粤华包Ｂ：2020年年度报告（英文版）.PDF

Foshan Huaxin Packaging Co., Ltd.Annual Report 20201ANNUALREPORT 20202021-027March 2021Foshan Huaxin Packaging Co., Ltd.Annual Report 20202Part I Important Notes, Table of Contents and DefinitionsThe Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of Foshan Huaxin Packaging Co., Ltd. (hereinafterreferred to as the “Company”) hereby guarantee that the contents of this Report and itssummary are true, accurate and complete and free of any misrepresentations, misleadingstatements or material omissions, and collectively and individually accept legal responsibilityfor such contents.Mr. Ren Xiaoping, the Companys legal representative, Mr. Ding Guoqiang, the CompanysChief Financial Officer, and Ms. Luo Jing, the Companys Financial Manager herebyguarantee that the financial statements carried in this Report are truthful, accurate andcomplete.All the Companys directors have attended the Board meeting for the review of this Reportand its summary.Any outlook for the Companys development in 2021 or other forward-looking statementsmentioned in this Report and its summary shall NOT be considered as promises to investors.Therefore, investors are reminded to exercise caution when making investment decisions.Risks facing the Company have been explained in detail in “Part IV Management DiscussionandAnalysis” herein.The Board has approved a final dividend plan as follows: based on the share capital of505,425,000 shares, a cash dividend of RMB0.34 (tax inclusive) per 10 shares is planned to bedistributed to the shareholders, with no bonus issue from either profit or capital reserves.This Report and its summary have been prepared in both Chinese and English. Should therebe any discrepancies or misunderstandings between the two versions, the Chinese versionsshall prevail.Foshan Huaxin Packaging Co., Ltd.Annual Report 20203Table of ContentsPart I Important Notes, Table of Contents and Definitions. 2Part II Corporate Information and Key Financial Information. 5Part III Business Summary.10Part IV Management Discussion andAnalysis.16Part V Significant Events.33Part VI Share Changes and Shareholder Information.61Part VII Preference Shares.69Part VIII Convertible Corporate Bonds.70Part IX Directors, Supervisors, Senior Management and Staff.71Part X Corporate Governance.80Part XI Corporate Bonds.88Part XII Financial Statements.89Part XIII Documents Available for Reference.236Foshan Huaxin Packaging Co., Ltd.Annual Report 20204DefinitionsTermDefinitionThe “Company”, “FSHXP” or “we”Foshan Huaxin Packaging Co., Ltd. and its consolidated subsidiaries, exceptwhere the context otherwise requiresChina ChengtongChina Chengtong Holdings Group Ltd. (the ultimate controller of the Company)China PaperChina Paper Corporation (the actual controller of the Company)Huaxin DevelopmentFoshan Huaxin Development Co., Ltd. (the controlling shareholder of theCompany)Hongta RenhengZhuhai Hongta Renheng Packaging Co., Ltd.Huaxin Color PrintingHuaxin (Foshan) Color Printing Co., Ltd.Zhuhai HuafengZhuhai Huafeng Paper Co., Ltd.Golden Pheasant ChemicalZhuhai Golden Pheasant Chemical Co., Ltd.Chengtong FinanceChina Chengtong Finance Corporation Ltd.Guanhao High-TechGuangdong Guanhao High-Tech Co., Ltd.Foshan Huaxin Packaging Co., Ltd.Annual Report 20205Part II Corporate Information and Key Financial InformationI Corporate InformationStock nameHuaxin Packaging-BStock code200986Stock exchangeShenzhen Stock ExchangeCompany name in Chinese佛山华新包装股份有限公司Abbr.华新包装Company name in English (ifany)Foshan Huaxin Packaging Co.,LtdAbbr. (if any)FSHXPLegal representativeRen XiaopingRegistered address2/F, Block 7, 3 Keyang Road, Luoge Park, Chancheng Economic Development Zone, NanzhuangTown, Chancheng District, Foshan, Guangdong Province, P.R.ChinaZip code528000Office address2/F, Block 7, 3 Keyang Road, Luoge Park, Chancheng Economic Development Zone, NanzhuangTown, Chancheng District, Foshan, Guangdong Province, P.R.ChinaZip code528000Company websitehttp:/Email II Contact InformationBoard SecretarySecurities RepresentativeNameDing GuoqiangShi HuiOffice address2/F, Block 7, 3 Keyang Road, Luoge Park,Chancheng Economic Development Zone,Nanzhuang Town, Chancheng District,Foshan, Guangdong Province, P.R.China2/F, Block 7, 3 Keyang Road, Luoge Park,Chancheng Economic Development Zone,Nanzhuang Town, Chancheng District,Foshan, Guangdong Province, P.R.ChinaTel.0756-86666290756-8666978Fax0756-86669220756-8666922Email addressdinggqhtrh-shihhtrh-III Media for Information Disclosure and Place where this Report Is LodgedNewspapersdesignatedbytheCompanyforSecurities Times, Ta Kung PaoFoshan Huaxin Packaging Co., Ltd.Annual Report 20206information disclosureWebsite designated by the CSRC for publication ofthis Reporthttp:/Place where this Report is lodged2/F, Block 7, 3 Keyang Road, Luoge Park, Chancheng EconomicDevelopmentZone,NanzhuangTown,ChanchengDistrict,Foshan,Guangdong Province, P.R.ChinaIV Change to Company Registered InformationUnified social credit codeUnchangedChange to the principal activity of theCompany since going public (if any)UnchangedEvery change of controlling shareholdersince incorporation (if any)UnchangedV Other InformationThe independent audit firm hired by the Company:NamePan-China Certified PublicAccountants LLPOffice addressTower B, Huarun Building, 1366 Qianjiang Road, Jianggan District, Hangzhou City, ZhejiangProvince, ChinaAccountants writing signaturesLi Qinglong and Liu JingyaThe independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:Applicable Not applicableThe independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:Applicable Not applicableVI Key Financial InformationIndicate by tick mark whether there is any retrospectively restated datum in the table below. Yes No202020192020-over-2019change (%)2018Operating revenue (RMB)4,064,071,623.723,930,629,985.813.39%3,683,004,543.50Net profit attributable to the listedcompanys shareholders (RMB)139,427,823.7035,704,671.22290.50%-2,814,965.92Net profit attributable to the listedcompanysshareholdersbeforeexceptionalgainsandlosses122,347,146.6025,885,573.07372.65%-36,089,244.17Foshan Huaxin Packaging Co., Ltd.Annual Report 20207(RMB)Net cash generated from/used inoperating activities (RMB)713,924,336.7391,344,251.74681.58%393,465,394.72Basicearningspershare(RMB/share)0.280.07300.00%-0.01Dilutedearningspershare(RMB/share)0.280.07300.00%-0.01Weighted average return on equity(%)6.73%1.80%Up by 4.93 percentage points-0.14%31 December 202031 December 2019Change of 31December 2020 over31 December 2019(%)31 December 2018Total assets (RMB)5,648,229,669.755,591,643,310.381.01%5,794,694,744.15Equity attributable to the listedcompanys shareholders (RMB)2,138,497,940.212,006,651,491.516.57%1,970,946,820.29Indicate by tick mark whether the lower of the net profit attributable to the listed companys shareholders before and after exceptionalgains and losses was negative for the last three accounting years, and the latest independent auditors report indicated that there wasuncertainty about the Companys ability to continue as a going concern. Yes NoIndicate by tick mark whether the lower of the net profit attributable to the listed companys shareholders before and after exceptionalgains and losses was negative. Yes NoVII Accounting Data Differences under Chinas Accounting Standards for BusinessEnterprises (CAS) and International Financial Reporting Standards (IFRS) and ForeignAccounting Standards1. Net Profit and Equity under CAS and IFRSApplicable Not applicableNo difference for the Reporting Period.2. Net Profit and Equity under CAS and Foreign Accounting StandardsApplicable Not applicableNo difference for the Reporting Period.Foshan Huaxin Packaging Co., Ltd.Annual Report 20208VIII Key Financial Information by QuarterUnit: RMBQ1Q2Q3Q4Operating revenue822,098,273.221,027,484,101.481,058,146,561.681,156,342,687.34Net profit attributable to the listedcompanys shareholders20,649,171.6126,920,655.8839,880,379.8651,977,616.35Net profit attributable to the listedcompanysshareholdersbeforeexceptional gains and losses19,396,299.9022,877,752.1935,323,204.1344,749,890.38Net cash generated from/used inoperating activities418,064,605.24129,167,404.31-192,911,242.60359,603,569.78Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from whathave been disclosed in the Companys quarterly or interim reports. Yes NoIX Exceptional Gains and LossesApplicable Not applicableUnit: RMBItem202020192018NoteGain or loss on disposal of non-currentassets (inclusive of impairment allowancewrite-offs)-1,632,261.47-88,727.4742,435.21Government grants through profit or loss(exclusive of government grants given in theCompanys ordinary course of business atfixedquotasoramountsasperthegovernments uniform standards)27,242,697.1414,875,074.0917,519,293.30Capital occupation charges on non-financialenterprises that are through profit or loss153,364.13197,199.36Gainequaltotheamountbywhichinvestment costs for the Company to acquiresubsidiaries, associates and joint venturesare lower than the Companys enjoyable fairvalue of identifiable net assets of investeeswhen making investments21,561,238.54Gain or loss on fair-value changes onheld-for-tradingandderivativefinancialassets and liabilities & income from disposal12,578,644.03Foshan Huaxin Packaging Co., Ltd.Annual Report 20209of held-for-trading and derivative financialassetsandliabilitiesandotherdebtinvestments(exclusiveoftheeffectiveportionofhedgesthatariseintheCompanys ordinary course of business)Reversed portions of impairment allowancesfor receivables and contract assets which aretested individually for impairment283,005.502,514,391.37Non-operating income and expense otherthan the above13,372,786.464,128,431.82-2,043,196.49Less: Income tax effects3,740,814.321,041,662.60761,426.39Non-controlling interests effects (net of tax)18,598,100.3410,765,608.4215,622,709.95Total17,080,677.109,819,098.1533,274,278.25-Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the PublicExceptional Gain/LossItems:Applicable Not applicableNo such cases for the Reporting Period.Foshan Huaxin Packaging Co., Ltd.Annual Report 202010Part III Business SummaryI Principal Activity of the Company in the Reporting PeriodThe Company specializes in the R&D, production and sales of high-end coated ivory board, chemicals for papermaking and color printing products. The businesses are described as follows:(I) High-end coated ivory boardHigh-end coated ivory board is the primary product of the Company. As a category of white paperboard, it isapplied in various fields such as cigarette packaging, liquid and food packaging, medicine packaging, cosmeticpackaging and living supplies packaging, which represent the core business of the Company. The R&D,production and sales of the ivory board is mainly undertaken by Zhuhai Hongta Renheng Packaging Co., Ltd. andZhuhai Huafeng Paper Co., Ltd. Based in domestic and overseas high-end packaging markets of cigarette andfood, this business provides personalized products and services for customers with differentiation businessstrategy. The Company now has three coated ivory board production lines, and the annual production capacityaround 600,000 tons. The Companys products can be divided into the following categories:1. Coated ivory board for cigarette packaging, the primary product of the Company, is used in the high-endcigarette packaging market. The coated ivory board for cigarette packaging produced by Hongta Renheng takes upa dominant position in the domestic cigarette packaging field. It represents the highest level of coated ivory boardquality in China. It has won a Golden Award at Chinas International Paper & Paper Product Brands Exhibition,and the top award of the Chinese science and technology communitythe first-class State Science andTechnology Advancement Award. The anti-counterfeit coated ivory board with color fiber and true-color fiberetc.a technology that is independently developed by the Company and has been granted the national inventionpatent of Chinahas been successfully applied in the packaging of a series of cigarettes in the “Hongta Group”and “HongyunHonghe Group brands to combat counterfeiting from the packaging materials, reaching thesignificant anti-counterfeit results of “easily identifiable but difficult to copy”. The “tobacco fiber ivory board”, anew product of the Company that pursues the recycling philosophy of “Coming from Tobacco, Used for Tobacco”,is being tested on the market. And the “black cardboard for cigarette packaging” newly launched to the market iswell-received among customers with stable hue in printing and wide application.2. In terms of ivory board for liquid and food packaging, a priority for the Companys future development withgrowing market demand, the Company is the first to break the foreign technological monopoly with its ivoryboard for liquid packaging. The Companys homegrown sterile paperboard for packaging of liquid milk, fruitjuice, herbal tea and other drinks has effectively substituted imported products. The ivory board series for foodpackaging such as anti-oil food grade coated board and high-end paper cup have been recognized by well-knowncatering groups after they are put into the market. Upholding the philosophy of green and sustainable developmentand following the national policy of “plastic reduction” and “plastic ban”, the Company has successfullyFoshan Huaxin Packaging Co., Ltd.Annual Report 202011developed the “plastic-free coated board for food packaging” and the “degradable PBS-coated paper”, which is aneffective alternative to PE-coated paper and can help reduce the use of non-degradable plastic.3. The high-end commercial ivory board is applied in the segmented packaging market fields like the high-endmedicine, cosmetics, and daily necessities. The anti-counterfeit coated ivory paper with personalizedidentification code independently developed by the Company and for which it has been granted the inventionpatent has been successfully applied in the anti-counterfeit packaging of the high-end products like high-endmedicine and cosmetics. Featuring an anti-counterfeit function and customization for high-end brands, thisproduct not only effective reduces anti-counterfeit costs for customers, but also boosts their brand recognition,winning high trust from the market. Meanwhile, new products such as “high-whiteness sun-proof paper” and“paper for cluster packaging” deliver a remarkable performance in required circumstances and are well-receivedamong users.(II) Chemicals for paper makingChemicals for paper making represent an upstream exte