StockCode:200986 StockName:FSHXPB AnnouncementNo.: FOSHANHUAXINPACKAGINGCO.,LTD. SEMI-ANNUALREPORT2017(ABSTRACT) IImportantNotes ThisAbstractisbasedonthefulltextoftheSemi-AnnualReport.Inorderforafullunderstandingoftheoperatingresults,financial conditionandfuturedevelopmentplanningoftheCompany,investorsarekindlyremindedtoreadthefulltextcarefullyonthemedia designatedbytheChinaSecuritiesRegulatoryCommission(the“CSRC”). ObjectionsagainstthisReportraisedbythedirectors,supervisorsandseniormanagement: Name Officetitle Objectionandreason Statement:Exceptforthefollowingdirectors,alltheotherdirectorsattendedinpersontheboardmeetingforthereviewofthisReport. Name Officetitle Reasonfornotattendingin Proxyperson ThisAbstracthasbeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthe twoversions,theChineseversionshallprevail. Modifiedauditor’sopinion: □Applicable√Notapplicable ProposalforprofitdistributiontoorconvertingcapitalreserveintosharecapitalforcommonshareholdersfortheReportingPeriod, whichhasbeenconsideredandapprovedbytheBoard: □Applicable√Notapplicable TheCompanyplansnottodistributecashdividendsorbonussharesorconvertcapitalreserveintosharecapital. ProposalforprofitdistributiontopreferenceshareholdersfortheReportingPeriod,whichhasbeenconsideredandapprovedbythe Board: □Applicable√Notapplicable IICompanyProfile 1.StockProfile Stockname FSHXPB Stockcode 200986 Stockexchange ShenzhenStockExchange Contactinformation BoardSecretary SecuritiesRepresentative Name LiuYan ShiHui 2/F,Block7,3KeyangRoad,LuogePark, 2/F,Block7,3KeyangRoad,LuogePark, Officeaddress ChanchengEconomicDevelopmentZone, ChanchengEconomicDevelopmentZone, NanzhuangTown,ChanchengDistrict, NanzhuangTown,ChanchengDistrict, Foshan,GuangdongProvince,P.R.China Foshan,GuangdongProvince,P.R.China Tel. 0756-8666908 0756-8666978 E-mail liuy@htrh-paper.com shih@htrh-paper.com 2.KeyOperatingResults IndicatebytickmarkwhethertheCompanyneedstoretroactivelyrestateanyofitsaccountingdata. □Yes√No ReportingPeriod Sameperiodoflastyear +/-(%) Operatingrevenues(RMB) 1,567,199,202.22 1,492,857,427.72 4.98% Netprofitattributabletoshareholdersof 12,487,648.99 15,497,115.93 -19.42% theCompany(RMB) Netprofitattributabletoshareholdersof theCompanybeforeexceptionalgainsand 10,079,841.69 9,911,166.34 1.70% losses(RMB) Netcashfromoperatingactivities(RMB) -607,133,297.57 -338,363,468.55 -79.43% Basicearningspershare(RMB/share) 0.0247 0.0307 -19.54% Dilutedearningspershare(RMB/share) 0.0247 0.0307 -19.54% Weightedaveragereturnonequity(%) 0.63% 0.80% -0.17% EndofReportingPeriod Endoflastyear +/-(%) Totalassets(RMB) 6,601,097,331.86 6,182,737,808.93 6.77% Netassetsattributabletoshareholdersof 1,970,060,978.08 1,980,395,170.24 -0.52% theCompany(RMB) 3.ShareholdersandTheirHoldingsatPeriod-End Unit:share Total number of preference Totalnumberofcommonshareholders 14,163shareholders with resumed 0 atperiod-end votingrightsatperiod-end(if any) Top10shareholders Nameof Natureof Shareholding Totalshares Restrictedsharesheld Pledgedorfrozenshares shareholder shareholder percentage held Status Number FOSHANHUAXIN State-owned 65.20% 329,512,030 329,512,030DEVELOPME corporationNTCO.,LTD.GUOTAIJUNAN SECURITIES Foreign 0.81% 4,084,905 0 (HONG corporation KONG) LIMITEDWU Foreign 0.42% 2,561,991 0HAOYUAN individualVANGUARDTOTAL ForeignINTERNATIONcorporation 0.27% 1,362,902 0ALSTOCKINDEXFUNDNORGES Foreign 0.27% 1,362,902 0BANK corporationESSENCEINTERNATIONAL Foreign 0.26% 1,305,152 0SECURITIES corporation(HONG KONG) CO., LTD. BOCI Foreign SECURITIES corporation 0.25% 1,280,990 0 LIMITEDWU Foreign 0.24% 1,233,901 0FENQIANG individualFOSHANCHANBENDEState-owned 0.23% 1,139,420 1,139,420DEVELOPME corporationNTCO.,LTD.MIAOJUN Domestic 0.22% 1,119,200 0individualRelated or acting-in-concertIt is unknown whether there is among the above shareholders any related parties orparties among shareholdersacting-in-concertpartiesasdefinedintheAdministrativeMeasuresfortheAcquisitionofListedabove Companies.Shareholders conductingN/Asecuritiesmargintrading(ifany)4.ChangeofControllingShareholderorActualControllerinReportingPeriodChangeofthecontrollingshareholderintheReportingPeriod:□Applicable√NotapplicableThecontrollingshareholderremainedthesameintheReportingPeriod.ChangeoftheactualcontrollerintheReportingPeriod:□Applicable√NotapplicableTheactualcontrollerremainedthesameintheReportingPeriod.5.NumberofPreferenceShareholdersandShareholdingsofTop10ofThem□Applicable√NotapplicableNopreferenceshareholdersintheReportingPeriod.6.CorporatebondsDoestheCompanyhaveanycorporatebondspubliclyofferedandlistedonthestockexchange,whichwereunduebeforetheapprovaldateofthisReportorwereduebutcouldnotberedeemedinfullYes. (1)BondProfile Bondname Abbr. Bondcode Duedate Balance(RMB’0,000) Interestrate 2012Company bondsofFoshan Huaxin 12FSHXPBond 112130 11/26/2017 79,998 5.80% PackagingCo., Ltd. (2)SelectedFinancialInformationasofEndofReportingPeriod Unit:RMB’0,000 Item EndofReportingPeriod Endoflastyear +/-(%) Debt-to-assetsratio 45.60% 41.79% 3.81% Item ReportingPeriod Sameperiodoflastyear +/-(%) EBITDA-to-interestcoverage 2.67 3.1 -13.87% ratio IIIPerformanceDiscussionandAnalysis 1.PerformanceReviewforReportingPeriod IstheCompanysubjecttoanydisclosurerequirementsforspecialindustries No. IntheReportingPeriod,undertheleadershipoftheBoard,alltheCompany’semployeesstrictlyabidedbythe CompanyLawandtheCompany’sArticlesofAssociation,unitedasoneman,embracedthephilosophyof“New MeasuresforReform,NewMethodsforManagement,NewThinkingforOperationsandNewMechanismsfor Incentive”, and followed the guideline of “IncreaseEfficiency through Production Ramp-up and Increase EarningsthroughEfficiencyImprovement”.TheCompanyalsofurthereditsleanmanagementcampaigntotryto increaseproductionefficiencyandimproveoperatingresults.Asaresult,itmaintainedstableproductionand operations.FortheReportingPeriod,theCompanyachieved,onaconsolidatedbasis,operatingrevenuesof RMB1.567billion,up4.98%comparedtothesameperiodoflastyear,andtotalprofitofRMB15.3287million, representingayear-on-yeardecreaseof50%.Theprofitdecreasedmainlybecausetheriseoftheunitpricesof rawmaterials(coal,woodpulp,rubberlatex,etc.)causeda5.5%year-on-yearincreaseinoperatingcosts,andthe fluctuationsoftheU.S.dollarexchangerateandotherfactorsledtoa43.7%year-on-yearriseinfinancecosts. Thefirsthalfof2017continuedtoseeanewcapacityof1.65million-tonivoryboardonthedomesticmarket.The monthlyaveragecapacityofthisperiodincreasedbyapproximately0.14millionmetrictonscomparedtothe sameperiodoflastyear,representingagrowthrateofabout18%.Pricesofcigarette boxboardandfood packagingboard(includingliquidfoodwrapper)basicallymaintainedatstablelevelswhilethatofthemainstream product(commercialboard)registeredariseandfall.Thepriceofcommercialboardcontinuedtoriseinthefirst quarteroftheyearfromlastyear,butthesecondquarter,whichisatraditionalslackseason,thepriceexperienced atemporaryfall-backduetoapparentlyweakdemandandsluggishturnoveroforders. Inthefirsthalfof2017,inviewofthesaidchangesinthemarketandinthemacro-economicenvironment,the Companycloselyadheredtothecorephilosophyof“NewMeasuresforReform,NewMethodsforManagement, NewThinkingforOperationsandNewMechanismsforIncentive”,activelypursueditsbudgetaryobjectives,and followedtheguideline of“IncreaseEfficiencythroughProductionRamp-up andIncreaseEarnings through EfficiencyImprovement”.TheCompanymainlyadoptedthefollowingmeasuresinthisperiod: A.ImplementCorrespondingEvaluationReformandPerformanceiscloselyRelatedtoOutputandSales:inorder toimprovethecompany’soperationefficiency,theperformanceofallemployeeswascloselyrelatedtooutput andsales,andthecompanywouldmakesurethatallemployeescouldfocustheirforcestoaccomplishtasksby makingconcertedeffortandkeepmaterializingcorrespondingoperationtargetinapersistentway. B.DefinedSpecificJobResponsibilitiestoSpecificPersonandFulfilledthe“DualReduction”objectiveina persistentway:formarketingmanagementpersonnel,correspondingjobresponsibilitieswouldbeassignedto specificpersons;formulatedandimplementedcorrespondinginventoryandreceivablesmanagementstrategyand plan;assignedcorresponding“DualReduction”objectivetocorrespondingregionforfulfillment,whichwouldbe integratedintothescopeofperformanceevaluationsystem. C.Regardedscientificand technologicalinnovationasthenuclear powerfor thecompany’sdevelopment; increasedtheinvestmentintoR&D;continuouslydevelopednewproducts.Atpresent,partialproductshavemade correspondingbreakthrough. D.ImplementedthemarketingsystemreformandEnhancedthemarketingcapability:1.Strengthenthevertical managementandcontrolofvarietiesandbusinesses;promotedtheclassifiedmanagementandcontrolmodebased onthreemajorcategories(cigarettepaperboard,foodpaperboardandsocialpaperboard)inthefirsthalfofthe year;2.Strengthentheverticalcross-regionalplanningandcoordinationbasedonvarietiesmanagementmodeas wellassalescontrolfunction;3.Optimizethestructureofsalesmen:inthefirsthalfoftheyear,“internalposition assessment”in associationwith“education backgroundcombiningperformanceassessment” wasappliedto completelyoptimizethestructureofemployeeswithinthemarketingsystem. E.Adjusttheproductstructurecloselyinlinewithanychangeinthemarket:thecompanycloselyfollowedany changeinthemarkettrend,properlyadjustedtheproductandclientstructure,strategicallyseizedtheprice-rising trendandcontinuouslypromotedtheproduct’sgrossmarginlevel. 2.MattersRelatedtoFinancialReport (1)ChangesinAccountingPolicies,AccountingEstimationsandMeasurementMethodsComparedtoLast AccountingPeriod □Applicable√Notapplicable Nosuchcases. (2)RetroactiveRestatementsduetoCorrectionofSignificantAccountingErrorsinReportingPeriod □Applicable√Notapplicable Nosuchcases. (3)ChangesinScopeofConsolidatedFinancialStatementsComparedtoLastAccountingPeriod □Applicable√Notapplicable Nosuchcases.