Abstract of the 2014 Semi-annual Report of Foshan Huaxin Packaging Co., Ltd. Stock code: 200986 Stock abbreviation: YHBB Announcement No.:2014-036 Foshan Huaxin Packaging Co., Ltd.
Abstract of the 2014 Semi-annual Report
1. Important reminders
This abstract is based on the full text of the semi-annual report. For more details, investors are suggested to read the full text disclosed at the same time with this abstract on http://www.cninfo.com.cn, the website of Shenzhen Stock Exchange or any other website designated by CSRC.
This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version shall prevail.
Company profile
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|Stock abbreviation|YHBB|Stock code||200986|
|Stock exchange listed with|Shenzhen Stock Exchange||||
|Contact information|Company Secretary||Securities Affairs Representative||
||Mr. Yang Yinghui||Mr. Jiang Zhuowen||
|Name|||||
|Tel.|0757-83992076||0757-83992076||
|Fax|0757-83992026||0757-83992026||
|E-mail|yyh-hxbz@chinapaper.com.cn||jzw-hxbz@chinapaper.com.cn||

2. Financial highlights and change of shareholders
（1）Financial highlights
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
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||Reporting period|Same period of last year|YoY +/-（％）|
|Operating revenues (RMB Yuan)|1,790,137,651.12|1,986,679,927.67|-9.89%|
|Net profit attributable to shareholders of|25,086,979.16|3,886,014.86||
||||545.57%|
|the Company (RMB Yuan)||||
|Net profit attributable to shareholders of||||
|the Company after extraordinary gains and|23,508,093.02|2,892,377.10|712.76%|
|losses (RMB Yuan)||||
|Net cash flows from operating activities|-219,095,767.29|410,756,479.61||
||||-153.34%|
|(RMB Yuan)||||
|Basic EPS (RMB Yuan/share)|0.05|0.008|525.00%|
|Diluted EPS (RMB Yuan/share)|0.05|0.008|525.00%|
|Weighted average ROE (%)|1.44%|0.23%|1.21%|
||As at the end of the|||
|||As at the end of last year|+/-（％）|
||reporting period|||
|Total assets (RMB Yuan)|6,600,228,199.59|5,773,266,460.61|14.32%|
|Net assets attributable to shareholders of|1,754,795,477.29|1,729,936,978.68||
||||1.44%|
|the Company (RMB Yuan)||||

（2） Shareholdings of the top 10 common shareholders
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|Total number of common|15,620|

Abstract of the 2014 Semi-annual Report of Foshan Huaxin Packaging Co., Ltd.
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|-|-|-|-|-|-|-|
|shareholders at the end of the|||||||
|reporting period|||||||
|Shareholdings of the top 10 common shareholders|||||||
||||Total shares||Pledged or frozen shares||
|Name of|Nature of|Shareholding|||||
||||held at the|Number of restricted shares held|Status of|Number of|
|shareholder|shareholder|percentage (%)|||||
||||period-end||shares|shares|
|Foshan HuaxinDevelopmentCo., Ltd.|State-ownedcorporation|65.20%|329,512,030|329,512,030|||
|Wu Haoyuan|Foreign naturalperson|0.51%|2,561,991|0|||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|Foreigncorporation|0.39%|1,990,984|0|||
|ZhanChangcheng|Domesticnatural person|0.32%|1,600,000|0|||
|Wu Fenqiang|Domesticnatural person|0.26%|1,330,000|0|||
|Foshan ChanBen DeDevelopmentCo., Ltd.|State-ownedcorporation|0.23%|1,139,420|1,139,420|||
|Zheng Heng|Domesticnatural person|0.20%|999,198|0|||
|Zhu Shijie|Domesticnatural person|0.20%|987,472|0|||
|Chen Cirou|Domesticnatural person|0.19%|963,109|0|||
|Ma Zeqi|Domesticnatural person|0.19%|959,762|0|||
|||① Foshan Chan Ben De Development Co., Ltd is equity shareholder of Foshan Huaxin|||||
|||Development Co., Ltd, the largest shareholder of the Company, and then there exists associated|||||
|||relationship among Foshan Chan Ben De Development Co., Ltd, the Company and controlling|||||
|Explanation on associated||shareholder Foshan Huaxin Development Co., Ltd.|||||
|relationship or persons acting in|||||||
|concert among the||② It is unknown to the Company whether there exists associated relationship among the|||||
|above-mentioned shareholders|||||||
|||shareholders above or they are acting-in-concert entities as stipulated in the Administrative|||||
|||Measures on Information Disclosure of Changes in Shareholding of Listed Companies.|||||
|||③ In the reporting period, the shares held by those shareholders of the Company holding over|||||
|||5% (including 5%) were not pledged or frozen.|||||
|Shareholders taking part in|||||||
|margin financing and securities||Naught|||||
|lending (if any)|||||||

（3）Shareholdings of the top 10 preferred share holders
□ Applicable√ Inapplicable
No preferred shares for the reporting period.
Abstract of the 2014 Semi-annual Report of Foshan Huaxin Packaging Co., Ltd.（4）Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable√ Inapplicable
The controlling shareholder did not change in the reporting period.
Change of the actual controller in the reporting period
□ Applicable√ Inapplicable
The actual controller did not change in the reporting period.
3. Discussion and analysis by the management
The first half of 2014 saw recovery signs of the global economy, as well as some growth of the export data of China. However, the economic growth was still slow as the global economy still faced a lot of uncertainties and the structural reform of the domestic economy deepened.
In the paper packaging industry, the packaging paper products were affected to some extent as the demand for top-grade cigarettes, liquor and the like decreased in the domestic terminal market. The market growth was restrained. Meanwhile, the centralized release of new domestic production capacity of ivory board of various varieties in the recent two years, as well as the serious market homogenization, brought unprecedented pressure upon the market. These factors posed great difficulties and challenges for the operation of the Company. On the other hand, the prices of raw materials were relatively stable in the reporting period, which helped us control costs in a better way, tap potentials and reduce consumption.
In face of the changes in the economic situation, the industry and the market, we carefully considered the situation and made good planning. We put forward the operating strategy of “innovation, transformation, optimization and development”, optimized the asset structure, and made innovations in product and service. We also carried out delicacy management and management improvement in a deep-going way, and expanded the profit room by adopting measures such as reducing costs and increasing the efficiency, transformation and upgrading. As a result, our business performance in the first half of the year improved considerably year on year.
In a certain period of the coming future, since the over-capacity of common ivory board is serious and the market competition is increasingly fierce, prices of various products are under the pressure of reduction to seize markets. In order to deal with the increasing operating challenges, we will carry forward the operating strategy of “innovation, transformation and upgrading”. Meanwhile, we will give full play to the new production capacity advantage in the Golden Pheasant Chemical Phase II 100,000-ton latex project and the Huaxin Color Printing Phase III project, proactively seize opportunities and look for new breakthroughs in the fierce market competition. 4. Matters related to financial reporting
(1) Explain change of the accounting policies, accounting estimates and measurement methods as compared with the financial reporting of last year
□ Applicable√ Inapplicable
The accounting policies, accounting estimates or measurement methods did not change in the reporting period.
(2) Explain retrospective restatement due to correction of significant accounting errors in the reporting period
□ Applicable√ Inapplicable
No correction of significant accounting errors in the reporting period.
(3) Explain change of the consolidation scope as compared with the financial reporting of last year
□ Applicable√ Inapplicable
The consolidation scope did not change in the reporting period.
Abstract of the 2014 Semi-annual Report of Foshan Huaxin Packaging Co., Ltd. (4) Explanation of the Board of Directors and the Supervisory Committee concerning the “non-standard audit report” issued by the CPAs firm for the reporting period
□ Applicable√ Inapplicable