FoshanHuaxinPackagingCo.,Ltd. AbstractofSemi-annualReport2016 Stockcode:200986 Stockname:FSHXPB AnnouncementNo.:2016-087 FoshanHuaxinPackagingCo.,Ltd. AbstractofSemi-annualReport2016 1.Importantnotes TheAbstractisbasedonthefulltextofthesemi-annualreport.Formoredetails,investorsaresuggestedtoreadthefulltextdisclosedatthesametimewiththeAbstractonhttp://www.cninfo.com.cn,thewebsiteoftheShenzhenStockExchangeoranyotherwebsitesdesignatedbytheCSRC. TheAbstracthasbeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail. Corporateprofile Stockname FSHXPB Stockcode 200986 Stockexchange ShenzhenStockExchange Contactinformation BoardSecretary SecuritiesRepresentative Name LiuHanwen Tel. 0757-83992076 Fax 0757-83992026 E-mail liu_hanwen@htrh-paper.com 2.Financialhighlightsandshareholderchanges (1)Financialhighlights WhethertheCompanyperformsanyretroactiveadjustmentstoorrestatementsofitsaccountingdataoflastyearduetochangeinaccountingpoliciesorcorrectionofaccountingerrors □Yes√No ReportingPeriod Sameperiodoflastyear +/-(%) Operatingrevenues(RMB) 1,492,857,427.72 1,579,935,507.49 -5.51% Netprofitattributabletoshareholdersof 15,497,115.93 12,564,179.69 23.34% theCompany(RMB) Netprofitattributabletoshareholdersof theCompanyexcludingexceptionalprofit 9,911,166.34 7,392,560.12 34.07% andloss(RMB) Netcashflowsfromoperatingactivities -338,363,468.55 303,107,243.51 -211.63% (RMB) Basicearningspershare(RMB/share) 0.0307 0.0249 23.29% Dilutedearningspershare(RMB/share) 0.0307 0.0249 23.29% Weightedaveragereturnonequity(%) 0.80% 0.69% 0.11% Asattheendofthe Asattheendoflastyear +/-(%) ReportingPeriod Totalassets(RMB) 6,171,939,740.05 6,059,337,427.41 1.86% Netassetsattributabletoshareholdersof 1,934,568,198.06 1,938,277,232.13 -0.19% theCompany(RMB) (2)Shareholdingsofthetop10ordinaryshareholders Unit:share FoshanHuaxinPackagingCo.,Ltd. AbstractofSemi-annualReport2016 Totalnumberofordinaryshareholders 14,170 attheendoftheReportingPeriod Shareholdingsofthetop10ordinaryshareholders Nameof Natureof Shareholding Numberof Numberofnon-tradableshares Pledgedorfrozenshares shareholder shareholder percentage sharesheld held Status Number FOSHAN HUAXIN State-owned 65.20% 329,512,030 329,512,030 DEVELOPME corporation NTCO.,LTD. GUOTAI JUNAN Foreign SECURITIES( 0.81% 4,084,905 corporation HONGKONG) LIMITED WU Foreign 0.42% 2,561,991 HAOYUAN individual VANGUARD TOTAL Foreign INTERNATION 0.27% 1,362,902 corporation AL STOCK INDEXFUND NORGES Foreign 0.27% 1,352,720 BANK corporation ESSENCE INTERNATION AL Foreign SECURITIES 0.26% 1,305,152 corporation (HONG KONG) CO., LTD. BOCI Foreign SECURITIES 0.25% 1,280,990 corporation LIMITED WU Domestic 0.24% 1,233,901 FENQIANG individual FOSHAN CHANBENDEState-owned 0.23% 1,139,420 1,139,420 DEVELOPME corporation NTCO.,LTD. Domestic MIAOJUN 0.22% 1,119,200 individual It is unknown to the Company whether there existsassociated relationship among the Relatedoract-in-concertpartiesshareholdersaboveortheyareacting-in-concertentitiesasstipulatedintheAdministrative amongtheshareholdersabove MeasuresonInformationDisclosureofChangesinShareholdingofListedCompanies. (3)Shareholdingsofthetop10preferenceshareholders □Applicable√Notapplicable NosuchcasesintheReportingPeriod. (4)Changeofthecontrollingshareholderortheactualcontroller ChangeofthecontrollingshareholderintheReportingPeriod □Applicable√Notapplicable NosuchcasesintheReportingPeriod. ChangeoftheactualcontrollerintheReportingPeriod FoshanHuaxinPackagingCo.,Ltd. AbstractofSemi-annualReport2016 □Applicable√Notapplicable NosuchcasesintheReportingPeriod. 3.Discussionandanalysisbythemanagement AccordingtotheNationalBureauofStatistics,China’spapermakerssold57.779milliontonsofmachine-madepaperand paperboardinthefirsthalfof2016,withasales-outputratioof97.2%,representingayear-on-yeargrowthof0.4%.Theinventoryattheendofthesecondquarterrose7.7%fromthebeginningoftheyear.ForJanuary-May2016,thepapermakingindustrywasrunningsteadilyandgeneratedoperatingrevenuesofRMB328.744billion,up5.43%fromayearearlier;andtotalprofitofRMB13.94billion,a14.5%increasefromthesameperiodoflastyear.AccordingtotheChinaPaperAssociation,inthefirsthalfof2016,despiteagrowthintheoperatingrevenues,thedomesticproductionandsalesvolumesofpaperboardremainedlowwithlackofmarketconfidence,andthepricesofmostproductsstayedatlowlevels.Meanwhile,segmentsofthepapermakingindustryhavedifferentiated.Craftcardboardandcorrugatedboardareexpectedtocontinuetoseeafastgrowthindemand;earningsofhouseholdpaperremainsatisfactory;theoutputofcoatedartpaperhasdecreased,butthedemandisstable;andtheproductionandsalesvolumesofwhitecardboardareexpectedlythesamewithlastyear,butnewcapacitywillfurtherheatupcompetition. IntheReportingPeriod,thewhitecardboardsector,wheretheCompanyisengaged,remainedsluggishasthegrowthofdemandforpaperwasslowwhilecapacitykeptgrowing.It’sexpectedtotakealongtimetosoakupexcesscapacity.Asaresult,competitionwithinthewhitecardboardsegmentfocusesonprice.Withourcompetitorsalltryingtosellmoreinthehigh-endmarket,thepricesofmedium-and-high-endwhitecardboardregisteredadrop,causinggreatpressureonourbusiness. Todealwiththat,wehavebeenimprovingourinternalmanagementandadjustingourproductstructureintherecenttwoyears.Ininternalmanagement,weadoptleanproductionforbetterprofit.Atthesametime,wehavefurtherimprovedourproductstructurebyincreasingthepercentageofliquidfoodwrapperinoursaleswithouradvancedtechnologyinthisrespect,soastocreateanewprofitgrowthpoint.Therefore,ourwhitecardboardbusinesshassuccessfullymaintainedstableearnings.Ourpapermakingchemicalsbusinesshasseenadropinboththegrossprofitmarginandtheearningsbecauseofanarrowermarketspaceandfluctuationsintheproductpricesasaresultoftheincreasinglyfiercecompetition.Asforourpressworkbusiness,theoperatingrevenueseesnogrowthduetotheshrinkingdemandofdownstreamcustomers,andadropoftheearningshasappearedbecausethefixedassetdepreciationandthecosthaveincreasedduetonewcapacity. 4.Mattersrelatedtofinancialreporting (1)Explainanychangesintheaccountingpolicies,accountingestimatesandmeasurementmethodsascomparedwiththefinancialreportingoflastyear □Applicable√Notapplicable NosuchcasesintheReportingPeriod. (2)ExplainanyretroactiverestatementsduetocorrectionofsignificantaccountingerrorsintheReportingPeriod □Applicable√Notapplicable NosuchcasesintheReportingPeriod. (3)Explainanychangesintheconsolidationscopeascomparedwiththefinancialreportingoflastyear √Applicable□Notapplicable SubsidiaryFoshanChengtongPaperCo.,Ltd.wasdisposedattheendof2015andhasthusbeenexcludedfromtheconsolidatedfinancialstatementsoftheReportingPeriod. (4)ExplanationoftheBoardofDirectorsandtheBoardofSupervisorsconcerningthe“non-standard”auditor’sreportissuedbytheCPAsfirmfortheReportingPeriod □Applicable√Notapplicable