FOSHAN HUAXIN PACKAGING CO., LTD.
Audit Report
DHSZ[2016]No. 002579
Da Hua Certified Public Accountants（Special General Partnership）
I.Audit Report
DHSZ[2016]No. 002579
TO THE SHAREHOLDERS OF FOSHAN HUAXIN PACKAGING CO., LTD.:
We have audited the attached financial statements of Foshan Huaxin Packaging Co.,
Ltd. (hereinafter referred to as “Huaxin Packaging”) which comprise the balance sheet
and the consolidated balance sheet as at 31 Dec. 2015, the income statement and
consolidated income statement, the cash flow statement and consolidated cash flow
statement, the statement of changes in shareholders’ equity and consolidated
statement of changes in shareholders’ 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 the
auditor’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.
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 the Company’s financial position as at 31 Dec. 2015 and the Company’s
operating results and cash flows for the year then ended.
Dahua CPA (LLP) CPA:YanZhang
ChinaBeijing
CPA:JiliangLiu
18 Mar. 2016
II. Financial statements
Unit of statements in financial notes is: RMB Yuan
1. Consolidated balance sheet
Name of enterprise: Foshan Huaxin Packaging Co., Ltd.
31 Dec. 2015
Unit: RMB Yuan
Item 31 Dec. 2015 31 Dec. 2014
Current Assets:
Monetary funds 509,706,611.07 474,549,403.56
Settlement reserves
Intra-group lendings
Financial assets measured at fair
value of which changes are recorded in 1,741,500.00
current profits and losses
Derivative financial assets
Notes receivable 265,679,151.34 345,827,854.88
Accounts receivable 791,325,305.79 837,978,587.68
Accounts paid in advance 116,290,696.98 181,932,527.24
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable 5,233,556.60
Dividend receivable
Other accounts receivable 143,862,308.16 106,548,714.08
Financial assets purchased under
agreements to resell
Inventories 712,880,811.93 942,156,138.62
Assets held for sale
Non-current assets due within 1 year
Other current assets 17,147,074.25 8,212,679.56
Total current assets 2,563,867,016.12 2,897,205,905.62
Non-current assets:
Loans by mandate and advances
granted
Available-for-sale financial assets 288,700.00 113,558.00
Held-to-maturity investments
Long-term accounts receivable 490,240,600.41
Long-term equity investment 262,089,226.45 246,747,332.67
Investing real estate 11,945,127.02 12,605,907.08
Fixed assets 2,539,372,551.91 2,926,710,908.66
Construction in progress 28,305,202.78 154,209,661.31
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 108,048,541.44 129,264,164.34
R&D expense 12,556,242.88
Goodwill 11,547,305.29 11,547,305.29
Long-term deferred expenses 2,903,771.31 510,136.71
Deferred income tax assets 33,209,638.28 35,246,535.27
Other non-current assets 7,519,746.40 7,409,367.68
Total of non-current assets 3,495,470,411.29 3,536,921,119.89
Total assets 6,059,337,427.41 6,434,127,025.51
Current liabilities:
Short-term borrowings 912,724,440.16 1,130,267,087.23
Borrowings from Central Bank
Customer bank deposits and due to
banks and other financial institutions
Intra-group borrowings
Financial liabilities measured at fair
value of which changes are recorded in 212,689.24
current profits and losses
Derivative financial liabilities
Notes payable 127,562,392.61 68,436,123.39
Accounts payable 365,555,758.89 442,828,366.71
Accounts received in advance 9,817,369.72 23,232,010.74
Financial assets sold for repurchase
Handling charges and commissions
payable
Payroll payable 33,391,126.62 32,322,152.63
Tax payable 37,570,856.48 22,020,173.90
Interest payable 10,684,484.26 29,816,504.46
Dividend payable 11,019,644.79 170,913.00
Other accounts payable 24,761,471.30 21,260,151.32
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting underwriting of
securities
Liabilities held for sale
Non-current liabilities due within 1
418,750,000.00
year
Other current liabilities
Total current liabilities 1,533,300,234.07 2,189,103,483.38
Non-current liabilities:
Long-term borrowings
Bonds payable 995,587,962.29 794,912,384.37
Of which: preferred shares
Perpetual bonds
Long-term payables 7,630,748.49 10,506,735.99
Long-term payroll payables
Specific payables
Estimated liabilities 1,758,780.68 7,431,237.75
Deferred income 9,200,905.88 6,648,333.32
Deferred income tax liabilities 2,875,132.08 2,805,584.00
Other non-current liabilities
Total non-current liabilities 1,017,053,529.42 822,304,275.43
Total liabilities 2,550,353,763.49 3,011,407,758.81
Owners’ equity:
Share capital 505,425,000.00 505,425,000.00
Other equity instruments
Of which: preferred shares
Perpetual bonds
Capital reserves 256,822,373.42 256,822,373.42
Less: Treasury stock
Other comprehensive income 169,714.39 169,714.39
Specific reserves
Surplus reserves 187,280,095.40 187,280,095.40
Provisions for general risks
Retained profits 988,580,048.92 863,066,727.26
Total equity attributable to owners of
1,938,277,232.13 1,812,763,910.47
the Company
Minority interests 1,570,706,431.79 1,609,955,356.23
Total owners’ equity 3,508,983,663.92 3,422,719,266.70
Total liabilities and owners’ equity 6,059,337,427.41 6,434,127,025.51
Legal representative: Huang Xin Person-in-charge of the accounting work: Ji Xiangdong
Person-in-charge of accounting firm: Yang Yinghui
2. Balance sheet of the parent company
Unit: RMB Yuan
Item 31 Dec. 2015 31 Dec. 2014
Current Assets:
Monetary funds 68,234,826.12 10,063,979.96
Financial assets measured at fair
value of which changes are recorded in
current profits and losses
Derivative financial assets
Notes receivable
Accounts receivable 12,775,461.68 42,393,540.95
Accounts paid in advance 141,509.43
Interest receivable
Dividend receivable
Other accounts receivable 964,414,178.70 1,437,567,917.18
Inventories
Assets held for sale
Non-current assets due within 1 year
Other current assets 1,432,574.60
Total current assets 1,046,998,550.53 1,490,025,438.09
Non-current assets:
Available-for-sale financial assets 288,700.00
Held-to-maturity investments
Long-term accounts receivable 490,240,600.41
Long-term equity investment 1,312,361,239.94 1,518,626,016.33
Investing real estate
Fixed assets 380,975.78 269,949.29
Construction in progress
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 433,782.13 523,980.01
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets
Other non-current assets
Total of non-current assets 1,803,705,298.26 1,519,419,945.63
Total assets 2,850,703,848.79 3,009,445,383.72
Current liabilities:
Short-term borrowings 100,000,000.00
Financial liabilities measured at fair
value of which changes are recorded in
current profits and losses
Derivative financial liabilities
Notes payable 45,000,000.00
Accounts payable 12,775,461.68 42,393,540.96
Accounts received in advance
Payroll payable
Tax payable 142,128.32 1,176,814.16
Interest payable 9,179,970.44 22,709,722.31
Dividend payable 179,458.65 170,913.00
Other accounts payable 5,003,595.00 1,265,692.77
Liabilities held for sale
Non-current liabilities due within 1
418,750,000.00
year
Other current liabilities
Total current liabilities 172,280,614.09 486,466,683.20
Non-current liabilities:
Long-term borrowings
Bonds payable 995,587,962.29 794,912,384.37
Of which: preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payables
Specific payables
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 995,587,962.29 794,912,384.37
Total liabilities 1,167,868,576.38 1,281,379,067.57
Owners’ equity:
Share capital 505,425,000.00 505,425,000.00
Other equity instruments
Of which: preferred shares
Perpetual bonds
Capital reserves 250,531,482.00 250,531,482.00
Less: Treasury stock
Other comprehensive income
Specific reserves
Surplus reserves 187,280,095.40 187,280,095.40
Retained profits 739,598,695.01 784,829,738.75
Total owners’ equity 1,682,835,272.41 1,728,066,316.15
Total liabilities and owners’ equity 2,850,703,848.79 3,009,445,383.72
3. Consolidated income statement
Unit: RMB Yuan
Item 2015 2014
I. Total operating revenues 3,282,043,995.12 3,552,698,716.17
Including: Sales income 3,282,043,995.12 3,552,698,716.17
Interest income
Premium income
Handling charge and commission
income
II. Total operating costs 3,240,504,576.79 3,410,828,486.83
Including: Cost of sales 2,733,163,536.13 2,970,740,412.17
Interest expenses
Handling charge and commission
expenses
Surrenders
Net claims paid
Net amount withdrawn for the
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Taxes and associate charges 16,325,153.64 14,596,194.98
Selling and distribution expenses 172,400,338.43 164,537,468.45
Administrative expenses 158,119,192.47 140,664,702.02
Financial expenses 133,872,055.72 126,985,102.16
Asset impairment loss 26,624,300.40 -6,695,392.95
Add: Gain/(loss) from change in fair
1,528,810.76
value (“-” means loss)
Gain/(loss) from investment (“-”
121,166,566.33 12,486,831.40
means loss)
Including: share of profits in
15,711,019.67 7,690,138.47
associates and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) 164,234,795.42 154,357,060.74
Add: non-operating income 23,729,196.71 43,948,392.57
Including: Gains on disposal of
2,265,238.32 25,556,368.05
non-current assets
Less: non-operating expense 1,263,680.97 1,329,662.94
Including: Losses on disposal of
955,586.75 1,009,714.83
non-current assets
IV. Total profit (“-” means loss) 186,700,311.16 196,975,790.37
Less: Income tax expense 15,784,568.82 47,717,250.82
V. Net profit (“-” means loss) 170,915,742.34 149,258,539.55
Net profit attributable to owners of
133,094,696.66 83,284,859.23
the Company
Minority shareholders’ income 37,821,045.68 65,973,680.32
VI. After-tax net amount of other
-1,632,644.73
comprehensive incomes
After-tax net amount of other
comprehensive incomes attributable to -457,927.44
owners of the Company
(I) Other comprehensive incomes
that will not be reclassified into gains and
losses
1. Changes in net liabilities or
assets with a defined benefit plan upon
re-measurement
2. Enjoyable shares in other
comprehensive incomes in investees that
cannot be reclassified into gains and
losses under the equity method
(II) Other comprehensive incomes
that will be reclassified into gains and -457,927.44
losses
1. Enjoyable shares in other
-457,927.44
comprehensive incomes in investees that
will be reclassified into gains and losses
under the equity method
2. Gains and losses on fair
value changes of available-for-sale
financial assets
3. Gains and losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
4. Effective hedging gains and
losses on cash flows
5. Foreign-currency financial
statement translation difference
6. Other
After-tax net amount of other
comprehensive incomes attributable to -1,174,717.29
minority shareholders
VII. Total comprehensive incomes 170,915,742.34 147,625,894.82
Attributable to owners of the
133,094,696.66 82,826,931.79
Company
Attributable to minority
37,821,045.68 64,798,963.03
shareholders
VIII. Earnings per share
(I) Basic earnings per share 0.26 0.16
(II) Diluted earnings per share 0.26 0.16
Where business mergers under the same control occurred in this reporting period, the net profit achieved by the
merged parties before the business mergers was RMB XXX, with the corresponding amount for the last period
being RMB XXX.
Legal representative: Huang Xin Person-in-charge of the accounting work: Ji Xiangdong
Person-in-charge of accounting firm: Yang Yinghui
4. Income statement of the Company
Unit: RMB Yuan
Item 2015 2014
I. Total sales 255,247,489.31 288,258,240.65
Less: cost of sales 255,247,489.31 218,075,280.68
Business taxes and surcharges 208,990.35 4,186,523.39
Distribution expenses
Administrative expenses 10,678,245.22 9,699,461.03
Financial costs -11,234,310.55 -17,690,231.39
Impairment loss
Add: gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
-39,467,993.33 7,068,374.19
means loss)
Including: income form investment
15,735,223.61 7,068,374.19
on associates and joint ventures
II. Business profit (“-” means loss) -39,120,918.35 81,055,581.13
Add: non-operating income 1,473,110.14 23,852,512.83
Including: Gains on disposal of
1,108,861.40 23,837,376.07
non-current assets
Less: non-operating expense 1,860.53 870.00
Including: Losses on disposal of
non-current assets
III. Total profit (“-” means loss) -37,649,668.74 104,907,223.96
Less: Income tax expense 24,507,617.94
IV. Net profit (“-” means loss) -37,649,668.74 80,399,606.02
V. After-tax net amount of other
comprehensive incomes
(I) Other comprehensive incomes that
will not be reclassified into gains and
losses
1. Changes in net liabilities or
assets with a defined benefit plan upon
re-measurement
2. Enjoyable shares in other
comprehensive incomes in investees
that cannot be reclassified into gains
and losses under the equity method
(II) Other comprehensive incomes
that will be reclassified into gains and
losses
1. Enjoyable shares in other
comprehensive incomes in investees
that will be reclassified into gains and
losses under the equity method
2. Gains and losses on fair value
changes of available-for-sale financial
assets
3. Gains and losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
4. Effective hedging gains and
losses on cash flows
5. Foreign-currency financial
statement translation difference
6. Other
VI. Total comprehensive incomes -37,649,668.74 80,399,606.02
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated cash flow statement
Unit: RMB Yuan
Item 2015 2014
I. Cash flows from operating activities:
Cash received from sale of
3,039,588,223.77 3,292,918,326.94
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 financial
assets measured at fair value of which
changes are recorded into current gains
and losses
Cash received from interest, handling
charges and commissions
Net increase of intra-group
borrowings
Net increase of funds in repurchase
business
Tax refunds received 80,290.26 115,495.24
Other cash received relating to
123,953,129.73 53,112,411.40
operating activities
Subtotal of cash inflows from operating
3,163,621,643.76 3,346,146,233.58
activities
Cash paid for goods and services 1,989,083,751.81 2,378,278,547.25
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 203,434,376.23 212,913,710.51
Various taxes paid 179,765,117.75 145,880,960.62
Other cash payment relating to
177,847,068.21 129,182,685.22
operating activities
Subtotal of cash outflows from
2,550,130,314.00 2,866,255,903.60
operating activities
Net cash flows from operating activities 613,491,329.76 479,890,329.98
II. Cash flows from investing activities:
Cash received from withdrawal of
7,669,463.73
investments
Cash received from return on
370,307.68
investments
Net cash received from disposal of
68,780,908.16 1,934,517.23
fixed assets, intangible assets and other
long-term assets
Net cash received from disposal of
44,869,829.86
subsidiaries or other business units
Other cash received relating to
4,066,986.00
investing activities
Subtotal of cash inflows from investing
118,088,031.70 9,603,980.96
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 56,315,072.57 171,488,456.29
assets
Cash paid for investment 231,450,200.00
Net increase of pledged loans
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from
56,315,072.57 402,938,656.29
investing activities
Net cash flows from investing activities 61,772,959.13 -393,334,675.33
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cash received from borrowings 2,177,214,602.70 2,526,205,000.37
Cash received from issuance of
bonds
Other cash received relating to
37,554,493.73 3,000,000.00
financing activities
Subtotal of cash inflows from financing
2,214,769,096.43 2,529,205,000.37
activities
Repayment of borrowings 2,648,801,607.88 2,218,884,556.85
Cash paid for interest expenses and
174,086,048.88 121,870,769.48
distribution of dividends or profit
Including: dividends or profit paid
41,400,266.00
by subsidiaries to minority shareholders
Other cash payments relating to
361,300,780.56
financing activities
Sub-total of cash outflows from
2,822,887,656.76 2,702,056,106.89
financing activities
Net cash flows from financing activities -608,118,560.33 -172,851,106.52
IV. Effect of foreign exchange rate
5,565,972.68 -704,711.69
changes on cash and cash equivalents
V. Net increase in cash and cash
72,711,701.24 -87,000,163.56
equivalents
Add: Opening balance of cash and
113,248,623.00 200,248,786.56
cash equivalents
VI. Closing balance of cash and cash
185,960,324.24 113,248,623.00
equivalents
6. Cash flow statement of the Company
Unit: RMB Yuan
Item 2015 2014
I. Cash flows from operating activities:
Cash received from sale of
328,257,641.76 282,982,651.03
commodities and rendering of service
Tax refunds received
Other cash received relating to
731,296,731.46 429,286,185.00
operating activities
Subtotal of cash inflows from operating
1,059,554,373.22 712,268,836.03
activities
Cash paid for goods and services 328,257,641.77 212,806,528.66
Cash paid to and for employees 6,744,701.10 6,267,950.81
Various taxes paid 2,878,820.20 41,674,623.68
Other cash payment relating to
591,337,365.04 61,951,789.20
operating activities
Subtotal of cash outflows from
929,218,528.11 322,700,892.35
operating activities
Net cash flows from operating activities 130,335,845.11 389,567,943.68
II. Cash flows from investing activities:
Cash received from retraction of
investments
Cash received from return on 19,796,783.06
investments
Net cash received from disposal of
fixed assets, intangible assets and other 65,610,551.60 18,300.00
long-term assets
Net cash received from disposal of
45,000,000.00
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from investing
130,407,334.66 18,300.00
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 201,641.91 27,656.00
assets
Cash paid for investment 3,288,700.00 231,450,200.00
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from
3,490,341.91 231,477,856.00
investing activities
Net cash flows from investing activities 126,916,992.75 -231,459,556.00
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Cash received from borrowings 449,100,000.00 100,000,000.00
Cash received from issuance of
bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
449,100,000.00 100,000,000.00
activities
Repayment of borrowings 568,770,000.00 220,000,000.00
Cash paid for interest expenses and
79,411,991.70 73,335,611.09
distribution of dividends or profit
Other cash payments relating to
4,500,000.00
financing activities
Sub-total of cash outflows from 652,681,991.70 293,335,611.09
financing activities
Net cash flows from financing activities -203,581,991.70 -193,335,611.09
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
53,670,846.16 -35,227,223.41
equivalents
Add: Opening balance of cash and
10,063,979.96 45,291,203.37
cash equivalents
VI. Closing balance of cash and cash
63,734,826.12 10,063,979.96
equivalents
7. Consolidated statement of changes in owners’ equity
2015
Unit: RMB Yuan
2015
Equity attributable to owners of the Company
Other equity
Other Minorit Total
Item instruments Less: General
Share Capital compre Specific Surplus Retaine y owners’
Prefer Perpet treasury risk
capital reserve hensive reserve reserve d profit interests equity
red ual Other stock reserve
incomes
shares bonds
I. Balance at the 505,42 1,609,9 3,422,7
256,822 169,714 187,280 863,066
end of the 5,000. 55,356. 19,266.
,373.42 .39 ,095.40 ,727.26
previous year 00 23 70
Add: change of
accounting policy
Correction of
errors in previous
periods
Business
mergers under the
same control
Other
II. Balance at the 505,42 1,609,9 3,422,7
256,822 169,714 187,280 863,066
beginning of the 5,000. 55,356. 19,266.
,373.42 .39 ,095.40 ,727.26
year 00 23 70
III. Increase/ 125,513 -39,248, 86,264,
decrease in the ,321.66 924.44 397.22
period (“-” means
decrease)
(I) Total
133,094 37,821, 170,915
comprehensive
,696.66 045.68 ,742.34
incomes
(II) Capital
-12,343, -12,343,
increased and
394.48 394.48
reduced by owners
1. Common
-12,343, -12,343,
shares increased
394.48 394.48
by shareholders
2. Capital
increased by
holders of other
equity instruments
3. Amounts
of share-based
payments
recognized in
owners’ equity
4. Other
(III) Profit -7,581,3 -64,726, -72,307,
distribution 75.00 575.64 950.64
1.
Appropriations to
surplus reserves
2.
Appropriations to
general risk
provisions
3.
Appropriations to -7,581,3 -64,726, -67,913,
owners (or 75.00 575.64 923.87
shareholders)
-4,394,0 -4,394,0
4. Other
26.77 26.77
(IV) 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
(V) Specific
reserve
1. Withdrawn
for the period
2. Used in the
period
(VI) Other
505,42 1,570,7 3,508,9
IV. Closing 256,822 169,714 187,280 988,580
5,000. 06,431. 83,663.
balance ,373.42 .39 ,095.40 ,048.92
00 79 92
2014
Unit: RMB Yuan
2014
Equity attributable to owners of the Company
Other equity Minorit
Other Total
Item instruments y
Less: General
Share Capital compre Specific Surplus Retaine owners’
treasury risk interest
Prefer Perpet equity
capital reserve hensive reserve reserve d profit
red ual Other stock reserve s
incomes
shares bonds
I. Balance at the 505,42 1,545,1 3,275,0
256,822 627,641 179,240 787,821
end of the 5,000. 56,393. 93,371.
,373.42 .83 ,134.80 ,828.63
previous year 00 20 88
Add: change of
accounting policy
Correction of
errors in previous
periods
Business
mergers under the
same control
Other
II. Balance at the 505,42 1,545,1 3,275,0
256,822 627,641 179,240 787,821
beginning of the 5,000. 56,393. 93,371.
,373.42 .83 ,134.80 ,828.63
year 00 20 88
III. Increase/
decrease in the -457,92 8,039,9 75,244, 64,798, 147,625
period (“-” means 7.44 60.60 898.63 963.03 ,894.82
decrease)
(I) Total
-457,92 83,284, 64,798, 147,625
comprehensive
7.44 859.23 963.03 ,894.82
incomes
(II) Capital
increased and
reduced by owners
1. Common
shares increased
by shareholders
2. Capital
increased by
holders of other
equity instruments
3. Amounts
of share-based
payments
recognized in
owners’ equity
4. Other
(III) Profit 8,039,9 -8,039,9
distribution 60.60 60.60
1.
8,039,9 -8,039,9
Appropriations to
60.60 60.60
surplus reserves
2.
Appropriations to
general risk
provisions
3.
Appropriations to
owners (or
shareholders)
4. Other
(IV) 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
(V) Specific
reserve
1. Withdrawn
for the period
2. Used in the
period
(VI) Other
505,42 1,609,9 3,422,7
IV. Closing 256,822 169,714 187,280 863,066
5,000. 55,356. 19,266.
balance ,373.42 .39 ,095.40 ,727.26
00 23 70
8. Statement of changes in owners’ equity of the Company
2015
Unit: RMB Yuan
2015
Item Share Other equity instruments Capital Less: Other Specific Surplus Retaine Total
capital Preferre Perpetu Other reserve treasury comprehe reserve reserve d profit owners’
d shares al bonds stock nsive equity
incomes
I. Balance at the
505,425, 250,531,4 187,280,0 784,829 1,728,066
end of the previous
000.00 82.00 95.40 ,738.75 ,316.15
year
Add: change of
accounting policy
Correction of
errors in previous
periods
Other
II. Balance at the
505,425, 250,531,4 187,280,0 784,829 1,728,066
beginning of the
000.00 82.00 95.40 ,738.75 ,316.15
year
III. Increase/
decrease in the -45,231, -45,231,0
period (“-” means 043.74 43.74
decrease)
(I) Total
-37,649, -37,649,6
comprehensive
668.74 68.74
incomes
(II) Capital
increased and
reduced by owners
1. Common
shares increased
by shareholders
2. Capital
increased by
holders of other
equity instruments
3. Amounts
of share-based
payments
recognized in
owners’ equity
4. Other
(III) Profit -7,581,3 -7,581,37
distribution 75.00 5.00
1.
Appropriations to
surplus reserves
2.
Appropriations to -7,581,3 -7,581,37
owners (or 75.00 5.00
shareholders)
3. Other
(IV) 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
(V) Specific
reserve
1. Withdrawn
for the period
2. Used in the
period
(VI) Other
IV. Closing 505,425, 250,531,4 187,280,0 739,598 1,682,835
balance 000.00 82.00 95.40 ,695.01 ,272.41
2014
Unit: RMB Yuan
2014
Other equity instruments Other
Less: Total
Item Share Capital comprehe Specific Surplus Retaine
Preferre Perpetu treasury owners’
capital Other reserve nsive reserve reserve d profit
d shares al bonds stock equity
incomes
I. Balance at the
505,425, 250,531,4 179,240,1 712,470 1,647,666
end of the previous
000.00 82.00 34.80 ,093.33 ,710.13
year
Add: change of
accounting policy
Correction of
errors in previous
periods
Other
II. Balance at the
505,425, 250,531,4 179,240,1 712,470 1,647,666
beginning of the
000.00 82.00 34.80 ,093.33 ,710.13
year
III. Increase/
decrease in the 8,039,960 72,359, 80,399,60
period (“-” means .60 645.42 6.02
decrease)
(I) Total
80,399, 80,399,60
comprehensive
606.02 6.02
incomes
(II) Capital
increased and
reduced by owners
1. Common
shares increased
by shareholders
2. Capital
increased by
holders of other
equity instruments
3. Amounts
of share-based
payments
recognized in
owners’ equity
4. Other
(III) Profit 8,039,960 -8,039,9
distribution .60 60.60
1.
8,039,960 -8,039,9
Appropriations to
.60 60.60
surplus reserves
2.
Appropriations to
owners (or
shareholders)
3. Other
(IV) 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
(V) Specific
reserve
1. Withdrawn
for the period
2. Used in the
period
(VI) Other
IV. Closing 505,425, 250,531,4 187,280,0 784,829 1,728,066
balance 000.00 82.00 95.40 ,738.75 ,316.15
III. Financial statement's footnote
1.Company profiles
1. Place of incorporation, organization form and address of headquarters
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 of People’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, 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 RMB290,000,000 at par value of
RMB1 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, the Company’s total share capital was
increased to RMB439,500,000.00. In June 2007, the Company distributed dividends of 65,925,000
shares, thus, the total share capital was changed into RMB505,425,000.00. The Company is
mainly engaged in the paper making, paper package and printing industry.
As at 31 Dec. 2015, the Company accumulatively issued 505,425,000 shares in number and the
registered capital stood at RMB505,425,000. The Company’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 Ultimate
controller of the Company is China Chengtong Holding Group Co., Ltd.
2. Nature of the business and main operation activities
The Company is in the industry of papermaking, paper packaging and printing, and 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.
3. Issuance of the financial statements authorized
The financial statement was approved to issue by the Board of Directors on 18 Mar. 2016.
2.Consolidated financial statements
This issue consolidated financial statements included in the scope of the subject co-7, including:
Subsidiaries
Class Shareholding Percentage of
Name of subsidiaries
Type times Ratio (%) voting rights (%)
Subsidiaries
Class Shareholding Percentage of
Name of subsidiaries
Type times Ratio (%) voting rights (%)
holding
Zhuhai S.E.Z. Hongta Renheng Paper
subsidiary One 41.9653% 41.9653%
Co., Ltd.
Awholly
Zhuhai Huafeng Paper Co., Ltd. owned Two 100% 100%
subsidiary
holding
Zhuhai Jinji Chemicals Co., Ltd. subsidiary One 51% 51%
A wholly
Huaxin (Foshan) Color Printing Co., Ltd. owned Two 100% 100%
subsidiary
A wholly
Kunshan Focai Packaging & Printing Co.,
owned One 100% 100%
Ltd.
subsidiary
A wholly
Pearl River Color Printing Co., Ltd. of
owned Two 100% 100%
Chancheng District, Foshan
subsidiary
A wholly
Pinghu Huaxin Packing Material Co., Ltd owned one 100% 100%
subsidiary
The exercise control instructions of company to Zhuhai SEZ Hongta Renheng Paper Co., Ltd.
(hereinafter referred to as "Hongta Renheng"):
On June 30, 2009, the ways to achieve the company to increase endowment spread hongta Renheng
40.176% stake, hongta Renheng 5 members of the board of directors and the company sent three,
yunnan hongta group co., LTD. And each sent 1 Renheng industrial co., LTD. Chairman of the
board of directors (legal representative) sent by the company, general manager and chief financial
officer dispatched personnel as by the company, the company can control hongta Renheng daily
production and business operation activities, so since July 2009, hongta Renheng started into the
consolidated company. On February 1, 2010, hongta Renheng complete capital formalities of
industrial and commercial change, our company hold the equity of hongta Renheng increased to
41.9653%, according to the hongta Renheng on February 25, 2010, the board of directors resolution,
modify the hongta Renheng contracts and articles of association, the modified hongta Renheng by
five to seven of the members of the board, the company sent four (three), yunnan hongta group co.,
LTD., sent two (1), Renheng industrial co., LTD., sent one, don't send directors kalumpang
international co., LTD. The company can still determine hongta Renheng financial and operating
policies, will still be able to implement control, therefore, continue to hongta Renheng included in
the consolidation range of the company.
The body included in the scope of consolidated financial statements increased 1 comparing to that
in last period, of which:
1. Subsidiary newly included in consolidated scope
Name Reason of change
Pinghu Huaxin Packing Material Co., Ltd Subsidiary newly established in reporting period
2. Subsidiary was no longer included in consolidated scope
Name Reason of change
Foshan Chengtong Paper Co., Ltd. The disposal of subsidiary
Merge scope change subject specific information can be found in the "note 7, merge scope change"
4. Basis for the preparation of financial statements
1. Preparation basis
With the going-concern assumption as the basis and based on transactions and other events that
actually occurred, the Group prepared financial statements in accordance with Standards for Business Enterprises—Basic Standard> issued by the Ministry of Finance and with each specific accounting standard, the Application Guidance of Accounting Standards for Business Enterprises, the Interpretation of Accounting Standards for Business Enterprises and other regulations (hereinafter jointly referred to as “the Accounting Standards for Business Enterprises”, “China Accounting Standards” or “CAS”), as well as the Rules for Preparation Convention of Disclosure of Public Offering Companies No.15 – General Regulations for Financial Reporting by China Securities Regulatory Commission. 2. Continuation The Company evaluated the processes constantly operation ability with 12 months since the reporting period. There was no significant suspect event to the continuation. Thus, the financial statement was prepared on the base of the assumption of continuation 5. Important accounting policies and estimations Indication of specific accounting policies and estimations: Naught 1. 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 the Company’s financial status, operating results and cash flows in an accurate and complete way. 2. Fiscal period The fiscal year of the Company is a solar calendar year, which is from January 1 to December 31. 3. Operating cycle The operating cycle of the Company is 12 months. 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 1. Each transaction items, conditions and economy influence in confirm with the following one or several conditions, when realizing enterprise combination by steps. Several transaction events were considered as a package deal and conducted accounting method (1) The transaction was set up in the same time or had considered the influence to each others: (2) The transaction only stand as a whole, a perfect commercial result can be arrived. (3) A transaction incurred depends on at least one transaction occurred; (4) A transaction is not economical, however, together with other transaction are economical. 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 (including goodwill formed from the final control party purchase combined party) combing party on the combining date. 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. In the event that the contingent consideration exists and the accrued liabilities or assets need to be recognized, the difference between the accrued liabilities or assets and the settlement amount of subsequent contingent consideration shall adjust the capital surplus (capital premium or stock premium), and if the capital surplus is not sufficient, adjust the retained earnings. Where the corporate merger and acquisition is realized through multiple transactions, if these transactions belong to a package transaction, each transaction shall be accounted as a transaction to obtain the right to control; if these transactions do not belong to a package transaction, on the date the right to control is obtained, the difference between the initial investment costs of the long-term equity investment and the carrying value of long-term equity investment before the M&A plus the carrying value of the new consideration paid to further get the shares on the date of M&A shall be charged against the capital surplus, and if the capital surplus is insufficient, the difference shall be charged against the remaining earnings. For the equity investment held before the date of M&A, the other comprehensive earnings accounted for using the equity method or recognized with the financial tool and accounted for and recognized using the measurement criteria shall not be accounted, until the investment is disposed, at which time, the investment shall be accounted on the same basis as the investee directly disposes related assets or liabilities; the changes to the owner’s equity in the investee’s net assets accounted and recognized using the equity method other than the net profit or losses, other comprehensive earnings and profit distribution, shall not be accounted, until the investment is disposed, at which time, it shall be carried over to the current profits or losses. 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 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. Where a merger of enterprises not under the same control is realized through multiple transactions step by step, if these transactions belong to a package transaction, each transaction shall be accounted as a transaction to obtain the right to control; if these transactions do not belong to a package transaction, and the equity investment held before the date of M&A is accounted using the equity method, the sum of the carrying value of the equity investment in the acquiree held before the date of the acquisition, plus the new investment costs on the date of the acquisition shall be the initial investment costs of the investment; other comprehensive earnings of the equity investment held before the date of acquisition accounted and recognized using the equity method shall be accounted on the same basis as the investee directly disposes relevant assets or liabilities when the investment is disposed. If the equity investment held before the date of M&A is recognized using the financial tool and accounted using the measurement criterion, the sum of the fair value of the equity investment on the date of M&A plus the new investment costs shall be the initial investment costs at the date of M&A. The difference between the fair value and carrying value of the held equity and changes to the accumulated fair value charged against other comprehensive earnings shall be fully converted the current investment earnings at the date of M&A. 3. Relevant costs incurred from the business combination 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 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. Methods for preparing consolidated financial statements 1. Consolidation scope The scope of consolidated financial statements shall be confirmed based on the control. All subsidiaries (including individual entities controlled by the Company) of the Company shall be included into the consolidated financial statement. 2. Consolidation process The Company based on the financial statements of itself and its subsidiaries, in line with other relevant information, prepare the consolidated financial statements. The consolidated financial statements the Company prepare was considered the whole enterprise group as a accountant entity, in line with the requirement of presentation, recognition and calculation in ASBE and a uniform accountant policies, reflect the financial situation, operation results and cash flows of the whole enterprise group. 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. 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 in owners’ equity are offset. If standing at the point of view of enterprise group consolidated financial statement, and its recognition of common trade differ from the accounting entity of Company or subsidiary, adjust it from the point of view of the enterprise group. Minority shareholders’ portions of equities and income in subsidiaries shall be separately stated respectively under owners’ 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 of owner’s equity, the balance shall offset against the minority shareholder’s equity. For subsidiary obtained by business combination under same control, adjust the financial statement on the base of book value of assets, liabilities (including goodwill formed by the financial control party purchasing the subsidiary) in financial statement of final control party. For subsidiary obtained by business combination not under same control, adjust the financial statement on the base of identifiable net assets on purchase date 1. Increasing the subsidiaries or business 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 since the control party start to control. Owning to the reasons such as the additional investment, for the subsidiaries could execute control on the investees under the same control, should be regard as the individuals participated in the combination that to execute adjustment by existing as the current state when the ultimate control party began to control. For the equity investment held before acquiring the control right of the combined parties, the confirmed relevant gains and losses, other comprehensive income and the changes of other net assets since the date of the earlier one between the date when acquiring the original equity right and the date when the combine parties and combined ones were under the same control to the combination date, should be respectively written down and compared with the beginning balance of retained earnings or the current gains and losses during the statement period. During the reporting period, for the added subsidiary companies for business combination note 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 purchase date to the end of reporting year into consolidated income statement; and shall include the cash flow of the subsidiary companies from purchase date to the reporting period into the consolidated cash flow statement. Owning to the reasons such as the additional investment that the subsidiaries could execute the control of the investees under different control, the Company shall re-measure the equity interests in the acquiree held by it before the acquisition date according to the equity interests’ 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 which involved with the other comprehensive profits and changes of the other owners’ equities except for the net gains and losses, other comprehensive profits as well as the profits distribution under the measurement of equity method before the acquisition date involves other comprehensive incomes, the relevant other comprehensive incomes and the changes of the other owners’ equities are restated as investment gains for the period which the acquisition date belongs to, with the exception of the other comprehensive incomes occurred because of the changes of net liabilities or net assets of the defined benefit pension plans be re-measured for setting by the investees. 2. Disposal of the subsidiaries or business 1) General disposing method 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, plus the fair value of the remaining equities, less the Company’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. Where the equity interests in the subsidiary held by the Company which involved with the other comprehensive profits and changes of the other owners’ equities except for the net gains and losses, other comprehensive profits as well as the profits distribution when losing control, the relevant other comprehensive incomes and the changes of the other owners’ equities are restated as investment gains for current period , with the exception of the other comprehensive incomes occurred because of the changes of net liabilities or net assets of the defined benefit pension plans be re-measured for setting by the investees. 2) Step by step disposing the subsidiaries Where the Company losses control on its original subsidiaries due to step by step disposal of equity investments through multiple transactions, all the transaction terms, conditions and economic impact of the disposal of subsidiaries’ equity investment are in accordance with one or more of the following conditions, which usually indicate the multiple transactions should be considered as a package deal for accounting treatment: A. The transaction was set up in the same time or had considered the influence to each others; B. The transaction only stand as a whole, a perfect commercial result can be arrived. C. A transaction incurred depends on at least one transaction occurred; D. A transaction is not economical, however, together with other transaction are economical. When disposing each transaction of the Company losses control on its subsidiaries due to disposal of equity investments belonging to a package deal, should be considered as a transaction and conduct accounting treatment. However, Before losing control, every disposal cost and corresponding net assets balance of subsidiary of disposal investment are confirmed as other comprehensive income in consolidated financial statements, which together transferred into the current profits and losses in the loss of control , when the Company losing control on its subsidiary. When disposing each transaction of the Company losses control on its subsidiaries due to disposal of equity investments not belonging to a package deal, before which losing the control right, should execute the accounting disposal according to the partly dispose the equity investment of the subsidiaries under the situation not losing the control right; when losing the control right, should execute accounting disposal according to the general disposing method disposal of the subsidiaries. 3. Purchasing minority equities of the subsidiaries If there is any difference between the newly obtained long-term equity investment due to the Company’s acquisition of minority interests and the Company’s share of identifiable net assets which began to be calculated from the purchase date (or the combination date) in the subsidiary calculated according to the newly increased shareholding ratio, 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. 4. Disposing the equity investment of the subsidiaries under the situation not losing the control right The differences between the disposal income due to the Company’s disposal of some equity investments in a subsidiary without losing the control over the subsidiary and the Company’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. 7. Classification of joint arrangements and accounting treatment of joint operations 8. 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 “cash equivalents” 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. 9. Foreign currency businesses and translation of foreign currency financial 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. On balance sheet 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. If it belongs available for sale foreign currency non-monetary items, the difference form of exchange record into other comprehensive income 2. Translation for foreign currency financial statements All the assets and liabilities items should be translated as CNY according to the basic rate of the spot rate on the balance sheet date; All the equity item except " Undistributed profits" item, other item adopt spot exchange rate to exchange. Income and cost item in profit statement, adopt average exchange rate of opening period and closing period. The translation balance of foreign financial statement incurred in line with the aforesaid translation, recorded into other comprehensive income. When disposing an overseas business, the Company shall shift the balance, which is presented under the items of the owner’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. When disposing part of equity investment or the decrease of holding of oversea operating share equity proportion but not losing control of the oversea operation due to other reason, the translation reserve related to disposal part of oversea operation will belong to the translation balance of minority shareholders, and not transfer into current profits or losses. When disposing part of equity of joint venture or association enterprise oversea operation, the translation reserve related to the oversea operation will transfer into current profits or losses in line with the disposal proportion 10. 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: 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; the investments which will be held to their maturity; loans and the account receivables; financial assets available for sale; and other financial liabilities. 2. Recognition basis and calculation method of financial instrument 1. Financial assets (liabilities) measured by fair value and the changes included in the current gains and losses The financial assets (or financial liabilities) that are measured by fair value with its change s recognized in the current profits and losses, including the transactional financial assets or financial liability and the financial assets or financial liabilities that are directly designated to be measured by fair value with its change recognized in the current losses and profits. Transactional financial assets or financial liabilities mean the financial assets or financial liabilities that meet any one of the following conditions: 1) The purpose of obtaining the financial assets or financial liabilities is to sell, repurchase or redeem it in a short time; 2) It is a part of the identifiable combination of financial instrument that the company manages together and there is objective evidence of a recent pattern of short-term profit making; 3) It belongs to the derivative financial instrument, but is designated as the derivative instrument of valid arbitrage instrument or belongs to the derivation instrument of financial guarantee contract, or it is connected to the equity instrument investment for which there is no quotation in active market and its fair value cannot be reliably measured, the derivative tool that shall be settled through delivering the equity instrument excluded. Only if one of the following conditions is met, could the financial assets or financial assets be designated as the financial assets or financial liability that shall be measured by fair value with changes recognized in profit or loss in the period: 1) The designation is able to eliminate or obviously reduce the discrepancies in the recognition or measurement of relevant gains or losses arising from the different basis of measurement of the financial assets or financial liability; 2) The official written document of risk management or investment strategies of the enterprise concerned have described that the said combination of financial assets, the combination of financial liabilities, or the combination of financial assets and financial liabilities will be managed and evaluated on the basis of their fair values and will be reported to the key management personnel. 3) The mixed instruments include one or more embedded derivative instrument, unless the embedded derivative instrument does not materially change the cash flow of the mixed instrument, or it is obvious that the embedded instrument shall not be split from the relevant mixed instrument; 4) The mixed instrument that include the embedded derivative instrument that shall be split but cannot be separately measured when it is obtained or on the subsequent date of balance sheet. For the financial assets or financial liabilities that is measured by fair value with its change recognized in the current profits or losses, the company will use the fair value (deducting the cash dividend that is announced but not issued, or the bond interest that is due but has not be claimed) as the initially recognized amount, and the related transaction costs shall be recognized in the current profits and losses. The interest or cash dividend obtained during the holding period shall be recognized as the investment earning, and at the end of the period, the change in fair value shall be recognized in the current profits and losses. At the time of disposal, the difference between its fair value and the initially recognized amount shall be recognized as the investment earnings, and at the same time, the change in fair value shall be recognized as the profit or loss. 2. Accounts receivable The creditor’s rights arising from selling goods or providing service by the Company and other creditor’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. 3. Available-for-sale financial assets Available-for-sale financial assets were referred to the non-derivative financial assets available for sale, as well as the financial assets other than the other financial asset classes in the initial recognition. When available-for-sale financial assets are acquired, its initial amount shall be recognized at the fair value (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. Interest or cash dividend received in holding period were recognized as investment income. Profits or losses from the change in fair value of available-for-sale financial assets except impairment losses and translation balance form foreign monetary financial assets, directly record into other comprehensive income. When disposing available-for-sale financial assets recorded the difference between the price and the book value of the financial assets into investment profits or losses, meanwhile, roll out the disposal part of the accumulative amount of change in fair value originally and directly recorded into other comprehensive income and record into investment profits or losses. The equity instrument investment without offer and its fair value without reliable calculation, and derivative financial assets linked to and settled by the equity instruments, measured at cost. 4. 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: (1) The carrying amount of the transferred financial asset; (2) The aggregate consideration received from the transfer, and the accumulative amount of the changes of the fair value originally recorded in the owner’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: (1) The carrying amount of the portion whose recognition has stopped; (2) 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 the owner’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. 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 the Company’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. Initially obtained or derivative financial assets or the market transaction price of bared financial liabilities was considered as the basis of fair value; Where there is no active market for a financial assets and financial liabilities, the Company concerned shall adopt value appraisal techniques to determine its fair value. When evaluating, the Company adopt the valuation technique with sufficient useful data and supported by other information which suitable for the current situation, choose a input in concern with the characteristics of assets or liabilities considered in relevant assets or liabilities transaction with the market players, and as much as possible, give prior to using the relevant observable input under the situation that, the observable input value or it is not feasible to obtain, use unobservable input value. 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. The objective evidences of impairment provision of financial assets include but not limited to: 1. Issuer or debtor had serious financial difficulties: 2. The debtor violates the items of the contact, such as violate a treaty or overdue to repay the interest or principal, etc; 3. The creditor considering the factors of economy or law makes concession to the debtor who had serious financial difficulty; 4. The debtor probably may go out of business or had other financial recombination; 5. Due to the issuer had serious financial difficulty; the financial assets cannot continue to trade in the active market; 6. The cash flow of a kind of asset in a group of financial assets decrease or not was beyond recognition, however, after conducting the overall evaluation in line with the public data, the estimate cash flow of the group of financial assets actually decrease and gaugeable since initial recognition, if the repay ability of the debtor steadily worsened, or the increase of unemployment rate, the decrease in the price of guaranty or the industry downturn that the district or country the debtor in, etc; 7. The great disadvantage change in technology, market, economy or legal environment that operation place that issuer of equity instrument locate at, which lead to the irrecoverable of investment cost of the equity instrument investors; 8. The fair value occurred seriously or non-transient decrease; The specific impairment provision methods of financial assets were as follows: (1) Provision for impairment of available-for-sale financial assets: On balance sheet date, the Company executes individually inspection on each available-for-sale financial statement, if the fair value of the equity instruments which invests on the balance sheet date is lower than its initial investment cost for more than 50% (including 50%) or lower than its initial investment cost for the duration time for more than 1 year (including 1 year), which indicates that it had occurred impairment; if the fair value of the equity instruments which invests on the balance sheet date is lower than its initial investment cost for more than 20% (including 20%) but not reaches at 50%, the Company will comprehensively considerate the other relevant factors such as the price volatility etc. and will judge the equity investment whether had occurred impairment. The aforesaid "cost" recognized in line with the initial investment cost of available for sale financial instrument deducting principal recovered, amount amortized and the impairment losses recorded into profits or losses. “fair value" recognized through the closing price of Securities Exchange at period end unless the investment of available for sale equity instrument was in the restricted stock trade period. For investment of available for sale equity instrument was in the restricted stock trade period, recognized in line with the closing price of Securities Exchange at period end deducting the risk of market player cannot sell the equity instrument, thus, require compensation. Where a sellable financial asset is impaired, even if the recognition of the financial asset has not been terminated, the accumulative losses arising from the decrease of the fair value of the owner’s equity which was directly included shall be transferred out of the owners’ equities and recorded into the profits and losses of the current period. The accumulative losses that are transferred out shall be the balance obtained from the initially obtained costs of the sold financial asset after deducting the principals as taken back, the current fair value and the impairment-related losses as was recorded into the profits and losses of the current period. 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 as for the impairment-related losses incurred to a sellable equity instrument investment, should be reversed by equity when the value raised of the equity instruments; however, the impairment-related losses incurred to an equity instrument investment for which there is no quoted price in the active market and whose fair value cannot be reliably measured, or incurred to a derivative financial asset which is connected with the said equity instrument and which shall be settled by delivering the said equity instrument, may not be reversed. 7. The offset of financial assets and financial liabilities Financial assets and financial liabilities are shown separately in balance sheet However, if they satisfy the following conditions, shown the net amount in the balance sheet after the offset; (1) The Company had legal rights of offsetting the recognition amount, and the legal right is executable in recently; (2) The Company plans to settle at net amount, or meanwhile realize the financial assets and pay off the financial liabilities. 6. Taxation 1. Main taxes and tax rate Category of taxes Tax basis Tax rate Income of sale of goods and rendering VAT 17% labor services Business tax Taxable turnover 5% Urban maintenance and construction tax Turnover tax actually paid 7% Enterprise income tax Income tax payable 25% 70% of the original value of the property Property tax 1.2% considered as tax base Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate Name Income tax rate Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. 15% Zhuhai Jinji Chemicals Co., Ltd. 15% Pearl River Color Printing Co., Ltd. of Chancheng District, Authorize the taxable income of 7% of the total amount of the Foshan income and the income tax rate is still 25% 2. Tax preference 1. 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, the Company’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.: GF2012440000283, 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 was 15%. According to the Circular on issuing the First Name List of Hi-tech Enterprise through the review in Guangdong Province for Y2015 (YKGS (2015) Document No. 24) issued by Science & Technology Department of Guangdong Province , Zhuhai S.E.Z Hongta Renheng Paper Co., Ltd. passed First Batch of Hi-tech Enterprise in Guangdong Province for Y2015, thus, whose CIT rate was 15%. 2. 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, Department of Finance of Guangdong Province, Guangdong Provincial Office, SAT, Guangdong Local Taxation Bureau, the sub-subsidiary of the Company Zhuhai Jinji Chemicals Co., Ltd. had passed the affirmation of the second name list of high-tech enterprise of 2013 and the gained the Certification of Hi-tech Enterprise (the Certification No.: GR201344000618 with the validity for 3 years). Thus the sub-subsidiary Zhuhai Jinji Chemicals Co., Ltd. had been enjoyed the relevant preferential policies of the high-tech enterprise of the state for continuous three years since 2013 (including 2013), with the corporate income tax be calculated according to 15% of the taxable income. 3. Other According to business income tax rate of sub-subsidiary Pearl River Color Printing Co., Ltd. of Chancheng District, Foshan as at 7% of total revenue, income tax rate remained 25%. 7. Notes on major items in consolidated financial statements of the Company 1. Monetary funds Unit: RMB Yuan Item Closing balance Opening balance Cash on hand 312,658.48 283,310.72 Bank deposits 185,647,665.76 110,640,137.90 Other monetary funds 323,746,286.83 363,625,954.94 Total 509,706,611.07 474,549,403.56 Other notes: Of which the lists of restricted monetary capital were as followed: Item Closing balance Opening balance Deposit of bank acceptance 57,756,239.27 5,614,583.26 L/C Guarantee deposits 2,858,600.00 115,119,272.90 Performance bond 20,000,000.00 91,331,459.72 Fixed time deposit or call deposits used for 243,077,190.17 149,235,464.68 guarantee Other use restricted deposits 54,257.39 --- Total 323,746,286.83 361,300,780.56 2. Financial assets measured by fair value and the changes be included in the current gains and losses Unit: RMB Yuan Item Closing balance Opening balance Transactional financial assets 1,741,500.00 Total 1,741,500.00 Other notes: The Company’s subsidiary, Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. signed Forward Exchange Rate Contract with the bank, considering 31 Dec. 2015 as the fair value of exchange rate calculation. 3. Derivative financial assets □ Applicable √ Inapplicable 4. Notes receivable (1)Notes receivable listed by category Unit: RMB Yuan Item Closing balance Opening balance Bank acceptance bill 265,679,151.34 345,827,854.88 Total 265,679,151.34 345,827,854.88 (2) Notes receivable pledged by the Company at the period-end Unit: RMB Yuan Item Amount Bank acceptance bill 14,508,279.00 Total 14,508,279.00 (3) Notes receivable which had endorsed by the Company or had discounted and had not due on the balance sheet date at the period-end Unit: RMB Yuan Amount of recognition termination at the Amount of not terminated recognition at Item period-end the period-end Bank acceptance bill 641,644,169.70 Total 641,644,169.70 (4) Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or agreement Unit: RMB Yuan Amount of the notes transferred to accounts receivable at the Item period-end Other notes: 5. Accounts receivable (1) Accounts receivable classified by category Unit: RMB Yuan Closing balance Opening balance Book balance Bad debt provision Book balance Bad debt provision Category Withdra Book Proportio wal Proportio Withdrawal Book value Amount Amount value Amount Amount n proportio n proportion n Accounts receivable withdrawal of bad 793,480, 6,249,28 787,230,9 839,154 5,237,919 833,916,13 debt provision of by 95.26% 0.79% 93.28% 0.62% 231.46 0.00 51.46 ,059.30 .48 9.82 credit risks characteristics: Accounts receivable with insignificant single amount for 39,491,7 35,397,4 4,094,354 60,446, 56,384,48 4,062,447.8 4.74% 89.63% 6.72% 93.28% which bad debt 72.33 18.00 .33 932.71 4.85 6 provision separately accrued 832,972, 41,646,6 791,325,3 899,600 61,622,40 837,978,58 Total 100.00% 5.00% 100.00% 6.85% 003.79 98.00 05.79 ,992.01 4.33 7.68 Accounts receivable with significant single amount for which bad debt provision separately accrued at the 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 Aging Account receivable Bad debt provision Withdrawal proportion Subentry within 1 year 1-3 months 705,325,789.75 3-12 months 75,724,627.84 3,785,722.07 5.00% Subtotal of within 1 year 781,050,417.59 3,785,722.07 5.00% 1 to 2 years 7,863,138.98 786,313.90 10.00% 2 to 3 years 2,020,311.38 404,062.28 20.00% Over 3 years 2,546,363.51 1,273,181.75 50.00% Total 793,480,231.46 6,249,280.00 0.79% Notes of the basis of recognizing the group: 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: (2) Bad debt provision withdrawal, reversed or recovered in the report period The withdrawal amount of the bad debt provision during the reporting period was of RMB 15,265,232.01; the amount of the reversed or collected part during the reporting period was of RMB 35,240,938.34. Significant amount of reversed or recovered bad debt provision Unit: RMB Yuan Name of the entity Amount Method The withdrawal amount of the bad debt provision during the reporting period was of RMB15,265,232.01; the bad debt provision roll out was of RMB35,240,938.34, mainly was the disposal of subsidiary, Foshan Chengtong Paper Co., Ltd., the roll out bad debt provision was the change of consolidated scope. The note of disposal of subsidiary, see Note. VIII. Change in consolidated scope (3) Particulars of the actual verification of accounts receivable during the reporting period Unit: RMB Yuan Item Amount Naught Of which: significant actual verification of accounts receivable Unit: RMB Yuan Whether occurred Name of the entity Nature Amount Reason Procedure because of related party transactions Notes: No such cases in reporting period. (4) Top five of account receivable of closing balance collected by arrears party Name of the entity Closing balance Proportion% Bad debt provision withdrawn Customer A 59,392,154.99 7.13 636,583.92 Customer B 52,052,532.44 6.25 --- Customer C 28,197,019.70 3.39 223,824.03 Customer D 25,411,072.23 3.05 14,367.70 Customer E 22,938,936.19 2.75 696,558.30 Total 187,991,715.55 22.57 1,571,333.95 (5) Derecogniziton of account receivable due to the transfer of financial assets (6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable Other notes: 6. Prepayment (1) List by aging analysis: Unit: RMB Yuan Closing balance Opening balance Aging Amount Proportion Amount Proportion Within 1 year 100,305,038.17 86.25% 169,346,566.63 93.08% 1 to 2 years 14,339,162.73 12.33% 12,302,740.61 6.76% 2 to 3 years 1,295,593.58 1.12% 71,240.00 0.04% Over 3 years 350,902.50 0.30% 211,980.00 0.12% Total 116,290,696.98 -- 181,932,527.24 -- Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time: Name of the entity Closing balance Aging Reason Guangzhou Devotion Heat Energy 10,889,644.79 1-2 years Payment in advance of trading in Technology Co., Ltd. installment deduction (2) Top 5 of the closing balance of the prepayment collected according to the prepayment target Name of the entity Closing balance Proportion(%) Time Reason Customer A 27,884,562.96 23.98 1-3 months Did not arrived in the settlement period Customer B 17,599,079.27 15.13 1-3 months Did not arrived in the settlement period Customer C 13,789,593.57 11.86 1-3 months Did not arrived in the settlement period Customer D 10,889,644.79 9.36 1-2 years Did not arrived in the settlement period Customer E 10,643,357.00 9.15 1-3 months Did not arrived in the settlement period Total 80,806,237.59 69.48 Other notes: 7. Interest receivable (1) Category of interest receivable Unit: RMB Yuan Item Closing balance Opening balance Fixed time deposits 5,233,556.60 Total 5,233,556.60 (2) Significant overdue interest Whether occurred Entity Closing balance Overdue time Overdue reason impairment and its judgment basis Other notes: 8. Dividend receivable (1) Dividend receivable Unit: RMB Yuan Item (or investees) Closing balance Opening balance (2) Significant dividend receivable aged over 1 year Unit: RMB Yuan Item (or investees) Closing balance Aging Reason Whether occurred impairment and its judgment basis Other notes: 9. Other accounts receivable (1) Other account receivable classified by category Unit: RMB Yuan Closing balance Opening balance Book balance Bad debt provision Book balance Bad debt provision Category Withdra Book Proportio wal Proportio Withdrawal Book value Amount Amount value Amount Amount n proportio n proportion n Other accounts receivable with insignificant single 18,610,6 18,610,6 17,874, 17,874,41 10.93% 100.00% 13.68% 100.00% amount for which 29.25 29.25 414.64 4.64 bad debt provision separately accrued Other accounts receivable withdrawn 146,532, 2,669,92 143,862,3 107,239 790,904.6 106,448,71 bad debt provision 86.03% 1.83% 82.09% 0.74% 231.59 3.43 08.16 ,618.76 8 4.08 according to credit risks characteristics Other accounts receivable with insignificant single 5,178,29 5,178,29 5,529,8 5,429,851 3.04% 100.00% 4.23% 98.19% 100,000.00 amount for which 0.54 0.54 51.77 .77 bad debt provision separately accrued 170,321, 26,458,8 143,862,3 130,643 24,095,17 106,548,71 Total 100.00% 15.53% 100.00% 18.44% 151.38 43.22 08.16 ,885.17 1.09 4.08 Other accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end √ Applicable □ Inapplicable Unit: RMB Yuan Closing balance Other accounts Other accounts receivable Bad debt provision Withdrawal proportion Withdrawal reason receivable Hong Kong Hang Fung Holdings Limited Co., 12,610,629.25 12,610,629.25 100.00% Not expected to recover Ltd. Zhuhai Yidesheng 6,000,000.00 6,000,000.00 100.00% Not expected to recover Industrial Co., Ltd. Total 18,610,629.25 18,610,629.25 -- -- In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision: √ Applicable □ Inapplicable Unit: RMB Yuan Closing balance Aging Other accounts receivable Bad debt provision Withdrawal proportion Subentry within 1 year 1-3 months 114,030,138.17 4-12 months 27,488,755.67 1,374,437.79 5.00% Subtotal of within 1 year 141,518,893.84 1,374,437.79 5.00% 1 to 2 years 2,165,029.47 202,234.77 9.34% 2 to 3 years 1,197,555.91 229,511.17 19.16% Over 3 years 1,650,752.37 863,739.70 52.32% Total 146,532,231.59 2,669,923.43 1.83% Notes: In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision □ Applicable √ Inapplicable In the groups, other accounts receivable adopting other methods to withdraw bad debt provision: □ Applicable √ Inapplicable (2) Bad debt provision withdrawal, reversed or recovered in the report period The withdrawal amount of the bad debt provision during the reporting period was of RMB6,327,755.89; the amount of the reversed or collected part during the reporting period was of RMB3,964,083.76. Significant amount of reversed or recovered bad debt provision; Unit: RMB Yuan Name of the entity Reversed or collected amount Method 1. Mainly was the disposal of subsidiary, Foshan Chengtong Paper Co., Ltd., the roll out bad debt provision was the change of consolidated scope. The note of disposal of subsidiary, see Note. VIII. Change in consolidated scope (3) Particulars of the actual verification of other accounts receivable during the reporting period Unit: RMB Yuan Item Amount Naught Of which: significant actual verification of other accounts receivable Unit: RMB Yuan Whether occurred Name of the entity Nature Amount Reason Procedure because of related party transactions Notes of write-off other accounts receivable: (4) Other account receivable classified by account nature Unit: RMB Yuan Nature Closing book balance Opening book balance Margin 4,341,696.10 1,041,399.82 Pretty cash 1,862,991.83 1,863,927.83 Freight and miscellaneous charges on 3,036,100.63 2,383,900.07 behalf Loans 31,209,797.91 Amount of equity transfer 105,000,000.00 Land purchase and storage 64,499,000.00 Other intercourse funds 24,870,564.91 60,855,657.45 Total 170,321,151.38 130,643,885.17 (5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party Unit: RMB Yuan Closing balance of Name of the entity Nature Closing balance Aging Proportion% bad debt provision Lion Capital Amount of equity Management Co., 105,000,000.00 1-3 months 61.65% transfer Ltd. Ningxia Shunhao Chemical Product Loan 25,209,797.91 4-12 months 14.80% 1,260,489.90 Sales Co., Ltd. Hong Kong Hang Fung Holdings Intercourse funds 12,610,629.25 Over 3 years 7.40% 12,610,629.25 Limited Co., Ltd. Zhuhai Yidesheng Loan 6,000,000.00 Over 3 years 3.52% 6,000,000.00 Industrial Co., Ltd. Bureau of land and Margin 3,000,000.00 1-3 months 1.76% resources of Pinghu Total -- 151,820,427.16 -- 89.13% 19,871,119.15 (6) Account receivable involving government subsidies Unit: RMB Yuan Project of government Estimated recovering Name of the entity Closing balance Closing aging subsidies time, amount and basis (7) Other account receivable derecognized due to the transfer of financial assets (8) Amount of transfer other account receivable and assets and liabilities formed by its continuous involvement Other notes: 10. Inventory (1) Category of inventory Unit: RMB Yuan Closing balance Opening balance Item Falling price Falling price Book balance Book value Book balance Book value reserves reserves Raw materials 216,300,558.09 13,733,332.71 202,567,225.38 445,735,602.35 7,809,558.43 437,926,043.92 Goods in process 68,497,349.74 68,497,349.74 110,950,017.57 110,950,017.57 Inventory goods 453,400,085.67 11,583,848.86 441,816,236.81 405,756,387.77 12,476,310.64 393,280,077.13 Total 738,197,993.50 25,317,181.57 712,880,811.93 962,442,007.69 20,285,869.07 942,156,138.62 (2) Falling price reserves of inventory Unit: RMB Yuan Increase Decrease Item Opening balance Closing balance Withdrawal Other Reverse or Other write-off Raw materials 7,809,558.43 5,923,774.28 13,733,332.71 Inventory goods 12,476,310.64 850,773.02 1,743,234.80 11,583,848.86 Total 20,285,869.07 6,774,547.30 1,743,234.80 25,317,181.57 (3) Notes of the closing balance of the inventory which includes capitalized borrowing expenses (4) Completed unsettled assets formed from the construction contact at the period-end Unit: RMB Yuan Item Amount Other notes: 11. Assets divided as held-to-sold Unit: RMB Yuan Estimated disposal Item Closing book value Fair value Estimated disposal time expense Other notes: 12. Non-current assets due within 1 year Unit: RMB Yuan Item Closing balance Opening balance Other notes: 13. Other current assets Unit: RMB Yuan Item Closing balance Opening balance The VAT deduction 17,147,074.25 8,212,679.56 Total 17,147,074.25 8,212,679.56 Other notes: 14. Available-for-sale financial assets (1) List of available-for-sale financial assets Unit: RMB Yuan Closing balance Opening balance Item Depreciation Depreciation Book balance Book value Book balance Book value reserves reserves Available-for-sale equity 288,700.00 288,700.00 113,558.00 113,558.00 instruments Measured by cost 288,700.00 288,700.00 113,558.00 113,558.00 Total 288,700.00 288,700.00 113,558.00 113,558.00 (2) Available-for-sale financial assets measured by fair value at the period-end Unit: RMB Yuan Available-for-sale equity Available-for-sale debt Category Total instruments instruments (3) Available-for-sale financial assets measured by cost at the period-end Unit: RMB Yuan Book balance Depreciation reserves Shareholdi Cash ng bonus of Investee Opening Closing Opening Closing proportion the Increase Decrease Increase Decrease period period period period among the reporting investees period China Guangfa 113,558.00 175,142.00 288,700.00 0.00% Bank Co., Ltd Total 113,558.00 175,142.00 288,700.00 -- (4) Changes of the impairment of the available-for-sale financial assets during the reporting period Unit: RMB Yuan Available-for-sale equity Available-for-sale debt Category Total instruments instruments (5) Relevant notes of the fair value of the available-for-sale equity instruments which seriously fell or temporarily fell but not withdrawn the impairment provision Unit: RMB Yuan Item of Falling range of Continued falling Withdrawn Reason of not Investment cost Closing fair value available-for-sale the fair value time (month) impairment withdrawn the equity against the cost amount impairment instruments Other notes: The Company received 0.0004248% share equity of China Guangfa Bank Co., Ltd held by the subsidiary Foshan Chengtong Paper Co., Ltd. On 31 Jul. 2015, the both parties had signed Transfer Agreement, Foshan Chengtong Paper Co., Ltd. transfer 50,856 shares of China Guangfa Bank Co., Ltd. at evaluation price of RMB288,700.00 to the Company, the balance of book value of available-for-sale financial assets increased RMB175,142.00. 15. Investment held-to-maturity (1) List of investment held-to-maturity Unit: RMB Yuan Closing balance Opening balance Item Depreciation Depreciation Book balance Book value Book balance Book value reserves reserves (2) Significant held-to-maturity investment at the period-end Unit: RMB Yuan Bond item Book value Nominal interest rate Actual interest rate Due date (3) Re-classified held-to-maturity investment during the reporting period Other notes: 16. Long-term accounts receivable (1) Long-term accounts receivable Unit: RMB Yuan Closing balance Opening balance Discount rate Item Bad debt Bad debt Book balance Book value Book balance Book value range provision provision 490,240,600.4 490,240,600.4 Loan 1 1 490,240,600.4 490,240,600.4 Total -- 1 1 (2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial assets (3) The amount of the assets and liabilities formed by the transfer and the continues involvement of long-term accounts receivable Other notes: In reporting period, the Company disposes its subsidiary Foshan Chengtong Paper Co., Ltd. which shall pay RMB490,240,600.41 to the Company. In line with the Creditor’s Rights and Debts Settlement Agreement signed, since 1 Jan. 2016, the Company charge interest of capital usage once a quarter from Foshan Chengtong Paper Co., Ltd., in according to the same period of three-year benchmark lending interest rate on a regular basis issued by People’s Bank of China. Foshan Chengtong Paper Co., Ltd. had paid all the principal and interest before 31 Dec. 2019. 17. Long-term equity investment Unit: RMB Yuan Increase/decrease in reporting period Investme Closing Adjustme nt profit Withdraw balance Additiona nt of Declarati Opening Negative and loss Other n Closing of Investee l other on of cash balance investmen recognize equity impairme Other balance impairme investmen comprehe dividends t d under changes nt nt t nsive or profits the equity provision provision income method I. Joint ventures II. Associated enterprises Guangdo ng Chengton 8,228,758 -24,203.9 369,125.8 7,835,428 g .48 4 9 .65 Logistics Co., Ltd. Chengton 238,518,5 15,735,22 254,253,7 g Finance 74.19 3.61 97.80 Co., Ltd. 246,747,3 15,711,01 369,125.8 262,089,2 Subtotal 32.67 9.67 9 26.45 246,747,3 15,711,01 369,125.8 262,089,2 Total 32.67 9.67 9 26.45 Other notes: (1) In, 2012, the subsidiary of the Company Zhuhai S.E.Z.Hongta Renheng Paper Co., Ltd. held 24% of the shares of Guangdong Chengtong Logistics Co., Ltd., which had significant influences and measured by equity method. On 31 Mar. 2013, Guangdong Chengtong Logistics Co., Ltd. executed the shares withdrawal and assets reduction [(Singapore) Renheng Industry Co., Ltd. (occupied shares 25%) withdrawn the equity of Guangdong Chengtong Logistics Co., Ltd.]. Thus, the shareholding proportion of Guangdong Chengtong Logistics Co., Ltd. by the subsidiary of the Company Zhuhai S.E.Z.Hongta Renheng Paper Co., Ltd. rose from 24% to 32%, which still had significant influences and measured by equity method. (2) On 23 Dec. 2013, the Company reviewed and approved Proposal on the Related Transaction of Purchasing 20% Equity of Chengtong Finance Co., Ltd. held by China Project Ltd in 2013, of which the company had signed the Equity Transfer Agreement with China Paper Industry Co., Ltd., which planed to transfer 20% equity of Chengtong Finance Co., Ltd. held by China Paper Industry Investment Co., Ltd. with the equity transfer price of RMB 231,450,200 after the negotiation by both parties. Chengtong financial Co., Ltd. had changed its shareholder registration on 23 Jun. 2014. Thus, since Jul. 2014, Chengtong financial Co., Ltd. held equity proportion was 20%, calculated at equity method. Thus the Company held 20% equity of Chengtong Finance Co., Ltd. since Jul. 2014 and be measured by equity method. 18. Investment property (1) Investment property adopted the cost measurement mode √ Applicable □ Inapplicable Unit: RMB Yuan Item Houses and buildings Land use right Construction in progress Total I. Original book value 20,444,648.02 20,444,648.02 1. Opening balance 20,444,648.02 20,444,648.02 2. Increased amount of the period (1) Outsourcing (2) Transfer of inventory\fixed assets\project under construction (3) Increased from enterprise merger 3. Decreased amount of the period (1) Disposal (2) Other transfer 4. Closing balance 20,444,648.02 20,444,648.02 II. Accumulative depreciation and accumulative amortization 1. Opening balance 7,838,740.94 7,838,740.94 2. Increased amount 660,780.06 660,780.06 of the period (1) Withdrawal or 660,780.06 660,780.06 amortization 3. Decreased amount of the period (1) Disposal (2) Other transfer 4. Closing balance 8,499,521.00 8,499,521.00 III. Depreciation reserves 1. Opening balance 2. Increased amount of the period (1) Withdrawal 3. Decreased amount of the period (1) Disposal (2) Other transfer 4. Closing balance IV. Book value 1. Book value of the 11,945,127.02 11,945,127.02 period-end 2. Opening book 12,605,907.08 12,605,907.08 value (2) Investment property adopted fair value measurement mode □ Applicable √ Inapplicable (3) Details of investment property failed to accomplish certification of property Unit: RMB Yuan Item Book value Reason Other notes: 19. Fixed assets (1) List of fixed assets Unit: RMB Yuan House and buildings Machinery Transportation Other electronic Item Total equipment equipment I. Original book value 1. Opening 1,266,791,313.14 3,430,709,549.60 61,601,986.77 99,853,876.75 4,858,956,726.26 balance 2. Increased 122,428,492.26 81,637,536.83 2,306,129.04 26,946,766.09 233,318,924.22 amount of the period (1) Purchase 2,679,781.80 3,782,896.78 2,306,129.04 26,946,766.09 35,715,573.71 (2) Transfer of project under 119,748,710.46 77,854,640.05 197,603,350.51 construction (3) Increased from enterprise merger 3. Decreased 189,689,233.65 750,910,717.54 9,111,490.75 26,701,454.09 976,412,896.03 amount of the period (1) Disposal or 1,701,582.44 19,595,806.86 3,280,832.17 491,105.41 25,069,326.88 Scrap Other transfer 187,987,651.21 731,314,910.68 5,830,658.58 26,210,348.68 951,343,569.15 4. Closing balance 1,199,530,571.75 2,761,436,368.89 54,796,625.06 100,099,188.75 4,115,862,754.45 II. Accumulative depreciation 1. Opening 379,383,575.27 1,345,967,274.35 44,186,159.05 86,029,051.93 1,855,566,060.60 balance 2. Increased 31,910,546.05 109,328,763.51 4,380,207.11 4,833,752.50 150,453,269.17 amount of the period (1) Withdrawal 31,910,546.05 109,328,763.51 4,380,207.11 4,833,752.50 150,453,269.17 3. Decreased 72,389,693.23 405,865,903.40 5,540,914.68 22,412,372.92 506,208,884.23 amount of the period (1) Disposal or 324,318.26 17,456,591.37 2,752,899.66 441,875.69 20,975,684.98 Scrap Other transfer 72,065,374.97 388,409,312.03 2,788,015.02 21,970,497.23 485,233,199.25 4. Closing balance 338,904,428.09 1,049,430,134.46 43,025,451.48 68,450,431.51 1,499,810,445.54 III. Depreciation reserves 1. Opening 76,679,757.00 76,679,757.00 balance 2. Increased amount of the period (1) Withdrawal 3. Decreased amount of the period (1) Disposal or Scrap 4. Closing balance 76,679,757.00 76,679,757.00 IV. Book value 1. Closing book 860,626,143.66 1,635,326,477.43 11,771,173.58 31,648,757.24 2,539,372,551.91 value 2. Opening book 887,407,737.87 2,008,062,518.25 17,415,827.72 13,824,824.82 2,926,710,908.66 value (2) List of temporarily idle fixed assets Unit: RMB Yuan Accumulative Impairment Item Original book value Book value Notes depreciation provision Naught (3) Fixed assets leased in from financing lease Unit: RMB Yuan Accumulative Item Original book value Impairment provision Book value depreciation Houses and buildings 12,212,610.00 6,292,599.05 5,920,010.95 Machinery equipment 3,160,000.00 2,427,148.94 732,851.06 Total 15,372,610.00 8,719,747.99 6,652,862.01 (4) Fixed assets leased out from operation lease Unit: RMB Yuan Item Closing book value Naught (5) Details of fixed assets failed to accomplish certification of property Unit: RMB Yuan Item Book value Reason Property right certificate was under Houses and buildings 123,343,609.47 processing Other notes: 1. Zhuhai Jinji Chemicals Co., Ltd. under control of the Company, apply to the court for property attachment prior to lawsuit, required close down the inventory of RMB0.75 million of respondent, and all comprehensive buildings (Property right certificate No.YFDZZ No.C5229601) as guarantee, the net book value of comprehensive building was RMB2,449,958.04. 2. Zhuhai Huafeng Paper Co., Ltd. under control of the Company, apply to the court for property attachment prior to lawsuit, required to frozen the bank deposits of the respondent, and close down the land and machinery equipments, Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. mortgaged its housewares locate at Qianshan Jinji Road No. 508 ( QZ No.C5617917), the net book value of the houseware was RMB12,961,474.64. 20. Construction in progress (1) List of construction in progress Unit: RMB Yuan Item Closing balance Opening balance Depreciation Depreciation Book balance Book value Book balance Book value reserves reserves Expansion project for production 119,774,790.92 119,774,790.92 workshop phase III Self -bring heating boiler environmental upgrading 10,419,623.13 10,419,623.13 technical renovation project Advanced wastewater treatment and 3,085,481.43 3,085,481.43 water reuse project BM1 transmission 3,099,922.32 3,099,922.32 2,843,941.12 2,843,941.12 actuator renovation Renovation of BM1multi-disc 2,221,705.07 2,221,705.07 machine BM3 Tetra 4,651,150.58 4,651,150.58 2,163,918.29 2,163,918.29 project Upscale special white cardboard 2,272,891.62 2,272,891.62 2,113,080.67 2,113,080.67 BM4 new project Paper cutter 1,159,264.85 1,159,264.85 project Videojet ink-jet 1,119,000.00 1,119,000.00 printer Huafeng OARS 3,032,611.11 3,032,611.11 library BM3 energy management 1,364,476.46 1,364,476.46 569,613.10 569,613.10 center construction BM3 vacuum pump energy 2,228,316.18 2,228,316.18 12,410.00 12,410.00 saving renovation project Automatic packaging line 7,357,259.18 7,357,259.18 renovation project Latex phase II matching raw 1,025,703.02 1,025,703.02 280,301.88 280,301.88 material tank farm project PP diaphragm 1,043,219.59 1,043,219.59 filter press project Other 2,229,652.72 2,229,652.72 8,446,530.85 8,446,530.85 Total 28,305,202.78 28,305,202.78 154,209,661.31 154,209,661.31 (2) Changes of significant construction in progress Unit: RMB Yuan Of Amount Proporti which: Accumul that on the Capitaliz Other ative transferr estimate amount ation rate Estimate decrease amount Name of Opening ed to Closing d of the Project of the of the Capital d Increase d amount of item balance fixed balance project progress capitaliz interests resources number of the capitaliz assets of accumul ed of the period ed the ative interests period interests period input of the period Advance d wastewat er 4,917,70 3,085,48 943,433. 4,028,91 treatmen 81.93% 100 Other 0.00 1.43 94 5.37 t and water reuse project Self 22,000,0 10,419,6 11,674,9 22,094,5 -bring 100.43% 100 Other 00.00 23.13 41.89 65.02 heating boiler environ mental upgradin g technical renovati on project BM3 Manufac turing 6,000,00 918,359. 4,090,78 5,009,14 83.49% 100 Other executio 0.00 60 1.53 1.13 n system project Expansio n project for color printing 98,100,0 119,774, 29,994,9 149,769, 11,068,9 3,667,24 producti 152.67% 100 7.39% Other 00.00 790.92 27.99 718.91 82.69 3.25 on worksho p phase III Upscale special white 700,000, 2,113,08 159,810. 2,272,89 cardboar 0.22% 0.22 Other 000.00 0.67 95 1.62 d BM4 new project BM3 energy manage 2,572,00 569,613. 794,863. 1,364,47 ment 53.05% 53.05 Other 0.00 10 36 6.46 center construct ion Automat ic 7,003,00 7,357,25 7,357,25 packagin 105.10% 99.00 Other 0.00 9.18 9.18 g line renovati on project BM3 vacuum pump energy 2,600,00 12,410.0 2,215,90 2,228,31 85.70% 85.70 Other saving 0.00 0 6.18 6.18 renovati on project BM3 18,730,0 2,163,91 2,487,23 4,651,15 Tetra 24.83% 24.83 Other 00.00 8.29 2.29 0.58 project BM1 transmis sion 2,600,00 2,843,94 255,981. 3,099,92 119.23% 99.00 Other actuator 0.00 1.12 20 2.32 renovati on PP diaphrag 1,400,00 1,043,21 1,043,21 m filter 74.52% 74.52 Other 0.00 9.59 9.59 press project 865,922, 141,901, 61,018,3 180,902, 22,017,2 11,068,9 3,667,24 Total -- -- -- 700.00 218.26 58.10 340.43 35.93 82.69 3.25 (3) List of the withdrawal of the impairment provision of the construction in progress Unit: RMB Yuan Item Withdrawn amount Reason Naught Other notes: 21. Engineering material Unit: RMB Yuan Item Closing balance Opening balance Other notes: 22. Liquidation of fixed assets Unit: RMB Yuan Item Closing balance Opening balance Other notes: 23. Productive biological assets (1) Productive biological assets adopted cost measurement mode □ Applicable √ Inapplicable (2) Productive biological assets adopted fair value measurement mode □ Applicable √ Inapplicable 24. Oil and gas assets □ Applicable √ Inapplicable 25. Intangible assets (1) List of intangible assets Unit: RMB Yuan Item Land use right Patent right Non-patent right Software and others Total I. Original book value 1. Opening 160,462,312.76 20,181,101.40 6,891,264.42 187,534,678.58 balance 2. Increased 432,003.89 9,981,324.61 1,619,958.84 12,033,287.34 amount of the period (1) Purchase 432,003.89 1,619,958.84 2,051,962.73 (2) Internal R 9,981,324.61 9,981,324.61 &D (3) Increased from enterprise merger 3. Decreased 29,210,743.54 3,409,273.96 323,937.14 32,943,954.64 amount of the period (1) Disposal Other transfer 29,210,743.54 3,409,273.96 323,937.14 32,943,954.64 4. Closing 131,683,573.11 26,753,152.05 8,187,286.12 166,624,011.28 balance II. Total accrued amortization 1. Opening 43,762,368.31 12,808,786.63 1,699,359.30 58,270,514.24 balance 2. Increased 2,656,181.13 1,598,753.86 890,038.74 5,144,973.73 amount of the period (1) 2,656,181.13 1,598,753.86 890,038.74 5,144,973.73 Withdrawal 3. Decreased 3,124,711.31 1,676,210.39 39,096.43 4,840,018.13 amount of the period (1) Disposal Other transfer 3,124,711.31 1,676,210.39 39,096.43 4,840,018.13 4. Closing 43,293,838.13 12,731,330.10 2,550,301.61 58,575,469.84 balance III. Depreciation reserves 1. Opening balance 2. Increased amount of the period (1) Withdrawal 3. Decreased amount of the period (1) Disposal 4. Closing balance IV. Book value 1. Closing book 88,389,734.98 14,021,821.95 5,636,984.51 108,048,541.44 value 2. Opening 116,699,944.45 7,372,314.77 5,191,905.12 129,264,164.34 book value The proportion of the intangible assets formed from the internal R&D through the Company amount the balance of the intangible assets at the period-end was12.98%. (2) Details of fixed assets failed to accomplish certification of land use right Unit: RMB Yuan Item Book value Reason Other notes: 26. R&D expenses Unit: RMB Yuan Opening Closing Item Increase Decrease balance balance New product 12,556,242.8 12,556,242.8 development 8 8 12,556,242.8 12,556,242.8 Total 8 8 Other notes: Opening balance of R&D expense was book value of the disposal of subsidiary of the Company Foshan Chengtong Paper Co., Ltd., due to the R&D activity was suspended; all of them were transfer into the R&D expense of the Company in reporting period. 27. Goodwill (1) Original book value of goodwill Unit: RMB Yuan Name of the investees or the Opening balance Increase Decrease Closing balance events formed goodwill Zhuhai S.E.Z. Hongta Renheng 9,129,025.01 9,129,025.01 Paper Co., Ltd. Zhuhai Jinji Chemicals Co., 2,418,280.28 2,418,280.28 Ltd. Total 11,547,305.29 11,547,305.29 (2) Impairment provision of goodwill Unit: RMB Yuan Name of the investees or the Opening balance Increase Decrease Closing balance events formed goodwill Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill impairment losses: Other notes: On 30 Jun. 2009, the Company obtained the control of Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. through business combination not under the same control, the combination costs was RMB808.4487 million, obtained the fair value of the identifiable net assets of the Company was RMB799.319,7 million. Combination cost being large than the fair value of the identifiable net assets balance formed goodwill RMB9129025.01. At the end of the period, combine the analysis of the present value of the expected future cash flow of the assets, the evaluation of assets group of the two production line equipment and recoverable amount; there was no sign of goodwill impairment, thus no provision for impairment loss. On 1 Jul. 2012, the Company obtained the control of Zhuhai Jinji Chemicals Co., Ltd. through business combination not under the same control, the combination costs was RMB69,000,000.00, obtained the fair value of the identifiable net assets of the Company was RMB66,581,719.72, Combination cost being large than the fair value of the identifiable net assets balance formed goodwill RMB2,418,280.28. At the end of the period, combine the analysis of the present value of the expected future cash flow of the assets, the evaluation of assets group of the two production line equipment and recoverable amount; there was no sign of goodwill impairment, thus no provision for impairment loss. 28. Long-term unamortized expenses Unit: RMB Yuan Amortization Item Opening balance Increase Decrease Closing balance amount Decoration expense 510,136.71 270,646.68 239,490.03 for rent-in plant Fee for technical 436,513.00 29,100.88 407,412.12 service Maintaining renovation of 2,751,700.01 494,830.85 2,256,869.16 construction project Total 510,136.71 3,188,213.01 794,578.41 2,903,771.31 Other notes: 29. Deferred income tax assets/deferred income tax liabilities (1) Deferred income tax assets had not been off-set Unit: RMB Yuan Closing balance Opening balance Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax difference assets difference assets Assets impairment 159,371,305.68 27,822,494.18 173,726,182.78 31,651,663.16 provision Internal trading 2,953,255.99 632,811.37 unrealized profits Estimated unpaid salary 1,248,945.82 312,236.45 Withholding sales 9,155,596.07 1,373,339.41 6,921,826.10 1,038,273.92 agency fee Accrued liabilities 837,738.20 125,660.73 6,961,893.98 1,044,284.10 Withholding transportation fee of 21,702,217.24 3,255,332.59 8,000,517.69 1,200,077.64 paper Total 194,020,113.18 33,209,638.28 196,859,366.37 35,246,535.27 (2) Deferred income tax liabilities had not been off-set Unit: RMB Yuan Closing balance Opening balance Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax difference liabilities difference liabilities Added value of evaluation of assets not 17,756,549.66 2,645,810.47 18,703,893.34 2,805,584.00 under same control enterprise combination Net amount of change in fair value of trading 1,528,810.76 229,321.61 financial assets Total 19,285,360.42 2,875,132.08 18,703,893.34 2,805,584.00 (3) Deferred income tax assets or liabilities listed by net amount after off-set Unit: RMB Yuan Mutual set-off amount of Amount of deferred Amount of deferred Mutual set-off amount of deferred income tax income tax assets or income tax assets or Item deferred income tax assets and liabilities at liabilities after off-set at liabilities after off-set at assets and liabilities the period-end the period-end the period-begin Deferred income tax 33,209,638.28 35,246,535.27 assets Deferred income tax 2,875,132.08 2,805,584.00 liabilities (4) List of unrecognized deferred income tax assets Unit: RMB Yuan Item Closing balance Opening balance Deductible losses 88,387,629.70 301,542,428.22 Total 88,387,629.70 301,542,428.22 (5) Deductible losses of unrecognized deferred income tax assets will due the following years Unit: RMB Yuan Years Closing balance Opening balance Notes 2017 75,181,411.76 2018 13,206,217.94 Total 88,387,629.70 -- Other notes: 30. Other non-current assets Unit: RMB Yuan Item Closing balance Opening balance Prepayment of equipment 7,519,746.40 7,409,367.68 Total 7,519,746.40 7,409,367.68 Other notes: 31. Short-term loans (1) Category of short-term loans Unit: RMB Yuan Item Closing balance Opening balance Pledge loan 272,724,440.16 406,720,259.72 Mortgage loan Guaranteed loan 510,000,000.00 502,216,032.75 Credit loan 130,000,000.00 78,952,000.00 Trade financing 142,378,794.76 Total 912,724,440.16 1,130,267,087.23 Notes of short-term loans category (2) List of the short-term loans overdue but not return The total amount of the overdue but not return short-term borrowings at the period-end was of RMB 000, of which the situation of the significant overdue but not return short-term borrowings as follows: Unit: RMB Yuan Entity Closing balance Borrowing rate Overdue time Overdue rate Other notes: 32. Financial liabilities measured by fair value and the changes included in the current gains and losses Unit: RMB Yuan Item Closing balance Opening balance Financial liabilities specified as measured by fair value and the changes included in 212,689.24 the current gains and losses Total 212,689.24 Other notes: Financial liabilities measured by fair value and the changes included in the current gains and losses was the Company’s subsidiary, Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. signed Forward Exchange Rate Contract with the bank, considering 31 Dec. 2015 as the fair value of exchange rate calculation. 33. Derivative financial liabilities □ Applicable √ Inapplicable 34. Notes payable Unit: RMB Yuan Category Closing balance Opening balance Bank acceptance bill 127,562,392.61 68,436,123.39 Total 127,562,392.61 68,436,123.39 The total amount of the due but not pay notes payable at the period-end was of RMB000. 35. Accounts payable (1) List of accounts payable Unit: RMB Yuan Item Closing balance Opening balance Payment of material 271,218,660.09 357,662,340.57 Payment of equipment 25,102,687.10 6,321,955.99 Other 69,234,411.70 78,844,070.15 Total 365,555,758.89 442,828,366.71 (2) Notes of the accounts payable aging over one year Unit: RMB Yuan Item Closing balance Unpaid/ Un-carry-over reason Shenzhen Huayu Trade Development Co., 4,089,569.42 Unsettled Ltd. Qingdao Shuncheng Investments Co., Ltd. 1,530,733.65 Unsettled Total 5,620,303.07 -- Other notes: 36. Advance from customers (1) List of advance from customers Unit: RMB Yuan Item Closing balance Opening balance Within 1 year 8,449,921.92 21,178,860.84 1-2 years 727,234.35 1,624,309.26 2-3 years 640,213.45 428,840.64 Total 9,817,369.72 23,232,010.74 (2) Significant advance from customers aging over one year Unit: RMB Yuan Item Closing balance Unpaid/ Un-carry-over reason Shenzhen Jiajing Paper Products Co., Ltd. 354,387.02 Unsettled Foshan Nanhai District Pingzhou Pingbei Yingui Paper Products Operation 200,000.00 Unsettled Department Zhuhai Jingsheng Trade Development Co., 223,289.41 Unsettled Ltd. Total 777,676.43 -- (3) Particulars of settled but unfinished projects formed by construction contract at period-end. Unit: RMB Yuan Item Amount Other notes: 37. Payroll payable (1) List of Payroll payable Unit: RMB Yuan Item Opening balance Increase Decrease Closing balance I. Short-term salary 32,283,733.94 193,528,402.21 192,421,009.53 33,391,126.62 II. Post-employment benefit-defined 38,418.69 13,963,043.67 14,001,462.36 contribution plans III. Termination benefits 1,987,658.17 1,987,658.17 Total 32,322,152.63 209,479,104.05 208,410,130.06 33,391,126.62 (2) List of Short-term salary Unit: RMB Yuan Item Opening balance Increase Decrease Closing balance 1. Salary, bonus, 25,029,372.58 166,384,369.63 165,664,524.94 25,749,217.27 allowance, subsidy 2. Employee welfare 10,517,415.97 10,517,415.97 3. Social insurance 36,681.00 7,710,688.63 7,747,369.63 Including: 1. Medical insurance 34,456.31 6,112,037.50 6,146,493.81 premiums Work-related 1,761.25 841,602.31 843,363.56 injury insurance Maternity 463.44 757,048.82 757,512.26 insurance 4. Housing fund 24,147.66 5,438,969.96 5,170,273.62 292,844.00 5. Labor union budget and employee education 7,193,532.70 3,476,958.02 3,321,425.37 7,349,065.35 budget Total 32,283,733.94 193,528,402.21 192,421,009.53 33,391,126.62 (3) List of drawing scheme Unit: RMB Yuan Item Opening balance Increase Decrease Closing balance Basic pension benefits 27,187.95 13,017,824.19 13,045,012.14 Unemployment insurance 11,230.74 945,219.48 956,450.22 Total 38,418.69 13,963,043.67 14,001,462.36 Other notes: 1. Among the decrease of payroll payable in reporting period, mainly was the disposal of subsidiary, Foshan Chengtong Paper Co., Ltd., the roll out bad debt provision was the change of consolidated scope. The note of disposal of subsidiary, see Note. VIII. Change in consolidated scope 38. Taxes payable Unit: RMB Yuan Item Closing balance Opening balance VAT 22,744,304.43 Business tax 2,205.00 294,497.66 Corporate income tax 6,341,081.18 12,629,131.42 Personal income tax 172,648.12 158,712.09 Urban maintenance and construction tax 1,718,019.44 1,609,791.92 Property tax 3,646,294.99 3,676,497.57 Education Surcharge 1,228,217.17 1,157,379.13 Dike fee 154,587.98 147,845.87 Stamp tax 287,791.21 1,535,611.28 Land use tax 1,275,706.96 810,706.96 Total 37,570,856.48 22,020,173.90 Other notes: 39. Interest payable Unit: RMB Yuan Item Closing balance Opening balance Enterprise bond interest 9,031,776.00 5,928,888.96 Interest payable of short-term loans 1,652,708.26 7,106,782.15 Other 16,780,833.35 Total 10,684,484.26 29,816,504.46 Particulars of significant overdue unpaid interest: Unit: RMB Yuan Entity Overdue amount Overdue reason Other notes: 40. Dividends payable Unit: RMB Yuan Item Closing balance Opening balance Common stock dividends 11,019,644.79 170,913.00 Total 11,019,644.79 170,913.00 Notes: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed: Closing balance of interest payable mainly was the profits of minority shareholder of Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. 41. Other accounts payable (1) Other accounts payable listed by nature of the account Unit: RMB Yuan Item Closing balance Opening balance Pledged and margin 10,042,416.81 6,512,189.60 Prepayment 5,569,221.82 6,430,368.16 Capital of related parties 5,000,000.00 1,100,000.00 Final payment of engineering 1,155,901.59 1,809,212.47 Other 2,993,931.08 5,408,381.09 Total 24,761,471.30 21,260,151.32 (2) Other significant accounts payable with aging over one year Unit: RMB Yuan Item Closing balance Unpaid/ Un-carry-over reason Logistics margin, transaction is under Yunan Yuxi Tengyin Logistics Co., Ltd. 1,050,000.00 processing Final payment of engineering, settlement Changsha Chaint Machinery Co., Ltd. 768,000.00 period not arrived Guangdong Chengtong Logistics Co., Ltd. 570,384.98 Magin and payment on behalf Logistics margin, transaction is under Eastern Sunday Logistics Co., Ltd. 500,000.00 processing Total 2,888,384.98 -- Other notes: 42. Liabilities classified as holding for sale Unit: RMB Yuan Item Closing balance Opening balance Other notes: 43. Non-current liabilities due within 1 year Unit: RMB Yuan Item Closing balance Opening balance Long-term account payable due within 1 418,750,000.00 year Total 418,750,000.00 Other notes: The Opening balance was the RMB 500 million provided by China Chengtong Holdings Group Ltd. to the Company from the funds raised through the medium-term notes issued by China Chengtong. Deducting investors chose to exercise the re-sell option and the re-sell amount RMB81.25 million, the due date for the relevant MTNs would be 24 Mar. 2015; the payment had been completed. There was no closing balance in the reporting period. 44. Other current-liabilities Unit: RMB Yuan Item Closing balance Opening balance Changes on short term bonds payable: Unit: RMB Yuan Overflow The Withdraw Pay in Name of Book Issue Opening discount Closing Issue date Period current interest at current the bond value amount balance amortizati balance issue par period on Other notes: 45. Long-term loan (1) Category of long-term loan Unit: RMB Yuan Item Closing balance Opening balance Notes of short-term loans category: Other notes including interest rate range: 46. Bonds payable (1) Bonds payable Unit: RMB Yuan Item Closing balance Opening balance Corporation bonds 796,365,205.30 794,912,384.37 Medium-term notes of the bank 199,222,756.99 Total 995,587,962.29 794,912,384.37 (2) Changes on bonds payable (not including other financial instrument classified as preferred stock and perpetual capital securities of financial liabilities) Unit: RMB Yuan 12Huabao 800,000,0 2012/11/2 791,700,0 794,912,3 46,399,88 1,472,820 796,365,2 5 years 20,000.00 Bebt 00.00 6 00.00 84.37 5.59 .93 05.30 15Huabao 200,000,0 199,100,0 199,100,0 4,455,452 122,756.9 199,222,7 2015/7/31 3 years MTN001 00.00 00.00 00.00 .05 9 56.99 990,800,0 794,912,3 199,100,0 50,855,33 1,595,577 995,587,9 Total -- -- -- 20,000.00 00.00 84.37 00.00 7.64 .92 62.29 (3) Note to conditions and time of share transfer of convertible bonds (4) Note to other financial instrument classified as financial liabilities Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding issued at period-end Change list of preferred stock, perpetual capital securities and other financial instruments outstanding issued at period-end Unit: RMB Yuan Financial Opening period Increase Decrease Closing period instruments outstanding Amount Book value Amount Book value Amount Book value Amount Book value issued Notes to the basis of other financial instrument classified as financial liabilities Other notes: 1. 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 Special Shareholders’ 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 RMB100 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 of 5.8%, 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 RMB791,700,000.00, the bonds using simple interest on yearly basis, regardless of the compound interest which been paid once a year, the final phase of interest is paid together with the principal redemption, and the interest period started from 26 Nov. 2012. 2. In line with the Company held the Second Special Meeting of the General Shareholders on 10 Nov. 2014, the meeting reviewed and approved the Proposal of the Issue of Medium-Term Notes which agreed to issue no more than RMB five hundred million of the medium-term notes. The Company received the Acceptance of Registration Notice ZSXZ [2015] No. MTN253 which agreed to the Company's registration of Medium-Term Notes, which issued by NAFMII. The Company's total issue amount was RMB200, 000,000.00, coupon rate 5.28%, the limitation of Medium-Term Notes was 3 years, and the raised capital after deducting the bond issuance underwriting fees and custodian fees was RMB199,100,000.00, the bonds using simple interest on yearly basis, regardless of the compound interest, which been paid once a year, the final phase of interest is paid together with the principal redemption, and the interest period started from 31 Jul. 2015. 47. Long-term payable (1) Long-term payable listed by nature of the account Unit: RMB Yuan Item Closing balance Opening balance Finance lease 7,630,748.49 10,506,735.99 Other notes: 48. Long term payroll payable (1) List of long term payroll payable Unit: RMB Yuan Item Closing balance Opening balance (2) Changes of defined benefit plans Present worth of defined benefit plans obligation: Unit: RMB Yuan Item Reporting period Same period of last year Plan assets: Unit: RMB Yuan Item Reporting period Same period of last year Net liabilities (net assets) of defined benefit plans Unit: RMB Yuan Item Reporting period Same period of last year Notes to the influence of the content and related risk of defined benefit plans to the future cash flows, time and uncertainty of the Company: Notes to analysis results of major actuarial assumptions and sensibility of defined benefit plans Other notes: 49. Special payable Unit: RMB Yuan Item Opening balance Increase Decrease Closing balance Formation reasons Other notes: 50. Accrued liabilities Unit: RMB Yuan Item Closing balance Opening balance Formation reasons Claim due to the quality Product quality assurance 1,758,780.68 7,431,237.75 problem in sale of product Total 1,758,780.68 7,431,237.75 -- Other notes, including related important assumptions and estimates of accrued liabilities: 51. Deferred income Unit: RMB Yuan Item Opening balance Increase Decrease Closing balance Formation reasons Government 6,648,333.32 4,066,986.00 1,514,413.44 9,200,905.88 subsidies Total 6,648,333.32 4,066,986.00 1,514,413.44 9,200,905.88 -- Items involved in government subsidies: Unit: RMB Yuan Amount accrued Amount of newly Related to the Item Opening balance in non-business Other changes Closing balance subsidy assets/ income income Renovation project of the information system of Related to the 800,000.00 16,000.00 784,000.00 paper-making assets enterprise energy management center (1) Project of the information system of Related to the paper-making 1,050,000.00 350,000.00 700,000.00 assets enterprise energy management center (1) No. 1 paper machine update Related to the 240,000.00 240,000.00 & renovation assets project (2) Liquid paper Related to the renovation 338,333.32 35,000.04 303,333.28 assets project (3) Funds for energy-saving Related to the and 900,000.00 300,000.00 600,000.00 assets emission-reductio n (4) Renovation project of the information Related to the 1,400,000.00 1,400,000.00 system of energy assets management center (5) Steam condensation Related to the water recycling 1,920,000.00 1,920,000.00 assets and energy saving projects (5) Subsidy of improvement of Related to the 3,496,986.00 699,413.40 2,797,572.60 Zhuhai motor assets efficiency (6) Subsidy of latex phase II production line Related to the 570,000.00 114,000.00 456,000.00 technological assets transformation (7) Total 6,648,333.32 4,066,986.00 1,514,413.44 9,200,905.88 -- Other notes: 1. 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), the Company’s subsidiary Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. gained the government grant of RMB800,000.00 for the information system renovation project of the Paper-making Enterprises Energy. The system had been put into use in 2015, which amortized in line with asset depreciation period. In 2013, the Company received the government subsidiary RMB1.4 million, and the system had been put into use in 2014, which amortized in line with asset depreciation period, and the system had been put into use in 2014, which amortized in line with asset depreciation period. 2. Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. gained the government grant of RMB240,000.00 for No. 1 paper machine update & renovation project in Oct. 2012. Because the issue has not been used in the reporting period, it was not calculated into non-operating income. 3. RMB350,000 of government subsidies for Tetra liquid paper renovation project in Nov. 2013, the system was put in use, and was written off according to their estimated depreciation period from 2014. 4. RMB1.2 million of special fund for Tetra liquid paper renovation project in Nov. 2013, the system was put in use, and was written off according to their estimated depreciation period from 2014. 5.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 RMB1.92 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, 2013 because the issue has not been used in the reporting period, it was not calculated into non-operating income. 6. In line with Issue of the Announcement on Rules for the Implementation of Subsidiary for Improvement of Motor Efficiency of Guangdong Province (YCG [2013] No. 389, Issue of the Announcement on Rules for the Implementation of Subsidiary for Improvement of Motor Efficiency of Zhuhai (ZKGMX [2014] No. 392 issued by Guangdong Finance Department and Economic and Information Council of Guangdong. The Company's subsidiary Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. received RMB1, 813,877.00 of Government Subsidy for Improvement of Motor Efficiency. Zhuhai Huafeng Co., Ltd.. The Subsidiary of Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd., had received RMB1, 683,109.00 of Government Subsidy for Improvement of Motor Efficiency. The purchase of equipment had been put into use, and was written off according to their estimated depreciation period from this year. 7. In line with the spirit of documents of Issue of Announcement on Advice on Implementation of Promoting Industry Structure Adjustment (ZHF[2010] No. 162, Interim Measure of Zhuhai Technology Innovation Assets Management (ZKGMX [2013] No. 259), Zhuhai Jinji Chemical Co., Ltd. under the control of the Company, received government subsidiary RMB570,000. Latex phase II Project had been completed and put into use, and was written off according to their estimated depreciation period from reporting period. 52. Other non-current liabilities Unit: RMB Yuan Item Closing balance Opening balance Other notes: 53. Share capital Unit: RMB Yuan Increase/decrease (+/-) Opening Capitalization Closing Newly issue balance Bonus shares of public Other Subtotal balance share reserves The sum of 505,425,000.00 505,425,000.00 shares Other notes: 54. Other equity instruments (1) Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding issued at period-begin (2) Change list of preferred stock, perpetual capital securities and other financial instruments outstanding issued at period-begin Unit: RMB Yuan Financial Opening period Increase Decrease Closing period instruments outstanding Amount Book value Amount Book value Amount Book value Amount Book value issued Changes, reason of change and basis of relevant accounting treatment of other equity instruments in reporting period: Other notes: 55. Capital reserves Unit: RMB Yuan Item Opening balance Increase Decrease Closing balance Capital premium 256,362,525.38 256,362,525.38 Other capital reserves 459,848.04 459,848.04 Total 256,822,373.42 256,822,373.42 Other notes, including changes and reason of change: 56. Treasury stock Unit: RMB Yuan Item Opening balance Increase Decrease Closing balance Other notes, including changes and reason of change: 57. Other comprehensive income Unit: RMB Yuan Reporting period Opening Amount Less: Amount Less: After-tax After-tax Closing Item balance incurred transferred income tax attribute to attribute to balance before into profit and expense the parent minority income tax loss in the company shareholder current period that recognized into other comprehensive income in prior period I. Other comprehensive no longer 169,714.3 169,714.39 reclassified into profits or losses 9 Shares in other comprehensive income no longer reclassified into 169,714.3 169,714.39 profits or losses in future in investee 9 entity under the equity method 169,714.3 total 169,714.39 9 Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow hedging gains and losses transfer into arbitraged items: 58. Special reserves Unit: RMB Yuan Item Opening balance Increase Decrease Closing balance Other notes, including changes and reason of change: 59. Surplus reserves Unit: RMB Yuan Item Opening balance Increase Decrease Closing balance Statutory surplus 187,280,095.40 187,280,095.40 reserves Total 187,280,095.40 187,280,095.40 Other note, including changes and reason of change 60. Retained profits Unit: RMB Yuan Item Reporting period Last period Opening balance of retained profits before 863,066,727.26 787,821,828.63 adjustments List of adjustment of opening retained profits: 863,066,727.26 787,821,828.63 (Increase +, decrease -) Opening balance of retained profits after 863,066,727.26 adjustments Add: Net profit attributable to owners of the 133,094,696.66 83,284,859.23 Company Less: Withdrawal of statutory surplus reserves 8,039,960.60 Dividend of common stock payable 7,581,375.00 Closing retained profits 988,580,048.92 863,066,727.26 List of adjustment of opening retained profits: 1) RMB000 opening retained profits was affected by retrospective adjustment conducted according to the Accounting Standards for Business Enterprises and relevant new regulations. 2) RMB000 opening retained profits was affected by changes on accounting policies. 3) RMB000 opening retained profits was affected by correction of significant accounting errors. 4) RMB000 opening retained profits was affected by changes in combination scope arising from same control. 5) RMB000 opening retained profits was affected totally by other adjustments. 61. Revenues and operating costs Unit: RMB Yuan Reporting period Same period of last year Item Revenue Operating costs Revenue Operating costs Main operations 3,203,045,668.83 2,667,631,646.77 3,397,014,091.45 2,880,124,643.42 Other operations 78,998,326.29 65,531,889.36 155,684,624.72 90,615,768.75 Total 3,282,043,995.12 2,733,163,536.13 3,552,698,716.17 2,970,740,412.17 62. Business tax and surcharges Unit: RMB Yuan Item Reporting period Same period of last year Business tax 379,975.11 3,617,483.37 Urban maintenance and construction tax 8,583,319.05 5,515,184.19 Education Surcharge 6,144,296.15 3,956,565.52 Dike fee 1,217,563.33 1,506,961.90 Total 16,325,153.64 14,596,194.98 Other notes: 63. Sales expenses Unit: RMB Yuan Item Reporting period Same period of last year Salary and benefits 12,957,318.34 13,642,924.09 Sales agency fee 8,525,942.10 6,149,876.04 Business entertainment fees 6,502,420.81 6,493,157.23 Packing charges 9,227,310.96 8,975,622.62 Warehousing fees 4,468,599.38 3,796,237.56 Transport fees 127,476,312.11 113,506,495.17 Office expenses 1,232,279.29 958,106.80 Other 2,010,155.44 11,015,048.94 Total 172,400,338.43 164,537,468.45 Other notes: 64. Administrative expenses Unit: RMB Yuan Item Reporting period Same period of last year Salary and benefits 49,783,049.42 47,858,720.68 Social insurance 18,426,517.99 16,608,351.81 Housing fund 4,551,491.31 4,431,864.70 Tax 10,769,454.82 12,718,284.85 Amortization of depreciation fee 15,870,608.84 15,273,193.09 Office expenses 4,173,721.57 1,868,436.49 R&D expenses 21,373,458.01 4,139,248.05 Employ agency fee 5,500,609.79 5,842,229.27 Water & electricity fees 3,109,682.52 4,224,297.62 Rental fee 1,818,076.44 2,875,182.68 Business travel charges 2,685,182.34 2,452,278.24 Business entertainment fees 2,144,447.74 2,587,432.32 Long-term unamortized expenses 1,028,872.80 1,028,872.80 Material consumption 5,233,346.30 4,996,383.22 Other 11,650,672.58 13,759,926.20 Total 158,119,192.47 140,664,702.02 Other notes: 65. Financial expenses Unit: RMB Yuan Item Reporting period Same period of last year Interest expenses 112,147,615.10 121,068,027.97 Less: Interest income 8,764,125.77 2,037,453.21 Exchange gains and losses 24,566,838.57 Other 5,921,727.83 8,289,745.01 Total 133,872,055.72 126,985,102.16 Other notes: 66. Asset impairment loss Unit: RMB Yuan Item Reporting period Same period of last year I. Bad debt loss 21,592,987.90 2,432,129.09 II. Inventory falling price loss 5,031,312.50 -9,127,522.04 Total 26,624,300.40 -6,695,392.95 Other notes: 67. Gains on the changes in the fair value Unit: RMB Yuan Source Reporting period Same period of last year 2. Financial assets measured by fair value and the changes be included in the current 1,741,500.00 profits and losses Financial liabilities measured by fair value and the changes included in the current -212,689.24 gains and losses Total 1,528,810.76 Other notes: Profits from change in fair value were the Company’s subsidiary Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. signed Forward Exchange Rate Contract with the bank, locking the exchange rate and the closing rate differences. 68. Investment income Unit: RMB Yuan Item Reporting period Same period of last year Long-term equity investment income 15,711,019.67 7,690,138.47 accounted by equity method Investment income arising from disposal of 112,969,816.59 long-term equity investments Investment income received from disposal of financial assets measured by fair value and the -7,690,593.72 changes be included in the current profits and losses during holding period Investment income received from disposal of 176,323.79 4,796,692.93 available-for-sale financial assets Total 121,166,566.33 12,486,831.40 Other notes: Investment income arising from disposal of long-term equity investments was the investment income from the Company’s disposal of equity of its subsidiary Foshan Chengtong Paper Co., Ltd., for details, see Note VIII. Change in consolidated scope, 1. Disposal of subsidiary. 69. Non-operating gains Unit: RMB Yuan Recorded in the amount of the Item Reporting period Same period of last year non-recurring gains and losses Total gains from disposal of 2,265,238.32 25,556,368.05 2,265,238.32 non-current assets Including: Gains from disposal 1,156,376.92 1,727,368.05 1,156,376.92 of fixed assets Gains from disposal of 1,108,861.40 23,829,000.00 1,108,861.40 intangible assets Gains from debt restructuring 2,288,256.01 2,288,256.01 Government subsidies 16,481,293.41 14,044,743.94 16,481,293.41 Other 2,694,408.97 4,347,280.58 2,694,408.97 Total 23,729,196.71 43,948,392.57 23,729,196.71 Government subsidies recorded into current profits and losses Unit: RMB Yuan Whether Whether Related to the Distribution Distribution influence the Special Reporting Same period Item Nature/type assets/ entity reason profits or subsidy or period of last year income losses of the not year or not Subsidy gained due to Amortization confirming of Zhuhai with local government Municipal government Related to the Subsidy Yes No 1,514,413.44 2,161,666.68 subsidies in Finance attracting assets deferred Bureau investment revenue and local supportive policy etc. Subsidy gained due to Special funds confirming of promoting Zhuhai with local import Municipal government Related to the Subsidy Yes No 993,624.00 2,016,485.00 (Import Finance attracting income discount Bureau investment interest) and local supportive policy etc. Subsidy gained due to Import confirming discount Zhuhai with local interest for Municipal government Related to the promote & Subsidy Yes No 2,182,820.00 2,338,500.00 Finance attracting income encourage Bureau investment important and local goods supportive policy etc. Subsidy gained due to confirming The special Zhuhai with local matching Municipal government Related to the funds for Subsidy Yes No 1,097,523.00 353,539.70 Finance attracting income expending Bureau investment import and local supportive policy etc. Zhuihai Zhuihai Subsidy Related to the Subsidy Yes No 967,010.00 187,890.00 International International gained due to income Freight Freight confirming Terminal Terminal with local (Gaolan) Co., (Gaolan) Co., government Ltd. Ltd. attracting government investment consign and local subsidy supportive policy etc. Subsidy gained due to Zhuhai confirming Industrial Gaolan with local water price Financial government Related to the Subsidy Yes No 3,977,454.00 3,096,498.90 difference Treasury attracting income subsidy Payment investment Center and local supportive policy etc. Special funds for promoting Subsidy from the Zhuhai R&D transformatio Municipal Technical Related to the Subsidy Yes No 525,000.00 216,000.00 n and Finance updating and income upgrading of Bureau transformatio processing n, etc. trade Subsidy from Zhuhai Zhuhai R&D technical Municipal Technical Related to the Subsidy Yes No 160,000.00 410,000.00 transformatio Finance updating and income n fund Bureau transformatio n, etc. Special funds for provincial enterprise Subsidy from transformatio Zhuhai R&D n and Municipal Technical Related to the upgrading Subsidy Yes No 100,000.00 120,000.00 Finance updating and income (two Bureau transformatio integration n, etc. management system project) Subsidy from Subsidy for Zhuhai R&D Zhuhai Municipal Technical Related to the enterprise Subsidy Yes No 2,458,331.97 Finance updating and income R&D fee of Bureau transformatio 2013 n, etc. Subsidy gained due to Special fund confirming Bureau of for external with local finance of economy government Related to the Foshan Subsidy Yes No 1,040,000.00 trade attracting income Chancheng development investment District of 2015 and local supportive policy etc. Subsidy gained due to Special fund confirming for Province Zhuhai with local and ministry Municipal government Related to the cooperation Subsidy Yes No 500,000.00 Finance attracting income of industry, Bureau investment university and local and research supportive policy etc. Zhuhai Subsidy Bureau of gained due to Quality confirming Supervision Zhuhai with local Technology Municipal government Related to the Award Yes No 260,000.00 Standards Finance attracting income Strategy Bureau investment Special Fund and local Application supportive Project policy etc. Subsidy gained due to Foshan Foshan confirming government Municipal Related to the Award with local Yes No 200,000.00 bonds Finance income government support funds Bureau attracting investment and local supportive policy etc. Subsidy gained due to confirming Special funds Zhuhai with local for energy Municipal government Related to the Subsidy Yes No 300,000.00 saving of Finance attracting income 2015 Bureau investment and local supportive policy etc. Subsidy Plan Finance gained due to Special Fund Office of confirming for Quality and with local Technology Technical government Related to the Standards Subsidy Yes No 100,000.00 50,000.00 Supervision attracting income Strategy of of investment Guangdong Guangdong and local of 2015 Province supportive policy etc. Subsidy gained due to confirming Discount Zhuhai with local funds for Municipal government Related to the Subsidy Yes No 1,244,434.00 promoting Finance attracting income important Bureau investment and local supportive policy etc. Subsidy gained due to confirming Zhuhai with local Imported Municipal government Related to the wood pulp Subsidy Yes No 544,858.66 Finance attracting income incentive Bureau investment and local supportive policy etc. Subsidy gained due to confirming Zhuhai with local Energy Municipal government Related to the Subsidy Yes No 430,000.00 saving funds Finance attracting income Bureau investment and local supportive policy etc. Subsidy gained due to confirming Zhuhai with local Enterprise Municipal government Related to the Award Yes No 201,581.00 award capital Finance attracting income Bureau investment and local supportive policy etc. Subsidy gained due to confirming Cash rewards Zhuhai with local for expand Municipal government Related to the Award Yes No 200,000.00 domestic Finance attracting income enterprise Bureau investment and local supportive policy etc. Subsidy gained due to confirming Zhuhai with local Gaolan port Municipal government Related to the Subsidy Yes No 162,250.00 subsidies Finance attracting income Bureau investment and local supportive policy etc. Zhuhai Subsidy Related to the Other Municipal Subsidy gained due to Yes 105,117.00 311,040.00 income Finance confirming Bureau with local government attracting investment and local supportive policy etc. 16,481,293.4 14,044,743.9 Total -- -- -- -- -- -- 1 4 Other notes: 70. Non-operating expenses Unit: RMB Yuan Recorded in the amount of the Item Reporting period Same period of last year non-recurring gains and losses Loss on disposal of non-current 955,586.75 1,009,714.83 955,586.75 assets Including: Loss on disposal of 955,586.75 1,009,714.83 955,586.75 fixed assets Donation 54,000.00 54,000.00 Fines, compensation, fine for 102,650.00 13,232.17 102,650.00 delaying payment Other 151,444.22 306,715.94 151,444.22 Total 1,263,680.97 1,329,662.94 1,263,680.97 Other notes: 71. Income tax expense (1) Lists of income tax expense Unit: RMB Yuan Item Reporting period Same period of last year Current income tax expense 13,680,317.37 46,386,834.46 Deferred income tax expense 2,104,251.45 1,330,416.36 Total 15,784,568.82 47,717,250.82 (2) Adjustment process of accounting profit and income tax expense Unit: RMB Yuan Item Reporting period Total profits 186,700,311.16 Current income tax expense accounted by tax and relevant 46,675,077.79 regulations Influence of different tax rate suitable to subsidiary -13,201,045.34 Influence of income tax before adjustment -214,532.07 Influence of non taxable income -16,914,980.35 Influence of not deductable costs, expenses and losses 2,262,220.80 Influence of deductible losses of unrecognized deferred income -4,360,769.81 tax assets used in previous years The influence of R&D fee plus the deduction 1,538,597.80 Income tax expense 15,784,568.82 Other notes: 72. Other comprehensive income Refer to the notes 73. Supplementary information to cash flow statement (1) Other cash received relevant to operating activities Unit: RMB Yuan Item Reporting period Same period of last year Intercourse funds 103,110,590.80 38,118,303.07 Government subsidies 14,966,879.97 11,894,743.94 Interest income 3,530,569.17 2,002,902.83 Income of compensation 2,345,089.79 1,096,461.56 Total 123,953,129.73 53,112,411.40 Notes: (2) Other cash paid relevant to operating activities Unit: RMB Yuan Item Reporting period Same period of last year Intercourse funds 117,650,598.40 74,751,080.50 Expense 56,815,933.81 51,212,864.16 Employee pretty cash 3,380,536.00 3,218,740.56 Total 177,847,068.21 129,182,685.22 Notes: (3) Other cash received relevant to investment activity Unit: RMB Yuan Item Reporting period Same period of last year Government subsidies 4,066,986.00 Total 4,066,986.00 Notes: (4) Other cash paid relevant to investment activity Unit: RMB Yuan Item Reporting period Same period of last year Notes: (5) Other cash received relevant to financing activities Unit: RMB Yuan Item Reporting period Same period of last year Restrict monetary capital used for margin 37,554,493.73 or pledge Interests subsidies 3,000,000.00 Total 37,554,493.73 3,000,000.00 Notes: (6) Other cash paid relevant to financing activities Unit: RMB Yuan Item Reporting period Same period of last year Restrict monetary capital used for margin 361,300,780.56 or pledge Total 361,300,780.56 Notes: 74. Supplementary information to cash flow statement (1) Information of net profit to net cash flows generated from operating activities Unit: RMB Yuan Supplementary materials Reporting period Last period 1. Reconciliation of net profit to net cash -- -- flows generated from operating activities Net profit 170,915,742.34 149,258,539.55 Add: Provision for impairment of assets 26,624,300.40 -6,695,392.95 Depreciation of fixed assets, of oil-gas 151,114,049.23 151,939,219.54 assets, of productive biological assets Amortization of intangible assets 5,144,973.73 4,056,752.84 Long-term unamortized expenses 794,578.41 419,150.95 Losses on disposal of fixed assets, intangible assets and other long-term assets (gains: -1,309,651.57 -24,546,653.22 negative) Losses from variation of fair value -1,528,810.76 Financial cost (gains: negative) 140,956,000.53 120,732,810.36 Investment loss (gains: negative) -121,166,566.33 -12,486,831.40 Decrease in deferred income tax assets 2,036,896.99 1,491,628.80 (gains: negative) Increase in deferred income tax liabilities 69,548.08 -518,417.75 (“-” means decrease) Decrease in inventory (gains: negative) 204,919,569.38 -161,653,458.31 Decrease in accounts receivable from 73,634,068.38 86,877,346.52 operating activities (gains: negative) Increase in payables from operating -51,269,611.93 171,015,635.05 activities (decrease: negative) Other 12,556,242.88 Net cash flows generated from operating 613,491,329.76 479,890,329.98 activities 2. Investing and financing activities that do -- -- not involving cash receipts and payment: 3. Net increase in cash and cash equivalents -- -- Closing balance of cash 185,960,324.24 113,248,623.00 Less: Opening balance of cash 113,248,623.00 200,248,786.56 Net increase in cash and cash equivalents 72,711,701.24 -87,000,163.56 (2) Net Cash paid of obtaining the subsidiary Unit: RMB Yuan Amount Of which: -- Of which: -- Of which: -- Other notes: (3) Net Cash receive of disposal of the subsidiary Unit: RMB Yuan Amount Cash or cash equivalents received from disposal of subsidiaries in 44,869,829.86 reporting period Of which: -- Of which: -- Of which: -- Net Cash receive from disposal of the subsidiary 44,869,829.86 Other notes: The Company disposed Foshan Chengtong Paper Co., Ltd. in reporting period (4) Cash and cash equivalents Unit: RMB Yuan Item Closing balance Opening balance I. Cash 185,960,324.24 113,248,623.00 Including: Cash on hand 312,658.48 283,310.72 Bank deposit on demand 185,647,665.76 110,640,137.90 Other monetary funds on demand 2,325,174.38 III. Closing balance of cash and cash 185,960,324.24 113,248,623.00 equivalents Other notes: 75. Note of statement of changes in the owner's equity Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.: 76. The assets with the ownership or use right restricted Unit: RMB Yuan Item Closing book value Restricted reason Note, credit margin, deposit as the loan Monetary capital 323,746,286.83 mortgage Notes receivable 14,508,279.00 Obtained bank loan by mortgage the note Applying compulsory execution, as the Fixed assets 15,411,432.68 guarantee assets, for details, see Note 19. Fixed assets. Total 353,665,998.51 -- Other notes: 77. Foreign currency monetary items (1) Foreign currency monetary items Unit: RMB Yuan Closing foreign currency Closing convert to RMB Item Exchange rate balance balance Including: USD 5,133,725.21 6.4936 33,336,358.02 EUR 47,862.00 7.0952 339,590.46 HKD 2,485.83 0.8378 2,082.63 Including: USD 5,791,502.55 6.4936 37,607,700.96 HKD 3,014,552.88 0.8378 2,525,592.40 Other notes: (2) Note to oversea entities including: for significant oversea entities, shall disclose main operating place, recording currency and selection basis, if there are changes into recording currency, shall also disclose the reason. □ Applicable √ Inapplicable 78. Arbitrage According to arbitrage category to disclose arbitrage item, relevant arbitrage tools and the arbitraged risk qualitative and quantitative information: 79. Other 8. Equity in other entities 1. Equity in subsidiary (1) The structure of the enterprise group Name of the Main operating Nature of Holding percentage (%) Registration place Way of gaining subsidiary place business Directly Indirectly Business Huaxin (Foshan) Manufacturing combination Color Printing Foshan Foshan 100.00% industry under the same Co., Ltd. control Business Zhuhai Huafeng Manufacturing combination Zhuhai Zhuhai 100.00% Paper Co., Ltd. industry under the same control Business Zhuhai S.E.Z. Manufacturing combination not Hongta Renheng Zhuhai Zhuhai 41.97% industry under the same Paper Co., Ltd. control Pearl River Color Printing Co., Ltd. Manufacturing Foshan Foshan 100.00% Establishment of Chancheng industry District, Foshan Kunshan Focai Manufacturing Packaging & Suzhou Suzhou 100.00% Establishment industry Printing Co., Ltd. Business Zhuhai Jinji Manufacturing combination not Chemicals Co., Zhuhai Zhuhai 51.00% industry under the same Ltd. control Pinghu Huaxin Manufacturing Packing Material Jiaxing Jiaxing 100.00% Establishment industry Co., Ltd Notes: holding proportion in subsidiary different from voting proportion: 1. On acquisition date as 30 Jun. 2009, the Company gained 40.176% 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 to 41.9653%, 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 Limited didn’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. Basis of holding half or less voting rights but still been controlled investee and holding more than half of the voting rights not been controlled investee: Significant structure entities and controlling basis in the scope of combination: Basis of determine whether the Company is the agent or the principal: Other notes: (2) Significant not wholly owned subsidiary Unit: RMB Yuan The profits and losses Declaring dividends Balance of minority Shareholding proportion Name of the subsidiary arbitrate to the minority distribute to minority shareholder at closing of minority shareholder shareholders shareholder period Zhuhai S.E.Z. Hongta 58.03% 52,886,797.62 27,377,389.55 1,521,143,961.92 Renheng Paper Co., Ltd. Holding proportion of minority shareholder in subsidiary different from voting proportion: Other notes: (3) The main financial information of significant not wholly owned subsidiary Unit: RMB Yuan Name of Closing balance Opening balance the Non-curr Non-curr Non-curr Non-curr current Total Current Total current Total Current Total subsidiar ent ent ent ent assets assets liabilities liabilities assets assets liabilities liabilities y assets liability assets liability Zhuhai S.E.Z. Hongta 2,247,65 2,524,64 4,772,30 1,298,18 762,913, 2,061,09 2,610,58 2,586,28 5,196,86 1,711,08 789,469, 2,500,55 Renheng 9,971.76 8,275.64 8,247.40 1,498.26 998.83 5,497.09 4,363.19 0,434.50 4,797.69 9,328.58 663.93 8,992.51 Paper Co., Ltd. Unit: RMB Yuan Reporting period Same period of last year Name of the Total Total Operation Operating Operation Operating subsidiary Net profit comprehensi Net profit comprehensi revenue cash flow revenue cash flow ve income ve income Zhuhai S.E.Z. Hongta 3,032,414,95 100,626,805. 100,626,805. 579,124,223. 3,186,263,07 134,146,834. 132,122,671. 430,818,841. Renheng 4.02 71 71 10 8.91 91 28 68 Paper Co., Ltd. 3. Equity in joint venture arrangement or associated enterprise (1) Significant joint venture arrangement or associated enterprise Holding percentage (%) Accounting treatment of the Main operating Nature of investment of Name Registration place place business Directly Indirectly joint venture or associated enterprise Chengtong Beijing Beijing Financial industry 20.00% Equity method Finance Co., Ltd. Notes to holding proportion of joint venture or associated enterprise different from voting proportion: Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting rights but does not have a significant impact: (2) Main financial information of significant associated enterprise Unit: RMB Yuan Closing balance/ reporting period Opening balance /last period Chengtong Finance Co., Ltd. Chengtong Finance Co., Ltd. current assets 7,216,204,389.99 4,726,244,903.00 Non-current assets 6,659,691.42 8,795,688.23 Total assets 7,222,864,081.41 4,735,040,591.23 Current liabilities 6,064,250,674.62 3,655,103,302.48 Total liabilities 6,064,250,674.62 3,655,103,302.48 Equity attribute to the parent company 1,158,613,406.79 1,079,937,288.75 Net assets proportion measured at 231,722,681.36 215,987,457.75 shareholding proportion Book value of equity investment to 254,253,797.80 238,518,574.19 associated enterprise Operation revenue 131,793,995.59 111,741,235.34 Net profit 78,676,118.04 66,236,252.18 Total comprehensive income 78,676,118.04 66,236,252.18 9. The disclosure of the fair value 1. Closing fair value of assets and liabilities calculated by fair value Unit: RMB Yuan Closing fair value Item Fair value measurement Fair value measurement Fair value measurement Total items at level 1 items at level 2 items at level 3 I. Consistent fair value -- -- -- -- measurement (I) Financial assets calculated by fair value 1,741,500.00 1,741,500.00 and changes record into current profits or losses 1.Transactional financial 1,741,500.00 1,741,500.00 assets (V) Transactional 212,689.24 212,689.24 financial liabilities II. Inconsistent fair value -- -- -- -- measurement 2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1 The Company listed the book value of financial assets instruments measured at fair value on 31 Dec. 2015. according to three levels of fair value, when the overall fair value classified in three levels were in line with the first level of three levels of each significant input value used in the calculation of fair value. The definitions of three levels were as follows: The first level, the unadjusted offer of same assets or liabilities in active market on calculation date; The second level, the directly or indirectly observable input value of related assets or liabilities excepting the input value of first level; 1) The second level input value including : Offer of similar assets or liabilities in active market; 2) The second level input value including : Offer of similar assets or liabilities in non-active market; 3) Other observable input value excepting offer, including the observable interest rate in interval period of common offer, profit rate curve, implied volatility and credit spread. The third level was the unobservable input value of related assets or liabilities. 10. Related party and related Transaction 1. Information related to parent company of the Company Proportion of voting Proportion of share rights owned by Name of parent held by parent Registration place Nature of business Registered capital parent company company company against the against the Company Company (%) (%) Foshan Huaxin Manufacturing Development Co., Foshan 457930000 65.20% 65.20% industry Ltd. China National Paper Industry Beijing Comprehensive 5033000000 65.31% 65.31% Investment Corp. China Chengtong Holdings Group Co., Beijing Comprehensive 7480165600 65.31% 65.31% Ltd. Notes: information on the parent company: Foshan Huaxin Development Co., Ltd. On 28 Jun. 2005, Foshan Gongying Investment Holding Co., Ltd. transferred 62.1142% 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 holds 65.20% shares of the Company, China National Paper Industry Investment Corp.; China National Paper-industry Investment Corporation originally holds 0.11% shares of the Company, so that China National Paper-industry Investment Corporation held 65.31% shares of the Company directly and indirectly and becomes actual controller of the Company. China Chengtong Holdings Group Co., Ltd.; China Chengtong Holdings Group Co., Ltd. holds 100% shares of China National Paper-industry Investment Corporation and has become the ultimate controller of the Company. The ultimate controller of the Company was China Chengtong Holdings Group Co., Ltd.. Other notes: 2. Subsidiaries of the Company See details to Notes IX. Equity in other entities, 3. Information on the joint ventures and associated enterprises of the Company The details of significant joint venture and associated enterprise of the Company, please refer to Notes IX. Equity in other entities. Information on other joint venture and associated enterprise of occurring related party transactions with the Company in reporting period, or form balance due to related party transactions in previous period: Name Relationship Guangdong Chengtong Logistics Co., Ltd. Subsidiary of joint venture Chengtong Finance Co., Ltd. Subsidiary of joint venture Other notes: 4. Information on other related parties of the Company Name Relationship Foshan Huaxin Import & Export Co., Ltd. Under the control of the same actual controller Guangdong Guanhao High-tech Co., Ltd. Under the control of the same actual controller Dragon State International Limited Under the control of the same ultimate controller Tianjin Port Free Trade Zone Zhongwu Investment Development Under the control of the same actual controller Co., Ltd. Yueyang Forest & Paper Co., Ltd. Under the control of the same actual controller Yueyang Antai industrial Co., Ltd Under the control of the same actual controller Yuanjian Paper Co., Ltd. Under the control of the same actual controller Hunan Juntai Pulp Paper Co., Ltd. Under the control of the same actual controller Guangdong Guanhao High-tech Co., Ltd. Under the control of the same ultimate controller Long Bond Investment Development Co., Ltd. Under the control of the same ultimate controller Foshan Chengtong Paper Co., Ltd. Subsidiary disposed in reporting period Other notes: 5. List of related-party transactions (1) Information on acquisition of goods and reception of labor service (unit: ten thousand Yuan) Information on acquisition of goods and reception of labor service (unit: ten thousand Yuan) Unit: RMB Yuan The approval trade Whether exceed trade Same period of last Related-party Content Reporting period credit credit or not year China National Purchase of raw Paper Industry 286,476,105.01 355,000,000.00 No 145,922,526.89 material Investment Corp. Guangdong Purchase of raw Guanhao High-tech 17,245.46 754,850.00 No 73,078.85 material Co., Ltd. Tianjin Port Free Trade Zone Zhongwu Purchase of raw 21,844,699.64 86,600,000.00 No 66,201,848.87 Investment material Development Co., Ltd. Guangdong Providing Chengtong 21,796,488.21 22,100,000.00 No 21,897,955.85 logistics services Logistics Co., Ltd. Guangdong Purchase of raw Guanhao High-tech 582,918.39 414,609.92 material Co., Ltd. Foshan Huaxin Purchase of raw Import & Export 108,218.97 material Co., Ltd. Foshan Huaxin Purchase of raw Import & Export 2,178,617.16 material Co., Ltd. Yuanjian Paper Co., Purchase of raw 1,636,875.00 Ltd. material Hunan Juntai Pulp Purchase of raw 2,280,291.54 Paper Co., Ltd. material Information of sales of goods and provision of labor service Unit: RMB Yuan Related-party Content Reporting period Same period of last year China National Paper Industry Sales of raw materials 24,293,495.59 Investment Corp. Yuanjian Paper Co., Ltd. Sales of raw materials 3,924,986.64 Yueyang Forest & Paper Co., Sale of products 12,936,664.65 1,526,923.63 Ltd. Guangdong Guanhao High-tech Sale of products and raw 1,265,830.00 754,222.21 Co., Ltd. materials Long Bond Investment Wood pulp 74,379,473.02 Development Co., Ltd. Foshan Huaxin Import & Sale of products 903,029.40 Export Co., Ltd. Notes: (2) Related trusteeship/contract Lists of related trusteeship/contract: Unit: RMB Yuan Name of the Name of the Income entruster/contract entrustee/ Type Initial date Due date Pricing basis recognized in the ee contractor reporting period Notes: Lists of entrust/contractee Unit: RMB Yuan Name of the Name of the Charge entruster/contract entrustee/ Type Initial date Due date Pricing basis recognized in the ee contractor reporting period Notes: (3) Information of related lease The Company was lessor: Unit: RMB Yuan The lease income confirmed in The lease income confirmed in Name of lessee Category of leased assets this year last year Guangdong Chengtong Houses and buildings 1,328,194.00 1,256,863.00 Logistics Co., Ltd. The Company was lessee: Unit: RMB Yuan The lease income confirmed in lessor Category of leased assets Category of leased assets this year Foshan Huaxin Development Office and office equipment 569,400.00 569,400.00 Co., Ltd. Notes: (4) Related-party guarantee The Company was guarantor: Unit: RMB Yuan Execution accomplished Secured party Guarantee amount Start date End date or not Zhuhai S.E.Z. Hongta 33,000.00 7 May 2014 6 May 2017 No Renheng Paper Co., Ltd. Zhuhai S.E.Z. Hongta 10,000.00 26 Jan. 2015 26 Jan. 2016 No Renheng Paper Co., Ltd. Zhuhai S.E.Z. Hongta 15,000.00 7 Jan. 2015 7 Jan. 2016 No Renheng Paper Co., Ltd. Zhuhai S.E.Z. Hongta 23,000.00 16 Jun. 2015 16 Jun. 2016 No Renheng Paper Co., Ltd. Huaxin (Foshan) Color 6,500.00 1 Jul. 2013 31 Dec. 2017 No Printing Co., Ltd. Huaxin (Foshan) Color 3,000.00 29 Jun. 2015 28 Jun. 2016 No Printing Co., Ltd. Zhuhai Huafeng Paper 35,000.00 29 Oct. 2013 28 Oct. 2016 No Co., Ltd. The Company was Secured party Unit: RMB Yuan Execution accomplished Guarantor: Guarantee amount Start date End date or not China National Paper Industry Investment 61,000.00 17 Apr. 2013 17 Apr. 2016 No Corp. Notes: (5) Inter-bank lending of capital of related parties： Unit: RMB Yuan Amount borrowed and Related-party Initial date Due date Explanation loaned Borrowed China Chengtong 418,750,000.00 24 Mar. 2010 24 Mar. 2015 Holdings Group Co., Ltd. Loaned Foshan Chengtong Paper 490,240,600.41 1 Jan. 2016 31 Dec. 2019 Co., Ltd. (6) Related party asset transfer and debt restructuring Unit: RMB Yuan Related-party Content Reporting period Same period of last year (7) Rewards for the key management personnel Unit: RMB Yuan Item Reporting period Same period of last year Rewards for the key management 5,600,281.00 4,913,649.10 personnel (8) Other related-party transactions According to the 1st Meeting of 5th Board of Directors of 2013 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 than 5% of last year audit amount (outstanding of deposits excluding loans or settlement amount); sum of credit extension and interests should not be greater than RMB600,000,000; and all settlement businesses should be conducted according to requirements. Until 31 Dec. 2015, outstanding of deposits of the Company in Chengtong Financial Co., Ltd was RMB129, 537,835.34 and loan balance was RMB30, 000,000.00. 6. Receivables and payables of related parties (1) Receivables Unit: RMB Yuan Closing balance Opening balance Name o f item Related-party Book balance Bad debt provision Book balance Bad debt provision Guangdong Guanhao Account receivable: 5,973.80 267.32 29,875.20 High-tech Co., Ltd. Yueyang Forest & Account receivable: 839,714.61 1,574,001.70 Paper Co., Ltd. Yueyang Antai Account receivable: 5,302.10 1,590.63 5,302.10 530.21 industrial Co., Ltd Account receivable: Guangdong 252,199.10 75,659.73 252,199.10 25,219.91 Chengtong Logistics Co., Ltd. China National Account receivable: Paper Industry 20,275,925.21 Investment Corp. Foshan Huaxin Account receivable: Import & Export 726,513.19 72,651.32 726,513.19 Co., Ltd. Long Bond Investment Account receivable: 168.21 8.41 156.16 Development Co., Ltd. China National Prepayment: Paper Industry 27,884,562.96 11,612,211.87 Investment Corp. Guangdong Other accounts Chengtong Logistics 1,167,236.74 91,912.67 967,052.75 9,922.14 receivable: Co., Ltd. China National Other accounts Paper Industry 264,600.00 249,255.39 receivable: Investment Corp. Other accounts receivable: (2) Payables Unit: RMB Yuan Name o f item Related-party Closing book balance Opening book balance China National Paper Industry Accounts payable 5,727,471.54 30,359,297.02 Investment Corp. Guangdong Chengtong Accounts payable 3,257,342.93 Logistics Co., Ltd. Foshan Chengtong Paper Co., Accounts payable 267,230.97 Ltd. Guangdong Guanhao High-tech Accounts payable 109,865.03 50,184.38 Co., Ltd. Tianjin Port Free Trade Zone Accounts payable Zhongwu Investment 12,906,627.84 Development Co., Ltd. Other account payable Guangdong Chengtong 570,384.98 392,547.84 Logistics Co., Ltd. Foshan Huaxin Development Other account payable 5,000,000.00 1,100,000.00 Co., Ltd. China National Paper Industry Other account payable 14,355.00 Investment Corp. Interest payable Chengtong Finance Co., Ltd. 44,458.33 196,000.00 China Chengtong Holding Interest payable 16,780,833.35 Group Co., Ltd. Other non-current liabilities due China Chengtong Holding 418,750,000.00 within 1 year Group Co., Ltd. 7. Related party commitment Reviewed and approved by the 1st Meeting of the 5th Session of the Board of Directors on 7 Mar. 2014, 2013 General Meeting of Shareholders on 16 May 2015, the 3rd Meeting of the 5th Session of the Board of Directors on 19 May 2014 and the 1st Special Meeting of shareholders on 6 Jun. 2014, the Company provided no more than RMB 2.4 billion guarantee for loan to its subsidiaries Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd.( including Zhuhai Huafeng Paper Co., Ltd. , Zhuhai Jinji Chemical Co., Ltd. and Huaxin (Foshan) Color Printing Co., Ltd. allowed Hongta Renheng providing maximum guarantee RMB 400,000,000, in total of RMB 2.8 billion. When applying for integrated Credit/Loan to the bank, will within line of guarantee, the Company will provide the joint liability guarantee, the guarantee amount, every deal and guarantee period will be agreed in the specific contract. 11. Commitments 1. Significant commitments Significant commitments at balance sheet date As of 31 Dec. 2015, there were no significant commitments to be disclosed. 2. Contingency (1) Significant contingency at balance sheet date Pending action, contingency formed by arbitration and its financial influence (1) The Company’s sub-subsidiary Zhuhai Jinji Chemical Co., Ltd. signed a loan contract with Guangzhou Hong He Gu Kang Ti Leisure Co., Ltd. (hereinafter referred to as“Hong He Gu Company”) on 12 Dec. 2011, the contract agree that Hong He Gu Company borrowed RMB 500000 from Zhuhai Jinji Chemical Co., Ltd. the term of the loan was from 12 Dec. 2011 to 31 May 2012. When the contract expired, Hong He Gu Company should take the initiative to repay the loan principal and interest. The legal representative Wang Renhe should be the guarantee of Hong He Gu Company. On 12 Dec. 2012, the Contract was maturity; Hong He Gu Company did not paid the loan as agreed. In line with Civil Judgment (2015) ZJFPMCZ No. 20, the Hong He Gu Company should repay RMB500,000 to the Company and Wang Renhe should bare the joint liquidated liability. Zhuhai Jinji Chemical Co., Ltd. had individually withdrawn 100% bad debt provision for the said other account receivable of RMB 500000 of Hong He Gu Company. (2) As of 31 Dec. 2015, Guangdong Regall Group Co., Ltd. (hereinafter referred to as “Regall Group”) owed a goods payment of RMB 9,919,562.58 to the Company’s subsidiary Zhuhai S.E.Z Hongta Renheng Paper Co., Ltd. (hereinafter referred to as “Hongta Renheng”) (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, 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 Huangfu People’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 the Company’s Notice on Terminating Agreement legally null. Hongta Renheng appealed to Guangzhou Intermediate People’s Court against the decision and Guangzhou Intermediate People’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 Group wasn’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 Intermediate People’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 withdrawn 100% bad debt provision for the said account receivable at full amount. (3) As of 31 Dec. 2015, 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 withdrew 90% bad debt provision for the said account receivable in 2010, yet didn’t change the ratio of bad debt provision due to uncertainty of receiving goods payment. (4) As of 31 Dec. 2015,, 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 withdrew 90% 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 withdraw 90% bad debt provision for the said account receivable at period-end. (5) As of 31 Dec. 2015, 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 withdrew 50% 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 withdraw 50% bad debt provision for the said account receivable. (6) As of 31 Dec. 2015, 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 won the first instance; however there were no properties to execute the judgment, so it continued to withdraw 100% bad debt provision for the said account receivable at period-end. (7) As of 31 Dec. 2015, 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.In 2014, through negotiation, Hongta Renheng withdrew RMB 1.5 million, and the balance was RMB 3,402,239.70, withdrew 85.59% bad debt provision for the said account receivable at period-end. So it continued to withdraw 85.59% bad debt provision for the said account receivable. (8) As of 31 Dec. 2015, Kaifeng Boke Printing Co., Ltd owned good payment of Zhuhai Huafeng Paper Co., Ltd. RMB4,635,249.60. In line with Civil Judgment (2015) ZJFMECZ No. 609, Kaifeng Boke Printing Co., Ltd should repay RMB4,635,249.60 and relevant interest. Zhuhai Huafeng Paper Co., Ltd. had applied to the court for property attachment prior to lawsuit, and frozen bank deposit of respondent, closed down his land and equipment, estimated fully recovered the payment of good. As of 31 Dec. 2015, the aforesaid account receivable withdraw bad debt provision measured by aging, the income of interest was derecognized. 12.Events after balance sheet date 1. The restructuring of Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. On 14 Dec. 2015, the Company's subsidiary Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd. changed as incorporated company and considered 31 Jul. 2015 as the base date, which reviewed and approved by the Board of Directors, and the share capital was RMB600 million after change and the shareholding proportion remained unchanged. On 29 Jan. 2016, Zhuhai S.E.Z. Hongta Renheng Paper Packing Co., Ltd. held Establish Meeting. 1 Mar. 2016, the change of industrial and commercial registration of Zhuhai S.E.Z. Hongta Renheng Paper Packing Co., Ltd. had been completed, and the Name of the Company was officially changed. 2. Profit distribution Company the sixth session of the board of directors in 2016 fourth meeting examined and approved the company 2015 annual profit distribution plan, proposed by December 31, 2015, a total of 8, 50542 shares of base, every 10 shares sent to all shareholders in cash dividend of 0.38 yuan (including tax), don't send bonus, nor to accumulation fund turn add equity. Companies to adopt this scheme to pay cash dividend of 19206105 yuan, including pay legal person shareholder is 12673000 yuan, circulation shareholders is RMB 6533150. 3.In addition to the balance sheet date, as at the financial reporting date, the Company had no other disclosure of material undisclosed balance sheet date events. 13. Other important transactions and events have an impact on investors’ decision-making 1. 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 Special Shareholders’ 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 of 5.8%, and the term of bonds was five years from the date of issuance. The issue amounts of bond pre-set online and offline were RMB100, 000,000.00 and 700,000,000.00. 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. 2. In line with the Company held the Second Special Meeting of the General Shareholders on 10 Nov. 2014, the meeting reviewed and approved the Proposal of the Issue of Medium-Term Notes which agreed to issue no more than RMB five hundred million of the medium-term note used for the supplement of the Company's cash flow and working capital. On 12 Jun. 2015, the Company received the Acceptance of Registration Notice ZSXZ [2015] No. MTN253 which agreed to the Company's registration of Medium-Term Notes, which issued by NAFMII. On 29 Jul. 2015, the Company's total issue amount was RMB200, 000,000.00, coupon rate 5.28%, the limitation of Medium-Term Notes was 3 years, and the raised capital after deducting the bond issuance underwriting fees and custodian fees was RMB199, 100,000.00. 14. Notes of main items in the financial statements of the Company 1. Accounts receivable (1) Accounts receivable classified by category Unit: RMB Yuan Closing balance Opening balance Book balance Bad debt provision Book balance Bad debt provision Category Withdra Book Proportio wal Proportio Withdrawal Book value Amount Amount value Amount Amount n proportio n proportion n Accounts receivable 12,775,4 12,775,46 42,393, 42,393,540. 100.00% 100.00% withdrawal of bad 61.68 1.68 540.95 95 debt provision of by credit risks characteristics: 12,775,4 12,775,46 42,393, 1,005.00 42,393,540. Total 100.00% 61.68 1.68 540.95 % 95 Accounts receivable with significant single amount for which bad debt provision separately accrued at the 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 Aging Account receivable Bad debt provision Withdrawal proportion Subentry within 1 year 1-3 months 12,775,461.68 Total 12,775,461.68 Notes: 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: (2) Bad debt provision withdrawal, reversed or recovered in the report period The withdrawal amount of the bad debt provision during the reporting period was of RMBXXX; the amount of the reversed or collected part during the reporting period was of RMBXXX. Significant amount of reversed or recovered bad debt provision Unit: RMB Yuan Name of the entity Amount Method (3) Particulars of the actual verification of accounts receivable during the reporting period Unit: RMB Yuan Item Amount Of which: significant actual verification of accounts receivable Unit: RMB Yuan Whether occurred Name of the entity Nature Amount Reason Procedure because of related party transactions Notes: (4) Top five of account receivable of closing balance collected by arrears party Name of the entity Closing balance Proportion% Bad debt provision withdrawn Customer A 2,642,544.18 20.68 --- Customer B 4,349,692.84 34.05 --- Customer C 1,279,271.85 10.01 --- Customer D 4,503,952.81 35.26 --- Total 12,775,461.68 100.00 --- (5) Derecogniziton of account receivable due to the transfer of financial assets (6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable Other notes: 2. Other accounts receivable (1) Other account receivable classified by category Unit: RMB Yuan Closing balance Opening balance Book balance Bad debt provision Book balance Bad debt provision Category Withdra Book Proportio wal Proportio Withdrawal Book value Amount Amount value Amount Amount n proportio n proportion n Other accounts receivable withdrawn 1,437,5 964,414, 964,414,1 1,437,567,9 bad debt provision 100.00% 67,917. 100.00% 178.70 78.70 17.18 according to credit 18 risks characteristics 1,437,5 964,414, 964,414,1 1,437,567,9 Total 100.00% 67,917. 100.00% 178.70 78.70 17.18 18 Other accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end □ Applicable √ Inapplicable In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision: √ Applicable □ Inapplicable Unit: RMB Yuan Closing balance Aging Other accounts receivable Bad debt provision Withdrawal proportion Subentry within 1 year 1-3 months 105,163,917.24 4-12 months Total 105,621,194.10 Notes: In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision □ Applicable √ Inapplicable In the groups, other accounts receivable adopting other methods to withdraw bad debt provision: □ Applicable √ Inapplicable (2) Accounts receivable withdraw, reversed or collected during the reporting period The withdrawal amount of the bad debt provision during the reporting period was of RMBXXX; the amount of the reversed or collected part during the reporting period was of RMBXXX. Significant amount of reversed or recovered bad debt provision; Unit: RMB Yuan Name of the entity Reversed or collected amount Method (3) Particulars of the actual verification of other accounts receivable during the reporting period Unit: RMB Yuan Item Amount Of which: significant actual verification of other accounts receivable Unit: RMB Yuan Whether occurred Name of the entity Nature Amount Reason Procedure because of related party transactions Notes of write-off other accounts receivable: (4) Other account receivable classified by account nature Unit: RMB Yuan Nature Closing book balance Opening book balance Pretty cash, etc 457,276.86 244,868.03 Payment on behalf 163,917.24 Land purchase and storage fee 64,499,000.00 Amount of equity transfer 105,000,000.00 Intercourse fund in consolidated scope 858,792,984.60 1,372,824,049.15 Total 964,414,178.70 1,437,567,917.18 (5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party Unit: RMB Yuan Closing balance of Name of the entity Nature Closing balance Aging Proportion% bad debt provision Zhuhai S.E.Z. Hongta Renheng Paper Co., Intercourse funds 637,819,153.58 1-3 years 66.14% Ltd. Huaxin (Foshan) Color Printing Co., Intercourse funds 145,775,154.35 1-3 years 15.12% Ltd. Lion Fund Amount of equity 105,000,000.00 1-3 months 10.89% Management Co., Ltd. transfer Zhuhai Huafeng Intercourse funds 75,198,676.67 1-3 years 7.80% Paper Co., Ltd. Payment on behalf Withholding charge 163,917.24 1-3 months 0.02% Total -- 963,956,901.84 -- 99.97% (6) Account receivable involving government subsidies Unit: RMB Yuan Project of government Estimated recovering Name of the entity Closing balance Closing aging subsidies time, amount and basis (7) Other account receivable derecognized due to the transfer of financial assets (8) Amount of transfer other account receivable and assets and liabilities formed by its continuous involvement Other notes: 3. Long-term equity investment Unit: RMB Yuan Closing balance Opening balance Item Depreciation Depreciation Book balance Book value Book balance Book value reserves reserves Investment to the 1,058,107,442.14 1,058,107,442.14 1,280,107,442.14 1,280,107,442.14 subsidiary Investment to joint ventures and 254,253,797.80 254,253,797.80 238,518,574.19 238,518,574.19 associated enterprises Total 1,312,361,239.94 1,312,361,239.94 1,518,626,016.33 1,518,626,016.33 (1) Investment to the subsidiary Unit: RMB Yuan Withdrawn Closing balance impairment Investee Opening balance Increase Decrease Closing balance of impairment provision in the provision reporting period Huaxin (Foshan) Color Printing Co., 122,536,745.03 122,536,745.03 Ltd. Foshan Chengtong 225,000,000.00 225,000,000.00 Paper Co., Ltd. Zhuhai S.E.Z. Hongta Renheng 927,570,697.11 927,570,697.11 Paper Co., Ltd. Kunshan Focai Packaging & 5,000,000.00 5,000,000.00 Printing Co., Ltd. Pinghu Huaxin Packing Material 3,000,000.00 3,000,000.00 Co., Ltd Total 1,280,107,442.14 3,000,000.00 225,000,000.00 1,058,107,442.14 (2) Investment to joint ventures and associated enterprises Unit: RMB Yuan Increase/decrease in reporting period Closing Opening Closing Investee Additiona Negative Investme Adjustme Other Declarati Withdraw balance balance Other balance l investmen nt profit nt of equity on of cash n of investmen t and loss other changes dividends impairme impairme t recognize comprehe or profits nt nt d under nsive provision provision the equity income method I. Joint ventures II. Associated enterprises Chengton 238,518,5 15,735,22 254,253,7 g Finance 74.19 3.61 97.80 Co., Ltd. 238,518,5 15,735,22 254,253,7 Subtotal 74.19 3.61 97.80 238,518,5 15,735,22 254,253,7 Total 74.19 3.61 97.80 (3) Other notes 1. On acquisition date as 30 Jun. 2009, the Company gained 40.176% 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 to 41.9653%, 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 Limited didn’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 reporting period. 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 purchase 25% equity of 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 (Foshan) Color Printing Co., Ltd. of RMB 199,450,300 as reference, and the both parties agreed to transfer 25% 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. 3. The Company disposed Foshan Chengtong Paper Co., Ltd. in reporting period, for details, see note VIII, Change in consolidated scope. 4. On 23 Dec. 2013, the Company’s Third Special General Meeting of Shareholders reviewed and approved the Proposal on purchasing the 20% equity related transaction of Chengtong financial Co., Ltd. held by China National Paper Industry Investment Corp..On 23 Jan. 2014, Chengtong financial Co., Ltd. had sign Equity Transfer Agreement with China National Paper Industry Investment Corp., plan to transfer 20% of equity to China National Paper Industry Investment Corp., after negotiation by both parties, agreed that the transfer price was RMB 231.4502 million, Chengtong financial Co., Ltd. had changed its shareholder registration on 23 Jun. 2014. Thus, since Jul. 2014, Chengtong financial Co., Ltd. held equity proportion was 20%, calculated at equity method. Thus the Company held 20% equity of Chengtong Finance Co., Ltd. since Jul. 2014 and be measured by equity method. 4. Revenues and operating costs Unit: RMB Yuan Reporting period Same period of last year Item Revenue Operating costs Revenue Operating costs Main operations 255,247,489.31 255,247,489.31 218,075,280.68 218,075,280.68 Other operations 70,182,959.97 Total 255,247,489.31 255,247,489.31 288,258,240.65 218,075,280.68 Other notes: 5. Investment income Unit: RMB Yuan Item Reporting period Same period of last year Long-term equity investment income 19,796,783.06 accounted by cost method Long-term equity investment income 15,735,223.61 7,068,374.19 accounted by equity method Investment income arising from disposal of -75,000,000.00 long-term equity investments Total -39,467,993.33 7,068,374.19 15. Supplementary materials 1. Items and amounts of extraordinary gains and losses √ Applicable □ Inapplicable Unit: RMB Yuan Item Amount Explanation Gains/losses on the disposal of non-current assets 114,279,468.16 Tax rebates, reductions or exemptions due to approval beyond authority or the lack of official approval 16,481,293.41 documents Gains and losses from debt restructuring 2,288,256.01 Gain/loss from change of fair value of transactional assets and liabilities, and investment gains from disposal of transactional financial assets and liabilities and -5,985,459.17 available-for-sale financial assets, other than valid hedging related to the Company’s common businesses Other non-operating income and expenses other than the 2,386,314.75 above Less: Income tax effects 1,604,695.65 Minority interests effects 5,926,442.49 Total 121,918,735.02 -- 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 the Public—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 2. Return on equity (ROE) and earnings per share (EPS) EPS（Yuan/share） Profit as of reporting period Weighted average ROE (%) EPS-basic EPS-diluted Net profit attributable to common 7.10% 0.26 0.26 shareholders of the Company Net profit attributable to common shareholders of the Company after 0.60% 0.02 0.02 deduction of non-recurring profit and loss Foshan Huaxin Packaging Co.,Ltd.. March 18, 2016
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