Shandong Chenming Paper Holdings Limited 2025 Third Quarterly Report

Stock Code：000488 200488 Stock abbreviation：ST Chenming ST Chenming B Announcement Number：2025-072

SHANDONG CHENMING PAPER HOLDINGS LIMITED

2025 Third Quarterly Report

The Company and all members of the Board of Directors ensure that the contents of the information disclosure

are true accurate and complete and there is no false record statement or material omission.IMPORTANT NOTICE:

1. The Board the directors (the “Directors”) and senior management (the “Senior Management”) hereby

warrant the truthfulness accuracy and completeness of this quarterly report which does not contain any false

representation misleading statement or material omission and are jointly and severally responsible for the

liabilities of the Company.

2. The head of the Company the head in charge of accounting and the head of the accounting department

(Accounting Officer) declare that they warrant the truthfulness accuracy and completeness of the financial

information in this quarterly report.

3. Has the third quarterly report already been audited yet

□ Yes ? No

1Shandong Chenming Paper Holdings Limited 2025 Third Quarterly Report

I. KEY FINANCIAL DATA

(I) Major accounting data and financial indicators

Retrospective adjustment to or restatement of the accounting data for prior years by the Company

□ Yes ? No

Increase/decrease for

Increase/decrease The period from the period from the

The reporting compared to the the beginning of beginning of the year to

period corresponding the year to the end the end of the reportingperiod of the prior of the reporting period as compared to

year period the corresponding

period of the prior year

Revenue (RMB) 1241229778.93 -79.10% 3347860731.23 -83.11%

Net profit attributable to

shareholders of the -2149863362.61 -191.02% -6007816553.17 -746.05%

Company (RMB)

Net profit after extraordinary

gains or losses attributable

to shareholders of the -2164751046.01 -169.22% -5810114661.82 -440.51%

Company (RMB)

Net cash flows from

operating activities (RMB) — — 702589282.04 -70.53%

Basic earnings per share

(RMB per share) -0.74 -193.65% -2.05 -747.11%

Diluted earnings per share

(RMB per share) -0.74 -193.65% -2.05 -747.11%

Weighted average return on

net assets -43.90%

Decrease of 39.37 -97.29% Decrease of 92.93percentage points percentage points

As at the end of the As at the end of Increase/decrease as at the end of the

reporting period the prior year reporting period compared to the end of theprior year

Total assets (RMB) 52854974409.43 63509295142.08 -16.78%

Owners’ equity attributable

to shareholders of the 3196889425.38 9156104358.91 -65.08%

Company (RMB)

(II) Items and amounts of extraordinary gains or losses

?Applicable□Not applicable

Unit: RMB

Amount for the period

Item Amount for the from the beginning ofreporting period the year to the end of the Explanation

reporting period

Profit or loss from disposal of non-current assets

(including write-off of asset impairment provision) -5500166.25 -102550045.01

Government grants (except for the government grants

closely related to the ordinary course of business of 13939913.30 39443281.03

the Company granted in accordance with an

2Shandong Chenming Paper Holdings Limited 2025 Third Quarterly Report

established standard and having an ongoing effect on

the Company’s profit or loss in compliance with

national policies and regulations) accounted for in

profit or loss for the current period

Except for effective hedging business conducted in

the ordinary course of business of the Company gain

or loss arising from the change in fair value of

financial assets and financial liabilities held by a non- 6132064.70 14571636.58

financial company as well as gain or loss arising

from disposal of its financial assets and financial

liabilities

Reversal of provision for impairment of receivables

individually tested for impairment 1608754.89 14810251.65

Profit or loss from debt restructuring 1170000.00 -36001293.24

Profit or loss from changes in the fair value of

consumable biological assets subsequently measured - -129059190.34

at fair value

Other non-operating income and expenses other than

the above items -1037532.27 -19225564.05

Less: Effect of income tax 1034392.81 3983072.97

Effect of minority interests (after tax) 390958.16 -24292105.00

Total 14887683.40 -197701891.35 --

Details of other gain or loss items that fall within the definition of extraordinary gain or loss:

□Applicable ? Not applicable

The Company did not have details of other gain or loss items that fall within the definition of extraordinary gain

or loss.Explanation on the extraordinary gain or loss items as illustrated in the Explanatory Announcement on

Information Disclosure for Companies Offering Their Securities to the Public No.1 – Extraordinary Gains or

Losses defined as its recurring gain or loss items

?Applicable□Not applicable

Item Amount involved(RMB) Reason

Government grants related to assets that are closely related to the Company’s

Other 40610658.99 normal operations are subsequently amortised to other income which has aincome continuing effect on the Company’s profit or loss and is therefore accounted for

as recurring profit or loss.(III) Details and reasons for changes in major accounting figures and financial indicators

?Applicable□Not applicable

1.Analysis of assets and liabilities of the Company

Unit: RMB

Item 30 September 2025 31 December 2024 Change Reason forchange

Monetary funds 731639703.39 5909879812.18 -87.62% (1)

Bills receivable 851752915.38 506605701.74 68.13% (2)

Other current assets 246581588.87 559911202.83 -55.96% (3)

Other non-current financial

assets 344055571.63 751030454.68 -54.19% (4)

Bills payable 53732813.94 1423918112.99 -96.23% (5)

3Shandong Chenming Paper Holdings Limited 2025 Third Quarterly Report

Contract liabilities 485144692.32 274829824.35 76.53% (6)

Interest payable 345615272.60 63042283.31 448.23% (7)

Non-current liabilities due

within one year 2964214743.99 1577936964.14 87.85% (8)

Other current liabilities 369024362.07 2680562600.58 -86.23% (9)

Long-term payables 2656766474.21 774965008.29 242.82% (10)

Explanation of the reasons leading to the major changes:

(1) Monetary funds decreased by 87.62% as compared to the beginning of the year mainly due to a decrease in

guarantee deposits maintained by the Company as at the end of the reporting period.

(2) Bills receivable increased by 68.13% as compared to the beginning of the year mainly due to an increase in

bills that had been endorsed and discounted but had not yet matured and could not be derecognised as at the end

of the reporting period.

(3) Other current assets decreased by 55.96% as compared to the beginning of the year mainly due to a

decrease in prepaid expenses during the reporting period.

(4) Other non-current financial assets decreased by 54.19% as compared to the beginning of the year mainly

due to Weifang Chenchuang Equity Investment Fund Partnership (Limited Partnership) being included in the

consolidated financial statements during the reporting period.

(5) Bills payable decreased by 96.23% as compared to the beginning of the year mainly due to overdue bills

being reclassified to accounts payable and short-term borrowings as at the end of the reporting period.

(6) Contract liabilities increased by 76.53% as compared to the beginning of the year mainly due to an increase

in advance receipts as at the end of the reporting period.

(7) Interest payable increased by 448.23% as compared to the beginning of the year mainly due to an increase

in overdue interest as at the end of the reporting period.

(8) Non-current liabilities due within one year increased by 87.85% as compared to the beginning of the year

mainly due to an increase in reclassified long-term liabilities due within one year as at the end of the reporting

period.

(9) Other current liabilities decreased by 86.23% as compared to the beginning of the year mainly due to some

extended equipment finance leases being reclassified to long-term payables as at the end of the reporting period.

(10) Long-term payables increased by 242.82% as compared to the beginning of the year mainly due to some

extended equipment finance leases being reclassified to long-term payables as at the end of the reporting period.

2. Reasons for significant year-on-year changes of income statement items during the reporting period

Unit: RMB

Item January – September January – September2025 2024 Change

Reason for

change

Revenue 3347860731.23 19824745808.47 -83.11% (1)

Operating costs 5432612403.50 18076967929.54 -69.95% (2)

Sales and distribution expenses 74655486.97 147210064.88 -49.29% (3)

Research and development

expenses 55005532.38 901808557.06 -93.90% (4)

Other income 54812362.26 238472943.40 -77.02% (5)

Investment income -715405073.98 194417150.47 -467.97% (6)

Gain on change in fair value -123350217.95 1638333.26 -7629.01% (7)

Credit impairment loss -1341707401.59 -210922415.23 536.11% (8)

4Shandong Chenming Paper Holdings Limited 2025 Third Quarterly Report

Loss on impairment of assets -440561409.32 -3041427.75 14385.35% (9)

Income tax expenses -112807869.23 -267218588.36 57.78% (10)

Explanation of the reasons leading to the major changes:

(1) Revenue decreased by 83.11% as compared to the corresponding period of the prior year mainly due to a

decrease in sales of machine-made paper with a year-on-year decrease in revenue resulting from some

production bases in shutdown and maintenance during the reporting period.

(2) Operating costs decreased by 69.95% as compared to the corresponding period of the prior year mainly due

to a decrease in sales of machine-made paper with a year-on-year decrease in operating costs resulting from

some production bases in shutdown and maintenance during the reporting period.

(3) Sales and distribution expenses decreased by 49.29% as compared to the corresponding period of the prior

year mainly due to a decrease in sales of machine-made paper with a year-on-year decrease in wages and

expenses resulting from some production bases in shutdown and maintenance during the reporting period.

(4) Research and development expenses decreased by 93.90% as compared to the corresponding period of the

prior year mainly due to a decrease in research and development expense resulting from some production bases

in shutdown and maintenance during the reporting period.

(5) Other income decreased by 77.02% as compared to the corresponding period of the prior year mainly due to

a decrease in procurement of raw materials with a year-on-year decrease in additional deduction of value-added

input tax resulting from some production bases in shutdown and maintenance during the reporting period.

(6) Investment income decreased by 467.97% as compared to the corresponding period of the prior year mainly

due to a year-on-year decrease in investment income recognised from investees and investment income from

equity disposal during the reporting period.

(7) Gain on change in fair value decreased by 7629.01% as compared to the corresponding period of the prior

year mainly due to a year-on-year increase in losses from changes in the fair value of forestry assets during the

reporting period.

(8) Credit impairment loss increased by 536.11% as compared to the corresponding period of the prior year

mainly due to a year-on-year increase in the provision for bad debts on receivables during the reporting period.

(9) Loss on impairment of assets increased by 14385.35% as compared to the corresponding period of the prior

year mainly due to a year-on-year increase in the provision for impairment of equipment during the reporting

period.

(10) Income tax expenses increased by 57.78% as compared to the corresponding period of the prior year

mainly due to certain companies’ reversal of deferred tax assets arising from previously recognised deductible

losses and deductible temporary differences during the reporting period.

3. Analysis of cash flows during the reporting period

Unit: RMB

Item January – January – September Reason forSeptember 2025 2024 Change change

Net cash flows from operating activities 702589282.04 2384383407.80 -70.53% (1)

Net cash flows from investing activities -463982036.31 631043187.50 -173.53% (2)

Net cash flows from financing activities -279188820.55 -3489477926.53 92.00% (3)

Explanation of the reasons leading to the major changes:

(1) Net cash flows from operating activities decreased by 70.53% as compared to the corresponding period of the

prior year mainly due to a decrease in sales of machine-made paper with a decrease in sales revenue resulting

from some production bases in shutdown and maintenance during the reporting period.

(2) Net cash flows from investing activities decreased by 173.53% as compared to the corresponding period of the

5Shandong Chenming Paper Holdings Limited 2025 Third Quarterly Report

prior year mainly due to the repurchase of a portion of the equity interest in subsidiaries held by minority

shareholders during the reporting period and the proceeds received from the sale of the equity interest in

subsidiaries in the corresponding period of the prior year.

(3) Net cash flows from financing activities increased by 92.00% as compared to the corresponding period of the

prior year mainly due to multiple measures including interest rate reductions and extensions for maturing loans

by major financial institutions being taken to mitigate debt risks during the reporting period.II. USE OF PROCEEDS

□Applicable ? Not applicable

The Company did not use any proceeds during the reporting period.III. INFORMATION ON SHAREHOLDERS

(I) Total number of shareholders of ordinary shares and shareholders of preference shares with restored

voting right and the shareholding of the top ten shareholders

Unit: share

Total number of ordinary 109647 of which 92474 were

shareholders as at the end of holders of A shares 16858

Total number of holders of preference

were holders of B shares and shares with restored voting right as at 0the reporting period 315 were holders of H shares the end of the reporting period

Shareholdings of top ten shareholders (excluding the shares lent under refinancing business)

Percent Share pledged

Name of shareholder Nature of age of Number of

Number of

shareholder shareho shares held restricted

marked or frozen

shares held Status oflding shares Number

38681154

CHENMING HOLDINGS State-owned 45578131 Pledged 6

COMPANY LIMITED legal person 15.50% 9 0 Frozen 409956441

HKSCC NOMINEES LIMITED Overseas legal 12.70% 37342052person 5 0

CHENMING HOLDINGS

(HONG KONG) LIMITED (Note Overseas legalperson 12.38%

36413156

1)3

0

Jin Xing Domesticnatural person 1.28% 37548027 0

Chen Hongguo (Note 2) Domesticnatural person 0.65% 19080044 12810033 Frozen

1908004

4

Ji Zhongqiu Domesticnatural person 0.27% 7964174 0

Xu Hekun Domesticnatural person 0.23% 6789900 0

Zhang Xinge Domesticnatural person 0.21% 6180000 0

Chen Hao Domesticnatural person 0.20% 5950000 0

Xu Shaosen Domesticnatural person 0.18% 5403463 0

Shareholdings of the top ten non-restricted shareholders (excluding the shares lent under refinancing business

and the locked-up shares of the Senior Management)

Name of shareholder Number of non-

Class and number of shares

restricted shares held Class of shares Number

6Shandong Chenming Paper Holdings Limited 2025 Third Quarterly Report

CHENMING HOLDINGS COMPANY LIMITED 455781319 RMB ordinary shares 455781319

HKSCC NOMINEES LIMITED 373420525 Overseas listedforeign shares 373420525

Domestic listed

CHENMING HOLDINGS (HONG KONG) 364131563 foreign shares

210717563

LIMITED (Note 1) Overseas listed

foreign shares 153414000

Jin Xing 37548027 Domestic listedforeign shares 37548027

Ji Zhongqiu 7964174 RMB ordinary shares 7964174

Xu Hekun 6789900 Domestic listedforeign shares 6789900

Chen Hongguo (Note 2) 6270011 RMB ordinary shares 6270011

Zhang Xinge 6180000 RMB ordinary shares 6180000

Chen Hao 5950000 RMB ordinary shares 5950000

Xu Shaosen 5403463 Domestic listedforeign shares 5403463

A shareholder Chenming Holdings (Hong Kong) Limited which is an

overseas legal person is a wholly-owned subsidiary of a shareholder

Related party relationship or acting in Chenming Holdings Company Limited which is a state-owned legal

concert among the above shareholders person. Save for the above it is not aware that any other shareholders of

tradable shares are persons acting in concert. It is also not aware that any

other shareholders of tradable shares are related to each other.Chenming Holdings Company Limited held 455781319 RMB ordinary

Securities margin trading of top 10 shares of which 409956441 shares were held through ordinary account

shareholders and 45824878 shares were held through credit guarantee security

account.Note 1: In order to meet its own capital needs Chenming Holdings (Hong Kong) Limited conducted share

financing business with overseas institutions entrusting 210717563 B shares and 153414000 H shares of the

Company held by it to the custody brokerage designated by overseas institutions. The aforesaid shares were

subject to the risk of not to be recovered which may lead to a reduction in the Company’s shareholding but

does not affect Chenming Holdings’ position as the largest shareholder and does not affect the Company’s

control. For details please refer to the announcement disclosed by the Company on CNINFO on 18 July 2023

(announcement no.: 2023-058) and the insider information disclosed by the Company on the website of Hong

Kong Stock Exchange on 18 July 2023.Note 2: On 1 November 2024 pursuant to the 2020 Restricted A Share Incentive Scheme (Draft) the Company

made payments to the participants for the repurchase of restricted shares not yet unlocked for the third

unlocking period under the 2020 Restricted A Share Incentive Scheme. In the process of completing the

procedures for the share transfer and cancellation the 6000000 restricted shares held by Mr. Chen Hongguo

were judicially frozen. Hence the procedures for the transfer and cancellation of such restricted shares were not

yet completed with the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited. The

19080044 shares held by Mr. Chen Hongguo being a domestic natural person excludes the 6000000

restricted shares to be cancelled under the share incentive scheme.Share lending by shareholders interested in more than 5% top 10 shareholders and top 10 /shareholders of non-

restricted shares under refinancing business

□Applicable ? Not applicable

Changes of top 10 shareholders and top 10 shareholders of non-restricted shares due to lending/returning of

shares under refinancing business as compared to prior period

□Applicable ? Not applicable

7Shandong Chenming Paper Holdings Limited 2025 Third Quarterly Report

(II) Total number of shareholders of preference shares and shareholding of the top ten shareholders of

preference shares

□Applicable ? Not applicable

IV. OTHER MATERIAL MATTERS

?Applicable□Not applicable

1. Resumption of operation and production of production bases

During the reporting period with the firm support and guidance of Party committees and governments at all

levels the Company fully leveraged the role of the Group’s Party committee as the “backbone” and adhered to

the “safety-first efficiency-focused and benefit-driven” principle. Focusing on cost reduction efficiency

improvement and innovation-driven reform the Company prioritised the resumption of operation and production

of its production bases with overall planning in pursuit of syndicated loans as well as key aspects such as

equipment maintenance technological upgrades material supply and product sales. Currently the Huanggang

production base and Jiangxi Base Second Plant maintain normal operation while the Shouguang production base

and Jilin production base have achieved full resumption of operation and production. Moving forward the

Company will adopt a benefit-centric approach to enhance market analysis continuously optimise its product

structure devote resources into developing competitive product offerings and take solid steps to pursue cost

reduction and efficiency improvement. With measures including strengthening budget control and revitalising

existing assets the Company will enhance capital utilisation efficiency accelerate cash flow recovery and ensure

the sustained and stable development of the Company.V. QUARTERLY FINANCIAL STATEMENTS

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by: Shandong Chenming Paper Holdings Limited

30 September 2025

Unit: RMB

Item Closing balance Opening balance

CURRENTASSETS:

Monetary funds 731639703.39 5909879812.18

Financial assets held for trading 42521623.99 37259325.70

Bills receivable 851752915.38 506605701.74

Accounts receivable 882452137.37 1384290313.70

Accounts receivable financing 22976899.30 100730797.32

Prepayments 565645220.89 631893495.14

Other receivables 658088383.94 1084651870.94

Including: Interest receivable

Dividend receivable 22659149.81

Inventories 2683004403.09 2835388802.15

Non-current assets due within one year 1843288899.45 2840365519.48

Other current assets 246581588.87 559911202.83

Total current assets 8527951775.67 15890976841.18

NON-CURRENTASSETS:

Long-term receivables 331738344.67 280291802.55

8Shandong Chenming Paper Holdings Limited 2025 Third Quarterly Report

Long-term equity investments 3331199750.94 3971035411.54

Other non-current financial assets 344055571.63 751030454.68

Investment property 5457731468.00 5743235268.46

Fixed assets 29774980628.33 31855069324.04

Construction in progress 626073641.78 593838603.87

Bearer biological assets 9383299.52 9352071.80

Right-of-use assets 253312155.23 266024312.87

Intangible assets 1616521931.07 1652267783.57

Long-term prepaid expenses 246080740.26 289677546.87

Deferred income tax assets 1902624777.10 1790639019.23

Other non-current assets 433320325.23 415856701.42

Total non-current assets 44327022633.76 47618318300.90

Total assets 52854974409.43 63509295142.08

CURRENT LIABILITIES:

Short-term borrowings 23312003936.03 26780358809.11

Bills payable 53732813.94 1423918112.99

Accounts payable 8242469355.33 7708967406.47

Receipts in advance 41804105.87 54538940.24

Contract liabilities 485144692.32 274829824.35

Employee benefits payable 349193609.76 251387660.00

Taxes payable 197553821.05 193424339.67

Other payables 4074062157.79 2896409953.94

Including: Interest payable 345615272.60 63042283.31

Dividend payable 224249922.56 123000000.00

Non-current liabilities due within one year 2964214743.99 1577936964.14

Other current liabilities 369024362.07 2680562600.58

Total current liabilities 40089203598.15 43842334611.49

NON-CURRENT LIABILITIES:

Long-term borrowings 3553732867.54 4763662194.24

Lease liabilities 36460994.21 37092473.06

Long-term payables 2656766474.21 774965008.29

Provisions 5935000.00 5935000.00

Deferred income 1163875832.05 1240939485.52

Deferred income tax liabilities 4550601.03 8595744.33

Total non-current liabilities 7421321769.04 6831189905.44

Total liabilities 47510525367.19 50673524516.93

OWNERS’ EQUITY:

Share capital 2934556200.00 2934556200.00

Capital reserves 5241279229.79 5207678622.75

Less: Treasury shares

Other comprehensive income -903204491.66 -913708670.15

Special reserves 31297325.64 26800491.53

Surplus reserves 1212009109.97 1212009109.97

General risk provisions 80950584.11 80950584.11

Retained profit -5399998532.47 607818020.70

Total equity attributable to owners of the Company 3196889425.38 9156104358.91

9Shandong Chenming Paper Holdings Limited 2025 Third Quarterly Report

Minority interest 2147559616.86 3679666266.24

Total owners’ equity 5344449042.24 12835770625.15

Total liabilities and owners’ equity 52854974409.43 63509295142.08

Head of the Company: Jiang Yanshan Financial controller: Zhu Yanli Head of the accounting department:

Zhang Bo

2. Consolidated statement of profit or loss from the beginning of the year to the end of the reporting

period

Unit: RMB

Item Amounts for the period Amounts for the priorperiod

I. Total revenue 3347860731.23 19824745808.47

Including: Revenue 3347860731.23 19824745808.47

II. Total operating costs 7289484559.58 21139848178.56

Including: Operating costs 5432612403.50 18076967929.54

Taxes and surcharges 93123597.44 172994270.42

Sales and distribution expenses 74655486.97 147210064.88

General and administrative expenses 408744204.71 490303334.84

Research and development expenses 55005532.38 901808557.06

Finance expenses 1225343334.58 1350564021.82

Including: Interest expenses 1166488633.69 1241469909.19

Interest income 34525061.88 112019478.55

Add: Other income 54812362.26 238472943.40

Investment income (“-” denotes loss) -715405073.98 194417150.47

Including: Investment income from

associates and joint ventures -632803183.71 -12485632.66

Gains on derecognition of

financial assets measured at amortised cost -85083299.15 -36523493.40

Gain on change in fair value (“-” denotes loss) -123350217.95 1638333.26

Credit impairment loss (“-” denotes loss) -1341707401.59 -210922415.23

Loss on impairment of assets (“-” denotes loss) -440561409.32 -3041427.75

Gain on disposal of assets (“-” denotes loss) -15007877.85 18201227.31

III. Operating profit (“-” denotes loss) -6522843446.78 -1076336558.63

Add: Non-operating income 1142090.55 3329197.50

Less: Non-operating expenses 27615247.22 3617706.61

IV. Total profit (“-” denotes total loss) -6549316603.45 -1076625067.74

Less: Income tax expenses -112807869.23 -267218588.36

V. Net profit (“-” denotes net loss) -6436508734.22 -809406479.38

(I) Classification according to the continuity of

operation

1. Net profit from continuing operations (“-” denotes

net loss) -6436508734.22 -809406479.38

(II) Classification according to ownership

1. Net profit attributable to shareholders of the

Company (“-” denotes net loss) -6007816553.17 -710098519.92

2. Profit or loss of minority interest (“-” denotes net

loss) -428692181.05 -99307959.46

VI. Net other comprehensive income after tax 10504178.49 47637461.79

10Shandong Chenming Paper Holdings Limited 2025 Third Quarterly Report

Net other comprehensive income after tax attributable

to owners of the Company 10504178.49 47637461.79

(I) Other comprehensive income that cannot be

reclassified to profit or loss

(II) Other comprehensive income that will be

reclassified to profit or loss 10504178.49 47637461.79

1. Exchange differences arising from translation

of financial statements denominated in foreign currencies 18466994.15 43964948.40

2. Other comprehensive income that may be

reclassified to profit or loss under the equity method -7962815.66 3672513.39

Other comprehensive income net of tax attributable to

minority interest

VII. Total comprehensive income -6426004555.73 -761769017.59

(I) Total comprehensive income attributable to owners

of the Company -5997312374.68 -662461058.13

(II) Total comprehensive income attributable to

minority interest -428692181.05 -99307959.46

VIII. Earnings per share:

(I) Basic earnings per share -2.05 -0.242

(II) Diluted earnings per share -2.05 -0.242

Head of the Company: Jiang Yanshan Financial controller: Zhu Yanli Head of the accounting department:

Zhang Bo

3. Consolidated statement of cash flows from the beginning of the year to the end of the reporting period

Unit: RMB

Item Amounts for the period Amounts for the priorperiod

I. Cash flows from operating activities:

Cash received from sales of goods and rendering of

services 3876909484.88 20448401525.26

Tax rebates received 8332611.17

Cash received relating to other operating activities 395413687.76 276833601.14

Subtotal of cash inflows from operating activities 4272323172.64 20733567737.57

Cash paid for goods and services 2638148684.72 15836858161.61

Cash paid to and for employees 588714404.21 941577523.11

Payments of taxes and surcharges 125150526.22 372069303.31

Cash paid relating to other operating activities 217720275.45 1198679341.74

Subtotal of cash outflows from operating activities 3569733890.60 18349184329.77

Net cash flows from operating activities 702589282.04 2384383407.80

II. Cash flows from investing activities:

Cash received from investments 211417.43 7305395.37

Cash received from investments income 1384673.77 1798463.59

Net cash received from disposal of fixed assets

intangible assets and other long-term assets 45908036.00 19137619.49

Net cash received from disposal of subsidiaries and

other business units 650000.00 665807490.67

Cash received relating to other investing activities

Subtotal of cash inflows from investing activities 48154127.20 694048969.12

Cash paid for purchase of fixed assets intangible assets

and other long-term assets 3180247.38 63005781.62

Net cash paid for acquisition of subsidiaries and other 508955916.13

11Shandong Chenming Paper Holdings Limited 2025 Third Quarterly Report

business units

Cash paid relating to other investing activities

Subtotal of cash outflows from investing activities 512136163.51 63005781.62

Net cash flows from investing activities -463982036.31 631043187.50

III. Cash flows from financing activities:

Cash receipts from capital contributions

Cash received from borrowings 13992478538.58 22906350204.37

Cash received relating to other financing activities 5135704162.53 2820162381.76

Subtotal of cash inflows from financing activities 19128182701.11 25726512586.13

Cash repayments of amounts borrowed 18574823859.81 25410387276.90

Cash paid for dividend and profit distribution or

interest payment 654278665.77 1335357682.29

Including: Dividend and profit paid by subsidiaries

to minority shareholders

Cash paid relating to other financing activities 178268996.08 2470245553.47

Subtotal of cash outflows from financing activities 19407371521.66 29215990512.66

Net cash flows from financing activities -279188820.55 -3489477926.53

IV. Effect of foreign exchange rate changes on cash and

cash equivalents -1284372.00 18530453.22

V. Net increase in cash and cash equivalents -41865946.82 -455520878.01

Add: Balance of cash and cash equivalents as at the

beginning of the period 151943246.31 764233742.61

VI. Balance of cash and cash equivalents as at the end of

the period 110077299.49 308712864.60

(II) First-time implementation of new accounting standards from 2025 onwards

involving adjustments to the financial statements at the beginning of the year of initial

application

□Applicable ? Not applicable

(III) Auditors’ Report

Has the third quarterly report already been audited yet

□ Yes ? No

The third quarterly report of the Company is unaudited.The Board of Shandong Chenming Paper Holdings Limited

30 October 2025

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