||
|Recycling||company||||||||
|Co., Ltd.||||||||||
|Pearl River||||||||||
|||Limited||||||||
|Color|Shareholdin||||Manufacturi|||||
|||liability|Foshan|Chen Jiali||150|100%|100%|70817367-9|
|Printing|g company||||ng|||||
|||company||||||||
|Co., Ltd. of||||||||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Chancheng||||||||||
|District,||||||||||
|Foshan||||||||||
|Kunshan||||||||||
|Focai||Limited||||||||
||Holding||||Manufacturi||||56030722-|
|Packaging||liability|Suzhou|Chen||500|100%|100%||
||subsidiary|||Zhenran|ng||||X|
|& Printing||company||||||||
|Co., Ltd.||||||||||
|Zhuhai Jinji||Limited||||||||
||Shareholdin|||Ji|Manufacturi|||||
|Chemicals||liability|Zhuhai|||6,927.1940|51%|51%|77623593-1|
||g company|||Xiangdong|ng|||||
|Co., Ltd.||company||||||||

3. Particulars on joint ventures and associated enterprises of the Company
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Legal|||Proportion|Proportion|||
||Business|Registration||Business|Registered|||Relationshi|Organizatio|
|Item|||representati|||of holding|of voting|||
||Type|place||scope|capital|||p|n code|
||||ve|||shares (%)|rights (%)|||
|I. Joint ventures||||||||||
|II. Associated enterprises||||||||||
|Guangdong||||||||||
||Limited|||||||||
|Chengtong|||Li|||||Associated||
||liability|Zhuhai||Service|2,250|32%|32%||78485447-6|
|Logistics|||Xiangyang|||||enterprise||
||company|||||||||
|Co., Ltd.||||||||||

4. Other related parties of the Company
||||
|-|-|-|
|Name|Relationship|Organization code|
||Under the control of the same actual||
|Foshan Huaxin Import & Export Co., Ltd.||19354411-8|
||controller||
||Under the control of the same actual||
|Guangdong Guanhao High-tech Co., Ltd.||61780353-2|
||controller||
||Under the control of the same ultimate||
|Dragon State International Limited|||
||controller||
|Tianjin Port Free Trade Zone Zhongwu|Under the control of the same actual||
|||23966002-7|
|Investment Development Co., Ltd.|controller||
||Under the control of the same actual||
|Yueyang Forest & Paper Co., Ltd.||72258771-2|
||controller||
|Yueyang Antai industrial Co., Ltd|Under the control of the same actual|707334733|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Chengtong financial Co., Ltd|Under the control of the same actual|717833122|

Note
5．Related party transactions
(1) Purchase of goods and acceptance of labor services
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||||Reporting period||Same period of last year||
|||Pricing principle||Proportio||Proportio|
||Content of|and decision||n in||n in|
|Related party|related-party|making procedure||transactio||transactio|
||||Amount||Amount||
||transaction|of related-party||ns of the||ns of the|
|||transactions||same kind||same kind|
|||||(%)||(%)|
|Foshan Huaxin||Based on market|||||
|Import & Export|Paper|price and pricing|188.61|1.11%|200.81|0.42%|
|Co., Ltd.||after negotiation|||||
|Foshan Huaxin||Based on market|||||
|Import & Export|Raw material|price and pricing|727.55|19.3%|573.02|0.92%|
|Co., Ltd.||after negotiation|||||
|China National||Based on market|||||
|Paper-Industry|Imported newspapers|price and pricing|1,140.60|30.26%|15,227.13|9.16%|
|Investment Corp.||after negotiation|||||
|China National|||||||
|Paper-Industry|Purchasing wood pulp||26,041.90|12.56%|||
|Investment Corp.|||||||
|Guangdong||Based on market|||||
|Chengtong Logistics|Logistics service|price and pricing|2,466.27|19.48%|604.44|8.81%|
|Co., Ltd.||after negotiation|||||
|||Based on market|||||
|Guangdong Guanhao|||||||
||Raw material|price and pricing|70.32|23.57%|||
|High-tech Co., Ltd.|||||||
|||after negotiation|||||
|Tianjin Port Free|||||||
|Trade Zone||Based on market|||||
|Zhongwu Investment|Raw material|price and pricing|6,781.02|58.13%|3,512.95|27.26%|
|Development Co.,||after negotiation|||||
|Ltd.|||||||
|Total|||37,416.27||20,118.35||

Statements of sales of goods and rendering of service
Unit: RMB Yuan
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
||||Reporting period||Same period of last year||
|||Pricing principle||Proportio||Proportio|
||Content of|and decision||n in||n in|
|Related party|related-party|making procedure||transactio||transactio|
||||Amount||Amount||
||transaction|of related-party||ns of the||ns of the|
|||transactions||same kind||same kind|
|||||(%)||(%)|
|Foshan Huaxin||Based on market|||||
|Import & Export|Presswork|price and pricing|258.42|1.08%|540.78|1.07%|
|Co., Ltd.||after negotiation|||||
|Foshan Huaxin||Based on market|||||
|Import & Export|White card paper|price and pricing|172.48|0.06%|||
|Co., Ltd.||after negotiation|||||
|||Based on market|||||
|Guangdong Guanhao|||||||
||White card paper|price and pricing|107.03|0.04%|25.79|0.01%|
|High-tech Co., Ltd.|||||||
|||after negotiation|||||
|Guangdong||Based on market|||||
|Chengtong Logistics|White board paper|price and pricing|0.41|0%|1.03|0%|
|Co., Ltd.||after negotiation|||||
|||Based on market|||||
|Yueyang Forest &|||||||
||Rubber latex|price and pricing|290.13|1.29%|45.03|0.02%|
|Paper Co., Ltd.|||||||
|||after negotiation|||||
|||Based on market|||||
|Yueyang Antai|||||||
||Rubber latex|price and pricing|9.00|0.04%|||
|industrial Co., Ltd|||||||
|||after negotiation|||||
|Total|||837.47||919.95||

(2). Related trusteeship and contracting during the reporting period
Table of related trusteeship and contracting
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Name of|||||Income|
|Name of|||||||
||entrustee|Type|Start date|End day|Pricing basis|recognized in the|
|trustee/contractee|||||||
||/contractor|||||reporting period|

 Table of entrusted management/contractee
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Name of|||||Income|
|Name of|||||||
||entrustee|Type|Start date|End day|Pricing basis|recognized in the|
|trustee/contractee|||||||
||/contractor|||||reporting period|

Note
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. (3) Information of related-party lease
Leasing situation of the Company
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||||||Rental income|
|||Category of the|||Pricing basis for||
|Name of lessor|Name of lessee||Initial date|Ending date||recognized in the|
|||leased assets|||the rental income||
|||||||reporting period|
||Guangdong||||||
|Zhuhai S.E.Z.|||||||
||Chengtong|Houses and|||||
|Hongta Renheng|||1 Jan. 2013|31 Dec. 2013|Agreement price|700,108.00|
||Logistics Co.,|buildings|||||
|Paper Co., Ltd.|||||||
||Ltd.||||||

Rental situation of the Company
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||||||Rental expense|
|||Category of the|||Pricing basis for||
|Name of lessor|Name of lessee||Initial date|Ending date||recognized in the|
|||leased assets|||the rental expense||
|||||||reporting period|
||Foshan Huaxin||||||
|Foshan Huaxin|||||Perform||
||Development|Office and office|||||
|Development Co.,|||1 Jan. 2012|31 Dec. 2013|according to the|569,400.00|
||Packaging co.,|equipment|||||
|Ltd.|||||contract||
||Ltd||||||

Note
The Company rented office building of 19Floor in Jinghua Building, Jihua Road, Foshan from Foshan Huaxin Development Co., Ltd. for handling official business.
(4) Information of related-party guarantee
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||Whether the|
|Guarantor|Secured party|Guarantee amount|Initial date|Due date|guarantee was|
||||||accomplished or not|
||Zhuhai S.E.Z.|||||
|The Company|Hongta Renheng|10,000|20 Jan.2012|20 Jan. 2014|No|
||Paper Co., Ltd.|||||
||Zhuhai S.E.Z.|||||
|The Company|Hongta Renheng|33,000.00|27 Mar. 2012|27 Mar. 2015|No|
||Paper Co., Ltd.|||||
||Zhuhai S.E.Z.|||||
|The Company|Hongta Renheng|10,000.00|23 May 2013|22 May 2014|No|
||Paper Co., Ltd.|||||
||Zhuhai S.E.Z.|||||
|The Company||15,000.00|17 Oct. 2012|31 Dec. 2014|No|
||Hongta Renheng|||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||||
|-|-|-|-|-|-|
||Paper Co., Ltd.|||||
||Zhuhai S.E.Z.|||||
|The Company|Hongta Renheng|20,000.00|24 Aug. 2012|23 Aug. 2014|No|
||Paper Co., Ltd.|||||
||Foshan chengtong|||||
|The Company||5,000.00|08 Nov. 2013|07 Nov. 2014|No|
||paper Co.,Ltd.|||||
||Foshan chengtong|||||
|The Company||4,000.00|01 Jan. 2010|31 Dec. 2013|yes|
||paper Co.,Ltd.|||||
||Zhuhai Huafeng|||||
|The Company||30,000.00|29 Oct. 2013|28 Oct. 2016|No|
||Paper Co., Ltd.|||||
||Huaxin (Foshan)|||||
|The Company|color printing Co,.|9,000|01 Jan. 2010|31 Dec. 2013|yes|
||Ltd.|||||
|Zhuhai S.E.Z.||||||
||Zhuhai Huafeng|||||
|Hongta Renheng||12,000.00|7 Feb. 2013|7 Feb. 2016|No|
||Paper Co., Ltd.|||||
|Paper Co., Ltd.||||||
|China National||||||
|Paper-Industry|The Company|12,000.00|17 Apr. 2013|17 Apr. 2016|No|
|Investment Corp.||||||
|China National|Zhuhai S.E.Z.|||||
|Paper-Industry|Hongta Renheng|33,000.00|16 Nov. 2011|15 Nov. 2014|No|
|Investment Corp.|Paper Co., Ltd.|||||

Note
(5) Related-party call loan
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Related party|Amount of call loan|Initial date|Due date|Note|
|Loan from banks and other financial institutions|||||
|||||In accordance with the|
|||||Loan Contract signed by|
|||||the Company with|
|||||Foshan Huaxin|
|||||Development Co., Ltd.,|
|Foshan Huaxin||||the balance of loans of|
||418,750,000.00|30 Mar. 2010|24 Mar. 2015||
|Development Co., Ltd.||||the Company borrowed|
|||||from Foshan Huaxin|
|||||Development Co., Ltd.|
|||||was RMB 2,000,000.00,|
|||||and the interest rate was|
|||||decided by the capital|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||
|-|
|costs of the lender, and|
|the Company paid a total|
|interest of RMB|
|5,267,391.40 for the loan|
|in the reporting period.|
|On 9 Mar. 2010, the two|
|parties signed the|
|Agreement on the Usage|
|of Internal Entrusted|
|Loans of Capital of|
|Medium Term Notes,|
|with stipulated service|
|term of about 5 years and|
|maturity date as 24 Mar.|
|2015. If an investor|
|chooses to execute|
|home-sales option, the|
|maturity date of medium|
|term notes of Y2010 in|
|home-sales part would be|
|24 Mar. 2013, with|
|interest rate of 4.8%.|
|With the adoption of|
|annually calculated|
|simple interest, interest|
|per year would be paid|
|once a year to China|
|Chengtong Holding|
|Group Co., Ltd., which|
|would uniformly fulfill|
|external payments for|
|interest. In Mar. 2010|
|the Company had|
|received the amount of|
|medium-term notes 500|
|million, pay interest|
|RMB 24,333,333.33 in|
|2011, RMB|
|24,400,000.00 in 2012|
|and RMB 21,234,999.99|
|in 2013. In Mar. 2013,|
|part of the investors|
|‗ total amount of RMB|
|81.25 million had|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
||conducted back sell|
||option that on 24 Mar.|
||2013 the Company had|
||paid the loan principal of|
||RMB 81.25 million to|
||China Chengtong|
||Holdings Group Co., Ltd.|
|Lending to banks and other financial institutions||

(6). Related-party asset transfer and debt restructuring
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||||Reporting period||Same period of last year||
||||||Proportio||Proportio|
|||Content of|Pricing principleof related-partytransactions||n in||n in|
|Related party|Type|related-party|||transactio||transactio|
|||||Amount||Amount||
|||transaction|||ns of the||ns of the|
||||||same kind||same kind|
||||||(%)||(%)|

（7）Other related party transactions
Remuneration of key management staffs
Unit: RMB Ten Thousand
|||
|-|-|
|Item|Reporting period|
|Director|34.00|
|General Manager/ Vice General Manager|440.31|
|Supervisor|64.13|
|Total|538.44|

(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 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. 2013, outstanding of deposits of the Company in Chengtong Financial Co., Ltd was RMB 135,941,750.11 and loan balance was RMB 30,000,000.00.
(3) According to the 2013
4th
meeting of
5th
board of directors on 28 June, 2013, the Related Transaction Bill of
Purchasing Stock Rights of Huaxin (Foshan) Color Printing Co., Ltd Owned by Dragon State International Co.,
Ltd has been reviewed and planned to purchase the25% stock rights of Huaxin (Foshan) Color Printing Co., Ltd
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. owned by Dragon State International Co., Ltd by the Company. Base date of share transfer agreement was 30 June, 2013. The transfer price was RMB 199,450,300 of the net assets evaluated by Huaxin (Foshan) Color Printing Co., Ltd for reference. Both Parties agree to transfer25% stock rights with RMB 49,862,600. Alternation of stock rights should be completed in September, 2013. In October, 2013, the Company has paid RMB 49,862,600 for share acquisition.
6. Accounts receivable from and payable to related parties
Accounts receivable from related parties for the Company
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Period-end||Period-begin||
|Item|Related party||Provision for bad||Provision for bad|
|||Book balance||Book balance||
||||debts||debts|
|Accounts receivable||||||
||Guangdong Guanhao|||||
|||548,407.00||||
||High-tech Co., Ltd.|||||
||Yueyang Forest &|||||
|||9,112.56||279,359.40||
||Paper Co., Ltd.|||||
||Yueyang Antai|||||
|||105,302.10||||
||industrial Co., Ltd|||||
||Guangdong|||||
|Other accounts receivable|Chengtong Logistics|774,552.14||14,180.52||
||Co., Ltd.|||||
||China National|||||
||Paper-industry|||||
|||94,575.18||||
||Investment|||||
||Corporation|||||
||Foshan Huaxin|||||
|Prepayment|Import & Export Co.,|||739,669.42||
||Ltd.|||||
||China National|||||
||Paper-industry|||||
|||37,687,939.04||11,978,711.89||
||Investment|||||
||Corporation|||||
||Tianjin Port Free|||||
||Trade Zone Zhongwu|||||
||Investment|10,846,922.22||||
||Development Co.,|||||
||Ltd.|||||

Accounts payable to related parties for the Company
Unit: RMB Yuan
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|Item|Related party|Closing amount|Opening amount|
|Accounts payable||||
||Foshan Huaxin Import &|||
|||755,289.22|4,027,649.29|
||Export Co., Ltd.|||
||China National Paper-industry|||
|||111,529.20|6,163,162.17|
||Investment Corporation|||
||Guangdong Guanhao|||
|||73,497.75||
||High-tech Co., Ltd.|||
||Tianjin Port Free Trade Zone|||
||Zhongwu Investment||8,417,209.78|
||Development Co., Ltd.|||
||Guangdong Guanhao|||
|||4,452.00||
||High-tech Co., Ltd.|||
|Other accounts payable||||
||Foshan Huaxin Development|||
||||11,756,255.21|
||Co., Ltd.|||
||Guangdong Chengtong|||
|||141,967.29|156,204.46|
||Logistics Co., Ltd.|||
||Guangdong Chengtong|||
|||164,247.77|164,247.77|
||Logistics Co., Ltd.|||
||Guangdong Chengtong|||
|||300,000.00|300,000.00|
||Logistics Co., Ltd.|||
||China National Paper-industry|||
|||173,750.00||
||Investment Corporation|||
|Long-term amount payable||||
||China Chengtong Holding|||
|||418,750,000.00|500,000,000.00|
||Group Co., Ltd.|||
|Interest payable||||
||China Chengtong Holding|||
|||16,501,666.70|19,266,666.71|
||Group Co., Ltd.|||

IX. Contingency
1. Contingent liabilities and its financial effect arising from unsettled litigation or arbitration
1. As at the year-end, Guangdong Regall Group Co., Ltd. (hereinafter referred to as―RegallGroup‖) 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―HongtaRenheng‖) (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,
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 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.
2. 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.
3. 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. 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.
4. 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.
5. 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 withdrawn50% bad debt provision for the said account receivable.
6. 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. Hongta Renheng withdrew50% bad debt provision for the said account receivable in 2010. Up until the balance sheet date, there were no properties to execute the judgment, so it
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. withdrew100% bad debt provision for the said account receivable at period-end.
7. Until the end of the period, 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. 2013, payment balances receivable involved in the lawsuits should be RMB 11,479,500.49 and withdrawn bad-debt provision was RMB 968,655.27. Net value receivable should be RMB 10,510,845.22, thereinto: payment for goods of RMB 1,800,669.21 from Jiangsu Wangda Paper Package Co., Ltd, with 1-2 years age schedule, RMB 180,066.92 for withdrawn bad-debt provision and RMB 1,620,602.29 for net value receivable; payment for goods of RMB 9,678,831.28 from DongguanHong‘an Paper Package Co., Ltd with RMB 788,588.35 of withdrawn bad-debt provision and RMB 8,890,242.93 for net value receivable; thereinto: payments of RMB 3,585,895.58 with 4-12 months age schedule, RMB 483,941.56 for withdrawn bad-debt provision and RMB 3,406,600.80 for net value receivable; payments of RMB 6,092,935.70 with 1-2 years age schedule, RMB 609,293.57 for withdrawn bad-debt provision and RMB 5,483,642.13 for net value receivable. Until 31 Dec. 2013, 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 awaits for execution.
2. Contingent liabilities and its financial effect arising from loan guarantee offered to other companies The Company had no contingent liabilities due to theCompany‘s provision of guarantees for other entities. Other contingent liabilities and its financial effect:
As to 31 Dec. 2013, for the Company and its subsidiaries, undue bank acceptance bills with endorsement valued RMB 486,510,449.50, with the mature dates between Jan.-Jun. 2014. And there were no undue bank acceptance bills which had been discounted at period-end.
X. Commitments
1. Significant commitments
Commitments on capital expenditures
1. On December 20, 2012, t theCompany‘s sub-subsidiary Zhuhai Jinji Chemicals Co., Ltd. signed a Contract on purchasing a batch of pressure vessel for Rubber Latex Phase II Project with Zhongshan Vessels Manufacture Co., Ltd., with the total contract price of RMB 5,950,000.00. Up to 31 Dec. 2013, it had paid RMB 2,677,500.00, and the equipment had arrived.
2. In Nov, 2012 theCompany‘s sub-subsidiary Zhuhai Jinji Chemicals Co., Ltd. signed two contracts on the infrastructure project for the Rubber Latex phase II project with Huizhou Dongjiang Construction& Installation
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Engineering Co., Ltd. with the total contract prices of RMB 5,752,529.39 and RMB 4,472,897.25 respectively. Up to 31 Dec. 2013, the Company had paid the engineering payment RMB 5,190,000.00. The contract has not yet been fulfilled.
3. In Dec, 2012 theCompany‘s sub-subsidiary Zhuhai Huafeng Co., Ltd. signed a contract on new temporary pulp board warehouse construction with The Basic Construction Group Co., Ltd. with the total contract prices of RMB 26,339,129.18 Up to 31 Dec. 2013; the Company had paid the engineering payment RMB 2,500,000.00. The contract has not yet been fulfilled.
2. Fulfillment of previous commitments
The Company has no previous commitments need to disclose.
XI. Events after the Balance Sheet Date
1. Notes of significant events after the Balance Sheet Date
Unit：RMB Yuan
|||||
|-|-|-|-|
|||Impact on the financial position|Reasons of inestimable|
|Item|Content|||
|||and operating results|influence|

2. Explanation on profit distribution after the balance sheet date
Unit：RMB Yuan 3. Explanation on other events after the balance sheet date
1. TheCompany‘s subsidiary, Foshan Chengtong Paper Co., Ltd, received Letter of Coordination of Foshan Chancheng North City Plan Implementation, Transformation and Upgrading by FoshanPeople‘s Government (FFBH No.[2014]91). TheCompany‘s production land has been listed in the plans of North City transformation and upgrading. The current industrial structure does not comply with city planning requirements. The Company is required to implement the enterprise relocation plan promptly.
2. The Company has signed Share Transfer Agreement with China Paper Corporation on January 23, 2014, which plans to transfer the20% stock rights of Chengtong Financial Co., Ltd owned by China Paper Corporation. According to Assets Evaluation Report of Transferring20% Stock Rights of Chengtong Financial Co., Ltd Owned by China Paper Corporation (Report No.: ZZPB[2013]245), until June 30, 2013, net asset evaluated by Chengtong Financial Co., Ltd was RMB 1,157,250,800. According to above assessed values, the agreed price of transferring equity was RMB 231,450,200. The Company has paid the stock right transferring price for the 1st phase of RMB 69,435,100. Until this report date, the stock right assigning is still in advancing.
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. XII. Notes of other significant events
1．Exchange of non-monetary assets
2．Debt restructuring
3．Business merger
4．Lease
Assets leased by the Company are as follows:
|||
|-|-|
|Type of assets leased through operating lease|Book value as at year-end|
|Houses and buildings|16,380,804.64|
|Total|16,380,804.64|

5． Financial instruments public outside and can be converted into shares in the end of the period 6. Assets and liabilities measured at fair value
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Gain/loss from|Accumulative|Impairment||
|Item|Opening balance|change in fair value|change in fair value|provision for this|Closing balance|
|||in this year|recorded into equity|year||
|Financial assets||||||
|3. Financial assets||||||
||3,400,433.40||1,462,187.44||4,862,620.84|
|available for sale||||||
|Subtotal of financial||||||
||3,400,433.40||||4,862,620.84|
|assets||||||
|Total of the above||||||
||3,400,433.40||1,462,187.44||4,862,620.84|
|mentioned||||||
|Financial liabilities|0.00||||0.00|

 7.
Financial assets and liabilities of foreign currency
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Gain/loss from|Accumulative|Impairment||
|Item|Opening balance|change in fair value|change in fair value|provision for this|Closing balance|
|||in this year|recorded into equity|year||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|Financial assets|||
|3. Loans and accounts|||
||109,506,613.46|74,964,330.06|
|receivable|||
|Subtotal of financial|||
||109,506,613.46|74,964,330.06|
|assets|||
|Financial liabilities|81,752,541.19|91,453,500.00|

 8. Main content of the pension plan and the significant changes
9. Other
1. In accordance with the Resolutions Made at the
1st
Session of the
5th
Board of Directors of the Company on 18 Apr. 2013, the 2013 Annual Profits Distribution Plan was reviewed and approved at the 2012 AnnualShareholders‘ General Meeting on 15 May 2013, with details as follows: Based on the total share capital of 505,425,000 shares as at 31 Dec. 2012, a cash dividend of RMB 1 (tax included) will be distributed for every 10 shares, representing a total dividend of RMB 50,542,500.
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. According to the 2013
4th
meeting of
5th
board of directors on 28 June, 2013, the Related Transaction Bill of Purchasing Stock Rights of Huaxin (Foshan) Color Printing Co., Ltd Owned by Dragon State International Co., Ltd has been reviewed and planned to purchase the25% stock rights of Huaxin (Foshan) Color Printing Co., Ltd owned by Dragon State International Co., Ltd by the Company. Base date of share transfer agreement was 30 June, 2013. The transfer price was RMB 199,450,300 of the net assets evaluated by Huaxin (Foshan) Color Printing Co.,
Ltd for reference. Both Parties agree to transfer25% stock rights with RMB 49,862,600. Alternation of stock
rights should be completed in September, 2013. In October, 2013, the Company has paid RMB 49,862,600 for
share acquisition. After stock right transferring, Huaxin (Foshan) Color Printing Co., Ltd would be the
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. wholly-owned subsidiary of the Company.
5. According to the replies of feedback forms (QFBBWFKB No. 2013-489) of Foshan ChanchengPeople‘s Government, the Company and Foshan Chancheng Land Reserve Center signed the Protocol of Foshan Chancheng State Owned Land Use Rights Reserve (FCTBXZ No.（2013)9) (hereinafter referred to as Protocol), which incorporated the use right of state owned land next to the west of Gangkou Road No. 13 into government land reserve. Profitsdeserved= land reservecompensation+ encouraging industry upgrading and supporting fund, thereinto, land reserve compensation should be30% of land cost deducted special funds, which should be paid by Foshan Chancheng Land Reserve Center to the Company; and encouraging industry upgrading and supporting fund should be paid by Three Old Transformation Services Center to the Company. According to the evaluation by Foshan Zhengyuan Land and Real Estate Assessment Corporation, assessment price of the land is RMB 191,419,000. Calculated by the RMB 191,419,000, Yuehuabao could receive earnings of RMB 81,350,000. The compensation amount should be paid by two stages. After transferring land use certificate and the land, Land Reserve Center would pay the compensation of RMB 40,680,000 for the first stage before December 31, 2013 and other compensations within one year after transferring the land. The Company has transferred the original copy of land use certification and land management agreement to Foshan Chancheng Land Reserve Center on December 30, 2013 and received the land compensation of RMB 40,680,000 for the first stage on the same day. On January 14, 2014, the land has assigned to Foshan Chencheng Land Reserve Center.
6.The Company entered into the Joint Venture Agreement with STORAENSO PACKAGING BOARDS ASIAOY (hereinafter referred to as―StoraEnso‖) on 28 Oct. 2005, in which the both purchased the assets of Foshan Huafeng Paper Co., Ltd. Zhuhai Branch Company (Foshan Huafeng Paper Co., Ltd. is now renamed as Zhuhai Huafeng Paper Co., Ltd, and hereinafter referred to as Zhuhai Huafeng for short), the sub-subsidiary company of the Company, at the price of RMB 710,265,723.03, and together set up a joint venture company, namely STORAENSO HUAXIN (ZHUHAI) PACKAGING PAPER LTD., through assets merger. The said joint venturecompany‘s total investment amount was USD 98 million with registered capital of USD 49 million as well as operating duration of 50 years. Of which, the Company invested in USD 9.8 million, STORAENSO PACKAGING BOARDS ASIAOY invested in USD 39.2 million.. As approved by Department of Foreign Trade and Economic Cooperation of Guangdong Province with YWJMZ Zi[2005] No. 673, the joint venture company has obtained certificate of approval for foreign-funded enterprise with SWZYHZZ Zi[2005] No. 0043. Owing to the said purchase, Foshan Huafeng Paper Co., Ltd. Zhuhai BranchCompany‘s project on production expansion of 300,000-ton high-class coated white board at place out of Zhuhai under construction was changed into project on production of liquid package paper board with production scale of 300,000 tons. However, the Company had a notice from STORAENSO PACKAGING BOARDS ASIAOY on 29 Nov. 2005, in which STORAENSO PACKAGING BOARDS ASIAOY decided to give up the said investment and refuse handle the procedure related with enterprise corporate business license of joint-venture company because rate of return on profit from project on liquid package paper board was no all idealization, as a result, the Assets Transfer Agreement failed to be continued to carry out, as well as significant economic losses to Zhuhai Huafeng. Unilateral statistics from Zhuhai Huafeng Paper Co., Ltd., such economic losses totaled to about RMB 58 million, including expense on rebuilding, claim on customer or vendor, engineering management expense during rebuilding, salary for staffs and project interests during the delay period. Due to unilateral termination of the cooperation from STORAENSO PACKAGING BOARDS ASIAOY, in accordance with the Clause 22.1 and 22.2 in the Agreement,―if any part in the Joint Venture Agreement fails to implement any obligation under theAgreement…, the said party shall be regard that it violate thisagreement‖, STORAENSO PACKAGING BOARDS ASIAOY―shall undertake duties for direct and real loss (excluding indirect) for abiding party due to its breach ofcontract.‖
The Company considered that STORAENSO Huaxin (Zhuhai) Packaging Paper Ltd. failed to be established due
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. to unilateral termination of the cooperation from STORAENSO PACKAGING BOARDS ASIAOY, resulting in a great of cost put into the project of coated white board in Zhuhai by the Company, for which the Company take proceedings against STORAENSO PACKAGING BOARDS ASIAOY for loss to the Company, in order to safeguard the legal rights of Zhuhai Huafeng Paper Co., Ltd.. The said dispute case on agreement transfer has been accepted by Zhuhai Intermediate Court on 20 Aug. 2007.
On 25 Jun. 2010, the verdict in the Civil Ruling Paper (2007 ZZFMSC Zi No.52) from the Guangdong Zhuhai Intermediate People's Court was made and the content is mainly as follows:
(1) The defendant Stora Enso shall pay for increased cost due to project reconstruction and claims for compensation totaling RMB 1,711,000 to the accuser Foshan Huafeng Paper Co., Ltd within 10 days since this verdict is legally effective; as for the amount that has not occurred in reality, the Court shall not decide for this case and the accuser may claim it by other legal means;
(2) The defendant Stora Enso shall pay for engineering management expense and wage for staff as well as other salary and engineering interest due to project reconstruction and claims for compensation totaling RMB 21,486,695.04 to the accuser Foshan Huafeng Paper Co., Ltd within 10 days since this verdict is legally effective; (3) As for the court acceptance fee of RMB 331,291 and auditing expense of RMB 67,500, Foshan Huafeng Paper Co., Ltd shall pay RMB 206,743 and Stora Enso Packing Boards Asia Oy shall pay RMB 191,848.
Both the accuser Foshan Huafeng Paper Co., Ltd and the defendant Stora Enso Packing Boards Asia Oy appealed to the Guangdong HigherPeople‘s Court. In Dec. 2010, Zhuhai Huafeng received the Notice of Judging Appeal from the Guangdong HigherPeople‘s Court, informing that the Court would form a collegiate bench to try the case.
On 19 Jun. 2013, the paper of Civil Judgment from Guangdong HighPeople‘s Court (2010) Y-G-F-M-S-Z-Z No. 238 made the judgment with the main contents as follows:
(1) Stora Enso shall pay for increased cost due to project reconstruction and claims for compensation totaling RMB 223,000.00 to Zhuhai Huafeng Paper Co., Ltd within 10 days since this verdict is legally effective;
(2) Stora Enso shall pay for the project management charge, personnel wages other wages and project interest due to project reconstruction from 12 Aug. 2005 to 31 Jan. 2006 of RMB 20,296,247.44 to Zhuhai Huafeng Paper Co., Ltd within 10 days since this verdict is legally effective.
The litigation fees of first instance was of RMB 331,291.00 and the audit fess of RMB 67,500.00, which Zhuhai Huafeng would encumbrance of RMB 252,611.00 and Stora Enso of RMB 146,180.00. The litigation fees of second instance was of RMB 211,425.02, which Stora Enso would encumbrance of RMB 139,569.94 and Zhuhai Huafeng of RMB 71,855.08.
On 19 Aug. 2013, Zhuhai Huafeng and Stora Enso signed the settlement agreement; Zhuhai Huafeng agreed and Stora Enso will sign on the settlement agreement and shall pay for RMB 20,519,247.44 to Zhuhai Huafeng Company within 10 days since the RMB Court with enforcement jurisdiction provides the relevant bank account information for Stora Enso, so the sum would serve as the completely settlement of the relevant fees referred to in the verdict that Stora Enso should pay for Zhuhai Huafeng.
On 29 Oct. 2013, notice of the settlement from Guangdong Zhuhai Intermediate People's Court (2013) Z-Z-F-Z-Z No. 541 arrived to Zhuhai Huafeng with the main content as follows: Zhuhai IntermediatePeople‘s Court sent the execution notice to the person subject to enforcement--Stora Enso. After its execution accounts of USD 3,339,997.50 exchanged into RMB of 20,346,381.54, the IntermediatePeople‘s Court deducted the execution fees of RMB 87,415.00 and the rest accounts of RMB 20,258,966.54 would remit to the assigned account of Zhuhai Huafeng. So far, thecreditors‘ rights claimed by Zhuhai Huafeng which according to the paper of Civil Judgment
2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. (2010) Y-G-F-M-S-Z-Z No.238 had already realized and the executive lawsuit closed.
5 Nov. 2013, Zhuhai Huafeng received the execution lawsuit account of RMB 20,258,966.54 remitted by Guangdong Zhuhai IntermediatePeople‘s Court that Stora Enso paid according to the settlement agreement. XIII. Notes of main items in the financial statements of the Company
1. Accounts receivable
(1) Accounts receivable
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing balance||||Opening balance||||
||Book balance||Provision for bad debts||Book balance||Provision for bad debts||
|Category|||||||||
|||Propo|||||||
|||||Proporti||Proporti||Proporti|
||Amount|rtion|Amount||Amount||Amount||
|||||on (%)||on (%)||on (%)|
|||(%)|||||||
|Accounts receivable for which bad debt provisions are made on the group basis|||||||||
|Group 1-Unit group|||||||||
|included into the|||||||||
||51,991.20|100%|||8,630,545.13|100%|||
|consolidated financial|||||||||
|statements|||||||||
|Subtotal of the groups|51,991.20|100%|||8,630,545.13|100%|||
|Total|51,991.20|--||--|8,630,545.13|--||--|

 Notes to category of accounts receivable:
Accounts receivable with significant single amount and individually withdrawn bad debt provision at period-end
□ Applicable√Inapplicable
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable□ Inapplicable
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
||Book balance|||Book balance|||
|Aging|||Provision for bad|||Provision for bad|
|||Proporti|||Proporti||
||Amount||debts|Amount||debts|
|||on (%)|||on (%)||
|Within 1 year|||||||
|Including:|--|--|--|--|--|--|
|Within 1 year|||||||
||51,991.20|100%||8,630,545.13|100%||
|(including 1|||||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|year)|||||
|Subtotal of|||||
||51,991.20|100%|8,630,545.13|100%|
|within 1 year|||||
|Total|51,991.20|--|8,630,545.13|--|

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
□Applicable√Inapplicable
Other closing individually insignificant but provisions for bad debts individually accounts receivable:
□Applicable√Inapplicable
(2) Accounts receivable reversed or collected in the reporting period
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Recognition basis of|Reversed or collected||
|Content of accounts|Reversed or collected|||Reversed or collected|
|||original bad debt|amount of the accrued||
|receivable|reason|||amount|
|||provision|bad debt provision||

The withdrawal of bad debt provision of accounts receivable with significant single amount or insignificant single amount but individually made impairment test at the end of reporting period:
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Content of accounts|||Withdrawal proportion||
||Book balance|Bad debt balance||Reason|
|receivable|||(%)||

Explanation of the accounts receivable with insignificant single amount but with higher risk according to the credit risks feature combination
(3) Actual write-off accounts receivable during the reporting period
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||Whether occurred|
||Nature of account|||||
|Name of entity||Write-off date|Write-off amount|Reason|owning to the related|
||receivable|||||
||||||transaction|

 Explanation of write-off accounts receivable
(4) Accounts receivable due to shareholders holding5% (including5%) voting rights of the Company Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Name of entity||Amount of bad debt||Amount of bad debt|
||Book balance||Book balance||
|||provision||provision|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. (5) Nature or content of the other large amount of accounts receivable
(6) Information of top 5 accounts receivable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||||Proportion in the total|
||The relationship with the||||
|Name of entity||Amount|Aging|amount of accounts|
||Company||||
|||||receivable (%)|
|Tetra Packaging|||||
||Non-related party|51,991.20|Within 3 months|100%|
|(Kunshan) Co., Ltd.|||||
|Total|--|51,991.20|--|100%|

 (7) Accounts receivable due from accounts receivable
Unit: RMB Yuan
|||||
|-|-|-|-|
||The relationship with theCompany||Proportion in the total amount of|
|Name of entity||Amount||
||||accounts receivable (%)|

 (8)
The transformation amount which not meet with the ultimate confirm condition was of RMB.
(9) Securitization is carried out on accounts receivable as the underlying assets, should describe briefly of the relevant transaction arrangement
2. Other accounts receivable
(1) Other accounts receivable
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing balance||||Opening balance||||
||||||||Provision for bad||
||Book balance||Provision for bad debts||Book balance||||
||||||||debts||
|Category|||||||||
|||Propo||Propo||Propo||Propo|
||Amount|rtion|Amount|rtion|Amount|rtion|Amount|rtion|
|||(%)||(%)||(%)||(%)|
|Other accounts receivable that provisions for bad debts by group|||||||||
|Group 1—Consolidate||97.59||||99.99|||
||1,648,679,453.73||||1,433,828,471.24||||
|statements unit||%||||%|||
|Group 1—Aging analysis|||||||||
||40,699,614.00|2.41%|||100,034.20|0.01%|||
|method|||||||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|Subtotal of the groups|1,689,379,067.73|100%||1,433,928,505.44|100%||
|Total|1,689,379,067.73 -|-|--|1,433,928,505.44|--|--|

 Notes for categories of other accounts receivable:
In the group, other accounts receivable that provision for bad debts by other analysis:
|||
|-|-|
|Name of groups|Book balance|
|Group —Consolidate statements unit|1,648,679,453.73|
|Total|1,648,679,453.73|

Other closing accounts receivable that is individually significant and provisions for bad debts individually
□Applicable√Inapplicable
In the group, other accounts receivable that provision for bad debts by aging analysis:
√Applicable□Inapplicable
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
||Book balance|||Book balance|||
|Aging|||Provision for bad|||Provision for bad|
|||Proporti|||Proporti||
||Amount||debts|Amount||debts|
|||on (%)|||on (%)||
|Within 1 year|||||||
|Including:|--|--|--|--|--|--|
|1-3 months|167,404,100.30|9.91%||844,097,690.53|58.87%||
|4-12 months|693,018,844.49|41.02%||305,832,214.91|21.32%||
|Subtotal of|||||||
||860,422,944.79|50.93%||1,149,929,905.44|80.2%||
|within 1 year|||||||
|1-2 years|565,094,624.97|33.45%||283,005,600.00|19.74%||
|2-3 years|263,861,497.97|15.62%||993,000.00|0.07%||
|Total|1,689,379,067.73|--||1,433,928,505.44|--||

In the group, other accounts receivable that provision for bad debts by balance percentage:
□Applicable√Inapplicable
In the group, other accounts receivable that provision for bad debts by other methods:
□Applicable√Inapplicable
Other closing individually insignificant but provisions for bad debts individually accounts receivable:
□Applicable√Inapplicable
(2) Other accounts receivable reversed or collected in the reporting period
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Content of other accounts|Reason for reverse or|Basic for conforming the|Accumulated amount of|Amount of reverse or|
|receivable|collected|original bad debt|bad debt provision before|collected|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
|provision|reverse or collected|

The withdrawal of bad debt provision of other accounts receivable with significant single amount or insignificant single amount but individually made impairment test at the end of reporting period:
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Content of other|||Withdrawal proportion||
||Book value|Bad debt amount||Reason|
|accounts receivable|||(%)||

Explanation of the accounts receivable with insignificant single amount but with higher risk according to the credit risks feature combination
(3) Actual write-off other accounts receivable during the reporting period
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||Whether occurred|
||Nature of other|||||
|Name of entity||Write-off date|Write-off amount|Reason|owning to the related|
||account receivable|||||
||||||transaction|

 Notes of the write-off other accounts receivable
(4) Other accounts receivable due to shareholders holding5% (including5%) voting rights of the Company
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Name of entity||Provision for bad||Provision for bad|
||Book balance||Book balance||
|||debts||debts|

 (5) Nature or content of the large amount of other accounts receivable
||||||
|-|-|-|-|-|
|Name of entity|Therelationship with theCompany|Amount|Aging|Proportion in thetotal amount ofaccounts receivable(%)|
|Zhuhai HuafengPaper Co., Ltd.|Subsidiary|168,425,000.00|1 to 2 years|9.97|
|Foshan ChengtongPaper Co., Ltd.|Subsidiary|454,196,366.66|1 to 3 years|26.89|
|Zhuhai S.E.Z. HongtaRenheng Paper Co.,Ltd.|Subsidiary|936,811,000.00|1 to 2 years|55.45|
|Huaxin (Foshan)Color Printing Co.,|Subsidiary|89,247,087.07|Within 1 year|5.28|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
|Ltd.|||||
|Foshan ChanchengLand Reserve Center|Non-raltedcompany|40,670,000.00|1 to 3 months|2.41|
|Total||1,689,349,453.73||100|

(6) Information of top five other accounts receivable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||||Proportion in the total|
||Relationship with the||||
|Name of entity||Amount|Aging|amount of other accounts|
||Company||||
|||||receivable (%)|
|Zhuhai S.E.Z. Hongta|||1 to 2 years||
||Subsidiary|936,811,000.00||55.45%|
|Renheng Paper Co., Ltd.|||||
|Foshan Chengtong Paper|||1 to 3 years||
||Subsidiary|454,196,366.66||26.89%|
|Co., Ltd.|||||
|Zhuhai Huafeng Paper|||1 to 2 years||
||Subsidiary|168,425,000.00||9.97%|
|Co., Ltd.|||||
|Huaxin (Foshan) Color|||Within 1 year||
||Subsidiary|89,247,087.07||5.28%|
|Printing Co., Ltd.|||||
|Foshan Chancheng Land|||1 to 3 months||
||Non-ralted company|40,670,000.00||2.41%|
|Reserve Center|||||
|Total|--|1,689,349,453.73|--|100%|

 (7) Other account receivable due from related parties
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Proportion in the total amount of|
|Name of entity|Relationship with the Company|Amount||
||||other accounts receivable (%)|
|Zhuhai Huafeng Paper Co.,||||
||Subsidiary|168,425,000.00|9.97%|
|Ltd.||||
|Foshan Chengtong Paper Co.,||||
||Subsidiary|454,196,366.66|26.89%|
|Ltd.||||
|Zhuhai S.E.Z. Hongta||||
||Subsidiary|936,811,000.00|55.45%|
|Renheng Paper Co., Ltd.||||
|Huaxin (Foshan) Color||||
||Subsidiary|89,247,087.07|5.28%|
|Printing Co., Ltd.||||
|Total|--|1,648,679,453.73|97.59%|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. (8)
The transformation amount which not meet with the ultimate confirm condition was of RMB.
(9) Securitization is carried out on other accounts receivable as the underlying assets, should describe briefly of the relevant transaction arrangement
3. Long-term equity investment
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Explanati||||
|||||||||on for||||
|||||||||indifferen||||
|||||||||||Withdraw||
|||||||||ces||||
|||||||Share||||n||
||||||||Voting|between|||Cash|
|||||||holding||||impairme||
||Accounti|Initial|||||percentag|the share|Impairme||bonus in|
||||Opening|Increase/d|Closing|percentag||||nt||
|Investee|ng|investmen|||||e in|holding|nt||the|
||||balance|ecrease|balance|e in||||provision||
||method|t cost|||||investee|percentag|provision||reporting|
|||||||investee||||in the||
||||||||(%)|e and|||period|
|||||||(%)||||reporting||
|||||||||voting||||
|||||||||||period||
|||||||||percentag||||
|||||||||e in||||
|||||||||investee||||
|Huaxin||||||||||||
|(Foshan)||||||||||||
||Cost|72,674,14|72,674,14|49,862,60|122,536,7|||||||
|Color||||||100%|100%|||||
||method|5.03|5.03|0.00|45.03|||||||
|Printing||||||||||||
|Co., Ltd.||||||||||||
|Foshan||||||||||||
|Chengton|Cost|225,000,0|225,000,0||225,000,0|||||||
|||||||75%|75%|||||
|g Paper|method|00.00|00.00||00.00|||||||
|Co., Ltd.||||||||||||
|Zhuhai||||||||||||
|S.E.Z.||||||||||||
|Hongta|Cost|927,570,6|927,570,6||927,570,6|||||||
|||||||41.97%|41.97%|||||
|Renheng|method|97.11|97.11||97.11|||||||
|Paper||||||||||||
|Co., Ltd.||||||||||||
|Kunshan||||||||||||
|Focai||||||||||||
||Cost|5,000,000|5,000,000||5,000,000|||||||
|Package||||||100%|100%|||||
||method|.00|.00||.00|||||||
|Printing||||||||||||
|Co., Ltd.||||||||||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|||1,230,244|1,230,244|49,862,60|1,280,107||||
|Total|--|||||--|--|--|
|||,842.14|,842.14|0.00|,442.14||||

Explanation on long-term equity investment:
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 2013.
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 Huaxin (Foshan) Color Printing Co., Ltd. Owned by Longbon International 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 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.
4. Revenue and Cost of Sales
(1) Revenue of Sales
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Revenue from main business|153,119,961.48|7,376,534.28|
|Revenue from other business|70,175,358.60|70,175,438.60|
|Total|223,295,320.08|77,551,972.88|
|Cost of sales|153,119,961.48|7,376,534.29|

 (2) Main business (classified by industry)
Unit: RMB Yuan
||||
|-|-|-|
|Name of industry|Reporting period|Same period of last year|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||||
|-|-|-|-|-|
||Revenue of sales|Cost of sales|Revenue of sales|Cost of sales|
|(1) Industry|153,119,961.48|153,119,961.48|7,376,534.28|7,376,534.29|
|Total|153,119,961.48|153,119,961.48|7,376,534.28|7,376,534.29|

 (3) Main business (classified by products)
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Reporting period||Same period of last year||
|Name of product|||||
||Revenue of sales|Cost of sales|Revenue of sales|Cost of sales|
|Liquid packaging paper|153,119,961.48|153,119,961.48|7,376,534.28|7,376,534.29|
|Total|153,119,961.48|153,119,961.48|7,376,534.28|7,376,534.29|

 (4) Main business (classified by area)
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Reporting period||Same period of last year||
|Name of area|||||
||Revenue of sales|Cost of sales|Revenue of sales|Cost of sales|
|Domestic sales|153,119,961.48|153,119,961.48|7,376,534.28|7,376,534.29|
|Total|153,119,961.48|153,119,961.48|7,376,534.28|7,376,534.29|

 (5) Revenue of sales of the top five customers
Unit: RMB Yuan
||||
|-|-|-|
|||Proportion in total|
|Name of customer|Total amount of revenue of sales|amount of revenue of|
|||sales (%)|
|Top five customers|153,119,961.48|100%|
|Total|153,119,961.48|100%|

 Notes to revenue of sales
5. Investment income
(1) List of investment income
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Long-term equity investment income accounted by cost|||
|||30,918,655.65|
|method|||
|Long-term equity investment income accounted by equity||50,618,539.07|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||
|-|-|
|method||
|Investment income arising from disposal of long-term equity||
||280,258,717.64|
|investments||
|Total|361,795,912.36|

 (2) Long-term equity investment income accounted by cost method
Unit: RMB Yuan
|||||
|-|-|-|-|
|||Same period of last||
|Name of investee|Reporting period||Reason for increase/decrease YoY|
|||year||
|Zhuhai S.E.Z. Hongta Renheng Paper Co.,||||
|||30,918,655.65|No dividends distributed in the year|
|Ltd.||||
|Total||30,918,655.65|--|

(3) Long-term equity investment income accounted by equity method
Unit: RMB Yuan
|||||
|-|-|-|-|
|||Same period of last||
|Name of investee|Reporting period||Reason for increase/decrease YoY|
|||year||
|Tetra Huaxin (Foshan) Packaging Co., Ltd.||50,681,539.07|Equity transferred in last year|
|Total||50,681,539.07|--|

Note to the equity investment
6. Supplemental information of Cash Flow Statement
Unit: RMB Yuan
||||
|-|-|-|
|Supplemental information|Reporting period|Same period of last year|
|1. Reconciliation of net profit to net cash flows generated from|||
||--|--|
|operations：|||
|Net profit|89,030,287.11|363,476,588.99|
|Depreciation of fixed assets, oil and gas assets and productive|||
||228,541.27|661,304.91|
|biological assets|||
|Amortization of intangible assets|976,614.42|149,202.98|
|Losses/gains on disposal of fixed assets, intangible asset and other|||
||-50,221,175.80|45,257.00|
|long-term assets (gains: negative)|||
|Financial cost (income: negative)|73,994,942.01|63,831,132.07|
|Investment loss (gains: negative)||-361,795,912.36|
|Decrease in accounts receivable from operating activities (increase:|||
||-91,499,431.30|-420,733,620.73|
|negative)|||
|Increase in accounts payable from operating activities (decrease:|-44,999,237.41|-121,226,518.42|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
||||
|-|-|-|
|negative)|||
|Net cash flows generated from operating activities|-22,489,459.70|-475,592,565.56|
|2. Significant investing and financing activities without|||
||--|--|
|involvement of cash receipts and payments|||
|3. Change of cash and cash equivalent:|--|--|
|Closing balance of cash|45,291,203.37|225,554,664.36|
|Less: opening balance of cash|225,554,664.36|30,554,733.32|
|The net increase in cash and cash equivalents|-180,263,460.99|194,999,931.04|

 7. Recorded assets and liabilities by assessed value of counter purchase
List of recorded assets and liabilities by assessed value of counter purchase
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Confirm method of fair|Calculation process of||
|Item|Fair value|||Original book value|
|||value|fair value||

List of the long-term investment formed by counter purchase
Unit: RMB Yuan
||||
|-|-|-|
||Amount of the long-term investment|Calculation process of long-term equity|
|Item|||
||formed by counter purchase|investment|

XIV. Supplemental information
1. List of the current non-recurring gains and losses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount|Note|
|Loss and gains on disposal of non-current assets (Including|||
||51,123,921.08||
|write-off part of the provision for asset impairment)|||
|Governmental subsidy included in the current profits and losses(is|||
|closely related with the business event, except for the|||
||7,246,780||
|governmental subsidy that according to the national unity|||
|standard quota or the quantitative regal assets)|||
|Income and expenses of the other operation except for the|||
||16,236,462.91||
|mentioned above|||
|Less: the effect of income tax|12,941,980.74||
|The effect of minority interest (after tax)|13,650,510.77||
|Total|48,014,672.98|--|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. The governmental subsidy included in the current profits and losses was the recurring gains and losses that need to disclose the recognize reason term by term.
□ Applicable√ Inapplicable
2. Accounting data differences under the domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under International and Chinese accounting standards
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Net profits attributable to the shareholders of listed||Net assets attributable to the shareholders of||
||company||listed company||
||Reporting period|Same period of last year|Closing balance|Opening balance|
|Under Chinese accounting|79,060,852.74|268,480,430.68|1,729,936,978.68|1,706,059,800.96|
|standard|||||
|Item and amount adjusted under International accounting standard|||||

(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Net profits attributable to the shareholders of listed||Net assets attributable to the shareholders of||
||company||listed company||
||Reporting period|Same period of last year|Closing balance|Opening balance|
|Under Chinese accounting|79,060,852.74|268,480,430.68|1,729,936,978.68|1,706,059,800.96|
|standard|||||
|Item and amount adjusted under International accounting standard|||||

(3) Reasons for accounting data differences under the domestic and overseas accounting standards 3. Return on equity and earnings per share
Unit: RMB Yuan
|||||
|-|-|-|-|
||The weighted average ROE|EPS||
|Profit in the reporting period||||
||(%)|Basic EPS|Diluted EPS|
|Net profit attributable to the Company's||||
||4.61%|0.16|0.16|
|common stock shareholders||||
|Net profit attributable to shareholders of the||||
|Company's common stock after deducting|1.83%|0.06|0.06|
|non-recurring gains and losses||||

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. 4. Particulars on the abnormal conditions of main items in the financial statements of the Company and relevant reasons
Items of financial statements with abnormal amounts or change during the comparative period
|||||
|-|-|-|-|
|Items|Closing balance (oramount in reportingperiod)|Opening balance (oramount in same periodof last year)|Rate of change|
|Monetary funds|201,666,231.22|478,856,596.14|-57.89%|
|Notes receivable|362,998,502.84|480,257,032.09|-24.42%|
|Other accountsreceivable|66,085,747.47|29,274,074.78|125.75%|
|Inventory|780,502,680.31|1,018,382,145.92|-23.36%|
|Investment realestate|16,380,804.64|9,942,981.44|64.75%|
|Construction inprocess|113,869,930.02|79,155,016.60|43.86%|
|Intangible assets|117,213,820.33|144,128,514.79|-18.67%|
|Short-term loan|746,518,360.93|1,212,158,914.28|-38.41%|
|Notes payable|7,208,770.58|21,440,149.18|-66.38%|
|Accounts received inadvance|41,644,176.60|28,987,800.81|43.66%|
|Payroll payment|39,051,200.53|22,133,675.39|76.43%|
|Taxes payable|20,193,255.40|89,539,824.80|-77.45%|
|Dividends payable|9,732,961.09|60,563,595.31|-84%|
|Estimated liabilities|7,146,269.00|2,967,023.46|140.86%|
|Deferred income taxliabilities|3,324,001.75|5,449,332.25|-39.00%|
|Other non-currentliabilities|8,810,000.00|2,636,000.00|234.22%|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd.
|||||
|-|-|-|-|
|Financial costs|113,521,836.70|189,968,915.07|-40.24%|
|Impairment losses ofassets|17,509,847.99|26,945,309.49|-35.02%|
|Investment income|657,513.24|331,056,847.85|-99.80%|
|Non-operatingrevenue|80,729,893.58|18,151,556.67|344.75%|
|Non-operating cost|6,122,729.09|2,218,709.98|175.96%|
|Income taxesexpenses|43,552,505.99|68,830,236.76|-36.72%|

2013 Annual Report of Foshan Huaxin Packaging Co., Ltd. Section XI. 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 2013 Annual Report with the authentic signature of the Chairman of the Board of Directors. Chairman Of The Board:Tong Laiming Foshan Huaxin Packaging Co.,Ltd.. March 7, 2014