1、 Section I Important Notice,Contents and Definitions The Board of Directors and the Board of Supervisors of the Company and its directors,supervisors and senior management warrant that the information contained in this semi-annual report is true,accurate and complete without any false and misleading

2、 statements or material omissions,and severally and jointly accept legal liability thereof.Liu Peng,the person in charge of the Company,Dong Ye,the person in charge of accounting of the Company,and Xu Xianjing,the person in charge of the accounting department of the Company,have declared that they w

3、arrant the truthfulness,accuracy and completeness of the financial statements set out in this semi-annual report.All directors of the Company attended the Board meeting on which this report was reviewed.Discrepancies in the sum of decimals in this report are caused by rounding.The forward-looking st

4、atements in this report,including future plans and development strategies,do not constitute substantive commitments of the Company to investors.Investors should be aware of the investment risks.The Company has described potential risk factors and countermeasures that may exist in its operations in d

5、etail in Section III Discussion and Analysis of the Management and Section X Risks Faced by the Company and Countermeasures.Investors are advised to pay attention to the relevant contents.The Company plans not to distribute cash dividend,issue bonus share,or transfer capital reserve into share capit

6、al.Contents Section I Important Notice,Contents and Definitions.2 Section II Company Profile and Key Financial Indicators.6 Section III Discussion and Analysis of the Management.9 Section IV Corporate Governance.28 Section V Environmental and Social Responsibilities.31 Section VI Significant Events.

7、37 Section VII Changes in Shareholding and Information of Shareholders.55 Section VIII Particulars of Preference Shares.64 Section IX Corporate Bonds.65 Section X Financial Report.66 Documents Available for Inspection 1.The Semi-annual Report 2022 affixed with the signature of Mr.Liu Peng,the Compan

8、ys legal representative 2.Financial statements affixed with the signatures and stamps of Mr.Liu Peng,the legal representative of the Company,Mr.Dong Ye,person in charge of accounting,and Ms.Xu Xianjing,person in charge of accounting department of the Company 3.All original copies of the Companys doc

9、uments and the original drafts of the Companys announcements as disclosed in the newspaper designated by the CSRC during the reporting period 4.Place for document inspection:Office of the Board of Directors Terms and Definitions Term Definition The Company,Company,C&S C&S Paper Co.,Ltd.Zhongshun Gro

10、up Guangdong Zhongshun Paper Group Co.,Ltd.Chung Shun Co.Chung Shun Co.,a Hong Kong-based company Zhongshan Trading Zhongshan Zhongshun Trading Co.,Ltd.Zhong Shun International Zhong Shun International Co.,Ltd.,a Hong Kong-based company C&S Hong Kong C&S Hong Kong Co.,Ltd.,a Hong Kong-based company

11、Beijing Trading Beijing C&S Paper Co.,Ltd.Xiaogan Trading Xiaogan C&S Trading Co.,Ltd.Chengdu Trading Chengdu Zhongshun Paper Co.,Ltd.Hangzhou Trading Hangzhou Jie Rou Trading Co.,Ltd.Shanghai Trading Shanghai Huicong Paper Co.,Ltd.Sichuan C&S C&S(Sichuan)Paper Co.,Ltd.,formerly known as Chengdu Tia

12、ntian Paper Co.,Ltd.Jiangmen C&S Jiangmen Zhongshun Paper Co.,Ltd.Zhejiang C&S Zhejiang Zhongshun Paper Co.,Ltd.Hubei C&S C&S(Hubei)Paper Co.,Ltd.,formerly known as Hubei Zhongshun Hongchang Paper Co.,Ltd.Yunfu C&S C&S(Yunfu)Paper Co.,Ltd.Yunfu Trading Yunfu Hengtai Trading Co.,Ltd.,formerly known a

13、s C&S(Yunfu)Trading Co.,Ltd.Tangshan C&S,Tangshan subsidiary C&S Paper Co.,Ltd.Tangshan Branch Zhongshan Paper C&S(Zhongshan)Paper Co.,Ltd.,formerly known as Zhongshan Tongfu Trade Co.,Ltd.Macao C&S C&S(Macao)Co.,Ltd.Dazhou C&S C&S(Dazhou)Paper Co.,Ltd.Sun C&S Sun Daily Necessities Co.,Ltd.Jiangsu C

14、&S C&S(Jiangsu)Paper Co.,Ltd.Dolemi Dolemi Sanitary Products Co.,Ltd.Luzhou Dolemi Luzhou Dolemi Sanitary Products Co.,Ltd.Mianyang Dolemi Mianyang Dolemi Sanitary Products Co.,Ltd.Dazhou Dolemi Dazhou Dolemi Sanitary Products Co.,Ltd.Guiyang Dolemi Guiyang Dolemi Sanitary Products Co.,Ltd.Zhengzhou

15、 Dolemi Zhengzhou Dolemi Sanitary Products Co.,Ltd.Xian Dolemi Xian Dolemi Sanitary Products Co.,Ltd.Zhanjiang Dolemi Zhanjiang Dolemi Sanitary Products Co.,Ltd.Bloomage Jierou Beijing Bloomage Jierou Biotechnology Co.,Ltd.Zhongshun Health Zhongshun Health Life Technology(Shenzhen)Co.,Ltd.Mazars Maz

16、ars Certified Public Accountants(LLP)C&S Paper Co.,Ltd.Semi-annual Report 2022 6 Section II Company Profile and Key Financial Indicators I.Company Profile Stock name C&S Stock code 002511 Stock exchange on which the shares are listed Shenzhen Stock Exchange Chinese name of the Company 中顺洁柔纸业股份有限公司 A

17、bbreviation of Chinese name of the Company(if any)中顺洁柔 English name of the Company(if any)C&S Paper Co.,Ltd.Abbreviation of English name of the company(if any)C&S Legal representative of the Company Liu Peng II.Contact Persons and Contact Methods Sectary to the Board Representative of securities aff

18、airs Name Zhang Haijun Zhang Xia Address No.136 Caihong Avenue,West District,Zhongshan City No.136 Caihong Avenue,West District,Zhongshan City Tel Fax Email Z III.Other Information 1.Contact information of the Company Whether there are changes

19、in the Companys registered address,office address and postal code,website,and email address during the reporting period Applicable Not applicable The registered and office addresses and their post codes,official website,and email of the Company were not changed during the reporting period.See the 20

20、21 Annual Report for details.2.Information disclosure and location for inspection of documents Where there are changes in information disclosure and location for inspection of documents during the reporting period Applicable Not applicable There are no changes in the name of the newspaper selected b

21、y the Company for information disclosure,website designated by CSRC for publicizing the semi-annual report,and the location for inspection of the semi-C&S Paper Co.,Ltd.Semi-annual Report 2022 7 annual report during the reporting period.Please refer to the Annual Report 2021 for details.3.Other Rele

22、vant Information Where there are changes in other relevant information Applicable Not applicable IV.Main Accounting Data and Financial Indicators Whether the Company needs to perform retrospective adjustment or restatement of accounting data for previous years Yes No Current period Same period of pr

23、evious year Changes over same period of previous year Operating income(RMB)4,367,618,113.61 4,247,641,836.38 2.82%Net profit attributable to shareholders of the listed company(RMB)227,639,705.35 407,161,317.15-44.09%Net profit attributable to shareholders of the listed company after deducting non-re

24、curring profit and loss(RMB)220,565,031.66 398,988,234.69-44.72%Net cash flow from operating activities (RMB)699,549,725.75 737,865,788.19-5.19%Basic earnings per share(RMB/share)0.17 0.31-45.16%Diluted earnings per share(RMB/share)0.17 0.31-45.16%Weighted average return on net assets 4.53%7.98%-3.4

25、5%End of current period End of previous year Changes over end of previous year Total assets(RMB)7,853,365,188.84 7,523,281,973.84 4.39%Net assets attributable to shareholders of the listed company(RMB)5,036,519,666.94 4,903,552,661.58 2.71%V.Difference in Accounting Data under Domestic and Internati

26、onal Accounting Standards 1.Net profit and net asset differences under International Financial Reporting Standards(IFRS)and Chinese Accounting Standards(CAS)Applicable Not applicable No such differences for the reporting period 2.Net profit and net asset differences under foreign accounting standard

27、s and Chinese Accounting Standards(CAS)Applicable Not applicable No such differences for the reporting period C&S Paper Co.,Ltd.Semi-annual Report 2022 8 VI.Non-recurring Items and Amounts Applicable Not applicable Unit:RMB Item Amount Description Profits/losses from the disposal of non-current asse

28、t(including the write-off that accrued for impairment of assets)-2,323,301.55 Governmental grants reckoned into current profits/losses(not including grants enjoyed in quota or ration according to national standards,which are closely relevant to the companys normal business)12,351,174.47 Profits/loss

29、es from assets entrusted to others for investment or management 183,493.42 Returns on principal-protected wealth management products at maturity Other non-operating income and expenses except for the aforementioned items-1,367,709.56 Less:Influence of income tax 1,768,983.09 Total 7,074,673.69 Detai

30、ls of other profit and loss items that meet the definition of non-recurring profit and loss:Applicable Not applicable The Company has no other profit and loss items that meet the definition of non-recurring profit and loss.Descriptions where the Company defines any non-recurring profit and loss item

31、s listed in the No.1 Explanatory Announcement on Information Disclosure of Companies Offering Securities to the PublicNon-recurring Profit and Loss as recurring profit and loss items during the reporting period Applicable Not applicable The Company did not define any non-recurring profit and loss it

32、ems listed in the No.1 Explanatory Announcement on Information Disclosure of Companies Offering Securities to the PublicNon-recurring Profit and Loss as recurring profit and loss items during the reporting period.C&S Paper Co.,Ltd.Semi-annual Report 2022 9 Section III Discussion and Analysis of the

33、Management I.Principal Businesses of the Company during the Reporting Period Main Products Mr.Deng Yingzhong,founder of the Company,initiated his entrepreneurial process in 1979.Starting from intensive paper processing,the Company has developed into a diversified group company integrating R&D,produc

34、tion and sales after forty plus years of striving.It is among the first batch of household paper companies listed on China A-shares.The Company,with an adherence to the business philosophy of“building product,enterprise and professional brands”,practices the“All We Care Is You”value proposition and

35、continues to provide consumers with healthy,safe,environmental-friendly,comfortable and convenient products and services.Currently the Company features three major brands,namely C&S,Sun and Dolemi.Main products include toilet paper,facial tissues,paper handkerchiefs,napkins,wet wipes,kitchen tissues

36、,personal care products(sanitary pads),baby diapers,facial towels,etc.Specifics are given in the following:(I)Household paper Face series:Face series are soft,delicate and pliable.Being wettable,the products can be used as face towels.Among them,the oil painting series combine quality and artistry a

37、nd are therefore praised as“artwork of paper tissues”.Lotion series:Specially developed for female and infant consumers,the products contain moisturizing cream.With selected high-quality 100%virgin wood pulp and quality moisturizing cream,the paper is soft,delicate and smooth.It is the professional

38、moisturizing facial tissue brand trusted by consumers.Natural Wood series:Made of 100%imported virgin wood pulp,the products are soft and pliable and meet the EU and U.S.requirements for food contact material testing.Consumers can feel rest assured for its high quality.C&S Jin Zun series:The product

39、s are made from 100%imported raw wood pulp and the paper is thick,pliable,and reliable.Sun series:The products use 100%virgin wood pulp.Targeting at the youth market,the brand serves as a powerful supplement to the Companys primary brand“C&S”.Wipe series:The Company offers a variety of wet wipe prod

40、ucts catering to different user groups(including but not limited to adults,children and infants)and different purposes(including but not limited to c leasing wipes,wet toilet paper and wet wipes for equipment use).From basic skin cleansing to advanced care,the series can meet C&S Paper Co.,Ltd.Semi-

41、annual Report 2022 10 increasingly segmented demands and provide a better experience to consumers.Kitchen towel series:Using 100%virgin wood pulp,the kitchen paper towels boast stronger oil-absorption and water-absorption power and are up to the EU and U.S.Requirements for food contact material test

42、ing,thereby better satisfying the multi-functional wiping needs of households.Meanwhile,the kitchen wet wipes boast expedite decontamination power without hurting hands.(II)Personal care products The Company streamlined the personal care product business and anchored a new track for business develop

43、ment.It is committed to offering healthy life solutions with products+services for the whole family and all life scenarios.Revolving around the“Healthy Life”brand matrix,the Company hopes to re-create brand values.In addition,the Company has built self-operated online sales channels for care product

44、s based on e-commerce platforms to achieve omni retail.(III)Quality health products Cleansing towel series:To address user pain points,the products make constant innovations in technology,materials and craftsmanship and select 100%plant cellulose fibers.The thicker 100g Cleaning Towel series have be

45、en introduced,which are committed to offering the optimal experience to consumers.Business travel series:With the change of lifestyle,the Company understands that people are increasingly concerned about the hygiene problem during business travels.In view of this,it has developed the business travel

46、series such as disposable compressed towels,rinse-free antibacterial hand sanitizers,alcohol sanitary pads,etc.These products are easy to carry,clean and hygienic and can guard the health of consumers anytime,anywhere.Among them,disposable compressed towels,disposable bath towels,etc.are made of pla

47、nt fibers that are natural,environmental friendly and degradable.They really make travel easy.Household series:The kitchen towels adopt advanced ultrasonic non-adhesive composite technology and double-sided texture design,with stronger water and oil absorption.With an ultra-high volume of 140 g/m2,t

48、he products are strong,tough,scrub-resistant,and not easy to flocculate and deform.In addition,the products are up to EU and U.S.requirements for food contact material testing.Mask series:Since the outbreak of the pandemic in 2020,in response to the call of the government,the Company started to prod

49、uce masks to meet the demands for anti-pandemic materials.Its medical surgical masks feature“efficient filtration,low breathing resistance and comfortable wearing”.In the future,C&S will continue to escort the breathing health of consumers.(IV)Commercial channel products C&S Paper Co.,Ltd.Semi-annua

50、l Report 2022 11 In addition to home use,the commercial channel products target at wider use scenarios such as office buildings,government departments,enterprises and institutions,factories,airports,hotels,restaurants,entertainment venues,department stores,etc.We offer a full range of cleansing and

51、sanitation solutions and may customize products and services according to customer needs.Development Trends of the Industry Under the influence of the pandemic,the economy at large encountered great downward pressure.Meanwhile,the household paper industry faced a certain degree of operating pressure

52、 due to multiple factors such as rising raw material prices,fierce market competition,and unsmooth global supply chain.The excess capacity formed by the rapid growth in recent years and the large production capacity base of the entire industry have slowed down its pace of growth.Despite so,the growt

53、h rate in China will still surpass the global average.The competition in Chinas household paper industry is still fierce and industry concentration will be further strengthened.With enhanced awareness on the concept of healthy living,consumers pay increasing attention to brands.Product quality is st

54、ill a prominent concern in the industry.Market Position The Company has become one of the representative brands of high-end household paper in the market through continuous brand building and quality assurance as well as robust production capacity layout and channel expansion.It is ranked among the

55、first echelon in the household paper industry and is well recognized by consumers and the market.In addition,with an adherence to the value concept of“All We Care Is You”,the Company continues to tap consumer needs and constantly upgrades and optimizes products with leverage on its strong R&D and in

56、novation capabilities.The Company is committed to providing consumers with products of better quality,more comfort,and more tailored to their individual needs.The Company aims to achieve national product coverage which is underpinned by continuously improving product reputation among consumes and co

57、nsolidating brand awareness.Key Performance Drivers The situation of pandemic prevention and control was still challenging while the international political and economic environment remained complex during the first half of 2022.Under the influence of factors such as continual rise in raw material p

58、rices,increasingly intensified market competition,economic downturn and weak C&S Paper Co.,Ltd.Semi-annual Report 2022 12 consumption,the household paper industry faced certain pressure and challenges in the short run.The management of the Company actively responded to such a severe situation throug

59、h a series of actions like continued optimization of category structure,product innovation and upgrading,intensive cultivation of lower-tier markets,and improvement of operational efficiency and management level.During the reporting period,the Company recorded total revenue of RMB4.3676181 billion,u

60、p by 2.82%over the same period of previous year;the net profit attributable to shareholders of the listed company was RMB227.6397 million,a decrease of 44.09%over the same period of previous year.Changes in performance are mainly owing to the following factors:1.Logistics and transportation in some

61、areas of China were not smooth due to pandemic control,which affected the Companys sales to a certain extent.In view of this,the Company quickly made a summary and adjusted the channel sales strategy.The EC channel performed well during the“618”Shopping Festival.The Company posted an operating incom

62、e of RMB2.4832788 billion in the second quarter,up by 15.74%over the same period of last year.2.Rising raw material prices have led to an increase in production costs.The Company has implemented a price adjustment policy since the first quarter of 2022,but it did not fully offset the increase in raw

63、 material costs.Combined with the weak consumer market and fierce market competition,the gross profit margin showcased a slight year-on-year decrease.During the reporting period,the Company has been actively constructing digital transformation infrastructure,optimizing internal processes,and improvi

64、ng the level of refined management.Efforts have been made to further increase the sales of high-end and high-margin products through continual optimization of product structure and expansion of product categories.The multi-dimensional,high-quality systematic linkage has helped to improve the overall

65、 operational and synergistic efficiency,reduce costs and increase efficiency,thereby laying a solid foundation for the long-term and healthy development of the Company.II.Analysis of Core Competitiveness 1.Belonging to the first echelon of the domestic household paper industry The Company is a top-p

66、erforming enterprise in the first echelon of the domestic household paper industry with products available at all channels and both at home and abroad.In addition,it actively taps overseas markets including Southeast Asia,North Asia,Australia,the Middle East,and North America.2.Constantly optimized

67、product structure and continuously improved product competitiveness C&S Paper Co.,Ltd.Semi-annual Report 2022 13 The Company boasts three major brands,namely C&S,Sun and Dolemi.Main products include paper rolls,coreless rolls,facial tissues,tissue handkerchiefs,wipes(including wet toilet paper),pers

68、onal care products,baby diapers,face towels,kitchen towels,etc.The Company continues to optimize product structure and increase the sales proportion of high-end,high-margin products and non-roll categories.Efforts have been stepped up for the terminal sales of the Oil Painting,Face,Lotion and other

69、high-end,high-margin series.Precise brand marketing strategy combined with multi-channel sales layout will help improve the distribution and penetration of high-end,high-margin products,drive the growth of their shares,and hence steadily improve the profit margin and profitability of products.In the

70、 context of COVID-19,consumers become increasingly concerned of health protection,which has driven their differentiated demands for high-end tissue paper.In view of this,C&S has grasped the changing trend of the market and precisely developed alcohol wet wipes,sanitary wipes,facial cleansing towel,c

71、ompressed towel,disposable bath towel,mouthwash,mask and other non-traditional dry wipe products.In addition,high-end,high-margin non-traditional dry wipes have been positioned as a strategic category that will be prioritized in the future.3.Professional and effective management team The R&D,product

72、ion,procurement,quality control,marketing and sales teams have successively introduced excellent professionals since 2014.At present,the Company boasts the most outstanding R&D,production,branding and marketing teams in the industry.As such,its new product R&D,product quality,branding,sales and mark

73、eting have been effectively solidified.Most of the mid-level managers of the marketing team are core,backbone employees who have served in the Company for more than five years,with high sense of loyalty and strong professional competence.They can lead sales teams to work hard according to the strate

74、gic goals of the Company and promote the healthy and stable development of various business indicators.The management team of the Company has formulated long-term and strategic plans in line with actual situation of the Company,industry development level,and market demands.Moreover,the management te

75、am is capable of making reasonable decisions on operation management issues with relation to R&D,production,marketing,investment and financing,and effectively implementing such decisions.The excellent management team fundamentally guarantees the Companys competitiveness and sustainable development i

76、n the future.4.Nationwide marketing network The Company has been building and improving its marketing networks with reasonable layout based on its keen and strategic insights.It has guaranteed its profitability by expanding its channels from a single dealer channel in 2015 to five channels at presen

77、t,i.e.GT(General Trade),KA(Key Account),AFH(Away From Home),EC(E-C&S Paper Co.,Ltd.Semi-annual Report 2022 14 Commerce),and RC(Retail Consumer).Its current marketing network covers most of the prefecture-level(and county-level)cities.Products are directly sold to counties and then distributed to tow

78、ns.This helps achieve segmented and flat market operation and expand the dealer network.Additionally,while ensuring the smooth operation of other channels,the Company has established a professional e-commerce operation team,devoted more resources to e-commerce platforms,built and strengthened the co

79、rresponding supply chain system,and intensified its routine operation management.At present,it has cemented long-term strategic cooperation with mainstream well-known platforms.The Company has strengthened the layout of emerging business models such as new retail,O2O and content marketing,while effo

80、rts have been stepped up for livestream shopping and community group buying.In addition,it has developed an AFH service team for AFH channels and customer bases to match the growing AFH market.In response to the market changes of modern KA channels,the Company actively adjusts strategies and strives

81、 to improve efficiency and effectiveness of resource inputs.Attributable to a robust sales network plus quality and diversified products,the Company is able to constantly consolidate its market basis,improve consumer experience,and enhance brand reputation,which can help achieve sustainable and stab

82、le growth in the future.5.Nationwide layout of production bases The Company has developed a production layout covering East China,South China,West China,North China,and Central China,through its subsidiaries including Jiangmen C&S,Yunfu C&S,Sichuan C&S,Zhejiang C&S,Hubei C&S,and Tangshan Subsidiary.

83、Thanks to the nationwide layout of production bases,the Company has narrowed the distance to customers,reduced transportation costs,and enhanced transportation efficiency.6.Product quality at an international level The Company has always regarded product quality as its lifeline of survival and devel

84、opment ever since its incorporation.First-class quality derives from first-class raw materials.Raw materials of the Company have passed the ISO quality management system certification.Besides strict feed inspection procedures,it has introduced HACCP food hygiene and safety management system to contr

85、ol the hygiene and quality of products from the source.Moreover,its products have passed ISO9001 quality management system certification which is the strictest detecting system for product quality.The Company has observed internationally-advanced quality management system standards and utilized adva

86、nced processes,formulas,and control procedures in production to ensure each technical performance indicator.7.Good R&D capabilities C&S Paper Co.,Ltd.Semi-annual Report 2022 15 The Company is equipped with a complete product development system and the R&D department boasts strong independent R&D cap

87、abilities and excellent product formula technologies.In recent years,the Company has continuously upgraded and optimized its products,in a bid to provide consumers with products that are of better quality,more comfortable and more aligned with their individual needs.Products of the Company have exte

88、nded from household paper to cross-category household daily necessities including cleansing towel series,sanitary wipes,baby diapers,etc.The Companys speed of bringing forth new products is at the forefront of the industry.8.Advanced production equipment The Company drives development with technolog

89、ical progress and has introduced advanced papermaking equipment and processing equipment from Austria,Germany,Italy,Japan and other countries.The diversified equipment can produce a variety of products that can meet the differentiated needs of consumers.As a first-tier enterprise,the Company occupie

90、s a leading position in the industry when it comes to the scale and automation of production equipment.Advanced technology and highly automated equipment have strengthened the Companys efficiency,further satisfied ever-growing market demands,and served as an unstoppable driving force to development.

91、9.Outstanding environmental protection awareness and technology Along with the deepening of industrialization,the concept of environmental protection has been deeply rooted among the people.The Company has adhered to the concept of seeking green benefits and fulfilling corporate social responsibilit

92、ies,and utilized advanced environmental protection technologies to pursue its objective of environmental protection.Its waste water and gas emissions are superior to the national standards.The Company actively fulfills its corporate social responsibilities and actively responds to Chinas strategic g

93、oals of“carbon peaking”in 2030 and“carbon neutrality”in 2060 by fully supporting and enforcing various environmental protection requirements of the government.In the future,the advantages and anti-risk capabilities of C&S in energy conservation and emission reduction will be further highlighted.III.

94、Analysis of Principal Businesses Overview Please refer to relevant contents in“I.Principal Businesses of the Company during the Reporting Period”.YoY changes in major financial data Unit:RMB Current period Same period of previous year YoY changes Reason of change Operating income 4,367,618,113.61 4,

95、247,641,836.38 2.82%C&S Paper Co.,Ltd.Semi-annual Report 2022 16 Operating cost 2,929,313,606.05 2,562,244,166.21 14.33%Selling expenses 874,040,563.35 915,478,651.72-4.53%Administrative expenses 180,176,434.40 165,200,078.38 9.07%Finance expenses-1,467,050.22-1,803,144.04 18.64%Income tax expenses

96、33,733,447.46 81,099,520.72-58.40%Income tax expenses:This item recorded a decrease of RMB 47,366,073.26 or 58.40%in the reporting period compared with the same period of 2021,mainly due to the decrease in total profit in this reporting period.R&D investment 105,182,287.61 97,414,812.32 7.97%Net cas

97、h flow from operating activities 699,549,725.75 737,865,788.19-5.19%Net cash flow from investing activities-247,770,733.81-267,293,095.91 7.30%Net cash flow from financing activities 53,218,634.40-815,627,674.59 106.52%Net cash flow from financing activities:This item recorded an increase of RMB 868

98、,846,308.99 or 106.52%in the reporting period compared with the same period of 2021,mainly due to the increase in the payment of repurchased shares during the reporting period.Net increase in cash and cash equivalents 517,377,489.31-348,809,933.39 248.33%Whether there are significant changes in the

99、profit composition or source of profits of the Company during the reporting period Applicable Not applicable There were no significant changes in the profit composition or source of profits of the Company during the reporting period.Composition of operating income Unit:RMB Current period Same period

100、 of previous year YoY changes Amount Proportion in operating income Amount Proportion in operating income Total operating income 4,367,618,113.61 100%4,247,641,836.38 100%2.82%By industry Household paper 4,265,944,826.39 97.67%4,082,881,792.19 96.12%4.48%Personal care 27,927,417.65 0.64%40,295,818.3

101、0 0.95%-30.69%Others 73,745,869.57 1.69%124,464,225.89 2.93%-40.75%By product Finished products 4,268,648,501.31 97.73%4,116,080,985.46 96.90%3.71%Semi-finished products 25,223,742.73 0.58%7,096,625.03 0.17%255.43%Others 73,745,869.57 1.69%124,464,225.89 2.93%-40.75%By region Domestic 4,269,777,280.

102、85 97.76%4,149,892,689.00 97.70%2.89%Overseas 97,840,832.76 2.24%97,749,147.38 2.30%0.09%C&S Paper Co.,Ltd.Semi-annual Report 2022 17 Industries,products,or regions that accounted for over 10%of the Companys operating income or operating profit Applicable Not applicable Unit:RMB Operating income Ope

103、rating cost Gross profit margin YoY changes of operating income YoY changes of operating cost YoY changes of operating gross profit margin By industry Household paper 4,265,944,826.39 2,847,927,585.27 33.24%4.48%16.77%-7.02%By product Finished products 4,268,648,501.31 2,840,891,217.48 33.45%3.71%15

104、.63%-6.86%By industry Household paper 4,269,777,280.85 2,865,342,359.21 32.89%2.89%14.37%-6.74%Where the statistical standards for the Companys principal business data were adjusted in the reporting period,whether principal business data of the Company in the recent period were adjusted as per stati

105、stical standards at the end of the reporting period Applicable Not applicable Reasons for YoY changes of relevant data over 30%Applicable Not applicable IV.Analysis of Non-principal Businesses Applicable Not applicable Unit:RMB Amount Proportion in total profit Explanation of reason Is it consistent

106、ly applied?Investment income 183,493.42 0.07%Returns on principal-protected wealth management products at maturity No Profit and loss from changes in fair value-2,538.48-0.00%Profit or loss from changes in stocks No Asset impairment-1,026,689.87-0.39%Provision for impairment of inventories No Non-op

107、erating income 1,914,737.14 0.73%Income from fine and compensation,others and Government grants No Non-operating expense 5,989,215.49 2.29%External donations and others No V.Analysis of Assets and Liabilities 1.Significant changes in the composition of assets Unit:RMB End of current period End of pr

108、evious year Proportion changes Explanation of significant changes Amount Proportion Amount Proportion C&S Paper Co.,Ltd.Semi-annual Report 2022 18 in total assets in total assets Amount Proportion in total assets Monetary funds 1,450,789,796.40 18.47%875,052,493.12 11.63%6.84%Monetary funds:This ite

109、m recorded an increase of RMB 575,737,303.28 or 65.79%in the reporting period compared with the end of 2021,mainly owing to the increase in net cash flow from operating activities during the reporting period.Accounts receivable 1,117,200,068.59 14.23%1,177,831,399.28 15.66%-1.43%Inventory 1,193,701,

110、905.65 15.20%1,467,631,516.95 19.51%-4.31%Investment property 32,420,039.64 0.41%33,138,481.74 0.44%-0.03%Fixed assets 3,120,455,256.80 39.73%3,129,371,506.40 41.60%-1.87%Construction work in progress 82,465,014.18 1.05%134,875,696.94 1.79%-0.74%Construction work in progress:This item recorded a dec

111、rease of RMB 52,410,682.76 or 38.86%in the reporting period compared with the end of 2021,mainly owing to the fact that certain construction work in progress reached the usable state and were thereby transferred to fixed assets during the reporting period.Right-of-use assets 12,668,746.74 0.16%14,30

112、0,520.77 0.19%-0.03%Short-term borrowing 242,000,000.00 3.08%3.08%Short-term borrowing:This item recorded an increase of RMB 242,000,000 or 100.00%in the reporting period compared with the end of 2021,mainly owing to the increase in advance discount of bank acceptance bills during the reporting peri

113、od.Contract liabilities 53,611,707.18 0.68%164,360,443.34 2.18%-1.50%Contract liabilities:This item recorded a decrease of RMB 110,748,736.16 or 67.38%in the reporting period compared with the end of 2021,mainly C&S Paper Co.,Ltd.Semi-annual Report 2022 19 owing to the decrease in advances received

114、from customers during the reporting period.Lease liabilities 5,368,471.00 0.07%5,565,928.14 0.07%0.00%2.Main overseas assets Applicable Not applicable 3.Assets and liabilities measured at fair value Applicable Not applicable 4.Restriction of asset rights as at the end of the reporting period Item Bo

115、ok value at the end of the period(RMB)Reason for restriction Monetary funds 135,614,631.39 Security deposits for issuing letter of credit and notes Total 135,614,631.39 VI.Analysis of Investment 1.Overview Applicable Not applicable Investment amount during the reporting period(RMB)Investment amount

116、of previous year(RMB)Changes 298,095,067.10 328,193,755.53-9.17%2.Major equity investment during the reporting period Applicable Not applicable 3.Major non-equity investment during the reporting period Applicable Not applicable 4.Financial asset investment(1)Security investment Applicable Not applic

117、able The Company did not invest in securities during the reporting period.C&S Paper Co.,Ltd.Semi-annual Report 2022 20 (2)Derivative investment Applicable Not applicable The Company did not invest in derivatives during the reporting period.5.Use of raised funds Applicable Not applicable No raised fu

118、nds were used by the Company during the reporting period.VII.Major Asset and Equity Sales 1.Sales of major assets Applicable Not applicable The Company did not sell major assets during the reporting period.2.Sales of major equity Applicable Not applicable C&S Paper Co.,Ltd.Semi-annual Report 2022 21

119、 VIII.Analysis of Main Holding and Joint-stock Companies Applicable Not applicable Description of main subsidiaries and of joint-stock companies which have influence on the Companys net profit by over 10%Unit:RMB Company name Company type Principal businesses Registered capital Total assets Net asse

120、ts Operating income Operating profit Net profit Jiangmen C&S Subsidiary R&D,production,and sales(including online sales):household paper,maternal and infant products,cosmetics,wipes,non-woven products,daily necessities,and cleaning supplies;sales(including online sales)of Class I and II medical devi

121、ces.(The above items do not involve special management measures for the foreign access).(For items that must be approved in accordance with the law,the company may carry out business operations upon approval by competent departments.)RMB345,985,032 1,858,504,466.79 1,450,072,337.96 739,175,258.27 47

122、,468,924.39 39,547,311.78 Yunfu C&S Subsidiary R&D,production,wholesale,retail and online sales:household paper,sanitary products,maternal and infant products,daily necessities,cosmetics,medical devices,sanitary materials,non-woven fabrics and products,polymer materials and products,daily sundries,a

123、nd disinfection supplies(excluding hazardous chemicals);wholesale,retail and online sales:food;import and export of goods and technologies(excluding the import and export of goods and technologies prohibited by the State or involving administrative approval);warehousing services(limited to warehouse

124、s qualified in fire protection without hazardous chemicals).(For items that must be approved in accordance with the law,the company may carry out business operations upon approval by competent departments.)RMB650 million 2,113,823,321.16 1,320,141,010.64 1,589,799,453.81 134,116,759.75 113,517,664.2

125、0 Sichuan C&S Subsidiary Licensed items:production of sanitary products and RMB100 million 933,182,566.61 628,181,542.11 983,922,637.58 43,969,091.92 39,599,701.12 C&S Paper Co.,Ltd.Semi-annual Report 2022 22 disposable medical supplies;import and export of goods(for items that must be approved in a

126、ccordance with the law,the company may carry out business operations upon approval by competent departments,and the specific business items are subject to the approval document or the permit issued by relevant department).General items:sales of sanitary products and disposable medical supplies;sales

127、 of personal hygiene products;sales of daily necessities;manufacture of paper products;sales of paper products;manufacture of paper;manufacture of daily chemical products;sales of daily chemical products;sales of Class II medical devices;sales of Class I medical devices;manufacture of industrial tex

128、tile products;sales of industrial textile products;manufacture of maternal and infant products;sales of maternal and infant products.(The company may carry out business operations independently according to the law based on the business license,except for items that must be licensed according to the

129、 law.)Hubei C&S Subsidiary Licensed items:production of sanitary products and disposable medical supplies;production of cosmetics(for items that must be approved in accordance with the law,companies may carry out business operations upon approval by relevant departments,and the specific business ite

130、ms are subject to the approval document or the permit issued by competent department).General items:sales of sanitary products and disposable medical supplies;retail of cosmetics;wholesale of cosmetics;manufacture of paper;sales of personal hygiene products;sales of knitwear;manufacture of maternal

131、and infant products;sales of maternal and infant products;sales of paper products;manufacture of paper products;sales of daily necessities;sales of daily chemical products;sales of disinfectants(excluding hazardous chemicals);RMB200 million 1,719,230,506.18 503,409,804.43 984,047,835.32 54,254,655.3

132、0 42,420,266.07 C&S Paper Co.,Ltd.Semi-annual Report 2022 23 Internet sales(excluding the sales of commodities requiring a permit);sales of Class I medical devices;sales of Class II medical devices;import and export of goods and technologies(excluding the import and export of goods and technologies

133、prohibited by the State or involving administrative approval).(For items that must be approved in accordance with the law,the company may carry out business operations upon approval by competent departments.)Acquisition and disposal of subsidiaries during the reporting period Applicable Not applicab

134、le Description of main holding and joint-stock companies None C&S Paper Co.,Ltd.Semi-annual Report 2022 24 IX.Structured Entities Controlled by the Company Applicable Not applicable X.Risks Faced by the Company and Countermeasures 1.Risk of great fluctuations in pulp prices Pulp is an international

135、bulk raw material and its price is obviously affected by the world economic cycle.With the repeated outbreak of the pandemic,pulp imports were restricted by factors such as unstable shipping schedules and blocked transportation.Coupled with factors such as RMB appreciation,buying inflation and misma

136、tch between supply and demand,pulp prices first surged and then eased back.Pulp is the primary raw material of the Companys production,accounting for 40%-60%of the total production costs.Therefore,substantial fluctuations in pulp prices pose a risk to the Company.The Company is equipped with a profe

137、ssional procurement team which,on the premise of ensuring normal production inventory,adjusts the purchase rhythm by professionally evaluating the future trend of pump boards and coordinating the market conditions of international pulp prices.The Company has cemented long-term supply contracts with

138、pulp suppliers that have large production scale,abundant forest resources and advanced production technologies to ensure stable raw material procurement.It has established a global procurement network with purchases in Europe,North America,South America,etc.2.Risk of exchange rate The import of mach

139、inery equipment and pulp and the export of products to overseas market of the Company are mainly settled in USD,HKD,and EUR.Since exchange rates fluctuate under the impact of the international economic situation,the Company faces exchange rate risks.The Company pays close attention to changes in the

140、 foreign exchange market on a daily basis and hedges against exchange losses brought by RMB depreciation or two-way fluctuations by adjusting the structure of foreign currency assets and liabilities and reducing overall foreign currency liabilities.In addition,the Company started to adopt the spot s

141、elling rate accounting for foreign currency transactions since 2015 in accordance with its actual needs and in compliance with foreign exchange requirements.In this way,the Company may choose to buy foreign currency and pay for the goods at a rate favorable to the Company at an appropriate time.Furt

142、hermore,the Company hedges against and avoids exchange rate risks via centralized management of foreign exchange funds,purchase payment hedging,etc.based on changes in the foreign exchange market and actual C&S Paper Co.,Ltd.Semi-annual Report 2022 25 development of the Company.With regard to exchan

143、ge rate risk exposure,the Company also uses hedging and other financial tools to conduct reasonable risk management.3.Risk of regional market competition Household paper is a vast market in China in terms of both geography and market space.Given the low unit value,transportation expenses taking up a

144、 large part of the sales price,and limitations of the transportation radius,the main competition in the household paper industry lies in regional markets.High-end,mid-end,and low-end products compete in regional markets,with the influence of spending power and consumption habit.Judging from the deve

145、lopment trend of the industry,mid-and high-end household paper of national brands has more competitive edge.However,at present,some regional brands have an advantage in some regional markets.Compared with overseas counterparts,Chinas household paper industry requires continued integration.The Compan

146、y embraces production bases and a sales network across the country and offers mid-and high-end products under national brands.Nevertheless,it is inescapable from the risk of regional market competition.After years of development,the Company has become one of the leading companies in the domestic hou

147、sehold paper industry.It has built a marketing network covering most prefecture(county)level cities and a production base with national presence.As a result,transportation costs can be effectively reduced and transportation efficiency effectively improved by shorting the distance with consumers.As t

148、he Company continues to deepen and expand sales channels,it will gradually cover untapped outlets.In the future,in response to market competition,the Company will strengthen channel sinking,increase market penetration,further expand its scale,and further improve its overall market competitiveness an

149、d shares.4.Risk of industrial policies Stricter requirements have been raised for the papermaking industry in the aspects of scale,technology,equipment,and environmental protection,as multiple industry plans and supporting policies have been successively issued by relevant departments,including the

150、Papermaking Industry Development Policy,the Notice on the Management of Elevated Source Pollution Discharge Permits in Thermal Power and Papermaking Industries and Pilot Cities of Beijing-Tianjin-Hebei Region,and the Opinions of China Paper Association on“Thirteenth Five-year”Development Plan of the

151、 Papermaking Industry.Particularly,a number of measures have been introduced through environmental protection policies to drive the all-round,coordinated,and sustainable development of the household paper industry,including 1)optimizing the industrial distribution to reasonably allocate resources an

152、d promoting clean production to preserve the ecological environment;2)pushing energy conservation and emission reduction to shut down outdated production facilities,and adjusting product structure C&S Paper Co.,Ltd.Semi-annual Report 2022 26 and improving product quality;3)developing resource-saving

153、 models to advocate green consumption;and 4)optimizing enterprise structure and driving M&A and restructuring.These policies are designated to strengthen household paper industry concentration,close backward production facilities,and optimize resource allocation.The Company,as an enterprise in the f

154、irst echelon of the domestic household paper industry,is underpinned by national policies related to the sustainable development of the household paper industry.Precisely because of this,industrial policy adjustment,if any,will impact the production and operations of the Company to some extent.In th

155、e face of increasing stringent environmental protection policies,as a responsible domestic enterprise in the household paper industry,the Company and its subsidiaries strictly abide by environmental protection laws and regulations of the state and local governments.Production bases are equipped with

156、 state-of-the-art papermaking equipment,processing equipment and environmental protection treatment equipment and facilities,and adopt advanced environmental protection technologies.With continuous capital and technological inputs and improvement in pollution control of the production process,the Co

157、mpany strives to reduce environmental pollution and ensure green production.The Company will continue to optimize production efficiency in response to requirements of national industrial policies.5.Risk of safe production Most of the materials involved in the household paper industry are flammable,i

158、ncluding the main raw material of pulp,the main packing materials of plastic-film packing bags and cartons,the semi-finished product of body paper,and finished products.Due to the characteristics of low unit value and large market consumption,household paper manufacturers have to keep a mass of pulp

159、,packing materials,and semi-finished and finished products from the entry of raw materials into the plant to the delivery of products to the market.Thus,fire can cause enormous losses to such manufacturers.In addition,a large number of production lines have been put into use,which may pose certain o

160、ccupational health hazard and cause harm to the occupational health of employees.Even though the overall safe production risk of the Company is controllable,it still faces certain safe production risks.In view of this,the Company has formulated strict fire management regulations for raw materials an

161、d semi-finished and finished products,established a full-time safety management department,equipped adequate fire protection equipment in production areas,and bought full insurance for risky properties.As such,the Companys fire safety risk is low.In response to possible occupational health hazards,t

162、he Company,at the equipment design and procurement stages,requires suppliers to carry out intrinsic safety design and fulfill the protection measures during the installation process.At the same time,the Company has passed the ISO45001 occupational health and C&S Paper Co.,Ltd.Semi-annual Report 2022

163、 27 safety(OHS)management system and continues to maintain its effective operations to reduce the occupational health and safety risks of employees.6.Risk of logistics transportation The spread of the COVID-19 pandemic has hindered domestic and foreign logistics transportation by sea and land to var

164、ying degrees,affecting both the Companys procurement and sales and upstream suppliers and downstream dealers.In other words,the Company has suffered from multiple dimensions.Though impacts of the pandemic are phased and temporary,risks are unavoidable for the Company as being at the mid-and downstre

165、am of the household paper industry chain.The Company has quickly formulated response strategies during the pandemic and actively coordinated supply chain allocation.In terms of supply,the Company flexibly adjusts supply area based on the optimal principle to guarantee adequate goods supply to custom

166、ers.In terms of logistics,the Company implements integrated management for logistics and warehouses as well as production and sales under the premise of well taking safety precautions.Personnel in all positions are asked to stick to their posts and maintain close communication with sales to assure s

167、mooth logistics to the greatest extent.C&S Paper Co.,Ltd.Semi-annual Report 2022 28 Section IV Corporate Governance I.Annual General Meeting and Extraordinary General Meetings Held during the Reporting Period 1.Shareholder meetings during the reporting period Session of meeting Type Ratio of investo

168、r participation Date of convening Date of disclosure Resolutions of the meeting 2021 Annual General Meeting of Shareholders Annual general meeting 52.75%May 19,2022 May 20,2022 Deliberated and approved:1.Proposal on the 2021 Annual Report and Its Summary;2.Proposal on the 2021 Work Report of the Boa

169、rd of Directors;3.Proposal on the 2021 Work Report of the Board of Supervisors;4.Proposal on the 2021 Final Financial Accounts;5.Proposal on 2021 Profit Distribution Plan;6.Proposal on the Remuneration of Senior Management in 2021;7.Proposal on the Remuneration of Supervisors in 2021;8.Proposal on A

170、mending the Articles of Association of the Company.2022 First Extraordinary General Meeting Extraordinary general meeting of shareholders 51.90%July 5,2022 July 6,2022 Deliberated and approved:1.Proposal on Continued Engagement of the Accounting Firm;2.Proposal on the Repurchase and Deregistration o

171、f Partial Restricted Stocks Awarded in the First Grant under the Companys 2018 Stock Option and Restricted Stock Incentive Plan;3.Proposal onRreducing the Registered Capital and Amending the Articles of Association of the Company.2.Extraordinary general meetings of shareholders proposed to be conven

172、ed by preferred shareholders whose voting rights were resumed Applicable Not applicable II.Changes in Directors,Supervisors and Senior Management of the Company Applicable Not applicable Name Position Type Date Reason Liu Jinfeng Director,Vice President Resigned March 23,2022 Resign from the company

173、 for personal reasons Deng Wenxi Vice President Resigned June 10,2022 Resign from the company for personal reasons III.Profit Distribution and Conversion of Capital Reserve to Share Capital during the Reporting Period Applicable Not applicable C&S Paper Co.,Ltd.Semi-annual Report 2022 29 The Company

174、 plans not to distribute cash dividend,issue bonus share,or transfer capital reserve into share capital for the half year.IV.Implementation of the Stock Incentive Plan,Employee Stock Ownership Plan,and Other Employee Incentives of the Company Applicable Not applicable 1.Equity incentive During the r

175、eporting period,the implementation of the equity incentive plan was as follows:On November 30,2021,the Company convened the 12th meeting of the fifth session of the Board of Directors and the 7th meeting of the fifth session of the Board of Supervisors,which considered and approved the Proposal on t

176、he Repurchase and Deregistration of Partial Reserved Restricted Stocks under the Companys 2018 Stock Option and Restricted Stock Incentive Plan was reviewed and approved.The reserved restricted shares disregistiated this time involved 17 incentive employees,and the total number of shares repurchased

177、 and disregistiated was 139,428,accounting for 0.01%of the total share capital of the Company before deregistration.The above-mentioned restricted shares have been disregistiated in Shenzhen Branch of China Securities Depository and Clearing Corporation Limited on March 14,2022.On April 26,2022,the

178、Company convened the 13th meeting of the fifth session of Board of Directors and the 8th meeting of the fifth session of the Board of Supervisors,which considered and approved the Proposal on Deregistration of Stock Options that Were Not Exercised After the Expiration of the Second Exercise Period o

179、f Stock Options First Granted under the Companys 2018 Stock Option and Restricted Stock Incentive plan.During the second exercise period(from June 30,2021 to February 28,2022)of the stock options granted for the first time in the Companys 2018 equity incentive plan,4 incentive employees have not exe

180、rcised during the exercise period,and a total of 2,400 stock options have to be disregistiated.The above stock options have been disregistiated in Shenzhen Branch of China Securities Depository and Clearing Corporation Limited on May 17,2022.On June 16,2022,the Company convened the 14th meeting of t

181、he fifth session of the Board of Directors and the 9th meeting of the fifth session of the Board of Supervisors,which considered and approved the Proposal on Achieving the Unlock Conditions of the Third Unlock Period for First granted Restricted Stocks under the Companys 2018 Stock Option and Restri

182、cted Stock Incentive Plan,the Proposal on Adjusting the Exercise Price of Stock Options under the 2018 Stock Option and Restricted Stock Incentive Plan,the Proposal on Repurchase and Deregistration of Some Restricted Shares Granted for the First Time under the Companys 2018 Stock Option and Restrict

183、ed Stock Incentive Plan,and the proposal on Deregistration of Some Stock Options Granted for the First Time under the Companys 2018 Stock Option and Restricted Stock Incentive Plan.The total number of C&S Paper Co.,Ltd.Semi-annual Report 2022 30 incentive employees meeting the unlocking conditions i

184、s 463,and the number of restricted shares that can be released is 5,947,912;The total number of incentive employees that meet the exercise conditions is 2,000,and the number of stock options that can be exercised is 3,314,312;501,088 restricted shares need to be repurchased and deregistration;The nu

185、mber of stock options to be deregistration is 633,088.According to the companys 2021 profit distribution plan and the relevant provisions of the 2018 stock option and restricted stock incentive plan,the Company adjusted the exercise price of the stock option granted and reserved for the first time i

186、n the 2018 stock option and restricted stock incentive plan.The exercise price of the first granted stock option was adjusted to RMB 8.372/share,and the exercise price of the reserved part of the stock option was adjusted to RMB 13.765/share.The above restricted shares released from the restriction

187、on sales have been listed and circulated on June 29,2022.The above-mentioned stock options have been independently exercised on June 29,2022.As confirmed by Shenzhen Branch of China Securities Depository and Clearing Co.,Ltd.,the deregistration of the above 633,088 stock options has been completed o

188、n July 5,2022.2.Implementation of the employee stock ownership plan Applicable Not applicable 3.Other employee incentives Applicable Not applicable C&S Paper Co.,Ltd.Semi-annual Report 2022 31 Section V Environmental and Social Responsibilities I.Main Environmental Protection Issues Whether the list

189、ed company and its subsidiaries are the key pollution discharge units published by the environmental protection department Yes No Name of company or subsidiary Main pollutants and particular pollutants Ways of discharge Number of discharge outlets Distribution of discharge outlets Concentration of d

190、ischarge Implemented pollutant discharge standards Total discharge Total approved discharge Excessive discharge Jiangmen C&S Waste water-COD Discharge directly to the centralized sewage treatment plant 1 Centralized processing facilities in the factory 31.873 mg/L 200 mg/L 31.41 t 335.600 t/a None W

191、aste water-Ammonium nitrate Discharge directly to the centralized sewage treatment plant 1 Centralized processing facilities in the factory 2.576 mg/L 8 mg/L 0.95 t 13.4 t/a None Waste water-Total nitrogen Discharge directly to the centralized sewage treatment plant 1 Centralized processing faciliti

192、es in the factory 7.949 mg/L 12 mg/L 0.867 t/None Waste water-Total phosphorus Discharge directly to the centralized sewage treatment plant 1 Centralized processing facilities in the factory 0.045 mg/L 0.8 mg/L 0.249 t/None Sichuan C&S Waste water-COD Discharge to the water purification station thro

193、ugh urban sewage pipeline after treatment 1 Production waste water discharge(DW001)flows through the channel into the main outlet DW002(confluent with domestic waste water)43 mg/L 80 mg/L 21.782 t 96 t/a None Waste water-Ammonium nitrate Discharge to the water purification station through urban sewa

194、ge pipeline after treatment 1 Production waste water discharge(DW001)flows through the channel into the main outlet DW002(confluent with domestic waste 0.31 mg/L 8 mg/L 0.167 t 9.6 t/a None C&S Paper Co.,Ltd.Semi-annual Report 2022 32 water)Waste gas-PM(particulate matter)Discharge directly through

195、the flue 3 Three chimneys(2#boiler is the standby boiler,monitoring when being used)1#boiler 1.1mg/m 2#boiler 0 mg/m 3#boiler 1.2mg/m 20 mg/Nm 0.0855 t/None Waste gas-Nitrogen oxide Discharge directly through the flue 3 Three chimneys(2#boiler is the standby boiler,monitoring when being used)1#boile

196、r 27 mg/m 2#boiler 0 mg/m 3#boiler 29 mg/m 30 mg/Nm 2.0959 t 31.35 t/a None Waste gas-Sulfur dioxide Discharge directly through the flue 3 Three chimneys(2#boiler is the standby boiler,monitoring when being used)0 50 mg/Nm 0/None Zhejiang C&S Waste water-COD Discharge to Jiaxing Industrial Sewage Tr

197、eatment Plant through municipal pipe after treatment 1 Centralized processing facilities in the factory 75.15 mg/L 500 mg/L 6.17 t 13.97 t/a None Waste water-Ammonium nitrate Discharge to Jiaxing Industrial Sewage Treatment Plant through municipal pipe after treatment 1 Centralized processing facili

198、ties in the factory 6.74 mg/L 35mg/L 0.56 t 9.78 t/a None Tangshan C&S Waste water-COD Discharge to the Lvyuan Sewage Treatment Plant in the zone after being treated by the plant sewage treatment station 1 Main outlet of the zone(Lvyuan Sewage Treatment Plant)22.4 mg/L 50mg/L 3.04 t 16.5 t/a None Wa

199、ste water-Ammonium nitrate Discharge to the Lvyuan Sewage Treatment Plant in the zone after being treated by the plant sewage treatment station 1 Main outlet of the zone(Lvyuan Sewage Treatment Plant)0.474 mg/L 5mg/L 0.056 t 1.65 t/a None Waste gas-PM(particulate matter)Discharge directly through th

200、e flue 1 One chimney 1.3mg/m 5mg/m 0.051 t 2.46 t/a None Waste gas-Nitrogen oxide Discharge directly through the flue 1 One chimney 22.52mg/m 30mg/m 0.747 t 18.46t/a None Waste gas-Sulfur dioxide Discharge directly through the flue 1 One chimney 0 mg/m 10mg/m 0 6.15 t/a None Yunfu C&S Waste water-CO

201、D Discharge directly 1 Sewage treatment 28.79 mg/l 80 mg/L 27.17 t 197.71 t/a None C&S Paper Co.,Ltd.Semi-annual Report 2022 33 station in the factory Waste water-Total nitrogen Discharge directly 1 Sewage treatment station in the factory 4.79 mg/l 12 mg/L 4.547 t/None Waste water-Ammonium nitrate D

202、ischarge directly 1 Sewage treatment station in the factory 2.747 mg/l 8 mg/L 1.851 t 19.76 t/a None Hubei C&S Waste water-COD Discharge indirectly(discharge to Biquan Sewage Treatment Plant through municipal pipe after treatment)1 Discharge to Biquan Sewage Treatment Plant after pre-processing with

203、 centralized processing facilities in the factory,87 mg/L 400 mg/L 23 t/a 152.25 t/a None Waste water-Ammonium nitrate Discharge indirectly(discharge to Biquan Sewage Treatment Plant through municipal pipe after treatment)1 Discharge to Biquan Sewage Treatment Plant after pre-processing with central

204、ized processing facilities in the factory,5.23 mg/L 30 mg/L 0.57 t/a 15.25 t/a None Waste gas-PM(particulate matter)Organized discharge(dedusting by bag filter,desulfurization by limestone-gypsum and denitration by SNCR)1 One chimney 5.95 mg/m 30 mg/m 5.9 t/a 28.63 t/a None Waste gas-Sulfur dioxide

205、Organized discharge(dedusting by bag filter,desulfurization by limestone-gypsum and denitration by SNCR)1 One chimney 89 mg/m 200 mg/m 91.2 t/a 203.87 t/a None Waste gas-Nitrogen oxide Organized discharge(dedusting by bag filter,desulfurization by limestone-gypsum and denitration by SNCR)1 One chimn

206、ey 63 mg/m 200 mg/m 55.61 t/a 239.85 t/a None C&S Paper Co.,Ltd.Semi-annual Report 2022 34 Construction and operation of pollution prevention and control facilities(1)Duty toward compliance:The Company and its subsidiaries and branches strictly abide by national and local environmental laws and regu

207、lations.All new projects strictly implement the environmental impact assessment system and three simultaneous system.All production activities strictly comply with the Environmental Protection Law of the Peoples Republic of China,the Law of the Peoples Republic of China on the Prevention and Control

208、 of Water Pollution,the Law of the Peoples Republic of China on the Prevention and Control of Atmospheric Pollution,the Law of the Peoples Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste and the Action Plan for Prevention and Control of Water Pollution,and e

209、nsure that all pollutant treatment and discharge are in line with the requirements of laws and regulations.(2)Configuration and operation of water treatment equipment and facilities:Each subsidiary or branch has a complete array of environmental protection treatment equipment and facilities.The main

210、 sewage treatment processes are anaerobic,aerobic and subsequent deep treatment processes,which can achieve the discharge standards of various sewage indicators.In addition,each subsidiary or branch is equipped with a recycling water system in which the reclaimed water that meets the usage standard

211、is used for re-production to reduce the discharge of sewage as far as possible.The sewage of Jiangmen C&S,Sichuan C&S,Zhejiang C&S,Hubei C&S and Tangshan C&S is discharged after centralized treatment in the company and treated by the local sewage treatment plants through urban sewage pipeline.The se

212、wage of Yunfu C&S,after treated by the companys sewage treatment station and reaching the standard,is discharged in an organized manner.(3)Online monitoring and operation of water treatment facilities:Five subsidiaries or branches in Sichuan,Zhejiang,Tangshan,Yunfu and Hubei have all installed on-li

213、ne sewage monitoring facilities,which are directly supervised by local environmental protection bureau.After the centralized treatment within the company,the sewage of Jiangmen C&S is discharged to the sewage plant of the local paper industry base;there is no other sewage outlet and no online monito

214、ring facilities.The environmental protection bureau goes to the company regularly every quarter to compare the on-line monitoring data,which all meet the requirements.(4)Boiler waste gas emission:Sichuan C&S and Tangshan C&S are equipped with natural gas boilers.Hubei C&S is equipped with a coal-fir

215、ed boiler,and waste gas is emitted uniformly after desulfurization and denitrification.Boiler waste gas emission conforms to GB13271-2014 Emission Standard of Air Pollutants for Boiler.Environmental impact assessment of construction projects and other administrative permits for environmental protect

216、ion(1)Administrative permits:According to the Measures for the Administration of Pollutant Discharge Permit of the Ministry of Environmental Protection of the Peoples Republic of China,the applications were submitted to the Environmental Protection Bureau.All the subsidiaries and branches completed

217、the renewal and change of the pollutant discharge permit in June 2020.(2)Construction projects:the Company has always been strictly in accordance with environmental laws and regulations to implement the control of construction projects.Environmental impact assessment was carried out for all construc

218、tion projects and environmental protection project construction was arranged according to C&S Paper Co.,Ltd.Semi-annual Report 2022 35 construction plan,to ensure that the environmental protection facilities and the main project are designed,constructed and put into use at the same time.At present,a

219、ll construction projects put into production have completed environmental impact assessment and acceptance and approval.Emergency plan for sudden environmental events(1)Preparation and reporting of emergency plan for sudden environmental events:The Company strictly implements emergency response rule

220、s for sudden environmental events,and,in accordance with the technical requirements in the Technical Guidelines for Preparation of Emergency Plans for Environmental Pollution Accidents,employs a professional advisory and guidance organization to formulate the Emergency Plan for Sudden Environmental

221、Events,which has been reviewed by and filed with the Environmental Protection Bureau.(2)Emergency response supplies,training and drill:The Company has matched the corresponding emergency response supplies according to the requirements of the Emergency Plan for Sudden Environmental Events.Emergency r

222、esponse measures for hazardous chemicals have been prepared according to environmental protection requirements,and necessary labor protection supplies and emergency response supplies have been provided in accordance with safety technical instructions,and checked and updated regularly.The Company reg

223、ularly carries out emergency training and drill and suitability assessment of the emergency plan to ensure the effectiveness and enforceability of the emergency plan.Environmental self-monitoring program(1)Self-monitoring ledger:The Company strictly abides by laws and regulations,carries out self-mo

224、nitoring work in accordance with environmental protection requirements,establishes environmental management ledger and data,and constantly improves it.(2)Waste water monitoring:At present,self-monitoring is a combination of manual monitoring and automatic monitoring,and qualified units are entrusted

225、 to carry out monitoring regularly.Automatic monitoring items:main discharge outlet of waste water(COD,ammonium nitrate,flow rate,PH,total nitrogen);Manual monitoring items:BOD,SS and chroma indicators are monitored daily or weekly;for other sewage monitoring items,uncontrolled emissions,solid waste

226、 and factory boundary noise,each subsidiary entrusts qualified units to carry out monitoring work monthly or quarterly according to the local environmental protection requirements.(3)Waste gas monitoring:The main testing items are nitrogen oxide,ringelman emittance,sulfur dioxide,soot,mercury and th

227、eir compounds.The testing frequency is in compliance with the requirements of regulations.(4)The self-monitoring data of pollutant discharge and environmental monitoring plans are disclosed on provincial disclosure websites for key pollution source information while paper reports are submitted to th

228、e Environmental Protection Bureau for archival.Administrative penalties due to environmental issues during the reporting period Name of company or subsidiary Reason of penalty Violation Penalty result Impact on production and operation of the listed company Rectification measures of the Company Not

229、applicable Not applicable Not applicable Not applicable Not applicable Not applicable C&S Paper Co.,Ltd.Semi-annual Report 2022 36 Other environmental information that should be disclosed(1)Emission permit information and environmental protection information related to emission permit requirements a

230、re available on national emission permit management information platform;in the event that competent government departments in the localities of the subsidiaries and branches have additional requirements,such information is published on the platform for environmental information reporting prescribed

231、 by the local government authority.(2)Other environmental protection-related information is available in the News section of the Companys website.Measures taken to reduce carbon emissions during the reporting period and their effects Applicable Not applicable In order to further reduce pollution,imp

232、rove resource utilization efficiency and reduce production costs as well as heat consumption and emission,Zhejiang C&S,under the advocacy of competent local government departments,implemented 19 cleaner production programs,which achieved tangible results and attained the expected goals for cleaner p

233、roduction and carbon reduction.Other relevant information on environmental protection:None II.Social Responsibilities As a national enterprise with important social influence and a leading enterprise in the household paper industry,the Company has actively fulfilled its corporate social responsibili

234、ties during the reporting period.Specifics are as follows:1.On April 14,2022,Jiangmen C&S donated RMB 2,000 to help employees experiencing difficulties.2.From January to June 2022,Hubei C&S cumulatively distributed a kind fund of RMB 23,400.3.From January to June 2022,Jiangmen C&S visited veteran pa

235、rty members and local households in need in Shuangshui Town,donating funds and paper tissues to them worth RMB 11,808;it has donated a kind fund up to RMB 10,000 in total.4.From January to June 2022,C&S has cumulatively distributed a kind fund of RMB 60,000.5.From January to June 2022,to support the

236、 frontline anti-pandemic workers and people living in the pandemic areas,C&S has donated medical surgical masks,childrens masks,sanitary wipes,sanitary pads,paper tissues and other pandemic prevention and control materials to Yunfu,Zhongshan,Jilin,Qingdao,Dongguan,Shenzhen,Weihai,Shanghai and other

237、regions,with a total market value of about RMB 8 million.C&S Paper Co.,Ltd.Semi-annual Report 2022 37 Section VI Significant Events I.Commitments Completed by Actual Controllers,Shareholders,Related parties,Purchasers,or the Company within the Reporting Period and Commitments Not Fulfilled by the En

238、d of the Reporting Period Applicable Not applicable Cause of Commitment Undertaking Party Type of commitment Content of commitment Time of commitment Term of commitment Fulfillment of commitment Share reform commitment/Commitments in the acquisition report or the equity change report/Commitments mad

239、e during asset restructuring/Commitments made during the initial public offering or refinancing Directors,supervisors,and senior management Commitments of shares subject to selling restrictions Directors,supervisors,and senior management promise that they will not transfer more than 25%of the total

240、shares of the Company they hold each year during the term of office.If they leave office before the expiry of the term of office,they promise not to transfer more than 25%of the total shares of the Company they hold each year within the term of office and within six months after the term of office e

241、xpires(which is agreed when they took office).Moreover,they will not transfer their shares of the Company within half a year after they leave office.November 25,2010 Long-term Strictly observed Equity incentive commitments Liu Jinfeng Other commitments He promises not to sell all their shares(includ

242、ing shares obtained from exercise and other shares)within six months after the end of the exercise of the last stock options.Besides,they promise to strictly conform to stock trading-related laws and regulations.November 12,2020 During the implementation of the equity incentive plan Strictly observe

243、d Equity incentive commitments Dong Ye,Ye Longfang Other commitments They promise not to sell all their shares(including shares obtained from exercise and other shares)within six months after the end of the exercise of the last stock options.Besides,they promise to strictly conform to stock trading-

244、related laws and regulations.June 25,2021 During the implementation of the equity incentive plan Strictly observed C&S Paper Co.,Ltd.Semi-annual Report 2022 38 Other commitments to minority shareholders Deng Yingzhong,Deng Guanbiao,Deng Guanjie,and Guangdong Zhongshun Paper Group Co.,Ltd.Not-to-comp

245、ete commitments They promise not to compete with the Company in the same business.January 01,2009 Long-term Strictly observed Other commitments to minority shareholders C&S Paper Co.,Ltd.Cash dividend commitments Cash dividends shall be distributed when dividend conditions are met.The Board of Direc

246、tors of the Company shall comprehensively consider industry characteristics,development stage,business model,profitability,and major capital spending(if any),distinguish the following circumstances,and propose differentiated cash dividend policies in compliance with the procedures stipulated in the

247、Articles of Association.August 28,2014 Long-term Strictly observed Other commitments to minority shareholders Deng Yingzhong Other commitments For all employees who purchase C&S Paper stocks(no less than 1,000 shares)between May 10 and May 31,2021 and hold them continuously until May 30,2022 while s

248、till serving in the Company by then,any losses incurred from the aforesaid stocks will be fully compensated by Mr.Deng Yingzhong while any profits generated will entirely belong to the employee.May 07,2021 May 10,2021-June 30,2022 Completed Other commitments to minority shareholders Deng Yingzhong,D

249、eng Guanbiao,Deng Guanjie Other commitments They promise not to reduce or pledge any shares they hold directly or indirectly in the Company in any way from May 9,2021 to May 30,2022,including new shares added due to the transfer of capital reserve into share capital or distribution of stock dividend

250、s for the aforementioned shares during the commitment period.For any violation of the above commitment,all the incurred earnings will belong to the Company.May 09,2021 May 10,2021-May 30,2022 Completed Other commitments to minority shareholders Zhou Qichao Other commitments He promises not to reduce

251、 any shares he or his parents,spouse or children hold in the Company directly or indirectly in the Company in any way within 12 months from the last reduction of the Companys shares in 2021(i.e.February 5,2021),including new shares added due to the transfer of capital reserve into share capital or d

252、istribution of stock dividends for the aforementioned shares during the commitment period.For any violation of the above commitment,all the incurred earnings will belong to the Company.July 10,2021 February 05,2021-February 4,2022 Strictly observed Whether commitments are fulfilled on time Yes If th

253、e commitment is not fulfilled within the time limit,the specific reasons for not fulfilling the commitment and the next work plan shall be explained in detail Not applicable C&S Paper Co.,Ltd.Semi-annual Report 2022 39 II.Appropriation of Funds for Non-operating Purposes by Controlling Shareholder a

254、nd Its Related Parties Applicable Not applicable During the reporting period,the Company did not have any funds appropriated for non-operating purposes by the controlling shareholder and its related parties.III.External Guarantee in Violation of Prescribed Procedures Applicable Not applicable During

255、 the reporting period,there was no external guarantee in violation of prescribed procedures.IV.Engagement and Dismissal of Accounting Firm Whether the Semi-annual Report has been audited Yes No The Semi-annual Report of the Company has not been audited.V.Explanation by the Board of Directors and the

256、 Board of Supervisors of the“Non-standard Audit Report”for the Reporting Period Issued by the Accounting Firm Applicable Not applicable VI.Explanation by the Board of Directors of the“Non-standard Audit Report”of the Previous Year Applicable Not applicable VII.Matters relating to Bankruptcy and Rest

257、ructuring Applicable Not applicable No bankruptcy and restructuring-related matters of the Company happened during the reporting period.VIII.Litigations Material litigations and arbitrations Applicable Not applicable There were no material litigations or arbitrations during the reporting period.Othe

258、r litigations Applicable Not applicable Basic information of the litigation(arbitration)Amount involved(RMB 10,000)Whether projected liabilities were incurred Litigation(arbitration)progress Hearing results and influences of the litigation(arbitration)Execution of judgment of the litigation(arbitrat

259、ion)Date of disclosure Index of disclosure C&S Paper Co.,Ltd.Semi-annual Report 2022 40 Zhongshan Trading v.Guangzhou Yingjing Trade Co.,Ltd.over sales contract dispute 31.36 No The first instance supported all the claims by Zhongshan Trading.The verdict of first instance came into force.Zhongshan T

260、rading has applied for execution.The first round of execution ended.No properties have been recovered./Zhongshan Trading v.Shenzhen Yongxinghua Trading Co.,Ltd.,Feng,&Liang over sales contract dispute 660.37 No Both the first instance and the second instance ruled that Zhongshan Trading won the case

261、.The verdict of second instance came into force.Zhongshan Trading has applied for execution In execution/Zhongshan Trading v.Shanghai Tongli Trading Co.,Ltd.and eight natural person defendants including Liu over sales contract dispute 2,932.01 No Both the first instance and the second instance ruled

262、 that Zhongshan Trading won the case.The verdict of second instance came into force.Zhongshan Trading has applied for execution In execution/Zhongshan Trading v.Guangzhou Jv Se Mai Ke Internet Service Co.,Ltd.over sales contract dispute 28.55 No The first instance supported all the claims by Zhongsh

263、an Trading.The verdict came into force.Zhongshan Trading has applied for execution The first round of execution ended.No properties have been recovered./Xiaogan Tranding v.Wuhan Xincheng Tongda Trading Co.,Ltd.over sales contract dispute 525.16 No The case was mediated and closed in the first instan

264、ce(with a mediation amount of RMB4.4961 million).The counterparty has not fulfilled obligation in line with the paper of civil mediation;Xiaogan C&S has applied for legal enforcement.In execution/Yunfu C&S v.Yu over sales contract dispute 31.08 No The first instance ruled that Yunfu C&S won the case

265、.The verdict came into force.Yunfu C&S has applied for execution In execution/Chongqing Xianshida Human Resources Management Co.,Ltd.v.C&S Paper over service contract dispute 30 No(Note:Whether projected liabilities will be incurred cannot be determined prior to the verdict.)The first instance is be

266、ing heard;pending judgment The first instance is being heard;pending judgment Not applicable/Zhongshan Trading v.Hefei Suning Fresh 475.27 No The first instance is being heard;The first instance is being Not applicable/C&S Paper Co.,Ltd.Semi-annual Report 2022 41 Food Supermarket Procurement Co.,Ltd

267、.over right to claims of bills pending judgment heard;pending judgment Tangshan C&S v.Lijiang Yile Hotel Management Co.,Ltd.over arrear dispute 3.1 No The case was mediated and closed in the first instance.The counterparty has not fulfilled obligation in line with the paper of civil mediation;Xiaoga

268、n C&S has applied for legal enforcement.In execution/Tangshan C&S v.Huangshan Langshuo Hotel Management Co.,Ltd.over arrear dispute 7.97 No The first instance supported all the claims by Tangshan C&S.The verdict of first instance came into force.Tangshan C&S has applied for execution.The first round

269、 of execution ended.No properties have been recovered./Chen v.Zhongshan Trading over labor dispute 20.22 Yes The labor arbitration has made a ruling of paying RMB81,142.8.The case has been appealed to the first-instance court,which is pending trial.Not applicable/Yang v.Tangshan C&S over labor dispu

270、te 18.6 Yes The labor arbitration has made a ruling that the Company needs to pay RMB18,680.2.Yang has filed for litigation,which is pending further trial.Not applicable/Ha v.Sichuan C&S over the rights to life,body and health dispute 14.18 No(Note:Whether projected liabilities will be incurred cann

271、ot be determined prior to the verdict.)The first instance accepted the appeal;pending trial and judgment.The first instance accepted the appeal;pending trial and judgment.Not applicable/Xiao v.Sichuan C&S over labor dispute 10.76 No(Note:Whether projected liabilities will be incurred cannot be deter

272、mined prior to the verdict.)Labor arbitration has accepted the case;pending hearing Labor arbitration has accepted the case;pending hearing Not applicable/Yao v.Sichuan C&S over labor dispute(determine labor relations)0 No(Note:Whether projected liabilities will be Labor arbitration has held hearing

273、;the claimant withdrew the Labor arbitration has accepted the case and held Not applicable/C&S Paper Co.,Ltd.Semi-annual Report 2022 42 incurred cannot be determined prior to the verdict.)arbitration request in the hearing,pending to receive the arbitral award.hearing;pending to receive the arbitral

274、 award.Yao v.Sichuan C&S over labor dispute(determine labor relations)0 No(Note:Whether projected liabilities will be incurred cannot be determined prior to the verdict.)Labor arbitration has held hearing;the claimant withdrew the arbitration request in the hearing,pending to receive the arbitral aw

275、ard.Labor arbitration has accepted the case and held hearing;pending to receive the arbitral award.Not applicable/Chen v.Sichuan C&S over labor dispute 14 No(Note:Whether projected liabilities will be incurred cannot be determined prior to the verdict.)Labor arbitration has held hearing.Labor arbitr

276、ation has accepted the case and pending hearing;Not applicable/Hubei C&S v.BBK Commercial Chain Co.,Ltd.over sales contract dispute(commercial arbitration)3,018.18 No The arbitration committee has accepted the case;the two parties have reached a settlement agreement(in execution)The arbitration comm

277、ittee has accepted the case;the two parties have reached a settlement agreement(in execution).Not applicable/Yunfu C&S v.Guangxi Nancheng Department Store Co.,Ltd.over sales contract dispute 1,170.29 No The first instance court has accepted the case;the two parties have reached a settlement agreemen

278、t(in execution).The first instance court has accepted the case;the two parties have reached a settlement agreement(in execution).Not applicable/Sichuan C&S v.Sichuan BBK Commercial Co.,Ltd.over sales contract dispute(commercial arbitration)526.46 No The arbitration committee has accepted the case;th

279、e two parties have reached a settlement agreement(in execution).The arbitration committee has accepted the case;the two parties have reached a settlement agreement(in execution).Not applicable/Zhongshan Trading v.Guangzhou Xiangxue Pharmaceutical Co.,Ltd.over sales contract dispute 2 No The case has

280、 passed litigation review;pending filing.The case has passed litigation review;pending filing.Not applicable/Sichuan C&S v.Carrefour(Shanghai)194.27 No Arbitration has accepted the case;Arbitration has accepted the Not applicable/C&S Paper Co.,Ltd.Semi-annual Report 2022 43 Supply Chain Management C

281、o.,Ltd.Sichuan Branch over sales contract dispute(commercial arbitration)pending hearing and judgment case;pending hearing and judgment Tangshan C&S v.Carrefour Shenyang Branch over sales contract dispute.433 No The first instance court has accepted the case,which is pending trial;the peer party has

282、 raised an objection to jurisdiction.The first instance has accepted the case;pending trial and judgment Not applicable/Hubei C&S v.Carrefour(Shanghai)Supply Chain Management Co.,Ltd.Ezhou Branch over sales contract dispute 8 No The first instance court has accepted the case,which is pending trial;t

283、he peer party has raised an objection to jurisdiction.The first instance has accepted the case;pending trial and judgment Not applicable/C&S v.Zhongshan Deyi Enterprise Management Services Co.,Ltd.over property sales contract dispute 3,899.2 No The first instance has accepted the case;pending trial

284、and judgment The first instance has accepted the case;pending trial and judgment Not applicable/Fan v.Yunfu C&S over labor arbitration distribute 17.36 Yes The labor arbitration committee has held hearing and made a ruling;the first instance court has accepted the case and made a ruling.The company

285、paid RMB64,730.12 after first instance ruling;the two parties settled the case under mediation.Close the case/Zhang v.Jiangmen C&S over labor arbitration distribute 84.92 No The first instance and second instance have made a ruling,with all claims against the company being dismissed.The peer party a

286、ppealed to the second instance court,which ruled and dismissed all claims against the Company.Close the case/Tan v.Jiangmen C&S over labor arbitration distribute 121.39 No The first instance and second instance have made a ruling,with all claims against the company being dismissed.The peer party app

287、ealed to the second instance court,which ruled and dismissed all claims against the Company.Close the case/Lu v.Jiangmen C&S over labor arbitration distribute 62.71 No The first instance and second instance have made a ruling,with all claims against the company being The peer party appealed to the s

288、econd instance court,which ruled and dismissed all claims against Close the case/C&S Paper Co.,Ltd.Semi-annual Report 2022 44 dismissed.the Company.Sichuan C&S v.Xian Minsheng Department Store Management Co.,Ltd.over contract dispute 5.65 No The case was mediated and closed in the first instance.Xia

289、n Minsheng has not fulfilled the repayment obligation in line with the civil mediation agreement.Sichuan C&S has applied for legal enforcement.Close the case/Yin v.Sichuan C&S over the rights to health dispute 30.25 Yes Mediation in the second instance,case closed.The case was settled through mediat

290、ion in the second instance,with a payment of RMB 200，000,and the case closed.Close the case/Li*wen v.Hubei C&S over labor dispute 0.49 Yes The labor arbitration committee has accepted the case,which is pending hearing;the two parties reached a mediation agreement prior to hearing;case closed.The Com

291、pany paid RMB4,000;case closed.The labor arbitration committee has accepted the case,which is pending hearing;the case is closed under mediation.Close the case/C&S v.China National Intellectual Property Administration over administrative dispute for reexamination after trademark application rejectio

292、n(trade mark number 53017615)0 No The case has been accepted;pending trial and judgment.The case has been accepted;pending trial and judgment.Not applicable/C&S v.China National Intellectual Property Administration over administrative dispute for reexamination after trademark application rejection(t

293、rade mark number 53022896)0 No The case has been accepted;pending trial and judgment.The case has been accepted;pending trial and judgment.Not applicable/C&S Paper Co.,Ltd.Semi-annual Report 2022 45 IX.Penalty and Rectification Applicable Not applicable X.Integrity Records of the Company and its Con

294、trolling Shareholder and Actual Controller Applicable Not applicable XI.Material Related Party Transaction 1.Related party transactions relating to daily operations Applicable Not applicable Party of related party transaction Related relationship Type of related party transaction Content of related

295、party transaction Pricing rules of related party transaction Price of related party transactions Amount of related party transaction(RMB10,000)Proportion in the amount of similar transactions Approved transaction limit(RMB10,000)Whether to outstrip the approved limit Settlement of related party tran

296、saction Available market prices for similar transactions Date of disclosure Index of disclosure Deng Yingzhong,Deng Guanbiao,Deng Guanjie Actual controller of the Company Lease Rental Market fair price Market fair price 159.05 15.95%159.05 No Transfer settlement Market fair price December 01,2021 20

297、21-145 Deng Yingzhong,Deng Guanbiao,Deng Guanjie Actual controller of the Company Lease Rental Market fair price Market fair price 0.65 0.07%Yes Transfer settlement Market fair price Pengzhou Lexiangshenghuo Trading Co.,Ltd.A company in which the son of the Companys Vice President Yue Yong holds 50%

298、equity and serves as a supervDaily operation transaction Sale of goods Market fair price Market fair price 0.83 0.00%Yes Transfer settlement Market fair price C&S Paper Co.,Ltd.Semi-annual Report 2022 46 isor Sichuan West Lexiangshenghuo Trading Co.,Ltd.A company in which the son of the Companys Vic

299、e President Yue Yong holds 50%equity and serves as a supervisor Daily operation transaction Sale of goods Market fair price Market fair price 0.01 0.00%Yes Transfer settlement Market fair price Total-160.54-159.05-Details of returns of large sales Not applicable Where the total amount of daily relat

300、ed-party transactions occurred in the current period is estimated by category,actual performance during the reporting period(if any)Among the excessive amounts of related party transactions in the reporting period,RMB 6,500 is for renting properties from the related party,RMB 8,400 is for the sales

301、of goods to the related party.They fall within the authority of the Chairman of the Company and can be implemented without the approval of the Board of Directors.Reason(s)for a large difference between the transaction price and the market reference price(if applicable)Exercise at fair price 2.Relate

302、d party transactions relating to acquisition and sale of assets or equity Applicable Not applicable During the reporting period,there was no related party transaction relating to acquisition and sale of assets or equity.3.Related party transactions relating to joint outbound investment Applicable No

303、t applicable During the reporting period,there was no related party transaction relating to joint outbound investment.4.Related party transactions relating to creditors rights and debts Applicable Not applicable During the reporting period,there was no related party transactions relating to creditor

304、s rights and debts.C&S Paper Co.,Ltd.Semi-annual Report 2022 47 5.Transactions with related party financial companies Applicable Not applicable The Company did not have deposit,loan,credit or other financial business transactions with financial companies that have related relationship and the associ

305、ated related parties.6.Transactions between financial companies controlled by the Company and related parties Applicable Not applicable Financial companies controlled by the Company did not have deposit,loan,credit or other financial business transactions with related parties.7.Other significant rel

306、ated party transactions Applicable Not applicable During the reporting period,there were no other significant related party transactions.XII.Significant Contracts and Their Performance 1.Custody,contracting and leasing matters(1)Custody Applicable Not applicable During the reporting period,there was

307、 no custody.(2)Contracting Applicable Not applicable During the reporting period,there was no contracting.(3)Leasing Applicable Not applicable Description of leasing matters On November 30,2021,the Company convened the 12th meeting of the fifth session of the Board of Directors and the 7th meeting o

308、f the fifth session of the Board of Supervisors,on which the Proposal on Daily Related Party Transactions was reviewed and approved.The Board of Directors of the Company agreed that the Company and its wholly-owned subsidiary,Zhongshan Zhongshun Trading Co.,Ltd.,leased the real estate jointly owned

309、by Mr.Deng Yingzhong,Mr.Deng Guanbiao and Mr.Deng Guanjie,the actual controllers of the Company.The lease term is from January 1,2022 to December 31,2023,and the total rent involved is RMB 7,031,600.During C&S Paper Co.,Ltd.Semi-annual Report 2022 48 the deliberation of this proposal,the Companys th

310、ree related directors,Mr.Deng Yingzhong,Mr.Deng Guanbiao and Mr.Deng Guanjie,withdrew from voting,while the remaining six attending directors unanimously approved this related party transaction.The three independent directors of the Company respectively issued Prior Approval Opinions and Opinions of

311、 Independent Directors on the proposal,agreeing to submit the proposal to the Board of Directors for deliberation and agreeing to the related party transaction.The Companys holding subsidiary,Dolemi Sanitary Products Co.,Ltd.,leased the real estate jointly owned by actual controllers of the Company

312、Mr.Deng Yingzhong,Mr.Deng Guanbiao and Mr.Deng Guanjie to be used as residence.The lease term is from December 1,2022 to December 31,2023,and the total rent involved is RMB26,100.The amount of this related party transaction falls within the approval authority of the Companys Chairman and has been ap

313、proved by the Chairman.Projects whose profits or losses brought to the Company reached more than 10%of the total profits of the Company during the reporting period Applicable Not applicable During the reporting period,there were no leasing projects whose profits or losses brought to the Company reac

314、hed more than 10%of the total profits of the Company during the reporting period.2.Material guarantee Applicable Not applicable Unit:RMB10,000 External guarantee of the Company and subsidiaries(excluding guarantee for subsidiaries)Name of guarantee object Disclosure date of relevant announcement on

315、guarantee limit Guarantee limit Actual date of occurrence Actual guarantee amount Guarantee type Collateral(if any)Counter guarantee(if any)Guarantee period Whether it has been completed Whether it is related party guarantee Wuhan Jie Rou E-commerce Co.,Ltd.December 15,2020 14,500 October 08,2021 6,

316、560 Joint and several liability guarantee None Joint and several liability guarantee 2021.10.8-2022.11.5 No No Shanghai Junmeng E-commerce Co.,Ltd.December 15,2020 20,000 September 27,2021 3,500 Joint and several liability guarantee None Joint and several liability guarantee 2021.9.27-2022.9.22 No N

317、o Total approved amount of 0 Total actual 10,060 C&S Paper Co.,Ltd.Semi-annual Report 2022 49 external guarantee during the reporting period(A1)amount of external guarantee during the reporting period(A2)Total approved amount of external guarantee at the end of the reporting period(A3)34,500 Total a

318、ctual guarantee balance at the end of the reporting period(A4)10,060 Guarantee of the Company for subsidiaries Name of guarantee object Disclosure date of relevant announcement on guarantee limit Guarantee limit Actual date of occurrence Actual guarantee amount Guarantee type Collateral(if any)Count

319、er guarantee(if any)Guarantee period Whether it has been completed Whether it is related party guarantee Zhongshan Trading December 15,2020 15,000 October 18,2021 9,661.75 Joint and several liability guarantee None None 2021.10.18-2024.9.7 No No Zhongshan Trading December 15,2020 13,600 March 02,202

320、1 6,620.78 Joint and several liability guarantee None None 2021.3.2-2026.3.1 No No Zhongshan Trading December 05,2019 25,000 December 15,2020 0 Joint and several liability guarantee None None 2020.12.15-2024.12.9 No No Zhongshan Trading December 15,2020 15,000 September 24,2021 6,055.01 Joint and se

321、veral liability guarantee None None 2021.9.24-2024.7.7 No No Zhongshan Trading December 15,2020 50,000 August 21,2021 0 Joint and several liability guarantee None None 2021.8.21-2025.5.11 No No Zhongshan Trading November 30,2021 20,000 May 17,2022 10,050 Joint and several liability guarantee None No

322、ne 2022.5.17-2030.2.27 No No C&S Paper Co.,Ltd.Semi-annual Report 2022 50 Zhongshan Trading December 15,2020 16,000 September 15,2021 500 Joint and several liability guarantee None None 2021.9.15-2024.12.31 No No Jiangmen C&S December 15,2020 12,000 October 26,2021 6,352.71 Joint and several liabili

323、ty guarantee None None 2021.10.26-2024.9.12 No No Jiangmen C&S Movember 30,2021 15,000 March 01,2022 3,556.07 Joint and several liability guarantee None None 2022.3.1-2025.2.13 No No Jiangmen C&S December 05,2019 5,000 December 23,2020 0 Joint and several liability guarantee None None 2020.12.23-202

324、5.12.23 No No Yunfu C&S December 05,2019 8,000 April 04,2020 0 Joint and several liability guarantee None None 2020.4.14-2028.4.14 No No Yunfu C&S December 05,2019 5,000 November 20,2020 800 Joint and several liability guarantee None None 2020.11.20-2023.12.31 No No Yunfu C&S December 15,2020 20,000

325、 October 26,2021 8,957.25 Joint and several liability guarantee None None 2021.10.26-2024.9.12 No No Yunfu C&S November 30,2021 7,000 March 01,2022 0 Joint and several liability guarantee None None 2022.3.1-2025.2.13 No No Yunfu C&S November 30,2021 8,000 March 25,2022 3,371.99 Joint and several lia

326、bility guarantee None None 2022.3.25-2024.12.31 No No Hubei C&S December 15,2020 10,000 December 03,2021 0 Joint and several liability None None 2021.12.3-2026.9.29 No No C&S Paper Co.,Ltd.Semi-annual Report 2022 51 guarantee Zhongshan Trading,Hubei C&S,and Macao C&S December 15,2020 10,066.35 June

327、01,2021 0 Joint and several liability guarantee None None 2021.6.1-2023.4.22 No No Jiangmen C&S,Yunfu C&S,Hubei C&S November 30,2021 22,000 January 17,2022 0 Joint and several liability guarantee None None 2022.1.17-2025.1.17 No No C&S Hong Kong,Zhong Shun International,Macao C&S December 15,2020 33

328、,554.5 November 04,2021 12,146.12 Joint and several liability guarantee None None 2021.11.4-2025.7.31 No No C&S Hong Kong,Zhong Shun International December 15,2020 17,360.56 September 08,2021 0 Joint and several liability guarantee None None 2021.9.8-2023.9.8 No No C&S Hong Kong,Macao C&S December 1

329、5,2020 34,208 March 17,202 年03 月 17日 0 Joint and several liability guarantee None None 2021.3.17-2025.12.31 No No C&S Hong Kong,Zhong Shun International,Macao C&S December 05,2019 42,614.22 February12,2020 13,711.05 Joint and several liability guarantee None None 2020.2.12-2022.2.12 No No C&S Hong K

330、ong,Macao C&S December 15,2020 6,710.9 December 03,2021 0 Joint and several liability guarantee None None 2021.12.3-2025.9.24 No No C&S Hong Kong,Macao C&S December 05,2019 16,106.16 March 27,2020 309.81 Joint and several liability guarantee None None 2020.3.27-2023.2.19 No No C&S Hong Kong,Zhong Sh

331、un International,Macao C&S December 05,2019 20,132.7 January 30,2020 0 Joint and several liability guarantee None None 2020.1.30-2023.1.30 No No Macao C&S December 15,2017 7,381.99 March 23,2018 3,664.15 Joint and None None 2018.3.23-2022.9.23 No No C&S Paper Co.,Ltd.Semi-annual Report 2022 52 sever

332、al liability guarantee Macao C&S December 15,2017 7,000 August 15,2018 4,425.61 Joint and several liability guarantee None None 2018.8.15-2025.8.15 No No Macao C&S December 15,2020 20,132.7 November 12,2021 6,396.52 Joint and several liability guarantee None None 2021.11.12-2024.10.20 No No C&S Hong

333、 Kong,Zhong Shun International,Macao C&S December 05,2019 23,488.15 September 01,2020 0 Joint and several liability guarantee None None 2020.9.1-2022.7.9 No No Total approved amount of guarantee for subsidiaries during the reporting period(B1)72,000 Total actual amount of guarantee for subsidiaries during the reporting period(B2)16,978.06 Total approved amount of guarantee for subsidiaries at the