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

Oct 27, 2021

C&S Paper Co., Ltd. Third Quarter Report 2021

Stock Code: 002511 Stock Abbreviation: C&S

Announcement No.: 2021-127

C&S Paper Co., Ltd. Third Quarter Report 2021

The Company and all members of the Board of Directors hereby guarantee the truthfulness, accuracy and completeness of the information disclosed, and there are no false and misleading statements or material omissions.

Important Notice:

1. 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 this quarterly report is true, accurate and complete without any false and misleading statements or material omissions, and severally and jointly accept legal liability thereof.

2. The person in charge of the Company, the person in charge of accounting of the Company, and the person in charge of the accounting department of the Company have declared that they warrant the truthfulness, accuracy and completeness of the financial statements set out in this quarterly report.

Whether the Third Quarter Report has been audited

□ Yes √ No

I. Main Financial Data

(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

			Beginning of the year
		Changes over same period		Changes over same
	Current period		to end of current
		of previous year		period of previous year
			period
Operating income
	2,027,210,890.87	4.54%	6,274,852,727.25	12.95%
(RMB)
Net profit attributable to
shareholders of the listed	77,263,562.65	-64.72%	484,424,879.80	-27.88%
company (RMB)
Net profit attributable to
shareholders of the listed	77,203,406.36	-64.12%	476,191,641.05	-28.03%
companyafter deducting

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C&S Paper Co., Ltd. Third Quarter Report 2021

non-recurring profit and
loss (RMB)
Net cash flow from
operating activities	——	——	879,123,088.92	113.73%
(RMB)
Basic earnings per share
	0.0596	-64.90%	0.3729	-28.38%
(RMB/share)
Diluted earnings per
	0.0591	-64.59%	0.3698	-27.77%
share (RMB/share)
Weighted average return
	1.52%	-3.43%	9.75%	-5.43%
on net assets
	End of current period	End of previous year	Changes over end of previous year
Total assets (RMB)	7,481,516,961.44	7,478,439,747.77	0.04%
Owner's equity
attributable to	4,850,775,440.29	5,042,146,076.42	-3.80%
shareholders of the listed
company (RMB)

(II) Non-recurring items and amounts

√ Applicable □ Not applicable

Unit: RMB

		Amount from beginning
	Amount of current period
Item		of the year to end of	Description
		current period
Profits/losses from the disposal of non-current asset
(including the write-off that accrued for impairment	-981,100.72	-1,868,144.99
of assets)
Governmental grants reckoned into current
profits/losses (not including grants enjoyed in quota	4,303,707.27	14,860,307.58
or ration according to national standards which are
, closely relevant to the company’s normal business)
			Returns on
Profits/losses from assets entrusted to others for			principal-protected wealth
		358,473.15	management products at
investment or management
			maturity and reverse repo
			of treasury bonds
Other non-operating income and expenses except for
	-3,597,919.97	-3,785,827.27
the aforementioned items
Less: Influence of income tax	-335,469.71	1,331,569.72
Total	60,156.29	8,233,238.75	--

Details of other profit and loss items that meet the definition of non-recurring profit and loss:

□ Applicable √ Not applicable

The Company has no other profit and loss items that meet the definition of non-recurring profit and loss.

Descriptions where the Company defines any non-recurring profit and loss items 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 items during the reporting period

□ Applicable √ Not applicable

The Company did not define any non-recurring profit and loss items 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 items during the reporting period.

(III) Changes of main accounting data and financial indicators and reasons

√ Applicable □ Not applicable

Notes receivable: This item recorded an increase of RMB3,860,425.97 or 532.90% in the reporting period

3

C&S Paper Co., Ltd. Third Quarter Report 2021

compared with the end of 2020, mainly owing to the increase in bank acceptance bills received from customers during the reporting period.

Prepayments: This item recorded a decrease of RMB10,093,433.92 or 37.64% in the reporting period compared with the end of 2020, mainly owing to the decrease in prepayments for materials during the reporting period.

Other current assets: This item recorded a decrease of RMB44,731,370.70 or 44.03% in the reporting period compared with the end of 2020, mainly owing to the decrease in the principals of wealth management products during the reporting period.

Construction work in progress: This item recorded a decrease of RMB225,851,617.84 or 81.86% in the reporting period compared with the end of 2020, mainly owing to the fact that certain construction work in progress reached the usable state and was thereby transferred to fixed assets during the reporting period.

Right-of-use assets: This item recorded an increase of RMB11,328,528.08 or 100.00% in the reporting period compared with the end of 2020, mainly owing to the fact that leased assets were confirmed as right-of-use assets upon the adoption of the new lease standards during the reporting period.

Deferred income tax assets: This item recorded an increase of RMB70,346,172.66 or 63.17% in the reporting period compared with the end of 2020, mainly owing to the increase in equity incentives and deductible losses during the reporting period.

Other non-current assets: This item recorded an increase of RMB64,263,127.87 or 229.28% in the reporting period compared with the end of 2020, mainly owing to the increase in prepayments for housing assets during the reporting period.

Tax and fees payable: This item recorded a decrease of RMB34,538,236.96 or 30.67% in the reporting period compared with the end of 2020, mainly owing to the decrease in corporate income tax during the reporting period. Non-current liabilities due within one year: This item recorded an increase of RMB5,965,262.94 or 100.00% in the reporting period compared with the end of 2020, mainly owing to the increase in lease liabilities due within one year during the reporting period.

Lease liabilities: This item recorded an increase of RMB5,823,744.59 or 100.00% in the reporting period compared with the end of 2020, mainly owing to the confirmation of lease liabilities upon the adoption of the new lease standards during the reporting period.

Deferred income tax liabilities: This item recorded an increase of RMB11,058,266.56 or 30.80% in the reporting period compared with the end of 2020, mainly owing to the increase in temporary differences formed by fixed assets during the reporting period.

Treasury shares: This item recorded an increase of RMB599,549,983.07 or 621.42% in the reporting period compared with the end of 2020, mainly owing to the increase in the Company’s repurchased shares during the reporting period.

(II) Income statement items

Operating cost: This item recorded an increase of RMB928,513,100.53 or 31.32% from the beginning of the year to the end of the reporting period compared with the same period in 2020, mainly owing to factors such as increase in operating income, increase in material prices, changes in category structure, increase in freight, etc.

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C&S Paper Co., Ltd. Third Quarter Report 2021

during the reporting period.

Financial expenses: This item recorded an increase of RMB8,236,376.20 or 74.34% from the beginning of the year to the end of the reporting period compared with the same period in 2020, mainly owing to the increase in exchange losses and gains during the reporting period.

Return on investment: This item recorded a decrease of RMB3,463,447.64 or 90.62% from the beginning of the year to the end of the reporting period compared with the same period in 2020, mainly owing to the decrease in returns on wealth management products during the reporting period.

Credit impairment loss: This item recorded a decrease of RMB1,330,520.48 or 138.06% from the beginning of the year to the end of the reporting period compared with the same period in 2020, mainly owing to the decrease in accrued credit impairment losses caused by the decrease in accounts receivable during the reporting period.

Asset impairment loss: This item recorded an increase of RMB2,263,955.63 or 243.85% from the beginning of the year to the end of the reporting period compared with the same period in 2020, mainly owing to the increase in fixed asset impairment losses during the reporting period.

Return on disposal of assets: This item recorded an increase of RMB1,298,108.54 or 80.74% from the beginning of the year to the end of the reporting period compared with the same period in 2020, mainly owing to the increase in the income from fixed asset disposal during the reporting period.

Non-operating income: This item recorded a decrease of RMB1,398,990.80 or 31.51% from the beginning of the year to the end of the reporting period compared with the same period in 2020, mainly owing to the decrease in government grants during the reporting period.

Non-operating expense: This item recorded a decrease of RMB4,790,284.77 or 33.52% from the beginning of the year to the end of the reporting period compared with the same period in 2020, mainly owing to the decrease in donations during the reporting period.

Income tax expenses: This item recorded a decrease of RMB68,894,443.22 or 50.12% from the beginning of the year to the end of the reporting period compared with the same period in 2020, mainly owing to the decrease in total profit during the reporting period.

(III) Cash flow statement items

Net cash flows from operating activities: This item recorded an increase of RMB467,803,529.64 or 113.73% from the beginning of the year to the end of the reporting period compared with the same period in 2020, mainly owing to the increase in sales revenue during the reporting period.

Net cash flows from investing activities: This item recorded a decrease of RMB288,800,242.32 or 158.98% from the beginning of the year to the end of the reporting period compared with the same period in 2020, mainly owing to the decrease in the received principal of wealth management products and the increase in payment for engineering equipment during the reporting period.

Net cash flows from financing activities: This item recorded a decrease of RMB827,751,954.50 or 866.81% from the beginning of the year to the end of the reporting period compared with the same period in 2020, mainly owing to the decrease in cash received from borrowings and the increase in payment of repurchased shares during the reporting period.

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C&S Paper Co., Ltd. Third Quarter Report 2021

II. Shareholder Information

(I) Total number of ordinary shareholders, number of preferred shareholders whose voting rights were resumed and shareholdings of top 10 shareholders

Unit: share

							Unit: shar	Unit: shar
				Total number of preferred
Total number of ordinary
shareholders as at the end of the		160,792		shareholders whose voting			0
				rights were resumed at the end
reporting period				of the reporting period (if any)
Shareholdings of top 10 shareholders
					Number of shares	Pledged, marked or frozen
Name of	Nature of	Shareholding
shareholder	shareholder	percentage (%)	Number of shares		subject to selling	Share status		Number of shares
					restrictions
Guangdong Zhongshun Paper Group Co., Ltd.	Domestic non-state-owned legal person	28.58%	375,655,958		0
Chung Shun Co.	Foreign legal person	20.28%	266,504,789		0
Hong Kong Securities Clearing Co., Ltd.	Foreign legal person	4.48%	58,934,472		0
Ernest Partners LLC -- Client funds	Foreign legal person	0.79%	10,402,100		0
Yue Yong	Domestic natural person	0.74%	9,665,241		7,903,305
# Lin Zuohua	Domestic natural person	0.67%	8,787,510		0
Deng Yingzhong	Domestic natural person	0.51%	6,752,811		5,064,608
# Zhongshan Xinda Investment Management Co., Ltd.	Domestic non-state-owned legal person	0.47%	6,123,636		0
Ping An Insurance Company—Unit- linked—Personal insurance unit-linked	Others	0.38%	4,999,980		0
Deng Guanbiao	Domestic natural person	0.38%	4,957,473		3,718,105
Shareholdings of top 10 shareholders not subject to selling restrictions
						Type of shares
Name of shareholder		Number of shares not subject to selling restrictions
						Type of shares		Number of shares
Guangdong Zhongshun Paper Group Co., Ltd.		375,655,958				RMB-denominate
								375,655,958
						d ordinary shares
Chung Shun Co.		266,504,789				RMB-denominate
								266,504,789
						d ordinary shares
Hong Kong Securities Clearing Co., Ltd.		58,934,472				RMB-denominate
								58,934,472
						d ordinary shares
Ernest Partners LLC — Client funds		10,402,100				RMB-denominate
								10,402,100
						d ordinary shares
# Lin Zuohua		8,787,510				RMB-denominate
								8,787,510
						d ordinary shares

6

C&S Paper Co., Ltd. Third Quarter Report 2021

# Zhongshan Xinda Investment Management Co., Ltd.	6,123,636	RMB-denominate
			6,123,636
		d ordinary shares
Ping An Insurance Company—Unit-linked—Personal insurance unit-linked	4,999,980
		RMB-denominate
			4,999,980
		d ordinary shares
Chinan Asset Management Co.,Ltd. — Chinan 99 Chuancheng No. 1 Private Equity Securities Investment Fund	4,499,913
		RMB-denominate
			4,499,913
		d ordinary shares
Li Hong	4,297,300	RMB-denominate
			4,297,300
		d ordinary shares
Chen Ruiqiang	3,667,600	RMB-denominate
			3,667,600
		d ordinary shares
	1. Among the top ten shareholders mentioned above, Guangdong Zhongshun Paper Group
	Co., Ltd. and Chung Shun Co. are the enterprises controlled by actual controllers of the
	Company, i.e. Deng Yingzhong, Deng Guanbiao and Deng Guanjie. That is, Guangdong
Description on the related
	Zhongshun Paper Group Co., Ltd. and Chung Shun Co. are related parties. Mr. Yue Yong is
relationship or parties
	an incumbent senior manager of the Company.
acting-in-concert arrangements
	2. It is unknown to the Company whether there is related party relationship among other
among the above shareholders
	shareholders, or whether there is acting-in-concert among other shareholders as stipulated in
	the_Administrative Measures for the Disclosure of Information on Changes in Shareholders'_
	Shareholding of Listed Companies.
	The Company’s shareholder Lin Zuohua holds 8,787,510 shares through a client credit
	transaction guarantee securities account.
Description on the top 10	The Company’s shareholder Zhongshan Xinda Investment Management Co., Ltd. holds
shareholders’ participation in margin	6,120,602 shares through a client credit transaction guarantee securities account.
trading and securities lending (if	Note: There is a special repurchase account “C&S Paper Special Repurchase Securities
any)	Account” among the top 10 shareholders. As of the end of the reporting period, this
	repurchase account held 24,952,887 shares, with a shareholding ratio of 1.9%. Pursuant to
	relevant regulations, it is not included in the list of top 10 shareholders.

(II) Total number of preferred shareholders and shareholdings of top 10 preferred shareholders

□ Applicable √ Not applicable

III. Other Significant Matters

□ Applicable √ Not applicable

			Announce	Disclosure media
	Announcement
No.		Announcement name	ment
	time
			number
1	July 01, 2021	Announcement on Reduction of Company Shares by Directors and Senior Management Through Block Transactions	2021-99	Securities Times, Securities Daily, China Securities Journal, and CNINF
2	July 02, 2021	Announcement on Progress of Repurchase of Company Shares	2021-100
3	July 07, 2021	Announcement on the Deregistration Completion of Partial Stock Options Awarded in the First Grant under the 2018 Stock Option and Restricted Stock Incentive Plan	2021-101
4	July 07, 2021	Announcement on Progress of Repurchase of Company Shares	2021-102
5	July 10, 2021	Announcement on Progress of Repurchase of Company Shares	2021-103
6	July 13, 2021	Announcement on Commitments of None-Decrease of Shares by Vice President and Secretary of the Board of Directors of the Company	2021-104
7	July 13, 2021	Announcement on Resignation of the Company’s Supervisor	2021-105
8	July 13, 2021	Announcement on Resolutions of the 7th Meeting of the Fifth Session of the Board of Directors	2021-106
9	July 13, 2021	Announcement on Appointment of the Vice President of the Company	2021-107

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C&S Paper Co., Ltd. Third Quarter Report 2021

10	July 27, 2021	Announcement on Progress of Repurchase of Company Shares	2021-108
11	July 30, 2021	Announcement on Resolutions of the 8th Meeting of the Fifth Session of the Board of Directors	2021-109
12	July 30, 2021	Announcement on Adjusting the Amount of the Company's Share Repurchase	2021-110
13	July 30, 2021	Announcement on Resignation of the Secretary of the Board of Directors and Vice President of the Company	2021-111
14	August 03, 2021	Announcement on Progress of the Phase III Employee Stock Ownership Plan of the Company	2021-112
15	August 03, 2021	Announcement on Progress of Repurchase of Company Shares	2021-113
16	August 24, 2021	Announcement on Resolutions of the 9th Meeting of the Fifth Session of the Board of Directors	2021-114
17	August 24, 2021	Announcement on Appointment of the Vice President and Secretary of the Board of Directors of the Company	2021-115
18	August 31, 2021	Announcement on Resolutions of the Board of Directors on the Semi-annual Report	2021-116
19	August 31, 2021	Announcement on Resolutions of the Board of Supervisors on the Semi-annual Report	2021-117
20	August 31, 2021	Summary of Semi-annual Report 2021	2021-118
21	August 31, 2021	Announcement on the Resignation of the Representative of Securities Affairs	2021-119
22	September 02, 2021	Announcement on Progress of Repurchase of Company Shares	2021-120
23	September 02, 2021	Announcement on Progress of the Phase III Employee Stock Ownership Plan of the Company	2021-121
24	September 07, 2021	Announcement on Completion of the Industrial and Commercial Registration Amendment of the Company	2021-122
25	September14, 2021	Announcement on Progress of Repurchase of Company Shares	2021-123

IV. Quarterly Financial Statements

(I) Financial statements

1. Consolidated balance sheet

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

September 30, 2021

Unit: RMB

Item	September 30, 2021	December 31, 2020
Current assets:
Monetary funds	811,606,154.48	1,125,196,199.56
Settlement reserve
Lending to banks and other
financial institutions
Tradable financial assets
Derivative financial assets
Notes receivable	4,584,845.71	724,419.74
Accounts receivable	988,086,010.51	1,051,423,939.59
Accounts receivable financing
Prepayments	16,725,674.65	26,819,108.57

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C&S Paper Co., Ltd. Third Quarter Report 2021

Premium receivable
Reinsurance payables
Reinsurance contract reserves
receivable
Other receivables	13,094,338.62	15,824,945.56
Including: Interest receivable
Dividends receivable
Financial assets held under resale
agreements
Inventory	1,760,498,581.06	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
Other current assets	56,853,198.60	101,584,569.30
Total current assets	3,708,521,863.32	4,039,920,737.33
Non-current assets:
Loans and advances to customers
Investments in creditor’s rights
Investments in other creditor’s
rights
Long-term receivable
Long-term equity investment
Investment in other equity
instruments
Other non-current financial assets
Investment property	33,497,702.79	34,575,365.94
Fixed assets	3,214,621,904.05	2,792,587,302.21
Construction work in progress	50,053,000.11	275,904,617.95
Productive biological assets
Oil & gas assets
Right-of-use assets	11,328,528.08
Intangible assets	169,695,480.29	169,355,772.24
Development expenses
Goodwill	64,654.15	64,654.15
Long-term deferred expenses	19,729,213.31	26,635,983.14
Deferred income tax assets	181,713,535.32	111,367,362.66
Other non-current assets	92,291,080.02	28,027,952.15
Total non-current assets	3,772,995,098.12	3,438,519,010.44
Total assets	7,481,516,961.44	7,478,439,747.77
Current liabilities:
Short-term borrowings	162,547,892.71	142,942,941.34
Borrowings from PBC
Placements from banks and other
financial institutions
Tradable financial liabilities
Derivative financial liabilities
Notes payable	274,447,555.96	234,887,563.22

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C&S Paper Co., Ltd. Third Quarter Report 2021

Accounts payable	822,948,585.87	761,519,389.26
Payments received in advance
Contract liabilities	144,088,271.76	137,333,617.40
Proceeds from financial assets sold
under repo
Customer bank deposits and due to
banks and other financial institutions
Funds from securities trading
agency
Funds from securities underwriting
agency
Employee remuneration payable	136,303,770.44	123,524,627.11
Tax and fees payable	78,069,817.91	112,608,054.87
Other payables	825,301,021.04	754,844,580.09
Including: Interests payable
Dividends payable	1,594,446.41	1,437,466.77
Transaction fee and commission
receivable
Reinsurance payable
Liabilities held for sale
Non-current liabilities due within
	5,965,262.94
one year
Other current liabilities	18,661,924.62	17,628,086.63
Total current liabilities	2,468,334,103.25	2,285,288,859.92
Non-current liabilities:
Insurance contract reserves
Long-term borrowings
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities	5,823,744.59
Long-term payable
Long-term employee remuneration
payable
Provision
Deferred income	108,278,887.57	115,101,158.13
Deferred income tax liabilities	46,961,919.86	35,903,653.30
Other non-current liabilities
Total non-current liabilities	161,064,552.02	151,004,811.43
Total liabilities	2,629,398,655.27	2,436,293,671.35
Owner's equity:
Share capital	1,312,362,868.00	1,311,487,077.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserve	958,636,710.60	907,006,505.05
Less: Treasury shares	696,030,894.36	96,480,911.29
Other comprehensive income
Special reserves

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C&S Paper Co., Ltd. Third Quarter Report 2021

Surplus reserves	61,469,258.27	61,469,258.27
General reserves
Retained earnings	3,214,337,497.78	2,858,664,147.39
Total equity attributable to owners of the parent company
	4,850,775,440.29	5,042,146,076.42
Equities of minority shareholders	1,342,865.88
Total owner's equity	4,852,118,306.17	5,042,146,076.42
Total liabilities and owners' equities	7,481,516,961.44	7,478,439,747.77

Legal representative: Liu Peng Person in charge of accounting: Dong Ye Person in charge of accounting department: Xu Xianjing

2. Consolidated income statement from beginning of the year to end of reporting period

Unit: RMB

Item	Incurred in the current period	Incurred in the prior period
I. Total Operating Income	6,274,852,727.25	5,555,315,729.00
Including: Operating income	6,274,852,727.25	5,555,315,729.00
Interest income
Gross earned premiums
Service charge and
commission income
II. Total Operating Cost	5,728,586,896.00	4,755,419,712.84
Including: Operating costs	3,893,455,731.93	2,964,942,631.40
Interest expenses
Service charge and
commission expenses
Surrender value
Net compensation expenses
Net appropriation of
insurance reserve
Policy dividends expenses
Reinsurance costs
Tax and surcharges	43,629,579.28	37,942,925.51
Selling expenses	1,385,553,454.23	1,342,148,313.68
Administrative expenses	261,274,849.11	283,890,975.47
R&D expenses	147,516,610.83	137,574,572.36
Finance expenses	-2,843,329.38	-11,079,705.58
Including: Interest fees	1,272,593.21	2,071,645.66
Interest income	8,553,063.14	5,956,376.08
Plus: Other income	15,977,069.84	18,797,424.09
Return on investment ("-"
	358,473.15	3,821,920.79
indicates loss)
Including: Return on
investment in associates and joint
ventures
Income from the
derecognition of financial assets
measured at amortized cost
Exchangegains("-" indicates

11

C&S Paper Co., Ltd. Third Quarter Report 2021

loss)
Gains from net exposure
hedging ("-" indicates loss)
Gains from changes in fair
value ("-" indicates loss)
Credit impairment losses ("-"
	366,801.28	-963,719.20
indicates loss)
Asset impairment losses ("-"
	-3,192,363.87	-928,408.24
indicates loss)
Return on disposal of assets
	-309,646.72	-1,607,755.26
("-" indicates loss)
III. Operating Profit ("-" indicates loss)	559,466,164.93	819,015,478.34
Plus: Non-operating income	3,041,051.40	4,440,042.20
Less: Non-operating expenditure	9,502,139.20	14,292,423.97
IV. Total Profit ("-" indicates total loss)	553,005,077.13	809,163,096.57
Less: Income tax expense	68,575,551.28	137,469,994.50
V. Net Profit ("-" indicates net loss)	484,429,525.85	671,693,102.07
i. Classified by operation continuity
1. Net profit from continued
	484,429,525.85	671,693,102.07
operation ("-" indicates net loss)
2. Net profit from discontinued
operation ("-" indicates net loss)
ii. Classified by attribution of
ownership
1. Net profit attributable to owners
	484,424,879.80	671,693,102.07
of the parent company
2. Minority shareholders' profits and
	4,646.05
losses
VI. Net Amount of Other Comprehensive
Income after Tax
Total other comprehensive after-tax net
income attributable to owners of the
parent company
i. Other comprehensive income not
able to be reclassified into the profit or
loss
1. Changes of
re-measurement of the defined benefit
plan
2. Other comprehensive
income that cannot 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
credit risk of the enterprise
5. Others
ii. Other comprehensive income
reclassified into the 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

12

C&S Paper Co., Ltd. Third Quarter Report 2021

3. 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
Total other comprehensive after-tax net
income attributable to minority
shareholders
VII. Total Comprehensive Income	484,429,525.85	671,693,102.07
Total comprehensive income
attributable to owners of the parent	484,424,879.80	671,693,102.07
company
Total comprehensive income
	4,646.05
attributable to minority shareholders
VIII. Earnings per Share:
i. Basic earnings per share	0.3729	0.5207
ii. Diluted earnings per share	0.3698	0.5120

For business combinations of the current period under common control, the net profit realized by the combined party before the combination is: RMB0.00; the net profit realized by the combined party in last period is: RMB0.00.

Legal representative: Liu Peng Person in charge of accounting: Dong Ye Person in charge of accounting department: Xu Xianjing

3. Consolidated cash flow statement from beginning of the year to end of reporting period

Unit: RMB

Item	Incurred in the current period	Incurred in the prior period
I. Cash Flows from Operating
Activities:
Cash received from sale of goods
	6,360,944,202.22	5,535,241,894.34
or rendering of services
Net increase in deposits from
customers, banks and non-bank
financial institutions
Net increase in due to central
banks
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 obtained from interest, net
fee and commission
Net increase in placements from
banks and other financial institutions
Net increase in repo service fund

13

C&S Paper Co., Ltd. Third Quarter Report 2021

Net cash from agent securities
trading
Tax rebates		7,205,724.03
Cash received related to other
	57,981,575.27	95,719,026.24
operating activities
Sub-total of cash inflow from operating
	6,418,925,777.49	5,638,166,644.61
activities
Cash paid for goods purchased and
	3,837,395,641.87	3,819,517,900.19
services rendered
Net 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 placements with
banks and non-bank financial
institutions
Cash paid for interest, fee and
commission
Cash paid for dividends of the
insured
Cash paid to and on behalf of
	631,740,057.84	490,559,056.65
employees
Tax payments	417,475,289.56	363,184,736.53
Cash payments related to other
	653,191,699.30	553,585,391.96
operating activities
Sub-total of cash outflow from
	5,539,802,688.57	5,226,847,085.33
operating activities
Net cash flows from operating activities	879,123,088.92	411,319,559.28
II. Cash Flows from Investing
Activities:
Cash from realization of
investment
Cash received from the return on
	358,473.15	3,821,920.79
investments
Net cash received from the
disposal of fixed assets, intangible	10,642,476.47	38,795,131.20
assets, and other long-term assets
Net amount of cash received from
the disposal of subsidiaries and other
operating organizations
Cash received related to other
	50,000,000.00	127,105,000.00
investing activities
Sub-total of cash inflow from investing
	61,000,949.62	169,722,051.99
activities
Cash paid for the acquisition and
construction of fixed assets, intangible	523,456,060.94	331,376,920.99
assets, and other long-term assets
Cash paid for investments
Net increase in pledged loans
Net amount of cash paid for
acquisition of subsidiaries and other
operating organizations

14

C&S Paper Co., Ltd. Third Quarter Report 2021

Cash payments related to other
	8,000,000.00	20,000,000.00
investing activities
Sub-total of cash outflow from
	531,456,060.94	351,376,920.99
investing activities
Net cash flows from investing activities	-470,455,111.32	-181,654,869.00
III. Cash Flows from Financing
Activities:
Cash received from capital
	31,909,987.57	25,097,753.55
contribution
Including: Proceeds received by
subsidiaries from minority shareholders'
investment
Cash received from borrowings	187,245,860.18	383,892,976.77
Cash received related to other
financing activities
Sub-total of cash inflow from financing
	219,155,847.75	408,990,730.32
activities
Cash paid for repayments of
	167,703,551.03	168,952,706.91
borrowings
Cash payment for interest expenses
	129,522,597.64	99,104,244.85
and distribution of dividends or profits
Including: Dividend and profit
paid by subsidiaries to minority
shareholders
Cash payments related to other
	654,187,119.81	45,439,244.79
financing activities
Sub-total of cash outflow from
	951,413,268.48	313,496,196.55
financing activities
Net cash flows from financing activities	-732,257,420.73	95,494,533.77
IV. Effect of Exchange Rate Changes on
	-3,507,754.36	206,510.56
Cash and Cash Equivalents
V. Net Increase in Cash and Cash
	-327,097,197.49	325,365,734.61
Equivalents
Plus: Opening balance of cash and
	1,050,034,135.72	675,996,852.97
cash equivalents
VI. Closing Balance of Cash and Cash
	722,936,938.23	1,001,362,587.58
Equivalents

(II) Explanation of adjustments for financial statements

1. Description on the adjustment of relevant items in the financial statements at the beginning of the year for the first time adoption of the new leasing standards since 2021

√ Applicable □ Not applicable

Whether to adjust the subjects of the balance sheet at the beginning of the year √ Yes □ No

Consolidated balance sheet

√ Applicable □ Not applicable Whether to adjust the subjects √ Yes □ No Consolidated balance sheet	of the balance sheet at the beginning of the year	of the balance sheet at the beginning of the year	of the balance sheet at the beginning of the year
	Unit: RMB December 31, 2020 January 01, 2021 Adjustment number 1,125,196,199.56 1,125,196,199.56
Item	December 31, 2020	January 01, 2021	Adjustment number
Current assets:
Monetary funds	1,125,196,199.56	1,125,196,199.56
Settlement reserve
Lending to banks and
other financial institutions

15

C&S Paper Co., Ltd. Third Quarter Report 2021

Tradable financial assets
Derivative financial
assets
Notes receivable	724,419.74	724,419.74
Accounts receivable	1,051,423,939.59	1,051,423,939.59
Accounts receivable
financing
Prepayments	26,819,108.57	26,819,108.57
Premium receivable
Reinsurance payables
Reinsurance contract
reserves receivable
Other receivables	15,824,945.56	15,824,945.56
Including: Interest
receivable
Dividends
receivable
Financial assets held
under resale agreements
Inventory	1,661,274,495.32	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
Other current assets	101,584,569.30	101,584,569.30
Total current assets	4,039,920,737.33	4,039,920,737.33
Non-current assets:
Loans and advances to
customers
Investments in creditor’s
rights
Investments in other
creditor’s rights
Long-term receivable
Long-term equity
investment
Investment in other
equity instruments
Other non-current
financial assets
Investment property	34,575,365.94	34,575,365.94
Fixed assets	2,792,587,302.21	2,792,587,302.21
Construction work in	275,904,617.95
		275,904,617.95
progress
Productive biological
assets
Oil & gas assets
Right-of-use assets		10,611,654.31	10,611,654.31
Intangible assets	169,355,772.24	169,355,772.24
Development expenses
Goodwill	64,654.15	64,654.15

16

C&S Paper Co., Ltd. Third Quarter Report 2021

Long-term deferred	26,635,983.14
		26,635,983.14
expenses
Deferred income tax	111,367,362.66
		111,367,362.66
assets
Other non-current assets	28,027,952.15	28,027,952.15
Total non-current assets	3,438,519,010.44	3,449,130,664.75	10,611,654.31
Total assets	7,478,439,747.77	7,489,051,402.08	10,611,654.31
Current liabilities:
Short-term borrowings	142,942,941.34	142,942,941.34
Borrowings from PBC
Placements from banks
and other financial
institutions
Tradable financial
liabilities
Derivative financial
liabilities
Notes payable	234,887,563.22	234,887,563.22
Accounts payable	761,519,389.26	761,519,389.26
Payments received in
advance
Contract liabilities	137,333,617.40	137,333,617.40
Proceeds from financial
assets sold under repo
Customer bank deposits
and due to banks and other
financial institutions
Funds from securities
trading agency
Funds from securities
underwriting agency
Employee remuneration	123,524,627.11
		123,524,627.11
payable
Tax and fees payable	112,608,054.87	112,608,054.87
Other payables	754,844,580.09	754,844,580.09
Including: Interests
payable
Dividends	1,437,466.77
		1,437,466.77
payable
Transaction fee and
commission receivable
Reinsurance payable
Liabilities held for sale
Non-current liabilities
		3,472,854.73	3,472,854.73
due within one year
Other current liabilities	17,628,086.63	17,628,086.63
Total current liabilities	2,285,288,859.92	2,288,761,714.65	3,472,854.73
Non-current liabilities:
Insurance contract
reserves
Long-term borrowings
Bonds payable

17

C&S Paper Co., Ltd. Third Quarter Report 2021

Including: Preference
shares
Perpetual
bonds
Lease liabilities		7,138,799.58	7,138,799.58
Long-term payable
Long-term employee
remuneration payable
Provision
Deferred income	115,101,158.13	115,101,158.13
Deferred income tax	35,903,653.30
		35,903,653.30
liabilities
Other non-current
liabilities
Total non-current liabilities	151,004,811.43	158,143,611.01	7,138,799.58
Total liabilities	2,436,293,671.35	2,446,905,325.66	10,611,654.31
Owner's equity:
Share capital	1,311,487,077.00	1,311,487,077.00
Other equity instruments
Including: Preference
shares
Perpetual
bonds
Capital reserve	907,006,505.05	907,006,505.05
Less: Treasury shares	96,480,911.29	96,480,911.29
Other comprehensive
income
Special reserves
Surplus reserves	61,469,258.27	61,469,258.27
General reserves
Retained earnings	2,858,664,147.39	2,858,664,147.39
Total equity attributable to	5,042,146,076.42
owners of the parent		5,042,146,076.42
company
Equities of minority
shareholders
Total owner's equity	5,042,146,076.42	5,042,146,076.42
Total liabilities and owners'	7,478,439,747.77
		7,489,051,402.08	10,611,654.31
equities

Explanation of adjustment

The Company started to adopt the New Lease Standards from January 1, 2021.

2. Description on the retrospective adjustment of previous comparable data at the first time adoption of the new leasing standards in 2021

□ Applicable √ Not applicable

(III) Report auditing

Whether the Third Quarter Report has been audited □ Yes √ No

The Third Quarter Report of the Company has not been audited.

18

C&S Paper Co., Ltd. Third Quarter Report 2021

Board of Directors of C&S Paper Co., Ltd. October 27, 2021

If there are any ambiguities, the Chinese version shall prevail.

19