C&S Paper Co., Ltd. — Interim / Quarterly Report 2021

Apr 28, 2021

Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

C&S Paper Co., Ltd.

Report for the First Quarter o f 2021

April 2021

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

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.

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

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

		The same period of the
	Current reporting period		YoY change
		previous year
	2,102,126,213.63	1,670,909,073.75
Operating income (RMB)			25.81%
Net profit attributable to shareholders of	271,122,802.99	183,429,517.35
			47.81%
the listed company (RMB)
Net profit attributable to shareholders of
the listed company less non-recurring	267,298,568.37	186,893,864.62	43.02%
profit and loss (RMB)
Net cash flow from operating activities	334,905,166.23	330,547,734.57
			1.32%
(RMB)
	0.2091	0.1426
Basic earnings per share (RMB/share)			46.63%
	0.2058	0.1395
Diluted earnings per share (RMB/share)			47.53%
Weighted average return on net assets	5.34%	4.41%	0.93%
			Changes at the end of
			the current reporting
	End of the current
		End of the previous year	period compared with
	reporting period
			the end of the previous
			year
	7,327,573,419.58	7,478,439,747.77
Total assets (RMB)			-2.02%
Net asset attributable to shareholders of	5,108,051,020.43	5,042,146,076.42
			1.31%
the listed company (RMB)

Items and amounts of non-recurring profit and loss

√ Applicable □ Inapplicable

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

Unit: RMB

	Amount from the beginning
Item	of the year to the end of the	Remarks
	reporting period
Profit and loss from disposal of non-current assets
(including the offset portion with provisions for asset	-20,876.50
impairment already set aside)
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 Company's business	3,998,966.50
and distributed in a fixed quota or amount in accordance
with unified national standards)
Profit and loss from assets entrusted to others for
	307,027.09
investment or management
Other non-operating income and expenses excluding the
	355,425.97
above items
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

Public—Non-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 Public—Non-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

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

Unit: Share

			Total number of preferred	Total number of preferred
Total number of common shareholders at the			shareholders with voting
		63,824			0
end of the reporting period			rights restored at the end of
			the reporting period (if any)
Particulars of shareholding of the top ten shareholders
				Number of	Pledged or locked-up
				shares held	shares
	Nature of	Shareholding	Number of
Name of shareholder				subject to
	shareholder	percentage	shares held		Share	Number of
				restrictions
					status	shares
				on sales
Guangdong Zhongshun Paper Group Co., Ltd.	Domestic non-state-ow ned 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

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

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
		Number of shares held		Type of shares
Name of shareholder		not subject to restrictions
				Type of shares		Number of shares
		on sales
Guangdong Zhongshun Paper Group Co., Ltd.		375,655,958		RMB-denominate d ordinary shares
						375,655,958
Chung Shun Co.		266,504,789		RMB-denominate d ordinary shares
						266,504,789
Hong Kong Securities Clearing Co., Ltd.		88,174,456		RMB-denominate d ordinary shares
						88,174,456
National Social Security Fund Portfolio 406		13,112,327		RMB-denominate d ordinary shares
						13,112,327
China Construction Bank Co., Ltd. – Fullgoal Value Creation Hybrid Securities Investment Fund		9,096,907		RMB-denominate d 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-denominate d ordinary shares
						9,085,652
National Social Security Fund Portfolio 101		8,226,778		RMB-denominate d 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-denominate d ordinary shares
						6,729,000
Investec Asset Management Co., Ltd. – Investec Global Fund Strategy – China Stock Fund (Exchange)		6,196,738		RMB-denominate d ordinary shares
						6,196,738
Zhongshan Xinda Investment Management Co., Ltd.		6,083,636		RMB-denominate d ordinary shares
						6,083,636
		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. DengYingzhongis one of the current directors and de facto
Whether the above-mentioned shareholders
have a related party relationship or are
persons acting in concert

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

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 None in margin trading and short-selling (if any)

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 Company's 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

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

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

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

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 5[th] 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

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

Chairman of the 5[th] 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.

1. 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.

2. The Company's 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).

3. 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.

4. Other matters of the Company and its subsidiary: C&S (Sichuan) Co., Ltd., a wholly-owned subsidiary of the Company, may enjoy a preferential policy of reduced corporate income tax rate of 15% after re-identification, recertification and filing upon expiration of the valid period of its High-Tech Enterprise Certificate . The business scopes of 6 subsidiaries of the Company have been expanded. The registered capital of the Company decreased due to the repurchase and deregistration of restricted stocks under the Stock Incentive Plan. C&S (Yunfu) Trading Co., Ltd., a wholly-owned subsidiary of the Company, was renamed "Yunfu Hengtai Commerce and Trade Co., Ltd."

5. Personnel change matters: In March 2021, the President of the Company was changed from Deng Guanbiao to Liu Peng. In March 2021, Yue Yong, a director of the Company, resigned. In April 2021, Liu Peng was elected as a director of the Company. In April 2021, the Chairman of the Company was changed from Deng Yingzhong to Liu

Peng, and Li Zhaojin was appointed as Vice President of the Company.

Description of important
	Date of disclosure	Inquiry and index of temporary report disclosure websites
matters
Election of the 5thBoard of Directors and Board of		Announcement on the Election of a New Board of
	January 6, 2021
		Directors, the_Announcement on Election of a New Board_

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

Supervisors		of Supervisors, the_Announcement on Resolutions of the_
		30th Meeting of the Fourth Board of Directors, and the
		Announcement on Resolutions of the 24th Meeting of the
		Fourth Board of Directors_disclosed in the_China
		Securities Journal,Securities Times,_Securities Daily_as
		well as Cninf.
		Announcement on Election of New Employees'
		Representatives and Supervisors_disclosed in the_China
	January 14, 2021
		Securities Journal,Securities Times,_Securities Daily_as
		well as Cninf.
		Announcement on Resolutions of the First Extraordinary
		General Meeting in 2021, the_Announcement on_
		Resolutions of the 1st Meeting of the Fifth Board of
		Directors, the_Announcement on Resolutions of the 1st_
		Meeting of the Fifth Board of Supervisors, the
	January 22, 2021
		Announcement of Appointment of Officers, and the
		Announcement on Appointment of the Head of Audit
		Department and the Representative of Securities Affairs
		disclosed in the_China Securities Journal_,Securities Times,
		_Securities Daily_as well as Cninf.
Second Employee Stock Ownership Plan		Announcement on Completion of Sale of Shares under and
		Termination of the Second Employee Stock Ownership
	January 6, 2021
		Plan_disclosed in the_China Securities Journal,Securities
		Times,_Securities Daily_as well as Cninf.
The Company's share repurchase matters		_Plan for Repurchase of Partial Social Public Shares_and
		the_Announcement on Resolutions of the 30th Meeting of_
	January 6, 2021	the Fourth Board of Directors_disclosed in the_China
		Securities Journal,Securities Times,_Securities Daily_as
		well as Cninf.
		_Announcement on the First Repurchase of Shares_disclosed
	January 28, 2021	in the_China Securities Journal_,Securities Times,
		_Securities Daily_as well as Cninf.
		Announcement on Progress Made in Repurchase of Shares
	January 29, 2021	disclosed in the_China Securities Journal_,Securities Times,
		_Securities Daily_as well as Cninf.
		Announcement on Progress Made in Repurchase of Shares
	January 30, 2021
		disclosed in the_China Securities Journal_,Securities Times,

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

		_Securities Daily_as well as Cninf.
		Announcement on Progress Made in Repurchase of Shares
	February 3, 2021	disclosed in the_China Securities Journal_,Securities Times,
		_Securities Daily_as well as Cninf.
		Announcement on Progress Made in Repurchase of Shares
	February 5, 2021	disclosed in the_China Securities Journal_,Securities Times,
		_Securities Daily_as well as Cninf.
		Announcement on Progress Made in Repurchase of Shares
	March 3, 2021	disclosed in the_China Securities Journal_,Securities Times,
		_Securities Daily_as well as Cninf.
		Announcement on Progress Made in Repurchase of Shares
	March 24, 2021	disclosed in the_China Securities Journal_,Securities Times,
		_Securities Daily_as well as Cninf.
		Announcement on Progress Made in Repurchase of Shares
	March 25, 2021	disclosed in the_China Securities Journal_,Securities Times,
		_Securities Daily_as well as Cninf.
New 400,000-tone high-end tissue paper production project		Announcement on Launch of a New 400,000-ton High-End
		Tissue Paper Production Project_and the_Announcement on
	January 14, 2021	_the 31st Meeting of the Fourth Board of Directors_disclosed
		in the_China Securities Journal_,Securities Times,
		_Securities Daily_as well as Cninf.
		Announcement on Investment in Establishment of a
		Wholly-owned Subsidiary and Completion of Its Industrial
	February 27, 2021	and Commercial Registration_disclosed in the_China
		Securities Journal,Securities Times,_Securities Daily_as
		well as Cninf.
		Announcement on Progress Made in the New 400,000-ton
		_High-End Tissue Paper Production Project_disclosed in the
	March 16, 2021
		China Securities Journal,Securities Times,Securities
		_Daily_as well as Cninf.
Other matters of the Company and its subsidiary		Announcement on the Acquisition of High-Tech Enterprise
		Certificate (Renewal) by a Wholly-owned Subsidiary
	January 15, 2021
		disclosed in the_China Securities Journal_,Securities Times,
		_Securities Daily_as well as Cninf.
		Announcement on Completion of Industrial and
	January 22, 2021
		Commercial Registration Amendment for Subsidiaries

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

		disclosed in the_China Securities Journal_,Securities Times,
		_Securities Daily_as well as Cninf.
		Announcement on Completion of Industrial and
		Commercial Registration Amendment for the Company
	March 4, 2021
		disclosed in the China Securities Journal, Securities Times,
		Securities Daily as well as Cninf.
		Announcement on Change of Company Name and Business
		Scope and Completion of Industrial and Commercial
	March 10, 2021	_Registration for a Wholly-owned Subsidiary_disclosed in
		the_China Securities Journal_,Securities Times,Securities
		_Daily_as well as Cninf.
Personnel change matters		_Announcement on Resignation of a Director_disclosed in
	March 19, 2021	the_China Securities Journal_,Securities Times,Securities
		_Daily_as well as Cninf.
		Announcement on Change of President, the_Announcement_
		on By-election of Non-independent Director for the Fifth
		Board of Directors, and the_Announcement on Resolutions_
	March 23, 2021
		of the 2nd Meeting of the Fifth Board of Directors
		disclosed in the_China Securities Journal_,Securities Times,
		_Securities Daily_as well as Cninf.
		Announcement on Resolutions of the Third Extraordinary
		General Meeting in 2021_disclosed in the_China Securities
	April 8, 2021
		Journal,Securities Times,_Securities Daily_as well as
		Cninf.
		Announcement on Change of Chairman, the_Announcement_
		on Appointment of Vice President_and the_Announcement
	April 13, 2021	on Resolutions of the 3rdMeeting of the Fifth Board of
		Directors_disclosed in the_China Securities Journal,
		Securities Times,_Securities Daily_as well as Cninf.

Implementation of share repurchase

√ Applicable □ Inapplicable

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

On January 6, 2021, the Company disclosed the Plan for Repurchase of Partial Social Public Shares . The Company planned to repurchase a part of social public shares with its own funds of RMB180 million – RMB360 million by means of centralized bidding, and use all of them for the Stock Incentive Plan or the Employee Stock Ownership 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). Implementation of share repurchase by centralized bidding

□ Applicable √ Inapplicable

III. Commitments not Fulfilled by the De Facto Controllers, Shareholders, Related Parties, and Acquirers of the Company as at the End of the Reporting Period

□ Applicable √ Inapplicable

During the reporting period of the Company, there were no commitments not fulfilled by the de facto controllers,

shareholders, related parties, and acquirers of the Company as at the end of the reporting period.

IV. Financial Asset Investment

1. Security investment

□ Applicable √ Inapplicable

The Company did not invest in securities during the reporting period.

2. Derivative investment

□ Applicable √ Inapplicable

The Company did not invest in derivatives during the reporting period.

V. Progress of Investment Projects of the Raised Funds

□ Applicable √ Inapplicable

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

VI. Prediction of Operating Results in January to June 2021

Warning and explanation of the predication that the accumulated net profit from the beginning of the year to the

end of the next reporting period may be negative or there will be significant changes compared to the corresponding period of the previous year

□ Applicable √ Inapplicable

VII. Major Routine Operation Contracts

□ Applicable √ Inapplicable

VIII. Entrusted WM

√ Applicable □ Inapplicable

Unit: RMB10,000

	Sources of entrusted	Incurred amount of		The amount overdue
Specific types			Undue balance
	WM funds	entrusted WM		but not recovered
Broker's WM
	Self-owned fund	9,500	1,002.9	0
product
Total		9,500	1,002.9	0

Specific situations of high-risk entrusted WM with individually significant amounts or low safety, poor liquidity

and no principal guarantee

□ Applicable √ Inapplicable

Entrusted WM is expected to fail to recover the principal or there are other circumstances that may lead to

impairment

□ Applicable √ Inapplicable

IX. Illegal External Guarantee

□ Applicable √ Inapplicable

The Company had no illegal external guarantee during the reporting period.

X. Misappropriation of Funds of the Listed Company for Non-operating Purposes by the Controlling Shareholder and its Related Parties

□ Applicable √ Inapplicable

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

During the reporting period, there was no misappropriation of funds of the listed company for non-operating

purposes by the controlling shareholder and its related parties.

XI. Registration Table for Survey, Communication, Interview and Other Activities during the Reporting Period

□ Applicable √ Inapplicable

No survey, communication, interview or other activities took place during the Company's reporting period.

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

Section IV Financial Statements

I. Financial Statements

1. Consolidated balance sheet

Prepared by: C&S Paper Co., Ltd.

March 31, 2021

Unit: RMB

Item	March 31, 2021	December 31, 2020
Current assets:
Monetary funds	1,074,302,670.76	1,125,196,199.56
Settlement reserve
Loans to banks and other financial
institutions
Tradable financial assets
Derivative financial assets
Notes receivable	852,371.48	724,419.74
Accounts receivable	861,090,570.25	1,051,423,939.59
Accounts receivable financing
Prepayments	30,556,867.88	26,819,108.57
Premium receivable
Reinsurance receivable
Reinsurance contract reserves
receivable
Other receivables	12,126,867.60	15,824,945.56
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventory	1,618,161,465.94	1,661,274,495.32
Contract assets
Assets held for sale	57,073,059.69	57,073,059.69
Non-current assets due within one
year

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Other current assets	55,299,465.88	101,584,569.30
Total current assets	3,709,463,339.48	4,039,920,737.33
Non-current assets:
Loans and advances to customers
Creditor's right investment
Investment in other creditor's
rights
Long-term receivable
Long-term equity investment
Investment in other equity
instruments
Other non-current financial assets
Investment property	34,216,144.89	34,575,365.94
Fixed assets	3,098,206,634.67	2,792,587,302.21
Construction work in progress	144,189,792.30	275,904,617.95
Productive biological assets
Oil & gas assets
Right-of-use assets	9,531,693.59
Intangible assets	168,456,445.28	169,355,772.24
Development expenses
Goodwill	64,654.15	64,654.15
Long-term deferred expenses	23,795,488.94	26,635,983.14
Deferred income tax assets	109,418,740.72	111,367,362.66
Other non-current assets	30,230,485.56	28,027,952.15
Total non-current assets	3,618,110,080.10	3,438,519,010.44
Total assets	7,327,573,419.58	7,478,439,747.77
Current liabilities:
Short-term loans	90,046,250.00	142,942,941.34
Borrowings from the central bank
Placements from banks and other
financial institutions
Tradable financial liabilities
Derivate financial liabilities
Notes payable	288,365,856.81	234,887,563.22
Accounts payable	658,657,497.15	761,519,389.26

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Payments received in advance
Contract liabilities	100,530,640.58	137,333,617.40
Proceeds from financial assets
sold under repo
Deposits from customers, banks
and non-bank financial
institutions
Funds from securities trading
agency
Funds from securities
underwriting agency
Employee remuneration payable	88,290,203.42	123,524,627.11
Tax and fees payable	105,276,092.24	112,608,054.87
Other payables	709,845,336.29	754,844,580.09
Including: Interests payable
Dividends payable	1,437,466.77	1,437,466.77
Service charge and commission
payable
Reinsurance payable
Liabilities held for sale
Non-current liabilities due within
one year
Other non-current liabilities	13,009,427.34	17,628,086.63
Total current liabilities	2,054,021,303.83	2,285,288,859.92
Non-current liabilities:
Insurance contract reserves
Long-term loans
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities	9,905,754.18
Long-term payable
Long-term employee
remuneration payable
Estimated liabilities
Deferred income	111,659,391.63	115,101,158.13

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Deferred income tax liabilities	43,935,949.51	35,903,653.30
Other non-current liabilities
Total non-current liabilities	165,501,095.32	151,004,811.43
Total liabilities	2,219,522,399.15	2,436,293,671.35
Owner's equity:
Share capital	1,311,948,555.00	1,311,487,077.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve	917,452,349.35	907,006,505.05
Less: Treasury shares	312,606,092.57	96,480,911.29
Other comprehensive income
Special reserves
Surplus reserves	61,469,258.27	61,469,258.27
Generic risk reserves
Undistributed profits	3,129,786,950.38	2,858,664,147.39
Total owner's equity attributable
	5,108,051,020.43	5,042,146,076.42
to the parent company
Equity of minority shareholders
Total of owner's equity	5,108,051,020.43	5,042,146,076.42
Total liabilities and owner's equity	7,327,573,419.58	7,478,439,747.77

Legal representative: Deng Yingzhong Person in charge of accounting: Dong Ye

Person in charge of Accounting Department: Xu Xianjing

2. The parent company's balance sheet

Unit: RMB

Item	March 31, 2021	December 31, 2020
Current assets:
Monetary funds	58,660,362.44	170,229,178.13
Tradable financial assets
Derivative financial assets
Notes receivable
Accounts receivable	114,890,880.36	92,647,372.33
Accounts receivable financing

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Prepayments	6,613,323.00	7,940,396.34
Other receivables	112,236,377.44	136,987,584.64
Including: Interest receivable
Dividends receivable
Inventory	174,988,033.51	156,605,546.36
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets	11,603,291.93	52,517,725.87
Total current assets	478,992,268.68	616,927,803.67
Non-current assets:
Creditor's right investment
Investment in other creditor's
rights
Long-term receivable
Long-term equity investment	1,932,117,712.39	1,928,113,219.50
Investment in other equity
instruments
Other non-current financial assets
Investment property	17,744,646.64	17,939,329.51
Fixed assets	253,093,649.92	257,354,688.59
Construction work in progress	558,114.82
Productive biological assets
Oil & gas assets
Right-of-use assets	2,259,589.13
Intangible assets	25,067,112.23	25,205,232.21
Development expenses
Goodwill
Long-term deferred expenses
Deferred income tax assets	47,647,963.99	46,811,106.77
Other non-current assets	6,293,364.06	2,619,959.27
Total non-current assets	2,284,782,153.18	2,278,043,535.85
Total assets	2,763,774,421.86	2,894,971,339.52
Current liabilities:

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Short-term loans
Tradable financial liabilities
Derivate financial liabilities
Notes payable
Accounts payable	492,306,632.72	420,061,168.44
Payments received in advance
Contract liabilities	43,022,494.24	17,388,431.01
Employee remuneration payable	26,229,673.50	44,678,713.21
Tax and fees payable	3,234,718.11	5,995,417.05
Other payables	120,618,793.28	126,072,040.24
Including: Interests payable
Dividends payable	1,437,466.77	1,437,466.77
Liabilities held for sale
Non-current liabilities due within
one year
Other non-current liabilities	5,592,924.25	2,260,496.03
Total current liabilities	691,005,236.10	616,456,265.98
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities	2,346,314.95
Long-term payable
Long-term employee
remuneration payable
Estimated liabilities
Deferred income	5,553,629.39	5,855,467.25
Deferred income tax liabilities	7,333,819.50	7,202,336.33
Other non-current liabilities
Total non-current liabilities	15,233,763.84	13,057,803.58
Total liabilities	706,238,999.94	629,514,069.56
Owner's equity:
Share capital	1,311,948,555.00	1,311,487,077.00
Other equity instruments

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Including: Preferred shares
Perpetual bonds
Capital reserve	842,139,050.52	831,693,206.19
Less: Treasury shares	312,606,092.57	96,480,911.29
Other comprehensive income
Special reserves
Surplus reserves	61,347,923.99	61,347,923.99
Undistributed profits	154,705,984.98	157,409,974.07
Total of owner's equity	2,057,535,421.92	2,265,457,269.96
Total liabilities and owner's equity	2,763,774,421.86	2,894,971,339.52

3. Consolidated income statement

Unit: RMB

Item	Incurred in the current period	Incurred in the previous period
I. Total Operating Income	2,102,126,213.63	1,670,909,073.75
Including: Operating income	2,102,126,213.63	1,670,909,073.75
Interest income
Earned premium
Service charge and commission
income
II. Total Operating Costs	1,780,296,793.30	1,443,987,930.50
Including: Operating costs	1,251,617,377.48	916,944,038.53
Interest expenses
Service charge and commission
expenses
Surrender value
Net compensation expenses
Net appropriation of reserves for
insurance liability contracts
Policy dividend payment
Reinsurance costs
Tax and surcharges	14,137,632.18	12,952,751.31
Selling expenses	390,859,318.46	377,690,524.15
Administrative expenses	80,160,355.50	93,755,794.93
R&D expenses	46,934,742.68	40,578,693.56

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

Finance expenses	-3,412,633.00	2,066,128.02
Including: Interest expenses	560,643.01	886,702.91
Interest income	3,557,538.70	2,142,682.61
Plus: Other income	5,114,016.80	3,519,078.96
Return on investment ("-" indicates
	307,027.09	722,800.10
loss)
Including: Return on investment in
associates and joint ventures
Profit from derecognition of
financial assets measured at
amortized cost
Exchange gains ("-" indicates loss)
Gains from net exposure hedging
("-" indicates loss)
Gains from changes in fair value
("-" indicates loss)
Credit impairment losses ("-"
	4,712,725.04	1,396,589.35
indicates loss)
Asset impairment losses ("-"
	-2,120,452.13	-922,370.72
indicates loss)
Return on disposal of assets ("-"
	49,228.12	-283,390.21
indicates loss)
III. Operating Profit ("-" indicates
	329,891,965.25	231,353,850.73
loss)
Plus: Non-operating income	736,192.94	2,324,748.55
Less: Non-operating expenditure	1,565,921.89	11,390,751.39
IV. Total Profit ("-" indicates total
	329,062,236.30	222,287,847.89
loss)
Less: Income tax expense	57,939,433.31	38,858,330.54
V. Net Profit ("-" indicates net loss)	271,122,802.99	183,429,517.35
i. Classified by business continuity
1. Net profit from continued
	271,122,802.99	183,429,517.35
operation ("-" indicates net loss)
2. Net profit from discontinued
operation ("-" indicates net loss)
ii. Classified by attribution of
ownership

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

1. Net profit attributable to
	271,122,802.99	183,429,517.35
shareholders of the parent company
2. Minority shareholders' profits
and losses
VI. Net Amount of Other
Comprehensive Income after Tax
Total other comprehensive after-tax
net income attributable to the
owner of parent company
i. Other comprehensive income not
to be reclassified into the profit or
loss
1. Changes of re-measurement of
the defined benefit plan
2. Other comprehensive income not
to be transferred into the profit or
loss under equity method
3. Changes in fair value of
investment in other equity
instruments
4. Changes in fair value of the
credit risk of the Company
5. Others
ii. Other comprehensive income to
be reclassified to profit or loss
1. Other comprehensive income to
be transferred into the profit or loss
under equity method
2. Changes in fair value of
investment in other creditor's rights
3. Amount of financial assets
reclassified into other
comprehensive income
4. Impairment provision for credit
of investment in other creditor's
rights
5. Reserve of cash flow hedge
6. Converted difference in foreign
currency financial statements

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

7. Others
Total other comprehensive after-tax
net income attributable to minority
shareholders
VII. Total Comprehensive Income	271,122,802.99	183,429,517.35
Total comprehensive income
attributable to the owner of parent	271,122,802.99	183,429,517.35
company
Total comprehensive income
attributable to minority
shareholders
VIII. Earnings per Share:
i. Basic earnings per share	0.2091	0.1426
ii. Diluted earnings per share	0.2058	0.1395

As for business combination under the same control in the current period, the net profit realized by the combined party before the combination was RMB0.00, while the net profit realized by the combined party in the previous period was RMB0.00.

Legal representative: Deng Yingzhong Person in charge of accounting: Dong Ye Person in charge of Accounting Department: Xu Xianjing

4. Income statement of the parent company

Unit: RMB

Item	Incurred in the current period	Incurred in the previous period
I. Operating Income	447,300,982.24	406,109,605.13
Less: Operating costs	378,378,693.16	342,563,310.35
Tax and surcharges	949,663.71	1,091,678.03
Selling expenses	39,983,979.55	30,589,489.96
Administrative expenses	32,359,337.10	44,514,047.60
R&D expenses
Finance expenses	-154,557.38	1,151,308.04
Including: Interest expenses	28,512.79
Interest income	509,578.08	1,342,703.24
Plus: Other income	1,192,120.03	323,587.86
Return on investment ("-" indicates loss)
	307,027.09	80,722,800.10

26

Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

Including: Return on investment
in associates and joint ventures
Profit from derecognition of
financial assets measured at
amortized cost ("-" indicates loss)
Gains from net exposure hedging
("-" indicates loss)
Gains from changes in fair value
("-" indicates loss)
Credit impairment losses ("-"
	502,372.51	-75,947.35
indicates loss)
Asset impairment losses ("-"
	91,838.17	-460,974.81
indicates loss)
Return on disposal of assets ("-"
indicates loss)
II. Operating Profit ("-" indicates
	-2,122,776.10	66,709,236.95
loss)
Plus: Non-operating income	84,455.65	297,750.25
Less: Non-operating expenditure	1,371,042.69	11,021,394.65
III. Total Profit ("-" indicates total
	-3,409,363.14	55,985,592.55
loss)
Less: Income tax expense	-705,374.05	-3,797,825.55
IV. Net Profit ("-" indicates net
	-2,703,989.09	59,783,418.10
loss)
i. Net profit from continued
	-2,703,989.09	59,783,418.10
operation ("-" indicates net loss)
ii. Net profit from discontinued
operation ("-" indicates net loss)
V. Net Amount of Other
Comprehensive Income after Tax
i. Other comprehensive income
not to be reclassified into the
profit or loss
1. Changes of re-measurement of
the defined benefit plan
2. Other comprehensive income
not to be transferred into the profit
or loss under equity method

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

3. Changes in fair value of
investment in other equity
instruments
4. Changes in fair value of the
credit risk of the Company
5. Others
ii. Other comprehensive income to
be reclassified to profit or loss
1. Other comprehensive income to
be transferred into the profit or
loss under equity method
2. Changes in fair value of
investment in other creditor's
rights
3. Amount of financial assets
reclassified into other
comprehensive income
4. Impairment provision for credit
of investment in other creditor's
rights
5. Reserve of cash flow hedge
6. Converted difference in foreign
currency financial statements
7. Others
VI. Total Comprehensive Income	-2,703,989.09	59,783,418.10
VII. Earnings per Share:
i. Basic earnings per share
ii. Diluted earnings per share

5. Consolidated cash flow statement

	Unit: RMB	Unit: RMB
Item	Incurred in the current period	Incurred in the previous period
I. Cash Flow from Operating
Activities:
Cash received from sale of goods
	2,255,658,189.93	1,672,054,264.73
or rendering of services
Net increase in deposits from
customers, banks and non-bank

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

financial institutions
Net increase in borrowings from
the central bank
Net increase in placements from
other financial institutions
Cash received from the premium
of direct insurance contracts
Net cash from reinsurance
business
Net increase in deposits and
investment of the insured
Cash received from interest,
service charge and commission
Net increase in placements from
banks and other financial
institutions
Net increase in repo service fund
Net cash received from securities
trading agency
Tax rebates		120,214.00
Cash received from other
	36,911,315.21	21,403,763.99
operating activities
Sub-total of cash inflow from
	2,292,569,505.14	1,693,578,242.72
operating activities
Cash paid for goods purchased
	1,359,556,274.91	888,779,545.70
and services rendered
Net increase in loans and
advances to customers
Net increase in deposits with the
central bank, banks and non-bank
financial institutions
Cash paid for claims of direct
insurance contracts
Net increase in loans to banks and
other financial institutions
Cash paid for interest, service
charge, and commission
Cash paid for policy dividends

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

Cash paid to and on behalf of
	246,734,126.07	184,701,622.03
employees
Tax payments	142,572,370.03	108,544,799.85
Cash paid for other operating
	208,801,567.90	181,004,540.57
activities
Sub-total of cash outflow from
	1,957,664,338.91	1,363,030,508.15
operating activities
Net cash flow from operating
	334,905,166.23	330,547,734.57
activities
II. Cash Flow from Investing
Activities:
Cash from realization of
investment
Cash received from the return on
	307,027.09	722,800.10
investment
Net cash received from the
disposal of fixed assets, intangible	9,758,000.00	10,050,008.00
assets and other long-term assets
Net cash received from the
disposal of subsidiaries and other
business units
Cash received from other
	50,000,000.00	127,105,000.00
investing activities
Sub-total of cash inflow from
	60,065,027.09	137,877,808.10
investing activities
Cash paid for the acquisition and
construction of fixed assets,
	177,953,975.15	117,260,806.49
intangible assets, and other
long-term assets
Cash paid for investments
Net increase in pledged loans
Net cash paid for acquisition of
subsidiaries and other business
units
Cash paid for other investing
	10,029,000.00	170,000,000.00
activities
Sub-total of cash outflow from
	187,982,975.15	287,260,806.49
investing activities
Net cash flow from investing	-127,917,948.06	-149,382,998.39

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

activities
III. Cash Flow from Financing
Activities:
Cash received from capital
	10,255,276.29
contribution
Including: Cash received by
subsidiaries from minority
shareholders' investments
Cash received from borrowings		95,151,546.69
Cash received from other
financing activities
Sub-total of cash inflow from
	10,255,276.29	95,151,546.69
financing activities
Cash paid for repayment of debts	52,896,691.35	134,717,045.18
Cash paid for distribution of
dividends or profits or payment of	440,172.97	965,643.55
interests
Including: Dividend and profit
paid by subsidiaries to minority
shareholders
Cash paid for other financing
	224,755,027.30	33,426,051.93
activities
Sub-total of cash outflow from
	278,091,891.62	169,108,740.66
financing activities
Net cash flow from financing
	-267,836,615.33	-73,957,193.97
activities
IV. Effect of Exchange Rate
Changes on Cash and Cash	1,326,022.34	2,286,932.39
Equivalents
V. Net Increase in Cash and Cash
	-59,523,374.82	109,494,474.60
Equivalents
Plus: Opening balance of cash and
	1,050,034,135.72	675,996,852.97
cash equivalents
VI. Closing Balance of Cash and
	990,510,760.90	785,491,327.57
Cash Equivalents

6. Parent company's cash flow statement

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Full text of the Report of C&S Paper Co., Ltd. for the First Quarter of 2021

Unit: RMB

Item	Incurred in the current period	Incurred in the previous period
I. Cash Flow from Operating
Activities:
Cash received from sale of goods
	459,279,877.09	274,221,947.20
or rendering of services
Tax rebates		120,214.00
Cash received from other
	206,478,306.23	720,300,142.13
operating activities
Sub-total of cash inflow from
	665,758,183.32	994,642,303.33
operating activities
Cash paid for goods purchased
	321,637,813.09	231,873,371.92
and services rendered
Cash paid to and on behalf of
	68,751,954.65	40,229,895.53
employees
Tax payments	8,870,082.75	8,477,664.12
Cash paid for other operating
	204,169,046.71	95,603,845.89
activities
Sub-total of cash outflow from
	603,428,897.20	376,184,777.46
operating activities
Net cash flow from operating
	62,329,286.12	618,457,525.87
activities
II. Cash Flow from Investing
Activities:
Cash from realization of
investment
Cash received from the return on
	307,027.09	80,722,800.10
investment
Net cash received from the
disposal of fixed assets, intangible
assets and other long-term assets
Net cash received from the
disposal of subsidiaries and other
business units
Cash received from other
	50,000,000.00	127,105,000.00
investing activities
Sub-total of cash inflow from
	50,307,027.09	207,827,800.10
investing activities

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Cash paid for the acquisition and
construction of fixed assets,
	7,306,397.30	9,180,427.34
intangible assets, and other
long-term assets
Cash paid for investments	1,000,000.00	665,600,000.00
Net cash paid for acquisition of
subsidiaries and other business
units
Cash paid for other investing
	10,029,000.00	150,000,000.00
activities
Sub-total of cash outflow from
	18,335,397.30	824,780,427.34
investing activities
Net cash flow from investing
	31,971,629.79	-616,952,627.24
activities
III. Cash Flow from Financing
Activities:
Cash received from capital
	10,255,276.29
contribution
Cash received from borrowings
Cash received from other
financing activities
Sub-total of cash inflow from
	10,255,276.29
financing activities
Cash paid for repayment of debts
Cash paid for distribution of
dividends or profits or payment of
interests
Cash paid for other financing
	220,920,044.17	28,006,035.43
activities
Sub-total of cash outflow from
	220,920,044.17	28,006,035.43
financing activities
Net cash flow from financing
	-210,664,767.88	-28,006,035.43
activities
IV. Effect of Exchange Rate
Changes on Cash and Cash	173.39	-2,758.13
Equivalents
V. Net Increase in Cash and Cash
	-116,363,678.58	-26,503,894.93
Equivalents
Plus: Openingbalance of cash and	169,851,203.76	156,151,560.82

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cash equivalents
VI. Closing Balance of Cash and
	53,487,525.18	129,647,665.89
Cash Equivalents

II. Explanation of the Adjustment in Financial Statements

1. Adjustment of relevant items of financial statements at the beginning of the year for the first time according to the implementation of new leasing standards for the first time since 2021

□ Applicable √ Inapplicable

2. Explanation of retrospective adjustment of previous comparative data according to the implementation of new leasing standards for the first time since 2021

□ Applicable √ Inapplicable

III. Audit Report

Whether the Q1 report has been audited

□ Yes √ No

The Q1 report of the Company has not been audited.

34