1、 1 SHANDONG CHENMING PAPER HOLDINGS LIMITED 2002 Semi-Annual Report Important Declaration The Board of Directors and the directors of the Company guarantee that there are no significant omissions,fictitious or misleading statements carried in the Report and we will accept individual and joint respon
2、sibilities for the truthfulness,accuracy and completeness of the Report.13 directors should attend the meeting,and actually 8 attended.Mr.Wang Zhijun,Guo Xiucheng,Liu Xueyan,Zhao Jinghua voted through fax.Mr.Li Ruohe absent for business trip.his Report is written both in English and Chinese.In case
3、there exists discrepancy in understanding between the two versions,the Chinese version shall prevail.The Companys semi-annual financial report has not yet been audited.2I.Company Data Summary(I)Company Information 1.Statutory Name in Chinese:Statutory Name in English:SHANDONG CHENMING PAPER HOLDINGS
4、 LIMITED English short form:SCPH 2.Stock Exchange Listed with:Shenzhen Stock Exchange Short Form of the Stocks:Chenming Paper,Chenming B Stock Code:000488 200488 3.Registered Address and Office Address:No.595 Shencheng Rd.,Shouguang City,Shandong Province Post Code:262700 Internet Website:http:/E-ma
5、il:4.Legal Representative:Chen Hongguo 5.Secretary of the Board of Directors:HaoYun Security Affairs Representative:Wang Wei Address:Securities Department,No.595 Shencheng Rd.,Shouguang City,Shandong Province Tel.:0536 5280011 Fax:0536 5228900 6.Newspapers for Disclosing the Information:China Securi
6、ties,Hong Kong Commercial Daily Internet Website Designated by China Securities Regulatory Commission for Publishing the Annual Report:http:/The Place Where the Semi-Annual Report is Prepared and Placed:Securities Department of the Company(II)Financial Highlights T im e Items Jan to Jun,2002 Jan.to
7、Jun.,2001 Net profit(RMB)139,731,825.06 102,451,692.89 Net profit,less non-recurring losses/gains(RMB)99,456,383.18 100,119,844.76 Earnings per share(diluted,RMB/share)0.280 0.226 Earnings per share(weighted,RMB/share)0.280 0.226 Earning per share(less non-recurring losses/gains(RMB/share)0.199 0.22
8、1 Net cash flow per share arising from business activities(RMB)0.126 0.66 Net asset-income ratio(diluted%)4.213 3.28 Net asset-income ratio(weigted%)4.304 3.28 Jun.30,2002 Dec.31,2001 Net asset per share(RMB)6.650 6.369 Net asset per share after adjustment(RMB)6.568 6.307 Shareholders equity(excludi
9、ng minority equity RMB)3,316,401,390.29 3,176,669,565.23 3Note:Deducting non-recurring gain/loss items and the total involved amount:RMB 40,275,441.88:including:net amount of non-operating income and expenses:-13,523,652.96,subsidy income:RMB 1,099,200.00;amortization of equity investment balance:RM
10、B-2,085,180.21;gain/loss of entrusted investment:RMB 37,678,359.54.In the report period,the Company realized a net profit amounting to RMB 139.7318 million.However,the net profit adjusted according to the International Accounting Standards(IAS)was RMB 141.3313 million.The difference is mainly due to
11、 the fact that the international certified public accountants have:deducted the goodwill arising from the internal appraisal and the relevant amortized amount arising from the adjustment,and thus the profit increased by RMB 725 thousand;deducted the added value resulted from reappraisal of the fixed
12、 assets and the relevant VAT and thus the profit increased by RMB 874.5 thousand.At the end of the report period,the Companys net assets amounted to RMB 3,316.4014 million.The net assets adjusted according to IAS was RMB 3,308.6415 million.The resulted difference is mainly due to the fact that accor
13、ding to IAS(1)after deduction of goodwill arising from the internal appraisal and the adjustment of the relevant the amortization amount,the net assets decreased by RMB 7.25 million;(2)with the adjustment of the provision for bad debts,the net assets decreased by RMB 13.862 million;(3)after deductio
14、n of the added value arising from reappraisal of the fixed assets and the relevant income tax,the net assets decreased by RMB 16.2575 million;(4)the minority shareholders paid the surplus and thus the net assets increased by RMB 33.8766 million;(5)other decrease of the net assets amounting to RMB 4.
15、267 million.II.Change in Share Capital and Particulars about Shares Held by Principal Shareholders(I)In the report period,there was no change in total shares or stock structure.(II)At the end of the report period,there were totally 69,077 shareholders.(III)Particulars about the shares held by the pr
16、incipal shareholders Ranking Shareholders Shares at the end of period Proportion%Share type 1 Shandong Shouguang State Assets Management Bureau 156,608,584 31.40 Promoters state shares 2 KWONG WAH INVESTMENT(SHOUGUANG)LIMITED 7,273,300 1.46 B-shares 3 BTFE-NEW ERA PRC FUND 3,307,381 0.66 B-shares 4
17、Hao Yunfeng 2,475,465 0.50 Employees shares5 Deng Wenping 2,120,635 0.43 B-shares 6 TOK YEK SENG 1,970,722 0.40 B-shares 7 Huaan Innovation Securities Investment Fund 1,872,383 0.38 A-shares 8 Lin Shengmao 1,776,220 0.36 B-shares 9 Shanghai Xinglong Investment Co.,Ltd.1,574,634 0.32 Promoters domest
18、ic legal person shares 10 CHEN ZU DE 1,506,048 0.30 B-shares The shareholder holding over 5%of the Companys shares is Shangdong Shouguang Municipal State-owned Assets Administration Bureau that held 156,608,584 promoters state shares at the end of the report period.The shares held by the control sha
19、reholder had never been pledged,frozen or been in custody.There exists no business relationship among the top ten shareholders.(IV)In the report period,there had been no change in the Companys control shareholder.4III.Particulars about the Directors,Supervisors and Senior Executives(I)In the report
20、period,there was no change in the shares of the Company held by the Companys directors,supervisors and senior executives.(II)Engagement/Disengagement 1.On April 23,2002,through examination at the 2nd meeting of the 3rd Board of Directors,Comrade Meng Feng was engaged as Deputy General Manager;Comrad
21、e Shao Xuejun was engaged as Chief Engineer;Comrade Guo Xicheng was engaged as Chief Accountant;Comrade Li Ruohua was disengaged as Deputy General Manager.2.On June 27,2002,Mr.Zhao Jinghua and Mr.Liu Xueyan were elected independent directors at 2001 Shareholders General Meeting with the office term
22、up to the termination of the 3rd Board of Directors.IV.Discussion and analysis of the Management Facing the new situation of increasingly keen market competition after Chinas accession to WTO,the Company persisted in enlarging its scale,developing market and strengthening management at the same time
23、,enjoying good development.Especially,the important projects of the subsidiaries of the Company including Wuhan Chenming Hanyang Paper Co.,Ltd.and Shandong Chenming Paper Group Qihe Board Mill were put into production in succession as scheduled and the project with annual output of art paper of 0.15
24、3 million tons soon be put into full production so that the annual production capacity of the Company will increase greatly.these projects will become new channels for the growth of economic results of the Company.(I)Financial Analysis In R MB Items Jan.to Jun.,2002 Jan.to Jun.,2001 Income from prin
25、cipal businesses 1,689,281,816.23 1,291,903,776.71 Profit from principal businesses 443,543,939.43 280,836,768.87 Net profit 139,731,825.06 102,451,692.89 Net increase of cash and-402,416,721.80 196,189,535.90 cash equivalents Items Jun.30,2002 Dec.30,2001 Total assets 7,903,946,700.21 7,392,134,448
26、.98 Shareholders Equity 3,316,401,390.29 3,176,669,565.23 Reasons for change:(1)Income from the principal businesses increased due to the commencement of the production of new projects of the Company and increase of sales volume.(2)Income from the principal businesses increased mainly due to the inc
27、rease of income from principal businesses,lowering of the price of raw materials and the enhancement of gross profit rate.(3)Net profit increased due to the increase of the income from the principle businesses and the reverse entry of provision for short-term investment depreciation.5(4)Net addition
28、 of Cash and cash equivalent decreased due to the gradual investment of the Companys cash into the construction-in-progress.(5)Total assets increased due to the increase of profit and loan.(6)Shareholders equities increased due to increase of net profit.(I I)Business Highlights in the Report Period
29、The Company is mainly engaged in production and sales of machine-made paper and board,papermaking raw materials,papermaking machinery,electric power and heat energy.Centering on the targets for the whole year and being oriented toward market and economic results,the Company all-roundly promoted tech
30、nological development,quickened project construction and enjoyed continuous and stable development under the correct leadership of the Board of Directors in the first half year of 2002.In the report period,the output of machine-made paper was 0.4245 million tons,an increase of 58.16%over the same pe
31、riod of the previous year.Its turnover and net profit were respectively 1.689 billion and RMB 139.7318 million,an increase of 30.76%and 36.39%respectively over the same period of the previous year.1.Among the Companys key products,the turnover of light coated paper was RMB 243.5899 million,accountin
32、g for 14.42%of the income from the principal businesses.Its sales cost was RMB 201.7406 million,accounting for 16.28%.The gross sales profit rate was 17.18%.The turnover of double-faced offset printing paper was RMB 443.6194 million,accounting for 26.26%of the income from the principal businesses.It
33、s sales cost was RMB 324.6329 million,accounting for 26.20%.The gross sales profit rate was 26.82%.The turnover of writing paper was RMB 248.0243 million,accounting for 14.68%of the income from the principal businesses.Its sales cost was RMB 176.0813 million,accounting for 14.21%.The gross sales pro
34、fit rate was 29.01%.The turnover of news printing paper was RMB 194.4594 million,accounting for 11.51%of the income from the principal businesses.Its sales cost was RMB 138.7669 million,accounting for 11.20%.The gross sales profit rate was 26.64%.2.Operating performance of the Company and principal
35、controlled subsidiaries(1)Shouguang head office of the Company produced 0.1456 million tons of products,realized turnover of RMB 843.5985 million and net profit of RMB 78.2689 million.(2)The total assets of Qihe Board Mill,operated by the Company by leasing,were RMB 649.1858 million.Its leading prod
36、uct is case board.In the report period,the company produced 78,500 tons of kraft board and corrugated board and realized turnover of RMB 169.6688 million and net profit of RMB 17.6384 million.(3)The registered capital of Wuhan Chenming Hanyang Paper Co.,Ltd.,one of the Companys controlled subsidiari
37、es,is RMB 211.367 million and its total assets were RMB 2077.5516 million.Its leading product is writing paper.In the report period,the company produced 135,600 tons of machine-made paper and realized turnover of RMB 576.6822 million and net profit of RMB 61.7741 million.(4)The registered capital of
38、 Shandong Cheming Thermal Power Co.,Ltd.,one of the Companys controlled subsidiaries,is RMB 99.5531 million and its total assets were RMB 372.0603 million.It is mainly engaged in production and sales of electric power and heat energy.In the report period,the company realized turnover of RMB 76.7855
39、million and net 6profit of RMB 7.6328 million.(5)The registered capital of Hubei Chibi Chenming Paper Co.,Ltd.,one of the Companys controlled subsidiaries,is RMB 177.4194 million and its total assets were RMB 328.9934 million.Its leading product is double-faced offset printing paper.With output of 2
40、1700 tons,the company realized turnover of RMB 92.0189 million and net profit of RMB 11.5639 million in the report period.(III)Investment 1.Application of the proceeds raised through previous share offering carried forward to the report period:Committed investment project Project actually invested T
41、otal investment Predicted earnings Proceeds invested 153,000 ton coated art paper 153,000 ton coated art paper RMB 1,515.14 mil.RMB 258.76 mil.RMB 1598.2753 mil.The proceeds raised through issuing A shares in 2000 was invested in constructing coated art paper project with annual capacity of 153,000
42、tons as specified in the Prospectus.By the end of the report period,all raised proceeds of RMB 1.424 billion were invested.By the end of the report period,RMB 1598.2753 million was invested in this project.The complementary thermal power station was put into operation in March,2002.The base paper li
43、ne of this project was put into operation from April 10,2002.With the total output of 27300 tons,the project realized turnover of RMB 51.3508 million and net profit of RMB 5.2125 million.The commissioning of the equipment of the production line of coated art paper started from the end of July and th
44、e production line will be put into full production in August.2.Investment with the funds not raised through share offering(1)The 50,000-ton high-grade color offset printing paper project of Wuhan Chenming Hanyang paper Co.,Ltd.,one of the Companys controlled subsidiaries,was put into operation in Ja
45、nuary 2002.With total output of 45400 tons,the project realized turnover of RMB 183.0993 million and net profit of RMB 20.7814 million in the report period.The announcement of the production commencement of this project was published on China Securities Daily,Securities Times and Hong Kong Commercia
46、l Daily on February 1,2002.(2)The 100,000-ton A-grade case board technical renovation project of Shandong Chenming Qihe Board Co.,Ltd.,one of the Companys controlled subsidiaries,was put into operation in May 2002.With total output of 15,000 tons,the project realized turnover of RMB 31.4932 million
47、and net profit of RMB 3.0624 million in the report period.(3)The alkaline recovery project with capacity of 150 tons/day was officially put into operation in April 2002.The reed pulp production line project was put into operation in March 2002.Relevant information was disclosed in the summary of 200
48、1 annual report of the Company on China Securities Daily and Securities Times on April 25,2002.(4)The total investment of the intermediate water project with capacity of 60,000 cubic meters/day of the Company is RMB 50 million.The actual investment was RMB 37.51 million.This project was put into ope
49、ration in May 2002,which has greatly improved the waste water treatment capacity and the existing workshops and the new projects and brought good social result to the Company.(5)The Company established Beijing Tianbao Jialing Real Estate Development Co.,Ltd.with Meilinda Investment Group Co.,Ltd.,Be
50、ijing Hengxin Yongsheng Science and 7Technology Development Co.and Beijing Tiantai Tonghe Investment Consultation Co.,Ltd.in June 2002.The Company contributed capital of RMB 22.50 million accounting for 45%of the registered capital,being the largest shareholder.This company is mainly engaged in the
