中顺洁柔：2021年第一季度报告全文（英文版）.PDF
Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021 1 C&S Paper Co., Ltd. Report for the First Quarter o f 2021 April 2021 Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021 2 Section I Important Notice The Board of Directors and the Board of Supervisors of the Company and its directors, supervisors and senior management warrant that the information contained in the quarterly report is truthful, accurate and complete and there are no false presentations or misleading statements contained in, or material omissions from, this report, and that they assume severally and jointly legal liability. All directors attended the meeting of the Board of Directors where this quarterly report was reviewed. Declaration by Deng Yingzhong, legal representative, Dong Ye, the person in charge of accounting, and Xu Xianjing, the person in charge of Accounting Department of the Company, warrant that the financial statements contained in this report are truthful, accurate, and complete. Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021 3 Section II Basic Information I. Main Accounting Data and Financial Indicators Whether the Company needs to perform retrospective adjustment or restatement of accounting data for previous years Yes No Current reporting period The same period of the previous year YoY change Operating income (RMB) 2,102,126,213.63 1,670,909,073.75 25.81% Net profit attributable to shareholders of the listed company (RMB) 271,122,802.99 183,429,517.35 47.81% Net profit attributable to shareholders of the listed company less non-recurring profit and loss (RMB) 267,298,568.37 186,893,864.62 43.02% Net cash flow from operating activities (RMB) 334,905,166.23 330,547,734.57 1.32% Basic earnings per share (RMB/share) 0.2091 0.1426 46.63% Diluted earnings per share (RMB/share) 0.2058 0.1395 47.53% Weighted average return on net assets 5.34% 4.41% 0.93% End of the current reporting period End of the previous year Changes at the end of the current reporting period compared with the end of the previous year Total assets (RMB) 7,327,573,419.58 7,478,439,747.77 -2.02% Net asset attributable to shareholders of the listed company (RMB) 5,108,051,020.43 5,042,146,076.42 1.31% Items and amounts of non-recurring profit and loss Applicable Inapplicable Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021 4 Unit: RMB Item Amount from the beginning of the year to the end of the reporting period Remarks Profit and loss from disposal of non-current assets (including the offset portion with provisions for asset impairment already set aside) -20,876.50 Government grants measured at fair value through profit and loss of the current period (except for the government grants that are closely related to the Companys business and distributed in a fixed quota or amount in accordance with unified national standards) 3,998,966.50 Profit and loss from assets entrusted to others for investment or management 307,027.09 Other non-operating income and expenses excluding the above items 355,425.97 Less: Influence of income tax 816,308.44 Total 3,824,234.62 - The reasons why the Company defined certain items as non-recurring profit and loss in line with the No. 1 Explanatory Announcement on Information Disclosure of Companies Offering Securities to the PublicNon-recurring Profit and Loss and some items listed in the above announcement as recurring profit and loss shall be specified. Applicable Inapplicable The Company did not define any non-recurring profit and loss defined or listed in the No. 1 Explanatory Announcement on Information Disclosure of Companies Offering Securities to the PublicNon-recurring Profit and Loss as recurring profit and loss. II. Table of the Total Number of Shareholders and Holdings of the Top Ten Shareholders at the End of the Reporting Period 1. Table of the total number of common shareholders, the number of preferred shareholders with voting right resumption, and holding of the top ten shareholders Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021 5 Unit: Share Total number of common shareholders at the end of the reporting period 63,824 Total number of preferred shareholders with voting rights restored at the end of the reporting period (if any) 0 Particulars of shareholding of the top ten shareholders Name of shareholder Nature of shareholder Shareholding percentage Number of shares held Number of shares held subject to restrictions on sales Pledged or locked-up shares Share status Number of shares Guangdong Zhongshun Paper Group Co., Ltd. Domestic non-state-owned legal person 28.63% 375,655,958 Chung Shun Co. Foreign legal person 20.31% 266,504,789 Hong Kong Securities Clearing Co., Ltd. Foreign legal person 6.72% 88,174,456 National Social Security Fund Portfolio 406 Others 1.00% 13,112,327 Yue Yong Domestic natural person 0.74% 9,665,241 7,939,243 China Construction Bank Co., Ltd. Fullgoal Value Creation Hybrid Securities Investment Fund Others 0.69% 9,096,907 Industrial and Commercial Bank of China Limited Caitong Asset Management Equilibrium Value One-Year Hybrid Securities Investment Fund Others 0.69% 9,085,652 National Social Security Fund Portfolio 101 Others 0.63% 8,226,778 Deng Yingzhong Domestic natural person 0.51% 6,752,811 5,064,608 Industrial and Commercial Others 0.51% 6,729,000 Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021 6 Bank of China Limited Fullgoal Consumption Selection 30-share Equity Securities Investment Fund Particulars of shareholding of the top ten shareholders not subject to restrictions on sales Name of shareholder Number of shares held not subject to restrictions on sales Type of shares Type of shares Number of shares Guangdong Zhongshun Paper Group Co., Ltd. 375,655,958 RMB-denominated ordinary shares 375,655,958 Chung Shun Co. 266,504,789 RMB-denominated ordinary shares 266,504,789 Hong Kong Securities Clearing Co., Ltd. 88,174,456 RMB-denominated ordinary shares 88,174,456 National Social Security Fund Portfolio 406 13,112,327 RMB-denominated ordinary shares 13,112,327 China Construction Bank Co., Ltd. Fullgoal Value Creation Hybrid Securities Investment Fund 9,096,907 RMB-denominated ordinary shares 9,096,907 Industrial and Commercial Bank of China Limited Caitong Asset Management Equilibrium Value One-Year Hybrid Securities Investment Fund 9,085,652 RMB-denominated ordinary shares 9,085,652 National Social Security Fund Portfolio 101 8,226,778 RMB-denominated ordinary shares 8,226,778 Industrial and Commercial Bank of China Limited Fullgoal Consumption Selection 30-share Equity Securities Investment Fund 6,729,000 RMB-denominated ordinary shares 6,729,000 Investec Asset Management Co., Ltd. Investec Global Fund Strategy China Stock Fund (Exchange) 6,196,738 RMB-denominated ordinary shares 6,196,738 Zhongshan Xinda Investment Management Co., Ltd. 6,083,636 RMB-denominated ordinary shares 6,083,636 Whether the above-mentioned shareholders have a related party relationship or are persons acting in concert 1. Among the top ten shareholders mentioned above, Guangdong Zhongshun Paper Group Co., Ltd. and Chung Shun Co. are the enterprises controlled by Deng Yingzhong, Deng Guanbiao and Deng Guanjie, de facto controllers of the Company. That is, Guangdong Zhongshun Paper Group Co., Ltd. and Chung Shun Co. are related parties. Yue Yong is now an officer of the Company. Deng Yingzhong is one of the current directors and de facto Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021 7 controllers of the Company. 2. The Company does not figure out whether there is a related party relationship between other shareholders, and whether there is a person acting in concert as stipulated in the Administrative Measures for the Disclosure of Information on Changes in Shareholders Shareholding of Listed Companies. Description of top ten shareholders engaging in margin trading and short-selling (if any) None Whether the top ten common shareholders and the top ten shareholders not subject to restrictions on sales conducted the agreed repurchase transaction during the reporting period Yes No The Companys top ten common shareholders and top ten common shareholders not subject to restrictions on sales did not conduct any agreed repurchase transaction during the reporting period. 2. Table of the total number of preferred shareholders and holdings of the top ten preferred shareholders Applicable Inapplicable Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021 8 Section III Important Events I. Changes in the Main Financial Data and Financial Indicators during the Reporting Period and Reasons for Such Changes Applicable Inapplicable i. Balance sheet Other current assets: Other current assets decreased by RMB46,285,103.42 or 45.56% at the end of the current reporting period from the end of 2020, mainly due to the decrease in the principal of wealth management products in the current reporting period. Construction work in progress: Construction work in progress decreased by RMB131,714,825.65 or 47.74% at the end of the current reporting period from the end of 2020, mainly due to the carry-forward of ready-for-use construction work in progress to fixed assets in the current reporting period. Right-of-use assets: Right-of-use assets increased by RMB9,531,693.59 or 100.00% at the end of the current reporting period from the end of 2020, mainly due to the recognition of lease assets as right-for-use assets after the implementation of new leasing standards during the current reporting period. Short-term loans: Short-term loans decreased by RMB52,896,691.34 or 37.01% at the end of the current reporting from the end of 2020, mainly due to the reduction of short-term loans from banks in the current reporting period. Lease liabilities: Lease liabilities increased by RMB 9,905,754.18 or 100.00% at the end of the current reporting period from the end of 2020, mainly due to the recognition of lease liabilities after the implementation of new leasing standards during the current reporting period. Treasury shares: Treasury shares increased RMB216,125,181.28 or 224.01% at the end of the current reporting period from the end of 2020, mainly due to the increase of repurchased shares of the Company in the current reporting period. ii. Income statement Operating costs: Operating costs increased by 334,673,338.95 or 36.50% on a year-on-year basis, mainly due to (1) the increase in the operating income and (2) the transfer of transportation cost from selling expenses to operating costs in line with new income standards in the current reporting period. Finance expenses: Finance expenses decreased by RMB5,478,761.02 or 265.17% on a year-on-year basis, mainly Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021 9 due to the increase in bank interest income and the decrease in exchange gain or loss in the current reporting period. Other income: Other income increased by RMB1,594,937.84 or 45.32% on a year-on-year basis, mainly due to the increase in government grants in the current reporting period. Return on investment: Return on investment decreased by RMB415,773.01 or 57.52% on a year-on-year basis, mainly due to the increase in the wealth management income in the current reporting period. Credit impairment losses: Credit impairment losses decreased by RMB3,316,135.69 or 237.45% on a year-on-year basis, mainly due to the decrease in allowance for credit impairment losses on receivables in the current reporting period. Asset impairment losses: Asset impairment losses increased by RMB1,198,081.41 or 129.89% on a year-on-year basis, mainly due to the increase in the allowance for impairment losses on fixed assets in the current reporting period. Return on disposal of assets: Return on disposal of assets increased by RMB332,618.33 or 117.37% on a year-on-year basis, mainly due to the increase in the gains from disposal of fixed assets in the current reporting period. Non-operating income: Non-operating income decreased by RMB1,588,555.61 or 68.33% on a year-on-year basis, mainly due to the decrease in government grants in the current reporting period. Non-operating expenditure: Non-operating expenditure decreased by RMB9,824,829.50 or 86.25% on a year-on-year basis, mainly due to the reduction of donations in the current reporting period. Income tax expense: Income tax expense increased by RMB19,081,102.77 or 49.10% on a year-on-year basis, mainly due to the increase in total profit in the current reporting period. iii. Items in the cash flow statement Net cash flow from financing activities: Net cash flow from financing activities decreased by RMB193,879,421.36 or 262.15% on a year-on-year basis, mainly due to the decreased cash payment of loan proceeds received and increased payment for repurchased shares of the Company in the current reporting period. II. An Analysis of the Progress and Impact of Important Issues and Solutions Applicable Inapplicable 1. The election for the 5th Board of Directors and the Board of Supervisors: In January 2021, the Company completed the election for a new Board of Directors and Board of Supervisors, elected Chairman and Vice Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021 10 Chairman of the 5th Board of Directors, members of special committees, and Chairman of the Board of Supervisors, and appointed President, Vice President, Secretary of the Board of Directors, Financial Director, Head of Audit Department, and Representative of Securities Affairs. 2. Second Employee Stock Ownership Plan: As of January 5, 2021, the 11,709,583 shares held under the second Employee Stock Ownership Plan had been sold completely, with the termination of this Employee Stock Ownership Plan. 3. The Companys share repurchase matters: In January 2021, the Company launched a Share Repurchase Plan. As of March 24, 2021, a total of 8,983,877 shares (0.6848% of total share capital) of the Company had been repurchased with the maximum transaction price of RMB25.8/share, the minimum transaction price of RMB23.27/share, and a total transaction amount of RMB216,125,181.33 (excluding transaction costs). 4. New 400,000-ton high-end tissue paper production project: In order to further expand its production capacity, meet the requirement for further sales growth in the East China market, and increase its profit growth points, the Company launched a new 400,000-ton high-end tissue paper production project with a total investment of around RMB 2.55 billion. With a total planned production capacity of 400,000 tons, the project will be implemented in phases. For phase I of the project, around RMB 600 million will be invested and an annual production capacity of high-end tissue paper will reach around 100,000 tons. 5. Other matters of the Company and its subsidiary: C&S (Sichuan) Co., Ltd., a wholly-o
