Form 6-K

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of April 2018

Commission File Number: 1-12158

 

 

Sinopec Shanghai Petrochemical Company Limited

(Translation of registrant’s name into English)

 

 

No. 48 Jinyi Road, Jinshan District, Shanghai, 200540

The People’s Republic of China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 


EXHIBITS

 

Exhibit
Number

    
99.1    2018 First Quarterly Report.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    SINOPEC SHANGHAI PETROCHEMICAL COMPANY LIMITED
Date: April 27, 2018     By:  

/s/ Wu Haijun

    Name:   Wu Haijun
    Title:   President


Exhibit 99.1

 

LOGO

(A joint stock limited company incorporated in the People’s Republic of China)

2018 First Quarterly Report

 

1. Important Message

1.1 The Board of Directors (the “Board”) and the Supervisory Committee of Sinopec Shanghai Petrochemical Company Limited (the “Company” or “SPC”) as well as its directors, supervisors and senior management warrant the truthfulness, accuracy and completeness of the information contained in the 2018 first quarterly report, and warrant that there are no false representations or misleading statements contained in or material omissions from this report and severally and jointly accept responsibility pursuant to such information.

1.2 All directors attended the eighth meeting of the ninth session of the Board, and have considered and adopted the 2018 first quarterly report at the meeting.

1.3 Mr. Wu Haijun, Chairman and President of the Company, Mr. Zhou Meiyun, Executive Director, Vice President and Chief Financial Officer overseeing the accounting operations, and Mr. Zhang Feng, person-in-charge of Accounting Department (Accounting Chief) and Finance Manager warrant the truthfulness, accuracy and completeness of the financial report contained in this first quarterly report.

1.4 The financial report of the Company’s 2018 first quarterly report was prepared under the China Accounting Standards for Business Enterprises and was unaudited.

 

1


2. Key Financial Data & Change in Shareholdings

2.1 Major Accounting Data

 

     As at the end of
the Reporting
Period
     As at the end
of the previous
year
     Increase/decrease
at the end of the
Reporting Period
as compared to
the end  of the
previous year (%)
 

Total assets (RMB’000)

     42,269,632        39,609,536        6.72  
  

 

 

    

 

 

    

 

 

 

Total equity attributable to equity shareholders of the Company (RMB’000)

     30,080,841        28,256,306        6.46  
  

 

 

    

 

 

    

 

 

 
     From the
beginning of the
year to

the end of the
Reporting
Period
(January to
March)
     From the
beginning of the
year to the end
of the Reporting
Period last year
(January to
March)
     Increase/decrease as
compared to
the corresponding
period of the
previous year (%)
(January to March)
 

Net cash flows generated from operating activities

(RMB’000)

     1,635,267        2,854,156        -42.71  
     From the
beginning of the
year to

the end of the
Reporting
Period
(January to
March)
     From the
beginning of the
year to

the end of the
Reporting
Period last year
(January to
March)
     Increase/decrease as
compared to the
corresponding period
of the
previous year (%)
(January to March)
 

Revenue (RMB’000)

     25,759,522        22,571,848        14.12  

Net profit attributable to equity shareholders of the

Company (RMB’000)

     1,771,513        1,928,852        -8.16  

Net profit attributable to equity shareholders of the Company excluding non-recurring items (RMB’000)

     1,768,368        1,938,530        -8.78  

Return on net assets

(weighted average) (%)

     5.841        7.608       

Decreased by 1.767

percentage points

 

 

Basic earnings per share (RMB/share)

     0.164        0.179        -8.38  

Diluted earnings per share (RMB/share)

     0.164        0.178        -7.87  

 

2


Excluded non-recurring items and amount:

 

     Unit: RMB’000  

Item

   Amount for the
Reporting Period
(January to
March)
 

Government grants recognised through profit and loss except for government grants under the State’s unified standards on quota and amount entitlements and closely related to corporate business

     25,780  

Income from external entrusted loans

     26  

Other non-operating income and expenses other than those mentioned above

     -18,048  

Other profit and loss items that meet the definition of non-recurring items

     -7,496  

Effect on minority interests (after tax)

     9  

Tax effect for the items above

     2,874  
  

 

 

 

Total

     3,145  
  

 

 

 

 

3


2.2 Total Number of Shareholders as at the End of the Reporting Period, Top Ten Shareholders and Shareholdings of the Top Ten Shareholders of Shares in Circulation (or Unrestricted Shares)

Unit: Share

Total number of shareholders

                    100,401  
                 

 

 

 

Shareholdings of the top ten shareholders

 

Name of shareholder (in full)

   Number of shares
held at the end of
the Reporting
Period
     Percentage of
total
shareholding
(%)
     Number of
shares with
selling
restrictions
     Number of shares
pledged or frozen
     Type of
shareholder
 
            Situation of
the shares
     Number     

China Petroleum & Chemical Corporation

     5,460,000,000        50.44        0        Nil        0       


State-owned

enterprise
legal person

 

 
 

HKSCC (Nominees) Limited

     3,457,290,321        31.94        0        Unknown        —         

Foreign
legal

person

 
 

 

China Securities Finance Corporation Limited

     465,682,818        4.30        0        Nil        0        Others  

Central Huijin Investment Ltd.

     67,655,800        0.63        0        Nil        0        Others  

GF Fund — Agricultural Bank of China — GF CSI Financial Asset Management Plan

     22,751,900        0.21        0        Nil        0        Others  

Shanghai Kangli Industry and Trade Co., Ltd.

     22,215,300        0.21        0        Nil        0        Others  

Dacheng Fund — Agricultural Bank of China — Dacheng CSI Financial Asset Management Plan

     21,061,069        0.19        0        Nil        0        Others  

China Asset Fund — Agricultural Bank of China — China Asset CSI Financial Asset Management Plan

     20,613,350        0.19        0        Nil        0        Others  

Bosera Fund — Agricultural Bank of China — Bosera CSI Financial Asset Management Plan

     20,613,300        0.19        0        Nil        0       

Foreign
natural

person

 
 

 

E Fund — Agricultural Bank of China — E Fund CSI Financial Asset Management Plan

     20,613,300        0.19        0        Nil        0        Others  
Explanation of the connected relationship or acting in concert relationship of the above shareholders     








Among the above-mentioned shareholders, China Petroleum & Chemical
Corporation, a state-owned enterprise legal person, does not have any
connected relationship with the other shareholders, and is not an
act-in-concert party of the other shareholders under the “Administration
Measures on Acquisition of Listed Companies”. Among the above-
mentioned shareholders, HKSCC (Nominees) Limited is a nominee
shareholder. Apart from the above, the Company is not aware of any other
connected relationships among the other shareholders, or any
act-in-concert parties under the “Administration Measures on the
Acquisition of Listed Companies”.
 
 
 
 

 
 
 
 
 

 

4


3. Major Events

3.1 Description of Substantial Changes in Major Financial Report Items and Financial Indicators of the Company

Unit: RMB’000

Item

   As at
31 March

2018
     As at 31
December
2017
     Increase/
decrease
amount
     Change
(%)
     Major reason for change  

Cash at bank and on hand

     11,391,368        9,504,266        1,887,102        19.86       


Increase in profit and cash
generated from operating
activities in the Reporting
Period
 
 
 
 

Accounts receivable

     3,046,713        2,275,386        771,327        33.90       
Increase in sales in the
Reporting Period
 
 

Short-term borrowings

     1,065,200        606,157        459,043        75.73       


Positive operating
business, resulting in an
increase in capital
demand
 
 
 
 

Undistributed profit

     12,882,308        11,110,795        1,771,513        15.94       
Increase in profit in the
Reporting Period
 
 

Unit: RMB’000

Item 

   For the three-month period
ended 31 March
     Increase/
decrease
amount
     Change
(%)
     Major reason for change  
   2018      2017           

Revenue

     25,759,522        22,571,848        3,187,674        14.12       
Increase in unit price of
products
 
 

Cost of sales

     19,769,281        16,110,849        3,658,432        22.71       

Increase in the cost of
crude oil, leading to higher
cost of raw materials
 
 
 

Financial expenses

     -106,688        -44,034        -62,654        142.29       
Increase in deposits hence
increase in interest income
 
 

Operating profit

     2,263,474        2,499,643        -236,169        -9.45       


Significant increase in unit
price of main products
hence slight decrease in
the gross margin
 
 
 
 

3.2 Others

The second exercisable period of share options initially granted under the A Shares Share Option Incentive Scheme of the Company fulfilled the exercise conditions, while grantees exercised the share options according to the relevant regulations. According to the confirmation on registration of change in securities issued by China Securities Depository and Clearing (Shanghai) Corporation Limited (“CSDC”), on 14th February 2018, the total number of share options exercised was 9,636,900, representing 0.089% of the Company’s total share capital before the exercise. After the exercise of share options, the number of shares of the Company increased from 10,814,176,600 to 10,823,813,500.

 

5


4. Appendix

4.1 CONSOLIDATED BALANCE SHEETS

AS AT 31 MARCH 2018

Unit: RMB’000

Items

   As at the end of the
Period
     As at the beginning
of the year
 
     (unaudited)      (audited)  

Current assets

     

Cash at bank and on hand

     11,391,368        9,504,266  

Notes receivable

     1,532,472        1,151,053  

Accounts receivable

     3,046,713        2,275,386  

Advances to suppliers

     31,673        27,537  

Interests receivable

     73,199        52,993  

Dividends receivable

     2,775        —    

Other receivables

     22,111        18,557  

Inventories

     6,321,106        6,597,598  

Other current assets

     249,351        238,661  
  

 

 

    

 

 

 

Total current assets

     22,670,768        19,866,051  
  

 

 

    

 

 

 

Non-current assets

     

Long-term equity investments

     4,880,945        4,592,044  

Investment properties

     387,634        391,266  

Fixed assets

     12,521,299        12,892,501  

Construction in progress

     1,014,904        1,001,118  

Intangible assets

     393,227        397,661  

Long-term prepaid expenses

     288,258        349,588  

Deferred tax assets

     112,597        119,307  
  

 

 

    

 

 

 

Total non-current assets

     19,598,864        19,743,485  
  

 

 

    

 

 

 

Total assets

     42,269,632        39,609,536  
  

 

 

    

 

 

 

 

6


CONSOLIDATED BALANCE SHEETS (CONTINUED)

AS AT 31 MARCH 2018

 

Unit: RMB’000

Items

   As at the end of the
Period
     As at the beginning
of the year
 
     (unaudited)      (audited)  

Current liabilities

     

Short-term borrowings

     1,065,200        606,157  

Trading financial liabilities

     897        1,516  

Notes payable

     50,325        —    

Accounts payable

     5,561,913        5,573,281  

Advances from customers

     400,467        477,273  

Employee benefits payable

     98,242        123,959  

Taxes payable

     3,820,372        3,290,036  

Interest payable

     1,164        864  

Dividends payable

     23,686        23,686  

Other payables

     734,639        825,472  
  

 

 

    

 

 

 

Total current liabilities

     11,756,905        10,922,244  
  

 

 

    

 

 

 

Non-current liabilities

     

Deferred revenue

     144,409        145,679  
  

 

 

    

 

 

 

Total non-current liabilities

     144,409        145,679  
  

 

 

    

 

 

 

Total liabilities

     11,901,314        11,067,923  
  

 

 

    

 

 

 

Shareholders’ equity

     

Share capital

     10,823,814        10,814,177  

Capital surplus

     614,770        586,307  

Other comprehensive income

     17,403        17,403  

Specific reserve

     14,921        —    

Surplus reserve

     5,727,625        5,727,624  

Undistributed profits

     12,882,308        11,110,795  
  

 

 

    

 

 

 

Total equity attributable to equity shareholders of the Company

     30,080,841        28,256,306  
  

 

 

    

 

 

 

Minority interests

     287,477        285,307  
  

 

 

    

 

 

 

Total shareholders’ equity

     30,368,318        28,541,613  
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

     42,269,632        39,609,536  
  

 

 

    

 

 

 

 

7


COMPANY BALANCE SHEETS

AS AT 31 MARCH 2018

Unit: RMB’000

Items

   As at the end of the
Period
     As at the beginning
of the year
 
     (unaudited)      (audited)  

Current assets

     

Cash at bank and on hand

     10,078,402        8,268,493  

Notes receivable

     1,420,428        815,227  

Accounts receivable

     1,822,458        1,757,945  

Advances to suppliers

     26,328        20,931  

Dividends receivable

     71,420        51,115  

Other receivables

     179,737        75,431  

Inventories

     5,856,581        5,971,505  

Other current assets

     215,089        212,834  
  

 

 

    

 

 

 

Total current assets

     19,670,443        17,173,481  
  

 

 

    

 

 

 

Non-current assets

     

Long-term equity investments

     5,979,776        5,711,216  

Investment properties

     420,202        423,941  

Fixed assets

     12,282,125        12,644,706  

Construction in progress

     1,014,710        1,000,924  

Intangible assets

     329,357        332,518  

Long-term prepaid expenses

     277,915        338,837  

Deferred tax assets

     104,186        111,929  
  

 

 

    

 

 

 

Total non-current assets

     20,408,271        20,564,071  
  

 

 

    

 

 

 

Total assets

     40,078,714        37,737,552  
  

 

 

    

 

 

 

 

8


COMPANY BALANCE SHEETS (CONTINUED)

AS AT 31 MARCH 2018

 

Unit: RMB’000

Items

   As at the end of the
Period
     As at the beginning
of the year
 
     (unaudited)      (audited)  

Current liabilities

     

Short-term borrowings

     1,000,000        518,000  

Notes payable

     50,000        —    

Accounts payable

     3,829,229        4,129,720  

Advance from customers

     345,390        407,092  

Employee benefits payable

     89,817        30,411  

Taxes payable

     3,793,763        3,240,971  

Interest payable

     623        738  

Dividends payable

     23,686        23,686  

Other payables

     705,790        952,779  
  

 

 

    

 

 

 

Total current liabilities

     9,838,298        9,303,397  
  

 

 

    

 

 

 

Non-current liabilities

     

Deferred revenue

     143,179        145,679  
  

 

 

    

 

 

 

Total non-current liabilities

     143,179        145,679  
  

 

 

    

 

 

 

Total liabilities

     9,981,477        9,449,076  
  

 

 

    

 

 

 

Shareholders’ equity

     

Share capital

     10,823,814        10,814,177  

Capital surplus

     614,771        586,307  

Other comprehensive income

     17,403        17,403  

Specific reserve

     14,921        —    

Surplus reserve

     5,727,625        5,727,624  

Undistributed profits

     12,898,703        11,142,965  
  

 

 

    

 

 

 

Total shareholders’ equity

     30,097,237        28,288,476  
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

     40,078,714        37,737,552  
  

 

 

    

 

 

 

 

9


4.2 CONSOLIDATED INCOME STATEMENTS

FOR THE THREE MONTHS ENDED 31 MARCH 2018 (Unaudited)

Unit: RMB’000

     Three months ended 31 March  

Items

   2018      2017  

Total revenue

     25,759,522        22,571,848  
  

 

 

    

 

 

 

Less: Cost of sales

     19,769,281        16,110,849  

Taxes and surcharges

     3,252,945        3,313,522  

Selling and distribution expenses

     132,265        121,012  

General and administrative expenses

     717,657        830,823  

Financial expenses

     -106,688        -44,034  

Asset impairment losses

     29        18,887  

Add: Change in fair value gains

     619        —    

Investment income

     271,384        278,854  

Including: Share of income of associates and joint ventures

     281,600        278,854  

Asset disposal income (“-” to indicate loss)

     -3,102        —    

Other income

     540        —    

Operating profit

     2,263,474        2,499,643  

Add: Non-operating income

     25,937        4,742  

Less: Non-operating expenses

     18,205        13,838  
  

 

 

    

 

 

 

Total profit

     2,271,206        2,490,547  
  

 

 

    

 

 

 

Less: Income tax expenses

     497,523        562,009  

Net Profit

     1,773,683        1,928,538  

Attributable to equity shareholders of the Company

     1,771,513        1,928,852  

Minority interests

     2,170        -314  

Other comprehensive income, net of tax

     —          —    
  

 

 

    

 

 

 

Total comprehensive income

     1,773,683        1,928,538  
  

 

 

    

 

 

 

Attributable to equity shareholders of the Company

     1,771,513        1,928,852  

Minority interests

     2,170        -314  

Earnings per share

     

Basic earnings per share (RMB)

     0.164        0.179  

Diluted earnings per share (RMB)

     0.164        0.178  

 

10


COMPANY INCOME STATEMENTS

FOR THE THREE MONTHS ENDED 31 MARCH 2018 (Unaudited)

Unit: RMB’000

     Three months ended 31 March  

Items

   2018      2017  

Revenue

     19,899,990        17,287,015  

Less: Cost of sales

     13,967,063        10,880,735  

Taxes and surcharges

     3,246,105        3,309,673  

Selling and distribution expenses

     102,739        91,660  

General and administrative expenses

     679,900        797,143  

Financial expenses—net

     -86,066        -44,615  

Asset impairment losses

     29        18,887  

Add: Investment income

     268,560        268,779  

Including: Share of income of associates and joint ventures

     268,560        268,779  

Asset disposal income

     -3,340        —    

Other income

     540        —    

Operating profit

     2,255,980        2,502,311  

Add: Non-operating income

     2,707        3,642  

Less: Non-operating expenses

     8,953        13,496  
  

 

 

    

 

 

 

Total profit

     2,249,734        2,492,457  
  

 

 

    

 

 

 

Less: Income tax expenses

     493,997        559,907  

Net Profit

     1,755,737        1,932,550  

Other comprehensive income, net of tax

     —          —    
  

 

 

    

 

 

 

Total comprehensive income

     1,755,737        1,932,550  
  

 

 

    

 

 

 

Earnings per share

     

Basic earnings per share (RMB)

     0.162        0.179  

Diluted earnings per share (RMB)

     0.162        0.179  

 

11


4.3 CONSOLIDATED CASH FLOW STATEMENTS

FOR THE THREE MONTHS ENDED 31 MARCH 2018 (Unaudited)

Unit: RMB’000

Items

   Three months ended 31 March  
     2018      2017  

1. Cash flows from operating activities

     

Cash received from sales of goods or rendering of services

     25,213,452        24,847,836  

Refund of taxes and surcharges

     19,539        18,099  

Cash received relating to other operating activities

     25,825        2,120  
  

 

 

    

 

 

 

Sub-total of cash inflows

     25,258,816        24,868,055  
  

 

 

    

 

 

 

Cash paid for goods and services

     19,239,624        16,750,705  

Cash paid to and on behalf of employees

     663,888        569,034  

Payments of taxes and surcharges

     3,584,166        4,516,362  

Cash paid relating to other operating activities

     135,871        177,798  
  

 

 

    

 

 

 

Sub-total of cash outflows

     23,623,549        22,013,899  
  

 

 

    

 

 

 

Net cash flows generated from operating activities

     1,635,267        2,854,156  

2. Cash flows from investing activities

     

Cash received from entrusted lending

     12,000        12,000  

Cash received from returns on investments

     -2,775        3,375  

Net cash received from disposal of fixed assets, intangible assets and other long-term assets

     6,760        111  

Cash received relating to other investing activities

     959,290        43,801  
  

 

 

    

 

 

 

Sub-total of cash inflows

     975,275        59,287  
  

 

 

    

 

 

 

Cash paid to acquire fixed assets, intangible assets and other long-term assets

     198,388        87,297  

Cash paid to entrusted lending

     7,919        12,000  

Cash paid to other related investment activities

     1,000,000        500,000  
  

 

 

    

 

 

 

Sub-total of cash outflows

     1,206,307        599,297  
  

 

 

    

 

 

 

Net cash flows generated from investing activities

     -231,032        -540,010  

 

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CONSOLIDATED CASH FLOW STATEMENTS (CONTINUED)

FOR THE THREE MONTHS ENDED 31 MARCH 2018 (Unaudited)

Unit: RMB’000

Items

   Three months ended 31 March  
     2018      2017  

3. Cash flows from financing activities

     

Cash received from the investment

     38,102        —    

Cash received from borrowings

     544,100        92,047  
  

 

 

    

 

 

 

Sub-total of cash inflows

     582,202        92,047  
  

 

 

    

 

 

 

Cash repayments of borrowings

     85,057        34,657  

Cash paid for distribution of dividends or profits and interest expenses

     10,397        3,674  
  

 

 

    

 

 

 

Sub-total of cash outflows

     95,454        38,331  
  

 

 

    

 

 

 

Net cash flows generated from financing activities

     486,748        53,716  

4. Effect of foreign exchange rate changes on cash and cash equivalents

     -3,881        -2,102  

5. Net increase in cash and cash equivalents

     1,887,102        2,365,760  

Add: Cash and cash equivalents at beginning of the period

     7,504,266        5,440,623  

6. Cash and cash equivalents at end of the period

     9,391,368        7,806,383  

 

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CASH FLOW STATEMENTS

FOR THE THREE MONTHS ENDED 31 MARCH 2018 (Unaudited)

Unit: RMB’000

     Three months ended
31 March
 

Items

   2018      2017  

1. Cash flows from operating activities

     

Cash received from sales of goods or rendering of services

     20,679,457        20,029,508  

Cash received relating to other operating activities

     747        1,022  
  

 

 

    

 

 

 

Sub-total of cash inflows

     20,680,204        20,030,530  
  

 

 

    

 

 

 

Cash paid for goods and services

     14,673,758        11,624,700  

Cash paid to and on behalf of employees

     528,713        525,697  

Payments of taxes and surcharges

     3,575,669        4,491,960  

Cash paid relating to other operating activities

     498,031        223,969  
  

 

 

    

 

 

 

Sub-total of cash outflows

     19,276,171        16,866,326  
  

 

 

    

 

 

 

Net cash flows generated from operating activities

     1,404,033        3,164,204  

2. Cash flows from investing activities

     

Net cash received from disposal of fixed assets, intangible assets and other long-term assets

     1,412        109  

Cash received relating to other investing activities

     1,070,583        36,677  

Sub-total of cash inflows

     1,071,995        36,786  

Cash paid to acquire fixed assets, intangible assets and other long-term assets

     198,328        87,297  

Cash paid to other related investment activities

     1,000,000        500,000  
  

 

 

    

 

 

 

Sub-total of cash outflows

     1,198,328        587,297  
  

 

 

    

 

 

 

Net cash flows used in investing activities

     -126,333        -550,511  

 

14


CASH FLOW STATEMENTS (CONTINUED)

FOR THE THREE MONTHS ENDED 31 MARCH 2018 (Unaudited)

Unit: RMB’000

     Three months ended 31 March  

Items

   2018      2017  

3. Cash flows from financing activities

     

Cash received from the investment

     54,164        —    

Cash received from borrowings

     500,000        18,000  
  

 

 

    

 

 

 

Sub-total of cash inflows

     554,164        18,000  
  

 

 

    

 

 

 

Cash repayments of borrowings

     18,000        18,000  

Cash paid for distribution of dividends or profits and interest expenses

     3,955        4,003  
  

 

 

    

 

 

 

Sub-total of cash outflows

     21,955        22,003  
  

 

 

    

 

 

 

Net cash flows used in financing activities

     532,209        -4,003  

4. Effect of foreign exchange rate changes on cash and cash equivalents

     —          —    

5. Net increase in cash and cash equivalents

     1,809,909        2,609,690  

Add: Cash and cash equivalents at beginning of the period

     6,268,493        4,421,143  

6. Cash and cash equivalents at end of the period

     8,078,402        7,030,833  

 

By Order of the Board

Sinopec Shanghai Petrochemical Company Limited

Guo Xiaojun

Joint Company Secretary

Shanghai, the PRC, 26 April 2018

 

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