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    中顺洁柔:2020年半年度报告(英文版)

    日期:2020-09-08 16:22:08
    股票名称:中顺洁柔 股票代码:002511
    研报栏目:定期财报  (PDF) 3076K
    报告内容
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    中顺洁柔纸业股份有限公司2020年半年度报告全文Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.0Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.1SectionIImportantNotice,ContentsandInterpretationTheBoardofDirectorsandtheBoardofSupervisorsoftheCompanyanditsdirectors,supervisorsandseniormanagementwarrantthattheinformationcontainedinthisreportistruthful,accurateandcompleteandtherearenofalsepresentationsormisleadingstatementscontainedin,ormaterialomissionsfrom,thisreport,andthattheyassumeseverallyandjointlylegalliability.DeclarationbyDengYingzhong,legalrepresentative,DongYe,personinchargeofaccounting,andXuXianjing,personinchargeofaccountingdepartmentoftheCompanywarrantthattheinformationcontainedinthisreportistruthful,accurate,andcomplete.AlldirectorsattendedthemeetingoftheBoardofDirectorswherethisreportwasreviewed.Anydiscrepancybetweenthetotalnumberandthesumofsub-itemsinthisreportiscausedbyroundingoff.Thisreportmayinvolveforward-lookingstatementsontheCompany'splanwhichbynomeansconstituteanysubstantivecommitmentbytheCompanyforinvestors.Investorsareadvisedtobeawareofinvestmentrisks.I.RiskofGreatFluctuationsinPulpPricesPulp,asaninternationalbulkrawmaterial,issubjecttotheglobaleconomiccycle.Pulppriceshavetumbledsharplysince2019,owingtoweakerChinesemarketdemand,tradedisputesacrosstheworld,exchangeratemovement,andincreasedpulpinventories.Besides,suchpricescontinuedtofallwithfluctuationsinthefirsthalfof2020.TheprimaryrawmaterialoftheCompanyispulp,accountingfor40%-60%ofthetotalproductioncosts.Therefore,theabovesituationposesariskofgreatfluctuationsinpulppricestotheCompany.II.CurrencyRiskImportedmachineryequipmentandpulpplusexportedproductsoftheCompanyaremainlysettledinUSD,HKD,andEUR.Sinceexchangeratesareaffectedbytheinternationaleconomicsituation,theCompanyfacesexchangeraterisks.III.RegionalMarketCompetitionRiskHouseholdpaperisavastmarketinChinaintermsofbothgeographyandmarketspace.Themaincompetitioninthehouseholdpaperindustryliesinregionalmarkets,giventhelowunitvalue,transportationexpensestakingupalargepartofthesalesprice,andlimitationsofthetransportationradius.Additionally,high-end,mid-end,andlow-endproductscompeteinregionalmarkets,asinfluencedbyspendingpowerandconsumptionhabit.Inregardtothedevelopmenttrendoftheindustry,mid-andhigh-endhouseholdpaperofnationalbrandsismorecompetitive.However,ahandfulofregionalbrandshaveanadvantageinsomeregionalmarkets.China'shouseholdpaperindustryrequirescontinuedintegration,comparedwithoverseascounterparts.TheCompanyembracesproductionbasesandasalesnetworkacrossthecountryandoffersmid-andhigh-endproductsundernationalbrands.Nevertheless,itisinescapablefromtheriskofregionalmarketcompetition.IV.IndustrialPolicyRiskFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.2Stricterrequirementshavebeenraisedforthepapermakingindustryintheaspectsofscale,technology,equipment,andenvironmentalprotection,asmultipleindustryplans,suchasthePapermakingIndustryDevelopmentPolicy,theNoticeontheManagementofPollutionDischargeLicenseforThermalPowerandPapermakingIndustriesandHighChimneyEmissionSourcesinPilotCitiesinBeijing-Tianjin-HebeiRegion,andtheOpinionsofChinaPaperAssociationon"ThirteenthFive-year"DevelopmentPlanofPapermakingIndustry,aswellassupportingpoliciessuccessivelyissuedbyrelevantdepartments.Particularly,anumberofmeasureshavebeenintroducedthroughenvironmentalprotectionpoliciestodrivetheall-round,coordinated,andsustainabledevelopmentofthehouseholdpaperindustry,including:1)optimizingtheindustrialdistributiontoreasonablyallocateresourcesandpromotingcleanproductiontopreservetheecologicalenvironment;2)pushingenergyconservationandemissionreductiontoshutdownoutdatedproductionfacilities,andadjustingproductstructureandimproveproductquality;and3)developingresource-savingmodelstoadvocategreenconsumption,andoptimizingenterprisestructureanddriveM&Aandrestructuring.Thesepoliciesaredesignatedtostrengthenhouseholdpaperindustryconcentration,closebackwardproductionfacilities,andoptimizeresourceallocation.TheCompany,asanenterpriseinthefirstechelonofthedomestichouseholdpaperindustry,isunderpinnedbynationalpoliciesrelatedtothesustainabledevelopmentofthehouseholdpaperindustry.Preciselybecauseofthis,industrialpolicyadjustment,ifany,willimpacttheproductionandoperationsoftheCompany,tosomeextent.V.SafeProductionRiskMostofthematerialsinvolvedinthehouseholdpaperindustryareflammable,includingthemainrawmaterialofpulp,themainpackingmaterialsofplastic-filmpackingbagsandcartons,thesemi-finishedproductofbodypaper,andfinishedproducts.Duetothecharacteristicsoflowunitvalueandlargemarketconsumption,householdpapermanufacturershavetokeepamassofpulp,packingmaterials,andsemi-finishedandfinishedproductsfromtheentryofrawmaterialstotheplanttothedeliveryofproductstothemarket.Thus,firecancauseenormouslossestosuchmanufacturers.Inviewofthis,theCompanyhasformulatedstrictfireprotectionpoliciesforthewarehousemanagementofrawmaterialsandfinishedproductsandtheplacementandtransferofsemi-finishedproducts,equippedworkshopsandwarehouseswithadequatefireprotectionequipment,andboughtfullinsuranceforriskyproperties.Evenso,itstillfacessafeproductionrisks.VI.LogisticsTransportationRiskThespreadoftheCOVID-19pandemicsincethebeginningof2020hashindereddomesticandforeignlogisticstransportationbyseaandlandtovaryingdegrees,affectingboththeCompany'sprocurementandsalesandupstreamsuppliersanddownstreamdealers.Inotherwords,theCompanyhassufferedfrommultipledimensions.RisksareunavoidablefortheCompanyatthemid-anddownstreamofthehouseholdpaperindustrychain,thoughimpactsofthepandemicarephasedandtemporary."X.RisksandCountermeasures"in"SectionIVDiscussionandAnalysisofOperationStatus"inthisreportisdevotedtoelaboratedonpossiblerisksandcountermeasuresoftheCompany.Investorsareadvisedtopayattentiontotherelevantcontents.TheCompanyplansnottodistributecashorsharedividendsorconvertcapitalreservetosharecapital.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.3TableofContentsSectionIImportantNotice,ContentsandInterpretation...........................................................1SectionIICompanyProfileandKeyFinancialIndicators..........................................................5SectionIIIBusinessOverview......................................................................................................8SectionIVDiscussionandAnalysisofOperationStatus...........................................................12SectionVImportantEvents........................................................................................................22SectionVIEquityChangesandShareholders...........................................................................48SectionVIIDetailsofPreferenceShares....................................................................................55SectionVIIIConvertibleCorporateBonds................................................................................56SectionIXProfilesofDirectors,Supervisors,andSeniorManagement...................................57SectionXCorporateBonds........................................................................................................59SectionXIFinancialReport.......................................................................................................60SectionXIICatalogofDocumentsforReference....................................................................181Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.4DefinitionsTermMeansDefinitionTheCompany,Company,issuer,joint-stockcompany,C&SMeansC&SPaperCo.,Ltd.ZhongshunGroupMeansGuangdongZhongshunPaperGroupCo.,Ltd.HongKongC&SMeansChungShunCo.isaHongKong-basedcompany.ZhongshunTrading,ZhongshanTradingMeansZhongshanZhongshunTradingCo.,Ltd.ZhongShunInternationalMeansZhongShunInternationalCo.,Ltd.isaHongKong-basedcompany.C&SHongKongMeansC&SHongKongCo.,Ltd.isaHongKong-basedcompany.BeijingC&SMeansBeijingC&SPaperCo.,Ltd.XiaoganC&SMeansXiaoganC&STradingCo.,Ltd.ChengduC&SMeansChengduZhongshunPaperCo.,Ltd.HangzhouJieRouMeansHangzhouJieRouTradingCo.,Ltd.ShanghaiHuicongMeansShanghaiHuicongPaperCo.,Ltd.SichuanC&S,ChengduTiantianMeansC&S(Sichuan)PaperCo.,Ltd.,formerlyknownasChengduTiantianPaperCo.,Ltd.JiangmenJieRouMeansJiangmenC&SPaperCo.,Ltd.JiangmenC&SMeansJiangmenZhongshunPaperCo.,Ltd.ZhejiangC&SMeansZhejiangZhongshunPaperCo.,Ltd.HubeiC&SMeansC&S(Hubei)PaperCo.,Ltd.,formerlyknownasHubeiZhongshunHongchangPaperCo.,Ltd.YunfuC&SMeansC&S(Yunfu)PaperCo.,Ltd.YunfuTradingMeansC&S(Yunfu)TradingCo.,Ltd.TangshanBranch,TangshanC&SMeansC&SPaperCo.,Ltd.TangshanBranchZhongshanJieRouPaperMeansC&S(Zhongshan)PaperCo.,Ltd.,formerlyknownasZhongshanTongfuTradeCo.,Ltd.MacaoC&SMeansC&S(Macao)Co.,Ltd.DazhouC&SMeansC&S(Dazhou)PaperCo.,Ltd.SunC&SMeansSunDailyNecessitiesCo.,Ltd.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.5SectionIICompanyProfileandKeyFinancialIndicatorsI.CompanyProfileStocknameC&SStockcode002511StockexchangeShenzhenStockExchangeChinesenameofthecompanyC&SPaperCo.,Ltd.Chineseabbreviationofthecompany(ifany)C&SEnglishnameofthecompany(ifany)C&SPaperCo.,Ltd.Englishabbreviationofthecompany(ifany)C&SLegalrepresentativeDengYingzhongII.ContactandContactInformationBoardsecretaryRepresentativeofsecuritiesaffairsNameZhouQichaoCaoHuiAddress136CaihongAvenue,WestDistrict,ZhongshanCity136CaihongAvenue,WestDistrict,ZhongshanCityTel.0760-878833330760-87883333Fax0760-238868860760-23886886Emailseven.zhou@cs-paper.comhuicao@cs-paper.comIII.OtherInformation1.CompanycontactWhethertheregisteredandofficeaddressesandtheirpostcodes,officialwebsite,andemailoftheCompanywerechangedduringthereportingperiod□Applicable√InapplicableTheregisteredandofficeaddressesandtheirpostcodes,officialwebsite,andemailoftheCompanywerenotchangedduringthereportingperiod.Seethe2019AnnualReportfordetails.2.InformationdisclosureandplacewherefinancialstatementsarekeptWhetherinformationdisclosureandtheplacewherethesemi-annualreportiskeptwerechangedduringthereportingperiod□Applicable√InapplicableThenewspapersselectedbytheCompanyforinformationdisclosure,thewebsitesdesignatedbytheChinaSecuritiesRegulatoryCommission(CSRC)forpublishingthesemi-annualreport,andtheplacewherethesemi-annualreportiskeptwerenotchangedduringthereportingperiod.Seethe2019AnnualReportfordetails.3.OtherrelevantinformationWhetherotherrelevantinformationwaschangedduringthereportingperiod√Applicable□InapplicableFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.6TheCompanychangedmattersofindustrialandcommercialregistrationduringthereportingperiod.(1)Thebusinesscopewasexpandedfrom"R&D,production,processing,andsales(includingonlinesales):High-endhouseholdpaperseriesproducts,tissueboxes,sanitationsupplies,cosmetics,non-wovenproducts,anddailynecessities(limitedtoplasticproductsfordailyuse,chemicalsfordailyuse,metalwarefordailyuse,rubberproductsfordailyuse,andceramicsfordailyuse).Pulpimportandexport"to"R&D,production,processing,andsales(includingonlinesales):High-endhouseholdpaperseriesproducts,tissueboxes,sanitationsupplies,cosmetics,non-wovenproducts,dailynecessities(limitedtoplasticproductsfordailyuse,metalwarefordailyuse,rubberproductsfordailyuse,andceramicsfordailyuse),andchemicalsfordailyuse(excludinghazardouschemicals),ClassImedicaldevices.Pulpimportandexport(excludingstatetradingcommodities;productsinthequotasystemorrequiringalicenseareappliedforinlinewithrelevantnationalregulations).OperationsandproductionofClassIIandIIImedicaldevices(involvingtheproductionofmedicaldevicesandcosmetics)".(2)Theregisteredcapitalwaschangedfrom"RMB1,306,099,573"to"RMB1,308,891,273".SeetheAnnouncementontheCompletionofIndustrialandCommercialRegistrationAmendmentofCompanyandPartially-ownedSubsidiaries(AnnouncementNo.:2020-19)publishedonMarch31,2020,inthedesignatedmediaforinformationdisclosure,namely,SecuritiesTimes(STCN,),ChinaSecuritiesJournal(),SecuritiesDaily(),ShanghaiSecuritiesNews(),andCNINFO().IV.MainAccountingDataandFinancialIndicatorsWhethertheCompanyneedstoperformretrospectiveadjustmentorrestatementofaccountingdataforpreviousyears□Yes√NoCurrentreportingperiodSameperiodlastyearYoYchangesOperatingincome(RMB)3,616,201,399.803,172,389,026.9613.99%Netprofitattributabletoshareholdersoflistedcompanies(RMB)452,699,484.61274,874,634.4364.69%Netprofitattributabletoshareholdersoflistedcompanieslessnon-recurringprofitandloss(RMB)446,535,737.96269,657,245.9265.59%Netcashflowsfromoperatingactivities(RMB)504,558,588.33734,985,638.36-31.35%Basicearningspershare(RMB/share)0.35190.216262.77%Dilutedearningspershare(RMB/share)0.34620.215660.58%Weightedaveragereturnonnetassets10.46%7.90%2.56%EndofthecurrentreportingperiodEndoflastyearChangesinthecurrentreportingperiodfromtheendoflastyearTotalassets(RMB)6,612,703,642.316,026,271,823.649.73%Netassetsattributabletoshareholdersoflistedcompanies(RMB)4,532,240,640.944,077,004,459.2311.17%Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.7V.DifferencesbetweenAccountingDataDisclosedunderDomesticandOverseasAccountingStandards1.DifferencesinnetprofitandnetassetsbetweenthefinancialstatementsdisclosedundertheIASandthePRCGAAP□Applicable√InapplicableTheCompanydidnothaveanydifferencesinnetprofitandnetassetsbetweenthefinancialstatementsdisclosedundertheIASandthePRCGAAPduringthereportingperiod.2.DifferencesinnetprofitandnetassetsbetweenthefinancialstatementsdisclosedunderoverseasaccountingstandardsandthePRCGAAP□Applicable√InapplicableTheCompanydidnothaveanydifferencesinnetprofitandnetassetsbetweenthefinancialstatementsdisclosedunderoverseasaccountingstandardsandthePRCGAAPduringthereportingperiod.VI.ItemsandAmountsofNon-RecurringProfitandLoss√Applicable□InapplicableUnit:RMBItemAmountRemarksProfitandlossfromdisposalofnon-currentassets(includingtheoffsetportionwithprovisionsforassetimpairmentalreadysetaside)-896,870.05Governmentgrantsmeasuredatfairvaluethroughprofitandlossofthecurrentperiod(exceptforthegovernmentgrantsthatarecloselyrelatedtotheCompany'sbusinessanddistributedinafixquotaoramountinaccordancewithunifiednationalstandards)16,474,867.62Profitandlossfromassetsentrustedtoothersforinvestmentormanagement2,287,274.87Returnsonprincipal-protectedwealthmanagementproductsatmaturityandreverserepooftreasurybondsOthernon-operatingexpensesexcludingtheaboveitems-11,371,164.42Less:Influenceofincometax330,361.37Total6,163,746.65--ThereasonswhytheCompanydefinedcertainitemsasnon-recurringprofitandlossinlinewiththeNo.1ExplanatoryAnnouncementonInformationDisclosureofCompaniesOfferingSecuritiestothePublic—Non-recurringProfitandLossandsomeitemslistedintheaboveannouncementasrecurringprofitandlossshallbespecified.□Applicable√InapplicableTheCompanydidnotdefineanynon-recurringprofitandlossdefinedorlistedintheNo.1ExplanatoryAnnouncementonInformationDisclosureofCompaniesOfferingSecuritiestothePublic—Non-recurringProfitandLossasrecurringprofitandloss.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.8SectionIIIBusinessOverviewI.MainBusinessesoftheCompanyduringtheReportingPeriodTheCompany'smainbusinessesincludeR&D,production,processing,andsales(includingonlinesales):High-endhouseholdpaperseriesproducts,cottontissues,andpersonalcareproducts.TheCompanyfeaturesthreemajorbrands,namely,JieRou,Sun,andDolemi,andtwomainproducts,thatis,householdpaperandpersonalcareproducts.Specifically,itsproductsfallintosevenmajorcategories,includingcenterfeedrolls,corelessrolls,facialtissues,tissuehandkerchiefs,wipes,cottontissues,andpersonalcareproducts.Maininformationonitsproductsisasfollows:i.Householdpaper1.FaceSeries:Facetissuehandkerchiefsadoptsuniquepapermakingprocesses.Theyremainpliableevenwhentheyarewetandcanbeusedasafacetowel.Facetissuehandkerchiefsisaknock-outproductunderthebrandofJieRou.Basedonconstantqualityupgrading,thenewlydevelopedfour-layerthickfacialtissuesarepliableandthick.Onepieceofthisfacialtissueisasthickastwopiecesofaveragetissues.Moreover,itsexquisiteandfashionableknurlingmakeuserexperiencebetter.2.LotionSeries:Lotionwaterretentionfacialtissuesarecharacterizedbytheskin-friendlylotionandmoisturizingfactor.Theyfeelsoftandsmooth,thankstothewaterretentionfunction.Thisproductisespeciallysuitablefordelicateskinandapplicabletomothersandinfants,peoplewithnasalallergy,andpeoplewearingmakeup.3.NaturalWoodSeries:TheCompanylaunchedthefirstnobleyellowtissues(withlowwhiteness),"JieRouNaturalWoodSeries"in2018,basedontheconsumptionconceptsofhealthandsafety.Itssoftandpliabletextureisattributableto100%importedrawwoodpulp.Qualityofthewholeseriesissuperb.4.CottonTissueSeries:"CottonTissue"products:Theproductsfeature100%freshcotton,completephysicalprocesses,andunbleachedtissues.Astheyaresoft,thick,andskin-friendly.Theycanbeused,dryandwet.Besides,theycanbeusedforpersonalcleaningandcareascottonpadsandfacetowels,especiallyinfantsandwomen.Absorbenttowels:Theseproductsaremadefrom100%cotton,softandskin-friendly.Theycanquicklyabsorbsweatandleaveyourskindryandcomfortable.Additionally,theabsorbenttowelsaremild,non-stimulating,andnatural.Theyareanoptimalchoicefordelicateskin.5.SunSeries:TheCompanyre-activatedthebrand,Sun,in2019inordertoacceleratethecoverageofhigh-,mid-,andlow-endhouseholdpapermarketsinChinaandsatisfyconsumptionneedsatdifferentlevels.Sunispositionedtobeahighlycost-effectiveproductthathasbetterqualityyetlowerpricesandfacesover60%ofthemid-andlow-endmarketsinChina.Moreover,itisthekeytoraisethemarketshareoftheCompany.6.JinZunSeries:JinZunproductsaremadefrom100%importedrawwoodpulp,thick,pliable,andcost-effective.7.Wipes:Kitchenwipes:Qualityandthickpearlnon-womenclothisusedtoproducethesoftandpliablekitchenwipes.Ithasanenhancedeffectofdeoilingandcleaning.Additionally,coconutoilextractisaddedtoprotectyourhands.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.9Babywipes:Theproductshavepassedoralmucousandskinirritatingtests.Featuringamildformula,theyaresuitableforbabies.Portablewipes:Theseproductsaremadefromthickenedspunlacenon-wovencloth,sotheyarethick.Onepieceofthiswipeisasthickastwopiecesofaveragewipes.Theyaremildandfreefromalcohol,pigments,andfluorescentagents.Makeupremovalwipes:Theproductsaremildandfreefromalcoholormigratingfluorescentbrighteners.Theyhavepassedtheskinirritatingtest.TheyarerichinHoneysuckleFlowerandChamomillaRecutitaFlowerextracts.Whileremovingyourmakeup,theycancareforyourskin.Yourskinwillfeelrefreshingandmoisturizingaftermakeupremoval.Toiletwipes:Theseproductsarenatural,mild,andalcohol-free.Theyhaveaweaklyacidicformula.Theyhavepassedvaginamucosaandskinirritatingtests.Theycaneffectivelyremoveodorandcareforyourskin.Disinfectantwipes:Theseproductsfeelsoftandcomfortableandarefreefrommigratingfluorescentbrighteners.Theyaremadefrom100%cottonnon-wovencloth.Withthealcohol-basedformula,thewipeshaveaneffectivecleaninganddisinfectioneffects.Youwillfeelmoreassuredbecauseofquickvolatilization.ii.PersonalcareproductsDolemiSeries:InJune2019,theCompanylaunchedanewpersonalcarebrand,Dolemi,tocaterforupgradingconsumption.ThesurfaceofDolemiproductsismadefromcotton.Theyarecharacterizedbytwo-wayaircirculation.Theyareelastic,soft,andfit.Thankstothegoodaircirculation,youwillfeelatease.Theyenablethewomenpursuingbetterqualityoflifetoexperience"thinpadsandgetridofsideleakage".Facialmasks:Inquickresponsetothepandemic,theCompanystartedtoproduceandsellfacialmaskstoaddresstheshortageoffacialmasksinMarch2020.Itsproductsincludefacialmasksforadultsandchildren.Thethree-layerfacialmaskscanfilterover95%ofbacteriasoastobetterprotectconsumers.TheCompanyhasalwayscenteredonconsumerneedsandvalueuserexperience.Asanenterpriseinthefirstechelonofthedomestichouseholdpaperindustry,ithasgatheredtopR&Dtalent,embracedoutstandingandindependentR&Dtechnology,andfeaturedindustry-leadinginnovationcapabilities.TheCompanykeepsofferingbetterandmorediversifiedproductsbyacclimatingtheconsumptiontrendandsatisfyingmulti-levelanddiversifiedneeds.II.MajorChangesinMainAssets1.MajorchangesinmainassetsMainassetsMajorchangesEquityassetsTherewerenomajorchangesduringthereportingperiod.PropertyandequipmentTherewerenomajorchangesduringthereportingperiod.IntangibleassetsTherewerenomajorchangesduringthereportingperiod.ConstructionworkinprogressTherewerenomajorchangesduringthereportingperiod.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.102.Mainoverseasassets□Applicable√InapplicableIII.AnalysisofCoreCompetitiveness1.IncludedinthefirstechelonofthedomestichouseholdpaperindustryTheCompanyisatop-performingenterpriseinthefirstechelonofthedomestichouseholdpaperindustry.Besides,itisthefirstandonlyA-sharelistedhouseholdpaperenterpriseinChinawithproductssoldathomeandabroadincludingSoutheastAsia,theMiddleEast,andEurope.2.ConstantlyoptimizedproductstructureTheCompanyboaststhreemajorbrands,namely,JieRou,Sun,andDolemi.Itscurrentbrandpositioningis:High-endLife,High-gradeJieRou.Itsproductsprimarilyfallintosevenmajorcategories,includingcenterfeedrolls,corelessrolls,facialtissues,tissuehandkerchiefs,wipes,cottontissues,andpersonalcareproducts.Thebrandsaresuperiorinquality,taste,andcategory.Furthermore,theCompanyhascontinuouslyoptimizeditsproductstructureandraisedtheproportionofhigh-endandhigh-grossprofitproductsandnon-rollcategories.Inaddition,ithasstrengthenedthesalesofmajorserieslikeFace,Lotion,andNaturalWood,formulateddistributionstandardsforeachmajorchannel,raisedthemarketshareineachchannel,andcontinuouslyimprovedgrossprofitandprofitability.3.StableandeffectivemanagementteamTheR&D,production,procurement,sales,qualitycontrol,andoperationteamshavesuccessivelyattractedexcellentprofessionalssince2014.Atpresent,theCompanyfeaturesthemostoutstandingR&D,production,andsalesteams.ItsproductR&Dandqualityandmarketingmanagementhavebeeneffectivelyreinforced.ThemanagementteamoftheCompanyhasformulatedlong-termandstrategicplansinlinewithactualsituationoftheCompany,industrydevelopmentlevel,andmarketdemand.Moreover,ithasmadereasonabledecisionsonoperationmanagement,coveringR&D,production,marketing,investment,andfinancing,andeffectivelyimplementedsuchdecision.Theexcellentmanagementteamisthefundamentalguaranteeofmaintainingcompetitivenessandachievingsustainabledevelopmentinthefuture.4.NationwidemarketingnetworkTheCompanyhasbeenbuildingandimprovingitsmarketingnetworksbasedonitskeenandstrategicinsightsandreasonablelayout.TheCompanyhasenhanceditsprofitabilitybyexpandingitschannelsfromasingledealerchannelin2015tosixchannels,namely,GT(generaltradechannels),KA(keyaccountchannels),AFH(awayfromhomechannels),EC(e-commercechannels),RC(newretailchannels),andSC(maternalandinfantchannels).Itscurrentmarketingnetworkcoversmostoftheprefecture-level(andcounty-level)cities.Productsaredirectlysoldtocountiesandthendistributedtotowns.TheCompanyhasadoptedasegmentedandflatmarketoperationmethodandexpandedthedealernetwork.Furthermore,theCompanyhasdevotedmoreresourcestoe-commerceplatforms,suchasTmall,Taobao,JD,Vipshop,Suning,andPinduoduoandbuiltandimprovedthecorrespondingsupplychainsystem.Meanwhile,ithasintensifieditsroutineoperationmanagementandformedaprofessionale-commerceoperationteam.Inaddition,ithasdevelopedanAFHserviceteamforAFHchannelsandcustomerbasestomatchthegrowingAFHmarket.TheCompanyhasconstantlyconsolidateditsmarketbasis,improvedconsumerexperience,andenhancedbrandreputation,Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.11attributabletoarobustsalesnetworkandqualityanddiversifiedproducts,inordertoachievefuturesustainableandstablegrowth.5.NationwidelayoutofproductionbasesTheCompanyhasdevelopedaproductionlayoutcoveringEastChina,SouthChina,WestChina,NorthChina,andCentralChina,throughitssubsidiaries,includingJiangmenC&S,YunfuC&S,SichuanC&S,ZhejiangC&S,HubeiC&S,andTangshanBranch.Thankstothenationwidelayoutofproductionbases,theCompanyhasnarrowedthedistancetocustomers,reducedtransportationcosts,andenhancedtransportationefficiency.6.ProductqualityataninternationallevelTheCompanyhasalwaysregardedproductqualityasitslifelineofsurvivalanddevelopment,sinceitsincorporation.First-classqualityderivesfromfirst-classrawmaterials.RawmaterialsoftheCompanyhavepassedtheISOqualitymanagementsystemcertification.Besidesstrictfeedinspectionprocedures,ithasintroducedHACCPfoodhygieneandsafetymanagementsystemtocontrolthehygieneandqualityofproductsfromthesource.Moreover,itsproductshavepassedISO9001qualitymanagementsystemcertificationwhichisthestrictestdetectingsystemforproductquality.Meanwhile,theCompanyhasobservedinternationallyadvancedqualitymanagementsystemstandardsandutilizedadvancedprocesses,formulas,andcontrolprocedurestoensureeachtechnicalperformanceindicator.7.GoodR&DcapabilitiesAlongwiththeemergenceofmodernlifestyle,therangeofapplicationofhouseholdpaperhasbeenincreasing.Householdpaperhasbecomeadailynecessity.Peopleareenjoyingthecomfortbroughtbysuchproducts.TheCompanyfeaturesacompleteproductdevelopmentsystem.ItsR&DdepartmentsembracestrongandindependentR&Dcapabilitiesandoutstandingformulasandprocesses.Recently,theCompanyhasbeenlaunchingnewbrands,suchasFace,Lotion,NaturalWood,cottontissues,andpersonalcareproducts,andgainedaleadingpositionintheindustry.8.First-classproductionequipmentTheCompanydrivesdevelopmentviatechnology.IthasintroducedadvancedpapermakingandprocessingequipmentfromcountriesandregionslikeAustria,Germany,Italy,Japan,SouthKorea,andTaiwan.AdvancedtechnologyandhighlyautomaticequipmenthavestrengthenedtheCompany'sefficiency,furthersatisfiedtheever-growingmarketdemand,andservedasanunstoppabledrivingforcetodevelopment.9.HighawarenessandtechnologyofenvironmentalprotectionAlongwiththedevelopmentofindustrialization,theconceptofenvironmentalprotectionhasbeendeeplyrootedamongthepeople.TheCompanyhasadheredtotheconceptof"seekinggreenbenefits,fulfillingcorporatesocialresponsibilities"andutilizedadvancedenvironmentalprotectiontechnologytopursueitsobjectiveofenvironmentalprotection.Itsemissions,suchaswastewaterandgas,aresuperiortothenationalstandardsandindustry-leading.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.12SectionIVDiscussionandAnalysisofOperationStatusI.OverviewTheCOVID-19pandemicexertedashort-terminfluenceontheprocurement,production,andsalesofthehouseholdpaperindustryinthefirsthalfof2020.Nevertheless,theCompanyrapidlyrespondedatthebeginningoftheoutbreakandconvertedchallengestoopportunities,byresumingproductionearlyandroutineoperationsatthefastestrate.Meanwhile,theCompanyhasuphelditscorestrategiesandoperationobjectives.Itimprovedresultsandprofitsteadilybyadoptingeffectivemeasures,includingexpandingcategoriesandchannelsandacceleratingmarketingandpromotion.InH12020,itrecordedoperatingincomeofRMB3,616millionwithaYoYincreaseof13.99%andnetprofitattributedtothelistedcompanyofRMB453million,upby64.69%YoY.KeytasksoftheCompanyarereviewedbelow:1.ExpansionofproductcategoriestodrivesalesConsumptionhabitschangedamidthepandemicduringthereportingperiod.TheCompanyquicklyadaptedtotheconsumptiontrend,continuouslyenricheditschannels,launchednewproductslikefacialmasks,disinfectantwipes,handsanitizers,andmouthwashtoeffectivelyraiseitsbrandeffectandseizedanotherprofitgrowthpoint.Favorablesalesresultsduringthereportingperiodpromotedthecontinuousimprovementintheoperatingresults.2.Constantoptimizationofproductstructure+improvementofchannelstopushsteadygrowthinsalesDuringthereportingperiod,theCompanyacceleratedtointroducenewandkeyproducts,constantlyraisedtheproportionofhigh-grossmarginproducts,andfurtheroptimizeditsproductstructure.Inaddition,itactivelyadaptedtochanges,keptoptimizingitsmarketingsystem,andstimulatedonlineconsumptiongrowthdespitethepandemic.Meanwhile,itinvestedmoreresourcesinthelayoutanddevelopmentofonlinebusinessandexertedgreateffortstoimproveotherchannels.Favorableresultswereachievedinallchannelsduringthereportingperiod.TheCompany'sgrossmargininhouseholdpaperreached46.19%,makingitthetopenterpriseinthedomestichouseholdpaperindustry.3.IncreaseingrossmarginthankstothedecreaseininternationalpulppricesThepriceofpulp,themainrawmaterialoftheCompany,declinedduringthereportingperiod.Asaresult,theCompany'sproductioncostsdecreased,whileitsgrossmarginandprofitabilityincreased.4.Employeeenthusiasmboostedbythefirstreleaseperiodofunlocking/exercisingofthefirstlygrantedportionofthestockincentiveplanDuringthereportingperiod,theCompanysuccessfullyunlockedtherestrictedstockinthefirstunlockperiodandexercisedthestockoptioninthefirstexerciseperiodofthefirstlygrantedportionofthe2018StockOptionandRestrictedStockIncentivePlan.5,593,428sharesoftherestrictedstockwereunlocked,whilethenumberofvestingstockoptionswas3,431,505shares.EmployeesenjoyedthedevelopmentdividendsoftheCompanythroughtheunlock/exercise.Theyweremotivatedtoaddvaluetowork.Theunlock/exerciselaidasolidfoundationforthesustainableandstabledevelopmentoftheCompany.5.Fulfillmentofcorporatesocialresponsibilitiesanddemonstratingthecorporatecultureasatop-performingenterpriseAmidthepandemic,theCompany,asaleadingenterpriseinthehouseholdpaperindustry,vigorouslyfulfilleditscorporatesocialresponsibilitiesandquicklydonatedRMB10.80millionincashanddisinfectantwipesandotherhouseholdpaperproductsworthRMB500,000tosupportFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.13pandemicpreventionandcontrol.Moreover,itcontributedtofightingagainstthepandemicbydonatingoveronemillionpiecesofsurgicalmasksandover5,000padsforwomentofront-linemedicalinstitutions.II.AnalysisofMainBusinessesOverviewSee"I.Overview"in"DiscussionandAnalysisofOperationStatus"fordetails.YoYchangesinmainfinancialdataUnit:RMBCurrentreportingperiodSameperiodlastyearYoYchangesReasonofchangeOperatingincome3,616,201,399.803,172,389,026.9613.99%Operatingcost1,931,406,918.162,008,336,231.02-3.83%Sellingexpenses848,071,082.60607,769,281.4939.54%SellingexpensesrosebyRMB240,301,801.11or39.54%duringthereportingperiodfromthesameperiodlastyear,mainlybecause:First,thesalesrevenueincreased.Second,theCompanykeptraisingitsmarketinput,exertedgreateffortsforpromotion,andexpandedthesalesnetwork.Administrativeexpenses185,701,854.01126,787,650.2246.47%Duringthereportingperiod,managementcostswereupbyRMB58,914,203.79or46.47%YoY,mainlyduetotheincreaseinexpensesincurredfromshare-basedpayment,payroll,anddepreciationandamortizationexpenses.Financeexpenses-1,022,002.2314,824,423.41-106.89%Duringthereportingperiod,managementcostsweredownbyRMB15,846,425.64or106.89%YoY,mainlyduetothedecreaseinbankinterestexpensesandincreaseinexchangegain.Incometaxes85,783,253.9263,045,961.2336.06%Duringthereportingperiod,managementcostswereupbyRMB22,737,292.694or36.06%YoY,mainlyduetotheincreaseintotalprofit.InvestmentinR&D90,860,828.2464,040,654.8741.88%Duringthereportingperiod,managementcostswereupbyRMB26,820,173.37or41.88%YoY,mainlyduetotheincreaseinR&Dexpenses.Netcashflowsfromoperatingactivities504,558,588.33734,985,638.36-31.35%Netcashflowsfromoperatingactivities:Duringthereportingperiod,itdeclinedbyRMB230,427,050.03or31.35%fromayearearlier,primarilyattributabletoincreasedpaymentformaterialsandtaxes.Netcashflowsfrominvestingactivities-241,861,919.70-357,270,668.0832.30%Netcashflowsfrominvestingactivities:Duringthereportingperiod,itincreasedbyRMB115,408,748.38or32.30%fromayearearlier,primarilyattributabletodecreasedpaymentforengineeringequipment.Netcashflowsfromfinancingactivities-45,815,658.83-173,684,376.5173.62%Netcashflowsfromfinancingactivities:Duringthereportingperiod,itincreasedbyRMB127,868,717.68or73.62%fromayearearlier,primarilyattributabletoincreasedFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.14paymentforloanproceedsreceivedanddecreasedrepaymentforloans.Netincreaseincashandcashequivalents220,436,993.67203,573,288.778.28%AnymajorchangesintheprofitcompositionorprofitsourceoftheCompanyduringthereportingperiod□Applicable√InapplicableNomajorchangeoccurredintheprofitcompositionorprofitsourceoftheCompanyduringthereportingperiod.CompositionofoperatingincomeUnit:RMBCurrentreportingperiodSameperiodlastyearYoYchangesAmountProportionagainstoperatingincomeAmountProportionagainstoperatingincomeTotaloperatingincome3,616,201,399.80100%3,172,389,026.96100%13.99%ByIndustryHouseholdpaper3,533,490,254.9197.71%3,117,352,958.1998.27%13.35%Personalcare67,214,587.031.86%419,218.910.01%15,933.29%Others15,496,557.860.43%54,616,849.861.72%-71.63%ByProductsFinishedproducts3,595,014,915.9999.41%3,103,060,788.6497.82%15.85%Semi-finishedproducts5,689,925.950.16%14,711,388.460.46%-61.32%Others15,496,557.860.43%54,616,849.861.72%-71.63%ByRegionsChinesemainland3,522,252,149.3697.40%3,104,647,040.2997.86%13.45%Overseas93,949,250.442.60%67,741,986.672.14%38.69%Industries,products,orregionsthataccountedforover10%oftheCompany'soperatingincomeoroperatingprofit√Applicable□InapplicableUnit:RMBOperatingincomeOperatingcostGrossprofitmarginYoYchangesinoperatingincomeYoYchangesinoperatingcostYoYchangesingrossmarginByIndustryHouseholdpaper3,533,490,254.911,901,531,921.1646.19%13.35%-2.85%8.98%ByProductsFinishedproducts3,595,014,915.991,913,451,891.5246.77%15.85%-1.57%9.42%Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.15ByRegionsChinesemainland3,522,252,149.361,883,003,659.1746.54%13.45%-3.82%9.60%Forchangesinthestatisticalcaliberforthemainbusinessdataduringthereportingperiod,theCompanywassubjecttothemainbusinessdataforthecurrentperiodaccordingtotheyear-endstatisticalcaliber.□Applicable√InapplicableExplanationfor+30%deviationYOYofrelevantdata□Applicable√InapplicableIII.AnalysisofNon-mainBusinesses√Applicable□InapplicableUnit:RMBAmountProportionagainsttotalprofitCauseIsitconsistentlyappliedInvestmentincome2,287,274.870.42%Returnsonprincipal-protectedwealthmanagementproductsatmaturityandreverserepooftreasurybondsNoProfitandlossfromchangesinfairvalue0.000.00%Assetimpairment-850,381.40-0.16%ProvisionforimpairmentofinventoriesNoNon-operatingincome3,169,241.160.59%Governmentgrants,incomefromfineandcompensation,andothersNoNon-operatingexpense13,240,183.162.46%ExternaldonationsandothersNoIV.AnalysisofAssetsandLiabilities1.SignificantchangesinthecompositionofassetsUnit:RMBEndofthecurrentreportingperiodEndofthesamereportingperiodlastyearChangesinproportionExplanationAmountProportionagainsttotalassetsAmountProportionagainsttotalassetsMonetaryfunds933,473,976.9714.12%634,450,928.3611.34%2.78%MonetaryfundsrosebyRMB299,023,048.61or47.13%attheendofthecurrentreportingperiodfromayearearlier,mainlyowingtotheincreaseinthebalanceatthebeginningofthecurrentreportfromthesameperiodlastyear.Accounts822,077,129.8112.43%726,655,599.9312.99%-0.56%Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.16receivableInventory1,178,918,505.3917.83%888,996,071.1615.89%1.94%MonetaryfundsrosebyRMB289,922,434.23or32.61%attheendofthecurrentreportingperiodfromayearearlier,mainlyowingtotheincreaseinrawmaterialsofthecurrentreportfromthesameperiodlastyear.Investmentproperty35,336,048.690.53%34,753,136.680.62%-0.09%Long-termequityinvestment0.000.00%0.000.00%0.00%Propertyandequipment2,907,864,726.8643.97%2,633,132,265.1847.06%-3.09%Constructionworkinprogress22,256,470.460.34%296,753,901.645.30%-4.96%MonetaryfundsdecreasedbyRMB274,497,431.18or92.50%attheendofthecurrentreportingperiodfromayearearlier,mainlyowingtothedecreaseinconstructioninprogressofthecurrentreportfromthesameperiodlastyear.Short-termloans161,860,368.502.45%215,135,598.863.84%-1.39%Long-termloans0.000.00%24,000,000.000.43%-0.43%MonetaryfundsdecreasedbyRMB24,000,000.00or100.00%attheendofthecurrentreportingperiodfromayearearlier,mainlyowingtoprepaymentoflong-termborrowingsofthecurrentreportfromthesameperiodlastyear.2.Assetsandliabilitiesmeasuredatfairvalue□Applicable√Inapplicable3.RestrictionofmainassetsandrightsasattheendofthereportingperiodItemClosingbookvalueoftheperiod(RMB)ReasonforrestrictionMonetaryfunds37,040,130.33Marginsforletterofcreditandnoteswereissued.Total37,040,130.33Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.17V.AnalysisofInvestment1.Overview√Applicable□InapplicableInvestmentamountduringthereportingperiod(RMB)Investmentamountofpreviousyear(RMB)Changes401,314,982.57358,177,083.7912.04%2.Majorequityinvestmentduringthereportingperiod□Applicable√Inapplicable3.Majornon-equityinvestmentduringthereportingperiod□Applicable√Inapplicable4.Financialassetsmeasuredatfairvalue□Applicable√Inapplicable5.Financialassetinvestment(1)Securityinvestment□Applicable√InapplicableTheCompanydidnotinvestinsecuritiesduringthereportingperiod.(2)Derivativeinvestment□Applicable√InapplicableTheCompanydidnotinvestinderivativesduringthereportingperiod.6.Utilizationofraisedfunds□Applicable√InapplicableNoraisedfundswereusedbytheCompanyduringthereportingperiod.7.Descriptionofkeyprojectsnotinvestedwithraisedfunds√Applicable□InapplicableUnit:RMB10,000ItemnamePlannedinvestmentamountInvestmentamountinthecurrentreportingperiodActualaccumulativeinvestmentamountasattheendofthereportingperiodProjectphaseProjectincomeDateofdisclosure(ifany)Indexofdisclosure(ifany)TangshanC&SProject32,7001,292.577,563.9223.13%November16,20162016-50HubeiC&SProject133,0209,460.0265,868.3349.52%34,483.98December31,20162016-59Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.18Total165,72010,752.5973,432.25--------VI.MajorAssetandEquitySales1.Salesofmajorassets□Applicable√InapplicableTheCompanydidnotsellmajorassetsduringthereportingperiod.2.Salesofmajorequity□Applicable√InapplicableVII.AnalysisofMainHoldingandJoint-stockCompanies√Applicable□InapplicableMainsubsidiariesandjoint-stockcompaniesaffectingmorethan10%oftheCompany'snetprofitFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.19Unit:RMBCompanynameCompanytypeMainbusinessesRegisteredcapitalTotalassetsNetassetsOperatingincomeOperatingprofitNetprofitJiangmenC&SSubsidiaryR&D,production,andsales(includingonlinesales):Householdpaper,maternalandinfantproducts,cosmetics,wipes,non-wovenproducts,dailynecessities,andcleaningsupplies;andsales(includingonlinesales)ofClassIandIImedicaldevices.(BusinessactivitiesabovearenotrestrictedbytheSpecialAdministrativeMeasuresfortheAccessofForeignInvestment)(Businessactivitiessubjecttoapprovalinaccordancewithlawsshallnotbecarriedoutuntilapprovalfromcompetentauthoritieshasbeenobtained.))RMB345,985,0311,701,542,683.921,391,521,284.56697,501,626.59109,252,057.2693,179,032.72YunfuC&SSubsidiaryR&D,production,wholesale,retailandonlinesales:High-endhouseholdpaperseriesproducts,hygieneproducts,maternalandinfantproducts,dailynecessities,cosmetics,medicaldevices,hygienematerials,non-wovenproducts,polymermaterialsandproducts,dailygroceries,andsterilizationsupplies(excludinghazardouschemicals);importandexportofgoodsortechnologies(excludingtheimportandexportofgoodsandRMB650million2,008,061,450.931,195,306,900.301,384,931,367.57205,801,295.96184,345,385.92Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.20technologiesprohibitedbythecountryorsubjecttoadministrativeapproval);andwarehouseservices(limitedtowarehousesqualifiedinfireprotectionwithouthazardouschemicals).(Businessactivitiessubjecttoapprovalinaccordancewithlawsshallnotbecarriedoutuntilapprovalfromcompetentauthoritieshasbeenobtained.))SichuanC&SSubsidiaryR&D,production,processing,andsalesofhygieneproducts[tissues(paper)],babyproducts,dailynecessities,non-wovenproducts,andfemininehygieneproducts;exportofself-producedproductsandimportofnecessarymechanicalequipment,partsandaccessories,andrawandauxiliarymaterials;andsalesofdailychemicalproducts,articlesofdailyuse,medicaldevices,medicalsupplies,andsterilizationsupplies(excludinghazardouschemicals)[Businessactivitiessubjecttoapprovalinaccordancewithlawsshallnotbecarriedoutuntilapprovalfromcompetentauthoritieshasbeenobtained.]]RMB100million1,089,874,387.94748,997,486.20857,316,535.93102,940,900.2186,792,873.64Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.21Acquisitionanddisposalofsubsidiariesduringthereportingperiod□Applicable√InapplicableDescriptionofmainholdingandjoint-stockcompaniesNoneVIII.StructuredEntityControlledbytheCompany□Applicable√InapplicableIX.PredictionofOperatingResultsfromJanuarytoSeptember2019Warningandexplanationofthepredicationthattheaccumulatednetprofitfromthebeginningoftheyeartotheendofthenextreportingperiodmaybenegativeortherewillbelargechangescomparedtothecorrespondingperiodofpreviousyear□Applicable√InapplicableX.RisksandCountermeasures1.RiskoflargefluctuationsinpulppricesTheCompanyfeaturesaprofessionalprocurementteamthatcollectsprofessionaldata,assessesthefuturetrendofpulpprices.Moreover,theteamdynamicallyadjuststheinventoryofpulptoensurenormalproductionandrespondtotheinternationalpulpmarket.Atpresent,theCompanyhasdevelopedaglobalprocurementnetwork,coveringmultiplecountries,suchasFinland,Canada,Chile,Brazil,andChina.Besides,itensuresstableprocurementofrawmaterialsbysigninglong-termsupplycontractswithlarge-scalepulpsuppliersembracinglargeproductionscale,abundantforestresources,andadvancedproductiontechnologies.2.Currencyrisk(1)TheCompanycloselyobservesthechangesintheforeignexchangemarket.Additionally,itoffsetsexchangelossesarisingfromtheRMBdevaluationorbi-directionalvolatilitybyadjustingtheassetandliabilitystructureofforeigncurrenciesandreducingthetotalliabilitiesofforeigncurrencies.(2)TheCompanyhaskepttheaccountofforeigncurrencytransactionsatthesellingratesinceOctober2015inaccordancewithitsactualdemandandinlinewithforeignexchangerequirements.Itpurchasesforeigncurrenciesatanappropriateratetorepayloans.(3)TheCompanyoffsetsandavoidscurrencyriskthroughcentralizedmanagementofforeignexchangefunds,offsettingbasedonpurchasingandpayment,andhedgingbasedonchangesintheforeignexchangemarketanditsactualdevelopment.Inaddition,itutilizesriskaversioninstrumentslikehedgingtoaddresscurrencyriskexposure.Itreasonablymanagesrisksnotforthesakeofspeculation.3.SafeproductionriskTheCompanyhasformulatedstrictfireprotectionpoliciesforthewarehousemanagementofrawmaterialsandfinishedproductsandtheplacementandtransferofsemi-finishedproducts,equippedworkshopsandwarehouseswithadequatefireprotectionequipment,andboughtfullinsuranceforriskyproperties.Relevantresponsiblepersonsregularlyinspectfireprotectionequipmenttoensuretheyareeffective.Moreover,theCompanyofferedsafetyeducationandtrainingtoitsemployeestoavoidpossiblerisksinproductiontothemaximumextent.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.22SectionVImportantEventsI.AnnualandExtraordinaryGeneralMeetingsduringtheReportingPeriod1.GeneralmeetingofshareholdersduringthereportingperiodSessionsofmeetingsTypesofmeetingsProportionofattendedinvestorsDateofmeetingDateofdisclosureIndexofdisclosure2020FirstExtraordinaryGeneralMeetingExtraordinarygeneralmeetingofshareholders59.84%March13,2020March14,2020AnnouncementonResolutionsof2020FirstExtraordinaryGeneralMeetingofShareholders(AnnouncementNo.:2020-15).SeeSecuritiesTimes(STCN,),SecuritiesDaily(),ChinaSecuritiesJournal(),ShanghaiSecuritiesNews(),andCNINFO()fordetails.2019AnnualGeneralMeetingofShareholdersAnnualGeneralMeeting55.09%May21,2020May22,2020AnnouncementonResolutionsof2019AnnualGeneralMeetingofShareholders(AnnouncementNo.:2020-34).SeeSecuritiesTimes(STCN,),SecuritiesDaily(),ChinaSecuritiesJournal(),ShanghaiSecuritiesNews(),andCNINFO()fordetails.2020SecondExtraordinaryGeneralMeetingofShareholdersExtraordinarygeneralmeetingofshareholders53.75%June15,2020June16,2020AnnouncementonResolutionsof2020SecondExtraordinaryGeneralMeetingofShareholders(AnnouncementNo.:2020-53).SeeSecuritiesTimesFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.23(STCN,),SecuritiesDaily(),ChinaSecuritiesJournal(),ShanghaiSecuritiesNews(),andCNINFO()fordetails.2.Requestforextraordinarygeneralmeetingsbypreferenceshareholderswithrecoveredvotingrights□Applicable√InapplicableII.ProfitDistributionandConversionofCapitalReservetoShareCapitalduringtheReportingPeriod□Applicable√InapplicableTheCompanyplansnottodistributecashorsharedividendsorconvertcapitalreservetosharecapitalsemi-annually.III.CommitmentsFulfilledbytheDeFactoController,Shareholders,RelatedParties,andAcquirersoftheCompanyduringtheReportingPeriodandCommitmentsnotFulfilledbyThemasattheEndoftheReportingPeriod√Applicable□InapplicableCommitmentsCommittedbyTypeofcommitmentDescriptionTimeofcommitmentTermofcommitmentFulfillmentofcommitmentSharereformcommitmentCommitmentsintheacquisitionreportortheequitychangereportCommitmentmadeduringassetrestructuringCommitmentsmadeduringtheinitialpublicofferingorrefinancingDirectors,supervisors,andseniorexecutivesDirectors,supervisors,andseniorexecutivespromisethattheywillnottransfermorethan25%ofthetotalsharesoftheCompanytheyholdeachyearduringthetermofoffice.Iftheyleaveofficebeforetheexpiryofthetermofoffice,theypromisethattheywillnotNovember25,2010Long-termStrictlyobservedFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.24transfermorethan25%ofthetotalsharesoftheCompanytheyholdeachyearwithinthetermofofficeandwithinsixmonthsafterthetermofofficeexpires(whichisagreedwhentheytakeoffice).Moreover,theywillnottransfertheirsharesoftheCompanywithinhalfayearaftertheyleaveoffice.EquityincentivecommitmentDaiZhenji,DongYe,andYeLongfangTheypromisenottosellalltheirshares(includingsharesobtainedfromexerciseandothershares)withinsixmonthsaftertheendoftheexerciseofthelaststockoptions.Besides,theywillstrictlyconformtostocktrading-relatedlawsandregulations.June5,2020DuringtheimplementationoftheequityincentiveplanStrictlyobservedOthercommitmentstomediumandsmallshareholdersDengGuanbiao,DengGuanjie,DengYingzhong,andGuangdongZhongshunPaperGroupCo.,Ltd.NocompetitionwiththeCompanyinthesamebusinessJanuary1,2009Long-termStrictlyobservedC&SPaperCo.,Ltd.Cashdividendsshallbedistributedwhendividendconditionsaremet.TheBoardofDirectorsoftheCompanyshallcomprehensivelyconsiderindustrycharacteristics,developmentstage,businessmodel,profitability,andmajorcapitalspending(ifany),distinguishthefollowingcircumstances,andfollowtheproceduresstipulatedintheArticlesofAssociation,andproposedifferentiatedcashdividendpolicies.December6,2019Long-termStrictlyobservedWhethercommitmentsarefulfilledontimeYesIV.EngagementandDismissalofanAccountingFirmWhetherthesemi-annualfinancialreporthasbeenaudited□Yes√NoThesemi-annualreporthasnotbeenauditedyet.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.25V.ExplanationbytheBoardofDirectorsandtheBoardofSupervisorsofthe"Non-standardAuditReport"fortheReportingPeriodIssuedbytheAccountingFirm□Applicable√InapplicableVI.ExplanationbytheBoardofDirectorsofthe"Non-standardAuditReport"forLastYear□Applicable√InapplicableVII.BankruptcyRestructuring-relatedMatters□Applicable√InapplicableNobankruptcyrestructuring-relatedmattersoftheCompanyhappenedduringthereportingperiod.VIII.LitigationsMateriallitigationsandarbitrations□Applicable√InapplicableTheCompanydidnothavemajorlitigationsorarbitrationsduringthereportingperiod.Otherlitigations√Applicable□InapplicableBasicinformationonlitigations(arbitrations)Amountinvolved(RMB10,000)WhetherprojectedliabilitieswereincurredLitigation(arbitration)progressHearingresultsandinfluencesoflitigations(arbitrations)Executionofjudgmentoflitigations(arbitrations)ZhongshanTradingsuedShenzhenYongxinghuaTradingCo.,Ltd.,Feng,&Liangforasalescontractdispute660.374109NoThefirstinstanceruledthatZhongshanTradingwonthecase.Thesecondinstancehasbeenheard.AndZhongshanTradingiswaitingfortheverdict.Theverdictofsecondinstancehasnotbeenmade.NotapplicableZhongshanTradingsuedGuangzhouYingjingTradeCo.,Ltd.forasalescontractdispute31.3604NoThefirstinstancesupportedalltheclaimsbyZhongshanTrading.Theverdictoffirstinstancecameintoforce.Thefirstroundofexecutionended.Nopropertieshavebeenrecovered.ZhongshanTradingsuedShaoyangJiaheTradingCo.,Ltd.forasalescontractdispute33.638552NoThefirstinstancesupportedalltheclaimsbyZhongshanTrading.Theverdictoffirstinstancecameintoforce.ZhongshanTradinghasappliedforexecution.OngoingZhongshanTradingsuedShanghaiTongliTradingCo.,Ltd.andeightnaturalpersondefendantsincludingLiuforasales2932.009863No(Note:WhetherprojectedliabilitieswillbeincurredcannotbeThefirstinstanceruledthatZhongshanTradingwonthecase.ThesecondinstanceTheverdictofsecondinstancehasnotbeenmade.NotapplicableFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.26contractdisputedeterminedpriortotheverdict.)hasbeenheard.AndZhongshanTradingiswaitingfortheverdict.YinsuedC&Sforadisputeovertherighttohealth30.247331No(Note:Whetherprojectedliabilitieswillbeincurredcannotbedeterminedpriortotheverdict.)ThefirstinstanceruledthatZhongshanTradingwonthecase.Thesecondinstancehasnotbeenheard.AndZhongshanTradingiswaitingfortheverdict.Theverdictofsecondinstancehasnotbeenmade.NotapplicableSichuanHuaXiDaChengConstructionCo.,Ltd.ZhuhaiBranchsuedSichuanLuxianNo.9ConstructionEngineeringCo.,Ltd.andYunfuC&SforacontractdisputeovertheYunfuC&SconstructionprojectTheoriginalclaimwasRMB7,516,032.39,whichwaschangedtoRMB9,124,489.89duringthefirstinstance.YesThecasewasmediatedandclosedinthefirstinstance.Allpartiesofthelawsuitfulfilledtheirrespectiveobligationofsettlementoftherelevantprojectcostsagreedinthecontract.Thepaperofcivilmediationhasbeenfulfilled.GuangdongWeihongPlasticsTechnologyCo.,Ltd.suedHubeiC&Sforacontractorcontractdispute225.9055No(Note:Whetherprojectedliabilitieswillbeincurredcannotbedeterminedpriortotheverdict.)ThefirstinstanceruledthatZhongshanTradingwonthecase.Thesecondinstancehasnotbeenheard.AndZhongshanTradingiswaitingfortheverdict.Theverdictofsecondinstancehasnotbeenmade.NotapplicableSichuanC&SsuedXi'anMinshengDepartmentStoreManagementCo.,Ltd.foracontractdispute5.651847NoThecasewasmediatedandclosedinthefirstinstance.Xi'anMinshenghasnotfulfilledtherepaymentobligationinlinewiththepaperofcivilmediation.SichuanC&Sisapplyingforlegalenforcement.ZhongshanTradingsuedGuangzhouJvSeMaiKeInternetServiceCo.,Ltd.forasalescontractdispute28.554681NoThefirstinstanceisbeingheard.ZhongshanTradingiswaitingforthecourtsessiontoopen.Theverdictoffirstinstancehasnotbeenmade.NotapplicableFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.27XiaoganC&SsuedWuhanXinchengTongdaTradingCo.,Ltd.forasalescontractdispute525.162529NoThefirstinstanceisbeingheard.ZhongshanTradingiswaitingforthecourtsessiontoopen.Theverdictoffirstinstancehasnotbeenmade.NotapplicableIX.DoubtsfromMedia□Applicable√InapplicableTheCompanydidnothaveanymattersthatweregenerallydoubtedbymediaduringthereportingperiod.X.PenaltiesandRemediation□Applicable√InapplicableNopenaltiesandremediationoftheCompanyoccurredduringthereportingperiod.XI.IntegrityRecordsoftheCompanyanditsControllingShareholderandDeFactoController□Applicable√InapplicableXII.ImplementationofStockIncentivePlan,EmployeeStockOwnershipPlan,andOtherEmployeeIncentivesoftheCompany√Applicable□Inapplicable1.2018stockoptionandrestrictedstockincentiveplanOnDecember18,2018,attheninthmeetingofthefourthBoardofDirectorsandtheseventhmeetingofthefourthBoardofSupervisorsoftheCompany,2018StockOptionandRestrictedStockIncentivePlanofC&SPaperCo.,Ltd.(Draft)anditssummary,ProposalontheAppraisalManagementMeasuresoftheImplementationoftheCompany'sRestrictedStockIncentivePlan,andProposalonRequestingtheGeneralMeetingofShareholderstoAuthorizetheBoardofDirectorstoHandleMattersRelatedtoRestrictedStockIncentivePlan,werereviewedandapprovedrespectively.TheindependentdirectorsoftheCompanyissuedanindependentopiniontoagreethattheequityincentiveplanwasconducivetotheCompany'ssustainabledevelopmentandtherewasnosituationthatharmstheCompanyandshareholders.TheBoardofSupervisorsoftheCompanyverifiedthelistofincentiverecipientsoftheCompany'sequityincentiveplan.DetailscanbefoundinthefollowingdocumentspublishedonDecember19,2018onthedesignatedinformationdisclosuremediaincludingSecuritiesTimes(STCN,),ChinaSecuritiesJournal(),SecuritiesDaily(),ShanghaiSecuritiesNews()andJuchaoInformationWebsite(:2018StockOptionandRestrictedStockIncentivePlan(Draft),Summaryof2018StockOptionandRestrictedStockIncentivePlan(Draft),ListofIncentiveRecipientsoftheEquityIncentivePlan,AppraisalManagementMeasuresoftheImplementationof2018StockOptionandRestrictedStockIncentivePlan,AnnouncementonResolutionsoftheNinthMeetingoftheFourthBoardofDirectors(AnnouncementNo.2018-89)andAnnouncementonResolutionsoftheSeventhMeetingoftheFourthBoardofSupervisors(AnnouncementNo.2018-90).Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.28OnJanuary8,2019,attheCompany'sfirstextraordinarygeneralmeetingof2019,2018StockOptionandRestrictedStockIncentivePlanofC&SPaperCo.,Ltd.(Draft)anditssummary,AppraisalManagementMeasuresoftheImplementationof2018StockOptionandRestrictedStockIncentivePlanofC&SPaperCo.,Ltd.,andProposalonRequestingtheGeneralMeetingofShareholderstoAuthorizetheBoardofDirectorstoHandleMattersRelatedtotheCompany's2018StockOptionandRestrictedStockIncentivePlan,werereviewedandapproved.TheBoardofDirectorswasauthorizedtodeterminethegrantdateoftheincentiveplan,grantstockoptionsorrestrictedstockstotheincentiverecipientswhentheincentiverecipientsmeettheconditions,andhandleallmattersnecessaryforgrantingequityincentives.DetailscanbefoundinAnnouncementonResolutionsoftheFirstExtraordinaryGeneralMeetingof2019(AnnouncementNo.2019-02),publishedonJanuary9,2019onthedesignatedinformationdisclosuremediaincludingSecuritiesTimes(STCN,),ChinaSecuritiesJournal(),SecuritiesDaily(),ShanghaiSecuritiesNews()andJuchaoInformationWebsite(.OnMarch1,2019,atthetenthmeetingofthefourthBoardofDirectorsandtheeighthmeetingofthefourthBoardofSupervisorsoftheCompany,ProposalonAdjustingMattersRelatedto2018StockOptionandRestrictedStockIncentivePlanandProposalonGrantingStockOptionsandRestrictedStockstoIncentiveRecipients,werereviewedandapprovedrespectively.TheCompany'sBoardofDirectorsadjustedthegranteesandthenumberofstockoptionsgrantedof2018StockOptionandRestrictedStockIncentivePlaninconformitywiththeauthorizationofthegeneralmeetingofshareholders,anddeterminedthefirstgrantdateofstockoptionsandrestrictedstocksasMarch1,2019.13,734,500stockoptionsweregrantedto3,118eligibleincentiverecipients,and19,675,500restrictedstocksweregrantedto569incentiverecipients.DetailscanbefoundinthefollowingdocumentspublishedonMarch2,2019onthedesignatedinformationdisclosuremediaincludingSecuritiesTimes(STCN,),ChinaSecuritiesJournal(),SecuritiesDaily(),ShanghaiSecuritiesNews()andJuchaoInformationWebsite(:AnnouncementonResolutionsoftheTenthMeetingoftheFourthBoardofDirectors(AnnouncementNo.:2019-09),AnnouncementonAdjustingMattersRelatedto2018StockOptionandRestrictedStockIncentivePlan(AnnouncementNo.:2019-11),AnnouncementonGrantingStockOptionsandRestrictedStockstoIncentiveRecipients(AnnouncementNo.2019-12),ListofIncentiveRecipientsoftheEquityIncentivePlan(GrantDate),andLegalOpinionofKingsonLawFirmontheAdjustmentandFirstGrantingoftheCompany's2018StockOptionandRestrictedStockIncentivePlan.OnSeptember11,2019,atthe16thmeetingofthefourthBoardofDirectorsandthe14thmeetingofthefourthBoardofSupervisorsoftheCompany,ProposalonAdjustingMattersRelatedto2018StockOptionandRestrictedStockIncentivePlanandProposalonGrantingReservedStockOptionsandRestrictedStockstoIncentiveRecipients,werereviewedandapproved.TheBoardofDirectorsoftheCompanyadjustedthenumberofstockoptionsreservedintheincentiveplanfrom2.5millionto2.4millioninconformityoftheauthorizationofthegeneralmeetingofshareholders.Anditwasscheduledtogrant2.4millionreservedstockoptionsto114eligibleincentiverecipientsand3.5millionreservedrestrictedstocksharesto64incentiverecipientsonSeptember11,2019.DetailscanbefoundinthefollowingdocumentspublishedonSeptember12,2019onthedesignatedinformationdisclosuremediaincludingSecuritiesTimes(STCN,),ChinaSecuritiesJournal(),SecuritiesDaily(),ShanghaiSecuritiesNews()andCNINFO(:AnnouncementonResolutionsofthe16thMeetingoftheFourthBoardofDirectors(AnnouncementNo.:2019-61),AnnouncementonAdjustingMattersRelatedto2018StockOptionandRestrictedStockIncentivePlan(AnnouncementNo.:2019-64),AnnouncementonGrantingReservedStockOptionsandRestrictedStockstoIncentiveRecipients(AnnouncementNo.2019-65),ListofIncentiveRecipientsoftheFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.29EquityIncentivePlan(GrantDate),andLegalOpinionofKingsonLawFirmontheCompany'sAdjustmentof2018StockOptionandRestrictedStockIncentivePlanandtheGrantingofReservedParts.OnOctober28,2019,theregistrationforthegrantofreservedpartsof2018StockOptionandRestrictedStockIncentivePlanwascompleted.ThereservedstockoptionsshallberegisteredonOctober30,2019,andthereservedrestrictedstocksshallbelistedonOctober30,2019.OnMay21,2020,atthe23rdmeetingofthefourthBoardofDirectorsandthe19thmeetingofthefourthBoardofSupervisors,ProposalontheAchievementofUnlockConditionsoftheFirstUnlockPeriodofRestrictedStockfortheFirstTimeundertheCompany's2018StockOptionandRestrictedStockIncentivePlan,ProposalontheAchievementofExerciseConditionsoftheFirstExercisePeriodofStockOptionfortheFirstTimeundertheCompany's2018StockOptionandRestrictedStockIncentivePlan,ProposalontheAchievementofExerciseConditionsoftheFirstExercisePeriodofStockOptionfortheFirstTimeundertheCompany's2018StockOptionandRestrictedStockIncentivePlan,andProposalontheRepurchaseandDeregistrationofPartialRestrictedStockfortheFirstTimeundertheCompany's2018StockOptionandRestrictedStockIncentivePlanwerereviewedandapproved.InconformitywithDraftof2018StockOptionandRestrictedStockIncentivePlan,theBoardofDirectorsconsideredthatthefirstunlock/exerciseperiodunlock/exerciseconditionsoftherestrictedstock/stockoptiongrantedforthefirsttimehadbeenfulfilled.Therewere533holdersofrestrictedstocksmeetingtheunlockconditions,andthenumberofstocksthatcouldbeunlockedwas5,593,428,accountingfor0.43%oftheCompany'stotalsharecapital;Therewere2,522holdersofstockoptionsmeetingtheexerciseconditions,andthenumberofoptionsthatcouldbeexercisedwas3,431,505,accountingfor0.26%oftheCompany'stotalsharecapital.Inaddition,atotalof802,722restrictedstocksof241incentiverecipientsthatdidnotmeettheunlockconditionswererepurchasedandderegistered.Atotalof2,110,545stockoptionsof1,594incentivesubjectswhodidnotmeettheexerciseconditionswerecanceled.DetailscanbefoundintherelevantannouncementspublishedonMay22,2020onthedesignatedinformationdisclosuremediaincludingSecuritiesTimes(STCN,),ChinaSecuritiesJournal(),SecuritiesDaily(),ShanghaiSecuritiesNewsandCNINFO(.OnJune15,2020,theCompanywasintheprocessofcompletingthederegistrationofthepartialstockoptionsgrantedforthefirsttimethathadbeengrantedbutnotexercised.PleasecontinuetopayattentiontotheCompany'sinformationdisclosureforsubsequentimplementationprogressorchanges.2.PhaseIIemployeestockownershipplanAttheCompany's14thmeetingofthefourthBoardofDirectorsonJuly9,2019,andtheCompany'ssecondextraordinarygeneralmeetingof2019onJuly26,2019,ProposalonPhaseIIEmployeeStockOwnershipPlan(Draft)anditssummary(hereinafterreferredtoas"PhaseIIEmployeeStockOwnershipPlan")wasreviewedandapproved.DetailscanbefoundintherelevantannouncementspublishedonthedesignatedinformationdisclosuremediaincludingCNINFO(),ChinaSecuritiesJournal(),ShanghaiSecuritiesNews(),SecuritiesTimes(STCN,)andSecuritiesDaily().OnNovember11,2019,atthe18thmeetingofthefourthBoardofDirectorsoftheCompany,ProposalonRevisingPhaseIIEmployeeStockOwnershipPlan(Draft)anditssummarywasreviewedandapproved.TheCompanyplannedtorevisesomeclausesinPhaseIIEmployeeStockOwnershipPlan(Draft)anditssummaryinconformitywiththemarketallocationsituation.DetailsFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.30canbefoundintherelevantannouncementspublishedonthedesignatedinformationdisclosuremediaincludingCNINFO(),ChinaSecuritiesJournal(),ShanghaiSecuritiesNews(),SecuritiesTimes(STCN,)andSecuritiesDaily().AsatNovember29,2019,alltherepurchasedstocksheldinthe"C&SPaperCo.,Ltd.RepurchaseSpecialSecuritiesAccount"openedbytheCompanyhadbeentransferredtothe"C&SPaperCo.,Ltd.-PhaseIIEmployeeStockOwnershipPlan"specialaccount.DetailscanbefoundinAnnouncementonCompletionofNon-TransactionTransferofPhaseIIEmployeeStockOwnershipPlan(AnnouncementNo.2019-85)publishedonthedesignatedinformationdisclosuremediaincludingCNINFO(),ChinaSecuritiesJournal(),ShanghaiSecuritiesNews(),SecuritiesTimes(STCN,)andSecuritiesDaily().InconformitywithAccountingStandardsforEnterprisesNo.11–Share-basedPaymentsandrelevantapplicationguidelinesandotherdocuments,theCompany'sPhaseIIEmployeeStockOwnershipPlanmeetsthedefinitionofshare-basedpayment,andthetotalshare-basedpaymentexpensesincurredwereRMB56.44million,ofwhichRMB4.7millionwereallocatedin2019,andRMB51.74millionin2020.PleasecontinuetopayattentiontotheCompany'sinformationdisclosureforsubsequentimplementationprogressorchanges.XIII.MaterialRelatedPartyTransaction1.Relatedpartytransactionrelevanttodailyoperations√Applicable□InapplicableFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.31PartyofrelatedpartytransactionConnectedrelationTypeofrelatedpartytransactionContentofrelatedpartytransactionsPricingrulesofrelatedpartytransactionsPriceofrelatedpartytransactionsAmountofrelatedpartytransactions(RMB10,000)ProportionintheamountofsimilartransactionsApprovedtransactionlimit(RMB10,000)WhethertooutstriptheapprovedlimitSettlementofrelatedpartytransactionAvailablemarketpricesforsimilartransactionsDateofdisclosureIndexofdisclosureDengYingzhong,DengGuanbiao,DengGuanjieActualcontrolleroftheCompanyLeasesRentalMarketfairpriceMarketfairprice147.442.17%589.62NoTransfersettlementMarketfairpriceDecember6,20192019-93PengzhouLexiangshenghuoTradingCo.,Ltd.AcompanywheretheseniormanagerYueYong'ssonholdssharesandservesasasupervisorRoutineoperationtransactionSaleofgoodsMarketfairpriceMarketfairprice82.870.02%300NoTransfersettlementMarketfairpriceDecember6,20192019-93SichuanWestLexiangshenghuoTradingCo.,Ltd.AcompanywheretheseniormanagerYueYong'ssonholdssharesandservesasasupervisorRoutineoperationtransactionSaleofgoodsMarketfairpriceMarketfairprice18.080.00%100NoTransfersettlementMarketfairpriceDecember6,20192019-93ChongqingQinyueTradingCo.,Ltd.AcompanywheretheseniormanagerYueYong'sbrotherholdssharesandservesasasupervisorRoutineoperationtransactionSaleofgoodsMarketfairpriceMarketfairprice24.80.01%240NoTransfersettlementMarketfairpriceDecember6,20192019-93GuangdongControllingRoutineSaleofMarketfairMarketfair5.660.002%YesTransferMarketfairFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.32ZhongshunPaperGroupCo.,Ltd.shareholderoperationtransactiongoodspricepricesettlementpriceTotal----278.81--1,229.62----------DetailsofreturnsoflargesalesNotapplicableEstimationofthetotalamountofdailyrelatedpartytransactionsthatwilloccurinthecurrentperiodbycategory,andtheactualperformanceduringthereportingperiod(ifany)TheexcessrelatedpartytransactionamountofRMB56,600istheCompany'sbusinessofsellingmaskproductstorelatedparties,anditisatemporarynewrelatedsalein2020.ItfallswithintheauthorityofthechairmanoftheCompanyandcanbeimplementedwithouttheapprovaloftheBoardofDirectors.Reason(s)foralargedifferencebetweenthetransactionpriceandthemarketreferenceprice(ifapplicable)ExerciseatfairpriceFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.332.Relatedpartytransactionsofacquisitionandsaleofassetsorequity□Applicable√InapplicableDuringthereportingperiod,therewasnorelatedpartytransactionofacquisitionandsaleofassetsorequity.3.Relatedpartytransactionsofjointoutboundinvestment□Applicable√InapplicableDuringthereportingperiod,therewasnorelatedpartytransactionofjointoutboundinvestment.4.Relatedpartytransactionsofcreditor'srightsanddebts√Applicable□InapplicableWhethertherewasnon-operatingrelatedpartytransactionofcreditor'srightsanddebts□Yes√NoDuringthereportingperiod,therewasnonon-operatingrelatedpartytransactionofcreditor'srightsanddebts.5.Othermaterialrelatedpartytransactions□Applicable√InapplicableDuringthereportingperiod,therewasnoothermaterialrelatedpartytransactions.XIV.MisappropriationofFundsforNon-operatingPurposesbyControllingShareholdersandRelatedParties□Applicable√InapplicableDuringthereportingperiod,therewasnomisappropriationoffundsfornon-operatingpurposesbycontrollingshareholdersandrelatedparties.XV.MaterialContractsandTheirPerformance1.Custody,contractandlease(1)Custody□Applicable√InapplicableDuringthereportingperiod,therewasnocustody.(2)Contract□Applicable√InapplicableDuringthereportingperiod,therewasnocontract.(3)Lease√Applicable□InapplicableLeasestatementOnDecember5,2019,theCompanyatthe19thmeetingofthefourthBoardofDirectorsapprovedtheProposalonDailyRelatedPartyTransactions.Duetotheneedsofoperationandbusiness,theFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.34Companyanditswholly-ownedsubsidiary,ZhongshanZhongshunTradingCo.,Ltd.,leasedtherealestatejointlyownedbyMr.DengYingzhong,theactualcontroller,Mr.DengGuanbiaoandMr.DengGuanjie.TheleasetermisfromJanuary1,2020toDecember31,2021,andtherelatedpartytransactioninvolvesRMB5,896,200.Duringtheconsiderationofthisproposal,theCompany'sthreerelateddirectors,Mr.DengYingzhong,Mr.DengGuanbiaoandMr.DengGuanjie,withdrewfromvoting,whiletheremainingsixattendingdirectorsunanimouslyapprovedthisrelatedtransaction.ThethreeindependentdirectorsoftheCompanyrespectivelyissuedPriorApprovalOpinionsandOpinionsofIndependentDirectorsontheproposal,agreeingtosubmittheproposaltotheBoardofDirectorsfordeliberationandagreeingtotherelatedpartytransaction.ProjectswhoseprofitsorlossesbroughttotheCompanyreachedmorethan10%ofthetotalprofitsoftheCompanyduringthereportingperiod□Applicable√InapplicableDuringthereportingperiod,therewasnoleasingprojectswhoseprofitsorlossesbroughttotheCompanyreachedmorethan10%ofthetotalprofitsoftheCompanyduringthereportingperiod.2.Materialguarantee√Applicable□Inapplicable(1)GuaranteeUnit:RMB10,000Theoverseasguaranteeofthecompanyanditssubsidiaries(guaranteetosubsidiariesisnotincluded).NameoftheborrowerDisclosuredateofrelevantannouncementsofguaranteelimitGuaranteelimitActualdateofoccurrenceActualguaranteeamountGuaranteetypeGuaranteeperiodWhetherithasbeencompletedWhetheritisrelatedpartyguaranteeThecompany'sguaranteetoitssubsidiariesNameoftheborrowerDisclosuredateofrelevantannouncementsofguaranteelimitGuaranteelimitActualdateofoccurrenceActualguaranteeamountGuaranteetypeGuaranteeperiodWhetherithasbeencompletedWhetheritisrelatedpartyguaranteeZhongshunTradingCo.,Ltd.December19,201815,000October22,201912,323.09JointandseveralliabilityguaranteeOctober22,2019-August27,2022NoYesZhongshunTradingCo.,Ltd.December5,201915,000April14,202019.92JointandseveralliabilityguaranteeApril14,2020-October23,2022NoYesZhongshunTradingCo.,Ltd.December19,201815,000December5,20191,106.48JointandseveralliabilityguaranteeDecember6,2019-December5,2022NoYesZhongshunTradingCo.,Ltd.December19,201820,000June6,20191,076.66JointandseveralliabilityguaranteeJune6,2019-June6,2024NoYesZhongshunTradingCo.,Ltd.December15,201710,000November19,20180JointandseveralliabilityNovember19,2018-November18,2022NoYesFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.35guaranteeJiangmenC&SDecember19,201812,000October22,20192,345.35JointandseveralliabilityguaranteeOctober22,2019-August27,2022NoYesJiangmenC&SDecember15,201710,000March27,20180JointandseveralliabilityguaranteeMarch27,2018-December31,2023NoYesJiangmenC&SDecember19,20187,000May5,20193,470.36JointandseveralliabilityguaranteeMay5,2019-August5,2021NoYesJiangmenC&SDecember19,201810,000July1,20191,284.87JointandseveralliabilityguaranteeJuly1,2019-June30,2022NoYesJiangmenC&SDecember15,201716,000May30,20180JointandseveralliabilityguaranteeMay30,2018-May30,2023NoYesYunfuC&SDecember5,20198,000April14,20200JointandseveralliabilityguaranteeApril14,2020-April14,2028NoYesHubeiC&SDecember5,201910,000February25,20200JointandseveralliabilityguaranteeFebruary25,2020-December4,2025NoYesHubeiC&SDecember5,201910,000June3,20209,000JointandseveralliabilityguaranteeJune3,2020-May29,2023NoYesJiangmenC&S,YunfuC&S,HubeiC&SDecember19,201825,000January8,20191,138.7JointandseveralliabilityguaranteeJanuary8,2019-January8,2021NoYesC&SHongKong,ZhongShunInternational,MacaoC&SDecember19,201821,247.5September2,201913,551.77JointandseveralliabilityguaranteeSeptember2,2019-July31,2023NoYesC&SHongKong,ZhongShunInternationalDecember5,201918,550.14March20,20208,094.24JointandseveralliabilityguaranteeMarch20,2020-September19,2022NoYesC&SHongKong,MacaoC&SDecember5,201938,000February17,202024,830JointandseveralliabilityguaranteeFebruary17,2020-December23,2022NoYesC&SHongKong,ZhongShunInternational,MacaoC&SDecember5,201944,973.88February12,202030,696.43JointandseveralliabilityguaranteeFebruary12,2020-February12,2022NoYesC&SHongKong,December5,201914,165February25,20201,965.89JointandseveralFebruary25,2020-FebruaryNoYesFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.36MacaoC&Sliabilityguarantee25,2022C&SHongKong,MacaoC&SDecember19,20187,082.5September16,20190JointandseveralliabilityguaranteeSeptember16,2019-January13,2023NoYesC&SHongKong,MacaoC&SDecember5,201916,998March27,20204,934.61JointandseveralliabilityguaranteeMarch27,2020-February19,2022NoYesC&SHongKong,ZhongShunInternational,MacaoC&SDecember15,201719,738.08September28,20188,489.41JointandseveralliabilityguaranteeSeptember28,2018-August31,2022NoYesC&SHongKong,ZhongShunInternational,MacaoC&SDecember5,201921,247.5January30,202018,259.7JointandseveralliabilityguaranteeJanuary30,2020-January30,2022NoYesMacaoC&SDecember15,20177,790.75March23,2018808.21JointandseveralliabilityguaranteeMarch23,2018-September23,2021NoYesMacaoC&SDecember15,20177,000August15,20182,379.72JointandseveralliabilityguaranteeAugust15,2018-August15,2025NoYesC&SHongKongDecember15,201710,623.75April9,20187,899.95JointandseveralliabilityguaranteeApril9,2018-January24,2020NoYesTotalapprovedamountofguaranteeforsubsidiariesduringthereportingperiod(B1)196,934.52Totalactualamountofguaranteeforsubsidiariesduringthereportingperiod(B2)97,800.79Totalapprovedamountofguaranteeforsubsidiariesattheendofthereportingperiod(B3)410,417.1Totalactualguaranteebalancetosubsidiariesattheendofthereportingperiod(B4)153,675.36TheguaranteeofsubsidiariestosubsidiariesNameoftheborrowerDisclosuredateofrelevantannouncementsofguaranteelimitGuaranteelimitActualdateofoccurrenceActualguaranteeamountGuaranteetypeGuaranteeperiodWhetherithasbeencompletedWhetheritisrelatedpartyguaranteeTotalamountoftheCompany'sguarantee(thesumofthefirstthreeitems)Totalapprovedamountofguaranteeduringthereportingperiod(A1+B1+C1)196,934.52Totalactualamountofguaranteeduringthereportingperiod(A2+B2+C2)97,800.79Totalapprovedamountofguaranteeattheendofthereportingperiod(A3+B3+C3)410,417.1Totalactualguaranteebalanceattheendofthereportingperiod(A4153,675.36Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.37+B4+C4)Proportionofthetotalactualamountofguarantee(A4+B4+C4)inthenetassetsoftheCompany33.91%Wherein:Thebalanceofguaranteeforshareholders,actualcontrollersandtheirrelatedparties(D)0Thebalanceofdebtguaranteeprovideddirectlyorindirectlyfortheborrowerwhoseasset-liabilityratioexceeds70%(E)45,788.42Theamountofguaranteeinexcessof50%ofnetassets(F)0Totalamountoftheabovethreeguarantees(D+E+F)45,788.42Statementsofthefactthattheguaranteeliabilityhasoccurredormaybejointlyandseverallyliablefortheunexpiredguaranteeduringthereportingperiod(ifany)NoneStatementsofprovidingexternalguaranteeinviolationofprescribedprocedures(ifany)None(2)Externalguaranteeinviolationofprescribedprocedures□Applicable√InapplicableDuringthereportingperiod,therewasnoexternalguaranteeinviolationofprescribedprocedures.3.EntrustedWM√Applicable□InapplicableUnit:RMB10,000SpecifictypesSourcesofentrustedWMfundsIncurredamountofentrustedWMUnduebalanceTheamountoverduebutnotrecoveredBankingWMproductSelf-ownedfund21,24021,2400Total21,24021,2400Specificsituationsofhigh-riskentrustedWMwithindividuallysignificantamountsorlowsafety,poorliquidityandnoprincipalguarantee□Applicable√InapplicableEntrustedWMisexpectedtofailtorecovertheprincipalorthereareothercircumstancesthatmayleadtoimpairment□Applicable√Inapplicable4.Othermajorcontracts□Applicable√InapplicableDuringthereportingperiod,therewasnoothermajorcontracts.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.38XVI.SocialResponsibility1.MajorenvironmentalissuesWhetherlistedcompaniesandthesubsidiariesarethekeypollutiondischargeunitspublishedbythedepartmentofenvironmentalprotectionYesFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.39Company/subsidiarynameNamesofmainpollutantsandparticularpollutantsWaysofdischargeNumberofdischargeoutletsDistributionofdischargeoutletsConcentrationofdischargeImplementedpollutantdischargestandardsTotaldischargeTotalapproveddischargeExcessivedischargeJiangmenZhongshunPaperCo.,Ltd.WastewaterCODAftertreatment,itisdischargedtothesewagetreatmentplant1Centralizedprocessingfacilitiesinthefactory141.5mg/L≤200mg/L144.59t335.600t/aNoneAmmonianitrogen5.35mg/L≤8mg/L2.65t13.4t/aNoneC&S(Sichuan)PaperCo.,Ltd.WastewaterCODAftertreatment,itentersthewaterpurificationstationthroughurbansewagepipeline1Productionwastewaterdischarge(DW001)flowsthroughthechannelintothemainoutletDW002(confluentwithdomesticwastewater)33mg/L≤80mg/L13.8626t96t/aNoneAmmonianitrogen0.496mg/L≤8mg/L0.2084t9.6t/aNoneWastegasPM(particulatematter)Dischargedirectlythroughtheflue4Fourchimneys(onespare)1#furnace9.8mg/m33#furnace3.6mg/m34#furnace3.2mg/m3≤20mg/m31#furnace0.1634t3#furnace0.1160t4#furnace0.1684t5.6088t/aNoneNitrogenoxide1#furnace107mg/m33#furnace81mg/m34#furnace83mg/m3≤150mg/m31#furnace1.8100t3#furnace2.5625t4#furnace2.8129t42.022t/aNoneSulfurdioxide0≤50mg/m300.44t/aNoneZhejiangZhongshunPaperCo.,Ltd.Co.,Ltd.WastewaterCODAftertreatment,itisdischargedtoJiaxingUnionSewageTreatmentCo.,Ltd.throughmunicipalpipe1Centralizedprocessingfacilitiesinthefactory33.28mg/L≤500mg/L3.15t13.97t/aNoneAmmonianitrogen1.92mg/L≤35mg/L0.18t9.78t/aNoneC&S(Hubei)PaperCo.,Ltd.WastewaterCODAftertreatment,itisdischargedtoBiquanSewageTreatmentPlantthroughmunicipal1Afterpre-processingofcentralizedprocessingfacilitiesinthefactory,itisdischargedtoBiquanSewageTreatmentPlant56.99mg/L≤400mg/L22.23t152.25t/aNoneAmmonianitrogen1.151mg/L≤30mg/L0.639t15.25t/aNoneFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.40pipeWastegasPM(particulatematter)Dedustingbybagfilter,desulfurizationbylimestone-gypsumanddenitrationbySNCR1Onechimney5.09mg/m330mg/Nm36.488t/NoneSulfurdioxide23.07mg/m3200mg/Nm323.7t203.87t/aNoneNitrogenoxide48.91mg/m3200mg/Nm361.515t239.85t/aNoneC&S(Yunfu)PaperCo.,Ltd.WastewaterCODContinuousdischarge1Sewagetreatmentstationinthefactory30.46mg/L≤80mg/L33.54t197.1t/aNoneAmmonianitrogenContinuousdischarge1Sewagetreatmentstationinthefactory1.043mg/L≤8mg/L2.65t19.76t/aNoneC&SPaperCo.,Ltd.TangshanBranchWastewaterCODAfterbeingtreatedbytheplantsewagetreatmentstation,itisdischargedtotheLvyuanSewageTreatmentPlantinthezone1Themainoutletofthezone(LvyuanSewageTreatmentPlant)28.94mg/L≤50mg/L1.85t16.5t/aNoneAmmonianitrogen0.62mg/L≤5mg/L0.04t1.65t/aNoneWastegasPM(particulatematter)Dischargedirectlythroughtheflue1Onechimney2.06mg/m3≤5mg/m30.053t2.46t/aNoneNitrogenoxide16.38mg/m3≤30mg/m30.419t18.46t/aNoneSulfurdioxide3.09mg/m3≤10mg/m30.078t6.15t/aNoneFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.41Constructionandoperationofpollutionpreventionandcontrolfacilities(1)Complianceobligationsfulfillment:theCompanyanditssubsidiariesstrictlyabidebynationalandlocalenvironmentallawsandregulations;allnewprojectsstrictlyimplementtheenvironmentalimpactassessmentsystemand"Threesimultaneous"system;allproductionactivitiesstrictlycomplywiththeEnvironmentalProtectionLawofthePeople'sRepublicofChina,theLawofthePeople'sRepublicofChinaonthePreventionandControlofWaterPollution,theLawofthePeople'sRepublicofChinaonthePreventionandControlofAtmosphericPollution,theLawofthePeople'sRepublicofChinaonthePreventionandControlofEnvironmentalPollutionbySolidWasteandtheActionPlanforPreventionandControlofWaterPollution,andensureallpollutanttreatmentanddischargeinlinewiththerequirementsoflawsandregulations.(2)Configurationandoperationofwatertreatmentequipmentandfacilities:Eachsubsidiaryhasacompletesetofenvironmentalprotectiontreatmentequipmentandfacilities.Themainsewagetreatmentprocessesareanaerobic,aerobicandsubsequentdeeptreatmentprocesses,whichcanachievethedischargestandardsofvarioussewageindicators.Inaddition,eachsubsidiaryisequippedwitharecyclingwatersystem,inwhichthereclaimedwaterthatmeetstheusagestandardisusedforre-productiontoreducethedischargeofsewageasfaraspossible.ThesewageofJiangmen,Zhejiang,HubeiandTangshancompaniesisdischargedaftercentralizedtreatmentintheCompanyandtreatedbythelocalsewagetreatmentplants.AftercentralizedtreatmentintheCompany,thesewageofSichuanCompanyenterswaterpurificationstationthroughurbansewagepipeline;thesewageofYunfuCompany,aftertreatedbythecompany'ssewagetreatmentstationandreachingthestandard,isdischargedorganically.(3)On-linemonitoringandoperationofwatertreatmentfacilities:FoursubsidiariesinYunfu,Sichuan,ZhejiangandHubeihaveallinstalledon-linesewagemonitoringfacilities,whicharedirectlysupervisedbylocalEnvironmentalProtectionBureau.ThesewageofTangshanCompany,aftercentralizedtreatmentintheCompany,isdischargedtothesewageplantofthelocalpaperindustrybasewithoutanyothersewageoutlet.Monitoringfacilitiesareinstalledinthecompanyforinternalcontrolreference.AfterthecentralizedtreatmentwithintheCompany,thesewageofJiangmenCompanyisdischargedtothesewageplantofthelocalpaperindustrybase.Thereisnoothersewageoutletandnoon-linemonitoringfacilities.TheEnvironmentalProtectionBureaugoestothecompanyregularlyeveryquartertocomparetheon-linemonitoringdata,whichallmeettherequirements.(4)Boilerwastegasemission:SichuanBranchandTangshanBranchareequippedwithnaturalgasboilers.HubeiBranchisequippedwithacoal-firedboiler,andwastegasisemitteduniformlyafterdesulfurizationanddenitrification.BoilerwastegasemissionconformstoGB13271-2014EmissionStandardofAirPollutantsforBoiler.Environmentalimpactassessmentofconstructionprojectsandotheradministrativepermitsforenvironmentalprotection(1)Administrativepermits:AccordingtotheMeasuresfortheAdministrationofPollutantDischargePermitoftheMinistryofEnvironmentalProtectionofthePeople'sRepublicofChina,theapplicationsweresubmittedtotheEnvironmentalProtectionBureau.Allthesubsidiaries'permissionswouldexpirein2020andtheyallappliedfortheextensionontimeinaccordancewiththeregulations.(2)Constructionprojects:theCompanyhasalwaysbeenstrictlyinaccordancewithenvironmentallawsandregulationstoimplementthecontrolofconstructionprojects.Environmentalimpactassessmentwascarriedoutforallconstructionprojectsandenvironmentalprotectionprojectconstructionwasarrangedaccordingtoconstructionplan,toensurethattheenvironmentalFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.42protectionfacilitiesandthemainprojectaredesigned,constructedandputintouseatthesametime.Atpresent,allconstructionprojectsputintoproductionhavecompletedenvironmentalimpactassessmentandacceptanceandapproval.Emergencyplanforsuddenenvironmentalevents(1)Preparationandreportingofemergencyplanforsuddenenvironmentalevents:TheCompanystrictlyimplementsemergencyrulesforsuddenenvironmentalevents,andaccordingtothetechnicalrequirementsintheTechnicalGuidelinesforPreparationofEmergencyPlansforEnvironmentalPollutionAccidentsemploysaprofessionaladvisoryandguidanceorganizationtoformulatetheEmergencyPlanforSuddenEnvironmentalEvents,whichhasbeenreviewedandfiledbytheEnvironmentalProtectionBureau.(2)Emergencysupplies,traininganddrill:TheCompanyhasmatchedthecorrespondingemergencysuppliesaccordingtotherequirementsoftheEmergencyPlanforSuddenEnvironmentalEvents.Emergencymeasuresforhazardouschemicalshavebeenpreparedaccordingtoenvironmentalprotectionrequirements,andnecessarylaborprotectionsuppliesandemergencysupplieshavebeenprovidedinaccordancewithsafetytechnicalinstructions,andcheckedandupdatedregularly.TheCompanyregularlycarriesoutemergencytraininganddrillandsuitabilityassessmentofemergencyplantoensuretheeffectivenessandenforceabilityofemergencyplan.Environmentalself-monitoringprogram(1)Self-monitoringledger:TheCompanystrictlyabidesbylawsandregulations,carriesoutself-monitoringworkinaccordancewithenvironmentalprotectionrequirements,establishesenvironmentalmanagementledgeranddata,andconstantlyimprovesit.(2)Wastewatermonitoring:Atpresent,self-monitoringisacombinationofmanualmonitoringandautomaticmonitoring,andqualifiedunitsareentrustedtocarryoutmonitoringregularly.Automaticmonitoringprojects:maindischargeoutletofwastewater(COD,ammonianitrogen,flowrate,PH,totalnitrogen);Manualmonitoringprojects:dailymonitoringofCOD,BOD,ammonianitrogen,SS,chroma,PH,totalphosphorusandtotalnitrogenindicators;othersewagemonitoringprojects,uncontrolledemissions,solidwasteandfactoryboundarynoise;eachsubsidiaryentrustsqualifiedunitstocarryoutmonitoringworkonamonthlyorquarterlybasisaccordingtothelocalenvironmentalprotectionrequirements.(3)Wastegasmonitoring:themaintestingitemsarenitrogenoxide,ringelmanemittance,sulfurdioxideandsoot.Thetestingfrequencyisincompliancewiththerequirementsofregulations.(4)Theself-monitoringdataofpollutantdischargeandenvironmentalmonitoringplansofeachsubsidiaryaredisclosedonthenationalkeypollutionsourceinformationdisclosurewebsiteandtheprovincialkeypollutionsourceinformationdisclosurewebsite.Otherenvironmentalinformationthatshouldbedisclosed(1)TheinformationofpollutiondischargepermitandrelevantenvironmentalinformationrequiredbypollutionpermitsshallbepublishedontheNationalPollutionDischargePermitManagementInformationPlatform.Ifthecompetentgovernmentdepartmentinthelocationofthesubsidiaryhasspecificrequirements,theinformationshallbepublishedonitsrequiredenvironmentalinformationplatforminlocalarea.(2)Otherinformationrelatedtoenvironmentalprotectionshallbepublishedinthe“News”sectionFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.43ofourwebsite.OtherrelevantinformationonenvironmentalprotectionNone2.Performanceofsocialresponsibilityfortargetedpovertyalleviation(1)TargetedpovertyreliefplanningTheCompanycarriedouttargetedpovertyalleviationinthefirsthalfof2020,andthefollowingworkplanwillbecarriedoutinaccordancewiththeCompany’ssituationandworkarrangement.(2)Summaryofsemi-annualtargetedpovertyalleviationInordertoimplementGeneralSecretaryXiJinping’simportantguidancethatpovertyalleviationanddevelopmentshouldbepreciseandnon-publicenterprisesareencouragedtoparticipateinpovertyalleviationbytakingaturnkeyapproachintermsofresources,wehaveactivelyrespondedtothegovernment’sappealinthefirsthalfof2020,fulfilledcorporatesocialresponsibility,andprovidedfinancialandmaterialassistancetopoorareas.Targetedpovertyalleviationwork:1.Wehavefulfilledcorporatesocialresponsibilitybyparticipatingintheactivityof“Assistanceinpandemicfighting,loveneverstopspreading”,anddonating10,000masks,disinfectant,disinfectionpowder,protectiveclothingandotherpandemicpreventionmaterialstoYunmengCountyofXiaoganCity,whichtotallyworthRMB35,000.2.TheCompanyhasparticipatedinthe“GuangdongPovertyAlleviationDay”inLuodingCity,GuangdongProvinceanddonatedRMB100,000incash.(3)TargetedpovertyreliefachievementsIndicatorUnitofmeasurementAmountanddescriptionI.OverallSituation--Including:1.CapitalRMB10,000102.MoneyequivalentofsuppliesRMB10,0003.5II.InvestmentsbyItems--1.Povertyalleviationinitiativestopromoteindustrydevelopment--2.Povertyalleviationinitiativestotransferemployment--3.Povertyalleviationinitiativestorelocateimpoverishedresidents--4.Povertyalleviationinitiativestopromoteeducation--5.Povertyalleviationinitiativestopromotehealthcare--6.Povertyalleviationinitiativestopromoteecologicalprotection--7.Povertyalleviationinitiativestostrengthensecurityguarantee--8.Povertyalleviationinitiativestopromotesocialcauses--8.2AmountoftargetedpovertyreliefinputRMB10,00013.59.Otherprojects--III.Awards(includingContentandLevel)--Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.44(4)SubsequenttargetedpovertyalleviationplanThefollowingworkplanwillbecarriedoutinaccordancewiththeCompany’ssituationandworkarrangement.XVII.StatementonOtherSignificantEvents√Applicable□InapplicableNo.AnnouncementtimeAnnouncementnameAnnouncementnumberDisclosuremedia1January9,2020Pre-disclosureAnnouncementonShareReductionPlanforDirectorsandSeniorOfficersoftheCompanyJanuary2020SecuritiesTimes(STCN,)(STCN,),SecuritiesDaily(),ChinaSecuritiesJournal(),ShanghaiSecuritiesNews(),andCNINFO()2February3,2020AnnouncementonResolutionsofthe20thMeetingoftheFourthBoardofDirectorsFebruary20203February3,2020AnnouncementonExternalDonationsMarch20204February10,2020AnnouncementontheProductionandSaleofMedicalMasksbyWholly-ownedSubsidiariesApril20205December2,2020May20206February13,2020AnnouncementontheAcquisitionofEmergencyMedicalDeviceProductionandEmergencyMedicalDeviceRecordCertificatebyWholly-ownedSubsidiariesJune20207February15,2020ProgressAnnouncementonShareReductionPlanforDirectorsandSeniorOfficersoftheCompany2020-078February26,2020AnnouncementonResolutionsofthe21stMeetingoftheFourthBoardofDirectors2020-089February26,2020AnnouncementonResolutionsofthe17thMeetingoftheFourthBoardofSupervisors2020-0910February26,2020AnnouncementonChangestoAccountingPolicies2020-1011February26,2020NoticeonHolding2020FirstExtraordinaryGeneralMeeting2020-1112February29,20202019AnnualPerformanceBulletin2020-1213March6,2020CompletionAnnouncementonShareReductionPlanforSeniorManagersoftheCompany2020-1314March11,2020AnnouncementontheCompletionofIndustrialandCommercialRegistrationAmendmentofSubsidiaries2020-1415March14,2020AnnouncementonResolutionsof2020FirstExtraordinaryGeneralMeetingofShareholders2020-1516March18,2020AnnouncementontheResignationofRepresentativesofSecuritiesAffairs2020-1617March20,2020AnnouncementontheFirstRepurchaseofCompanyShares2020-1718March21,2020AnnouncementontheProgressofRepurchaseofCompanyShares2020-1819March31,2020AnnouncementontheCompletionofIndustrialandCommercialRegistrationAmendmentoftheCompanyandPartially-ownedSubsidiaries2020-1920April3,2020AnnouncementontheProgressofRepurchaseofCompanyShares2020-20Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.4521April8,2020Pre-disclosureAnnouncementonShareReductionPlanforDirectorsandSeniorOfficersoftheCompany2020-2122April30,2020AnnouncementonResolutionsofthe22ndMeetingoftheFourthBoardofDirectors2020-2223April30,2020AnnouncementonResolutionsofthe18thMeetingoftheFourthBoardofSupervisors2020-2324April30,2020Summaryof2019AnnualReport2020-2425April30,2020AnnouncementontheProposalonthe2019ProfitDistributionPlan2020-2526April30,2020NoticeonHolding2019AnnualGeneralMeeting2020-2627April30,2020NotificationonHoldingtheOnlinePerformancePresentationforthe2019AnnualReport2020-2728April30,2020BodyoftheReportfortheFirstQuarterof20202020-2829May8,2020AnnouncementontheProgressofRepurchaseofCompanyShares2020-2930May8,2020ProgressAnnouncementonShareReductionPlanforSeniorManagersoftheCompany2020-3031May15,2020AnnouncementontheCompletionofIndustrialandCommercialRegistrationAmendmentofSubsidiaries2020-3132May15,2020CompletionAnnouncementonShareReductionPlanforDirectorsandSeniorManagersoftheCompany2020-3233May16,2020NoticeofPre-disclosureonExpirationoftheShareholdingReductionPlanforSeniorManagersoftheCompanyandtheNextShareholdingReductionPlan2020-3334May22,2020AnnouncementonResolutionsof2019AnnualGeneralMeetingofShareholders2020-3435May22,2020AnnouncementonResolutionsof23rdMeetingoftheFourthBoardofDirectors2020-3536May22,2020AnnouncementonResolutionsofthe19thMeetingoftheFourthBoardofSupervisors2020-3637May22,2020AnnouncementontheTerminationofRepurchaseofCompanyShares2020-3738May22,2020AnnouncementontheUnlockConditionAchievementfortheFirstReleasePeriodFirstlyGrantedby2018StockOptionandRestrictedStockIncentivePlan2020-3839May22,2020AnnouncementontheExerciseConditionsoftheFirstExercisePeriodoftheEquitiesOptionFirstlyGrantedby2018StockOptionandRestrictedStockIncentivePlan2020-3940May22,2020AnnouncementontheRepurchaseandDeregistrationofPartialRestrictedStockFirstlyGrantedby2018StockOptionandRestrictedStockIncentivePlan2020-4041May22,2020AnnouncementontheDeregistrationofPartialStockOptionsFirstlyGrantedby2018StockOptionandRestrictedStockIncentivePlan2020-4142May23,2020AnnouncementontheImplementationof2019AnnualEquityAllocation2020-4243May27,2020AnnouncementontheResignationoftheCompany’sDirector2020-4344May29,2020AnnouncementonResolutionsofthe24thMeetingoftheFourthBoardofDirectors2020-44Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.4645May29,2020AnnouncementonResolutionsofthe20thMeetingoftheFourthBoardofSupervisors2020-4546May29,2020AnnouncementontheAdjustmentofExercisePriceofStockOptionsof2018StockOptionandRestrictedStockIncentivePlan2020-4647May29,2020AnnouncementontheBy-electionofDependentDirectorsoftheFourthBoardofDirectors2020-4748May29,2020NoticeonHolding2020SecondExtraordinaryGeneralMeeting2020-4849June4,2020IndicativeAnnouncementonLiftingtheSalesRestrictionintheFirstReleasePeriodFirstlyGrantedby2018StockOptionandRestrictedStockIncentivePlan2020-4950June8,2020IndicativeAnnouncementontheAdoptionoftheAutonomousExerciseModeintheFirstExercisingPeriodoftheStockOptionFirstlyGrantedby2018StockOptionandRestrictedStockIncentivePlan2020-5051June16,2020ProgressAnnouncementonShareReductionPlanforSeniorManagersoftheCompany2020-5152June16,2020AnnouncementontheAccomplishmentoftheDeregistrationofPartialStockOptionFirstlyGrantedby2018StockOptionandRestrictedStockIncentivePlan2020-5253June16,2020AnnouncementonResolutionsof2020SecondExtraordinaryGeneralMeetingofShareholders2020-5354June16,2020AnnouncementonCapitalDecrease2020-5455June23,2020AnnouncementonResolutionsofthe25thMeetingoftheFourthBoardofDirectors2020-5556June23,2020AnnouncementontheElectionofViceChairmanoftheFourthBoardofDirectors2020-5657June23,2020AnnouncementontheAppointmentofJointGeneralManageroftheCompany2020-57XVIII.MajorIssuesoftheCompany’sSubsidiaries√Applicable□Inapplicable1.InFebruary2020,theCompany’swholly-ownedsubsidiary,C&S(Yunfu)PaperCo.,Ltd.maderapidresponsetothepneumoniaoutbreakbasedontheimplementationoflocalgovernmentrequirements.Itsolvedtheproblemofscarcemaskproduction,developeditsbusinessofproducingandsellingsurgicalmasksandhasacquiredtheEmergencyMedicalDeviceProductionandEmergencyMedicalDeviceRecordCertificate,possessingthequalificationsintheproductionandsaleofsurgicalmasks.DetailscanbefoundinthefollowingdocumentspublishedonFebruary10,2020andFebruary13,2020onthedesignatedinformationdisclosuremediaSecuritiesTimes(STCN,),ChinaSecuritiesNews,SecuritiesDaily(),ShanghaiSecuritiesNews()andCNINFO(:AnnouncementontheProductionandSaleofMedicalMasksbyWholly-ownedSubsidiaries(AnnouncementNo.2020-04)andAnnouncementontheAcquisitionofEmergencyMedicalDeviceProductionandEmergencyMedicalDeviceRecordCertificatebySubordinateSubsidiaries(AnnouncementNo.2020-06).2.Thecompanyanditssevensubsidiarieshaveincreasedbusinessscopeofsellingdaily-useFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.47chemicalproductsandmedicaldevices,andaugmentedtheregisteredcapitalandchangedthelegalrepresentative.Moreover,theCompanyhascompletedtheindustrialandcommercialproceduresandobtainednewlicenses.DetailscanbefoundinthefollowingdocumentspublishedonMarch11,2020andMarch31,2020onthedesignatedinformationdisclosuremediaSecuritiesTimes(STCN,),ChinaSecuritiesNews,SecuritiesDaily(),ShanghaiSecuritiesNews()andCNINFO(:NoticeonCompletionofIndustrialandCommercialChangeRegistrationofSubordinateSubsidiaries(AnnouncementNo.2020-14)andtheAnnouncementontheCompletionofIndustrialandCommercialRegistrationAmendmentofCompanyandPartially-ownedSubsidiaries(AnnouncementNo.2020-19)andAnnouncementontheCompletionofIndustrialandCommercialRegistrationAmendmentofSubsidiaries(AnnouncementNo.2020-31).Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.48SectionVIEquityChangesandShareholdersI.ChangesinShares1.ChangesinsharesUnit:ShareBeforethischangeIncreaseanddecreaseofthischange(+,-)AfterthischangeNumberofsharesPercentageIssuanceofadditionalsharesBonussharesSharestransferredfromsurplusreserveOthersSubtotalNumberofsharesPercentageI.ShareSubjecttoRestrictionsonSales43,764,8523.34%-6,396,337-6,396,33737,368,5152.85%3.Otherdomesticshareholding41,134,8073.14%-5,718,326-5,718,32635,416,4812.70%Sharesheldbydomesticindividuals41,134,8073.14%-5,718,326-5,718,32635,416,4812.70%4.Foreignshareholdings2,630,0450.20%-678,011-678,0111,952,0340.15%Sharesheldbyoverseasindividuals2,630,0450.20%-678,011-678,0111,952,0340.15%II.SharesNotSubjecttoRestrictionsonSales1,265,126,42196.66%8,976,0558,976,0551,274,102,47697.15%1.Ordinarydomesticshares1,265,126,42196.66%8,976,0558,976,0551,274,102,47697.15%III.TotalNumberofShares1,308,891,273100.00%2,579,7182,579,7181,311,470,991100.00%Reasonofchangeinshares√Applicable□InapplicableOnMay21,2020,afterholdingthe23rdmeetingofthefourthBoardofDirectors,theCompanypassedtheProposalontheAchievementofExerciseConditionsoftheFirstExercisePeriodofStockOptionfortheFirstTimeundertheCompany's2018StockOptionandRestrictedStockIncentivePlan,andtheexerciseconditionsofthefirstexerciseperiodoftheequitiesoptionsforthefirsttimehavebeenfulfilled.Thistime,theindependentexercisemodeisadoptedwiththeactualexerciseperiodfromJune10,2020toFebruary26,2021.AsatJune29,2020,theoptionsof2,579,718shareshavebeenexercisedand2,579,718shareshavebeenissued,andthetotalsharecapitalhasincreasedfrom1,308,891,273to1,311,470,991.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.49Approvalofsharechanges√Applicable□InapplicableTherelatedmattersinthefirstunlockingperiodofrestrictedstocksfirstlygrantedbyStockOptionsandRestrictedStockIncentivePlanin2018hasbeenauthorizedbythefirstgeneralmeetingofshareholdersoftheCompanyin2019andapprovedbythe23rdmeetingoftheBoardofDirectors,togetherwiththeachievementofexerciseconditionsinthefirstexerciseperiod.Transferofshares□Applicable√InapplicableImplementationofsharerepurchase√Applicable□InapplicablePhaseIIsharerepurchaseplanOnApril18,2019,the12thmeetingofthefourthBoardofDirectorspassedtheProposalontheCompany'sShareRepurchase.TheCompanyaimstorepurchasepartoftheCompany'ssharesbycentralizedbiddingtransaction,withatotalamountofRMB200million(inclusive)-RMB400million(inclusive).ThebuybackpriceshallnotoutstripRMB13.69/share(inclusive).Allsharestoberepurchasedwillbeusedforemployeestockownershipplans.OnAugust5,2019,theCompanyheldthe15thmeetingofthefourthofBoardofDirectorsandpassedProposalonAdjustmentoftheUpperLimitofShareRepurchasePrice.InlinewiththepositivechangesinthecapitalmarketandtheCompany'sstockprice,theCompanyadjustedthesharerepurchasepricetoensurecompany'ssharerepurchasebasedonthedevelopmentconfidenceintheCompany'sfuturebusinessandmarketvalue.TherepurchasepricewasadjustedfromnomorethanRMB13.69/share(inclusive)tonomorethanRMB18.81/share(inclusive).FromMarch19toMarch20,2020,theCompanyconductedsharerepurchasebycentralizedbidding.Thenumberofsharesrepurchasedwas1,895,900accumulatively,accountingfor0.1448%oftheCompany'stotalsharecapital.ThehighesttransactionamountwasRMB15/share,thelowestonewasRMB14.34/share,andthetotaltransactionamountwasRMB27,680,721.76(withnotransactioncostsincluded).OnMay21,2020,afterholdingthe23rdmeetingofthefourthBoardofDirectors,theCompanypassedtheProposalonTerminationofShareRepurchaseoftheCompany,andthentheCompanyterminatedthesharerepurchaseplan.Implementationofsharerepurchasebycentralizedbidding□Applicable√InapplicableTheimpactofsharechangesonbasicearningspershareanddilutedearningspershare,netassetspershareattributabletoordinaryshareholdersoftheCompanyinlastyearandthelatestperiod□Applicable√InapplicableOthercontentsconsiderednecessarybytheCompanyorrequiredtobedisclosedbythesecuritiesregulatoryauthority□Applicable√InapplicableFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.502.Changesinrestrictedshares√Applicable□InapplicableUnit:ShareNameofshareholderNumberofrestrictedsharesatthebeginningofthereportingperiodNumberofsharesreleasedfromrestrictedsalesinthecurrentperiodIncreaseofrestrictedsharesinthecurrentperiodNumberofrestrictedsharesattheendoftheperiodReasonsforsalesrestrictionDateofliftingsalesrestrictionDengYingzhong4,679,5584,679,558Lock-insharesofseniormanagementLong-termDengGuanbiao3,718,1053,718,105Lock-insharesofseniormanagementLong-termDengGuanjie900,730900,730Lock-insharesofseniormanagementLong-termLiuJinfeng1,733,967703,4921,030,475Lock-insharesofseniormanagementLong-termZhouQichao663,579165,825497,754Lock-insharesofseniormanagementLong-termDongYe134,62571,08145,000108,544Asforseniormanagementlock-inshares,theincreasedrestrictedsharesareunlockedrestrictedstocksduetotheproportionallockingofseniormanagement.Long-termLiYouquan40,80015,00033,300Lock-insharesofseniormanagementLong-termDaiZhenji220,045555,011600,000265,034Asforseniormanagementlock-inshares,theincreasedrestrictedsharesareunlockedrestrictedstocksduetotheproportionallockingofseniormanagement.Long-termYueYong9,206,24355,0009,261,243Asforseniormanagementlock-inshares,theincreasedrestrictedsharesLong-termFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.51areunlockedrestrictedstocksduetotheproportionallockingofseniormanagement.Equityincentiverecipients22,467,2005,593,42816,873,772Inaccordancewith2018StockOptionandRestrictedStockIncentivePlan(Draft),theunlockingconditionsofthefirstreleaseperiodforsomerestrictedstocksgrantedforthefirsttimehavebeenfulfilled.TheCompanywillunlocktheshareswiththenumberof5,593,428shares.RestrictedshareswerereleasedasearlyasJune8,2020,andtheremainingrestrictedshareswillbereleasedaccordingto2018StockOptionandRestrictedStockIncentivePlan(Draft).Total43,764,8527,158,837645,00037,368,515----II.DetailsofSecuritiesIssuanceandListing□Applicable√InapplicableIII.NumberofShareholdersandParticularsofShareholdingUnit:ShareTotalnumberofordinaryshareholdersattheendofthereportingperiod38,258Totalnumberofpreferenceshareholderswithvotingrightsrestoredattheendofthereportingperiod(ifany)(refertonote8)0Ordinaryshareholdersboastingmorethan5%ortoptenordinaryshareholdersNameofshareholderNatureofshareholderShareholdingpercentageTotalnumberofordinaryshareholdersattheendofthereportingperiodChangesinshareholdingduringthereportingperiodNumberofordinarysharessubjecttorestrictionsonsalesNumberofordinaryshareswithnorestrictionsonsalesPledgedorlocked-upsharesSharestatusNumberofsharesGuangdongZhongshunPaperGroupCo.,Ltd.Domesticnon-state-ownedlegalperson28.64%375,655,958375,655,958ChungShunCo.Foreignlegalperson20.32%266,504,789266,504,789HongKongForeignlegal7.66%100,420,938Buy100,420,938Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.52SecuritiesClearingCo.,Ltd.personChinaMerchantsBankCo.,Ltd.-XingquanHeyiFlexibleAllocationGradedHybridSecuritiesInvestmentFund(LOF)Others1.09%14,326,980New14,326,980YueYongDomesticnaturalperson0.97%12,743,741Reduce10,031,2432,712,498C&SPaperCo.,Ltd.--PhaseIIEmployeeStockOwnershipPlanOthers0.89%11,709,583New11,709,583InvestecAssetManagementCo.,Ltd.--InvestecGlobalFundStrategy--ChinaStockFund(Exchange)Foreignlegalperson0.79%10,333,380New10,333,380NationalSocialSecurityFundPortfolio406Others0.78%10,286,511New10,286,511NationalSocialSecurityFundPortfolio101Others0.75%9,852,669New9,852,669ChinaMerchantsBankCo.,Ltd.--XingquanHerunGradedHybridSecuritiesInvestmentOthers0.71%9,368,027New9,368,027Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.53FundStrategicinvestorsorgenerallegalpersonsbecomingtoptenordinaryshareholdersonaccountofplacementofnewshares(ifany)(seenote3)NoneWhethertheabove-mentionedshareholdershavearelatedpartyrelationshiporarepersonsactinginconcert1.Amongthetoptenshareholdersmentionedabove,GuangdongZhongshunPaperGroupCo.,Ltd.andChungShunCo.aretheenterprisescontrolledbyDengYingzhong,DengGuanbiaoandDengGuanjie.Thatis,GuangdongZhongshunPaperGroupCo.,Ltd.andChungShunCo.arerelatedparties.2.TheCompanydoesnotfigureoutwhetherthereisarelatedpartyrelationshipbetweenothershareholders,andwhetherthereisapersonactinginconcertasstipulatedintheAdministrativeMeasuresfortheDisclosureofInformationonChangesinShareholders'ShareholdingofListedCompanies.HoldingsofthetoptenordinaryshareholdersnotsubjecttorestrictionsonsalesNameofshareholderNumberofordinarysharesheldthatarenotsubjecttorestrictionsonsalesattheendofthereportingperiodTypeofsharesTypeofsharesNumberofsharesGuangdongZhongshunPaperGroupCo.,Ltd.375,655,958RMB-denominatedordinaryshares375,655,958ChungShunCo.266,504,789RMB-denominatedordinaryshares266,504,789HongKongSecuritiesClearingCo.,Ltd.100,420,938RMB-denominatedordinaryshares100,420,938ChinaMerchantsBankCo.,Ltd.-XingquanHeyiFlexibleAllocationGradedHybridSecuritiesInvestmentFund(LOF)14,326,980RMB-denominatedordinaryshares14,326,980C&SPaperCo.,Ltd.--PhaseIIEmployeeStockOwnershipPlan11,709,583RMB-denominatedordinaryshares11,709,583InvestecAssetManagementCo.,Ltd.--InvestecGlobalFundStrategy--ChinaStockFund(Exchange)10,333,380RMB-denominatedordinaryshares10,333,380NationalSocialSecurityFundPortfolio40610,286,511RMB-denominatedordinaryshares10,286,511NationalSocialSecurityFundPortfolio1019,852,669RMB-denominatedordinaryshares9,852,669ChinaMerchantsBankCo.,Ltd.--XingquanHerunGradedHybridSecuritiesInvestmentFund9,368,027RMB-denominatedordinaryshares9,368,027LiHong8,706,669RMB-denominatedordinaryshares8,706,669Whetherthetoptenshareholdersofordinaryshareswithoutrestrictionsonsale,ortheabove-mentionedshareholdersandthetoptenordinaryshareholdershavearelatedpartyrelationshiporarepersonsactinginconcert.1.Amongthetoptenshareholdersmentionedabove,GuangdongZhongshunPaperGroupCo.,Ltd.andChungShunCo.aretheenterprisescontrolledbyDengYingzhong,DengGuanbiaoandDengGuanjie.Thatis,GuangdongZhongshunPaperGroupCo.,Ltd.andChungShunCo.arerelatedparties.2.TheCompanydoesnotfigureoutwhetherthereisarelatedpartyrelationshipbetweenothershareholders,andwhetherthereisapersonactinginconcertasstipulatedintheAdministrativeMeasuresfortheDisclosureofInformationonChangesinShareholders'ShareholdingofListedCompanies.DescriptionoftoptenordinaryshareholdersengaginginmargintradingNoneFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.54andshort-selling(ifany)(seenote4)Whetherthetoptenordinaryshareholdersandthetoptenshareholderswithoutrestrictionsonsaleconductedtheagreedrepurchasetransactionduringthereportingperiod□Yes√NoTheCompany'stoptenordinaryshareholdersandtoptenordinaryshareholderswithoutrestrictionsonsaledidnotconductagreedrepurchasetransactionsduringthereportingperiod.IV.TheChangeinControllingShareholderorDeFactoControllerChangesofcontrollingshareholdersduringthereportingperiod□Applicable√InapplicableTherewasnochangeinthecontrollingshareholderduringthereportingperiod.Changeofactualcontrollingshareholderduringthereportingperiod□Applicable√InapplicableTherewasnochangeinactualcontrollingshareholderduringthereportingperiod.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.55SectionVIIDetailsofPreferenceShares□Applicable√InapplicableDuringthereportingperiod,therewasnopreferencestock.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.56SectionVIIIConvertibleCorporateBonds□Applicable√InapplicableDuringthereportingperiod,therewasnoconvertiblebond.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.57SectionIXProfilesofDirectors,Supervisors,andSeniorManagementI.ChangesinShareholdingofDirectors,SupervisorsandSeniorManagers√Applicable□InapplicableNamePositionstatusNumberofsharesheldatthebeginningofthereportingperiod(shares)Numberofsharesincreasedinthecurrentperiod(shares)Numberofsharesdecreasedinthecurrentperiod(shares)Numberofsharesheldattheendofthereportingperiod(shares)Numberofrestrictedsharesgrantedatthebeginningoftheperiod(shares)Numberofrestrictedsharesgrantedinthecurrentperiod(shares)Numberofrestrictedsharesgrantedattheendoftheperiod(shares)DengYingzhongChairmanoftheBoardofDirectorsIncumbent6,239,4116,239,411DengGuanbiaoViceChairmanIncumbent4,957,4734,957,473DengGuanbiaoGeneralManagerIncumbentDengGuanjieViceChairmanIncumbent1,200,9741,200,974LiuJinfengDirectorIncumbent2,813,967703,4172,110,550LiuJinfengDeputyGeneralManagerIncumbentDaiZhenjiDirectorIncumbentDaiZhenjiJointGeneralManagerIncumbent2,220,045550,0451,670,000ZengYiDirectorIncumbentHuangHongyanIndependentDirectorIncumbentGeGuangruiIndependentDirectorIncumbentHeHaidiIndependentDirectorIncumbentChenHaiyuanChairmanoftheBoardofSupervisorsIncumbentLiangYongliangSupervisorIncumbentLiYouquanSupervisorIncumbent62,28062,280ZhouQichaoDeputyGeneralManagerIncumbent663,672165,000498,672ZhouQichaoBoardSecretaryIncumbentDongYeChiefFinancialOfficerIncumbent284,72571,000213,725YueYongDeputyIncumbent13,374,991631,25012,743,741Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.58GeneralManagerYeLongfangDeputyGeneralManagerIncumbentDengGuanjieDeputyGeneralManagerResignedZhouQichaoDirectorResignedTotal----31,817,53802,120,71229,696,826000II.ChangesinDirectors,SupervisorsandSeniorManagers√Applicable□InapplicableNamePositionTypeDateReasonZhouQichaoDirectorResignedMay26,2020VoluntarilyresignDaiZhenjiDirectorElectedJune15,2020ElectedatameetingoftheBoardofDirectorsDaiZhenjiJointGeneralManagerAppointedJune22,2020AppointedatameetingoftheBoardofDirectorsDengGuanjieDeputyGeneralManagerDismissedJune22,2020VoluntarilyresignDengGuanjieViceChairmanElectedJune22,2020ElectedatameetingoftheBoardofDirectorsFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.59SectionXCorporateBondsWhetherthereareanypubliclyissuedcorporatebondsthatarelistedonthestockexchangeandarenotdueatthedateofissuanceofthesemi-annualreportapprovalorfailtoberedeemedforfullfacevalueatmaturityNoFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.60SectionXIFinancialReportI.AuditReportWhetherthesemi-annualreporthasbeenaudited□Yes√NoThesemi-annualfinancialreporthasnotbeenaudited.II.FinancialStatementsTheunitoffinancialstatementsis:RMB1.ConsolidatedbalancesheetPreparedby:C&SPaperCo.,Ltd.June30,2020Unit:RMBItemJune30,2020December31,2019Currentassets:Monetaryfunds933,473,976.97703,746,624.42SettlementreserveLendingtobanksandotherfinancialinstitutionsTradablefinancialassetsDerivativefinancialassetsNotesreceivable608,962.30301,904.32Accountsreceivable822,077,129.81807,772,897.68AccountsreceivablefinancingPrepayments43,008,049.9714,877,757.16PremiumreceivableReinsurancepayablesReinsurancecontractreservesreceivableOtherreceivables32,122,559.848,240,417.99Including:InterestreceivableDividendsreceivableFinancialassetsheldunderresaleagreementsInventory1,178,918,505.39986,405,689.17ContractassetsAssetsheldforsale57,073,059.6957,073,059.69Non-currentassetsduewithinoneyearOthercurrentassets252,093,066.16165,567,805.78Totalcurrentassets3,319,375,310.132,743,986,156.21Non-currentassets:LoansandadvancestocustomersCreditrightinvestmentsOthercreditrightinvestmentsFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.61Long-termreceivableLong-termequityinvestmentInvestmentinotherequityinstrumentsOthernon-currentassetsInvestmentproperty35,336,048.6936,039,381.30Propertyandequipment2,907,864,726.862,921,392,106.87Constructionworkinprogress22,256,470.4655,734,236.91ProductivebiologicalassetsOil&gasassetsRight-of-useassetsIntangibleassets167,613,708.93168,731,781.83DevelopmentexpensesGoodwill64,654.1564,654.15Long-termdeferredexpenses16,792,595.9113,686,397.24Deferredincometaxassets106,712,993.4980,331,080.17Othernon-currentassets36,687,133.696,306,028.96Totalnon-currentassets3,293,328,332.183,282,285,667.43Totalassets6,612,703,642.316,026,271,823.64Currentliabilities:Short-termloans161,860,368.5014,721,492.38BorrowingsfromPBCPlacementsfrombanksandotherfinancialinstitutionsTradablefinancialliabilitiesDerivativefinancialliabilitiesNotespayable204,505,448.05202,653,860.31Accountspayable586,807,107.68578,212,781.22Paymentsreceivedinadvance142,476,562.31Contractliabilities79,981,886.78ProceedsfromfinancialassetssoldunderrepoCustomerbankdepositsandduetobanksandotherfinancialinstitutionsFundsfromsecuritiestradingagencyFundsfromsecuritiesunderwritingagencyEmployeeremunerationpayable92,264,018.86106,413,600.27Taxandfeespayable101,707,460.78101,670,618.11Otherpayables712,822,436.31635,834,511.05Including:Interestspayable41,625.00173,259.89Dividendspayable1,510,753.80452,536.50TransactionfeeandcommissionreceivableReinsurancepayableLiabilitiesheldforsaleNon-currentliabilitiesduewithinoneyear32,400,000.00OthercurrentliabilitiesFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.62Totalcurrentliabilities1,939,948,726.961,814,383,425.65Non-currentliabilities:InsurancecontractreservesLong-termLoans22,500,000.00BondspayableIncluding:PreferencesharesPerpetualbondsLeaseliabilitiesLong-termpayableLong-termemployeeremunerationpayableProvisionDeferredincome102,975,006.8382,367,831.33Deferredincometaxliabilities37,539,267.5830,016,107.43Othernon-currentliabilitiesTotalnon-currentliabilities140,514,274.41134,883,938.76Totalliabilities2,080,463,001.371,949,267,364.41Owner'sequity:Sharecapital1,310,680,059.001,308,891,273.00OtherequityinstrumentsIncluding:PreferencesharesPerpetualbondsCapitalreserve858,352,488.79760,731,416.57Less:Treasuryshares103,719,823.96104,792,649.00OthercomprehensiveincomeSpecialreservesSurplusreserves53,205,582.8653,205,582.86GeneralreservesRetainedearnings2,413,722,334.252,058,968,835.80Totalequityattributabletotheownersoftheparentcompany4,532,240,640.944,077,004,459.23EquitiesofminorityshareholdersTotalowner'sequity4,532,240,640.944,077,004,459.23Totalliabilitiesandowners'equities6,612,703,642.316,026,271,823.64Legalrepresentative:DengYingzhongPersoninchargeofaccounting:DongYePersoninchargeofaccountingdepartment:XuXianjing2.Theparentcompany'sbalancesheetUnit:RMBItemJune30,2020December31,2019Currentassets:Monetaryfunds186,441,417.73156,202,659.45TradablefinancialassetsDerivativefinancialassetsNotesreceivableAccountsreceivable87,304,544.39127,203,426.87AccountsreceivableFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.63financingPrepayments7,274,161.532,565,716.66Otherreceivables42,634,717.52637,511,752.54Including:InterestreceivableDividendsreceivableInventory98,445,575.2184,567,041.98ContractassetsAssetsheldforsaleNon-currentassetsduewithinoneyearOthercurrentassets154,346,353.09129,377,576.74Totalcurrentassets576,446,769.471,137,428,174.24Non-currentassets:CreditrightinvestmentsOthercreditrightinvestmentsLong-termreceivableLong-termequityinvestment1,918,835,099.921,231,245,128.96InvestmentinotherequityinstrumentsOthernon-currentassetsInvestmentproperty18,370,935.8418,745,192.09Propertyandequipment264,916,338.29222,724,273.70Constructionworkinprogress301,278.4635,260,100.44ProductivebiologicalassetsOil&gasassetsRight-of-useassetsIntangibleassets21,861,883.6421,259,498.66DevelopmentexpensesGoodwillLong-termdeferredexpensesDeferredincometaxassets43,951,221.4918,366,334.29Othernon-currentassets5,485,050.504,521,074.21Totalnon-currentassets2,273,721,808.141,552,121,602.35Totalassets2,850,168,577.612,689,549,776.59Currentliabilities:Short-termloansTradablefinancialliabilitiesDerivativefinancialliabilitiesNotespayableAccountspayable403,841,455.14325,506,510.90Paymentsreceivedinadvance28,227,454.47Contractliabilities28,841,094.26Employeeremunerationpayable28,873,838.2324,280,403.99Taxandfeespayable2,223,293.823,225,793.88Otherpayables135,745,112.94167,279,884.09Including:InterestspayableDividendspayable1,510,753.80452,536.50LiabilitiesheldforsaleNon-currentliabilitiesdueFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.64withinoneyearOthercurrentliabilitiesTotalcurrentliabilities599,524,794.39548,520,047.33Non-currentliabilities:Long-termLoansBondspayableIncluding:PreferencesharesPerpetualbondsLeaseliabilitiesLong-termpayableLong-termemployeeremunerationpayableProvisionDeferredincome6,459,142.977,062,818.69Deferredincometaxliabilities6,316,553.925,575,323.82Othernon-currentliabilitiesTotalnon-currentliabilities12,775,696.8912,638,142.51Totalliabilities612,300,491.28561,158,189.84Owner'sequity:Sharecapital1,310,680,059.001,308,891,273.00OtherequityinstrumentsIncluding:PreferencesharesPerpetualbondsCapitalreserve781,290,779.90690,241,724.38Less:Treasuryshares103,719,823.96104,792,649.00OthercomprehensiveincomeSpecialreservesSurplusreserves53,084,248.5853,084,248.58Retainedearnings196,532,822.81180,966,989.79Totalowner'sequity2,237,868,086.332,128,391,586.75Totalliabilitiesandowners'equities2,850,168,577.612,689,549,776.593.ConsolidatedincomestatementUnit:RMBItemFirsthalfof2020Firsthalfof2019I.TotalOperatingIncome3,616,201,399.803,172,389,026.96Including:Operatingincome3,616,201,399.803,172,389,026.96InterestIncomeGrossearnedpremiumsServicechargeandcommissionincomeII.TotalOperatingCost3,081,938,688.142,839,540,130.78Including:Operatingcosts1,931,406,918.162,008,336,231.02InterestexpensesServicechargeandcommissionexpensesSurrendervalueNetcompensationexpensesNetappropriationofinsurancereservePolicydividendsexpensesFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.65ReinsurancecostsTaxandsurcharges26,920,007.3617,781,889.77Sellingexpenses848,071,082.60607,769,281.49Administrativeexpense185,701,854.01126,787,650.22R&Dexpenses90,860,828.2464,040,654.87Financeexpenses-1,022,002.2314,824,423.41Including:Interestfees1,140,788.298,797,536.95InterestIncome4,060,998.021,693,449.28Plus:Otherincome15,174,645.204,557,020.41Returnoninvestment("-"indicatesloss)2,287,274.8772,378.41Including:ReturnoninvestmentinassociatesandjointventuresIncomefromthederecognitionoffinancialassetsmeasuredatamortizedcostExchangegain("-"indicatesloss)Gainsfromnetexposurehedging("-"indicatesloss)Gainsfromchangesinfairvalue("-"indicatesloss)Creditimpairmentlosses("-"indicatesloss)-1,423,699.751,029,502.08Assetimpairmentlosses("-"indicatesloss)-850,381.40-2,522,408.99Returnondisposalofassets("-"indicatesloss)-896,870.05-389,173.07III.OperatingProfit("-"indicatesloss)548,553,680.53335,596,215.02Plus:Non-operatingincome3,169,241.162,735,749.22Less:Non-operatingexpenditure13,240,183.16411,368.58IV.TotalProfit("-"indicatestotalloss)538,482,738.53337,920,595.66Less:Incometaxexpense85,783,253.9263,045,961.23V.NetProfit("-"indicatesnetloss)452,699,484.61274,874,634.43i.Classifiedbyoperationcontinuity1.Netprofitfromcontinuedoperation("-"indicatesnetloss)452,699,484.61274,874,634.432.Netprofitfromdiscontinuedoperation("-"indicatesnetloss)ii.Classifiedbyattributionofownership1.Netprofitattributabletoownersoftheparentcompany452,699,484.61274,874,634.432.Minorityshareholders'profitsandlossesVI.NetAmountofOtherComprehensiveIncomeafterTaxTotalothercomprehensiveafter-taxnetincomeattributabletoownersoftheparentcompanyi.Othercomprehensiveincomenotabletobereclassifiedintotheprofitorloss1.Changesofre-measurementofthedefinedbenefitplan2.Othercomprehensiveincomecannotbetransferredintotheprofitorlossunderequitymethod3.Changesinfairvalueofinvestmentinotherequityinstruments4.Changesinfairvalueofcreditriskoftheenterprise5.Othersii.Othercomprehensiveincomereclassifiedintotheprofitorloss1.OthercomprehensiveincometobeFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.66transferredintotheprofitorlossunderequitymethod2.Changesinfairvalueofinvestmentinothercreditor'srights3.Financialassetsreclassifiedintoothercomprehensiveincome4.Impairmentprovisionforcreditofinvestmentinothercreditor'srights5.Reserveofcashflowhedge6.Converteddifferenceinforeigncurrencyfinancialstatements7.OthersTotalothercomprehensiveafter-taxnetincomeattributabletominorityshareholdersVII.TotalComprehensiveIncome452,699,484.61274,874,634.43Totalcomprehensiveincomeattributabletoownersoftheparentcompany452,699,484.61274,874,634.43TotalcomprehensiveincomeattributabletominorityshareholdersVIII.EarningsperShare:i.Basicearningspershare0.35190.2162ii.Dilutedearningspershare0.34620.2156Forbusinesscombinationsofthecurrentperiodundercommoncontrol,thenetprofitrealizedbythecombinedpartybeforethecombinationis:RMB0.00,thenetprofitrealizedbythecombinedpartyinlastperiodis:RMB0.00.Legalrepresentative:DengYingzhongPersoninchargeofaccounting:DongYePersoninchargeofaccountingdepartment:XuXianjing4.IncomestatementoftheparentcompanyUnit:RMBItemFirsthalfof2020Firsthalfof2019I.OperatingIncome853,891,264.03563,613,980.60Less:Operatingcost712,614,977.74468,243,872.96Taxandsurcharges2,631,659.042,164,518.74Sellingexpenses66,501,515.2855,775,298.51Administrativeexpense91,173,785.6026,638,400.13R&DexpensesFinanceexpenses672,377.63-3,248,789.47Including:Interestfees6,705,100.34InterestIncome1,722,164.1911,428,271.08Plus:Otherincome1,098,835.80484,357.53Returnoninvestment("-"indicatesloss)142,109,515.7772,378.41Including:ReturnoninvestmentinassociatesandjointventuresProfitsfromderecognitionoffinancialassetsatamortizedcost("-"indicatesloss)Gainsfromnetexposurehedging("-"indicatesloss)Gainsfromchangesinfairvalue("-"indicatesloss)Creditimpairmentlosses("-"indicatesloss)-1,477,826.65-361,332.13Assetimpairmentlosses("-"indicatesloss)-235,210.66-165,408.68Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.67Returnondisposalofassets("-"indicatesloss)-613,479.84-469,019.25II.OperatingProfit("-"indicatesloss)121,178,783.1613,601,655.61Plus:Non-operatingincome367,540.33172,026.18Less:Non-operatingexpenditure11,762,151.7755,898.92III.TotalProfit("-"indicatestotalloss)109,784,171.7213,717,782.87Less:Incometaxexpense-3,727,647.463,388,493.80IV.NetProfit("-"indicatesnetloss)113,511,819.1810,329,289.07i.Netprofitfromcontinuedoperation("-"indicatesnetloss)113,511,819.1810,329,289.07ii.Netprofitfromdiscontinuedoperation("-"indicatesnetloss)V.NetAmountofOtherComprehensiveIncomeafterTaxi.Othercomprehensiveincomenotabletobereclassifiedintotheprofitorloss1.Changesofre-measurementofthedefinedbenefitplan2.Othercomprehensiveincomecannotbetransferredintotheprofitorlossunderequitymethod3.Changesinfairvalueofinvestmentinotherequityinstruments4.Changesinfairvalueofcreditriskoftheenterprise5.Othersii.Othercomprehensiveincomereclassifiedintotheprofitorloss1.Othercomprehensiveincometobetransferredintotheprofitorlossunderequitymethod2.Changesinfairvalueofinvestmentinothercreditor'srights3.Financialassetsreclassifiedintoothercomprehensiveincome4.Impairmentprovisionforcreditofinvestmentinothercreditor'srights5.Reserveofcashflowhedge6.Converteddifferenceinforeigncurrencyfinancialstatements7.OthersVI.TotalComprehensiveIncome113,511,819.1810,329,289.07VII.EarningsperShare:i.Basicearningspershareii.Dilutedearningspershare5.ConsolidatedstatementofcashflowsUnit:RMBItemFirsthalfof2020Firsthalfof2019I.CashFlowsfromOperatingActivities:Cashreceivedfromsaleofgoodsorrenderingofservices3,613,430,926.283,347,802,544.33Netincreaseindepositsfromcustomers,banksandnon-bankfinancialinstitutionsNetincreaseinduetocentralbanksFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.68NetincreaseinplacementsfromotherfinancialinstitutionsCashreceivedfromthepremiumofdirectinsurancecontractsNetcashfromreinsurancebusinessNetincreaseindepositsandinvestmentoftheinsuredCashobtainedfrominterest,netfeeandcommissionNetincreaseinplacementsfrombanksandotherfinancialinstitutionsNetincreaseinreposervicefundNetcashfromagentsecuritiestradingTaxrebates120,214.0033,279.31Cashreceivedrelatedtootheroperatingactivities76,989,647.1040,848,294.35Sub-totalofcashinflowfromoperatingactivities3,690,540,787.383,388,684,117.99Cashpaidforgoodspurchasedandservicesrendered2,226,834,895.971,911,521,962.24NetloansandadvancestocustomersNetincreaseindepositswiththecentralbank,banksandnon-bankfinancialinstitutionsCashpaidforclaimsofdirectinsurancecontractsNetincreaseinplacementswithbanksandnon-bankfinancialinstitutionsCashpaidforinterest,feeandcommissionCashpaidfordividendsoftheinsuredCashpaidtoandonbehalfofemployees340,957,388.41284,005,440.48Taxpayments259,738,653.85135,395,919.51Cashpaymentsrelatedtootheroperatingactivities358,451,260.82322,775,157.40Sub-totalofcashoutflowfromoperatingactivities3,185,982,199.052,653,698,479.63Netcashflowsfromoperatingactivities504,558,588.33734,985,638.36II.CashFlowsfromInvestingActivities:CashfromrealizationofinvestmentCashreceivedfromthereturnoninvestments2,287,274.8772,378.41Netcashreceivedfromthedisposaloffixedassets,intangibleassets,andotherlong-termassets30,060,788.00834,037.30NetamountofcashreceivedfromthedisposalofsubsidiariesandotheroperatingorganizationsCashreceivedrelatedtootherinvestingactivities127,105,000.00Sub-totalofcashinflowfrominvestingactivities159,453,062.87906,415.71Cashpaidfortheacquisitionandconstructionoffixedassets,intangibleassets,andotherlong-termassets188,914,982.57358,177,083.79CashpaidforinvestmentsNetincreaseinpledgedloansNetamountofcashpaidforacquisitionofsubsidiariesandotheroperatingorganizationsCashpaymentsrelatedtootherinvestingactivities212,400,000.00Sub-totalofcashoutflowfrominvestingactivities401,314,982.57358,177,083.79Netcashflowsfrominvestingactivities-241,861,919.70-357,270,668.08III.CashFlowsfromFinancingActivities:Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.69Cashreceivedfromcapitalcontribution85,194,915.00Including:Proceedsreceivedbysubsidiariesfromminorityshareholders'investmentCashreceivedfromborrowings257,722,148.28137,829,746.31CashreceivedrelatedtootherfinancingactivitiesSub-totalofcashinflowfromfinancingactivities257,722,148.28223,024,661.31Cashpaidforrepaymentsofborrowings164,917,045.18339,611,101.42Cashpaymentforinterestexpensesanddistributionofdividendsorprofits98,173,895.0340,789,942.78Including:DividendandprofitpaidbysubsidiariestominorityshareholdersCashpaymentsrelatedtootherfinancingactivities40,446,866.9016,307,993.62Sub-totalofcashoutflowfromfinancingactivities303,537,807.11396,709,037.82Netcashflowsfromfinancingactivities-45,815,658.83-173,684,376.51IV.EffectofExchangeRateChangesonCashandCashEquivalents3,555,983.87-457,305.00V.NetIncreaseinCashandCashEquivalents220,436,993.67203,573,288.77Plus:Openingbalanceofcashandcashequivalents675,996,852.97371,129,472.06VI.ClosingBalanceofCashandCashEquivalents896,433,846.64574,702,760.836.StatementofcashflowsoftheparentcompanyUnit:RMBItemFirsthalfof2020Firsthalfof2019I.CashFlowsfromOperatingActivities:Cashreceivedfromsaleofgoodsorrenderingofservices746,412,698.39468,701,075.17Taxrebates120,214.0020,189.55Cashreceivedrelatedtootheroperatingactivities987,204,013.79587,308,960.78Sub-totalofcashinflowfromoperatingactivities1,733,736,926.181,056,030,225.50Cashpaidforgoodspurchasedandservicesrendered491,197,761.73221,022,475.25Cashpaidtoandonbehalfofemployees66,675,479.7036,380,500.54Taxpayments21,863,845.3611,302,940.79Cashpaymentsrelatedtootheroperatingactivities428,397,315.97567,775,504.30Sub-totalofcashoutflowfromoperatingactivities1,008,134,402.76836,481,420.88Netcashflowsfromoperatingactivities725,602,523.42219,548,804.62II.CashFlowsfromInvestingActivities:CashfromrealizationofinvestmentCashreceivedfromthereturnoninvestments141,992,629.4772,378.41Netcashreceivedfromthedisposaloffixedassets,intangibleassets,andotherlong-termassets417,864.00NetamountofcashreceivedfromthedisposalofsubsidiariesandotheroperatingorganizationsFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.70Cashreceivedrelatedtootherinvestingactivities127,105,000.00Sub-totalofcashinflowfrominvestingactivities269,097,629.47490,242.41Cashpaidfortheacquisitionandconstructionoffixedassets,intangibleassets,andotherlong-termassets18,608,797.776,231,934.84Cashpaidforinvestments665,600,000.00NetamountofcashpaidforacquisitionofsubsidiariesandotheroperatingorganizationsCashpaymentsrelatedtootherinvestingactivities152,400,000.00Sub-totalofcashoutflowfrominvestingactivities836,608,797.776,231,934.84Netcashflowsfrominvestingactivities-567,511,168.30-5,741,692.43III.CashFlowsfromFinancingActivities:Cashreceivedfromcapitalcontribution85,194,915.00CashreceivedfromborrowingsCashreceivedrelatedtootherfinancingactivities3,420,478.96Sub-totalofcashinflowfromfinancingactivities88,615,393.96Cashpaidforrepaymentsofborrowings197,600,000.00Cashpaymentforinterestexpensesanddistributionofdividendsorprofits96,955,934.2838,405,658.84Cashpaymentsrelatedtootherfinancingactivities31,482,661.04460,054.74Sub-totalofcashoutflowfromfinancingactivities128,438,595.32236,465,713.58Netcashflowsfromfinancingactivities-128,438,595.32-147,850,319.62IV.EffectofExchangeRateChangesonCashandCashEquivalents259,845.46-1,684.66V.NetIncreaseinCashandCashEquivalents29,912,605.2665,955,107.91Plus:Openingbalanceofcashandcashequivalents156,151,560.8295,287,969.57VI.ClosingBalanceofCashandCashEquivalents186,064,166.08161,243,077.487.Consolidatedstatementofchangesinowner'sequityFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.71AmountofthecurrentperiodUnit:RMBItemFirsthalfof2020Owner'sequityattributabletotheparentcompanyEquitiesofminorityshareholdersTotalowner'sequitySharecapitalOtherequityinstrumentsCapitalreserveLess:TreasurysharesOthercomprehensiveincomeSpecialreservesSurplusreservesGeneralreservesRetainedearningsOthersSubtotalPreferencesharesPerpetualbondsOthersI.BalanceattheEndofLastYear1,308,891,273.00760,731,416.57104,792,649.0053,205,582.862,058,968,835.804,077,004,459.234,077,004,459.23Plus:AlternationtoaccountingpoliciesCorrectiontopreviouserrorsBusinesscombinationsinvolvingenterprisesundercommoncontrolOthersII.BalanceattheBeginningoftheYear1,308,891,273.00760,731,416.57104,792,649.0053,205,582.862,058,968,835.804,077,004,459.234,077,004,459.23III.ChangesinthePeriod("-"IndicatesDecrease)1,788,786.0097,621,072.22-1,072,825.04354,753,498.45455,236,181.71455,236,181.71i.Totalcomprehensiveincome452,699,484.61452,699,484.61452,699,484.61ii.Capitalcontributedordecreasedbyowner1,788,786.0097,621,072.22-1,072,825.04100,482,683.26100,482,683.261.Ordinaryshares2,591,508.0019,622,899.0622,214,407.0622,214,407.06Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.72contributedbyowners2.Capitalcontributedbyownersofotherequityinstruments3.Sharebasedpaymentsrecognizedasowner'sequity-802,722.0077,998,173.16-28,753,546.80105,948,997.96105,948,997.964.Others27,680,721.76-27,680,721.76-27,680,721.76iii.Profitdistribution-97,945,986.16-97,945,986.16-97,945,986.161.Appropriationofsurplusreserves2.Appropriationofgeneralriskreserves3.Distributiontoowners(orshareholders)-97,945,986.16-97,945,986.16-97,945,986.164.Othersiv.Interiorbalancefromowner'sequity1.Addedcapital(orsharecapital)fromcapitalreserves2.Addedcapital(orsharecapital)fromsurplusreserves3.Compensationoflosswithsurplusreserves4.RetainedFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.73earningsofcarry-overofchangesofthedefinedbenefitplan5.Retainedearningsofcarry-overofothercomprehensiveincome6.Othersv.Specialreserves1.Appropriationfortheperiod2.Usefortheperiodvi.OthersIV.ClosingBalanceofthePeriod1,310,680,059.00858,352,488.79103,719,823.9653,205,582.862,413,722,334.254,532,240,640.944,532,240,640.94AmountoflastperiodUnit:RMBItemFirsthalfof2019Owner'sequityattributabletotheparentcompanyEquitiesofminorityshareholdersTotalowner'sequitySharecapitalOtherequityinstrumentsCapitalreserveLess:TreasurysharesOthercomprehensiveincomeSpecialreservesSurplusreservesGeneralreservesRetainedearningsOthersSubtotalPreferencesharesPerpetualbondsOthersI.BalanceattheEndofLastYear1,286,692,741.00609,403,941.54122,916,831.0447,304,683.011,490,758,189.023,311,242,723.533,311,242,723.53Plus:AlternationtoaccountingpoliciesCorrectiontopreviouserrorsFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.74BusinesscombinationsinvolvingenterprisesundercommoncontrolOthersII.BalanceattheBeginningoftheYear1,286,692,741.00609,403,941.54122,916,831.0447,304,683.011,490,758,189.023,311,242,723.533,311,242,723.53III.ChangesinthePeriod("-"IndicatesDecrease)19,406,832.00123,064,031.9356,859,631.31245,153,530.23330,764,762.85330,764,762.85i.Totalcomprehensiveincome274,874,634.43274,874,634.43274,874,634.43ii.Capitalcontributedordecreasedbyowner19,406,832.00123,064,031.9356,859,631.3185,611,232.6285,611,232.621.Ordinarysharescontributedbyowners19,675,500.0065,519,415.0085,194,915.002.Capitalcontributedbyownersofotherequityinstruments3.Sharebasedpaymentsrecognizedasowner'sequity-268,668.0057,544,616.93-28,335,283.6985,611,232.6285,611,232.624.Othersiii.Profitdistribution-29,721,104.20-29,721,104.20-29,721,104.201.Appropriationofsurplusreserves2.AppropriationFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.75ofgeneralriskreserves3.Distributiontoowners(orshareholders)-29,721,104.20-29,721,104.20-29,721,104.204.Othersiv.Interiorbalancefromowner'sequity1.Addedcapital(orsharecapital)fromcapitalreserves2.Addedcapital(orsharecapital)fromsurplusreserves3.Compensationoflosswithsurplusreserves4.Retainedearningsofcarry-overofchangesofthedefinedbenefitplan5.Retainedearningsofcarry-overofothercomprehensiveincome6.Othersv.Specialreserves1.Appropriationfortheperiod2.Usefortheperiodvi.OthersFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.76IV.ClosingBalanceofthePeriod1,306,099,573.00732,467,973.47179,776,462.3547,304,683.011,735,911,719.253,642,007,486.383,642,007,486.388.Statementofchangesinowner'sequityoftheparentcompanyAmountofthecurrentperiodUnit:RMBItemFirsthalfof2020SharecapitalOtherequityinstrumentsCapitalreserveLess:TreasurysharesOthercomprehensiveincomeSpecialreservesSurplusreservesRetainedearningsOthersTotalowner'sequityPreferencesharesPerpetualbondsOthersI.BalanceattheEndofLastYear1,308,891,273.00690,241,724.38104,792,649.0053,084,248.58180,966,989.792,128,391,586.75Plus:AlternationtoaccountingpoliciesCorrectiontopreviouserrorsOthersII.BalanceattheBeginningoftheYear1,308,891,273.00690,241,724.38104,792,649.0053,084,248.58180,966,989.792,128,391,586.75III.ChangesinthePeriod("-"IndicatesDecrease)1,788,786.0091,049,055.52-1,072,825.0415,565,833.02109,476,499.58i.Totalcomprehensiveincome113,511,819.18113,511,819.18ii.Capitalcontributedordecreasedbyowner1,788,786.0091,049,055.52-1,072,825.0493,910,666.561.Ordinarysharescontributedby2,591,508.0019,622,899.0622,214,407.06Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.77owners2.Capitalcontributedbyownersofotherequityinstruments3.Sharebasedpaymentsrecognizedasowner'sequity-802,722.0071,426,156.46-28,753,546.8099,376,981.264.Others27,680,721.76-27,680,721.76iii.Profitdistribution-97,945,986.16-97,945,986.161.Appropriationofsurplusreserves2.Distributiontoowners(orshareholders)-97,945,986.16-97,945,986.163.Othersiv.Interiorbalancefromowner'sequity1.Addedcapital(orsharecapital)fromcapitalreserves2.Addedcapital(orsharecapital)fromsurplusreserves3.Compensationoflosswithsurplusreserves4.Retainedearningsofcarry-overofchangesofthedefinedbenefitplan5.RetainedearningsofFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.78carry-overofothercomprehensiveincome6.Othersv.Specialreserves1.Appropriationfortheperiod2.Usefortheperiodvi.OthersIV.ClosingBalanceofthePeriod1,310,680,059.00781,290,779.90103,719,823.9653,084,248.58196,532,822.812,237,868,086.33AmountoflastperiodUnit:RMBItemFirsthalfof2019SharecapitalOtherequityinstrumentsCapitalreserveLess:TreasurysharesOthercomprehensiveincomeSpecialreservesSurplusreservesRetainedearningsOthersTotalowner'sequityPreferencesharesPerpetualbondsOthersI.BalanceattheEndofLastYear1,286,692,741.00545,219,407.25122,916,831.0447,183,348.73157,579,995.321,913,758,661.26Plus:AlternationtoaccountingpoliciesCorrectiontopreviouserrorsOthersII.BalanceattheBeginningoftheYear1,286,692,741.00545,219,407.25122,916,831.0447,183,348.73157,579,995.321,913,758,661.26III.ChangesinthePeriod("-"IndicatesDecrease)19,406,832.00100,192,495.5456,859,631.31-19,391,815.1343,347,881.10i.Totalcomprehensiveincome10,329,289.0710,329,289.07ii.Capitalcontributedordecreasedbyowner19,406,832.00100,192,495.5456,859,631.3162,739,696.231.Ordinaryshares19,675,500.0065,519,415.0085,194,915.00Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.79contributedbyowners2.Capitalcontributedbyownersofotherequityinstruments3.Sharebasedpaymentsrecognizedasowner'sequity-268,668.0034,673,080.54-28,335,283.6962,739,696.234.Othersiii.Profitdistribution-29,721,104.20-29,721,104.201.Appropriationofsurplusreserves2.Distributiontoowners(orshareholders)-29,721,104.20-29,721,104.203.Othersiv.Interiorbalancefromowner'sequity1.Addedcapital(orsharecapital)fromcapitalreserves2.Addedcapital(orsharecapital)fromsurplusreserves3.Compensationoflosswithsurplusreserves4.Retainedearningsofcarry-overofchangesofthedefinedbenefitplan5.Retainedearningsofcarry-overofothercomprehensiveincome6.Othersv.Specialreserves1.Appropriationfortheperiod2.Usefortheperiodvi.OthersIV.ClosingBalanceofthePeriod1,306,099,573.00645,411,902.79179,776,462.3547,183,348.73138,188,180.191,957,106,542.36Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.80III.BasicInformationoftheCompany1.DevelopmenthistoryofthecompanyC&SPaperCo.,Ltd.(hereinafterreferredtoas"theCompany")isajointstocklimitedcompanyrestructuredfromZhongshanZhongshunPaperManufacturingCo.,Ltd.,withallshareholdersoftheoriginalcompanyasitsinitiators.TheCompanyhasobtainedabusinesslicenseofenterpriselegalpersonwiththeregistrationnumberas442000400013713issuedbyGuangdongProvinceAdministrationforIndustryandCommerceonDecember31,2008.InNovember2010,approvedbytheNoticeontheApprovaloftheInitialPublicOfferingofSharesofC&SPaperCo.,Ltd.issuedbyChinaSecuritiesRegulatoryCommissionpursuanttoDocumentZH.J.X.K.[2010]No.1539,theCompanyissued40,000,000RMB-denominatedordinaryshares(Ashares)tothepublic,eachhavingaparvalueofRMB1.ThesharecapitalafterthepublicofferingwasRMB160,000,000.00.OnMay22,2012,theCompanyheldthe2011AnnualGeneralMeetingofShareholdersandapprovedtheProposalonthe2011ProfitDistributionPlan,applyingforanincreaseofregisteredcapitalbyRMB48,000,000.00.Withthebasenumberof160,000,000.00totalsharesasattheendof2011,theCompanyplannedtoconvertcapitalreserveintonewsharesonthebasisofthreesharesforeverytenexistingshares.TheregisteredcapitalafterthechangewasRMB208,000,000.00.OnJune3,2013,theCompanyheldthe2012AnnualGeneralMeetingofShareholdersandapprovedtheProposalonthe2012ProfitDistributionPlan,applyingforanincreaseofregisteredcapitalbyRMB104,000,000.00.Withthebasenumberof208,000,000.00totalsharesasattheendof2012,theCompanyplannedtoconvertcapitalreserveintonewsharesonthebasisofthreesharesforeverytenexistingshares.TheregisteredcapitalafterthechangewasRMB312,000,000.00.OnMay8,2014,theCompanyheldthe2013AnnualGeneralMeetingofShareholdersandapprovedtheProposalonthe2013ProfitDistributionPlan,applyingforanincreaseofregisteredcapitalbyRMB93,600,000.00.Withthebasenumberof312,000,000.00totalsharesasattheendof2013,theCompanyplannedtoconvertcapitalreserveintonewsharesonthebasisofthreesharesforeverytenexistingshares.TheregisteredcapitalafterthechangewasRMB405,600,000.00.OnMay8,2015,theCompanyheldthe2014AnnualGeneralMeetingofShareholdersandapprovedtheProposalonthe2014ProfitDistributionPlan,applyingforanincreaseofregisteredcapitalbyRMB81,120,000.00.Withthebasenumberof405,600,000.00totalsharesasattheendof2014,theCompanyplannedtoconvertcapitalreserveintonewsharesonthebasisoftwosharesforeverytenexistingshares.TheregisteredcapitalafterthechangewasRMB486,720,000.00.PursuanttotheresolutionsoftheseventhmeetingofthethirdBoardofDirectors,theninthmeetingofthethirdBoardofDirectors,thethirdextraordinarygeneralmeetingof2015andthetenthmeetingofthethirdBoardofDirectors,theCompanyplannedtogrant17,133,000.00restrictedRMB-denominatedordinaryshares(Ashares)to242incentiverecipientsincludingLiuJinfengthroughprivateplacement,withaparvalueofRMB1pershareandagrantpriceofRMB4.25pershare.16,957,000.00restrictedRMB-denominatedordinaryshares(Ashares)weregrantedtoatotalof199incentiverecipientswith43employeeswithdrawingfromtheplan.TheregisteredcapitalafterthechangewasRMB503,677,000.00.Pursuanttotheresolutionsofthethirdextraordinarygeneralmeetingof2015,the11thmeetingofthethirdBoardofDirectorsandtheninthmeetingofthethirdBoardofSupervisors,theCompanyplannedtogrant1,867,000.00restrictedRMB-denominatedordinaryshares(Ashares)to68incentiverecipientsincludingDuanXiangleithroughprivateplacement,withaparvalueofRMB1pershareandagrantpriceofRMB4.80pershare.1,847,000.00restrictedRMB-denominatedFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.81ordinaryshares(Ashares)weregrantedtoatotalof54incentiverecipientswith14employeeswithdrawingfromtheplan.TheregisteredcapitalafterthechangewasRMB505,524,000.00.OnOctober24,2016,atthe15thmeetingofthethirdBoardofDirectors,ProposalontheRepurchaseandDeregistrationofPartialRestrictedStockundertheCompany'sRestrictedStockIncentivePlanandProposalonChangingtheRegisteredCapitalandAmendingtheArticlesofAssociationoftheCompanywerereviewedandapproved.PursuanttotheresolutionofthemeetingoftheBoardofDirectors,theCompanyappliedfortherepurchaseandderegistrationof266,000.00restrictedstocks.Amongthem,therepurchasepriceofrestrictedstocksgrantedinthefirstgrantwasRMB4.25pershare,therepurchasepriceofreservedrestrictedstockswasRMB4.80pershare,andtheregisteredcapitalafterthechangewasRMB505,258,000.00.OnMay10,2017,theCompanyheldthe2016AnnualGeneralMeetingofShareholdersandapprovedtheProposalonthe2016ProfitDistributionPlan,applyingforanincreaseofregisteredcapitalbyRMB252,629,000.00.Withthebasenumberof505,258,000.00totalsharesasattheendof2016,theCompanyplannedtoconvertcapitalreserveintonewsharesonthebasisoffivesharesforeverytenexistingshares.TheregisteredcapitalafterthechangewasRMB757,887,000.00.Pursuanttotheresolutionsofthe22ndand24thmeetingofthethirdBoardofDirectorsin2017,aspartoftheincentiverecipientsweredisqualifiedtoholdincentivestocksafterleavingtheCompanyorfailingtheappraisal,theCompanyplannedtorepurchaseandderegistertherestrictivestocksof35incentiverecipients.Amongthem,25incentiverecipientsweregrantedinthefirstperiodwith382,462.50restrictivestocksandtenincentiverecipientsweregrantedwith39,997.50reservedrestrictivestocks.Atotalof422,460.00shareswererepurchasedandderegistered.TheregisteredcapitalafterthereductionwasRMB757,464,540.00.OnMay8,2018,theCompanyheldthe2017AnnualGeneralMeetingofShareholdersandapprovedtheProposalonthe2017ProfitDistributionPlan,applyingforanincreaseofregisteredcapitalbyRMB530,225,178.00.Withthebasenumberof757,464,540.00totalshares,theCompanyplannedtoconvertcapitalreserveintonewsharesonthebasisofsevensharesforeverytenexistingshares.TheregisteredcapitalafterthechangewasRMB1,287,689,718.00.PursuanttotheresolutionofthefifthmeetingofthefourthBoardofDirectorsin2018,aspartoftheincentiverecipientsweredisqualifiedtoholdincentivestocksafterleavingtheCompanyorfailingtheappraisalatthesecondreleaseperiodoftheRestrictedStockIncentivePlan,theCompanyplannedtorepurchaseandderegistertherestrictivestocksof46incentiverecipients.Amongthem,985,426.00restrictivestocksweregrantedto38incentiverecipientsinthefirstgrantand11,551.00reservedrestrictivestocksweregrantedtoeightincentiverecipients.Atotalof996,977.00shareswererepurchasedandderegistered.TheregisteredcapitalafterthereductionwasRMB1,286,692,741.00.PursuanttotheresolutionsoftheninthmeetingofthefourthBoardofDirectorsandthefirstextraordinarygeneralmeetingin2019,theCompanyplannedtogrant21,717,500.00restrictedRMB-denominatedordinaryshares(Ashares)to671incentiverecipientsincludingDongYethroughprivateplacement,withaparvalueofRMB1pershare.19,675,500.00restrictedRMB-denominatedordinaryshares(Ashares)weregrantedtoatotalof569incentiverecipientsatthepriceofRMB4.33,with102employeeswithdrawingfromtheplan.TheregisteredcapitalafterthechangewasRMB1,306,368,241.00.Pursuanttotheresolutionsofthe12thand13thmeetingofthefourthBoardofDirectors,aspartoftheincentiverecipientsweredisqualifiedtoholdincentivestocksafterleavingtheCompanyorfailingtheappraisal,theCompanyplannedtorepurchaseandderegistertherestrictivestocksof32incentiverecipients.Amongthem,211,803.00restrictivestocksweregrantedto22incentiveFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.82recipientsinthefirstgrantand56,865.00reservedrestrictivestocksweregrantedtotenincentiverecipients.Atotalof268,668.00shareswererepurchasedandderegistered.PursuanttotheProposalonGrantingReservedStockOptionsandRestrictedStockstoIncentiveRecipientsreviewedandapprovedatthe16thmeetingofthefourthBoardofDirectorsin2019,theCompanyplannedtogrant64incentiverecipientswith3,500,000.00restrictivestockswithagrantpriceofRMB7.02pershare.Theincentiveplanactuallygranted46incentiverecipientswith2,791,700.00restrictedordinarysharesduetotheexitingof18incentiverecipients.TheregisteredcapitalafterthegrantwasRMB1,308,891,273.00.AsatDecember31,2019,theCompanyhashadaregisteredcapitalofRMB1,308,891,273.00andasharecapitalofRMB1,308,891,273.00.Atthe23rdmeetingofthefourthBoardofDirectorsandthe19thmeetingofthefourthBoardofSupervisors,ProposalontheAchievementofExerciseConditionsoftheFirstExercisePeriodofStockOptionfortheFirstTimeundertheCompany's2018StockOptionandRestrictedStockIncentivePlanwasreviewedandapproved.Inconformitywith2018StockOptionandRestrictedStockIncentivePlan(Draft),theBoardofDirectorsconsideredthatthefirstexerciseperiodexerciseconditionsofthestockoptiongrantedforthefirsttimehadbeenfulfilled.Thenumberofincentiverecipientsinconformitywiththeexerciseconditionsreached2,522andthenumberofstockoptionsthathavemetexerciseconditionswas3,431,505.00,withanexercisepriceofRMB8.572pershare.Duringthereportingperiod,therewere2,591,508.00stockoptionsexercised,withtheregisteredcapitalincreasedbyRMB2,591,508.00.TheCompanyheldthe23rdmeetingofthefourthBoardofDirectors,approvedtheProposalontheRepurchaseandDeregistrationofPartialRestrictedStockfortheFirstTimeundertheCompany's2018StockOptionandRestrictedStockIncentivePlan.Besides,theCompanyconvenedthesecondextraordinarygeneralmeetingofShareholdersin2020,approvedtheProposalonReducingtheCompany'sRegisteredCapitalandRevisingtheArticlesofAssociation.WhenthePhaseIofrestrictedstockgrantedforthefirsttimeundertheCompany's2018StockOptionandRestrictedStockIncentivePlanwasunlocked,241incentiverecipientslostincentivequalificationduetotheirdismissionbeforeunlocking,unqualifiedpersonalassessment,andfailuretogetthefullmarkthoughqualifiedinthepersonalassessment,andtheyagreedtorepurchaseandwriteoffatotalof802,722.00grantedbutnotunlockedrestrictedstocks.InJune2020,thepaymentfortherepurchasedandderegisteredsharesweremadetotheassociatedpersonnel.Thefollow-upproceduresofrepurchaseandderegistrationaswellastheindustrialandcommercialregistrationofchangesarebeingprocessed.2.Theregisteredaddress,formoforganization,andheadquartersoftheCompanyFormoforganization:CompanylimitedbysharesRegisteredaddress:ShenglongVillage,Tanbei,DongshengTown,ZhongshanAddressoftheheadquarterstheCompany:136CaihongAvenue,WestDistrict,Zhongshan3.Nature,scope,andmainbusinessactivitiestheCompanyC&SPaperCo.,Ltd.andallitssubsidiaries(hereaftergenerallyreferredtoastheCompany)areinthehouseholdpaperindustry.TheCompanymainlyengagesintheR&D,production,processing,andsales(includingonlinesales):High-endhouseholdpaperseriesproducts,tissueboxes,sanitationsupplies,cosmetics,non-wovenproducts,dailynecessities(limitedtoplasticproductsfordailyuse,metalwarefordailyuse,rubberproductsfordailyuse,andceramicsfordailyuse),andchemicalsfordailyuse(excludinghazardouschemicals),ClassImedicaldevices.PulpimportandFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.83export(excludingstatetradingcommodities;productsinthequotasystemorrequiringalicenseareappliedforinlinewithrelevantnationalregulations).OperationsandproductionofClassIIandIIImedicaldevices(involvingtheproductionofmedicaldevicesandcosmetics)(BusinessactivitiesabovearenotrestrictedbytheSpecialAdministrativeMeasuresfortheAccessofForeignInvestment)(Businessactivitiessubjecttoapprovalinaccordancewithlawsshallnotbecarriedoutuntilapprovalfromcompetentauthoritieshasbeenobtained.))SinceMarch2020,theCompanyexpandeditsbusinessrealmtoincludemedicaldevice-relatedbusinesses.4.DefactocontrolleroftheCompanyThecorporateactualcontrollersoftheCompanyareDengYingzhong,DengGuanbiao,andDengGuanjie(DengYingzhongistheothertwo’sfather).5.TheissuerandthedateoftheapprovalofthefinancialstatementsThefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyonAugust6,2020.6.ThescopeoftheconsolidationoffinancialstatementsAsatJune30,2020,therewere18subsidiariestheCompanythatwereincludedintheconsolidation.Fordetails,pleasereferto“NoteIXEquitiesinOtherEntities”.IV.PreparationBasisforFinancialStatements1.BasisofpreparationTherecognitionandmeasurementweremadebytheCompanyonagoingconcernbasisandaccordingtotheAccountingStandardsforBusinessEnterprises-BasicStandards,andthespecificaccountingstandardsbasedonactualtransactionsandevents,andthefinancialstatementsarepreparedonsuchbasis.TherecognitionandmeasurementweremadebytheCompanyonagoingconcernbasisandaccordingtotheAccountingStandardsforBusinessEnterprises-BasicStandardspromulgatedbytheMinistryofFinance(No.33Document,No.76Revision),andthe42accountingstandards,guidelinesfortheapplicationoftheaccountingstandardsforbusinessenterprises,interpretationtotheaccountingstandardsforbusinessenterprisesandotherrelevantregulationsthataresuccessivelypromulgatedonorafterFebruary15,2006(hereinaftercollectivelyreferredtoas"AccountingStandardsforBusinessEnterprises")andrulessetoutinNo.15PreparationandReportingRulesofInformationDisclosureofPublicOfferingCompanies-GeneralRulesforFinancialStatements(2014Revision)issuedbyChinaSecuritiesRegulatoryCommissionbasedonactualtransactionsandevents,andthefinancialstatementsarepreparedonsuchbasis.InaccordancewiththerelevantrulesofAccountingStandardsforBusinessEnterprises,thefinancialaccountingoftheCompanyisbasedonaccrualbasis.Apartfromsomefinancialtools,theaccountingmeasurementofthefinancialstatementsisbasedonaccountingcosts.Provisionsforimpairmentofassetissetasideifitisrecognized.2.GoingconcernTheCompanyshallbeagoingconcernforatleast12monthsfollowingtheendofthereportingperiod.TherearenomajoreventsthatwillaffecttheCompany’soperationalability,thereforetheassumptiononwhichthefinancialstatementsarebasedisreasonable.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.84V.SignificantAccountingPoliciesandAccountingEstimatesSpecificaccountingpoliciesandaccountingestimates:C&SPaperCo.,Ltd.andallitssubsidiarieshavesetoutseveralspecificaccountingpoliciesandaccountingestimatesfortransactionsandevents,suchastherecognitionofincomes,inaccordancewiththeAccountingStandardsforBusinessEnterprisesandtheirownoperationalcharacteristics.Pleasereferto“NoteVDescriptionsforAll.”1.StatementofcompliancewiththeaccountingstandardsforbusinessenterprisesThefinancialstatementsoftheCompanyconformtotherequirementssetoutfortheAccountingStandardsforBusinessEnterprises.Thestatementstruthfullyandcompletelyreflectthefinancialstatus,operatingresults,cashflow,andotherrelevantinformationoftheCompany.Inaddition,thefinancialstatementsoftheCompanyarealsoinaccordancewithdisclosurerequirementsforfinancialstatementsandnotesinNo.15PreparationandReportingRulesofInformationDisclosureofPublicOfferingCompanies-GeneralRulesforFinancialStatementsoftheChinaSecuritiesRegulatoryCommission(2014Revision)inallmajoraspects.2.AccountingperiodTheaccountingyearoftheCompanyisfromJanuary1toDecember31accordingtothesolarcalendar.3.OperatingcycleTheoperatingcycleoftheCompanynormallyreferstotheperiodsduringwhichtheCompanypurchasesassetsforprocessingandthengetscashorcashequivalentsfromtheprocesseditems.Normally,theoperatingcycleofacompanyisshorterthanayear.TheCompanysets12monthsasafulloperatingcycleandusesthe12-monthperiodasastandardfortheliquidityofassetsandliabilities.4.StandardcurrencyforaccountingRMBisthemaincurrencyinChinesemainland,whereC&SPaperCo.,Ltd.anditssubsidiariesarelocated.Therefore,thestandardcurrencyforaccountingforC&SPaperCo.,Ltd.anditssubsidiariesisRMB.ThecurrencyforaccountingusedintheCompany’sfinancialstatementsisRMB.5.TheaccountingprocessingmeasuresofbusinesscombinationsinvolvingenterprisesundercommoncontrolandbusinesscombinationsinvolvingenterprisesnotundercommoncontrolBusinesscombinationsrefertothecombinationoftwoormoreindependententerprisestoformareportingentityoftransactionsandevents.Businesscombinationcanbeclassifiedasbusinesscombinationsinvolvingenterprisesundercommoncontrolandbusinesscombinationsinvolvingenterprisesnotundercommoncontrol.(1)BusinesscombinationsinvolvingenterprisesundercommoncontrolBusinesscombinationsundercommoncontrolmeansenterprisesinvolvingbusinesscombinationareunderultimateratherthantemporarycontrolbyonepartyorthesamemulti-partiesbeforeandaftercombination.Forbusinesscombinationsundercommoncontrol,thosewhoobtaincontrolofenterprisesinvolvingbusinesscombinationoncombinationdatearethecombiningpartywhileenterprisesinvolvingbusinesscombinationarethecombinedparty.Combinationdateisthedatethatthecombiningpartyactuallyobtainscontrolofthecombinedparty.AssetsandliabilitiesthattheacquirergetsfromtheacquireearecalculatedandmeasuredattheFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.85bookvaluesofthedateofcombination.Ifthereweredifferencesbetweenthebookvaluesofthenetassetsandthebookvaluesofthecombinedconsideration(orthefacevaluesoftheissuedshares)theacquirerreceives,thedifferenceswillbeusedtoadjustcapitalreserves(sharepremium).Wherecapitalreserves(sharepremium)areinsufficienttooffset,retainedearningsshallbeadjusted.Alldirectexpensesrelatedtothebusinesscombinationspaidbytheacquirershallbeincludedincurrentprofitsandlossesuponoccurrence.(2)BusinesscombinationsnotundercommoncontrolBusinesscombinationsnotundercommoncontrolmeansenterprisesinvolvingbusinesscombinationarenotunderultimatecontrolbyonepartyorthesamemulti-partiesbeforeandaftercombination.Forbusinesscombinationsnotundercommoncontrol,thosewhoobtaincontrolofenterprisesinvolvingbusinesscombinationontheacquisitiondatearetheacquirerwhileotherenterprisesinvolvingbusinesscombinationaretheacquiree.Acquisitiondateisthedatethattheacquireractuallyobtainscontroloftheacquiree.Forbusinesscombinationsnotundercommoncontrol,thecostsofcombinationsincludetheassetstheacquirerpays,liabilitiestheacquirerbears,andthefairvalueoftheequitysecuritiesissuedonthedateofcombinationsfortheacquisitionofcontrolovertheacquiree.Thecostsofauditing,legalservices,evaluationconsulting,andothermanagementfeesincurredforbusinesscombinationsshallbeincludedincurrentprofitsandlosses.Thetransactioncostsoftheequitysecuritiesanddebtsecuritiesissuedbytheacquirershallbeincludedintheinitiallyconfirmedamountsofequitysecuritiesanddebtsecurities.Thecontingentconsiderationinvolvedshallbeincludedinthecostsofbusinesscombinations.If,within12monthsaftertheacquisition,thereisneworfurtherevidenceforconditionsthathavealreadybeenexistedontheacquisitionandthecontingentconsiderationshallbere-adjusted,thecombinationgoodwillshallalsobeadjustedaccordingly.Theacquirer’scostsofbusinesscombinationsanditsidentifiablenetassetsobtainedfrombusinesscombinationsshallbeassessedatthefairvaluesoftheacquisitiondate.Ifthecostsofbusinesscombinationswerehigherthantheidentifiablenetassetsoftheacquireeonthedateofthepurchase,thegapbetweenthemshallbeconfirmedasgoodwill.Ifthecostsofbusinesscombinationswerelowerthanthefairvaluesoftheidentifiablenetassetsoftheacquireeonthedateofthepurchase,theidentifiableassetsoftheacquiree,contingentliabilitiesofthefairvalues,andcostsofbusinesscombinationsshallallbereviewed.Afterreview,ifthecostsofbusinesscombinationswerestilllowerthanthefairvaluesoftheidentifiablenetassetsoftheacquiree,thegapbetweenthemshallbeincludedincurrentprofitsandlosses.Ifthedeductibletemporarydifferencestheacquirergetsfromtheacquireewerenoteligibletobeconfirmedasdeferredtaxasset,theyshallbeconfirmedprovidingthatwithin12monthsoftheacquisition,therewouldbeneworfurtherevidencefortheconditionsthathavealreadybeenexistedontheacquisitiondatethattheeconomicprofitsthedeductibletemporarydifferenceswouldbringtheacquireecouldbeachieved.Atthesametime,thegoodwillshallbereduced.Wherethegoodwillisinsufficienttobededucted,thegapbetweenthemasbeincludeincurrentprofitsandlosses.Apartfromtheaforementionedsituations,alldeductibletemporarydifferencesconfirmedtoberelevanttobusinesscombinationsshallbeincludedincurrentprofitsandlosses.Forbusinesscombinationsnotundercommoncontrolthatareachievedthroughmultiplesteps,whethertheycanberegardedaspackagedealsshallbeinaccordancewithDocumentNoticeNo.5oftheInterpretationofAccountingStandardsforBusinessEnterprisesoftheMinistryofFinance(C.K.[2012]No.19),andthestandardsof“packagedeals”setoutinArticle51oftheDocumentAccountingStandardforBusinessEnterprises–ConsolidationofFinancialStatementsNo.33(pleaserefertoNoteV,6"Methodsforpreparationofconsolidatedfinancialstatements"(2)).Incaseof"packagedeals",accountingprocessingshallbedonebyreferringtothedescriptionsinFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.86previousparagraphsofthissectionand22"Long-termequityinvestments"inNoteVherein;ifnot"packagedeals",accountingprocessingshallbedonebydistinguishingindividualfinancialstatementsfromconsolidatedfinancialstatements:Inindividualfinancialstatements,theinitialinvestmentcostsshallbethesumofthebookvalueoftheequityinvestmentoftheacquireeheldbeforetheacquisitiondateandthenewinvestmentcostsontheacquisitiondate;ifothercomprehensiveincomeisinvolvedintheequitiesoftheacquireebeforetheacquisitiondate,accountingprocessingshallbedoneforthecomprehensiveincomerelatedtothisinvestmentbyadoptingthesamebasisfordirectlydisposingofrelevantassetsorliabilitiesoftheacquireeduringthedisposalofthisinvestment(thatis,exceptforthecorrespondingsharesofthechangescausedbyre-measurementofthenetliabilitiesornetassetsofthedefinedbenefitplanbytheacquiree,whichareaccountedbytheequitymethod,othersshallbetransferredtothereturnoninvestmentofthecurrentperiod).Inconsolidatedfinancialstatements,theequitiesoftheacquireeheldbeforetheacquisitiondateshallbere-measuredatthefairvalueoftheequitiesontheacquisitiondate,andthedifferencebetweenthefairvalueandthebookvalueshallberecognizedasthereturnoninvestmentofthecurrentperiod;ifothercomprehensiveincomeisinvolvedintheequitiesoftheacquireebeforetheacquisitiondate,accountingprocessingshallbedoneforthecomprehensiveincomerelatedtothisinvestmentbyadoptingthesamebasisfordirectlydisposingofrelevantassetsorliabilitiesoftheacquiree(thatis,exceptforthecorrespondingsharesofthechangescausedbyre-measurementofthenetliabilitiesornetassetsofthedefinedbenefitplanbytheacquiree,whichareaccountedbytheequitymethod,othersshallbetransferredtothereturnoninvestmentofthecurrentperiod).6.Methodsforpreparationofconsolidatedfinancialstatements(1)PrinciplesofdeterminingthescopeofconsolidatedfinancialstatementsThescopeofconsolidationofconsolidatedfinancialstatementsshallbesubjecttothebasisofcontrol.Controlreferstothepowertheinvestorownsagainsttheinvestee,whichallowstheinvestortoenjoythevariablereturnbyattendingrelevantactivitiesheldbytheinvestee,andtobecapableofusingsuchpowertoaffecttheamountofreturn.ThescopeofconsolidationistheCompanyandallofitssubsidiaries.SubsidiariesrefertoentitiescontrolledbytheCompany.TheCompanyshallreassesswhetheritcontrolsaninvesteeiffactsandcircumstancesindicatethattherearechangestotherelevantelementsofcontrolasdefinedabove.(2)MethodsforpreparationofconsolidatedfinancialstatementsTheCompanyshallincludethesubsidiariesinthescopeofconsolidationfromthedateitacquiresthedefactocontroloverthenetassetsandthedecision-makingofproductionandoperationsofsuchsubsidiaries;accordingly,theCompanyshallterminateincludingtheminthescopeofconsolidationfromthedateitlosesthedefactocontrol.Intermsofsubsidiariesdisposedof,theoperatingresultsandcashflowsbeforethedisposaldatehavebeenincludedintheconsolidatedincomestatementsandtheconsolidatedcashflowstatementsappropriately;asforsubsidiariesdisposedofincurrentperiod,theopeningbalanceintheconsolidatedbalancesheetshallnotbeadjusted.Regardingsubsidiariesadded,whichareincorporatedbycombiningenterprisesnotcontrolledbythesamedefactocontroller,theoperatingresultsandcashflowsaftertheacquisitiondatehavebeenincludedintheconsolidatedincomestatementsandtheconsolidatedcashflowstatementsappropriately,andtheopeningandcomparativebalanceintheconsolidatedbalancesheetshallnotbeadjusted.Incaseofsubsidiariesadded,whichareincorporatedbycombiningenterprisescontrolledbythesamedefactocontroller,amongwhichtheCompanyabsorbsthecombinedparty,theoperatingresultsandcashflowsofthecombinedpartyfromthebeginningoftheperiodofcombinationtothecombinationdatehavebeenincludedintheconsolidatedincomeFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.87statementsandtheconsolidatedcashflowstatementsappropriately,andthecomparativebalanceintheconsolidatedbalancesheetshallbeadjustedsimultaneously.IncaseofinconsistenciesintheaccountingpoliciesorperiodsbetweensubsidiariesandtheCompanyduringpreparationofconsolidatedfinancialstatements,financialstatementsofsubsidiariesshallbeadjustedaccordingtotheaccountingpoliciesandperiodsadoptedbytheCompanywhennecessary.Forsubsidiariesacquiredbycombiningenterprisesnotcontrolledbythesamedefactocontroller,theirfinancialstatementsshallbeadjustedbasedonthefairvalueoftheidentifiablenetassetsontheacquisitiondate.Allmajorbusinesstransactionbalance,transactions,andunrealizedprofitoftheCompanyshallbeoffsetduringpreparationofconsolidatedfinancialstatements.Shareholders'equitiesofsubsidiariesandthepartofthenetprofitandlossofthecurrentperiodnotattributabletotheCompanyshallbepresentedseparatelyundertheshareholders'equitiesandthenetprofitintheconsolidatedfinancialstatementsasequitiesofminorityshareholdersandminorityshareholders'profitsandlosses.Sharesofequitiesofminorityshareholdersinthenetprofitandlossofthecurrentperiodofsubsidiariesshallbepresentedunderthe"minorityshareholders'profitsandlosses"intheconsolidatedincomestatement.Ifthelossofasubsidiarywhichissharedbyitsminorityshareholdersexceedstheminorityshareholders'shareintheopeningbalanceofthesubsidiary,theminorityinterestshallbereduced.Iftheparentcompanylosescontrolofasubsidiaryduetopartialdisposalofequityinvestmentorotherreasons,itshallre-measuretheremainingequityatfairvalueonthedateoflossofcontrol.Thesumofconsiderationobtainedfromequitydisposalandfairvalueoftheremainingequity,minusthedifferencebetweentheparentcompany'sshareofthesubsidiary'snetassetsthatiscontinuouslycalculatedfromtheacquisitiondate,shallberecognizedasinvestmentincomeforthereportingperiodwhenthelossofcontroltakesplace.Accountingprocessingshallbedonefortheothercomprehensiveincomerelatedtothisinvestmentinthesubsidiary'sequitiesbyadoptingthesamebasisfordirectlydisposingofrelevantassetsorliabilitiesoftheacquireeduringthelossofcontrol(thatis,exceptforthechangescausedbyre-measurementofthenetliabilitiesornetassetsofthedefinedbenefitplanbytheprevioussubsidiary,othersshallbetransferredtothereturnoninvestmentofthecurrentperiod).Afterthat,subsequentmeasurementshallbedonefortheremainingequityofthispartasperrelevantprovisionsintheAccountingStandardsforEnterprisesNo.2-Long-termEquityInvestmentortheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments.See"NoteV,22"or"NoteV,10"fordetails.IftheCompanydisposesofinvestmentsinasubsidiary'sequitiesbystepsviatransactionsuntilitlosescontrol,itshallcheckwhetherthesetransactionsfromdisposaloftheinvestmentsinthesubsidiary'sequitiestothelossofcontrolarepackagedeals.Iftheterms,conditions,andeconomiceffectsoftransactionsondisposingofequityinvestmentinthesubsidiaryconformtooneormoreofthefollowingcircumstances,thatmeansmultipletransactionsshouldbetreatedaspackagedealsinaccountingprocessing:1)Thosetransactionsarereachedatthesametimeoraftertakingintoconsiderationtheinfluenceofeachother;2)thosetransactionstogetherproduceacompletecommercialoutcome;3)theoccurrenceofonetransactiondependsontheoccurrenceofatleastoneothertransaction;4)onetransactionalonedoesnotseemtobeeconomical,butallthosetransactionsareeconomicalwhenareconsideredasawhole.Intermsoftransactionsthatarenotpackagedeals,accountingprocessingshallbedoneforeachtransactionfollowingtheprinciplesapplicabletothe"partialdisposaloflong-termequityinvestmentinasubsidiarywithoutlossofcontrol"orthe"lossofcontroloverasubsidiaryduetopartialdisposalofequityinvestmentorotherreasons"(seethepreviousparagraphfordetails).Ifthosetransactionsarepackagedeals,eachFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.88transactionshallbetreatedasatransactionthatresultsinlossofcontrolofthesubsidiaryinaccountingprocessing.However,thedifferencebetweeneachdisposalpricebeforelossofcontrolandtheparentcompany'sshareofthesubsidiary'snetassetscorrespondingtothedisposalinvestmentshallberecognizedasothercomprehensiveincomeintheconsolidatedfinancialstatementsand,afterlossofcontrol,transferredtotheprofitandlossofthecurrentreportingperiod.7.Classificationofjointoperationarrangementsandaccountingprocessingmethodsforjointoperations8.CriteriaforrecognitionofcashandcashequivalentsCashandcashequivalentsincludecashonhand,depositsthatcanbeusedforpaymentatanytime,andshort-term(duewithinthreemonthsfromtheacquisitiondate)investmentwithhighliquidityheldwhichiseasyconvertedcashinaknownamountwithsmallriskofvaluechanges.9.Translationoftransactionsandfinancialstatementsdenominatedinforeigncurrencies(1)MethodsfortranslationoftransactionsdenominatedinforeigncurrenciesAttheinitialrecognitionofforeigncurrencytransactionsoftheCompany,foreigncurrencywillbetranslatedintotheamountofstandardcurrencyforaccountingatthespotexchangerateoritsapproximateexchangerateonthetransactiondate.However,thebusinessofexchangeofforeigncurrenciesortransactionsrelatedtotheexchangeofforeigncurrencies,foreigncurrencywillbetranslatedintotheamountofstandardcurrencyforaccountingattheexchangerateactuallyadopted.(2)Methodsfortranslationofmonetaryandnon-monetaryitemsinforeigncurrenciesOnthebalancesheetdate,theforeigncurrencymonetaryitemsaretranslatedatthespotexchangerateonthatdate.Exchangedifferenceresultingfromthedifferencebetweenthespotexchangerateonthebalancesheetdateandthatattheinitialrecognitionoronthepreviousbalancesheetdateshallberecognizedastheprofitandlossofthecurrentperiod.Non-monetaryitemsthataremeasuredathistoricalcostinforeigncurrenciesshallstillbeconvertedatthespotexchangerateonthetransactiondatewiththeamountofstandardcurrencyforaccountingunchanged.Non-monetaryitemsthataremeasuredatfairvalueinforeigncurrenciesaretranslatedusingtheforeignexchangeratesatthedatethefairvalueisrecognized.Thedifferencebetweentheamountofstandardcurrencyforaccountingaftertranslationandtheoriginalamountofthestandardcurrencyforaccountingshallbetreatedasachangeinfairvalue(includingthechangeintheexchangerate)andrecognizedastheprofitandlossofthecurrentperiodorothercomprehensiveincome.(3)Methodsfortranslationofforeign-currencyfinancialstatementsForeign-currencyfinancialstatementsofoverseasoperationsshallbetranslatedintoRMBfinancialstatementsbythefollowingmethods:Theassetsandliabilitiesinthebalancesheetshallbeconvertedatthespotexchangerateonthebalancesheetdate;except"undistributedprofits",alltheotherowner'sequityitemsareconvertedatthespotexchangerateatthetimeofoccurrence.Incomeandexpenseitemsintheincomestatementshallbetranslatedusingtheforeignexchangeratesrulingatthedatesofthetransactions.Differenceresultingfromtranslationofforeign-currencyfinancialstatementsbythefollowingmethodsshallberecognizedasothercomprehensiveincome.Translationofcomparativefinancialstatementsshallbesubjecttotheaboveprovisions.10.FinancialinstrumentsWhentheCompanybecomesapartytoafinancialinstrumentcontract,itsfinancialinstrumentisFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.89confirmedtobeeitherfinancialassetsorfinancialliabilities.(1)Classification,recognition,andmeasurementoffinancialassetsAccordingtothebusinessmodelofmanagingfinancialassetsandthecontractualcashflowcharacteristicsoffinancialassets,theCompanyclassifiedfinancialassetsintothefollowingcategories:financialassetsmeasuredattheamortizedcost,financialassetsmeasuredatfairvaluethroughothercomprehensiveincomeandfinancialassetsmeasuredatfairvaluethroughprofitandlossofthecurrentperiod.Financialassetsaremeasuredatfairvalueuponinitialrecognition.Forfinancialassetsmeasuredatfairvaluethroughprofitandlossofthecurrentperiod,transactioncostsaredirectlyincludedinprofitandlossofthecurrentperiod.Forothertypesoffinancialassets,relatedtransactioncostsareincludedintheirinitialrecognizedamounts.Intermsoftheaccountsreceivableornotesreceivablearisingfromsellingproductsorprovidinglaborservicewithoutornotconsideringmajorfinancingcomponent,theCompanyshallregardthemastheinitialrecognitionamountattheexpectedconsiderationamountthatithasrightstocharge.1)AssetscarriedatamortizedcostWiththebusinessmodelwheretheCompanymanagesthefinancialassetscarriedatamortizedcost,theCompanyaimstochargethecontractcashflows,andthecharacteristicsofsuchcontractcashflowsofthiskindoffinancialassetsareconsistentwiththebasiclendingarrangements.Thatis,cashflowsgeneratedonspecifieddatesaresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Thiskindoffinancialassetsaresubsequentlymeasuredatamortizedcostusingtheeffectiveinterestmethod.Gainorlossarisingfromamortizationorimpairmentisrecognizedinprofitandlossofthecurrentperiod.2)FinancialassetsatfairvaluethroughothercomprehensiveincomeThebusinessmodelformanagingthefinancialassetsaimsatbothobtainingthecontractcashflowsandsellingthefinancialassets,andthecharacteristicsofsuchcontractcashflowsofthiskindoffinancialassetsareconsistentwiththebasiclendingarrangements.TheCompanymeasuresthiskindoffinancialassetsatfairvaluethroughothercomprehensiveincome,butrecognizestheimpairmentlossesorgains,exchangeprofitandloss,andinterestincomecalculatedbytheeffectiveinterestmethodastheprofitandlossofthecurrentperiod.Additionally,theCompanydesignatessomenon-tradableequityinstrumentsasfinancialassetsatfairvaluethroughothercomprehensiveincome.TheCompanyrecognizesrelevantdividendincomefromsuchfinancialassetsastheprofitandlossofthecurrentperiod,andchangesinfairvalueasothercomprehensiveincome.Whensuchfinancialassetsarederecognized,theaccumulatedgainsorlossespreviouslyrecognizedasothercomprehensiveincomeshallbetransferredfromothercomprehensiveincometoretainedearningsandnotrecognizedastheprofitandlossofthecurrentperiod.3)FinancialassetsatfairvaluethroughprofitandlossofthecurrentperiodTheabovefinancialassetsmeasuredatamortizedcostandfinancialassetsotherthanthosemeasuredatfairvaluethroughothercomprehensiveincomeareclassifiedasfinancialassetsatfairvaluethroughprofitandlossofthecurrentperiod.Moreover,atinitialrecognition,toeliminateorsignificantlyreduceaccountingmismatches,theCompanycandesignatesomefinancialassetsasfinancialassetsatfairvaluethroughprofitandlossofthecurrentperiod.Suchfinancialassetsshallbemeasuredatfairvalue,andchangesinfairvaluearerecognizedastheprofitandlossofthecurrentperiod.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.90(2)Classification,recognition,andmeasurementoffinancialliabilitiesAtinitialrecognition,financialliabilitiesareclassifiedintofinancialliabilitiesatfairvaluethroughprofitorlossandotherfinancialliabilities.Forfinancialliabilitiesatfairvaluethroughprofitandlossofthecurrentperiod,transactioncostsaredirectlyincludedinprofitandlossofthecurrentperiod.Forothertypesoffinancialliabilities,relatedtransactioncostsareincludedintheirinitialrecognizedamounts.1)FinancialliabilitiesatfairvaluethroughprofitandlossofthecurrentperiodFinancialliabilitiesatfairvaluethroughprofitandlossofthecurrentperiodincludetradablefinancialliabilities(includingderivativesbelongingtofinancialliabilities)andfinancialliabilitiesdesignatedtomeasuredatfairvaluethroughprofitandlossofthecurrentperiodatinitialrecognition.Tradablefinancialliabilities(includingderivativesthatarefinancialliabilities)aresubsequentlymeasuredatfairvalue,andchangesinfairvalue--exceptforthoserelatedtohedgingaccounting--arerecognizedasprofitandlossofthecurrentperiod.Intermsofthefinancialliabilitiesdesignatedatfairvaluethroughprofitorloss,thechangesinfairvalueresultingfromchangesinthecreditriskoftheCompanyshallberecognizedasothercomprehensiveincome;besides,whensuchliabilitiesarederecognized,theamountofaccumulativechangesinfairvalueresultingfromcreditriskchangesthatarerecognizedasothercomprehensiveincomeshallbetransferredtoretainedearnings.Otherchangesinfairvalueshallberecognizedastheprofitandlossofthecurrentperiod.Iftheprocessingofthecreditriskchangesinsuchfinancialliabilitiesbytheabovemethodswillresultinexpansionoftheaccountingmismatchintheprofitandloss,theCompanyshallrecognizeallgainsorlossesinsuchfinancialliabilities(includingtheamountsubjecttothecreditriskchangesoftheCompany)astheprofitandlossofthecurrentperiod.2)OtherfinancialliabilitiesExceptforthefinancialassettransfernotmeetingtheconditionsforderecognitionorthefinancialliabilitiesorfinancialguaranteecontractresultingfromcontinuousinvolvementinthetransferredfinancialassets,otherfinancialliabilitiesshallbeclassifiedintothefinancialliabilitiesmeasuredatamortizedcost,whichshallbesubsequentlymeasuredatamortizedcost,andthegainsorlossesresultingfromderecognitionoramortizationshallberecognizedastheprofitandlossofthecurrentperiod.(3)RecognitionbasisandmeasurementmethodoffinancialassettransferOnceoneofthefollowingconditionsismet,thefinancialassetsshallbederecognized:1)Thecontractrighttochargethecashflowsofthefinancialassetsisterminated;2)thefinancialassetshavebeentransferred,andalmostalltherisksandrewardsoftheownershipofthefinancialassetsaretransferredtothetransferee;3)thefinancialassetshavebeentransferred,andtheCompanyhasgivenupthecontroloverthefinancialassetsalthoughitdoesnottransferorretainalmostalltherisksandrewardsoftheownershipofthefinancialassets.IftheCompanyhasneithertransferrednorretainedalmostalltherisksandrewardsoftheownershipofthefinancialassets,andtheCompanydoesnotwaiveitscontrolofthefinancialassets,itshallrecognizetherelevantfinancialassetswithintheextentofitscontinuousinvolvementinthetransferredfinancialassetsandrecognizetherelevantliabilities.ThecontinuousinvolvementinthetransferredfinancialassetsreferstothelevelofriskwithwhichtheCompanyisfacedduetochangesinthefinancialassetvalues.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.91Whenoveralltransferoffinancialassetsmeetstheconditionsforderecognization,thebookvalueofthetransferredfinancialassetsandthedifferencebetweentheconsiderationreceivedduetotransferandtheaccumulativechangesinfairvaluethatisoriginallyrecognizedasothercomprehensiveincomeshallberecognizedastheprofitandlossofthecurrentperiod.Whenpartialtransferoffinancialassetsmeetstheconditionsforderecognization,thebookvalueofthetransferredfinancialassetsshallbeapportionedtothefairvaluebetweenthederecognizedpartandtherecognizedpart,andtheconsiderationreceivedduetotransferandthedifferencebetweentheaccumulativechangesinfairvaluethatisoriginallyrecognizedasothercomprehensiveincome,whichshallbeapportionedtothederecognizedpart,andtheapportionedthebookvalueasmentionedaboveshallberecognizedastheprofitandlossofthecurrentperiod.WhentheCompanysellsfinancialassetswithadditionalrecourseortransferstheendorsedfinancialassetsheld,itshallcheckwhetheralmostalltherisksandrewardsoftheownershipofthefinancialassetsaretransferred.IftheCompanyhastransferredalmostalltherisksandrewardsoftheownershipofthefinancialassetstothetransferee,itshallderecognizethefinancialassets;iftheCompanyretainsalmostalltherisksandrewardsoftheownershipofthefinancialassets,itshallnotderecognizethefinancialassets;iftheCompanyneithertransfersnorretainsalmostalltherisksandrewardsoftheownershipofthefinancialassets,itshalljudgewhetherithasretainedcontrolovertheassetsandconductaccountingprocessingfollowingtheprinciplesdescribedinpreviousparagraphs.(4)DerecognitionoffinancialliabilitiesIfcurrentobligationsofthefinancialliabilities(orsomeoftheliabilities)havebeenreleased,theCompanyshallderecognizethefinancialliabilities(orsomeoftheliabilities).WheretheCompany(borrower)andalendersignanagreementtoreplacetheexistingfinancialliabilitybywayofassumptionofnewfinancialliabilitywiththetermsofthenewfinancialliabilitysubstantiallydifferentfromthoseoftheexistingfinancialliability,itderecognizestheexistingfinancialliabilitywhilerecognizingthenewfinancialliability.Ifthecontracttermsoftheexistingfinancialliabilityaremateriallychangedinwhole(orinpart),theexistingfinancialliabilitywillbederecognized,andthefinancialliabilityafterchangesoftermswillberecognizedasanewfinancialliability.Ifafinancialliabilityisderecognizedinwhole(orinpart),thedifferencebetweenthebookvalueofthederecognizedportionandtheconsiderationpaid(includingthenon-cashassetstransferredoutorthenewfinancialliabilityassumed)isrecognizedastheprofitandlossofthecurrentperiod.(5)OffsettingfinancialassetsandfinancialliabilitiesWhentheCompanyhasthestatutoryrighttooffsettherecognizedamountoffinancialassetsandfinancialliabilities,andthisstatutoryrightiscurrentlyenforceable,andtheCompanyplanstonetthefinancialassetsorsimultaneouslyrealizethefinancialassetsandpayoffthefinancialliabilities,thefinancialassetsandfinancialliabilitiesarepresentedinthebalancesheetatthenetamountafteroffsettingeachother.Inaddition,financialassetsandfinancialliabilitiesarepresentedseparatelyinthebalancesheetandarenotoffsetagainsteachother.(6)MethodsfordeterminingthefairvalueoffinancialassetsandfinancialliabilitiesThefairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Ifthereareactivemarketsforafinancialinstrument,theCompanywillestablishitsfairvaluebyusingquotesintheactivemarkets.Quotesinactivemarketsrefertopricesthatarereadilyavailableonaregularbasisfromexchanges,brokers,tradeassociations,pricingserviceinstitutions,etc.,andrepresentthepricesofmarkettransactionsthatactuallyoccurinafairtrade.Ifthereisnoactivemarket,theCompanyFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.92establishesfairvaluebyusingvaluationtechniques.Valuationtechniquesincludereferringtopriceusedinrecentmarkettransactionsbetweenknowledgeable,willingparties,takingintoaccountthecurrentfairvalueofotherfinancialinstrumentsthatissubstantiallythesame,discountedcashflowanalysisandoptionpricingmodels,etc.Duringvaluation,theCompanyadoptsthevaluationtechniquesthatareapplicableundercurrentcircumstancesandthataresupportedbysufficientavailabledataandotherinformation,andselectstheinputvaluesthatareconsistentwiththecharacteristicsoftheassetsorliabilitiesconsideredbythemarketparticipantsinthetransactionoftherelevantassetsorliabilities,andpreferentiallyusestherelevantobservableinputs.Unobservableinputvaluesareusedwheretherelevantobservableinputvaluesarenotavailableorarenotpracticable.(7)EquityinstrumentsAnequityinstrumentreferstoacontractthatcanprovetheCompanyownstheremainingequityintheassetsafterdeductingallliabilities.TheCompany'sissuance(includingrefinancing),repurchase,salesorcancellationofequityinstrumentsaretreatedaschangesinequities,andtransactioncostsrelatedtoequitytransactionsaredeductedfromequities.TheCompanydoesnotrecognizechangesinthefairvalueofequityinstruments.Thedistributionofdividends(includingthe"interest"generatedbytheinstrumentsclassifiedasequityinstruments)duringtheexistenceoftheCompany'sequityinstrumentsshallbetreatedasprofitdistribution.(8)ImpairmentoffinancialassetsThefinancialassetsforwhichtheCompanyneedstorecognizeimpairmentlossesarefinancialassetsmeasuredatamortizedcost,debtinstrumentinvestmentsmeasuredatfairvaluethroughothercomprehensiveincome,andleasereceivable,mainlyincludingnotesreceivable,accountsreceivable,andotherreceivables.Inaddition,forsomefinancialguaranteecontracts,impairmentreservesaresetasideandcreditimpairmentlossesarerecognizedaspertheaccountingpoliciesdescribedinthissection.1)MethodsforrecognizingimpairmentreservesBasedontheexpectedcreditloss,theCompanysetsasideprovisionsforimpairmentoftheaboveitemsbymethods(generalmethodorsimplifiedmethod)formeasuringexpectedcreditlossapplicabletothemandrecognizescreditimpairmentloss.Creditlossreferstothedifferencebetweenallcontractcashflowreceivablediscountedattheoriginaleffectiveinterestrateunderthecontractandallexpectedcashflowreceivable,i.e.,thepresentvalueofallcashshortages.Specifically,forfinancialassetsthathavebeencredit-impairedatthetimeofpurchaseororigin,theCompanydiscountsthefinancialassetsatthecredit-adjustedactualinterestrate.ThegeneralmethodformeasuringexpectedcreditlossmeansthattheCompanyassessesoneachbalancesheetdatewhetherthecreditriskoffinancialassetshasincreasedsignificantlysincetheinitialrecognition.Ifyes,theCompanymeasureslossreservesatanamountequivalenttotheexpectedcreditlossintheentireduration;ifnot,theCompanymeasureslossreservesatanamountequivalenttotheexpectedcreditlossinthenext12months.TheCompanyconsidersallreasonableandevidence-basedinformation,includingforward-lookinginformation,whenassessingexpectedcreditloss;Asforfinancialinstrumentswithlowcreditriskonthebalancesheetdate,theCompanymeasuresthelossreservesaccordingtotheexpectedcreditlossinthefuture12months,assumingthatitsFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.93creditriskhashadnosignificantincreasesinceitsinitialrecognition.TheCompanychoosestomeasurelossreservesaccordingtotheexpectedcreditlossinthenext12monthsorintheentiredurationbasedonwhetherthecreditriskhasincreasedsignificantlysinceinitialrecognition.2)StandardsforjudgingwhethercreditriskhasincreasedsignificantlysinceinitialrecognitionIftheprobabilityofdefault(PD)ofafinancialassetintheexpecteddurationrecognizedonthebalancesheetdateissignificantlyhigherthanthatintheexpecteddurationrecognizedatthetimeofinitialrecognition,thecreditriskofthefinancialassethasincreasedsignificantly.Exceptforspecialcircumstances,theCompanydetermineswhethercreditriskhasincreasedsignificantlysinceinitialrecognitionbyreasonablyassessingthechangesinthePDintheentiredurationwiththechangesinthecoming12months.3)PortfoliomethodforassessingexpectedcreditriskbasedonportfoliosTheCompanyassessesindividualcreditriskoffinancialassetswithsignificantlydifferentcreditrisks.Examplesincludethefollowing:Receivablesfromrelatedparties;receivablesthathavedisputeswithcounterpartiesorthoseinvolvedinlitigationorarbitration;thereareobvioussignsthatthedebtorisveryunlikelytofulfilltherepaymentobligation.Inadditiontofinancialassetswhoseindividualcreditriskisassessed,theCompanydividesfinancialassetsintodifferentgroupsbasedoncommonriskcharacteristics,andassessescreditriskonaportfoliobasis.4)AccountingprocessingmethodsforimpairmentoffinancialassetsAttheendofthereportingperiod,theCompanycalculatestheexpectedcreditlossoffinancialassets.Iftheexpectedcreditlossisgreaterthanthebookvalueofitscurrentimpairmentprovisions,thedifferenceisrecognizedasanimpairmentloss;ifitislessthanthecurrentbookvalueoftheimpairmentprovisions,thedifferenceisrecognizedasimpairmentgains.5)Methodsforrecognizingcreditlossesoffinancialassetsa.NotesreceivableTheCompanymeasureslossreservesfornotesreceivableatanamountequivalenttoexpectedcreditlossintheentireduration.TheCompanydividesnotesreceivableintodifferentportfoliosbasedontheircreditriskcharacteristics:ItemBasisfordeterminingtheportfolioBanker'sacceptanceAcceptorsarebankswithlowcreditrisk.TradeacceptanceTheagingoftradeacceptanceisusedascreditriskcharacteristics.b.AccountsreceivableTheCompanymeasureslossreservesforaccountsreceivablewithoutmajorfinancingcomponentatanamountequivalenttoexpectedcreditlossintheentireduration.TheCompanymeasureslossreservesforaccountsreceivableandleasereceivableswithmajorfinancingcomponentatanamountequivalenttoexpectedcreditlossintheduration.Exceptforaccountsreceivablewhoseindividualcreditriskisassessed,theCompanydividesaccountsreceivableintodifferentportfoliosbasedontheircreditriskcharacteristics:ItemBasisfordeterminingtheportfolioFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.94AgingportfolioTheagingofaccountsreceivableisusedascreditriskcharacteristics.RelatedpartyportfolioProceedsofrelatedpartieswithinthescopeofconsolidation.c.OtherreceivablesTheCompanyadoptstheamountequivalenttotheexpectedcreditlossinthecoming12monthsorintheentiredurationtomeasureimpairmentlossesbasedonwhetherthecreditriskofotherreceivableshasincreasedsignificantlysinceinitialrecognition.Exceptforotherreceivableswhoseindividualcreditriskisassessed,theCompanydividesotherreceivablesintodifferentportfoliosbasedontheircreditriskcharacteristics:ItemBasisfordeterminingtheportfolioAgingportfolioTheagingofotherreceivablesisusedascreditriskcharacteristics.RelatedpartyportfolioProceedsofrelatedpartieswithinthescopeofconsolidation.11.NotesreceivableSee"SectionXI"-"V.SignificantAccountingPoliciesandAccountingEstimates"-"10.Financialinstruments"fordetails.12.AccountsreceivableSee"SectionXI"-"V.SignificantAccountingPoliciesandAccountingEstimates"-"10.Financialinstruments"fordetails.13.AccountsreceivablefinancingNone14.OtherreceivablesRecognitionmethodsandaccountingprocessingmethodsforexpectedcreditlossinotherreceivablesSee"SectionXI"-"V.SignificantAccountingPoliciesandAccountingEstimates"-"10.Financialinstruments"fordetails.15.Inventories(1)ClassificationofinventoriesInventoriesmainlyincluderawmaterials,goodsinprocess,materialsforconsignedprocessing,commoditystocks,packages,andlow-valueconsumables.(2)PricingmethodsforinventoryacquisitionanddeliveryInventoriesarepricedatactualcostwhentheyareacquired.Inventorycostsincludetheprocurementcost,processingcost,andothercosts.Inventoriesarepricedbytheweightedaveragemethodduringreceiptanddelivery.(3)MethodsforrecognitionofthenetrealizablevalueofinventoriesandtheprovisionsforimpairmentofinventoriesThenetrealizablevaluereferstotheamountoftheestimatedsellingpriceoftheinventoryminustheestimatedcost,estimatedsellingexpenses,andrelatedtaxesandfeesatthetimeofcompletionFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.95indailyactivities.Whenrecognizingthenetrealizablevalueofinventoriesbasedonthesubstantialevidenceobtained,theCompanyalsoconsidersthepurposeofholdingtheinventoriesandtheimpactonmattersafterthebalancesheetdate.Onthebalancesheetdate,inventoriesaremeasuredatthelowerofcostsandthenetrealizablevalue.Whenthenetrealizablevalueislowerthancosts,theCompanysetsasideprovisionsforinventoryimpairment.Provisionsforinventoryimpairmentaresetasidebasedonthedifferencebetweenthecostofindividualinventoryitemanditsnetrealizablevalue.Afterprovisionsfortheinventoryimpairmentaresetaside,iftheinfluencingfactorsinpreviouswrite-downoftheinventoryvaluedisappear,causingthenetrealizablevalueoftheinventorytobehigherthanitsbookvalue,itshallbereversedwithintheamountoftheprovisionsforinventoryimpairmentthathavebeensetasideandrecognizedastheprofitandlossofthecurrentperiod.(4)Theperpetualinventorysystemisadoptedfortheinventories.(5)Amortizationmethodforlow-valueconsumablesandpackagesTheone-timeamortizationmethodisadoptedforlow-valueconsumablesandpackagesuponreceipt.16.ContractassetsNone17.ContractcostsNone18.AssetsheldforsaleTheCompanyclassifiesnon-currentassetsoradisposalgroupasheldforsale(includingexchangeofnon-monetaryassetswithcommercialsubstance,thesamebelow)iftheirbookvaluesarerecoveredprincipallythroughdisposalratherthanthroughcontinuinguse.Specifically,thefollowingconditionsshallbemetsimultaneously:Acertainnon-currentassetordisposalgroupcanbesoldimmediatelyunderthecurrentconditionsaccordingtothepracticeofsellingsuchassetsordisposalgroupsinsimilartransactions;theCompanyhasmadearesolutionofanofferandobtainedthepurchasecommitment;thesaleisexpectedtobecompletedwithinoneyear.Amongthem,thedisposalgroupreferstoagroupofassetsthataredisposedofasawholethroughsaleorothermeansinatransaction,andtheliabilitiesdirectlyrelatedtotheseassetsthataretransferredinthetransaction.Iftheassetgrouporthecombinationofassetgroupstowhichthegoodwill(obtainedfrombusinesscombination)hasbeenallocatedinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.8--ImpairmentofAssets,thedisposalgroupshallincludethegoodwillallocatedtoit.Duringinitialmeasurementorre-measurementofthenon-currentassetsanddisposalgroupsclassifiedintoheld-for-saleassetsonthebalancesheetdate,ifthebookvalueofsuchassetsishigherthanthenetvaluedeductingthecostofoffer,thebookvalueiswrittendowntotherecoverableamountbytheCompany,thewritten-downamountisrecognizedasprofitandlossofthecurrentperiodandimpairmentprovisionsaresetasideatthesametime.Forthedisposalgroup,therecognizedassetimpairmentlossisfirstdeductedfromthebookvalueofthegoodwillinthedisposalgroup,andthendeductedinproportionfromthebookvalueofnon-currentassetsspecifiedintheapplicableAccountingStandardsforBusinessEnterprisesNo.42-Non-CurrentAssetsandDisposalGroupsHeldforSaleandDiscontinuedOperations("StandardsforAssetsHeldforSale").IfthefairvalueofthedisposalgroupheldforsaleonthesubsequentbalancesheetdateincreasesFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.96afterdeductingthesellingexpenses,thepreviouslywrittendownamountshallberestored,andreversedwithintheamountoftheassetimpairmentlossesrecognizedfornon-currentassetsaspertheStandardsforAssetsHeldforSaleapplicableaftertheassetsareclassifiedintothoseheldforsale,andthereversedamountshallberecognizedastheprofitandlossofthecurrentperiod.Besides,thebookvalueofthereversedamountshallbeincreasedinproportionaccordingtotheproportionofthebookvalueofthenon-currentassetsspecifiedintheStandardsforAssetsHeldforSaleapplicabletothoseexceptforthegoodwillinthedisposalgroup.Thebookvalueofthegoodwillthathasbeendeducted,andtheassetimpairmentlossesrecognizedbeforethenon-currentassetsareclassifiedintoassetsheldforsaleaspertheStandardsforAssetsHeldforSaleshallnotbereversed.Non-currentassetsheldforsaleandnon-currentassetsinthedisposalgrouparenotsubjecttodepreciationoramortization.Interestandotherexpensesonliabilitiesinthedisposalgroupheldforsalecontinuetoberecognized.Whenthenon-currentassetsordisposalgroupnolongermeetstheconditionsforclassificationintotheassetsheldforsale,theCompanynolongerclassifiesthemintothecategoryorremovesthenon-currentassetsfromthedisposalgroupheldforsale,andmeasuresthematthelowerofthefollowingtwo:(1)Intermsofthebookvaluebeforeclassificationintoassetsheldforsale,themeasurementstandardistheamountafteradjustmentaccordingtothedepreciation,amortization,orimpairmentthatshouldhavebeenrecognizedundertheassumptionthattheyarenotclassifiedintoassetsheldforsale;and(2)therecoverableamount.19.Investmentsincreditor'srightsNone20.Otherinvestmentsincreditor'srightsNone21.Long-termreceivablesNone22.Long-termequityinvestmentsThelong-termequityinvestmentshereinrefertothelong-termequityinvestmentsinwhichtheCompanyhascontrol,jointcontrol,orsignificantinfluenceontheinvestee.Long-termequityinvestmentswheretheCompanyhasnocontrol,jointcontrol,orsignificantinfluenceontheinvesteeareaccountedasfinancialassetsmeasuredatfairvaluethroughprofitandlossofthecurrentperiod.Amongthem,asforthosethatarenon-tradable,theCompanymaychoosetodesignatethemasthefinancialassetsmeasuredatfairvaluethroughothercomprehensiveincomeforaccountingduringinitialrecognition.See"NoteV,10"fortheirdetailedaccountingpolicies.Jointcontrolreferstothecommoncontroloveraparticulararrangementaccordingtorelevantagreement,andthatthedecisionsonrelevantactivitiesundersucharrangementaresubjecttotheunanimousconsentfromthepartiessharingthejointcontrol.Significantinfluencemeanshavingthepowertoparticipateinthefinancialandoperatingpolicydecision-makingoftheinvestee,butcannotcontrolor,togetherwithotherparties,jointlycontroltheformulationofthesepolicies.(1)DeterminationofinvestmentcostForlong-termequityinvestmentsobtainedfromcombinationofenterprisesundercommoncontrol,theshareofthecombinedparty'sowner'sequityinthebookvalueoftheconsolidatedfinancialstatementsofthefinalcontrollingpartywhichisacquiredonthecombinationdayshallberegardedFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.97astheinitialinvestmentcostforlong-termequityinvestments.Thecapitalreservesshallbeadjustedifthereisdifferencebetweentheinitialinvestmentcostoflong-termequityinvestmentandthecashpaid,thetransferrednon-cashassets,andthebookvalueofthedebtsassumed;ifthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.Iftheequitysecuritiesissuedareusedasthecombinationconsideration,theshareofthecombinedparty'sowner'sequityinthebookvalueoftheconsolidatedfinancialstatementsofthefinalcontrollingpartywhichisacquiredonthecombinationdayshallberegardedastheinitialinvestmentcostforlong-termequityinvestments;thetotalbookvalueofthesharesissuedshallbethesharecapital;thecapitalreservesshallbeadjustedifthereisdifferencebetweentheinitialinvestmentcostoflong-termequityinvestmentsandthetotalbookvalueofthesharesissued;ifthecapitalreservesareinsufficienttobalancethedifference,retainedearningsshallbeadjusted.Forlong-termequityinvestmentsobtainedfromcombinationofenterprisesunderdifferentcontrol,thecombinationcostsontheacquisitiondateshallbeusedastheinitialinvestmentcostsofthelong-termequityinvestment;thecombinationcostsincludethesumoftheassetspaidbytheacquirer,theliabilitiesincurredorassumed,andthefairvalueoftheequitysecuritiesissued.Intermediaryexpensessuchasauditing,legalservices,assessmentandconsultingandotherrelatedmanagementexpensesincurredbythecombiningpartyoracquirerforthebusinesscombinationshallberecognizedastheprofitandlossofthecurrentperiod.Otherequityinvestmentsexceptforlong-termequityinvestmentsformedviabusinesscombinationareinitiallymeasuredatcost.Subjecttothewaythelong-termequityinvestmentsareobtained,thecostsshallberecognizedbasedonthecashactuallypaidbytheCompanyforacquisition,thefairvalueoftheequitysecuritiesissuedbytheCompany,thevalueagreedintheinvestmentcontractoragreement,thefairvalueororiginalbookvalueoftheassetsswappedoutinanon-monetaryassetexchangetransaction,andthefairvalueofthelong-termequityinvestmentitself.Expenses,taxes,andothernecessaryexpendituresdirectlyrelatedtoacquisitionoflong-termequityinvestmentsarealsorecognizedasinvestmentcosts.(2)SubsequentmeasurementandrecognitionofprofitandlossIftheCompanyhascommoncontrolorsignificantinfluenceovertheinvestee(exceptforconstitutingco-proprietors),thelong-termequityinvestmentshallbeaccountedforbyusingtheequitymethod.Additionally,applyingthecostmethodtotheCompany'sfinancialstatementscanmakecontrolledlong-termequityinvestmentsintheinvestee.1)Long-termequityinvestmentsaccountedforusingthecostmethodWhenusingcostmethod,thelong-termequityinvestmentsarecalculatedaccordingtotheinitialinvestmentcost.Intheeventthattheinvestmentisaddedorrecovered,thecostofthelong-termequityinvestmentsshallbeadjusted.Withtheexceptionofthepriceactuallypaidattheacquisitionofinvestmentorcashdividendsorprofitsincludedinconsideration,declaredbutnotissuedyet,thereturnoninvestmentofthecurrentperiodshallberecognizedaccordingtothecashdividendsorprofitsdeclaredtobeissuedbytheinvestee.2)Long-termequityinvestmentsaccountedforusingtheequitymethodWhenusingequitymethod,iftheinitialinvestmentcostoflong-termequityinvestmentsisgreaterthanthefairvalueshareoftheidentifiablenetassetsentitledoftheinvesteeatthetimeofinvestment,theinitialinvestmentofthelong-termequityinvestmentsshallnotbeadjusted.Iftheinitialinvestmentcostoflong-termequityinvestmentsislowerthanthefairvalueshareoftheidentifiablenetassetsentitledoftheinvesteeatthetimeofinvestment,thedifferenceshallberecognizedasprofitandlossofthecurrentperiodandthecostofthelong-termequityinvestmentsFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.98shallbeadjustedatthesametime.Whenusingequitymethod,returnoninvestmentandothercomprehensiveincomeshallberespectivelydeterminedbasedontheshareofnetprofitorlossandothercomprehensiveincomerealizedbytheinvesteethatshallbeattributableorassumedandthebookvalueoflong-termequityinvestmentsshallbeadjusted.Attributableshareshallbecalculatedbasedontheprofitorcashdividendsdeclaredbytheinvesteeandthebookvalueoflong-termequityinvestmentsshallbeaccordinglydecreased.Inrespecttootherchangesofowner'sequityoftheinvesteeinadditiontonetprofitorloss,othercomprehensiveincomeandprofitdistribution,thebookvalueoflong-termequityinvestmentsshallbeadjustedandrecognizedascapitalsurplus.Whenconfirmingtheshareoftheinvestee'snetprofitandloss,theCompanyshallconfirmtheinvestee'snetprofitafteradjustmentbasedonthefairvalueoftheidentifiablenetassetsoftheinvesteeattheacquisitionoftheinvestment.WheretheaccountingpolicyandaccountingperiodadoptedbytheinvesteediffersfromthoseoftheCompany,theinvestee'sfinancialstatementsshallbeadjustedaccordingtotheCompany'saccountingpolicyandaccountingperiod,andthereturnoninvestmentandothercomprehensiveincomeshallberecognizedaccordingly.WherethetransactionsbetweentheCompanyandtheassociatesandjointventures,andtheassetsthatareinvestedorsolddonotconstitutebusiness,unrealizedinternaltransactionprofitsandlossesincurredbetweentheCompanyandtheassociatesandjointventuresshallbeoffsetwiththepartattributabletotheCompanywhichiscalculatedonaduepro-ratabasis,andthereturnoninvestmentshallberecognizedonthisbasis.However,unrealizedinternaltransactionlossesincurredbetweentheCompanyandtheinvesteesshallnotbeoffsetiftheyfallundertheimpairmentlossesonassetstransferred.Whenconfirmingthelimitofnetlossincurredbytheinvestee,thelimitistheextentthatthebookvalueofthelong-termequityinvestmentsandotherlong-termequitythatsubstantiallyconstitutesanetinvestmentintheinvestmenttargetiswrittendowntozero.Additionally,iftheCompanyhasobligationstoassumeadditionallossesoftheinvestee,accruedliabilitiesarerecognizedaccordingtotheexpectedobligation,andrecognizedasinvestmentlossesfortheperiod.Wheretheinvesteerecordsnetprofitinthefuture,theCompanyresumesandrecognizestheprofit-sharingamountaftersuchamountmakesuptheunrecognizedloss-sharingamount.23.InvestmentrealestateMeasurementmodelforinvestmentrealestateMeasurementbythecostmethodDepreciationoramortizationmethodInvestmentpropertiesareheldtogeneraterentalincomeorearncapitalgainsorbothandisnotoccupied.Investmentpropertiesincludelanduserightsleasedout,landuserightsheldfortransferafterappreciation,buildingsleasedout,etc.Investmentrealestateisinitiallymeasuredatcost.Subsequentcostsareincludedintheinvestmentrealestate'sbookvalue,onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheCompanyandthecostoftheitemcanbemeasuredreliably;Othersubsequentexpensesarerecognizedasprofitandlossofthecurrentperiodwhenincurred.TheCompanyadoptsthecostmodelforsubsequentmeasurementofinvestmentrealestate,anddepreciatesoramortizesthebuildingbasedonitsexpectedservicelifeorlanduseright.Impairmenttestmethodandimpairmentprovisionmethodforinvestmentrealestatearedetailedin"NoteV,31".Investmentpropertiesarederecognizedwhentheyaredisposedof,orpermanentlywithdrawnfromFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.99useanditisexpectedthatnoeconomicbenefitcanbegeneratedfromitsdisposal.Theincomefromselling,transferring,writingoffordestroyinginvestmentrealestate,lessitsbookvalueandrelevanttaxesandfees,isrecognizedasprofitandlossofthecurrentperiod.24.Fixedassets(1)RecognitionconditionsFixedassetsaretangibleassetswithausefullifeofmorethanoneaccountingyearthatareheldforproductionorsupplyofgoodsorlaborservices,forrentaltothirdparties,orforuseintheorganizations.FixedassetsshallonlyberecognizedwhenrelevanteconomicinterestmayflowintotheCompanyandcoststhereofcanbereliablymeasured.Fixedassetsshallbeinitiallymeasuredatcostandbytakingintoaccounttheimpactofestimateddisposalexpense.(2)DepreciationmethodTypeDepreciationmethodDepreciationlifeResidualvaluerateAnnualdepreciationratePropertiesandbuildingsStraight-linedepreciation20yearsand30years5%and10%3.00%,3.17%,4.50%and4.75%EquipmentStraight-linedepreciation10yearsto20years5%and10%4.50%,4.75%to9.0%,9.50%MotorvehiclesStraight-linedepreciation5years,8yearsand14years5%and10%6.43%,6.79%,11.25%,11.88%,18.00%and19.00%OfficeequipmentStraight-linedepreciation5yearsand8years5%and10%11.25%,11.88%,18.00%and19.00%ProductionequipmentStraight-linedepreciation1yearto5years5%and10%18.00%,19.00%,30.00%,31.67%,45.00%and47.50%Estimatedresidualvaluereferstothecurrentamountwhere,supposedtheservicelifeofafixedassethasexpiredanditisintheexpectedstatusofsuchexpiration,theCompanyobtainsfromthedisposalofsuchassetaftertheestimateddisposalexpenseisdeducted.(3)Determinationbasis,pricingmethodanddepreciationmethodoffixedassetsacquiredunderfinanceleasesLeasesofassetswheresubstantiallyalltherisksandrewardsofownershiphavebeentransferredareclassifiedasfinanceleases.mayormaynoteventuallybetransferred.Thefixedassetleasedinthroughfinanceleasesadoptsthesamedepreciationpolicyforthefinanceleasedassetsasthoseforwhichithastitlerights.Ifthefixedassetcanbereasonablyascertainedthattheownershipoftheassetleasedcanbeobtainedbytheexpirationofthetenancy,theassetisdepreciatedoveritsservicelife;ifnot,theassetisdepreciatedovertheshorterofthetenancyandtheservicelifeoftheleasedasset.25.ConstructioninprocessConstructioninprogressismeasuredatactualprojectexpenditure,comprisingprojectexpenditureincurredduringconstructionandothernecessarycostincurred.TheCompany'sconstructioninprogressistransferredtofixedassetswhentheassetsarereadyfortheirintendeduse.Iftheconstructedfixedassetshavereachedtheexpectedusablestatusbuthavenotyetcompletedthefinalaccountforcompletedproject,theyshallberecognizedasfixedassetsaccordingtotheestimatedvalue,andaccrueddepreciation.AfterthecompletionofthefinalFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.100accountforcompletedproject,theoriginalestimatedvalueisadjustedaccordingtotheactualcost,buttheoriginalaccrueddepreciationamountisnotadjusted.Impairmenttestmethodandimpairmentprovisionmethodforconstructioninprogressaredetailedin"NoteV,31".26.BorrowingcostsBorrowingcostsincludeinterestonborrowings,amortizationsofdiscountsorpremiums,incidentalexpenses,exchangedifferenceresultingfromforeign-currencyborrowings,etc.Theborrowingcoststhatcanbedirectlyattributabletotheacquisition,constructionorproductionofanasseteligibleforcapitalizationshallbecapitalizedifthecapitalexpenditureshavebeenincurred,theborrowingcostshavebeenincurred,orthenecessarypurchase,constructionorproductionactivitiestomaketheassetsreachtheexpectedavailableormarketablestatehavebegun.Whentheassetswiththepurchase,constructionorproductionmeetingthecapitalizationconditionsreachtheexpectedavailableormarketablestate,theyceasetobecapitalized.Anyotherborrowingcostsarerecognizedasanexpenseintheperiodwhentheyareincurred.Theamountofinterestthatshallbecapitalizedisdeterminedbasedontheinterestexpensesincurredintheperiodwhenaspecificallyborrowedfundisobtainedlessanyincomeearnedontheunusedborrowingfundasadepositinabankorasatemporaryinvestment.Wherefundsareborrowedforageneralpurpose,theamountofinterestthatshallbecapitalizedisdeterminedbymultiplyingthepartoftheaccumulativeassetdisbursementsinexcessoftheweightedaverageassetdisbursementforthespecificallyborrowedfundbythecapitalizationrateofthegeneralborrowingused.Thecapitalizationrateistheweightedaverageinterestratesapplicabletothegeneral-purposeborrowings.Duringthecapitalization,allexchangedifferencesarisingfromearmarkedforeign-currencyborrowingsshallbecapitalized;exchangedifferencesarisingfromgeneral-purposeforeign-currencyborrowingsshallberecognizedasprofitandlossofthecurrentperiod.Assetseligibleforcapitalizationrefertoassetssuchasfixedassets,investmentrealestatesandinventoriesthatcanreachtheexpectedavailableormarketablestatusafteralongperiodofpurchase,constructionorproductionactivities.Iftheacquisition,constructionorproductionofanasseteligibleforcapitalizationiscontinuouslysuspendedforoverthreemonthsforabnormalreasons,capitalizationoftheborrowingcostsshallbesuspended,untiltheacquisition,constructionorproductionoftheassetisresumed.27.BiologicalassetsNone28.Oil&gasassetsNone29.Right-of-useassetsNone30.Intangibleassets(1)Pricingmethod,servicelife,andimpairmenttestIntangibleassetsrefertoidentifiablenon-monetaryassetswithoutphysicalsubstanceownedorcontrolledbytheCompany.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.101Intangibleassetsareinitiallymeasuredatcost.Costsareincludedinintangibleassets'bookvalue,onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheCompanyandthecostoftheitemcanbemeasuredreliably.Theexpensesonotheritemsarerecognizedasprofitandlossofthecurrentperiodwhenincurred.Landuserightsacquiredaregenerallyaccountedforasintangibleassets.Withrespecttoself-builtbuildingsincludingplants,therelevantlanduserightexpensesandbuildings'constructioncostsareaccountedforasintangibleassetsandfixedassets,respectively.Thepricepaidforthehouseandbuildingpurchasedaredistributedbetweenthelanduserightandthebuilding.Ifitisdifficulttodistribute,itshallallbeincludedinfixedassets.Fromthebeginningofuseofintangibleassetswithfiniteservicelife,theaccumulatedamountoftheoriginalvaluelessestimatednetresidualvalueandtheprovisionsforassetimpairmentsetasideshallbeamortizedevenlyinstagesbystraight-linemethodovertheirservicelife.Intangibleassetswithuncertainservicelivesarenotamortized.TheCompanyreviewstheservicelifeandamortizationmethodofintangibleassetwithfiniteservicelifeattheendofthereportingperiod,andachangetherein(ifany)shallbeaccountedforasachangeinaccountingestimates.Additionally,theCompanyreviewstheservicelifeandamortizationmethodofintangibleassetwithuncertainservicelife.Ifthereisevidencethattheperiodwhenitbringseconomicbenefitstotheenterpriseisforeseeable,itsservicelifeshallbeestimatedanditisamortizedaccordingtotheamortizationpolicyforintangibleassetswithlimitedservicelife.ImpairmenttestmethodandimpairmentprovisionmethodforintangibleassetsImpairmenttestmethodandimpairmentprovisionmethodforintangibleassetsaredetailedin"NoteV,31".(2)AccountingpolicyforexpenditureoninternalresearchanddevelopmentTheCompanyclassifiestheexpenditureonaninternalresearchanddevelopmentprojectintoexpenditureontheresearchphaseandexpenditureonthedevelopmentphase.Expenditureontheresearchphaseisrecognizedasprofitandlossofthecurrentperiodwhenincurred.Expenditureonthedevelopmentphaseisrecognizedintangibleassetwhenallthefollowingcriteriaaremet,whileexpenditureinthedevelopmentphasethatdoesnotmeetthefollowingcriteriaisrecognizedasprofitandlossofthecurrentperiodwhenincurred.1)thetechnicalfeasibilityofcompletingtheintangibleassetsothatitwillbeavailableforuseorsale;2)theintentiontocompletetheintangibleassetanduseorsellit;3)howtheintangibleassetwillgenerateprobablefutureeconomicbenefits.Amongotherthings,theCompanycandemonstratetheexistenceofamarketfortheoutputoftheintangibleassetortheintangibleassetitselfor,ifitistobeusedinternally,theusefulnessoftheintangibleasset;4)theavailabilityofadequatetechnical,financialandotherresourcestocompletethedevelopmentandtheabilitytouseorselltheintangibleasset;5)theabilitytomeasurereliablytheexpenditureattributabletotheintangibleassetduringthedevelopment.WheretheexpenditureonresearchanddevelopmentincurredcannotbeclassifiedintotheFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.102expenditureonresearchphaseortheexpenditureondevelopment,itshallberecognizedasprofitandlossofthecurrentperiodwhenincurred.31.Long-termassetsimpairmentTheCompanydeterminesonthebalancesheetdatewhetherthereisanyindicationthatthenon-currentandnon-financialassetsmaybeenimpaired,includingfixedassets,constructioninprogress,intangibleassetswithlimitedservicelife,andinvestmentrealestatemeasuredusingthecostmodel,long-termassetsofsubsidiaries,jointventuresandassociates.Ifthereisanyindicationthattheassetislikelytobeimpaired,theCompanywillestimatetherecoverableamountandcarryouttheimpairmenttest.Impairmenttestsshallbeconductedeachyearforgoodwillandintangibleassetswithuncertainservicelifeandnotyetinuse,whetherornotthereisanyindicationofimpairment.Ifanimpairmenttestshowsthattherecoverableamountofanassetislowerthanitsbookvalue,thedifferenceisrecognizedasaprovisionforimpairmentandrecognizedastheimpairmentloss.Therecoverableamountisdeterminedbasedonthehigherofthenetamountofthefairvalueoftheassetminusthedisposalexpensesandthepresentvalueoftheexpectedfuturecashflowoftheasset.Thefairvalueofassetisdeterminedaccordingtothepriceofthesalesagreementinfairtrade.Ifthereisnosalesagreementbutactiveassetsinthemarketexist,thefairvalueisdeterminedaccordingtothepriceofferedbythebuyeroftheasset.Ifthereisneithersalesagreementnoractiveassetsinthemarket,thefairvalueoftheassetshallbeestimatedbasedonthebestinformationavailable.Thedisposalcostsincludelegalfees,relevanttaxesandfees,aswellashandlingfessrelatedtothedisposalofasset,andthedirectcostsincurredtoensuretheassetreachesthemarketablestate.Thepresentvalueoftheexpectedfuturecashflowofanassetshallbedeterminedbythediscountedcashatanappropriatediscountrate,onthebasisoftheexpectedfuturecashflowgeneratedduringthecontinuoususeorfinaldisposalofanasset.Provisionsforassetimpairmentarecalculatedandrecognizedonanindividualbasis.Ifitisdifficulttoestimatetherecoverableamountofindividualassets,theCompanywilldeterminetherecoverableamountoftheassetgrouponthebasisoftheassetgrouptowhichtheassetbelongs.Assetgroupreferstothesmallestassetportfoliowhichcanindependentlygeneratecashinflows.Whenanimpairmenttestisperformedonthegoodwillseparatelylistedinthefinancialstatement,bookvalueofsuchgoodwillisapportionedtotheassetgrouporcombinationofassetgroupsthatcanbenefitfromthesynergyeffectofbusinesscombination.Ifthetestresultshowsthattherecoverableamountoftheassetgrouporcombinationofassetgroupsislowerthantheirbookvalue,correspondingimpairmentlossesongoodwillwillberecognized.Theimpairmentlossshallfirstoffsetagainstthebookvaluethatisapportionedtoassetgrouporacombinationofassetgroups,andthenoffsetagainstthebookvalueofassetsexcludinggoodwillintheassetgrouporthecombinationofassetgroupsonapro-ratabasisaccordingtotheproportionoftheirbookvalue.Oncetheaforementionedassetimpairmentlossisrecognized,itwillnotbereversedinsubsequentaccountingperiodsevenifthevaluecanberecovered.32.Long-termunamortizedexpensesLong-termunamortizedexpensesareexpenseswhichhavebeenincurredbutshallbeamortizedoveraperiodlongerthanoneyear,includingthereportingperiodandthefutureperiods.Long-termunamortizedexpensesshallbeamortizedbasedonthestraight-linemethodovertheexpectedbenefitperiod.33.ContractliabilitiesAcontractliabilityistheGroup'sobligationtotransfergoodsorservicestoacustomerforwhichFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.103theGrouphasreceivedconsiderationfromthecustomer.Contractassetsandliabilitieswithinasinglecontractshouldbepresentedonanetbasis.Ifthenetamountisdebitbalance,itshallbepresentedintheitemof"contractassets"or"othernon-currentassets"basedonitsliquidity.Ifthenetamountiscreditbalance,itshallbepresentedintheitemof"contractliabilities"or"othernon-currentliabilities"basedonitsliquidity.34.Employeeremuneration(1)Accountingtreatmentmethodforshort-termremunerationTheCompany'semployeeremunerationmainlyincludesshort-termremuneration,post-employmentbenefits,anddismissalbenefits.Wherein:Short-termremunerationincludessalaries,bonuses,allowancesandsubsidies,employeewelfare,medicalinsurancefees,maternityinsurancefees,employmentinjuryinsurancefees,housingprovidentfunds,laborunionfees,staffeducationfunds,andnon-monetarywelfare.TheCompanyshall,withintheaccountingperiodwhenitsemployeesprovideservice,recognizeactualshort-termremunerationasliabilitieswhichshallberecognizedasprofitandlossofthecurrentperiodorrelevantassetcosts.Including,non-monetarybenefitsaremeasuredatfairvalue.(2)Accountingtreatmentmethodforpost-employmentbenefitsPost-employmentbenefitincludesbasicendowmentinsurance,unemploymentinsurance,etc.Italsoincludesdefinedcontributionplans.Wheredefinedcontributionplansareadopted,thecorrespondingamountpayableshallberecognizedasprofitandlossofthecurrentperiodorrelevantassetcostsinwhichitisincurred.(3)AccountingtreatmentmethodfordismissalbenefitsIftheCompanyterminatesthelaborrelationshipwithanemployeebeforetheemployee'slaborcontractexpires,orproposestogivetheemployeecompensationforencouragingtheemployeetovoluntarilyacceptdismissal,whentheCompanycannotunilaterallywithdrawtheterminationofthelaborrelationshipplanorthedismissalproposal,orrecognizethecostsrelatedtotherestructuringofthepaymentofthedismissalbenefits,whicheverisearlier,theliabilitiesarisingfromthecompensationgivetotheemployeefortheterminationofthelaborrelationshipwiththeemployeeshallberecognizedandrecognizedasprofitandlossofthecurrentperiod.However,ifitisexpectedthatthedismissalbenefitscannotbepaidinfullwithintwelvemonthsaftertheendoftheannualreportingperiod,theyshallbeaccountedforaccordingtootherlong-termemployeeremunerations.Internalretirementschemesforemployeesshallbeaccountedforfollowingthesameprinciplesoftheabovedismissalbenefits.WherethesalariesandsocialinsurancefeesofearlyretireestobepaidtheCompanyfromthedatewhenemployeesstopprovidingservicestothenormalretirementdatemeettherecognitionconditionsforprojectedliabilities,theyshallberecognizedasprofitandlossofthecurrentperiod.(4)Accountingtreatmentmethodforotherlong-termemployeebenefitsOtherlong-termbenefitsprovidedbytheCompanytoemployeesthatmeettheconditionsofthedefinedcontributionplanareaccountedforinaccordancewiththedefinedcontributionplan;otherlong-termbenefitsareaccountedforinaccordancewiththedefinedbenefitplan.35.LeaseliabilitiesNoneFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.10436.AccruedliabilitiesAnobligationrelatedtocontingentissuesandmeetingthefollowingconditionsshallbedeemedanaccruedliability:(1)suchanobligationisacurrentoneassumedbytheCompany;(2)fulfillingsuchanobligationmightcauseeconomicbenefitstoflowoutoftheCompany;and(3)theamountofsuchanobligationismeasurablereliably.Onthebalancesheetdate,aprovisionismeasuredatthebestestimateoftheexpenditurerequiredtosettletherelatedpresentobligation,withcomprehensiveconsiderationoffactorssuchastherisks,uncertaintyandtimevalueofmoneyrelatingtoacontingency.Anaccruedliabilityisseparatelyrecognizedasanassetandtherecognizedcompensationamountshallnotexceedthebookvalueoftheaccruedliability,whenallorpartoftheexpensesrequiredtopayofftheaccruedliabilityareexpectedtobecompensatedbyathirdpartyandtheamountofcompensationisbasicallydeterminedtobereceivable.37.Share-basedpaymentShare-basedpaymentisthetransactionmadethroughgrantingequityinstrumentsorbearingtheliabilitiesrecognizedbasedonsuchinstrumentsinexchangeforservicesrenderedbyemployeesorotherparties.TheCompany'sshare-basedpaymentincludesequity-settledshare-basedpaymentandcash-settledshare-basedpayment.(1)Equity-settledshare-basedpaymentWherethesharepaymentissettledthroughequityforacquisitionofservicefromemployees,itshallbemeasuredatthefairvalueoftheequityinstrumentsgrantedtotheemployees.Iftherightcannotbeexerciseduntilthevestingperiodendsoruntiltheprescribedperformanceconditionsaremet,theamountofsuchfairvalueshall,basedonthebestestimateofthenumberofvestedequityinstruments,berecognizedastherelevantcostsorexpensesbystraight-linemethod/iftherightcanbeexercisedimmediatelyfollowingthegrant,theamountofsuchfairvalueshallberecognizedastherelevantcostsorexpensesonthegrantdate,andthecapitalreserveshallbeincreasedaccordingly.Oneachbalancesheetdatewithinthevestingperiod,theCompanycarriesoutthebestestimationbasedonsuchfollow-upinformationasthevariationofthenumberofvestedstaffacquiredrecently,andrevisesthenumberofestimatedvestedequityinstruments.Theimpactoftheaboveestimatesshallberecognizedastherelevantcostsorexpensesofthecurrentperiod,andthecapitalreserveshallbeadjustedaccordingly.Foranequity-settledshare-basedpaymentinreturnfortheserviceofanyotherparty,ifthefairvalueoftheserviceofanyotherpartycanbereliablymeasured,itshallbemeasuredatthefairvalueoftheserviceofanyotherpartyontheacquisitiondate;ifthefairvalueoftheserviceofanyotherpartycannotbereliablymeasured,butthefairvalueoftheequityinstrumentscanbereliablymeasured,itshallbemeasuredatthefairvalueoftheequityinstrumentsontheacquisitiondateandincludedintherelevantcostsorexpenses,andtheshareholders'equityshallbeincreasedcorrespondingly.(2)Cash-settledsharepaymentThecash-settledshare-basedpaymentshallbemeasuredatthefairvalueoftheCompany'sliabilitiesdeterminedbasedonsharesorotherequityinstruments.Iftherightmaybeexercisedimmediatelyafterthegrant,relevantcostsorexpensesshallberecognizedthegrantdate,andtheliabilitiesshallbeincreasedaccordingly.Iftherightmaynotbeexerciseduntilthevestingperiodendsoruntilthespecifiedperformanceconditionsaremet,oneachbalancesheetdatewithintheFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.105vestingperiod,theservicesobtainedinthecurrentperiodshall,basedonthebestestimateoftheinformationabouttheexercisableright,berecognizedastherelevantcostsorexpensesatthefairvalueoftheliabilityundertakenbytheCompany.Thefairvalueofliabilitiesisre-measuredandanychangetheretoisrecognizedasprofitandlossofthecurrentperiodoneachbalancesheetdateandsettlementdatepriortosettlementoftherelevantliabilities.38.Preferenceshares,perpetualbondsandotherfinancialinstrumentsNone39.RevenueAccountingpolicyforrecognitionandmeasurementofrevenueTherevenueisrecognizedwhenthecustomerstakecontroloftherelevantgoodsorservicesifthecontractbetweentheCompanyandthecustomersmeetallthefollowingconditions:1)thepartiestothecontracthasapprovedsuchcontractandundertaketoperformtheirrespectiveobligations;2)thecontracthasspecifiedtherightsandobligationsofthepartiestheretoandinconnectionwiththetransferofgoodsorprovisionoflaborservices;3)thecontractsetsoutclearpaymenttermsrelatedtothetransferofgoods;4)thecontracthascommercialsubstance,meaningthattheperformancethereofwillchangetherisk,timedistributionoramountoftheCompany'sfuturecashflow;5)theCompanyisverylikelytorecovertheconsiderationobtainedbytransferringgoodstocustomers.Ontheenforcingdateofthecontract,theCompanyidentifiesallindividualperformanceobligationsinthecontract,andapportionsthetransactionpricetoeachindividualperformanceobligationaccordingtotherelativeproportionoftheindividualsellingpriceofthegoods.Whendeterminingthetransactionprice,theCompanyhasconsideredtheimpactofsuchfactorsincludingvariableconsideration,majorfinancingcomponentofthecontract,non-cashconsideration,andconsiderationpayabletothecustomer.Withrespecttoeachindividualperformanceobligationofthecontract,theCompanywillrecognizethetransactionpriceapportionedtosuchobligationbasedontheprogressofperformanceduringtherelevantperformanceperiods,ifanyofthefollowingconditionsismet:1)thecustomerobtainsandconsumestheeconomicbenefitsbroughtbytheCompany'sperformanceduringsuchperformance;2)thecustomercancontrolthegoodsinprogressduringtheCompany'sperformance;3)thegoodsproducedfromtheCompany'sperformancehasirreplaceableuse,andinrespectoftheportionofrevenuearisingfromtheCompany'sperformancecompletedtodate,theCompanyisentitledtorecognizerevenueduringtheentirevalidityperiodofthecontract.Theprogressofperformanceisdeterminedaccordingtothenatureofthetransferredgoodsusingtheinputoroutputmethod.Whensuchprogresscannotbereasonablydetermined,ifthecostsincurredareexpectedtobecompensated,theCompanyrecognizesrevenuebasedontheamountofcostsincurred,untiltheprogressofperformancecanbereasonablydetermined.Ifnoneoftheaforesaidconditionsismet,theCompanywillrecognizethetransactionpriceapportionedtosuchindividualperformanceobligationwhenthecustomerobtainsthecontroloverrelevantgoods.Todecidewhetherthecustomerhasobtainedthecontrolovergoods,theCompanytakesintoaccountthefollowingindications:1)theenterprisehasthepresentrighttocollectionforthegoods,meaningthecustomerbearsthepresentobligationtopaymentforthegoods;2)theenterprisehaspassedthelegaltitletothegoodstothecustomer,meaningthecustomerhashadthelegaltitletothegoods;3)theenterprisehastransferredthephysicalpossessionofthegoodstothecustomer,meaningthecustomerhashadthephysicalpossessionofthegoods;4)theenterprisehastransferredthemajorrisksandremunerationsconcerningthetitletothegoodstothecustomer,Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.106meaningthecustomerhasobtainedthemajorrisksandremunerationsconcerningthetitletothegoods;5)thecustomerhasacceptedthegoods;6)otherindicationstoshowthatthecustomerhasobtainedthecontroloverthegoods.Differentbusinessmodelsareadoptedfordifferentbusinesses,whichmayleadtothedifferencesintheaccountingpolicyforrecognitionofrevenue.40.GovernmentgrantsGovernmentgrantsaremonetaryornon-monetaryassetsacquiredbytheCompanyfromthegovernmentfreeofcharge,excludingthecapitalinvestedbythegovernmentasaninvestorandgrantedcorrespondingowner'sequity.Governmentgrantsareclassifiedintogovernmentgrantsrelatedtoassetsandgovernmentgrantsrelatedtoincome.TheCompanydefinesthegovernmentgrantsforpurchasingorconstructingorotherwiseforminglong-termassetsasasset-relatedgovernmentgrants;othergovernmentgrantsaredefinedastheincome-relatedgovernmentgrants.Governmentgrantsshallbemeasuredattheamountreceivedorreceivableiftheyaremonetaryassets.Non-monetarygovernmentgrantsshallbemeasuredatfairvalue;ifthefairvaluecannotbereliablyobtained,theyshallbemeasuredatthenominalamount.Thegovernmentgrantsmeasuredatthenominalamountshallbedirectlyrecognizedastheprofitandlossofthecurrentperiod.Asset-relatedgovernmentgrantsarerecognizedasdeferredincome,andasprofitandlossofthecurrentperiodinstagesaccordingtoareasonableandsystematicmethodovertheservicelifeoftherelevantassets.Theincome-relatedgovernmentgrantsshallberecognizedasdeferredincomeiftheyareusedtocompensaterelevantexpensesorlossesinsubsequentperiods,andshallberecognizedasprofitandlossofthecurrentperiodduringtherecognitionofrelatedexpenses;thegrantsusedtocompensaterelatedexpensesorlossesincurredshallbedirectlyrecognizedasprofitandlossofthecurrentperiod.Thegovernmentgrantsrelatedtobothassetsandincomeshallbeaccountedforbydistinguishingdifferentparts;ifitisdifficulttodistinguish,theyshallbe,asawhole,classifiedasincome-relatedgovernmentgrants.GovernmentgrantsrelatedtotheCompany'sdailyactivitiesshallberecognizedasotherprofitandlossorwritedownrelevantcostsaccordingtotheessenceofeconomicbusiness;thoseunrelatedtotheCompany'sdailyactivitiesshallberecognizedasnon-operatingincomeandexpenditure.Iftherecognizedgovernmentgrantsneedtobereturnedandthereisrelevantdeferredincomebalance,thebookbalanceofrelevantdeferredincomeshallbewrittenoff,andtheexcessshallberecognizedasprofitandlossofthecurrentperiod;otherwise,governmentgrantsshallbedirectlyrecognizedasprofitandlossofthecurrentperiod.41.Deferredincometaxassets/deferredincometaxliabilities(1)CurrentincometaxOnthebalancesheetdate,theCompanymeasuresacurrenttaxliability(orasset)arisingfromthecurrentandpriorperiodbasedontheamountofincometaxexpectedtobepaidbytheCompany(orreturnedbytaxauthority)calculatedbyrelatedtaxlaws.Thetaxableincomewhichisthebasisforcalculationofthecurrentincometaxiscalculatedafterappropriateadjustmentstothepretaxaccountingprofitsforthereportingperiod.(2)Deferredincometaxassets/deferredincometaxliabilitiesForthedifferencebetweenthebookvalueofcertainassetsandliabilitiesandtheirtaxbases,andthetemporarydifferencesbetweenthebookvaluesandthetaxbasesofitems,thetaxbasesofFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.107whichcanbedeterminedfortaxpurposes,butwhichhavenotbeenrecognizedasassetsandliabilitiesaccordingtothetaxlaws,theCompanyrecognizesdeferredincometaxassetsanddeferredincometaxliabilitiesusingthebalancesheetdebtmethod.Wherethetaxabletemporarydifferencesarisefromtheinitialrecognitionofgoodwillandtheinitialrecognitionofanassetorliabilityarisingfromthetransactionthatisnotabusinesscombination,noratthetimeofthetransaction,affectsneitheraccountingprofitandtaxableprofit(ordeductibleloss),therelevantdeferredincometaxliabilityshallnotberecognized.Additionally,inrespectoftaxabletemporarydifferenceassociatedwithtoinvestmentsinsubsidiaries,jointventuresandassociates,wheretheCompanycancontrolthetimingofthereversalofthetemporarydifferencesanditisprobablethatthetemporarydifferenceswillnotbereversedintheforeseeablefuture,therelevantdeferredincometaxliabilityshallnotberecognized.Otherthantheaboveexceptions,theCompanyshallrecognizedeferredincometaxliabilitiesarisingoutfromallothertaxabletemporarydifferences.Wherethetaxabletemporarydifferencesarisefromtheinitialrecognitionofanassetorliabilityarisingfromthetransactionthatisnotabusinesscombination,noratthetimeofthetransaction,affectsneitheraccountingprofitandtaxableprofit(ordeductibleloss),therelevantdeferredincometaxliabilityshallnotberecognized.Additionally,inrespectoftaxabletemporarydifferenceassociatedwithtoinvestmentsinsubsidiaries,jointventuresandassociates,whereitisprobablethatthetemporarydifferenceswillnotbereversedintheforeseeablefutureortaxableprofitwillnotbeavailableagainstwhichthedeductibletemporarydifferencescanbeutilizedinthefuture,therelevantdeferredincometaxliabilityshallnotberecognized.Otherthantheaboveexceptions,theCompanyrecognizesadeferredtaxassetforotherdeductibletemporarydifferences,totheextentthatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencescanbeutilized.Thetaxeffectsofdeductablelossesandtaxesavailableforcarryingoverarerecognizedasanassetwhenitisprobablethatfuturetaxableprofitswouldbeavailableagainstwhichtheselossescanbeutilized.Atthebalancesheetdate,deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled,accordingtotherequirementsoftaxlaws.Thebookvalueofdeferredtaxassetsisreviewedatthebalancesheetdateandwrittendowntotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailableinfutureperiodstoallowthedeferredtaxassetstobeutilized.Suchwrite-downsisreversedwhenitbecomesprobablethatsufficienttaxableprofitswillbeavailable.(3)IncometaxexpensesIncometaxescomprisecurrentincometaxanddeferredincometax.Thecurrentincometaxanddeferredincometaxexpenseorincomeisrecognizedastheprofitandlossofthecurrentperiodexceptforthecurrentincometaxanddeferredincometaxrelatedtotransactionsorevents,thatarerecognizedasothercomprehensiveincomeordirectlyrecognizedasshareholders'equity,andthusrecognizedasothercomprehensiveincomeorshareholders'equity,andforthebookvalueofgoodwilladjustedduetodeferredincometaxarisingfrombusinesscombination.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.10842.Leases(1)Accountingtreatmentmethodforoperatinglease(1)TheCompanyrecordsoperatingleasebusinessasthelesseeLeasepaymentsunderanoperatingleasearerecognizedonastraight-linebasisovertheleaseterm,andrecognizedasthecostoftherelatedassetorasprofitandlossofthecurrentperiod.Initialdirectcostsarerecognizedastheprofitandlossofthecurrentperiod.Contingentrentalsarerecognizedasprofitandlossofthecurrentperiodwhentheyareactuallyincurred.(2)TheCompanyrecordsoperatingleasebusinessasthelessorLeaseincomeunderanoperatingleasearerecognizedonastraight-linebasisovertheleaseterm,andrecognizedasprofitandlossofthecurrentperiod.Thelarge-amountinitialdirectcostsarecapitalizedwhenincurred,andrecognizedasprofitandlossofthecurrentperiodonthesamebasisastherecognizedleaseincomeovertheleaseterm;thesmall-amountinitialdirectcostsarerecognizedasprofitandlossofthecurrentperiodwhenincurred.Contingentrentalsarerecognizedasprofitandlossofthecurrentperiodwhentheyareactuallyincurred.(2)AccountingtreatmentmethodforfinanceleaseLeasesofassetswheresubstantiallyalltherisksandrewardsofownershiphavebeentransferredareclassifiedasfinanceleases.mayormaynoteventuallybetransferred.43.OtherimportantaccountingpoliciesandaccountingestimatesNone44.Changesinimportantaccountingpolicyandaccountingestimates(1)Keychangestoaccountingpolicies√Applicable□InapplicableContentsandreasonsforchangestoaccountingpoliciesApprovalprocedureRemarksOnJuly5,2017,theMinistryofFinanceissuedtherevisedAccountingStandardsforBusinessEnterprisesNo.14--Revenue(C.H.[2017]No.22),requiringtheenterpriseslistedbothwithinthebordersandabroad,aswellastheenterpriseslistedabroadandadoptingIFRSorAccountingStandardsforBusinessEnterprisestopreparefinancialstatements,toimplementtherevisedStandardsfromJanuary1,2018;otherenterpriseslistedathomeshallimplementtherevisedStandardsfromJanuary1,2020.OnFebruary25,2020,theCompanyconvenedthe21stmeetingofthefourthBoardofDirectorsandthe17thmeetingofthefourthBoardofSupervisorsoftheCompany,andapprovedtheProposalonChangestoAccountingPolicies.DetailscanbefoundintheAnnouncementonChangestoAccountingPolicies(AnnouncementNo.:2020-10)onFebruary26,2020onCNINFO(.(1)ImplementationofthechangestoaccountingpoliciescausedbynewRevenueStandardsOnJuly5,2017,theMinistryofFinancerevisedtheAccountingStandardsforBusinessEnterpriseNo.14-Revenues(C.H.[2017]No.22)(hereinafterreferredtoasthe"newRevenueStandards").Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.109ThenewRevenueStandardswerereviewedandapprovedatthe21stmeetingofthefourthBoardofDirectorsonFebruary25,2020,andtheCompanystartedtoimplementsuchstandardsfromJanuary1,2020.ThenewRevenueStandardsestablishedanewmodelforrecognitionofrevenuetoregulatetherevenuesgeneratedbythecontractswithcustomers.ToimplementthenewRevenueStandards,theCompanyre-evaluatedtherecognition,measurement,accounting,andpresentationofmainrevenuesfromcontracts.PursuanttothenewRevenueStandards,theCompanyonlyadjustedtheaccumulativenumberofimpactsofthecontractstobecompletedonJanuary1,2020.TheCompanyadjustedtheamountofretainedreturnatthebeginningofthecurrentperiod(i.e.January1,2020)andtheamountofotherrelevantitemsinthefinancialstatementsbasedontheaccumulativenumberofimpactsofthefirstimplementation,excepttheinformationofthecomparableperiod.(2)MainchangesandimpactsregardingtheimplementationofthenewRevenueStandardsareasfollows:TheCompanychangesthecontractconsiderationcollectedfromcustomersinadvancefortransferofgoodsfromtheitem"accountsreceivedinadvance"totheitem"contractliabilities"forpresentation.TheCompany'simplementingthenewRevenueStandardsdoesnotimpacttheretainedreturnatthebeginningof2020,anditsimpactsonotherrelevantitemsinthefinancialstatementsdatedJanuary1,2020areasfollows:StatementitemsAmountonDecember31,2019(priortochanges)AmountonJanuary1,2020(afterchanges)ConsolidationReportsoftheparentcompanyConsolidationReportsoftheparentcompanyAccountsreceivedinadvance142,476,562.3128,227,454.47Contractliabilities142,476,562.3128,227,454.47(2)Keychangesinaccountingestimates□Applicable√Inapplicable(3)Since2020,theadjustmentofrelevantitemsofthefinancialstatementsatthebeginningoftheyearforthefirsttimeaccordingtotheimplementationofthenewstandardsforincome,andthenewleasingstandardsforthefirsttime.RulesWhethertoadjustthesubjectsofthebalancesheetatthebeginningoftheyear√Yes□NoConsolidatedBalanceSheetUnit:RMBItemDecember31,2019January1,2020AdjustmentnumberCurrentassets:Monetaryfunds703,746,624.42703,746,624.42Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.110SettlementreserveLendingtobanksandotherfinancialinstitutionsTradablefinancialassetsDerivativefinancialassetsNotesreceivable301,904.32301,904.32Accountsreceivable807,772,897.68807,772,897.68AccountsreceivablefinancingPrepayments14,877,757.1614,877,757.16PremiumreceivableReinsurancepayablesReinsurancecontractreservesreceivableOtherreceivables8,240,417.998,240,417.99Including:InterestreceivableDividendsreceivableFinancialassetsheldunderresaleagreementsInventory986,405,689.17986,405,689.17ContractassetsAssetsheldforsale57,073,059.6957,073,059.69Non-currentassetsduewithinoneyearOthercurrentassets165,567,805.78165,567,805.78Totalcurrentassets2,743,986,156.212,743,986,156.21Non-currentassets:LoansandadvancestocustomersCreditrightinvestmentsOthercreditrightinvestmentsLong-termreceivableLong-termequityinvestmentInvestmentinotherequityinstrumentsOthernon-currentassetsInvestmentproperty36,039,381.3036,039,381.30Propertyandequipment2,921,392,106.872,921,392,106.87Constructionworkinprogress55,734,236.9155,734,236.91ProductivebiologicalassetsOil&gasassetsRight-of-useassetsIntangibleassets168,731,781.83168,731,781.83DevelopmentexpensesGoodwill64,654.1564,654.15Long-termdeferredexpenses13,686,397.2413,686,397.24Deferredincometaxassets80,331,080.1780,331,080.17Othernon-currentassets6,306,028.966,306,028.96Totalnon-currentassets3,282,285,667.433,282,285,667.43Totalassets6,026,271,823.646,026,271,823.64Currentliabilities:Short-termloans14,721,492.3814,721,492.38BorrowingsfromPBCPlacementsfrombanksandotherfinancialinstitutionsTradablefinancialliabilitiesDerivativefinancialliabilitiesNotespayable202,653,860.31202,653,860.31Accountspayable578,212,781.22578,212,781.22Paymentsreceivedinadvance142,476,562.31-142,476,562.31Contractliabilities142,476,562.31142,476,562.31ProceedsfromfinancialassetssoldunderrepoFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.111CustomerbankdepositsandduetobanksandotherfinancialinstitutionsFundsfromsecuritiestradingagencyFundsfromsecuritiesunderwritingagencyEmployeeremunerationpayable106,413,600.27106,413,600.27Taxandfeespayable101,670,618.11101,670,618.11Otherpayables635,834,511.05635,834,511.05Including:Interestspayable173,259.89173,259.89Dividendspayable452,536.50452,536.50TransactionfeeandcommissionreceivableReinsurancepayableLiabilitiesheldforsaleNon-currentliabilitiesduewithinoneyear32,400,000.0032,400,000.00OthercurrentliabilitiesTotalcurrentliabilities1,814,383,425.651,814,383,425.65Non-currentliabilities:InsurancecontractreservesLong-termLoans22,500,000.0022,500,000.00BondspayableIncluding:PreferencesharesPerpetualbondsLeaseliabilitiesLong-termpayableLong-termemployeeremunerationpayableProvisionDeferredincome82,367,831.3382,367,831.33Deferredincometaxliabilities30,016,107.4330,016,107.43Othernon-currentliabilitiesTotalnon-currentliabilities134,883,938.76134,883,938.76Totalliabilities1,949,267,364.411,949,267,364.41Owner'sequity:Sharecapital1,308,891,273.001,308,891,273.00OtherequityinstrumentsIncluding:PreferencesharesPerpetualbondsCapitalreserve760,731,416.57760,731,416.57Less:Treasuryshares104,792,649.00104,792,649.00OthercomprehensiveincomeSpecialreservesSurplusreserves53,205,582.8653,205,582.86GeneralreservesRetainedearnings2,058,968,835.802,058,968,835.80Totalequityattributabletotheownersoftheparentcompany4,077,004,459.234,077,004,459.23EquitiesofminorityshareholdersTotalowner'sequity4,077,004,459.234,077,004,459.23Totalliabilitiesandowners'equities6,026,271,823.646,026,271,823.64ExplanationofadjustmentTheparentcompany'sbalancesheetUnit:RMBItemDecember31,2019January1,2020AdjustmentnumberFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.112Currentassets:Monetaryfunds156,202,659.45156,202,659.45TradablefinancialassetsDerivativefinancialassetsNotesreceivableAccountsreceivable127,203,426.87127,203,426.87AccountsreceivablefinancingPrepayments2,565,716.662,565,716.66Otherreceivables637,511,752.54637,511,752.54Including:InterestreceivableDividendsreceivableInventory84,567,041.9884,567,041.98ContractassetsAssetsheldforsaleNon-currentassetsduewithinoneyearOthercurrentassets129,377,576.74129,377,576.74Totalcurrentassets1,137,428,174.241,137,428,174.24Non-currentassets:CreditrightinvestmentsOthercreditrightinvestmentsLong-termreceivableLong-termequityinvestment1,231,245,128.961,231,245,128.96InvestmentinotherequityinstrumentsOthernon-currentassetsInvestmentproperty18,745,192.0918,745,192.09Propertyandequipment222,724,273.70222,724,273.70Constructionworkinprogress35,260,100.4435,260,100.44ProductivebiologicalassetsOil&gasassetsRight-of-useassetsIntangibleassets21,259,498.6621,259,498.66DevelopmentexpensesGoodwillLong-termdeferredexpensesDeferredincometaxassets18,366,334.2918,366,334.29Othernon-currentassets4,521,074.214,521,074.21Totalnon-currentassets1,552,121,602.351,552,121,602.35Totalassets2,689,549,776.592,689,549,776.59Currentliabilities:Short-termloansTradablefinancialliabilitiesDerivativefinancialliabilitiesNotespayableAccountspayable325,506,510.90325,506,510.90Paymentsreceivedinadvance28,227,454.47-28,227,454.47Contractliabilities28,227,454.4728,227,454.47Employeeremunerationpayable24,280,403.9924,280,403.99Taxandfeespayable3,225,793.883,225,793.88Otherpayables167,279,884.09167,279,884.09Including:InterestspayableDividendspayable452,536.50452,536.50LiabilitiesheldforsaleNon-currentliabilitiesduewithinoneyearOthercurrentliabilitiesTotalcurrentliabilities548,520,047.33548,520,047.33Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.113Non-currentliabilities:Long-termLoansBondspayableIncluding:PreferencesharesPerpetualbondsLeaseliabilitiesLong-termpayableLong-termemployeeremunerationpayableProvisionDeferredincome7,062,818.697,062,818.69Deferredincometaxliabilities5,575,323.825,575,323.82Othernon-currentliabilitiesTotalnon-currentliabilities12,638,142.5112,638,142.51Totalliabilities561,158,189.84561,158,189.84Owner'sequity:Sharecapital1,308,891,273.001,308,891,273.00OtherequityinstrumentsIncluding:PreferencesharesPerpetualbondsCapitalreserve690,241,724.38690,241,724.38Less:Treasuryshares104,792,649.00104,792,649.00OthercomprehensiveincomeSpecialreservesSurplusreserves53,084,248.5853,084,248.58Retainedearnings180,966,989.79180,966,989.79Totalowner'sequity2,128,391,586.752,128,391,586.75Totalliabilitiesandowners'equities2,689,549,776.592,689,549,776.59Explanationofadjustment(4)ExplanationoftheretrospectiveadjustmentofpreviouscomparabledataaccordingtotheimplementationofthenewRevenueStandardsandthenewleasingstandardsforthefirsttimein2020.□Applicable√Inapplicable45.OthersVI.Taxes1.MaintaxtypesandtaxratesTaxesTaxbasisTaxrateValue-addedtaxTaxableVAT(calculatedbasedonthedifferenceofdeductingtheamountofinputtaxwhichisallowedtobedeductedinthecurrentperiodfromtheresultofmultiplyingtaxablesalesbyapplicabletaxrate)13%CityconstructionandmaintenancetaxTurnovertaxpaid5%and7%CorporateincometaxTaxableincome15%,16.5%,20%,25%,progressiverateEducationsurchargesTurnovertaxpaid3%LocaleducationsurchargesTurnovertaxpaid2%Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.114ExplanationofdisclosureifdifferentincometaxratesapplytodifferentcorporatetaxpayersNameoftaxpayerIncometaxrateC&SPaperCo.,Ltd.,ZhongshanZhongshunTradingCo.,Ltd.,C&S(Hubei)PaperCo.,Ltd.,XiaoganC&STradingCo.,Ltd.,ZhejiangZhongshunPaperCo.,Ltd.,ChengduZhongshunPaperCo.,Ltd.,HangzhouJieRouTradingCo.,Ltd.,ShanghaiHuicongPaperCo.,Ltd.,BeijingC&SPaperCo.,Ltd.,C&S(Yunfu)TradingCo.,Ltd.,andSunDailyNecessitiesCo.,Ltd.25%C&S(Zhongshan)PaperCo.,Ltd.,andC&S(Dazhou)PaperCo.,Ltd.20%ZhongShunInternationalCo.,Ltd.,andC&SHongKongCo.,Ltd.(Note1)16.50%JiangmenZhongshunPaperCo.,Ltd.,C&S(Sichuan)PaperCo.,Ltd.,andC&S(Yunfu)PaperCo.,Ltd.15%C&S(Macao)Co.,Ltd.(Note2)Progressiverate2.TaxincentiveC&S(Sichuan)PaperCo.,Ltd.wascertifiedasahigh-techenterpriseofSichuanProvincein2017,andwasawardedtheCertificateofHigh-techEnterprise(No.GR201751001108),withavalidtermofthreeyears,onDecember4,2017.C&S(Sichuan)PaperCo.,Ltd.filedanewapplicationforcertificationofhigh-techenterpriseonJune22,2020,whichisbeingreviewedasatthereportingdate.InaccordancewiththerelevantprovisionsoftheAnnouncementoftheStateAdministrationofTaxationonIssuesconcerningtheImplementationofthePreferentialIncomeTaxPoliciesregardingHigh-techEnterprises(G.J.SH.W.Z.J.G.G.[2017]No.24),thecorporateincometaxistentativelycalculatedatataxrateof15%duringthereportingperiod.C&S(Yunfu)PaperCo.,Ltd.wascertifiedasahigh-techenterpriseofGuangdongProvincein2017,andwasawardedtheCertificateofHigh-techEnterprise(No.GR201744007263),withavalidtermofthreeyears,onDecember11,2017.C&S(Yunfu)PaperCo.,Ltd.filedanewapplicationforcertificationofhigh-techenterpriseonJuly9,2020,whichisbeingreviewedasatthereportingdate.InaccordancewiththerelevantprovisionsoftheAnnouncementoftheStateAdministrationofTaxationonIssuesconcerningtheImplementationofthePreferentialIncomeTaxPoliciesregardingHigh-techEnterprises(G.J.SH.W.Z.J.G.G.[2017]No.24),thecorporateincometaxistentativelycalculatedatataxrateof15%duringthereportingperiod.JiangmenZhongshunPaperCo.,Ltd.wascertifiedasahigh-techenterpriseofGuangdongProvincein2018,andwasawardedtheCertificateofHigh-techEnterprise(No.GR201844008474),withavalidtermofthreeyears,onNovember28,2018.Therefore,thecorporateincometaxistentativelycalculatedatataxrateof15%in2020.InaccordancewiththerelevantprovisionsoftheAnnouncementoftheStateAdministrationofTaxationonIssuesConcerningtheImplementationoftheInclusiveIncomeTaxDeductionandExemptionPoliciesforSmallLow-profitEnterprises(G.J.SH.W.Z.J.G.G.[2019]No.2),thepolicyoninclusiveincometaxdeductionandexemptionforsmalllow-profitenterprisesisapplicabletoC&S(Zhongshan)PaperCo.,Ltd.andC&S(Dazhou)PaperCo.,Ltd.in2019.Tobespecific,theannualtaxableincomeofthesetwoenterprisesthatisnotmorethanRMB1millionshallbeincludedintheirtaxableincomeatthereducedrateof25%,withtheapplicablecorporateincometaxrateof20%;andtheannualtaxableincomethatisnotlessthanRMB1millionnormorethanRMB3millionshallbeincludedintheirtaxableincomeatthereducedrateof50%,withtheapplicableenterpriseincometaxrateof20%.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.1153.OthersNote1:C&SHongKongCo.,Ltd.isaHongKong-basedcompanyincorporatedaccordingtothelawofHongKong,andadoptsthetaxlawsthereof.Thetaxrateforitsincometaxis16.50%;Note2:C&S(Macao)Co.,Ltd.isaMacao-basedcompanyincorporatedaccordingtothelawofMacao.Itscomplementarytaxadoptsaprogressiverate(taxontaxableincomethatislessthanMOP300,000isexempted,andthetaxableincomethatismorethanMOP300,000istaxedat12%).VII.NotesonItemsinConsolidatedFinancialStatement1.MonetarycapitalUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearCashonhand81,123.6276,152.38Bankdeposits892,229,613.53675,589,471.75Othermonetaryfunds41,163,239.8228,081,000.29Total933,473,976.97703,746,624.42Including:Totaldepositsinoverseasbanks29,173,507.3063,089,915.23OtherdescriptionsBalanceofothermonetarycapitalattheendofthereportingperiodisthebalanceofissuinglettersofcredit,bankacceptancebilldepositandbalanceofAlipay.Referto"NoteVII,81"forcircumstanceswheremonetarycapitalownershipisrestricted.2.Transactionalfinancialassets:None3.Derivativefinancialassets:None4.Notesreceivable(1)ClassifiednotesreceivableUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearBankacceptancebill608,962.30301,904.32Total608,962.30301,904.32Baddebtsreservesetasideindividually:NoneBaddebtsreservessetasideinportfolios:NoneBaddebtsreservessetasideinportfolios:NoneBaddebtsreservessetasideinportfolios:NoneIfthebaddebtsreserveofnotesreceivableissetasideaccordingtogeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodiscloserelevantinformationonbaddebtsreserve:□Applicable√InapplicableFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.116(2)Baddebtsreservethatissetaside,recoveredortransferredbackProvisionofbaddebtsreserveofthereportingperiod:Wherein,theamountofrecoveredortransferredbackbaddebtsreserveofthereportingperiodisimportant:□Applicable√Inapplicable(3)ThenotesreceivablethattheCompanyhaspledgedattheendofthereportingperiod:None(4)NotesreceivablethattheCompanyhasendorsedordiscountedattheendofthereportingperiodandarenotdueonthedateofthebalancesheet:None(5)Notesthataretransferredtonotesreceivablebecausethedrawerdoesnotperformthecontractattheendofthereportingperiod:NoneOtherdescriptions1.TheCompanyhasnopledgednotesreceivableasatJune30,2020.2.TheCompanyhasnoderecognizednotesreceivablethatareendorsedordiscountedbutnotdueasatJune30,2020.3.TheCompanyhasnonotesthataretransferredtonotesreceivablebecausethedrawerdoesnotperformthecontractasatJune30,2020.(6)ThenotesreceivableactuallywrittenoffinthereportingperiodSignificantwrite-offsofnotesreceivablewherein:NoneDescriptionofwrite-offsofnotesreceivable:None5.Accountsreceivable(1)AccountsreceivabledisclosedbycategoriesUnit:RMBTypeBalanceattheendoftheyearBalanceatthebeginningoftheyearBookbalanceImpairmentprovisionBookvalueBookbalanceImpairmentprovisionBookvalueAmountPercentageAmountProvisionratioAmountPercentageAmountProvisionratioAccountsreceivableforwhichbaddebtsreserveissetasideindividually34,567,651.214.05%10,681,068.5930.90%23,886,582.6234,567,651.214.11%10,681,068.5930.90%23,886,582.62Wherein:Accountsreceivableforwhichbaddebtsreserveissetasideinportfolios819,792,390.6295.95%21,601,843.432.64%798,190,547.19805,681,115.4895.89%21,794,800.422.71%783,886,315.06Wherein:Accordingtoportfolioofage819,792,390.6295.95%21,601,843.432.64%798,190,547.19805,681,115.4895.89%21,794,800.422.71%783,886,315.06Total854,360,041.83100.00%32,282,912.023.78%822,077,129.81840,248,766.69100.00%32,475,869.013.87%807,772,897.68Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.117Baddebtsreservesetasideindividually:10,681,068.59Unit:RMBNameBalanceattheendoftheyearBookbalanceImpairmentprovisionProvisionratioReasonforprovisionInstitutionI6,288,113.542,462,996.1339.17%ItisdifficulttorecoverallloansduetothepoorbusinessperformanceofthecustomerInstitutionII28,279,537.678,218,072.4629.06%ItisdifficulttorecoverallloansduetothepoorbusinessperformanceofthecustomerTotal34,567,651.2110,681,068.59----Baddebtsreservesetasideindividually:Baddebtsreservesetasideinportfolios:21,601,843.43Unit:RMBNameBalanceattheendoftheyearBookbalanceImpairmentprovisionProvisionratioWithinthecreditperiod690,347,064.8013,806,941.302.00%Creditperiod-oneyear121,303,456.176,065,172.815.00%Summarywithinoneyear811,650,520.9719,872,114.112.45%Onetotwoyears6,471,482.40970,722.3615.00%Twotothreeyears380,933.36114,280.0130.00%Overthreeyears1,289,453.89644,726.9550.00%Total819,792,390.6221,601,843.43--Descriptionofreasonfortheportfolio:Accountsreceivablewiththesameagehavesimilarcreditriskcharacteristics.Baddebtsreservessetasideinportfolios:Descriptionofreasonfortheportfolio:NoneBaddebtsreservessetasideinportfolios:Descriptionofreasonfortheportfolio:Ifthebaddebtsreserveofaccountsreceivableissetasideaccordingtogeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodiscloserelevantinformationonbaddebtsreserve:□Applicable√InapplicableDiscloseaccordingtoageUnit:RMBAgingBalanceattheendoftheyearWithinoneyear(inclusive)811,650,520.97Onetotwoyears6,471,482.40Twotothreeyears14,599,234.74Overthreeyears21,638,803.72Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.118Threetofouryears14,348,062.08Fourtofiveyears7,290,741.64Overfiveyears0.00Total854,360,041.83(2)Baddebtsreservethatissetaside,recoveredortransferredbackProvisionofbaddebtsreserveofthereportingperiod:Unit:RMBTypeBalanceatthebeginningoftheyearAmountofchangeinthereportingperiodBalanceattheendoftheyearProvisionRecoveryortransferbackWrite-offsOthersAccountsreceivable32,475,869.01-79,019.13113,937.8632,282,912.02Total32,475,869.01-79,019.13113,937.8632,282,912.02Wherein,theamountofrecoveredortransferredbackbaddebtsreserveofthereportingperiodisimportant:None(3)TheaccountsreceivableactuallywrittenoffinthereportingperiodUnit:RMBItemWritten-offamountTheaccountsreceivableactuallywrittenoff113,937.86Significantwrite-offsofaccountsreceivablewherein:Explanationonwrite-offsofaccountsreceivable:None(4)TopfivedebtorsinclosingbalanceofaccountsreceivableUnit:RMBNameofinstitutionBalanceofaccountsreceivableattheendofthereportingperiodPercentageoftotalbalanceofaccountsreceivableattheendofthereportingperiodClosingbalanceforbaddebtsreserve1st210,108,337.3224.59%4,223,694.592nd97,821,774.0611.45%2,698,303.333rd65,171,610.187.63%1,712,866.444th28,279,537.673.31%8,218,072.465th26,129,086.733.06%522,581.73Total427,510,345.9650.04%(5)AccountsreceivablederecognizedduetothetransferoffinancialassetsTheCompanyhasnoaccountsreceivablederecognizedduetothetransferoffinancialassetsattheendofthereportingperiodFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.119(6)AmountofassetsandliabilitiesthatareformedbythetransferandongoinginvolvementofaccountsreceivableNoneOtherexplanations:6.AccountsreceivablefinancingIncreaseanddecreaseandchangesinfairvalueofaccountsreceivablefinancinginthereportingperiod□Applicable√InapplicableIftheprovisionsforassetimpairmentofaccountsreceivablefinancingissetasideaccordingtogeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodiscloserelevantinformationonprovisionsforassetimpairment:□Applicable√InapplicableOtherexplanations:None7.Prepayments(1)PrepaymentslistedasfollowsbasedonageUnit:RMBAgingBalanceattheendoftheyearBalanceatthebeginningoftheyearAmountPercentageAmountPercentageWithinoneyear42,999,445.8099.98%14,430,801.7097.00%Onetotwoyears8,604.170.02%446,955.463.00%Total43,008,049.97--14,877,757.16--Explanationonthereasonofuntimelysettlementofprepaymentswhoseageexceedoneyearwithsignificantamount:None(2)TopfivepayeesinclosingbalanceofprepaymentThetotalamountofthetopfivepayeesinclosingbalanceofprepaymentoftheCompanyisRMB30,319,748.68,accountingfor70.50%ofclosingbalanceofprepayment.Otherexplanation:None8.OtherreceivablesUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearOtherreceivables32,122,559.848,240,417.99Total32,122,559.848,240,417.99Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.120(1)Interestreceivable1)Classificationofinterestreceivable:None2)Significantoverdueinterest:None3)Provisionofbaddebtsreserve□Applicable√Inapplicable(2)Dividendsreceivable1)Classificationofdividendsreceivable:None2)Importantdividendsreceivableexceedingoneyear:None3)Provisionofbaddebtsreserve□Applicable√InapplicableOtherexplanation:None(3)Otherreceivables1)ClassificationbythenatureofamountofotherreceivablesUnit:RMBNatureofamountBookbalanceattheendoftheperiodBookbalanceatthebeginningoftheperiodMarginsanddeposits4,339,916.454,098,736.90Currentaccounts3,684,770.853,395,872.47Reserve3,198,671.091,621,094.57Others23,525,358.51255,741.34Total34,748,716.909,371,445.282)ProvisionofbaddebtsreserveUnit:RMBImpairmentprovisionPhaseIPhaseIIPhaseIIITotalExpectedcreditlossinthenext12monthsExpectedcreditlossesinthewholeduration(withoutcreditimpairment)Expectedcreditlossesinthewholeduration(withcreditimpairment)AsatJanuary1,20201,131,027.291,131,027.29BalanceasatJanuary1,2020inthereportingperiod----Provisioninthereportingperiod1,502,718.881,502,718.88Write-offsinthereportingperiod7,589.117,589.11BalanceasatJune30,20202,626,157.062,626,157.06Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.121Changeofbookbalancewhosechangeofamountoflossreservesissignificant□Applicable√InapplicableDiscloseaccordingtoageUnit:RMBAgingBalanceattheendoftheyearWithinoneyear(inclusive)31,022,416.69Onetotwoyears2,183,982.42Twotothreeyears1,078,349.94Overthreeyears463,967.85Threetofouryears42,454.05Fourtofiveyears37,613.80Overfiveyears383,900.00Total34,748,716.903)Baddebtsreservethatissetaside,recoveredortransferredbackProvisionofbaddebtsreserveofthereportingperiod:Unit:RMBTypeBalanceatthebeginningoftheyearAmountofchangeinthereportingperiodBalanceattheendoftheyearProvisionRecoveryortransferbackWrite-offsOthersOtherreceivables1,131,027.291,502,718.887,589.112,626,157.06Total1,131,027.291,502,718.887,589.112,626,157.06Wherein,theamountofrecoveredortransferredbackbaddebtsreserveofthereportingperiodisimportant:None4)OtherreceivablesactuallywrittenoffinthereportingperiodUnit:RMBItemWritten-offamountOtherreceivablesactuallywrittenoff7,589.11Wherein,write-offsofimportantotherreceivables:None5)TopfivedebtorsinclosingbalanceofotheraccountsreceivableUnit:RMBNameofinstitutionNatureofamountBalanceattheendoftheyearAgingPercentageoftotalclosingbalanceofotherreceivablesClosingbalanceforbaddebtsreserve1stOthers22,214,407.06Withinoneyear63.93%1,110,720.352ndMarginsanddeposits1,100,000.00Onetotwoyears3.17%165,000.003rdMarginsand900,000.00Onetotwoyears,2.59%390,000.00Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.122depositsmorethanfiveyears4thMarginsanddeposits700,000.00Twotothreeyears,morethanfiveyears2.01%230,000.005thOthers552,656.91Withinoneyear1.59%27,632.85Total--25,467,063.97--73.29%1,923,353.206)Receivablesinvolvinggovernmentgrants:None7)Otherreceivablesderecognizedduetothetransferoffinancialassets:None8)Amountofassetsandliabilitiesthatareformedbythetransferandongoinginvolvementofotherreceivables:None9.InventoryWhethertheCompanyneedstocomplywithrequirementsfordisclosureintherealestateindustryNo(1)CategoriesofinventoriesUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearBookbalanceProvisionforimpairmentofinventoriesorprovisionsforcontractcostBookvalueBookbalanceProvisionforimpairmentofinventoriesorprovisionsforcontractcostBookvalueRawmaterials741,974,493.3717,983.97741,956,509.40524,569,054.3011,942.85524,557,111.45Work-in-processproducts38,706,917.29418,858.0338,288,059.2647,577,009.45357,365.1347,219,644.32Commoditystocks350,379,404.142,147,334.68348,232,069.46375,752,356.141,562,936.40374,189,419.74Packages21,916,829.2785,423.4621,831,405.8124,152,524.80154,311.7123,998,213.09Low-valueconsumables12,537,164.54726,782.6511,810,381.8911,353,098.88675,834.2510,677,264.63Materialsforconsignedprocessing16,800,079.570.0016,800,079.575,764,035.945,764,035.94Total1,182,314,888.183,396,382.791,178,918,505.39989,168,079.512,762,390.34986,405,689.17(2)ProvisionforimpairmentofinventoriesorprovisionsforcontractcostUnit:RMBItemBalanceatthebeginningoftheyearIncreaseinthecurrentperiodDecreaseinthecurrentperiodBalanceattheendoftheyearProvisionOthersReversalorchargingoffOthersRawmaterials11,942.8521,931.6315,890.5117,983.97Work-in-processproducts357,365.13379,338.93317,846.03418,858.03Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.123Commoditystocks1,562,936.401,302,458.45718,060.172,147,334.68Packages154,311.71102,826.92171,715.1785,423.46Low-valueconsumables675,834.25296,598.14245,649.74726,782.65MaterialsforconsignedprocessingTotal2,762,390.342,103,154.071,469,161.623,396,382.79(3)Explanationthatbalanceofinventoryattheendofthereportingperiodincludeamountofcapitalizationofborrowingcosts:None(4)Explanationonamortizedamountinthereportingperiodofcontractcost:None10.ContractassetsIfthebaddebtsreserveofcontrastassetsissetasideaccordingtogeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodiscloserelevantinformationonbaddebtsreserve:□Applicable√InapplicableProvisionforimpairmentofcontractassetsinthereportingperiod:None11.AssetsheldforsaleUnit:RMBItemBookbalanceattheendoftheperiodImpairmentprovisionClosingbookvalueoftheperiodFairvalueEstimateddisposalfeeEstimateddisposaltimeImmovableassetsoftheoldfactoryofHubeiC&S(includinglanduserights)57,073,059.6957,073,059.6966,285,118.00December31,2020Total57,073,059.6957,073,059.6966,285,118.00--Otherexplanations:InDecember2019,theCompanysignedanagreementonacquiringtheimmovableassetsoftheoldfactoryofHubeiC&S(includinglanduserights)uponconsultationwithXiaonanDistrictPeople'sGovernmentofXiaoganMunicipalitytoboosttheinvestmentandbuildingofPhaseIIoftheprogramofhigh-endhouseholdpaperintheindustrialzoneintheEconomicDevelopmentAreaofXiaonanDistrict,XiaoganMunicipality.TheCompanybelievedthattheimmovableassetsoftheoldfactoryofHubeiC&S(includinglanduserights)canbesoldimmediatelyinthecurrentsituation,accordingtosimilartransactionswheresuchassetsweresold.TheCompanysignedapurchaseagreementwithlegalconstraintswithXiaoganChangxingInvestmentCo.,Ltd.andXiaonanDistrictPeople'sGovernmentofXiaoganMunicipalityregardingthetransferofsuchassetsinDecember2019.TheAgreementincludedimportanttermsandconditionsincludingthepriceandtimeofthetransactionaswellaspenaltyforbreachofcontractthatisstrictenough.Therefore,theislittlepossibilityoftheAgreementtobesignificantlychangedorcanceled.TheCompanyestimatedthattheultimatetransferwillbecompletedbeforeDecember2020.Therefore,immovableassetsoftheoldfactoryofHubeiFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.124C&S(includinglanduserights)wasclassifiedasassetsheldforsalebytheCompany.Accordingtoevaluation,thepriceofimmovableassetsoftheoldfactoryofHubeiC&S(includinglanduseright)wasRMB66,285,100intotal.Itisestimatedthattherearenofeesforthesaleotherthanrelevanttaxesandfeesrelatedtonormalsale.12.Non-currentassetsduewithinoneyear:None13.OthercurrentassetsUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearReversereposoftreasurybonds87,105,000.00Wealthmanagementproducts212,400,000.0040,000,000.00InputVATtobededucted34,003,305.6632,822,256.90Prepaidcorporateincometax5,689,760.505,640,548.88Total252,093,066.16165,567,805.78Otherexplanation:None14.Investmentsincreditor'srightsImportantinvestmentincreditor'srights:NoneProvisionsforassetimpairmentUnit:RMBImpairmentprovisionPhaseIPhaseIIPhaseIIITotalExpectedcreditlossinthenext12monthsExpectedcreditlossesinthewholeduration(withoutcreditimpairment)Expectedcreditlossesinthewholeduration(withcreditimpairment)BalanceasatJanuary1,2020inthereportingperiod----Changeofbookbalancewhosechangeofamountoflossreservesissignificant□Applicable√Inapplicable15.Otherinvestmentsincreditor'srightsImportantotherinvestmentincreditor'srights:NoneProvisionsforassetimpairmentUnit:RMBImpairmentprovisionPhaseIPhaseIIPhaseIIITotalExpectedcreditlossinthenext12monthsExpectedcreditlossesinthewholeduration(withoutcreditimpairment)Expectedcreditlossesinthewholeduration(withcreditimpairment)BalanceasatJanuary1,2020inthe----Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.125reportingperiodChangeofbookbalancewhosechangeofamountoflossreservesissignificant□Applicable√Inapplicable16.Long-termreceivables(1)Long-termreceivablesImpairmentofbaddebtsreserveUnit:RMBImpairmentprovisionPhaseIPhaseIIPhaseIIITotalExpectedcreditlossinthenext12monthsExpectedcreditlossesinthewholeduration(withoutcreditimpairment)Expectedcreditlossesinthewholeduration(withcreditimpairment)BalanceasatJanuary1,2020inthereportingperiod----Changeofbookbalancewhosechangeofamountoflossreservesissignificant□Applicable√Inapplicable(2)Long-termreceivablesderecognizedduetothetransferoffinancialassets:None(3)Amountofassetsandliabilitiesthatareformedbythetransferandongoinginvolvementoflong-termreceivables:NoneOtherexplanation:None17.Long-termequityinvestmentOtherexplanation:None18.InvestmentinotherequityinstrumentsDisclosureofinvestmentsinnon-tradableequityinstrumentsofthereportingperiodbyitem:None19.Othernon-currentfinancialassetsOtherexplanation:None20.Investmentrealestate(1)Investmentrealestatemeasuredatcost√Applicable□InapplicableUnit:RMBItemBuildingsLanduserightsConstructionworkinprogressTotalI.OriginalBookValue1.Balanceatthe31,142,650.0321,661,131.2952,803,781.32Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.126beginningoftheyear2.Increaseinthecurrentperiod(1)Externalpurchase(2)Inventory\PP&E\Transferfromconstructioninprogress(3)Increaseinbusinesscombination3.Decreaseinthecurrentperiod(1)Disposal(2)Othertransfersout4.Closingbalance31,142,650.0321,661,131.2952,803,781.32II.AccumulatedDepreciationandAmortization1.Balanceatthebeginningoftheyear11,923,174.464,841,225.5616,764,400.022.Increaseinthecurrentperiod487,472.35215,860.26703,332.61(1)Provisionoramortization487,472.35215,860.26703,332.613.Decreaseinthecurrentperiod(1)Disposal(2)Othertransfersout4.Closingbalance12,410,646.815,057,085.8217,467,732.63III.ImpairmentProvision1.Balanceatthebeginningoftheyear2.Increaseinthecurrentperiod(1)Provision3.Decreaseinthecurrentperiod(1)Disposal(2)Othertransfersout4.ClosingbalanceIV.BookValue1.Closingbookvalueoftheperiod18,732,003.2216,604,045.4735,336,048.692.Openingbookvalue19,219,475.5716,819,905.7336,039,381.30(2)Investmentrealestatemeasuredatfairvalue□Applicable√Inapplicable(3)InformationoninvestmentrealestatethatthecertificateoftitlehasnotbeenissuedOtherdescriptionsTheCompanydoesnothaveinvestmentrealestatethatthecertificateoftitlehasnotbeenissuedasatJune30,2020.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.12721.FixedassetsUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearPropertyandequipment2,907,864,726.862,921,392,106.87Total2,907,864,726.862,921,392,106.87(1)InformationonfixedassetsUnit:RMBItemPropertiesandbuildingsEquipmentOfficeequipmentMotorvehiclesProductionequipmentTotalI.OriginalBookValue:1.Balanceatthebeginningoftheyear1,055,604,437.132,958,625,080.2147,464,949.7615,446,847.5169,259,291.884,146,400,606.492.Increaseinthecurrentperiod62,728,216.8761,999,628.613,595,565.854,925,214.36133,248,625.69(1)Purchase1,996,379.483,125,754.533,355,458.908,477,592.91(2)Transferfromconstructioninprogress62,728,216.8760,003,249.13469,811.321,569,755.46124,771,032.78(3)Increaseinbusinesscombination3.Decreaseinthecurrentperiod5,566,303.6341,244.2548,290.605,655,838.48(1)Disposalorwrite-off5,566,303.6341,244.2548,290.605,655,838.484.Closingbalance1,118,332,654.003,015,058,405.1951,019,271.3615,446,847.5174,136,215.644,273,993,393.70II.AccumulatedDepreciation1.Balanceatthebeginningoftheyear190,985,787.16952,947,310.0022,508,285.717,191,366.3432,365,697.611,205,998,446.822.Increaseinthecurrentperiod19,601,479.88116,269,551.923,160,138.15354,018.964,877,712.71144,262,901.62(1)Provision19,601,479.88116,269,551.923,160,138.15354,018.964,877,712.71144,262,901.623.Decreaseinthecurrentperiod2,212,729.9232,923.8637,666.722,283,320.50Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.128(1)Disposalorwrite-off2,212,729.9232,923.8637,666.722,283,320.504.Closingbalance210,587,267.041,067,004,132.0025,635,500.007,545,385.3037,205,743.601,347,978,027.94III.ImpairmentProvision1.Balanceatthebeginningoftheyear18,970,596.5229,332.4010,123.8819,010,052.802.Increaseinthecurrentperiod(1)Provision3.Decreaseinthecurrentperiod847,749.021,541.0010,123.88859,413.90(1)Disposalorwrite-off847,749.021,541.0010,123.88859,413.904.Closingbalance18,122,847.5027,791.4018,150,638.90IV.BookValue1.Closingbookvalueoftheperiod907,745,386.961,929,931,425.6925,355,979.967,901,462.2136,930,472.042,907,864,726.862.Openingbookvalue864,618,649.971,986,707,173.6924,927,331.658,255,481.1736,883,470.392,921,392,106.87(2)InformationontemporarilyidlefixedassetsUnit:RMBItemOriginalbookvalueAccumulateddepreciationImpairmentprovisionBookvalueRemarksEquipment41,682,969.0522,202,372.9418,122,847.501,357,748.61Officeequipment263,607.34234,345.9427,791.401,470.00Total41,946,576.3922,436,718.8818,150,638.901,359,218.61(3)Fixedassetsacquiredthroughfinancelease:None(4)Fixedassetsleasedthroughoperatinglease:None(5)InformationonfixedassetsthatthecertificateoftitlehasnotbeenissuedUnit:RMBItemBookvalueThereasonsforthecertificateoftitlehavenotbeenissuedWorkshops,warehouses,anddormitoriesofHubeiC&S148,918,737.44ProcessingFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.129WarehousesandworkshopsofZhejiangC&S3,803,395.58ProcessingPlantsandwarehousesofTangshanBranch47,675,910.63ProcessingTotal200,398,043.65OtherdescriptionsTherewasnolimitationontheownershipoffixedassetsoftheCompanyattheendofthereportingperiod.(6)Disposaloffixedassets:None22.ConstructioninprocessUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearConstructionworkinprogress22,256,470.4655,734,236.91Total22,256,470.4655,734,236.91(1)ConstructioninprogressUnit:RMBProjectBalanceattheendoftheyearBalanceatthebeginningoftheyearBookbalanceImpairmentprovisionBookvalueBookbalanceImpairmentprovisionBookvalueConstructionofJiangmenC&S1,278,303.321,278,303.328,149,431.178,149,431.17ConstructionofZhejiangC&S677,479.68677,479.68494,274.78494,274.78ConstructionofSichuanC&S2,862,634.982,862,634.98ConstructionofTangshanBranch301,278.46301,278.4635,260,100.4435,260,100.44HubeiC&SProject12,342,010.3412,342,010.345,219,006.805,219,006.80ConstructionofYunfuC&S4,794,763.684,794,763.686,611,423.726,611,423.72Total22,256,470.4622,256,470.4655,734,236.9155,734,236.91(2)ChangesinsignificantconstructioninprogressofthecurrentperiodUnit:RMBItemnameBudgetnumberBalanceatthebeginningoftheyearIncreaseinthecurrentperiodTheamountoffixedassetstransferredinthecurrentperiodDecreaseinthecurrentperiodBalanceattheendoftheyearProportionofthecumulativeconstructioninputinbudgetConstructionprogressAccumulativeamountofinterestcapitalizationIncluding:TheamountofinterestcapitalizationinthecurrentperiodInterestcapitalizationrateinthecurrentperiodSourceoffundConstructionofJiangmenC&S16,162,871.148,149,431.177,856,300.5414,727,428.391,278,303.3299.03%99.03%OthersFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.130ConstructionofZhejiangC&S4,854,261.08494,274.784,271,913.944,088,709.04677,479.6898.19%98.19%OthersConstructionofSichuanC&S13,523,732.540.0013,142,549.9910,279,915.012,862,634.9897.18%97.18%OthersConstructionofTangshanBranch332,000,000.0035,260,100.4419,337,701.7354,296,523.71301,278.4618.72%18.72%OthersHubeiC&SProject1,353,000,000.005,219,006.8013,865,276.266,742,272.7212,342,010.3451.35%51.35%OthersConstructionofYunfuC&S80,750,000.006,611,423.7232,819,523.8734,636,183.914,794,763.6849.78%49.78%OthersTotal1,800,290,864.7655,734,236.9191,293,266.33124,771,032.7822,256,470.46------(3)Theconstruction-in-progressprovisionsetasideinthecurrentperiodOtherdescriptionsTherewasnorecoverableamountoftheconstructioninprogresslowerthanthebookvaluethatrequiredprovisionsintheCompanyinthecurrentreportingperiod.(4)Constructionmaterials:None23.Productivebiologicalassets(1)Productivebiologicalassetsmeasuredatcost□Applicable√Inapplicable(2)Productivebiologicalassetsmeasuredatfairvalue□Applicable√Inapplicable24.Oil&gasassets□Applicable√Inapplicable25.Right-of-useassets:None26.Intangibleassets(1)IntangibleassetsUnit:RMBItemLanduserightsPatentrightNon-patentedtechnologyApplicationsoftwareTrademarkrightTotalI.OriginalBookValue1.Balanceatthebeginningoftheyear189,064,322.151,342,721.8412,433,710.50168,370.83203,009,125.322.Increaseinthecurrentperiod1,783,304.461,783,304.46(1)Purchase1,783,304.461,783,304.46(2)InternalR&D(3)Increaseinbusinesscombination3.Decreaseinthecurrentperiod(1)Disposal4.Closingbalance189,064,322.151,342,721.8414,217,014.96168,370.83204,792,429.78Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.131II.AccumulatedAmortization1.Balanceatthebeginningoftheyear26,533,474.35790,967.096,784,531.22168,370.8334,277,343.492.Increaseinthecurrentperiod1,871,053.8847,134.98983,188.502,901,377.36(1)Provision1,871,053.8847,134.98983,188.500.002,901,377.363.Decreaseinthecurrentperiod(1)Disposal4.Closingbalance28,404,528.23838,102.077,767,719.72168,370.8337,178,720.85III.ImpairmentProvision1.Balanceatthebeginningoftheyear2.Increaseinthecurrentperiod(1)Provision3.Decreaseinthecurrentperiod(1)Disposal4.ClosingbalanceIV.BookValue1.Closingbookvalueoftheperiod160,659,793.92504,619.776,449,295.24167,613,708.932.Openingbookvalue162,530,847.80551,754.755,649,179.28168,731,781.83TheintangibleassetsgeneratedbyinternalR&DoftheCompanyattheendoftheperiodoccupies0.00%ofthebalanceofintangibleassets.(2)Informationonthelanduserightsthatthecertificateoftitlehasnotbeenissued:None27.Developmentexpenses:None28.Goodwill(1)OriginalbookvalueofthegoodwillUnit:RMBNameofinvesteeorthemattersforminggoodwillBalanceatthebeginningoftheyearIncreaseofcurrentperiodDecreaseinthecurrentperiodBalanceattheendoftheyearFormedbybusinesscombinationDisposalZhongshanJieRouPapernotundercommoncontrol64,654.1564,654.15Total64,654.1564,654.15(2)ProvisionforImpairmentofgoodwillRelevantinformationontheassetgroupsorassetgroupportfolioinwhichthegoodwillislocatedExplainthemethodtoconfirmtheprocessofgoodwillimpairmenttest,keyparameters(e.g.Thegrowthrateinthepredictiveperiodwhenpredictingthepresentvalueoffuturecashflow,theFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.132growthrateinthestableperiod,profitrate,discountrate,andpredictiveperiod),andthegoodwillimpairmentloss:Afterconductingtheassetimpairmenttestbycombiningthegoodwillwithcorrespondingassetgroups,therewasnoimpairmentasatJune30,2020,andprovisionsattheendofthereportingperiodwerenotsetaside.InfluenceofthegoodwillimpairmenttestOtherdescriptions29.Long-termunamortizedexpensesUnit:RMBItemBalanceatthebeginningoftheyearIncreaseinthecurrentperiodAmortizedamountofcurrentperiodDecreaseBalanceattheendoftheyearUserightsofsewagedischarge3,763,858.78727,629.843,036,228.94Propertymanagementfeesoftheofficebuilding8,942,538.466,306,257.462,367,428.9512,881,366.97Electricityuserights980,000.00105,000.00875,000.00Total13,686,397.246,306,257.463,200,058.7916,792,595.91OtherdescriptionsNone30.Deferredincometaxassets/deferredincometaxliabilities(1)DeferredincometaxassetsthatwerenotoffsetUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearDeductibletemporarydifferencesDeferredincometaxassetsDeductibletemporarydifferencesDeferredincometaxassetsAllowanceforimpairmentlosses34,779,547.977,720,181.4333,522,565.267,354,388.34Unrealizedprofitininternaltransaction38,283,258.017,614,837.2932,400,998.886,052,001.45Deductibleloss103,971,403.9225,992,850.98133,306,241.5633,326,560.39Accruedexpenses49,082,779.6412,270,694.9149,082,779.6412,270,694.91EmployeeremunerationunpaidProvisionsforimpairmentoffixedassets18,150,638.903,319,714.3419,010,052.803,472,180.20Provisionforimpairmentofinventories3,396,382.79663,918.932,762,390.34535,522.47Equityincentivecost205,234,822.0949,130,795.6173,883,673.6717,319,732.41Total452,898,833.32106,712,993.49343,968,702.1580,331,080.17Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.133(2)DeferredincometaxliabilitiesthatwerenotoffsetUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearTaxabletemporarydifferencesDeferredincometaxliabilitiesTaxabletemporarydifferencesDeferredincometaxliabilitiesPre-taxdeductionofPP&Eatonetimeasstipulatedinthetaxlaw198,776,645.0937,539,267.58152,874,671.4530,016,107.43Total198,776,645.0937,539,267.58152,874,671.4530,016,107.43(3)DeferredincometaxassetsorliabilitiespresentedwiththenetamountafteroffsetUnit:RMBItemTheoffsetamountofthedeferredincometaxassetsandliabilitiesattheendofthereportingperiodThebalanceofthedeferredincometaxassetsorliabilitiesafteroffsetattheendofthereportingperiodTheoffsetamountofthedeferredincometaxassetsandliabilitiesatthebeginningofthereportingperiodThebalanceofthedeferredincometaxassetsorliabilitiesafteroffsetatthebeginningofthereportingperiodDeferredincometaxassets106,712,993.4980,331,080.17Deferredincometaxliabilities37,539,267.5830,016,107.43(4)BreakdownoftheunconfirmeddeferredincometaxassetsUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearDeductibletemporarydifferences123,638.3884,331.04Total123,638.3884,331.04(5)Deductiblelossoftheunconfirmeddeferredincometaxassetswillbedueinthenextyear:None31.Othernon-currentassetsUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearBookbalanceImpairmentprovisionBookvalueBookbalanceImpairmentprovisionBookvaluePrepaidaccountsofsoftware4,084,912.114,084,912.113,326,948.933,326,948.93Prepaidaccountsofengineeringequipment32,602,221.5832,602,221.582,979,080.032,979,080.03Total36,687,133.6936,687,133.696,306,028.966,306,028.96Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.134Otherexplanation:None32.Short-termborrowings(1)Categoryofshort-termborrowingsUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearGuaranteedborrowings161,860,368.5014,721,492.38Total161,860,368.5014,721,492.38Descriptionofthecategoryofshort-termborrowings:None(2)Short-termborrowingsoverduebutunpaid:NoneTherewerenoshort-termborrowingsoverduebutunpaidintheCompanyattheendofthereportingperiod.33.Tradablefinancialliabilities:None34.Derivativefinancialliabilities:None35.NotespayableUnit:RMBCategoryBalanceattheendoftheyearBalanceatthebeginningoftheyearBanker'sacceptance204,505,448.05202,653,860.31Total204,505,448.05202,653,860.31ThetotalamountofthenotespayableduebutunpaidattheendofthereportingperiodisRMB0.00.36.Accountspayable(1)ListofaccountspayableUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearAccountspayable586,807,107.68578,212,781.22Total586,807,107.68578,212,781.22(2)ImportantaccountspayableexceedingoneyearUnit:RMBItemBalanceattheendoftheyearReasonforunsettlementornotcarry-over1st6,260,046.15ThecontractsettlementconditionsFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.135werenotmetTotal6,260,046.15--Otherexplanation:None37.Paymentsreceivedinadvance(1)Listofpaymentsreceivedinadvance:None(2)ImportantpaymentsreceivedinadvanceexceedingoneyearOtherexplanations:TherewerenopaymentsreceivedinadvanceexceedingoneyearinthebalanceoftheCompanyattheendofthereportingperiod.38.ContractliabilitiesUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearAdvancesonsales79,981,886.78142,476,562.31Total79,981,886.78142,476,562.3139.Employeeremunerationpayable(1)ListofemployeeremunerationpayableUnit:RMBItemBalanceatthebeginningoftheyearIncreaseofcurrentperiodDecreaseinthecurrentperiodBalanceattheendoftheyearI.Short-termCompensation106,224,592.83320,003,162.18334,022,866.7692,204,888.25II.Post-employmentBenefits-DefinedContributionPlan189,007.447,184,542.447,314,419.2759,130.61III.DismissalBenefits453,642.38453,642.38Total106,413,600.27327,641,347.00341,790,928.4192,264,018.86(2)Listofshort-termremunerationUnit:RMBItemBalanceatthebeginningoftheyearIncreaseofcurrentperiodDecreaseinthecurrentperiodBalanceattheendoftheyear1.Salary,bonusandsubsidy105,632,187.56294,152,847.35309,532,480.7590,252,554.162.Employeewelfare11,073,608.1510,276,861.76796,746.393.Socialinsurancepremiums138,180.306,694,755.476,672,043.29160,892.48Including:Medicalinsurance123,961.215,655,698.305,623,823.24155,836.27Employmentinjuryinsurance7,474.96283,553.45290,852.30176.11Maternity6,744.13755,503.72757,367.754,880.10Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.136insurance4.Housingfund235,586.006,560,208.266,158,619.12637,175.145.Laborunionfeeandstaffeducationfee218,638.971,521,742.951,382,861.84357,520.08Total106,224,592.83320,003,162.18334,022,866.7692,204,888.25(3)ListofdefinedcontributionplansUnit:RMBItemBalanceatthebeginningoftheyearIncreaseofcurrentperiodDecreaseinthecurrentperiodBalanceattheendoftheyear1.Basicendowmentinsurance182,767.826,957,144.827,081,396.4758,516.172.Unemploymentinsurance6,239.62227,397.62233,022.80614.44Total189,007.447,184,542.447,314,419.2759,130.61Otherexplanations:TherewasnodelinquencyofemployeeremunerationpayableintheCompanyattheendofthereportingperiod.40.TaxandfeespayableUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearValue-addedtax22,304,709.8640,202,978.00Corporateincometax69,887,770.6853,355,863.46Individualincometax1,193,456.541,419,250.54Cityconstructionandmaintenancetax1,487,174.331,943,704.81Educationsurcharges710,553.71998,926.69Propertytax3,541,802.021,074,531.92Stamptax560,403.47561,017.55Landusetax771,971.10796,430.83Localeducationsurcharges473,702.47665,951.12Disabledsecurityfund604,121.54364,478.02Resourcestax59,938.4069,070.60Environmentalprotectiontax111,856.66218,414.57Total101,707,460.78101,670,618.11Otherexplanation:None41.OtherpayablesUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearInterestpayable41,625.00173,259.89Dividendspayable1,510,753.80452,536.50Otherpayables711,270,057.51635,208,714.66Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.137Total712,822,436.31635,834,511.05(1)InterestpayableUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearInterestoflong-termborrowingswithinterestrepaymentbyinstallmentandprincipalrepaymentuponmaturity85,143.46Interestpayableofshort-termborrowings41,625.0088,116.43Total41,625.00173,259.89Importantinterestoverduebutunpaid:None(2)DividendspayableUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearDividendsforrestrictedshares1,510,753.80452,536.50Total1,510,753.80452,536.50Otherdescriptionsincludingimportantdividendspayableexceedingoneyear,andthereasonsfornon-paymentthatshouldbedisclosed:None(3)Otherpayables(1)OtherpayableslistedbasedonamountnatureUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearDepositsandmargins21,458,020.2815,743,185.19Unpaidfees611,140,212.63502,706,478.59Others2,582,155.152,612,148.46Therepurchaseobligationofrestrictedshares76,038,959.88104,792,649.00Authorizedcollectionandpaymentofindividualincometaxundertheequityincentive50,709.579,354,253.42Total711,270,057.51635,208,714.662)OtherimportantaccountspayableexceedingoneyearUnit:RMBItemBalanceattheendoftheyearReasonforunsettlementornotcarry-overFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.1381st6,323,465.21NotyetsettledTotal6,323,465.21--Otherexplanation:None42.Liabilitiesheldforsale:None43.Non-currentliabilitiesduewithinoneyearUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearLong-termborrowingsduewithinoneyear32,400,000.00Total32,400,000.00Otherexplanation:None44.Othercurrentliabilities:None45.Long-termborrowings(1)Categoryoflong-termborrowingsUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearGuaranteedborrowings22,500,000.00Total22,500,000.00Descriptionofthecategoryoflong-termborrowings:NoneOtherdescriptionsincludingtheintervalofinterestrate:None46.Bondspayable(1)Bondspayable:None(2)Changesintheincreaseanddecreaseofthebondspayable(excludingotherfinancialinstrumentssuchaspreferencesharesandperpetualbondsthataredividedintofinancialliabilities):None(3)Descriptionsoftheconditionsforconvertingbondsandconvertingtimeofconvertiblebonds:None(4)DescriptionsofotherfinancialinstrumentsthataredividedintofinancialliabilitiesBasicinformationonotherfinancialinstrumentsinissueattheendofthereportingperiod,suchasthepreferencesharesandperpetualbonds:NoneTableofchangesinotherfinancialinstrumentsinissueattheendofthereportingperiod,suchasthepreferencesharesandperpetualbonds:NoneDescriptionsofthebasisforotherfinancialinstrumentstobedividedintofinancialliabilities:NoneOtherexplanation:NoneFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.13947.Leaseliabilities:None48.Long-termpayables:None(1)Long-termpayableslistedbasedonamountnature:None(2)Specialpayables:None49.Long-termemployeeremunerationpayable(1)Tableoflong-termemployeeremunerationpayable:None(2)Changesofthedefinedbenefitplan:None50.Projectedliabilities:None51.DeferredincomeUnit:RMBItemBalanceatthebeginningoftheyearIncreaseofcurrentperiodDecreaseinthecurrentperiodBalanceattheendoftheyearReasonsforformationGovernmentgrants82,367,831.3324,880,000.004,272,824.50102,975,006.83GovernmentgrantsrelatedtoassetsTotal82,367,831.3324,880,000.004,272,824.50102,975,006.83--Projectsinvolvinggovernmentgrants:Unit:RMBLiabilitiesBalanceatthebeginningoftheyearIncreasedamountofsubsidiesinthecurrentperiodTheamountincludedinnon-operatingrevenueinthecurrentperiodTheamountincludedinotherincomeinthecurrentperiodTheamountofoffsetcostsinthecurrentperiodOtherchangesBalanceattheendoftheyearRelatedtoassets/incomeFinancialsupportfundfortheexpansionprojectof25,000tonsofhighgradehouseholdpaper8,078,701.55312,723.907,765,977.65RelatedtoassetsSubsidiesfortheinfrastructureconstructionofnewfactoryinHubei31,607,370.32535,718.1631,071,652.16RelatedtoassetsTheex-postfundsawardedtothefirstbatchofthe4,716,165.98317,293.324,398,872.66RelatedtoassetsFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.140unionenterprisesforthetechnicaltransformationin2017Supportfundsfortheconstructionofenvironmentalprotectionfacilities3,351,587.39159,523.803,192,063.59RelatedtoassetsSpecialfundsforthecapacityexpansionprojectof25,000tons2,395,833.26287,500.022,108,333.24RelatedtoassetsDiscountinterestfundsforimportedequipment2,633,468.7596,937.502,536,531.25RelatedtoassetsSupportfundsfortheconstructionofAutomatedStorage&RetrievalSystem2,162,500.0020,000,000.00192,647.0621,969,852.94RelatedtoassetsSubsidiesfortheproductionexpansionprojectof25,000tonsofhighgradehouseholdpaper2,066,666.7979,999.981,986,666.81RelatedtoassetsSubsidiesfor"watertreatment"projectconstruction1,524,940.0077,539.321,447,400.68RelatedtoassetsSupportfundsforsewagecentralizedwatertreatmentproject1,093,500.0060,750.001,032,750.00RelatedtoassetsSupportfundsforthetechnicaltransformationofequipmentproductionline4,447,359.44403,311.724,044,047.72RelatedtoassetsSupportfundsforequipmentofPhaseIIproject11,438,819.16985,624.0810,453,195.08RelatedtoassetsSupportfundsforthetransformationofPhaseI3,708,873.26224,780.223,484,093.04RelatedtoassetsFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.141projectSubsidiesforsewagetreatmentstation3,142,045.43238,636.382,903,409.05RelatedtoassetsFundsfortechnicaltransformationoftheproductionline3,880,000.00264,124.763,615,875.24RelatedtoassetsFundsfortraditionalenterprisetransformationprojects1,000,000.0035,714.28964,285.72RelatedtoassetsTotal82,367,831.3324,880,000.004,272,824.50102,975,006.83Otherexplanation:None52.Othernon-currentliabilities:None53.SharecapitalUnit:RMBBalanceatthebeginningoftheyearIncreaseanddecreaseofthischange(+and-)BalanceattheendoftheyearIssuanceofadditionalsharesBonussharesSharestransferredfromsurplusreserveOthersSubtotalTotalnumberofshares1,308,891,273.002,591,508.00-802,722.001,788,786.001,310,680,059.00Otherexplanations:Pleasereferto"SectionXIIII.BasicInformationoftheCompany1.Developmenthistoryofthecompany"fordetailsaboutthechangesinthesharecapitaloftheCompanyinthereportingperiod.54.Otherequityinstruments(1)Basicinformationonotherfinancialinstrumentsinissueattheendofthereportingperiod,suchasthepreferencesharesandperpetualbonds:None(2)Tableofchangesinotherfinancialinstrumentsinissueattheendofthereportingperiod,suchasthepreferencesharesandperpetualbondsDescriptionsofchangesandthereasonsforchangesofotherequityinstrumentsinthecurrentperiod,andthebasisforrelevantaccountingprocessing:NoneOtherexplanation:None55.CapitalreserveUnit:RMBFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.142ItemBalanceatthebeginningoftheyearIncreaseofcurrentperiodDecreaseinthecurrentperiodBalanceattheendoftheyearCapitalpremium(sharepremium)595,936,687.2422,940,029.302,673,064.26616,203,652.28Othercapitalreserve164,794,729.3380,671,237.423,317,130.24242,148,836.51Total760,731,416.57103,611,266.725,990,194.50858,352,488.79Otherdescriptions,includingchangesofincreaseanddecrease,andthereasonsforchangesinthecurrentperiod:(1)TheCompanyheldthe23rdmeetingofthefourthBoardofDirectorsandthe19thmeetingofthefourthBoardofSupervisors,andapprovedtheProposalontheAchievementofExerciseConditionsoftheFirstExercisePeriodofStockOptionfortheFirstTimeundertheCompany's2018StockOptionandRestrictedStockIncentivePlan.Inconformitywiththeregulationsofthe2018StockOptionandRestrictedStockIncentivePlan(Draft),theBoardofDirectorsconsideredthattheexerciseconditionsinthefirstexerciseperiodoftheequityoptionsgrantedforthefirsttimehadbeenmet.Therewere2,522incentiverecipientsthatmettheexerciseconditions,thenumberoffeasibleequityoptionswas3,431,505,andtheexercisepricewasRMB8.572pershare.Thecapitalreserve-sharepremiumofoptionexerciseinthereportingperiodwasincreasedbyRMB22,940,029.30.TheCompanyheldthe23rdmeetingofthefourthBoardofDirectors,approvedtheProposalontheRepurchaseandDeregistrationofPartialRestrictedStockfortheFirstTimeundertheCompany's2018StockOptionandRestrictedStockIncentivePlan.Besides,theCompanyconvenedthesecondextraordinarygeneralmeetingofShareholdersin2020,approvedtheProposalonReducingtheCompany'sRegisteredCapitalandRevisingtheArticlesofAssociation.WhenthePhaseIofrestrictedstockgrantedforthefirsttimeundertheCompany's2018StockOptionandRestrictedStockIncentivePlanwasunlocked,241incentiverecipientslostincentivequalificationduetotheirdismissionbeforeunlocking,unqualifiedpersonalassessment,andfailuretogetthefullmarkthoughqualifiedinthepersonalassessment,andtheyagreedtorepurchaseandwriteoffatotalof802,722grantedbutnotunlockedrestrictedstocks,andreducedRMB2,673,064.26ofsharereserve-sharepremiumatthemeantime.(2)Inaccordancewithrelevantpoliciesforstockpayment,thecostinthereportingperiodwassetasideandRMB50,297,192.75wasincludedin"capitalreserve-othercapitalreserve".IntermsofthefuturedeductibleamountbeforetaxoftheunlockedportionoftheCompany'sstockincentiveplanexceedingthebookrecognitionexpense,thedeferredincometaxassetswereconfirmedandRMB30,374,044.67wasincludedinthecapitalreserve.Thecapitalreserve-othercapitalreserveofoptionexerciseinthereportingperiodwasdecreasedbyRMB3,317,130.24.56.TreasurysharesUnit:RMBItemBalanceatthebeginningoftheyearIncreaseofcurrentperiodDecreaseinthecurrentperiodBalanceattheendoftheyearRestrictedshares104,792,649.0028,307,544.4729,380,369.51103,719,823.96Total104,792,649.0028,307,544.4729,380,369.51103,719,823.96Otherdescriptions,includingchangesofincreaseanddecrease,andthereasonsforchangesinthecurrentperiod:(1)TheCompanyimplementedtherepurchaseofsharesbycentralizedbiddingtransactionsthroughFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.143repurchasespecialsecuritiesaccounts.Thenumberofsharesrepurchasedwas1,895,900accumulatively,accountingfor0.1448%oftheCompany'stotalsharecapital.ThehighesttransactionamountwasRMB15pershare,thelowestonewasRMB14.34pershare,thetotaltransactionamountwasRMB27,680,721.76,andthetreasurystocksincreasedbyRMB27,680,721.76.(2)ThecancellationofRMB78,666.82ofcashdividendsoriginallyheldbythetargetsoftherepurchaseandderegistrationwasincludedintheincreaseofthecurrentperiod;RMB548,155.89ofunlockedcashdividendsinthefirstperiodisincludedintheincreaseofthecurrentperiod.(3)Underthepolicyrelatedtoshare-basedpayments,5,593,428sharesofrestrictedstockswereunlockedatRMB4.33pershareduringthereportingperiod,adecreaseofRMB24,219,543.24intreasuryshares.(4)Whenthefirstphaseofthefirstgrantofrestrictedstockwasunlocked,241incentivesubjectslefttheCompanybeforetheunlockingtolosetheirincentivequalifications,failedtomeetthestandardinpersonalassessment,andmetthepersonalassessmentbutlessthanafullscore,agreedtorepurchaseandcancelatotalof802,722sharesofrestrictedstockthathadbeengrantedbutnotunlocked.Amongthem,35incentiverecipientslefttheCompanybeforeunlockingandweredisqualified,and705,000restrictedsharesweregrantedbutnotunlocked.Oneincentiverecipientfailedtomeetthepersonalassessment,and6,000restrictedshareswerenotunlocked.205incentivesubjectsmetthepersonalassessmentbutdidnotscorefullmarks.Theyunlockedsharesproportionallybasedontheirscores,and91,722restrictedshareswerenotunlocked.EachsharevaluedRMB4.33,andadecreaseofRMB3,475,786,26occurredintreasuryshares.(5)Cashdividendspaidtorestrictedstockholderswithinthewaitingperiodwererevocable.Forrestrictedstockholderswhoareexpectedtounlocktheirsharesinthefuture,thedistributionofcashdividendsduringthereportingperiodreducedtreasurysharesbyRMB1,685,040.01.57.Othercomprehensiveincome:None58.Specialreserves:None59.SurplusreserveUnit:RMBItemBalanceatthebeginningoftheyearIncreaseofcurrentperiodDecreaseinthecurrentperiodBalanceattheendoftheyearLegalsurplusreserves53,205,582.8653,205,582.86Total53,205,582.8653,205,582.86Explanationofsurplusreserves,includingchangesandthereasonsforchangesduringtheperiod:None60.RetainedprofitUnit:RMBItemCurrentperiodPreviousperiodUndistributedprofitsbeforeadjustmentattheendofthelastperiod2,058,968,835.801,490,758,189.02Undistributedprofitsatthebeginningoftheperiodafteradjustment2,058,968,835.801,490,758,189.02Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.144Plus:Netprofitattributabletoownersoftheparentcompanyofthecurrentperiod452,699,484.61274,874,634.43Dividendsonordinarysharespayable97,945,986.1629,721,104.20Undistributedprofitsattheendoftheperiod2,413,722,334.251,735,911,719.25Detailsofundistributedprofitsatthebeginningoftheperiodafteradjustment:(1)AsaresultofretrospectiveadjustmentstotheAccountingStandardsforBusinessEnterprisesanditsrelatednewprovisions,theimpactonundistributedprofitsatthebeginningoftheperiodwasRMB0.00.(2)Duetothechangesinaccountingpolicies,theimpactonundistributedprofitsatthebeginningoftheperiodwasRMB0.00.(3)Duetothecorrectionofmaterialaccountingerrors,theimpactonundistributedprofitsatthebeginningoftheperiodwasRMB0.00.(4)Duetothechangesinthescopeofcombinationcausedbythesamecontrol,theimpactonundistributedprofitsatthebeginningoftheperiodwasRMB0.00.(5)OtheradjustmentsaffectedundistributedprofitsatthebeginningoftheperiodbyatotalofRMB0.00.61.OperatingincomeandoperatingcostUnit:RMBItemIncurredinthecurrentperiodIncurredinthepriorperiodRevenueCostRevenueCostPrincipalbusiness3,600,704,841.941,918,216,266.983,117,772,177.101,957,532,407.94Others15,496,557.8613,190,651.1854,616,849.8650,803,823.08Total3,616,201,399.801,931,406,918.163,172,389,026.962,008,336,231.02Relevantinformationofincome:NoneRelevantinformationofperformanceobligation:NoneRelevantinformationofthetransactionpriceapportionedtotheremainingperformanceobligation:TheamountofincomecorrespondingtotheobligationsofcontractperformancewithanexecutedcontractthatisnotperformedorfullyperformedattheendofthereportingperiodisRMB13,382,716.97,ofwhichtheincomeofRMB13,382,716.97isexpectedtobeconfirmedintheyearof2020.Otherexplanation:None62.TaxandsurchargesUnit:RMBItemIncurredinthecurrentperiodIncurredinthepriorperiodCityconstructionandmaintenancetax9,361,201.415,017,119.18Educationsurcharges4,706,053.572,808,844.72Propertytax4,767,707.053,917,690.87Landusetax1,746,360.261,469,916.00Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.145Vehicleandvesselusetax12,360.0010,335.00Stamptax3,007,283.022,567,993.11Environmentalprotectiontax181,672.99122,147.76Localeducationsurcharges3,137,369.061,867,843.13Total26,920,007.3617,781,889.77Otherexplanation:None63.SalescostsUnit:RMBItemIncurredinthecurrentperiodIncurredinthepriorperiodEmployeeremuneration134,986,732.37114,615,949.89Advertisingandpromotionexpenses74,270,803.6263,937,933.85Productpromotionfees411,196,541.39243,505,631.59Shoppingmallmanagementfees48,753,624.0435,493,967.64Transportationexpenses165,690,045.64135,914,356.58Travelingexpenses4,940,998.206,654,290.85Businessentertainmentexpenses436,080.12724,640.09Rentalfee3,183,544.553,278,028.80Others4,612,712.673,644,482.20Total848,071,082.60607,769,281.49Otherexplanation:None64.AdministrativeexpensesUnit:RMBItemIncurredinthecurrentperiodIncurredinthepriorperiodEmployeeremuneration70,379,157.3856,321,695.78Officeallowance10,475,476.217,182,089.19Taxesandfees321,431.07277,958.56Depreciationandamortizationfees31,544,768.0020,500,741.11Rentalfee1,475,930.22598,340.41Travelingexpenses393,381.651,433,480.02Businessentertainmentexpenses1,580,927.021,643,377.69Consultingservicefees4,773,171.554,100,346.82Environmentalprotectionfees1,251,298.691,011,018.14Outsourcingwarehousemanagementfees5,349,303.925,341,198.77Equityincentivecost52,983,211.0824,554,780.00Others5,173,797.223,822,623.73Total185,701,854.01126,787,650.22Otherexplanation:None65.R&DexpensesUnit:RMBItemIncurredinthecurrentperiodIncurredinthepriorperiodFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.146Employeeremuneration17,174,899.1211,550,920.19Directinvestment59,534,214.2443,435,750.19Depreciationandamortizationfees12,202,630.087,315,645.93Others1,949,084.801,738,338.56Total90,860,828.2464,040,654.87Otherexplanation:None66.FinancialexpensesUnit:RMBItemIncurredinthecurrentperiodIncurredinthepriorperiodInterestfees1,140,788.298,797,536.95Less:interestincome4,060,998.021,693,449.28Exchangeprofitandloss-993,705.234,216,398.11Plus:Transactionfeeandothers2,891,912.733,503,937.63Total-1,022,002.2314,824,423.41Otherexplanation:None67.OtherincomeUnit:RMBSourcesofthereturnonotherincomeIncurredinthecurrentperiodIncurredinthepriorperiodFinancialsupportfundsforindustrycollaboration7,892,985.551,677,400.00Therewardof2018supportpolicyofEconomicandInformationTechnologyBureauofPengzhou1,310,000.00SupportfundsforequipmentofPhaseIIproject985,624.08Refundofindividualincometax696,845.15InfrastructureconstructionsubsidiesofthenewfactoryofHubeiC&S535,718.16VATexemptionforretiredsoldiersandemploymentofthepoorpopulation438,350.00Supportfundsforequipmentandtechnologyupgrading403,311.72Theex-postfundsawardedtothefirstbatchoftheunionenterprisesforthetechnicaltransformationin2017317,293.32367,470.56Partial2013-2017financialsupportfundsofManagementCommitteeofSichuanProvincePengzhouIndustrialDevelopmentZone312,723.90312,723.90Awardforbreakthroughswithincreasesinbusinesses300,000.00The25,000tonscapacityexpansionprojectofTangshanBranch287,500.02287,500.02Provincialsupportfundsforenterprisetechnicalupgrading264,124.76FinancialsupportforthesewagetreatmentstationprojectofTangshanBranch238,636.38119,318.19SupportfundsforthetransformationofPhaseIproject224,780.22Subsidiesforphotovoltaicpowerrooftop224,640.00SupportfundsfortheconstructionofAutomatedStorage&RetrievalSystem192,647.0675,000.00Supportfundsfortheconstructionofenvironmentalprotectionfacilities159,523.80159,523.80Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.147Importinterestdiscountsonimportedequipmentin201496,937.5096,937.50Increaseofspecialassetsmanagementplansofsubsidiesfor25,000tonshouseholdpaper79,999.9879,999.98Subsidiesforwatertreatmentproject77,539.3277,539.32Financialsupportforsewagecentralizedwatertreatmentproject60,750.0060,750.00Provincialfundsfortraditionalindustrytransformationprojects35,714.282019energyefficiencyspecialfundofBureauofScience,IndustryandCommerce(enterpriseswithcleanproduction)20,000.002018managementsystemcertificationrewardsofPengzhouMunicipalAdministrationforMarketRegulation10,000.00SubsidiesforpandemicpreventionsystembuildingofenterprisesofEconomicandInformationTechnologyBureauofPengzhou9,000.00Subsidyfundsforhigh-techenterpriseevaluationandcertification(cultivation)800,000.00TechnicaltransformationfundsofFinancialDepartment,ShuangshuiTown,XinhuiDistrict,JiangmenCity392,857.14Subsidyfundsforapplicationsofhigh-techenterprises50,000.00Total15,174,645.204,557,020.4168.IncomeoninvestmentUnit:RMBItemIncurredinthecurrentperiodIncurredinthepriorperiodOthers2,287,274.8772,378.41Total2,287,274.8772,378.41Otherexplanations:"Others"arereturnsonprincipal-protectedwealthmanagementproductsatmaturityandreverserepooftreasurybondsoftheCompany69.Profitofnetexposurehedging:None70.Incomefromchangesinfairvalue:None71.CreditimpairmentlossesUnit:RMBItemIncurredinthecurrentperiodIncurredinthepriorperiodBaddebtlossesfromotherreceivables-1,502,718.88-252,972.40Impairmentlossonaccountsreceivable79,019.131,282,474.48Total-1,423,699.751,029,502.08Otherexplanation:NoneFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.14872.AssetimpairmentlossUnit:RMBItemIncurredinthecurrentperiodIncurredinthepriorperiodII.ImpairmentLossofInventoriesandContractPerformanceCost-850,381.40-589,537.49V.ImpairmentLossesofFixedAssets-1,932,871.50Total-850,381.40-2,522,408.99Otherexplanation:None73.ReturnondisposalofassetsUnit:RMBSourcesofthereturnondisposalofassetsIncurredinthecurrentperiodIncurredinthepriorperiodReturnondisposalofPP&E-896,870.05-389,173.07Total-896,870.05-389,173.0774.Non-operatingrevenueUnit:RMBItemIncurredinthecurrentperiodIncurredinthepriorperiodAmountrecognizedasprofitorlossforthecurrentperiodGovernmentgrants1,997,067.571,651,393.001,997,067.57Incomefromfineandcompensation640,155.42588,849.92640,155.42Others530,259.96495,506.30530,259.96Profitfromdamageandretirementofnon-currentassets1,758.211,758.21Including:Fixedassets1,758.211,758.21Total3,169,241.162,735,749.223,169,241.16Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.149Governmentgrantsrecognizedasprofitorlossforthecurrentperiod:Unit:RMBGrantsIssuerReasonNatureandtypeThesubsidyaffectedtheprofitandlossfortheyearornotSpecialsubsidyornotAmountincurredinthecurrentperiodAmountincurredinthelastperiodRelatedtoassets/incomeSupportfundsofManagementCommitteeofDevelopmentZoneManagementCommitteeofPengzhouCityIndustrialDevelopmentZoneGrantsGrantsreceivedasaresultofcompliancewithlocalgovernmentpoliciessuchasinvestmentattractionandotherlocalsupportpoliciesNoNo1,295,600.00RelatedtoincomeSubsidiesforstableemploymentLaborandEmploymentAdministrationofXiaonanDistrict,XiaoganCityGrantsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductNoNo291,200.00135,000.00RelatedtoincomeTherewardof2017governmentsupportofEconomicandInformationTechnologyBureauofPengzhouEconomicTechnologyandInvestmentPromotionBureauofPengzhouRewardsGrantsreceivedasaresultofcompliancewithlocalgovernmentpoliciessuchasinvestmentattractionandotherlocalsupportpoliciesNoNo100,000.00RelatedtoincomeSubsidiesforenterprisesocialinsuranceHumanResourcesandSocialSecurityDepartmentofHubeiProvinceGrantsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductNoNo44,000.00RelatedtoincomeSpecialfundsforpromotingthestablegrowthofforeigntradeZhongshanBureauofCommerceRewardsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductNoNo41,093.00RelatedtoincomeSubsidiesforstableemploymentLaborandEmploymentAdministrationofGrantsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolNoNo27,200.0032,200.00RelatedtoincomeFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.150XiaonanDistrict,XiaoganCityofapublicutilityorsociallynecessaryproductRewardsubsidyoftheLabourandEmploymentAdministrationfortheemploymentofpoorpeopleinenterprisesHumanResourcesandSocialSecurityBureauofXiaonanDistrict,XiaoganCityGrantsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductNoNo2000,00RelatedtoincomeUnemploymentinsuranceandemploymentstabilizationsubsidiesHumanResourcesandSocialSecurityBureauofLuodingCityGrantsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductNoNo1,500.00RelatedtoincomeSubsidiesforenterprisesocialinsuranceLaborandEmploymentAdministrationofXiaonanDistrict,XiaoganCityGrantsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductNoNo37,332.00RelatedtoincomeSpecialawardfundsfortherestructuringofindustrialenterprisesTreasuryCentralizedReceiptandPaymentCenterofXiaonanDistrict,XiaoganCityRewardsGrantsreceivedasaresultofcompliancewithlocalgovernmentpoliciessuchasinvestmentattractionandotherlocalsupportpoliciesNoNo410,000.00RelatedtoincomeSubsidiesforstableemploymentEmploymentServicesManagementBureauofPengzhouCityGrantsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductNoNo29,142.57RelatedtoincomeUnemploymentinsuranceandemploymentstabilizationsubsidiesEmploymentServiceCenterofHangzhouCityGrantsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductNoNo887.00RelatedtoincomeUnemploymentinsuranceandemploymentstabilizationsubsidiesEmploymentManagementServiceDepartmentofPinghuCityGrantsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductNoNo389,857.30RelatedtoincomeSubsidiesforstableSocialInsuranceGrantsSubsidiesreceivedfortheNoNo245,515.30RelatedtoFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.151employmentCareerManagementBureauofChengduCityperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductincomeOne-timeemploymentintakesubsidyHumanResourcesandSocialSecurityBureauofLuodingCityGrantsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductNoNo238,317.87RelatedtoincomeSubsidiesforstableemploymentSocialInsuranceCareerBureauofYutianCountyGrantsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductNoNo87,935.77RelatedtoincomeUnemploymentinsuranceandemploymentstabilizationsubsidiesHumanResourcesandSocialSecurityBureauofYunfuCityGrantsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductNoNo72,684.00RelatedtoincomeUnemploymentinsuranceandemploymentstabilizationsubsidiesSocialInsuranceFundManagementBureauofZhongshanCityGrantsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductNoNo50,801.57RelatedtoincomeSubsidiesforemployeesofenterpriseswiththeresumptionofworkandproductionDongshengBranchofHumanResourcesandSocialSecurityBureauofZhongshanCityGrantsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductNoNo40,400.00RelatedtoincomeSubsidiesofenterprisetrainingforXiaoganNo.4TechnicalSchoolXiaoganNo.4TechnicalSchoolGrantsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductNoNo33,000.00RelatedtoincomeGrantsforpandemicpreventionFinancialPayment(Accounting)CenterofJiaxingPortAreaGrantsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductNoNo19,750.00RelatedtoincomeFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.152UnemploymentinsuranceandemploymentstabilizationsubsidiesSocialInsuranceFundManagementBureauofYunfuCityGrantsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductNoNo16,343.00RelatedtoincomeSecuritysocialserviceManagementCommitteeofDevelopmentandConstructionofJiaxingPortAreaGrantsGrantsreceivedasaresultofcompliancewithlocalgovernmentpoliciessuchasinvestmentattractionandotherlocalsupportpoliciesNoNo5,000.00RelatedtoincomeUnemploymentinsuranceandemploymentstabilizationsubsidiesHumanResourcesandSocialSecurityBureauofLuodingCityGrantsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductNoNo1,500.00RelatedtoincomeUnemploymentinsuranceandemploymentstabilizationsubsidiesDongshengBranchofHumanResourcesandSocialSecurityBureauofZhongshanCityGrantsSubsidiesreceivedfortheperformanceoftheState'sfunctionofensuringthesupplyorpricecontrolofapublicutilityorsociallynecessaryproductNoNo118.16RelatedtoincomeFundsofpromotionofenterprisedevelopmentYunfuMunicipalFinanceBureauGrantsGrantsreceivedasaresultofcompliancewithlocalgovernmentpoliciessuchasinvestmentattractionandotherlocalsupportpoliciesNoNo83.03RelatedtoincomeTotal1,997,067.571,651,393.00Otherexplanation:NoneFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.15375.Non-operatingexpenseUnit:RMBItemIncurredinthecurrentperiodIncurredinthepriorperiodAmountrecognizedasprofitorlossforthecurrentperiodExternaldonations11,952,705.5991,000.0011,952,705.59Others1,267,171.07269,904.631,267,171.07Lossfromthedamageandabandonmentofnon-currentassets20,306.5050,463.9520,306.50Including:Fixedassets20,306.5050,463.9520,306.50IntangibleassetsTotal13,240,183.16411,368.5813,240,183.16Otherexplanation:None76.Incometaxexpenses(1)TableofincometaxexpenseUnit:RMBItemIncurredinthecurrentperiodIncurredinthepriorperiodCurrentincometaxexpense76,953,980.7555,947,416.55Deferredincometaxexpense8,829,273.177,098,544.68Total85,783,253.9263,045,961.23(2)AdjustmentprocessofaccountingprofitsandincometaxexpensesUnit:RMBItemIncurredinthecurrentperiodTotalprofit538,482,738.53Incometaxexpensescalculatedatthestatutory/applicabletaxrate134,620,684.63Impactsofdifferenttaxratesappliedtosubsidiaries-45,835,743.68Impactsofadjustmentstoincometaxesduringthepriorperiod-10,592,048.77Impactsofnon-deductiblecosts,expensesandlosses7,590,361.74Incometaxes85,783,253.92Otherexplanation:None77.OthercomprehensiveincomeSeetheNotesfordetails.78.Itemsinthecashflowstatement(1)CashreceivedrelatedtootheroperatingactivitiesUnit:RMBFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.154ItemIncurredinthecurrentperiodIncurredinthepriorperiodCurrentaccounts12,564,390.6310,530,072.51Fiscalstimulus36,365,077.8211,722,281.47InterestIncome4,060,998.021,693,449.28Authorizedcollectionofindividualincometaxundertheequityincentive17,943,967.7811,950,663.10Others6,055,212.854,951,827.99Total76,989,647.1040,848,294.35Explanationofcashreceivedrelatedtootheroperatingactivities:None(2)CashpaymentsrelatedtootheroperatingactivitiesUnit:RMBItemIncurredinthecurrentperiodIncurredinthepriorperiodExpensespaid316,942,453.60290,074,941.89Currentaccounts2,335,741.6711,920,797.49Authorizedpaymentofindividualincometaxundertheequityincentive28,191,169.7220,737,285.80Others10,981,895.8342,132.22Total358,451,260.82322,775,157.40Explanationofcashpaidrelatedtootheroperatingactivities:None(3)CashreceivedrelatedtootherinvestingactivitiesUnit:RMBItemIncurredinthecurrentperiodIncurredinthepriorperiodPrincipalrepaymentonmaturityofWMproducts40,000,000.00Principalrepaymentonmaturityoftreasurybondsreverserepurchase87,105,000.00Total127,105,000.00Explanationofcashreceivedrelatedtootherinvestmentactivities:None(4)CashpaymentsrelatedtootherinvestingactivitiesUnit:RMBItemIncurredinthecurrentperiodIncurredinthepriorperiodPurchasingWMproducts212,400,000.00Total212,400,000.00Explanationofcashpaidrelatedtootherinvestmentactivities:None(5)CashreceivedrelatedtootherfinancingactivitiesExplanationofcashreceivedrelatedtootherfinancingactivities:NoneFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.155(6)CashpaymentsrelatedtootherfinancingactivitiesUnit:RMBItemIncurredinthecurrentperiodIncurredinthepriorperiodIncentive,repurchaseandderegistrationofequity3,475,786.26460,054.74Sharerepurchase27,680,721.76Depositsofbills,letterofguaranteeandmarginofletterofcredit9,290,358.8815,847,938.88Total40,446,866.9016,307,993.62Explanationofcashpaidrelatedtootherfinancingactivities:None79.Supplementaryinformationtocashflowstatement(1)SupplementaryinformationtocashflowstatementUnit:RMBSupplementaryInformationAmountofthecurrentperiodAmountoflastperiod1.Reconciliationofnetprofittocashflowsfromoperatingactivities:----NetProfit452,699,484.61274,874,634.43Plus:Provisionsforassetimpairment2,274,081.151,492,906.91ThedepreciationofPP&E,oilandgasassetsandproductivebiologicalassets145,151,634.15118,751,157.73Intangibleassetamortization2,901,377.361,932,054.03Long-termunamortizedexpenses3,200,058.7935,050.14Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets("-"indicatesincome)896,870.05389,173.07Lossesoffixedassetswrite-off("-"indicatesincome)18,548.2950,463.95Financecosts("-"indicatesincome)-2,415,195.589,254,841.95Investmentloss("-"indicatesincome)-2,287,274.87-72,378.41Decreaseindeferredincometaxassets("-"indicatesincrease)1,306,113.021,938,062.68Increaseindeferredincometaxliabilities("-"indicatesdecrease)7,523,160.154,003,929.96Decreaseininventory("-"indicatesincrease)-192,512,816.22-31,434,851.67Decreaseinoperatingreceivables("-"indicatesincrease)-100,988,107.49-25,015,343.48Increaseinoperatingpayables("-"indicatesdecrease)186,790,654.92378,785,937.07Netcashflowsfromoperatingactivities504,558,588.33734,985,638.362.Significantinvestmentandfinancingactivitiesnotinvolvingcash:----3.Netchangesincashandcashequivalents:----Closingbalanceofcash896,433,846.64574,702,760.83Less:Openingbalanceofcash675,996,852.97371,129,472.06Netincreaseincashandcashequivalents220,436,993.67203,573,288.77Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.156(2)Netcashpaidtoacquiresubsidiariesduringtheperiod:None.(3)Netcashreceivedfromthedisposalofsubsidiariesduringtheperiod:None(4)ConstitutionofcashandcashequivalentsUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearI.Cash896,433,846.64675,996,852.97Including:Cashonhand81,123.6276,152.38Bankdepositsalwaysavailableforpayment892,229,613.53675,589,471.75Othermonetaryfundsalwaysavailableforpayment4,123,109.49331,228.84III.ClosingBalanceofCashandCashEquivalents896,433,846.64675,996,852.97Otherexplanation:None80.Itemsnotesinthestatementofchangesinowner'sequityNoteoftheitemnameandamountof"Other"afteradjustmentoftheclosingbalancelastyearandotherissues:None81.AssetswithrestrictedrighttouseorownershipUnit:RMBItemClosingbookvalueoftheperiodReasonforrestrictionOthermonetaryfunds37,040,130.33Marginsforletterofcreditandnoteswereissued.Total37,040,130.33--Otherexplanation:None82.Foreigncurrencymonetaryitems(1)ForeigncurrencymonetaryitemsUnit:RMBItemClosingbalanceofforeigncurrencyConvertedexchangerateClosingconvertedbalanceofRMBMonetaryfunds----134,151,280.56Including:USD17,718,773.097.0825125,493,210.41EURHKD9,474,769.820.91388,658,044.66MOP28.740.887025.49Accountsreceivable----5,770,571.91Including:USD148,630.497.08251,052,675.45EURHKD5,162,942.070.91384,717,896.46Long-termLoans----Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.157Including:USDEURHKDOtherreceivables273,965.37Including:HKD299,808.900.9138273,965.37Accountspayable210,981,113.83Including:USD29,476,438.247.0825208,766,873.83JPY33,600,000.000.06592,214,240.00Otherpayables3,583,345.41Including:HKD3,916,523.140.91383,578,918.85USD625.007.08254,426.56Prepaidaccounts1,564,934.84Including:USDEUR196,400.007.96811,564,934.84Contractliabilities283,545.02Including:HKD235,420.850.9138215,127.57USD9,660.077.082568,417.45Otherexplanation:None(2)Overseasbusinessentities,especiallyimportantones,shalldisclosethemainoverseasbusinessaddress,thestandardcurrencyforaccountingandselectionbasis.Iftherearechangesinthestandardcurrencyforaccounting,reasonsshallbealsoprovided.√Applicable□InapplicableOverseasbusinessentitiesBusinessaddressStandardcurrencyforaccountingZhongShunInternationalCo.,Ltd.HongKongRMBC&SHongKongCo.,Ltd.HongKongRMBC&S(Macao)Co.,Ltd.MacauRMB83.HedgesDisclosureofhedgeditemsandrelatedhedginginstruments,qualitativeandquantitativeinformationabouthedgedriskaccordingtothetypesofhedging:None84.Governmentgrants(1)BasicinformationongovernmentgrantsUnit:RMBCategoryAmountReportingitemsAmountrecognizedasprofitorlossforthecurrentperiodRelatedtoassets24,880,000.00DeferredincomeRelatedtoassets4,272,824.50Otherincome4,272,824.50Relatedtoincome10,204,975.55Otherincome10,204,975.55Relatedtoincome1,997,067.57Non-operatingincome1,997,067.57Total41,354,867.6216,474,867.62Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.158(2)Returnofgovernmentgrants□Applicable√InapplicableOthernotes:SeeNoteVII,51,67,7485.Others:NoneVIII.ChangesintheCombination1.Businesscombinationsnotundercommoncontrol(1)Businesscombinationsnotundercommoncontrolofthecurrentperiod:None(2)CombinationcostsandgoodwillMethodofdeterminingthefairvalueofcombinationcostsandnotesofcontingentconsiderationanditschanges:NoneMainreasonsfortheformationofhugegoodwill:NoneOtherexplanation:None(3)Acquiree'sidentifiableassetsandliabilitiesontheacquisitiondateMethodofdeterminingthefairvalueofidentifiableassetsandliabilities:NoneAcquiree'scontingentliabilitiesassumedinabusinesscombination:NoneOtherexplanation:None(4)ProfitorlossrecalculatedaccordingtothefairvalueofequityheldbeforetheacquisitiondateWhethertherearetransactionsthroughwhichbusinesscombinationisachievedinstagesandthatobtainthecontrolwithinthereportingperiod□Yes√No(5)Noteofbeingunabletodeterminetheconsiderationorthefairvalueofacquiree'sidentifiableassetsandliabilitiesontheacquisitiondateorattheendofthecurrentperiodofcombination:None(6)Othernotes:None2.Businesscombinationsinvolvingenterprisesundercommoncontrol(1)Businesscombinationsundercommoncontrolofthecurrentperiod:None(2)Combinationcosts:None(3)BookvalueofassetsandliabilitiesofthecombinedpartyonthedateofcombinationContingentliabilitiesofthecombinedpartyassumedinabusinesscombination:NoneOtherexplanation:NoneFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.1593.ReversepurchaseBasicinformationoftransactions,basisfortransactionsconstitutingreversepurchase,whetherassetsandliabilitiesretainedbylistedcompaniesconstituteabusinessanditsbasis,determiningofcombinationcosts,adjustmentofequityamountandcalculationwhendealingwithasequitytransactions:None4.DisposalofsubsidiariesWhetherthesituationthatonedisposalofinvestmentinasubsidiaryresultsinalossofcontrolisidentified□Yes√NoWhetherthesituationthatthedisposalofinvestmentinasubsidiaryisachievedinstagesthroughmultipletransactionsandlosethecontrolwithinthereportingperiodisidentified□Yes√No5.ChangesinthescopeofcombinationduetootherreasonsNoteofchangesinthescopeofcombinationduetootherreasons(establishment,liquidationofsubsidiaries,etc.)andrelatedsituations:None6.Others:NoneIX.EquitiesinOtherEntities1.Equityinsubsidiaries(1)CompositionofanenterprisegroupFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.160NameofthesubsidiaryMainbusinessaddressLocationofregistrationPrincipalactivitiesShareholdingpercentageObtainingmethodDirectIndirectJiangmenZhongshunPaperCo.,Ltd.Jiangmen,GuangdongJiangmen,GuangdongR&D,production,andsales(includingonlinesales):Householdpaper,maternalandinfantproducts,cosmetics,wipes,non-wovenproducts,dailynecessities,andcleaningsupplies;andsales(includingonlinesales)ofClassIandIImedicaldevices.(BusinessactivitiesabovearenotrestrictedbytheSpecialAdministrativeMeasuresfortheAccessofForeignInvestment)(Businessactivitiessubjecttoapprovalinaccordancewithlawsshallnotbecarriedoutuntilapprovalfromcompetentauthoritieshasbeenobtained.))88.25%11.75%CapitalcontributionforestablishmentZhejiangZhongshunPaperCo.,Ltd.Jiaxing,ZhejiangJiaxing,ZhejiangGeneralbusinessactivities:paperproductsmanufacturing;salesofpaperproducts;salesofpaperpulp;salesofpersonalhygieneproducts;salesofhygieneproductsanddisposablemedicalproducts;salesofdisinfectant(hazardouschemicalsexclusive);salesofclassImedicaldevices;retailofclassImedicaldevices;salesofclassIImedicaldevices;retailofclassIImedicaldevices;wholesaleofmedicalfacemasks;retailofmedicalfacemasks;salesofgeneralmerchandise;retailofdailynecessities;salesofmaternalandchildsupplies;wholesaleofkitchenware,sanitarywareanddailysundries;wholesaleofcosmetics;retailofcosmetics;wholesaleofneedletextilesandrawmaterials;salesofneedletextiles;salesofchemicalindustryproducts(licensedchemicalproductsexclusive);Internetsales(productsrequiringlicenseforsaleexclusive)(Exceptforbusinessactivitiessubjecttoapprovalinaccordancewithlaws,otherbusinessactivitiesshallbecarriedoutbybusinesslicense.)(Businessactivitiessubjecttoapprovalinaccordancewithlawsshallnotbecarriedoutuntilapprovalfromcompetentauthoritieshasbeenobtained.)75.00%25.00%CapitalcontributionforestablishmentC&SHongKongCo.,Ltd.HongKongHongKongPurchaseofpulp100.00%CapitalcontributionforestablishmentC&S(Yunfu)PaperCo.,Ltd.Yunfu,GuangdongYunfu,GuangdongR&D,production,wholesale,retailandonlinesales:High-endhouseholdpaperseriesproducts,hygieneproducts,maternalandinfantproducts,dailynecessities,cosmetics,medicaldevices,hygienematerials,non-wovenproducts,polymermaterialsandproducts,dailygroceries,andsterilizationsupplies(excludinghazardouschemicals);importandexportofgoodsortechnologies(excludingtheimportandexportofgoodsandtechnologiesprohibitedbythecountryorsubjecttoadministrativeapproval);andwarehouseservices(limitedtowarehousesqualifiedinfireprotectionwithouthazardouschemicals).(Businessactivitiessubjecttoapprovalinaccordancewithlawsshallnotbecarriedoutuntilapprovalfromcompetentauthoritieshasbeenobtained.))100.00%CapitalcontributionforestablishmentC&S(Yunfu)TradingCo.,Ltd.Yunfu,GuangdongYunfu,GuangdongWholesale,retail,onlinesales:paper,woodpulp,hygieneproducts,maternalandchildsupplies,cosmetics,dailynecessities,medicaldevices,dailysundries,disinfectantproducts(hazardouschemicalsexclusive).(Businessactivitiessubjecttoapprovalinaccordancewithlawsshallnotbecarriedoutuntilapprovalfromcompetentauthoritieshasbeenobtained.))100.00%CapitalcontributionforestablishmentFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.161C&S(Macao)Co.,Ltd.MacauMacauWholesaletrade100.00%CapitalcontributionforestablishmentZhongshanZhongshunTradingCo.,Ltd.Zhongshan,GuangdongZhongshan,GuangdongBusinessactivitiescoverwholesale,retailandonlinesales(salesonlyonthethird-partyplatform)ofpaperproducts(printingproductsexclusive),woodpulp,generalmerchandise,hygieneproducts,cosmetics,nonwovenproducts,chemicalproductsfordailyuseandclassImedicaldevices;warehousing(hazardouschemicalsandprecursorchemicalsexclusive);importandexportofgoodsandtechnology;operationsofclassIIandclassIIImedicaldevices.(Businessactivitiesprohibitedbylawsandadministrativeregulationsareexclusive;businessactivitiesrestrictedbylawsandadministrativeregulationsshallnotbecarriedoutuntilpermithasbeenobtained).(Businessactivitiessubjecttoapprovalinaccordancewithlawsshallnotbecarriedoutuntilapprovalfromcompetentauthoritieshasbeenobtained.)100.00%BusinesscombinationsinvolvingenterprisesundercommoncontrolXiaoganC&STradingCo.,Ltd.Xiaogan,HubeiXiaogan,HubeiImport,exportandsalesofpaperproducts,generalmerchandiseandpulpboards;salesofcosmetics,showergelandsanitarypads;salesofbabyproducts(foodexclusive)(Businessactivitiessubjecttopermitshallnotbecarriedoutuntilpermitofcompetentauthoritieshasbeenobtained)100.00%BusinesscombinationsinvolvingenterprisesundercommoncontrolBeijingC&SPaperCo.,Ltd.BeijingBeijingSalesofpaperproducts,dailynecessities,paperpulp,pulpboards;importandexportofgoods.(TheCompanymayselectbusinessitemsandengageinbusinessactivitiesatitsowndiscretionaccordingtolaws;businessitemssubjecttoapprovalinaccordancewithlawsshallbeconductedwithintheapprovedscopeuponapprovalofrelevantauthorities;maynotengageinanybusinessactivitiesprohibitedorrestrictedbythecity'sindustrialpolicies.)100.00%BusinesscombinationsinvolvingenterprisesundercommoncontrolChengduZhongshunPaperCo.,Ltd.Pengzhou,SichuanPengzhou,SichuanSalesofhouseholdpaper,cleaningproducts,generalmerchandise,hygieneproducts,babyproducts,cosmetics,nonwovenproducts,femininehygieneproducts,chemicalproductsfordailyuse,dailynecessities,medicaldevices,medicalsuppliesanddisinfectantproducts(hazardouschemicalsexclusive);electroniccommerce[Businessactivitiessubjecttoapprovalinaccordancewithlawsshallnotbecarriedoutuntilapprovalfromcompetentauthoritieshasbeenobtained].100.00%BusinesscombinationsinvolvingenterprisesundercommoncontrolHangzhouJieRouTradingCo.,Ltd.Hangzhou,ZhejiangHangzhou,ZhejiangWholesale,retail:paperproducts,paperpulp,generalmerchandise;importandexportofgoodsandtechnology(Businessactivitiesprohibitedbynationallawsandadministrativeregulationsareexclusive;businessactivitiesrestrictedbylawsandadministrativeregulationsshallnotbecarriedoutuntilpermithasbeenobtained);otherlegitimatebusinessactivitiesnotsubjecttoapproval(Businessactivitiessubjecttoapprovalinaccordancewithlawsshall100.00%BusinesscombinationsinvolvingenterprisesunderFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.162notbecarriedoutuntilapprovalfromcompetentauthoritieshasbeenobtained)commoncontrolShanghaiHuicongPaperCo.,Ltd.ShanghaiShanghaiHouseholdpaper,paperpulp,pulpboards,importandexportofgoodsandtechnology.[Businessactivitiessubjecttoapprovalinaccordancewithlawsshallnotbecarriedoutuntilapprovalfromcompetentauthoritieshasbeenobtained.]100.00%BusinesscombinationsinvolvingenterprisesundercommoncontrolC&S(Hubei)PaperCo.,Ltd.Xiaogan,HubeiXiaogan,HubeiProductionandsalesofhouseholdpaperproducts,generalmerchandise,chemicalproductsfordailyuse(hazardouschemicalsexclusive),disinfectantproducts(hazardouschemicalsexclusive);R&D,productionandsalesofdailynecessitiesandhygieneproductssuchaswetwipes,sanitarypads,pantstylesanitarypads,liners,adultdiapers,andbabyproducts(foodexclusive)suchasbabydiapersandcottontissues,makeupremoverwipes,cosmetics;wholesaleandretailofclassIandclassIImedicaldevices.(Businessactivitiessubjecttoapprovalinaccordancewithlawsshallnotbecarriedoutuntilapprovalfromcompetentauthoritieshasbeenobtained)93.375%6.625%BusinesscombinationsinvolvingenterprisesundercommoncontrolZhongShunInternationalCo.,Ltd.HongKong,ChinaHongKong,ChinaSalesofpaperproducts100.00%BusinesscombinationsinvolvingenterprisesundercommoncontrolC&S(Sichuan)PaperCo.,Ltd.Pengzhou,SichuanPengzhou,SichuanR&D,production,processing,andsalesofhygieneproducts[tissues(paper)],babyproducts,dailynecessities,non-wovenproducts,andfemininehygieneproducts;exportofself-producedproductsandimportofnecessarymechanicalequipment,partsandaccessories,andrawandauxiliarymaterials;andsalesofdailychemicalproducts,articlesofdailyuse,medicaldevices,medicalsupplies,andsterilizationsupplies(excludinghazardouschemicals)[Businessactivitiessubjecttoapprovalinaccordancewithlawsshallnotbecarriedoutuntilapprovalfromcompetentauthoritieshasbeenobtained.]]100.00%BusinesscombinationsnotundercommoncontrolC&S(Zhongshan)PaperCo.,Ltd.Zhongshan,GuangdongZhongshan,GuangdongProduction,processingandsales:high-classhouseholdpaperproducts(printingprocessexclusive);importandexportofpulpboards(Businessactivitiesprohibitedbylawsandadministrativeregulationsareexclusive;businessactivitiesrestrictedbylawsandadministrativeregulationsshallnotbecarriedoutuntilpermithasbeenobtained).(Businessactivitiessubjecttoapprovalinaccordancewithlawsshallnotbecarriedoutuntilapprovalfromcompetentauthoritieshasbeenobtained.)100.00%BusinesscombinationsnotundercommoncontrolSunDailyNecessitiesYunfu,GuangdongYunfu,GuangdongR&D,production,processing,andonlinesales:paperproducts,hygieneproducts,cosmetics,nonwovenproducts,plasticproductsfordailyuse,chemicalproductsfordailyuse,metalware50.00%50.00%CapitalcontributionFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.163Co.,Ltd.fordailyuse,rubberproductsfordailyuse,andceramicsfordailyuse;importandexportofgoodsortechnology(Importandexportofgoodsortechnologyprohibitedbythecountryorsubjecttoadministrativeapprovalexclusive).(Businessactivitiessubjecttoapprovalinaccordancewithlawsshallnotbecarriedoutuntilapprovalfromcompetentauthoritieshasbeenobtained.))forestablishmentC&S(Dazhou)PaperCo.,Ltd.Dazhou,SichuanDazhou,SichuanR&D,production,processing,andsales(onlinesalesinclusive):householdpaper,tissueboxes,hygieneproducts,cosmetics,non-wovenproducts,plasticproducts,metalware,rubberproducts,ceramics,babyproducts,femininehygieneproductsanddailynecessities;bambooandforesttreesplanting;acquisitionofrawmaterialsofbambooandwoodforpapermaking;R&D,productionandsalesofbamboopulp,woodpulp,bamboochipsandwoodchips;combinedheatandpowerandsales;warehouseleasing;processingandsalesoflimeandlimestone;processingofindustrialwastewaterandgraywaterreuse;generalimportandexportbusiness;salesofconstructionmaterials,hardwareandelectricalproducts,chemicalproducts(hazardousproductsexclusive).(Businessactivitiessubjecttoapprovalinaccordancewithlawsshallnotbecarriedoutuntilapprovalfromcompetentauthoritieshasbeenobtained.)100.00%CapitalcontributionforestablishmentFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.164Noteofthedifferencebetweenthepercentageofsharesheldbyminorityshareholdersinasubsidiaryandthepercentageoftheirvotingrights:NoneBasisforholding50%orlessthanofthevotingrightsbutcontrollingtheinvestee,orholding50%ormoreofthevotingrightsbutnotcontrollingtheinvestee:NoneBasisforcontrollingtheimportantconsolidatedstructuredentities:NoneBasisfordeterminingwhethertheCompanyisanagentoraprincipal:NoneOthernotes:sharesheldindirectlybelongtothesharesheldbywholly-ownedsubsidiariesoftheCompany(2)Importantnon-wholly-ownedsubsidiariesNotethatthepercentageofsharesheldbyminorityshareholdersinasubsidiaryisdifferentfromthepercentageoftheirvotingrights:NoneOthernotes:Therearenoimportantnon-wholly-ownedsubsidiariesoftheCompany(3)Mainfinancialinformationofimportantnon-wholly-ownedsubsidiaries:None(4)Significantrestrictionsontheuseoftheassetsandtherepaymentofthedebtsoftheenterprisegroup:None(5)Financialorothersupportprovidedtoconsolidatedstructuredentities:None2.Transactionsinwhichtheshareofowner'sequityinasubsidiarychangesandstillcontrolsthesubsidiary(1)Descriptionofchangesintheshareofowner’sequityinthesubsidiary:None(2)Theimpactofthetransactiononminorityshareholders’equityandtheequityattributabletoownersoftheparentcompanyOthernotes:TherearenotransactionsoftheCompanyinwhichtheowner'sequityshareofasubsidiarychangesandstillcontrolsthesubsidiary.3.Interestsinjointarrangementsorassociates(1)ImportantjointventuresorassociatesNotethatthepercentageofsharesinjointventuresorassociatesisdifferentfromthepercentageofvotingrights:NoneBasisforholdinglessthan20%ofthevotingrightsbutwithsignificantinfluence,orholding20%ormoreofthevotingrightsbutwithoutsignificantinfluence:NoneFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.165(2)Mainfinancialinformationofimportantjointventures:None(3)Mainfinancialinformationofimportantassociates:None(4)Summaryfinancialinformationofunimportantjointventuresandassociates:None(5)DescriptionofsignificantrestrictionsontheabilityofjointventuresorassociatestotransferfundstotheCompany:None(6)Excesslossesincurredbyjointventuresorassociates:None(7)Unconfirmedcommitmentsrelatedtotheinvestmentinjointventures:None(8)Contingentliabilitiesrelatedtotheinvestmentinjointventuresorassociates:None4.ImportantjointoperationNotethatthepercentageofsharesisdifferentfromthepercentageofvotingrightsinjointoperations:Basisforjointoperationasaseparateentitybutclassifiedasjointoperation:OtherdescriptionsTherewasnoimportantjointoperationoftheCompany5.InterestsinunconsolidatedstructuredentitiesDescriptionofunconsolidatedstructuredentities:TherearenointerestsinunconsolidatedstructuredentitiesoftheCompany.6.Others:NoneX.RisksAssociatedwithFinancialInstrumentsThemainfinancialinstrumentsoftheCompanyincludemonetaryfunds,notesreceivable,accountsreceivable,notespayable,accountspayable,otherpayablesandloans,etc.Pleaserefertorelevantitemsof"NoteVII"fordetailedinformationofallfinancialinstruments.TherisksassociatedwiththesefinancialinstrumentsandtheriskmanagementpoliciesadoptedbytheCompanytoreducetheserisksareasfollows.ThemanagementoftheCompanymanagesandmonitorstheseriskexposurestoensurethattheaboverisksarekeptwithincontrol.ThegoaloftheCompany'sriskmanagementistostrikeaproperbalancebetweenrisksandgainsandminimizethenegativeimpactofrisksonthebusinessperformanceoftheCompanywhilemaximizingtheinterestsofshareholdersandotherequityinvestors.Basedonthisriskmanagementgoal,thebasicstrategyoftheCompany’sriskmanagementistodetermineandanalyzeallkindsofrisksfacedbytheCompany,clarifytheminimumofriskacceptanceandconductriskmanagement,andmonitorrisksofallkindsinatimelyandreliablemannertocontrolriskswithinthelimits.1.CreditriskCreditriskreferstotheriskoffinanciallossesofonepartycausedbythefailureoftheotherpartytoperformitsobligations.ThemainriskfacingtheCompanyiscustomercreditriskcausedbyO/A.Inordertoreducecreditrisk,theCompanyonlyconductstransactionswithrecognizedcustomerswithgoodcreditstatus,andcontinuouslymonitorstheaccountsreceivablethroughcreditmonitoringofexistingcustomersandaginganalysistoensurethattheCompanydoesnotfacetheriskofbaddebtsandkeeptheoverallcreditriskwithincontrol.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.1662.InterestrateriskInterestrateriskreferstotheriskoffluctuationsofthefairvalueorfuturecashflowoffinancialinstrumentsduetochangesinmarketinterestrates.TheinterestrateriskfacedbytheCompanymainlycomesfrombankborrowing.Bydevelopingagoodrelationshipwithbanksandcarryingoutadaptivedesignofcreditlines,typesofcredits,andcreditterms,theCompanyensuressufficientbankcreditlinestomeetitsvariousfinancingneeds.Theriskofinterestratefluctuationcanbereasonablyreducedbyshorteningthetermofasingleloanandspeciallystipulatingprepaymentterms.3.ForeignexchangeriskForeignexchangeriskreferstotheriskoffluctuationsofthefairvalueorfuturecashflowoffinancialinstrumentsduetochangesinforeignexchangerates.TheCompanytriesitsbesttomatchforeigncurrencyincomewithforeigncurrencyexpendituretoreduceforeignexchangerisks.ForeignexchangerisksbornebytheCompanyaremainlyrelatedtoUSdollars.ExceptforpurchasingandsellinginUSDbyitsoverseassubsidiaries,othermajorbusinessactivitiesoftheCompanyarepricedandsettledinRMB.See"NoteVII,82"fortheconversionofforeigncurrencyfinancialassetsandliabilitiesintoRMBonJune30,2020.Duringthereportingperiod,theCompanygeneratedexchangeprofitandlossof-RMB993,705.23.4.LiquidityriskLiquidityriskreferstotheriskofcapitalshortagewhenanenterprisefulfillsitsobligationtosettleaccountsbydeliveringcashorotherfinancialassets.TheCompany'spolicyistoensurethatithassufficientcashtorepaymaturedebts.LiquidityriskiscentrallycontrolledbythefinancialdepartmentsoftheCompany.Thefinancialdepartmentsmonitorcashbalances,negotiablesecuritiesthatcanbecashedinatanytime,andcarryoutrollingforecastsoncashflowsinthenextsixmonthstoensurethattheCompanyhassufficientfundstorepaydebtsunderallreasonableforecasts.XI.DisclosureofFairValue1.Assetsmeasuredatfairvalueandthefairvalueofliabilitiesattheendofthereportingperiod:None2.Basisfordeterminingthemarketpriceofrecurringandnon-recurringfairvaluemeasurementitemsofLevel1:None3.Qualitativeandquantitativeinformationonimportantparametersandvaluationtechniquesusedforrecurringandnon-recurringfairvaluemeasurementitemsofLevel2:None4.Qualitativeandquantitativeinformationonimportantparametersandvaluationtechniquesusedforrecurringandnon-recurringfairvaluemeasurementitemsofLevel3:NoneFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.1675.AdjustmentinformationandanalysisofsensitivityofunobservableparametersbetweenbookvaluesofrecurringfairvaluemeasurementitemsofLevel3atthebeginningofthereportingperiodandthatattheendofthereportingperiod.6.Recurringfairvaluemeasurementitemswithconversionbetweendifferentlevels,reasonsforsuchconversionandpoliciesfordeterminingthetimeofconversion:None7.Changesinvaluationtechniqueswithinthereportingperiodandreasonsforsuchchanges:None8.Financialassetsnotmeasuredatfairvalueandthefairvalueoffinancialassets:None9.Others:NoneXII.RelatedPartiesandRelatedPartyTransactions1.InformationontheparentcompanyoftheCompanyNameofparentcompanyLocationofregistrationPrincipalactivitiesRegisteredcapitalShareholdingpercentageofparentcompanytotheCompanyPercentageofvotingrightofparentcompanytotheCompanyGuangdongZhongshunPaperGroupCo.,Ltd.Zhongshan,GuangdongExternalinvestment;consultingofinformationoncommoditiescirculation(exclusiveofrealestate,laborservices,financialfutures,andstudyingabroad)RMB30million28.64%28.64%ExplanationoftheinformationontheparentcompanyoftheCompanyTheultimatecontrolleroftheCompanyisMr.DengYingzhong,thefather,Mr.DengGuanbiaoandMr.DengGuanjie,whosetwosons.Otherexplanation:None2.InformationonthesubsidiariesoftheCompanySeeNoteIXEquitiesinOtherEntitiesfordetailsoftheinformationonthesubsidiariesoftheCompany.3.InformationonthejointventuresandassociatesoftheCompanySeeNotesfordetailsoftheimportantjointventuresorassociatesoftheCompany.OtherdescriptionsTherearenointerestsinthearrangementofjointventuresorassociatesoftheCompany.4.InformationonotherrelatedpartiesNameofotherrelatedpartiesRelationshipbetweenotherrelatedpartiesandtheCompany(HongKong)ZhongshunCo.,Ltd.Thesecond-largestshareholderoftheCompany,with20.32%oftheCompany'ssharesGuangzhouZhongshunTradeCo.,Ltd.TheCompanycontrolledbythenephewandthehusbandofthenieceofMr.DengYingzhong,theChairmanoftheCompanyBamaZhongshunHealthProductsCo.,Ltd.TheCompanycontrolledbyGuangdongZhongshunPaperGroupCo.,Ltd.,theCompany'scontrollingshareholderYantaiZhongshunNetworkTechnologyCo.,Ltd.Thepartially-ownedsubsidiaryofBamaZhongshunHealthFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.168ProductsCo.,Ltd.controlledbytheCompany'scontrollingshareholdersZhongshunIndustrialInvestment(Shenzhen)Co.,Ltd.TheCompanycontrolledbydefactocontrollers,Mr.DengYingzhong,Mr.DengGuanbiaoandMr.DengGuanjiePengzhouLexiangshenghuoTradingCo.,Ltd.AcompanywheretheseniormanagerYueYong'ssonholdssharesandservesasasupervisorSichuanWestLexiangshenghuoTradingCo.,Ltd.AcompanywheretheseniormanagerYueYong'ssonholdssharesandservesasasupervisorChongqingQinyueTradingCo.,Ltd.AcompanywheretheseniormanagerYueYong'sbrotherholdssharesandservesasasupervisorOtherdescriptionsNote:TheCompany'sdirectors,supervisors,seniormanagersandtheirclosefamilymembersarerelatedtotheCompany.5.Informationonrelatedpartytransactions(1)Relatedpartytransactionsforpurchaseandsaleofmerchandise,andprovisionandacceptanceoflaborservicesPurchaseofMerchandise/AcceptanceofLaborServicesUnit:RMBRelatedpartyContentofrelatedpartytransactionsIncurredinthecurrentperiodApprovedtransactionlimitWhethertooutstripthetransactionlimitIncurredinthepriorperiodBamaZhongshunHealthProductsCo.,Ltd.Others0.00No123,516.43Total0.00123,516.43SaleofMerchandise/ProvisionofLaborServicesUnit:RMBRelatedpartyContentofrelatedpartytransactionsIncurredinthecurrentperiodIncurredinthepriorperiodPengzhouLexiangshenghuoTradingCo.,Ltd.Saleofgoods828,658.05707,224.33SichuanWestLexiangshenghuoTradingCo.,Ltd.Saleofgoods180,809.75691,937.12ChongqingQinyueTradingCo.,Ltd.Saleofgoods247,979.83560,413.05GuangdongZhongshunPaperGroupCo.,Ltd.Saleofgoods56,637.17Total1,314,084.801,959,574.50Explanationoftherelatedpartytransactionforpurchaseandsaleofmerchandise,andprovisionandacceptanceoflaborservices:NoneFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.169(2)Relatedentrustedmanagement/contractingandentrustingmanagement/contractingoutExplanationofrelatedcustody/contracting:NoneExplanationofrelatedmanagement/contractingout:None(3)RelatedleaseTheCompanyasthelessee:Unit:RMBNameoflessorTypeofleasedassetsLeasefeeconfirmedinthecurrentperiodLeasefeeconfirmedinthelastperiodMr.DengYingzhong,Mr.DengGuanbiaoandMr.DengGuanjieHousinglease1,474,047.18593,421.30Explanationofrelatedlease:None(4)Relatedguarantee:None(5)Interbankborrowingbetweenrelatedparties:None(6)Assetstransferanddebtreorganizationbetweenrelatedparties:None(7)RewardsforkeymanagersUnit:RMBItemIncurredinthecurrentperiodIncurredinthepriorperiodRewardsforkeymanagers8,140,753.702,860,477.56(8)OtherrelatedpartytransactionsTherewere16keymanagersintheCompanyinthefirsthalfof2020,14inthefirsthalfof2019.6.Receivablesfromandpayablestorelatedparties(1)ReceivablesUnit:RMBItemnameRelatedpartyBalanceattheendoftheyearBalanceatthebeginningoftheyearBookbalanceImpairmentprovisionBookbalanceImpairmentprovisionAccountsreceivableChongqingQinyueTradingCo.,Ltd.166,513.673,330.27130,446.492,608.93(2)PayablesUnit:RMBItemnameRelatedpartyBookbalanceattheendoftheperiodBookbalanceatthebeginningoftheperiodContractliabilitiesPengzhouLexiangshenghuo771.07503.67Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.170TradingCo.,Ltd.ContractliabilitiesSichuanWestLexiangshenghuoTradingCo.,Ltd.70,468.904,783.907.Commitmentsofrelatedparties:None8.Others:NoneXIII.Share-basedPayment1.Overallinformationonshare-basedpayment√Applicable□InapplicableUnit:RMBCompany'stotalamountofallequityinstrumentsgrantedinthecurrentperiod0.00Company'stotalamountofallequityinstrumentsexercisedinthecurrentperiod8,184,936.00Company'stotalamountofallequityinstrumentsexpiringinthecurrentperiod802,722.00ScopeofexercisepricesandRemainingtermofcontractsoftheCompany'stockoptionsissuedattheendofthereportingperiodTheinitialgrantpriceoftheCompany'sstockoptionsissuedattheendofthereportingperiodisRMB8.53pershare,andthatofreservedonesisRMB14.04pershare.Thecontractswillbevalidfromthedateofgrantingofthestockoptionstothedateofexerciseorinnovationofallthestockoptions,whichshouldnotexceed60months.Otherexplanation:None2.Equity-settledshare-basedpayment√Applicable□InapplicableUnit:RMBMethodofdeterminingthefairvalueofequityinstrumentsatthegrantdate1.Restrictedshares:thestockclosingpricesatthegrantdate2.Stockoptions:Black-Scholesmodelforoptionpricing3.Employeestockownershipplan:thestockclosingpricesatthegrantdateBasisfordeterminingthenumberofvestedequityinstrumentsUponapprovalofthegeneralmeetingReasonsforthemajordifferencebetweentheestimationofthecurrentperiodandthatofthelastperiodNoneTheaccumulatedamountofequity-settledshare-basedpaymentsrecognizedascapitalsurplus116,663,060.26Totalfeesconfirmedbytheequity-settledshare-basedpaymentinthecurrentperiod52,983,211.08Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.171Otherexplanation:None3.Cash-settledshare-basedpayment□Applicable√Inapplicable4.Revisionandterminationofshare-basedpaymentTherewasnorevisionandterminationofshare-basedpaymentoftheCompanyduringthereportingperiod.5.Others:NoneXIV.CommitmentandContingencies1.SignificantcommitmentsSignificantcommitmentsonthebalancesheetdateAsatJune30,2020,theCompanyhadnosignificantcommitmentsthatshouldhavebeendisclosedbutarenotbeendisclosed.2.Contingencies(1)SignificantorcontingentmattersonthebalancesheetdateAsatJune30,2020,theCompanyhadnosignificantorcontingentmattersthatshouldhavebeendisclosedbutarenotbeendisclosed.(2)ExplanationsarealsonecessaryiftheCompanyhasnosignificantorcontingentmatterstobedisclosed.TherearenosignificantorcontingentmatterstobedisclosedintheCompany.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.1723.Others:NoneXV.MattersafterBalanceSheetDate1.Importantnon-adjustment:None2.Profitdistribution:None3.Salesreturn:None4.Explanationonothermattersafterbalancesheetdate:NoneXVI.OtherSignificantMatters1.Correctiontopreviousaccountingerrors(1)Retroactiverestatementapproach(2)Prospectiveapproach2.Debtrestructuring:None3.Assetsreplacing(1)Exchangeofnon-monetaryassets:None(2)Otherassetsreplacing:None4.Annuitiesplan:None5.DiscontinuedoperationsOtherexplanation:None6.Segmentinformation(1)Determinationbasisandaccountingpolicyofreportingsegments.TheCompanyhasnovariousbusinesssegmentswithdifferenteconomicfeaturesanddoesnotdeterminethebusinesssegmentsaccordingtointernalorganizationstructure,managementrequirementsandinternalreportingpolicy.Therefore,therewasnoinformationonreportingsegmentsbasedonbusinesssegmentstobedisclosed.(2)Financialinformationonreportingsegments:None(3)IftheCompanyhasnoreportingsegmentsorrefusestodisclosethetotalassetsandliabilitiesofallthereportingsegments,explanationonreasonsisnecessary:None(4)Otherexplanations:None7.Otherimportanttransactionsandmattersthatmayaffectthedecisionsofinvestors:None8.Others:NoneXVII.NotestoMajorItemsofFinancialStatementsoftheParentCompany1.Accountsreceivable(1)AccountsreceivabledisclosedbycategoriesUnit:RMBTypeBalanceattheendoftheyearBalanceatthebeginningoftheyearFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.173BookbalanceImpairmentprovisionBookvalueBookbalanceImpairmentprovisionBookvalueAmountPercentageAmountProvisionratioAmountPercentageAmountProvisionratioWherein:Accountsreceivableforwhichbaddebtsreserveissetasideinportfolios88,905,031.05100.00%1,600,486.661.80%87,304,544.39128,480,869.70100.00%1,277,442.830.99%127,203,426.87Wherein:Agingportfolio61,915,074.3169.64%1,600,486.662.58%60,314,587.6544,573,108.1134.69%1,277,442.832.87%43,295,665.28Relatedpartyportfolio26,989,956.7430.36%26,989,956.7483,907,761.5965.31%83,907,761.59Total88,905,031.05100.00%1,600,486.661.80%87,304,544.39128,480,869.70100.00%1,277,442.830.99%127,203,426.87Baddebtsreservesetasideindividually:NoneBaddebtsreservesetasideindividually:NoneBaddebtsreservessetasideinportfolios:1,600,486.66Unit:RMBNameBalanceattheendoftheyearBookbalanceImpairmentprovisionProvisionratioWithinthecreditperiod50,696,422.081,013,928.452.00%Creditperiod-oneyear10,962,396.22548,119.815.00%Onetotwoyears256,256.0138,438.4015.00%Twotothreeyears0.000.0030.00%Threetofiveyears0.000.0050.00%Overfiveyears0.000.00100.00%Total61,915,074.311,600,486.66--Descriptionofreasonfortheportfolio:Accountsreceivablewiththesameagehavesimilarcreditriskcharacteristics.Baddebtsreservessetasideinportfolios:NoneDescriptionofreasonfortheportfolio:Ifthebaddebtsreserveofaccountsreceivableissetasideaccordingtogeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodiscloserelevantinformationonbaddebtsreserve:□Applicable√InapplicableDiscloseaccordingtoageUnit:RMBFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.174AgingBalanceattheendoftheyearWithinoneyear(inclusive)88,648,775.04Onetotwoyears256,256.01Total88,905,031.05(2)Baddebtsreservethatissetaside,recoveredortransferredbackProvisionofbaddebtsreserveofthereportingperiod:Unit:RMBTypeBalanceatthebeginningoftheyearAmountofchangeinthereportingperiodBalanceattheendoftheyearProvisionRecoveryortransferbackWrite-offsOthersAccountsreceivable1,277,442.83323,043.830.000.000.001,600,486.66Total1,277,442.83323,043.830.000.000.001,600,486.66Wherein,theamountofrecoveredortransferredbackbaddebtsreserveofthereportingperiodisimportant:None(3)TheaccountsreceivableactuallywrittenoffinthereportingperiodSignificantwrite-offsofaccountsreceivablewherein:NoneExplanationonwrite-offsofaccountsreceivable:TheCompanyhasnoaccountsreceivableactuallywrittenoffinthecurrentperiod.(4)TopfivedebtorsinclosingbalanceofaccountsreceivableUnit:RMBNameofinstitutionBalanceofaccountsreceivableattheendofthereportingperiodPercentageoftotalbalanceofaccountsreceivableattheendofthereportingperiodClosingbalanceforbaddebtsreserve1st23,675,211.6826.63%0.002nd12,054,300.9313.56%241,086.023rd8,198,702.869.22%204,924.144th6,601,029.897.42%226,227.165th5,470,556.646.15%128,677.45Total55,999,802.0062.98%(5)AccountsreceivablederecognizedduetothetransferoffinancialassetsTheCompanyhasnoaccountsreceivablederecognizedduetothetransferoffinancialassetsattheendofthereportingperiod.(6)AmountofassetsandliabilitiesthatareformedbythetransferandongoinginvolvementofaccountsreceivableTheCompanyhasnoamountofassetsandliabilitiesthatareformedbythetransferandongoinginvolvementofaccountsreceivableattheendofthereportingperiod.Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.175Otherexplanation:None2.OtheraccountsreceivableUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearOtherreceivables42,634,717.52637,511,752.54Total42,634,717.52637,511,752.54(1)Interestreceivable1)Classificationofinterestreceivable:None2)SignificantoverdueinterestOtherexplanation:None3)Provisionofbaddebtsreserve□Applicable√Inapplicable(2)Dividendsreceivable1)Classificationofdividendsreceivable:None2)Importantdividendsreceivableexceedingoneyear:None3)Provisionofbaddebtsreserve□Applicable√InapplicableOtherexplanation:None(3)Otherreceivables1)ClassificationbythenatureofamountofotherreceivablesUnit:RMBNatureofamountBookbalanceattheendoftheperiodBookbalanceatthebeginningoftheperiodMarginsanddeposits99,401.0531,500.00Currentaccounts20,531,470.60636,793,035.80Reserve763,749.17702,001.66Others22,446,389.8144,314.48Total43,841,010.63637,570,851.942)ProvisionofbaddebtsreserveUnit:RMBImpairmentprovisionPhaseIPhaseIIPhaseIIITotalExpectedcreditlossinthenext12monthsExpectedcreditlossesinthewholeduration(withoutcreditimpairment)Expectedcreditlossesinthewholeduration(withcreditimpairment)AsatJanuary1,202059,099.4059,099.40Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.176BalanceasatJanuary1,2020inthereportingperiod----Provisioninthereportingperiod1,154,782.821,154,782.82Write-offsinthereportingperiod7,589.117,589.11BalanceasatJune30,20201,206,293.111,206,293.11Changeofbookbalancewhosechangeofamountoflossreservesissignificant□Applicable√InapplicableDiscloseaccordingtoageUnit:RMBAgingBalanceattheendoftheyearWithinoneyear(inclusive)43,809,656.58Onetotwoyears21,000.00Twotothreeyears0.00Overthreeyears10,354.05Threetofouryears8,354.05Overfiveyears2000,00Total43,841,010.633)Baddebtsreservethatissetaside,recoveredortransferredbackProvisionofbaddebtsreserveofthereportingperiod:Unit:RMBTypeBalanceatthebeginningoftheyearAmountofchangeinthereportingperiodBalanceattheendoftheyearProvisionRecoveryortransferbackWrite-offsOthersOtherreceivables59,099.401,154,782.820.007,589.110.001,206,293.11Total59,099.401,154,782.820.007,589.110.001,206,293.11TheCompanyhasactuallywrittenoffotheraccountsreceivableofRMB7,589.11duringthisreportingperiod.Wherein,theamountofrecoveredortransferredbackbaddebtsreserveofthereportingperiodisimportant:None4)OtherreceivablesactuallywrittenoffinthereportingperiodUnit:RMBItemWritten-offamountOtherreceivablesactuallywrittenoff7,589.11Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.177Wherein,write-offsofimportantotherreceivables:None5)TopfivedebtorsinclosingbalanceofotheraccountsreceivableUnit:RMBNameofinstitutionNatureofamountBalanceattheendoftheyearAgingPercentageoftotalclosingbalanceofotherreceivablesClosingbalanceforbaddebtsreserve1stOthers22,214,407.06Withinoneyear50.67%1,110,720.352ndCurrentaccounts18,866,710.02Withinoneyear43.03%3rdCurrentaccounts1,000,000.00Withinoneyear2.28%4thOthers348,626.21Withinoneyear0.80%17,431.315thOthers326,010.00Withinoneyear0.74%16,300.50Total--42,755,753.29--97.52%1,144,452.166)Receivablesinvolvinggovernmentgrants:None7)Otherreceivablesderecognizedduetothetransferoffinancialassets:None8)Amountofassetsandliabilitiesthatareformedbythetransferandongoinginvolvementofotherreceivables:NoneOtherexplanation:None3.Long-termequityinvestmentUnit:RMBItemBalanceattheendoftheyearBalanceatthebeginningoftheyearBookbalanceImpairmentprovisionBookvalueBookbalanceImpairmentprovisionBookvalueInvestmentinsubsidiaries1,918,835,099.921,918,835,099.921,231,245,128.961,231,245,128.96Total1,918,835,099.921,918,835,099.921,231,245,128.961,231,245,128.96(1)InvestmentinsubsidiariesUnit:RMBInvesteeOpeningbalance(bookvalue)IncreaseanddecreaseinthecurrentperiodClosingbalance(bookvalue)ClosingbalanceofimpairmentAdditionalinvestmentDecreasedinvestmentProvisionforimpairmentOthersZhongshanZhongshunTradingCo.,Ltd.91,611,393.556,255,970.6297,867,364.17C&S(Sichuan)PaperCo.,Ltd.161,228,847.046,427,368.42167,656,215.46ZhejiangZhongshunPaperCo.,Ltd.51,259,117.443,019,010.3454,278,127.78C&S12,683,100.000.0012,683,100.00Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.178(Zhongshan)PaperCo.,Ltd.JiangmenZhongshunPaperCo.,Ltd.697,499,879.18687,990.90698,187,870.08C&S(Hubei)PaperCo.,Ltd.43,037,008.50147,600,000.002,762,869.08193,399,877.58C&S(Yunfu)PaperCo.,Ltd.135,405,965.05518,000,000.002,468,898.78655,874,863.83C&S(Yunfu)TradingCo.,Ltd.30,200,274.510.0030,200,274.51ChengduZhongshunPaperCo.,Ltd.1,237,694.6044,850.001,282,544.60XiaoganC&STradingCo.,Ltd.539,220.629,510.00548,730.62ShanghaiHuicongPaperCo.,Ltd.2,796.001,584.004,380.00HangzhouJieRouTradingCo.,Ltd.58,048.0023,772.0081,820.00ZhongShunInternationalCo.,Ltd.281,784.47288,146.82569,931.29SunDailyNecessitiesCo.,Ltd.200,000.000.00200,000.00C&S(Dazhou)PaperCo.,Ltd.6,000,000.000.006,000,000.00Total1,231,245,128.96665,600,000.0021,989,970.961,918,835,099.92(2)Investmentinassociatesandjointventures:None(3)Otherexplanation:None4.OperatingincomeandoperatingcostUnit:RMBItemIncurredinthecurrentperiodIncurredinthepriorperiodRevenueCostRevenueCostPrincipalbusiness493,288,414.96377,715,003.73483,592,449.56393,879,993.17Others360,602,849.07334,899,974.0180,021,531.0474,363,879.79Total853,891,264.03712,614,977.74563,613,980.60468,243,872.96Fulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.179Relevantinformationofperformanceobligation:NoneRelevantinformationofthetransactionpriceapportionedtotheremainingperformanceobligation:TheamountofincomecorrespondingtotheobligationsofcontractperformancewithanexecutedcontractthatarenotperformedorfullyperformedattheendofthereportingperiodisRMB748,564.49,ofwhichtheincomeofRMB748,564.49isexpectedtobeconfirmedintheyearof2020.Otherexplanation:None5.IncomeoninvestmentUnit:RMBItemIncurredinthecurrentperiodIncurredinthepriorperiodIncomefromlong-termequity-basedinvestmentaccountedforusingthecostmethod140,000,000.00Others2,109,515.7772,378.41Total142,109,515.7772,378.416.Others:NoneXVIII.SupplementaryInformation1.Statementofnon-recurringprofitandlossofthecurrentperiod√Applicable□InapplicableUnit:RMBItemAmountRemarksProfitandlossfromdisposalofnon-currentassets-896,870.05Governmentgrantsmeasuredatfairvaluethroughprofitandlossofthecurrentperiod(exceptforthegovernmentgrantsthatarecloselyrelatedtotheCompany'sbusinessanddistributedinafixquotaoramountinaccordancewithunifiednationalstandards)16,474,867.62Profitandlossfromassetsentrustedtoothersforinvestmentormanagement2,287,274.87Returnsonprincipal-protectedwealthmanagementproductsatmaturityandreverserepooftreasurybondsOthernon-operatingexpensesexcludingtheaboveitems-11,371,164.42Less:Influenceofincometax330,361.37Total6,163,746.65--ThereasonswhytheCompanydefinedcertainitemsasnon-recurringprofitandlossinlinewiththeNo.1ExplanatoryAnnouncementonInformationDisclosureofCompaniesOfferingSecuritiestothePublic—Non-recurringProfitandLossandsomeitemslistedintheaboveannouncementasrecurringprofitandlossshallbespecified.□Applicable√InapplicableFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.1802.ReturnonnetassetsandearningspershareProfitinthereportingperiodWeightedaveragereturnonnetassetsEarningspershareBasicearningspershare(RMB/share)Dilutedearningspershare(RMB/share)NetprofitattributabletotheordinaryshareholdersoftheCompany10.46%0.35190.3462NetprofitattributabletotheordinaryshareholdersoftheCompanyafterexcludingnon-recurringprofitandloss10.32%0.34710.34153.Differencesbetweenaccountingdatadisclosedunderdomesticandoverseasaccountingstandards(1)DifferencesinnetprofitandnetassetsbetweenthefinancialstatementsdisclosedundertheIASandthePRCGAAPinthesameperiod.□Applicable√Inapplicable(2)DifferencesinnetprofitandnetassetsbetweenthefinancialstatementsdisclosedundertheoverseasaccountingstandardsandthePRCGAAPinthesameperiod.□Applicable√Inapplicable(3)Explanationofreasonsforthedifferencesbetweenaccountingdatadisclosedunderdomesticandoverseasaccountingstandards.Ifdifferencesinthedatauponauditofoverseasauditinstitutionsareadjusted,thenameoftheinstitutionshouldbenoted.4.OthersFulltextof2020Semi-annualReportofC&SPaperCo.,Ltd.181SectionXIICatalogofDocumentsforReferenceI.The2020Semi-annualReportwiththesignatureofMr.DengYingzhong,ChairmanoftheCompany.II.ThefinancialstatementssignedandsealedbyMr.DengYingzhong,legalrepresentative,Mr.DongYe,personinchargeofaccounting,andMs.XuXianjing,personinchargeofaccountingdepartmentoftheCompany.III.TheoriginalmanuscriptsofallcorporatedocumentsandmanuscriptsofannouncementsthatwerepubliclydisclosedonthenewspapersdesignatedbytheChinaSecuritiesRegulatoryCommissionduringthereportingperiod.IV.Otherrelevantinformation.V.Placewheredocumentsforreferencecanbeobtained:OfficeofBoardofDirectorsoftheCompany.IntheeventofanyinconsistencybetweentheChineseandEnglishversionsofthereport,theChineseversionannouncedshallprevail. SectionIImportantNotice,ContentsandInterpretation SectionIICompanyProfileandKeyFinancialIndicators I.CompanyProfile II.ContactandContactInformation III.OtherInformation 1.Companycontact 2.Informationdisclosureandplacewherefinancialstatementsarekept 3.Otherrelevantinformation IV.MainAccountingDataandFinancialIndicators V.DifferencesbetweenAccountingDataDisclosedunderDomesticandOverseasAccountingStandards 1.DifferencesinnetprofitandnetassetsbetweenthefinancialstatementsdisclosedundertheIASandthePRCGAAP 2.DifferencesinnetprofitandnetassetsbetweenthefinancialstatementsdisclosedunderoverseasaccountingstandardsandthePRCGAAP VI.ItemsandAmountsofNon-RecurringProfitandLoss SectionIIIBusinessOverview I.MainBusinessesoftheCompanyduringtheReportingPeriod II.MajorChangesinMainAssets 1.Majorchangesinmainassets 2.Mainoverseasassets III.AnalysisofCoreCompetitiveness SectionIVDiscussionandAnalysisofOperationStatus I.Overview II.AnalysisofMainBusinesses III.AnalysisofNon-mainBusinesses IV.AnalysisofAssetsandLiabilities 1.Significantchangesinthecompositionofassets 2.Assetsandliabilitiesmeasuredatfairvalue 3.Restrictionofmainassetsandrightsasattheendofthereportingperiod V.AnalysisofInvestment 1.Overview 2.Majorequityinvestmentduringthereportingperiod 3.Majornon-equityinvestmentduringthereportingperiod 4.Financialassetsmeasuredatfairvalue 5.Financialassetinvestment (1)Securityinvestment (2)Derivativeinvestment 6.Utilizationofraisedfunds 7.Descriptionofkeyprojectsnotinvestedwithraisedfunds VI.MajorAssetandEquitySales 1.Salesofmajorassets 2.Salesofmajorequity VII.AnalysisofMainHoldingandJoint-stockCompanies VIII.StructuredEntityControlledbytheCompany IX.PredictionofOperatingResultsfromJanuarytoSeptember2019 X.RisksandCountermeasures SectionVImportantEvents I.AnnualandExtraordinaryGeneralMeetingsduringtheReportingPeriod 1.Generalmeetingofshareholdersduringthereportingperiod 2.Requestforextraordinarygeneralmeetingsbypreferenceshareholderswithrecoveredvotingrights II.ProfitDistributionandConversionofCapitalReservetoShareCapitalduringtheReportingPeriod III.CommitmentsFulfilledbytheDeFactoController,Shareholders,RelatedParties,andAcquirersoftheCompanyduringtheReportingPeriodandCommitmentsnotFulfilledbyThemasattheEndoftheReportingPeriod IV.EngagementandDismissalofanAccountingFirm V.ExplanationbytheBoardofDirectorsandtheBoardofSupervisorsofthe"Non-standardAuditReport"fortheReportingPeriodIssuedbytheAccountingFirm VI.ExplanationbytheBoardofDirectorsofthe"Non-standardAuditReport"forLastYear VII.BankruptcyRestructuring-relatedMatters VIII.Litigations IX.DoubtsfromMedia X.PenaltiesandRemediation XI.IntegrityRecordsoftheCompanyanditsControllingShareholderandDeFactoController XII.ImplementationofStockIncentivePlan,EmployeeStockOwnershipPlan,andOtherEmployeeIncentivesoftheCompany XIII.MaterialRelatedPartyTransaction 1.Relatedpartytransactionrelevanttodailyoperations 2.Relatedpartytransactionsofacquisitionandsaleofassetsorequity 3.Relatedpartytransactionsofjointoutboundinvestment 4.Relatedpartytransactionsofcreditor'srightsanddebts 5.Othermaterialrelatedpartytransactions XIV.MisappropriationofFundsforNon-operatingPurposesbyControllingShareholdersandRelatedParties XV.MaterialContractsandTheirPerformance 1.Custody,contractandlease (1)Custody (2)Contract (3)Lease 2.Materialguarantee (1)Guarantee (2)Externalguaranteeinviolationofprescribedprocedures 3.EntrustedWM 4.Othermajorcontracts XVI.SocialResponsibility 1.Majorenvironmentalissues 2.Performanceofsocialresponsibilityfortargetedpovertyalleviation (1)Targetedpovertyreliefplanning (2)Summaryofsemi-annualtargetedpovertyalleviation (3)Targetedpovertyreliefachievements (4)Subsequenttargetedpovertyalleviationplan XVII.StatementonOtherSignificantEvents XVIII.MajorIssuesoftheCompany’sSubsidiaries SectionVIEquityChangesandShareholders I.ChangesinShares 1.Changesinshares 2.Changesinrestrictedshares II.DetailsofSecuritiesIssuanceandListing III.NumberofShareholdersandParticularsofShareholding IV.TheChangeinControllingShareholderorDeFactoController SectionVIIDetailsofPreferenceShares SectionVIIIConvertibleCorporateBonds SectionIXProfilesofDirectors,Supervisors,andSeniorManagement I.ChangesinShareholdingofDirectors,SupervisorsandSeniorManagers II.ChangesinDirectors,SupervisorsandSeniorManagers SectionXCorporateBonds SectionXIFinancialReport I.AuditReport II.FinancialStatements 1.Consolidatedbalancesheet 2.Theparentcompany'sbalancesheet 3.Consolidatedincomestatement 4.Incomestatementoftheparentcompany 5.Consolidatedstatementofcashflows 6.Statementofcashflowsoftheparentcompany 7.Consolidatedstatementofchangesinowner'sequity 8.Statementofchangesinowner'sequityoftheparentcompany III.BasicInformationoftheCompany 1.Developmenthistoryofthecompany 2.Theregisteredaddress,formoforganization,andheadquartersoftheCompany 3.Nature,scope,andmainbusinessactivitiestheCompany 4.DefactocontrolleroftheCompany 5.Theissuerandthedateoftheapprovalofthefinancialstatements 6.Thescopeoftheconsolidationoffinancialstatements IV.PreparationBasisforFinancialStatements 1.Basisofpreparation 2.Goingconcern V.SignificantAccountingPoliciesandAccountingEstimates 1.Statementofcompliancewiththeaccountingstandardsforbusinessenterprises 2.Accountingperiod 3.Operatingcycle 4.Standardcurrencyforaccounting 5.Theaccountingprocessingmeasuresofbusinesscombinationsinvolvingenterprisesundercommoncontrolandbusinesscombinationsinvolvingenterprisesnotundercommoncontrol 6.Methodsforpreparationofconsolidatedfinancialstatements 7.Classificationofjointoperationarrangementsandaccountingprocessingmethodsforjointoperations 8.Criteriaforrecognitionofcashandcashequivalents 9.Translationoftransactionsandfinancialstatementsdenominatedinforeigncurrencies 10.Financialinstruments 11.Notesreceivable 12.Accountsreceivable 13.Accountsreceivablefinancing 14.Otherreceivables 15.Inventories 16.Contractassets 17.Contractcosts 18.Assetsheldforsale 19.Investmentsincreditor'srights 20.Otherinvestmentsincreditor'srights 21.Long-termreceivables 22.Long-termequityinvestments 23.Investmentrealestate 24.Fixedassets (1)Recognitionconditions (2)Depreciationmethod (3)Determinationbasis,pricingmethodanddepreciationmethodoffixedassetsacquiredunderfinanceleases 25.Constructioninprocess 26.Borrowingcosts 27.Biologicalassets 28.Oil&gasassets 29.Right-of-useassets 30.Intangibleassets (1)Pricingmethod,servicelife,andimpairmenttest (2)Accountingpolicyforexpenditureoninternalresearchanddevelopment 31.Long-termassetsimpairment 32.Long-termunamortizedexpenses 33.Contractliabilities 34.Employeeremuneration (1)Accountingtreatmentmethodforshort-termremuneration (2)Accountingtreatmentmethodforpost-employmentbenefits (3)Accountingtreatmentmethodfordismissalbenefits (4)Accountingtreatmentmethodforotherlong-termemployeebenefits 35.Leaseliabilities 36.Accruedliabilities 37.Share-basedpayment 38.Preferenceshares,perpetualbondsandotherfinancialinstruments 39.Revenue 40.Governmentgrants 41.Deferredincometaxassets/deferredincometaxliabilities 42.Leases (1)Accountingtreatmentmethodforoperatinglease (2)Accountingtreatmentmethodforfinancelease 43.Otherimportantaccountingpoliciesandaccountingestimates 44.Changesinimportantaccountingpolicyandaccountingestimates (1)Keychangestoaccountingpolicies (2)Keychangesinaccountingestimates (3)Since2020,theadjustmentofrelevantitemsofthefinancialstatementsatthebeginningoftheyearforthefirsttimeaccordingtotheimplementationofthenewstandardsforincome,andthenewleasingstandardsforthefirsttime. (4)ExplanationoftheretrospectiveadjustmentofpreviouscomparabledataaccordingtotheimplementationofthenewRevenueStandardsandthenewleasingstandardsforthefirsttimein2020. 45.Others VI.Taxes 1.Maintaxtypesandtaxrates 2.Taxincentive 3.Others VII.NotesonItemsinConsolidatedFinancialStatement 1.Monetarycapital 2.Transactionalfinancialassets:None 3.Derivativefinancialassets:None 4.Notesreceivable (1)Classifiednotesreceivable (2)Baddebtsreservethatissetaside,recoveredortransferredback (3)ThenotesreceivablethattheCompanyhaspledgedattheendofthereportingperiod:None (4)NotesreceivablethattheCompanyhasendorsedordiscountedattheendofthereportingperiodandarenotdueonthedateofthebalancesheet:None (5)Notesthataretransferredtonotesreceivablebecausethedrawerdoesnotperformthecontractattheendofthereportingperiod:None (6)Thenotesreceivableactuallywrittenoffinthereportingperiod 5.Accountsreceivable (1)Accountsreceivabledisclosedbycategories (2)Baddebtsreservethatissetaside,recoveredortransferredback (3)Theaccountsreceivableactuallywrittenoffinthereportingperiod (4)Topfivedebtorsinclosingbalanceofaccountsreceivable (5)Accountsreceivablederecognizedduetothetransferoffinancialassets (6)Amountofassetsandliabilitiesthatareformedbythetransferandongoinginvolvementofaccountsreceivable 6.Accountsreceivablefinancing 7.Prepayments (1)Prepaymentslistedasfollowsbasedonage (2)Topfivepayeesinclosingbalanceofprepayment 8.Otherreceivables (1)Interestreceivable 1)Classificationofinterestreceivable:None 2)Significantoverdueinterest:None 3)Provisionofbaddebtsreserve (2)Dividendsreceivable 1)Classificationofdividendsreceivable:None 2)Importantdividendsreceivableexceedingoneyear:None 3)Provisionofbaddebtsreserve (3)Otherreceivables 1)Classificationbythenatureofamountofotherreceivables 2)Provisionofbaddebtsreserve 3)Baddebtsreservethatissetaside,recoveredortransferredback 4)Otherreceivablesactuallywrittenoffinthereportingperiod 5)Topfivedebtorsinclosingbalanceofotheraccountsreceivable 6)Receivablesinvolvinggovernmentgrants:None 7)Otherreceivablesderecognizedduetothetransferoffinancialassets:None 8)Amountofassetsandliabilitiesthatareformedbythetransferandongoinginvolvementofotherreceivables:None 9.Inventory (1)Categoriesofinventories (2)Provisionforimpairmentofinventoriesorprovisionsforcontractcost (3)Explanationthatbalanceofinventoryattheendofthereportingperiodincludeamountofcapitalizationofborrowingcosts:None (4)Explanationonamortizedamountinthereportingperiodofcontractcost:None 10.Contractassets 11.Assetsheldforsale 12.Non-currentassetsduewithinoneyear:None 13.Othercurrentassets 14.Investmentsincreditor'srights 15.Otherinvestmentsincreditor'srights 16.Long-termreceivables (1)Long-termreceivables (2)Long-termreceivablesderecognizedduetothetransferoffinancialassets:None (3)Amountofassetsandliabilitiesthatareformedbythetransferandongoinginvolvementoflong-termreceivables:None 17.Long-termequityinvestment 18.Investmentinotherequityinstruments 19.Othernon-currentfinancialassets 20.Investmentrealestate (1)Investmentrealestatemeasuredatcost (2)Investmentrealestatemeasuredatfairvalue (3)Informationoninvestmentrealestatethatthecertificateoftitlehasnotbeenissued 21.Fixedassets (1)Informationonfixedassets (2)Informationontemporarilyidlefixedassets (3)Fixedassetsacquiredthroughfinancelease:None (4)Fixedassetsleasedthroughoperatinglease:None (5)Informationonfixedassetsthatthecertificateoftitlehasnotbeenissued (6)Disposaloffixedassets:None 22.Constructioninprocess (1)Constructioninprogress (2)Changesinsignificantconstructioninprogressofthecurrentperiod (3)Theconstruction-in-progressprovisionsetasideinthecurrentperiod (4)Constructionmaterials:None 23.Productivebiologicalassets (1)Productivebiologicalassetsmeasuredatcost (2)Productivebiologicalassetsmeasuredatfairvalue 24.Oil&gasassets 25.Right-of-useassets:None 26.Intangibleassets (1)Intangibleassets (2)Informationonthelanduserightsthatthecertificateoftitlehasnotbeenissued:None 27.Developmentexpenses:None 28.Goodwill (1)Originalbookvalueofthegoodwill (2)ProvisionforImpairmentofgoodwill 29.Long-termunamortizedexpenses 30.Deferredincometaxassets/deferredincometaxliabilities (1)Deferredincometaxassetsthatwerenotoffset (2)Deferredincometaxliabilitiesthatwerenotoffset (3)Deferredincometaxassetsorliabilitiespresentedwiththenetamountafteroffset (4)Breakdownoftheunconfirmeddeferredincometaxassets (5)Deductiblelossoftheunconfirmeddeferredincometaxassetswillbedueinthenextyear:None 31.Othernon-currentassets 32.Short-termborrowings (1)Categoryofshort-termborrowings (2)Short-termborrowingsoverduebutunpaid:None 33.Tradablefinancialliabilities:None 34.Derivativefinancialliabilities:None 35.Notespayable 36.Accountspayable (1)Listofaccountspayable (2)Importantaccountspayableexceedingoneyear 37.Paymentsreceivedinadvance (1)Listofpaymentsreceivedinadvance:None (2)Importantpaymentsreceivedinadvanceexceedingoneyear 38.Contractliabilities 39.Employeeremunerationpayable (1)Listofemployeeremunerationpayable (2)Listofshort-termremuneration (3)Listofdefinedcontributionplans 40.Taxandfeespayable 41.Otherpayables (1)Interestpayable (2)Dividendspayable (3)Otherpayables (1)Otherpayableslistedbasedonamountnature 2)Otherimportantaccountspayableexceedingoneyear 42.Liabilitiesheldforsale:None 43.Non-currentliabilitiesduewithinoneyear 44.Othercurrentliabilities:None 45.Long-termborrowings (1)Categoryoflong-termborrowings 46.Bondspayable (1)Bondspayable:None (2)Changesintheincreaseanddecreaseofthebondspayable(excludingotherfinancialinstrumentssuchaspreferencesharesandperpetualbondsthataredividedintofinancialliabilities):None (3)Descriptionsoftheconditionsforconvertingbondsandconvertingtimeofconvertiblebonds:None (4)Descriptionsofotherfinancialinstrumentsthataredividedintofinancialliabilities 47.Leaseliabilities:None 48.Long-termpayables:None (1)Long-termpayableslistedbasedonamountnature:None (2)Specialpayables:None 49.Long-termemployeeremunerationpayable (1)Tableoflong-termemployeeremunerationpayable:None (2)Changesofthedefinedbenefitplan:None 50.Projectedliabilities:None 51.Deferredincome 52.Othernon-currentliabilities:None 53.Sharecapital 54.Otherequityinstruments (1)Basicinformationonotherfinancialinstrumentsinissueattheendofthereportingperiod,suchasthepreferencesharesandperpetualbonds:None (2)Tableofchangesinotherfinancialinstrumentsinissueattheendofthereportingperiod,suchasthepreferencesharesandperpetualbonds 55.Capitalreserve 56.Treasuryshares 57.Othercomprehensiveincome:None 58.Specialreserves:None 59.Surplusreserve 60.Retainedprofit 61.Operatingincomeandoperatingcost 62.Taxandsurcharges 63.Salescosts 64.Administrativeexpenses 65.R&Dexpenses 66.Financialexpenses 67.Otherincome 68.Incomeoninvestment 69.Profitofnetexposurehedging:None 70.Incomefromchangesinfairvalue:None 71.Creditimpairmentlosses 72.Assetimpairmentloss 73.Returnondisposalofassets 74.Non-operatingrevenue 75.Non-operatingexpense 76.Incometaxexpenses (1)Tableofincometaxexpense (2)Adjustmentprocessofaccountingprofitsandincometaxexpenses 77.Othercomprehensiveincome 78.Itemsinthecashflowstatement (1)Cashreceivedrelatedtootheroperatingactivities (2)Cashpaymentsrelatedtootheroperatingactivities (3)Cashreceivedrelatedtootherinvestingactivities (4)Cashpaymentsrelatedtootherinvestingactivities (5)Cashreceivedrelatedtootherfinancingactivities (6)Cashpaymentsrelatedtootherfinancingactivities 79.Supplementaryinformationtocashflowstatement (1)Supplementaryinformationtocashflowstatement (2)Netcashpaidtoacquiresubsidiariesduringtheperiod:None. (3)Netcashreceivedfromthedisposalofsubsidiariesduringtheperiod:None (4)Constitutionofcashandcashequivalents 80.Itemsnotesinthestatementofchangesinowner'sequity 81.Assetswithrestrictedrighttouseorownership 82.Foreigncurrencymonetaryitems (1)Foreigncurrencymonetaryitems (2)Overseasbusinessentities,especiallyimportantones,shalldisclosethemainoverseasbusinessaddress,thestandardcurrencyforaccountingandselectionbasis.Iftherearechangesinthestandardcurrencyforaccounting,reasonsshallbealso... 83.Hedges 84.Governmentgrants (1)Basicinformationongovernmentgrants (2)Returnofgovernmentgrants 85.Others:None VIII.ChangesintheCombination 1.Businesscombinationsnotundercommoncontrol (1)Businesscombinationsnotundercommoncontrolofthecurrentperiod:None (2)Combinationcostsandgoodwill (3)Acquiree'sidentifiableassetsandliabilitiesontheacquisitiondate (4)Profitorlossrecalculatedaccordingtothefairvalueofequityheldbeforetheacquisitiondate (5)Noteofbeingunabletodeterminetheconsiderationorthefairvalueofacquiree'sidentifiableassetsandliabilitiesontheacquisitiondateorattheendofthecurrentperiodofcombination:None (6)Othernotes:None 2.Businesscombinationsinvolvingenterprisesundercommoncontrol (1)Businesscombinationsundercommoncontrolofthecurrentperiod:None (2)Combinationcosts:None (3)Bookvalueofassetsandliabilitiesofthecombinedpartyonthedateofcombination 3.Reversepurchase 4.Disposalofsubsidiaries 5.Changesinthescopeofcombinationduetootherreasons 6.Others:None IX.EquitiesinOtherEntities 1.Equityinsubsidiaries (1)Compositionofanenterprisegroup (2)Importantnon-wholly-ownedsubsidiaries (3)Mainfinancialinformationofimportantnon-wholly-ownedsubsidiaries:None (4)Significantrestrictionsontheuseoftheassetsandtherepaymentofthedebtsoftheenterprisegroup:None (5)Financialorothersupportprovidedtoconsolidatedstructuredentities:None 2.Transactionsinwhichtheshareofowner'sequityinasubsidiarychangesandstillcontrolsthesubsidiary (1)Descriptionofchangesintheshareofowner’sequityinthesubsidiary:None (2)Theimpactofthetransactiononminorityshareholders’equityandtheequityattributabletoownersoftheparentcompany 3.Interestsinjointarrangementsorassociates (1)Importantjointventuresorassociates (2)Mainfinancialinformationofimportantjointventures:None (3)Mainfinancialinformationofimportantassociates:None (4)Summaryfinancialinformationofunimportantjointventuresandassociates:None (5)DescriptionofsignificantrestrictionsontheabilityofjointventuresorassociatestotransferfundstotheCompany:None (6)Excesslossesincurredbyjointventuresorassociates:None (7)Unconfirmedcommitmentsrelatedtotheinvestmentinjointventures:None (8)Contingentliabilitiesrelatedtotheinvestmentinjointventuresorassociates:None 4.Importantjointoperation 5.Interestsinunconsolidatedstructuredentities 6.Others:None X.RisksAssociatedwithFinancialInstruments XI.DisclosureofFairValue 1.Assetsmeasuredatfairvalueandthefairvalueofliabilitiesattheendofthereportingperiod:None 2.Basisfordeterminingthemarketpriceofrecurringandnon-recurringfairvaluemeasurementitemsofLevel1:None 3.Qualitativeandquantitativeinformationonimportantparametersandvaluationtechniquesusedforrecurringandnon-recurringfairvaluemeasurementitemsofLevel2:None 4.Qualitativeandquantitativeinformationonimportantparametersandvaluationtechniquesusedforrecurringandnon-recurringfairvaluemeasurementitemsofLevel3:None 5.AdjustmentinformationandanalysisofsensitivityofunobservableparametersbetweenbookvaluesofrecurringfairvaluemeasurementitemsofLevel3atthebeginningofthereportingperiodandthatattheendofthereportingperiod. 6.Recurringfairvaluemeasurementitemswithconversionbetweendifferentlevels,reasonsforsuchconversionandpoliciesfordeterminingthetimeofconversion:None 7.Changesinvaluationtechniqueswithinthereportingperiodandreasonsforsuchchanges:None 8.Financialassetsnotmeasuredatfairvalueandthefairvalueoffinancialassets:None 9.Others:None XII.RelatedPartiesandRelatedPartyTransactions 1.InformationontheparentcompanyoftheCompany 2.InformationonthesubsidiariesoftheCompany 3.InformationonthejointventuresandassociatesoftheCompany 4.Informationonotherrelatedparties 5.Informationonrelatedpartytransactions (1)Relatedpartytransactionsforpurchaseandsaleofmerchandise,andprovisionandacceptanceoflaborservices (2)Relatedentrustedmanagement/contractingandentrustingmanagement/contractingout (3)Relatedlease (4)Relatedguarantee:None (5)Interbankborrowingbetweenrelatedparties:None (6)Assetstransferanddebtreorganizationbetweenrelatedparties:None (7)Rewardsforkeymanagers (8)Otherrelatedpartytransactions 6.Receivablesfromandpayablestorelatedparties (1)Receivables (2)Payables 7.Commitmentsofrelatedparties:None 8.Others:None XIII.Share-basedPayment 1.Overallinformationonshare-basedpayment 2.Equity-settledshare-basedpayment 3.Cash-settledshare-basedpayment 4.Revisionandterminationofshare-basedpayment 5.Others:None XIV.CommitmentandContingencies 1.Significantcommitments 2.Contingencies (1)Significantorcontingentmattersonthebalancesheetdate (2)ExplanationsarealsonecessaryiftheCompanyhasnosignificantorcontingentmatterstobedisclosed. 3.Others:None XV.MattersafterBalanceSheetDate 1.Importantnon-adjustment:None 2.Profitdistribution:None 3.Salesreturn:None 4.Explanationonothermattersafterbalancesheetdate:None XVI.OtherSignificantMatters 1.Correctiontopreviousaccountingerrors (1)Retroactiverestatementapproach (2)Prospectiveapproach 2.Debtrestructuring:None 3.Assetsreplacing (1)Exchangeofnon-monetaryassets:None (2)Otherassetsreplacing:None 4.Annuitiesplan:None 5.Discontinuedoperations 6.Segmentinformation (1)Determinationbasisandaccountingpolicyofreportingsegments. (2)Financialinformationonreportingsegments:None (3)IftheCompanyhasnoreportingsegmentsorrefusestodisclosethetotalassetsandliabilitiesofallthereportingsegments,explanationonreasonsisnecessary:None (4)Otherexplanations:None 7.Otherimportanttransactionsandmattersthatmayaffectthedecisionsofinvestors:None 8.Others:None XVII.NotestoMajorItemsofFinancialStatementsoftheParentCompany 1.Accountsreceivable (1)Accountsreceivabledisclosedbycategories (2)Baddebtsreservethatissetaside,recoveredortransferredback (3)Theaccountsreceivableactuallywrittenoffinthereportingperiod (4)Topfivedebtorsinclosingbalanceofaccountsreceivable (5)Accountsreceivablederecognizedduetothetransferoffinancialassets (6)Amountofassetsandliabilitiesthatareformedbythetransferandongoinginvolvementofaccountsreceivable 2.Otheraccountsreceivable (1)Interestreceivable 1)Classificationofinterestreceivable:None 2)Significantoverdueinterest 3)Provisionofbaddebtsreserve (2)Dividendsreceivable 1)Classificationofdividendsreceivable:None 2)Importantdividendsreceivableexceedingoneyear:None 3)Provisionofbaddebtsreserve (3)Otherreceivables 1)Classificationbythenatureofamountofotherreceivables 2)Provisionofbaddebtsreserve 3)Baddebtsreservethatissetaside,recoveredortransferredback 4)Otherreceivablesactuallywrittenoffinthereportingperiod 5)Topfivedebtorsinclosingbalanceofotheraccountsreceivable 6)Receivablesinvolvinggovernmentgrants:None 7)Otherreceivablesderecognizedduetothetransferoffinancialassets:None 8)Amountofassetsandliabilitiesthatareformedbythetransferandongoinginvolvementofotherreceivables:None 3.Long-termequityinvestment (1)Investmentinsubsidiaries (2)Investmentinassociatesandjointventures:None (3)Otherexplanation:None 4.Operatingincomeandoperatingcost 5.Incomeoninvestment 6.Others:None XVIII.SupplementaryInformation 1.Statementofnon-recurringprofitandlossofthecurrentperiod 2.Returnonnetassetsandearningspershare 3.Differencesbetweenaccountingdatadisclosedunderdomesticandoverseasaccountingstandards (1)DifferencesinnetprofitandnetassetsbetweenthefinancialstatementsdisclosedundertheIASandthePRCGAAPinthesameperiod. (2)DifferencesinnetprofitandnetassetsbetweenthefinancialstatementsdisclosedundertheoverseasaccountingstandardsandthePRCGAAPinthesameperiod. (3)Explanationofreasonsforthedifferencesbetweenaccountingdatadisclosedunderdomesticandoverseasaccountingstandards.Ifdifferencesinthedatauponauditofoverseasauditinstitutionsareadjusted,thenameoftheinstitutionshouldbe... 4.Others SectionXIICatalogofDocumentsforReference

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