2023 Annual Report Summary of Shandong Chenming Paper Holdings Limited

Stock code: 000488 200488 Stock abbreviation: Chenming Paper Chenming B Announcement No.: 2024-024

2023 Annual Report Summary of

Shandong Chenming Paper Holdings Limited

I. IMPORTANT NOTICE

This annual report summary is extracted from the text of the annual report. For the full understanding of the operating results

financial position and plan for further development investors should carefully read the text of the annual report published on the

media as designated by the CSRC.All directors have attended the board meeting to review this report.Notice of non-standard auditor’s opinion

□ Applicable □ Not applicable

A proposed profit distribution plan or a proposed plan on conversion of capital reserves into share capital for the reporting period

was considered and passed by the Board

□ Applicable □ Not applicable

The Company proposes not to distribute cash dividend issue bonus share or capitalise from capital reserves

A proposed profit distribution plan on preference shares for the reporting period was considered and approved by the Board

□ Applicable □ Not applicable

II. BASIC INFORMATION ABOUT THE COMPANY

1. Company profile

晨鸣纸业000488

Stock abbreviation Stock code

晨鸣 B 200488

Stock exchange on which the shares are listed Shenzhen Stock Exchange

Stock abbreviation CHENMING PAPER Stock code 01812

Stock exchange on which the shares are listed The Stock Exchange of Hong Kong Limited

Stock abbreviation before the change (if any) Nil

Contact persons and contact methods Secretary to the Board Hong Kong Company Secretary

Name Yuan Xikun Chu Hon Leung

No. 2199 East Nongsheng Road 22nd Floor World Wide House

Correspondence address

Shouguang City Shandong Province Central Hong Kong

Facsimile 0536-2158977 00852-21629600

Telephone 0536-2158008 00852-25010028

Email address chenmmingpaper@163.com liamchu@li-partners.com

2. Overview of principle activities or products during the reporting period

(1) Industry Situation of the Company

The industry in which the Company operates is paper making and paper product industry.As an important basic raw material industry the paper industry plays an important role in various fields of the national economy.After nearly 30 years of accelerated progress China’s paper industry has made remarkable results and achieved landmark

development but is also facing new challenges in its new journey.During the reporting period the overall profitability of the paper industry improved but its momentum was slightly weaker due

12023 Annual Report Summary of Shandong Chenming Paper Holdings Limited

to the sluggish downstream demand raw material price fluctuation increased supply and other factors. According to the data of the

Ministry of Industry and Information Technology from January to December 2023 revenue of papermaking and paper product

enterprises above designated size was RMB1392.62 billion down 2.4% year on year; their operating costs were RMB1222.80

billion down 3.1% year on year; and their total profit was RMB50.84 billion up 4.4% year on year

On the supply side the domestic and overseas supply growth had a great effect on paper price fluctuation. Domesticallynew

paper production capacity in China had been drastically high in the past two years. Overseas the import volume of machine-made

paper and paperboard increased year on year as a result of the “zero tariff” policy. The domestic and overseas factors boosted the

machine-made paper supply. According to the data of the National Bureau of Statistics the national output of machine-made paper

and paperboard was 144055300 tonnes from January to December 2023 which exceeded the 140 million tonnes mark for the first

time and reached a record high.During the reporting period the prices of cultural paper and white cardboard prices were mixed. In terms of price the white

cardboard price rebounded slightly in October and November and showed an overall fluctuating downward trend. The cultural paper

price had a “V”-shaped trend that fluctuated downward in the first half of the year and floated upward in the second half.In terms of cost the paper raw material prices and energy prices had fluctuated downward since 2023. However due to a higher

price base and the cost transmission delay the paper enterprise production cost was still at a high level in 2023. Coupled with the

weak product demand enterprises faced a greater pressure to realise profit.In the short term the paper product prices still face some upside resistance under the sufficient supply. However the fierce

competition will prompt leading enterprises to exploit the scale and cost advantages and will facilitate the liquidation of small and

medium-sized enterprises to improve the industry operational efficiency thus further enhancing the industry concentration. In the

long run China’s paper industry concentration is still at a low level. The data shows that the CR10 in China’s paper industry

remained at about 45% in 2022 compared with about 90% for the CR10 in the United States which means much room for

improvement.

(2) Products of the Company

The Company is a large modern conglomerate principally engaged in pulp production and paper making and committed itself to

implementing a pulp and paper integration strategy. At present the Company has production bases in ShandongGuangdong Hubei

Jiangxi Jilin and other places with annual pulp and paper production capacity of 11 million tonnes including pulp production

capacity of 4.3 million tonnes. It is the first domestic paper making enterprise that achieves a balance between pulp production and

paper making capacity in general. During the reporting period the Company realized revenue of RMB26609 million. The machine-

made paper business is the major source of revenue of the Company. There was no significant change in the principal activity and the

business model of the Company.As a leading player in the domestic paper making industry in China the Company attaches great importance to technology

research and development and brand benefits. The Company has research institutions such as a national enterprise technology centre

a post-doctoral working station a collaborative innovation center for cleaner production and refinery of light industry bio-based

products the Shandong Pulp and Paper Making Engineering Lab and the Guangdong Pulp and Paper Production Technology

Research Centre. It has introduced internationally advanced pulp and paper production technologies and equipment for the

production of machine-made paper products covering more than 200 types in seven series including culture paper coated paperwhite cardboard copy paper industrial paper special paper and household paper. The Company owns “CHENMING CLOUDYMIRROR” “CHENMING CLOUDLY LION” “CHENMING SNOW SHARK” “CHENMING EAGLE” “CHENMINGGONGHAO” “XINGZHILIAN” and other famous brands with each major product ranking among the highest in terms of market

share in China. It is the enterprise with the largest variety of products and the most complete products in the domestic paper making

industry.During the reporting period the 70g and 80g CLOUDY MIRROR and CLOUDY LEOPARD electrostatic copy paper of the

Company were successfully selected as the 2023 “Made in Shandong·* Qilu Premium Products”. The “embossed premium napkin”

and the “high grade coated paper surface enhancement technology development” were awarded 2023 Shandong Province Technology

Innovation Awards. As one of the brands which were selected as the first 223 “Shandong’s Good Product” brands the Company was

awarded the “Shandong’s Good Product” logo authorisation. Customers recognised the product quality of the Company. The

Company built up strategic cooperation relationship with famous companies such as Daehan Paper CellMark AB in Sweden and

Deli Group.Major manufacturing

Category Major brands and types Range of application

companies

1. “BIYUNTIAN” “CLOUDY MIRROR” “CLOUDY LEOPARD”

and “YUNJIN” all-wood pulp offset paper and electrostatic base paper

Shouguang

2. “CLOUDY LION” and “CLOUDY CRANE” original white offset

Headquarters

paper Printing publications textbooks magazines

Culture paper Shouguang Meilun

3. “CLOUDY PINE” and “GREEN PINE” light weight paper covers illustrations notebooks test papers

series Zhanjiang Chenming

4. Blueprint paper colour offset paper pure texture paper non- teaching materials reference books etc.

Jiangxi Chenming

fluorescent offset paper PE offset paper

Jilin Chenming

5. Beige and high white book paper

6. Light weight coated paper

Double-sided coated paper is suitable for high

quality printing such as high-grade picture

albums picture magazines and so on

promotional materials such as interior pages of

1. “SNOW SHARK” and “EAGLE” one-sided coated paper high-end books wall calendars posters and so

Shouguang

Coated paper 2. “SNOW SHARK” “EAGLE” and “RABBIT” double-sided coated on and suitable for suitable for high-speed sheet

Headquarters

series paper printing and high-speed rotary printing;

Shouguang Meilun

3. “EAGLE” and “RABBIT” matte coated paper One-sided coated paper is suitable for upscale

tobacco package paper adhesive sticker

shopping bags slipcases envelopes gift

wrapping and so on and suitable for large

format printing and commercial printing.White 1. White cardboard of “LIYA” series white cardboard and ivory Shouguang High-end gift boxes cosmetics boxes tags

22023 Annual Report Summary of Shandong Chenming Paper Holdings Limited

cardboard cardboard of “LIPIN” and “POPLAR” series high bulk cardboard and Headquarters shopping bags publicity pamphlets high-end

series ivory cardboard of “LIZZY” and “BAIYU” series and super high bulk Jiangxi Chenming postcards; cigarette package printing of medium

cardboard of “LIYING” and “BAIYU” series Zhanjiang Chenming and high quality; milk package beverage

2. Food package board of “LIYA” and “LIZZY” series package disposable paper cups milk tea cups

3. Coated cattle card and LIYA book card and noodle bowls.

4. Playcard paper board

5. Chenming cigarette cardboard

“GOLDEN MINGYANG” and “GOLDEN CHENMING” copy paper Shouguang

Copy paper “BOYA” and “BIYUNTIAN” copy paper “MINGYANG” “LUCKY Headquarters Printing and copying business documentsseries CLOUDS” “BOYANG” and “SHANYIN” copy paper and Shouguang Meilun training materials and writing.“GONGHAO” and “TIANJIAN” copy paper Zhanjiang Chenming

Anti-stick base paper is mainly used for

Shouguang producing the paper base of stripping paper or

Industrial paper High-grade yellow anti-sticking base paper ordinary yellow/white anti- Headquarters anti-sticking base paper;

series sticking base paper and PE paper Jiangxi Chenming Cast coated base paper is suitable for producing

Zhanjiang Chenming adhesive paper or playcard compound paper

after coating.High-grade adhesive backing paper for

Special paper

Thermal paper and glassine paper Shouguang Art Paper electronics medicine food washing supplies

series

supermarket labels double-sided tapes etc.Daily toilet supplies; used in restaurants and

other catering industries and used in public

Household Toilet paper facial tissue pocket tissue napkin paper towels and

Shouguang Meilun toilets in hotels guesthouses and office

paper series “XINGZHILIAN”

buildings and also suitable for home and other

environment.

(3) Operation model of the Company

* Purchase model

The Company has established a supply chain management centre which adopts a supply chain management model of

“centralised procurement by the Group source as the first priority hierarchical separation and one-vote veto”. Through continuous

improvement of the procurement information system the Company has fully realised machine control management and optimised

the authorisation approval process effectively standardising the procurement management system. Based on the needs of

production bases the Group integrates the resources of related parties and implements centralised procurement. The Company

seeks sources and high-quality suppliers through industry exhibitions on-site inspections and competitive factory research to

strengthen procurement at source and reduce procurement costs; and introduces a supplier competition mechanism by establishing

a three-level joint review mechanism for suppliers and implementing a system of eliminating substandard suppliers so as to

improve supply quality. Meanwhile the Company actively cooperates with financial institutions and third parties in the supply

chain financial business and fully utilises the funds from contributing parties to lower procurement costs deepen strategic

cooperation and enhance supply chain competitiveness.* Production model

The Company has committed itself to implementing a pulp and paper integration strategy. Adhering to the concept of

“placing green development and environmental protection as its priority” the Company has actively promoted clean production

and vigorously carried out energy conservation and emission reduction aiming to be a resource-saving and environmentally

friendly model enterprise. It is innovating an integrated use of resources and a circular industrial development mode and an

“ecological chain” featuring resources products and recycled resources has been established. As for production process the

Company takes planned management as the focus and implements a hierarchical planned management model for the Group the

Company factories and workshops. Its production volume is determined based on the sales its production is arranged

scientifically and its inventories are under strict control. The Group has set up a production scheduling centre to monitor the

operation of the production lines of each subsidiary around the clock on a real-time basis so as to ensure normal production. It has

actively built and promoted the MES management system and realised the timely information transfer between the management

and the production control unit through bridging the gap between the ERP and DCS systems.* Marketing model

The Company has always adhered to the marketing concept of “Good faith Win-Win and Sharing” while wholeheartedly

serving its customers. The Company has a relatively mature sales network and has set up specialised sales companies responsible

for the development of domestic and overseas markets product sales and formulation of sales policies. The sales companies’

management systems are divided into product lines product companies management areas and branches to achieve matrix

management. The sales companies are divided into product companies of culture paper series coated paper series white cardboard

series electrostatic paper series special paper series and household paper series according to product line. Each product company

has its administrative district. A regional general manager is responsible for his/her administrative district under which branch

companies are set up. The chief representatives of the branch companies have full authority to deal with branch business.The Company has implemented a three-level scheduling mechanism. Branch companies administrative districts and salescompanies schedule task indicators daily to ensure the effective implementation of the plans. It sticks to a “four-level visitmechanism” to gain deep market insights and meet customer needs. Meanwhile by leveraging its comprehensive information

systems the Company has realised It-based management. It has also established and improved the complaint handling system and

customer satisfaction system to enhance the Company’s marketing management level.* R&D model

The Company is market-oriented and innovation is it driving force. It highly values technological R&D and has formed a

variety of R&D modes such as independent R&D technology introduction and industry university research cooperation. At

present the Company has a number of domestically leading innovative R&D platforms including a national enterprise technology

centre a post-doctoral working station a collaborative innovation center for cleaner production and refinery of light industry bio-

based products Shandong Pulp and Paper Making Engineering Lab and the Guangdong Pulp and Paper Production Technology

Research Centre which have enhanced its independent innovation capabilities. Meanwhile on the basis of introducing

internationally advanced pulp and paper production lines and advanced technologies the Company has made technological

32023 Annual Report Summary of Shandong Chenming Paper Holdings Limited

improvements and re-innovations and established new standards for processes and product quality forming distinctive core

technologies. The Company also works hard on the following aspects: carrying out academic research with colleges and

universities and R&D institutions such as Qilu University of Technology Qingdao University of Science and Technology Tianjin

University of Science and Technology and Institute of Chemical Industry of Forest Products of the Chinese Academy of Forestry

introducing digesting and absorbing scientific research and innovation achievements accelerating the industrialisation of new and

high technologies optimising product mix and improving the competitiveness of its products in the market.

(4) Analysis of Core Competitiveness

After innovation and development for more than 60 years the Company has created a strong brand influence and cultivated a

solid comprehensive competitiveness. It promotes product upgrades enhances R&D strength and improves core competitiveness

by creating competitive advantages in industry chain featured with pulp and paper integration. The core competitiveness of the

Company did not underwent major changes during the reporting period. The details of the core competitiveness of the Company

are as follows:

* Advantages of pulp and paper integration

The Company has unwaveringly implemented a pulp and paper integration strategy. At present its major production bases

located in Shouguang Zhanjiang and Huanggang are equipped with chemical pulp production lines with total production

capacity of wood pulp reaching 4.30 million tonnes. It is the first modern large-scale paper making company that basically realises

wood pulp self-sufficiency in China. A complete supply chain not only creates cost advantage for the Company but also

safeguards the safety stability and quality of upstream raw materials and renders strong support for the Company to maintain its

long-term competitiveness.* Scale advantages

The paper making industry is a typical capital-intensive and technology-intensive industry that follows the laws of economies

of scale. The Company is a leading player in the paper making industry in China. Its large-scale production bases can be found in

the major markets in Southern Central Northern and Northeast China with annual pulp and paper production capacity reaching

11 million tonnes where reasonable production scale creates the marginal cost advantage. Meanwhile by leveraging the scale

advantages the Company has built an international logistics centre and railway dedicated lines and docks and constructed a

comprehensive logistics service platform covering container shipping bonded warehousing transfer and storage at stations and

terminals realising the improvement of logistics efficiency and the stability of logistics costs.* Product advantages

The Company is an enterprise that offers the widest and the most complete product range in the paper making industry in

China. The product series include culture paper white cardboard coated paper copy paper household paper thermal paper etc.with each major product ranking among the best in terms of market share. The Company has attached great importance to

technology research and development. By introducing the most advanced pulping and paper making technology and equipment in

the world it persists in technological innovation and work process optimisation so as to help improve product quality and

structure upgrade continuously improve the brand value of Chenming and enhance brand benefits.* Industry layout advantages

Closely centring on the pulp and paper integration strategy the Company has integrated resources and established its

production bases in the core target market to promote the coordinated development of all regions. Currently the Company adopts

the market-oriented approach and has production bases in Shandong Guangdong Hubei Jiangxi Jilin and other places. With all

products sold at close distances the Company substantially reduces transportation costs while improving service efficiency

achieving a “win-win” between the Company and its users.* Advantages in technical equipment

The Company highly values the introduction and upgrades of technical equipment actively push equipment and technology

upgrade forward and boasts the largest and most advanced pulping and paper making production line in the world. The Company’s

major production equipment has been imported from internationally renowned manufacturers including Metso and Valmet of

Finland Voith of Germany Andritz of Austria etc. and reached the advanced international level thus ensuring production

efficiency and product quality.* Advantages in research and innovation

The Company has scientific research institutions including a national enterprise technology centre a post-doctoral working

station and a collaborative innovation center for cleaner production and refinery of light industry bio-based products. At the same

time the Company actively carries out in-depth industry-university-research cooperation with prestigious domestic universities

and research institutes continuously improves technical innovation capabilities and scientific research and development levels

and develops a series of new products with high technology contents and high added value as well as proprietary technologies. The

Company and its subsidiaries Zhanjiang Chenming Shouguang Meilun Jiangxi Chenming Jilin Chenming and Huanggang

Chenming are high and new technology enterprises. As at the end of the reporting period the Company had obtained over 400

national patents including 41 invention patents 7 national new products 16 scientific and technological progress awards above

the provincial level 5 national scientific and technological projects and 75 provincial technological innovation projects. The

Company took the lead in obtaining the ISO9001 quality system certification the ISO14001 environmental protection system

certification and the FSC-COC international forest system certification among domestic peers.* Team management advantages

The Company possesses a complete and reasonable talent structure consisting of experienced personnel including high-end

talents specialising in production technology sales finance laws etc. In the course of business operations the stable core team

has developed a corporate culture that ties in with the Company’s development summarised management experience with industry

characteristics and formed a team advantage integrating management and culture allowing it to accurately grasp the industry

development trend. At the same time the Company has paid attention to the construction of a talent reserve and cultivation

mechanism. With advanced business concepts and enormous development space the Company has attracted an array of high-

42023 Annual Report Summary of Shandong Chenming Paper Holdings Limited

calibre professionals and improved the level of human capital construction providing solid guarantee for the Company’s long-

term sustainable development.* Advantages in environmental governance capacity

The Company has actively upheld the concept of “lucid waters and lush mountains are invaluable assets” adhered to the

development idea of “placing green development and environmental protection as its priority” always regarded environmental

protection as the “life project” clung to the green development model of clean production and resource recycling and earnestly

shouldered the corporate responsibility for environmental protection. In recent years the Company and its subsidiaries have

invested more than RMB8 billion in total in environmental protection and have constructed the pollution treatment facilities

including the alkali recovery system reclaimed water treatment system reclaimed water reuse system white water recovery

system and black liquor comprehensive utilisation system. The environmental protection indicators rank high in China and in the

world. At present the Company adopts the world’s most advanced “ultrafiltration membrane + reverse osmosis membrane”

technology to complete the reclaimed water recycling membrane treatment project which is the largest reclaimed water reuse

project in the domestic paper industry. The reclaimed water recycle rate attains the industry-leading level. The reclaimed water

quality meets drinking water standards which can save hundreds of thousands cubic metres of fresh water every day. Meanwhile

in response to the “dual carbon” policy the Company actively introduces photovoltaic power generation and biomass power

generation continuously optimises the energy structure and improves the level of low-carbon production.

3. Major accounting data and financial indicators

(1) Major accounting data and financial indicators of the last three years

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

□ Yes □ No

Unit: RMB

Increase/decrease as at

As at the end of As at the end of the end of the year As at the end of

2023 2022 compared to the end of 2021

the prior year

Total assets 79487052953.58 84301017409.62 -5.71% 82869661681.08

Net assets attributable to shareholders of the

16692175196.5319084565494.92-12.54%19117985306.48

Company

Increase/decrease for the

2023 2022 year as compared to the 2021

prior year

Revenue 26608570228.20 32004367320.91 -16.86% 33019812294.14

Net profit attributable to shareholders of the

-1281289649.82189290120.82-776.89%2065513108.71

Company

Net profit after extraordinary gains or losses

-1942120184.70-361459377.16-437.30%1743876537.12

attributable to shareholders of the Company

Net cash flows from operating activities 4389949308.82 3449824242.37 27.25% 8581888192.64

Basic earnings per share (RMB per share) -0.45 0.03 -1600.00% 0.56

Diluted earnings per share (RMB per share) -0.45 0.03 -1600.00% 0.56

Decreased by 8.2

Rate of return on weighted average net assets -7.65% 0.55% 9.56%

percentage points

Data specification: When calculating financial indicators such as earnings per share and rate of return on weighted average

net assets the interest on Perpetual Bonds of RMB47430410.96 during the reporting period is deducted.

(2) Key Major Accounting Data by Quarter

Unit: RMB

Q1 Q2 Q3 Q4

Revenue 6155915692.16 6409047089.15 7156893450.74 6886713996.15

Net profit attributable to shareholders of the Company -275409967.37 -412670196.73 -80213259.42 -512996226.30

Net profit after extraordinary gains or losses

-327893189.14-483946028.35-439773872.12-690507095.09-

attributable to shareholders of the Company

Net cash flows from operating activities 916852965.06 866234782.53 1858270213.08 748591348.15

Whether the above indicators or their aggregated amounts have any material difference with the respective amounts as disclosed in

the quarterly report or interim report

□ Yes □ No

52023 Annual Report Summary of Shandong Chenming Paper Holdings Limited

4. Share capital and shareholders

(1) Table of the number of shareholders of ordinary shares and shareholders of preference shares with voting rights

restored and shareholding of top ten shareholders

Unit: Shares

Total number of Total number of

142995 of which Total number of 140889 of which holders of holders of Preference

Total number of

121718 were holders ordinary shareholders 119803 were holders Preference Shares Shares with restored

ordinary

of A shares 20954 as at the end of the of A shares 20763 with restored voting voting right as at the

shareholders as 0 0

were holders of B month prior to the were holders of B right as at the end end of the month prior

at the end of the

shares and 323 were publication date of this shares and 323 were of the reporting to the disclosure date

reporting period

holders of H shares annual report holders of H shares period (if any) of the annual report (if

(Note VIII) any) (Note VIII)

Shareholdings of top 10 shareholders (excluding the shares lent under refinancing business)

Shares pledged tagged or

Number of

Percentage of Number of locked-up

Name of shareholders Nature of shareholders restricted

shareholding shares held Status of

shares held Number

shares

CHENMING HOLDINGS COMPANY

State-owned legal person 15.47% 457322919 0 Pledged 268994000

LIMITED

HKSCC NOMINEES LIMITED Overseas legal person 12.63% 373461275 0

CHENMING HOLDINGS (HONG

Overseas legal person 12.32% 364131563 0

KONG) LIMITED (Note 1)

Hong Zejun Domestic natural person 1.19% 35300000 0

Chen Hongguo Domestic natural person 0.85% 25080044 17310033

SHANDONG SUN HOLDINGS GROUP Domestic non-state-

0.85%249871170

CO. LTD. owned legal person

China Merchants Securities (HK) Co.Overseas legal person 0.71% 20972258 0

Limited

VANGUARD EMERGING MARKETS

Overseas legal person 0.50% 14852146 0

STOCK INDEX FUND

VANGUARD TOTAL INTERNATIONAL

Overseas legal person 0.50% 14771945 0

STOCK INDEX FUND

HONG KONG SECURITIES CLEARING

Overseas legal person 0.38% 11251780 0

COMPANY LIMITED

A shareholder Chenming Holdings (Hong Kong) Limited which is an overseas legal person is a

wholly-owned subsidiary of a shareholder Chenming Holdings Company Limited which is a state-

Related party relationship or acting in owned legal person; A shareholder Chen Hongguo is the legal representative and chairman of

concert among the above shareholders Chenming Holdings Company Limited. 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 457322919 RMB ordinary shares of which 326322919

shares were held through ordinary account and 131000000 shares were held through credit guarantee

security account;

Hong Zejun held 35300000 RMB ordinary shares of which no share was held through ordinary

Securities margin trading of shareholders

account and 35300000 shares were held through credit guarantee security account;

Shandong Sun Holdings Group Co. Ltd. held 24987117 RMB ordinary shares of which no share

was held through ordinary account and 24987117 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.Share lending by top 10 shareholders under refinancing business

□ Applicable □ Not applicable

Changes in top 10 shareholders as compared to prior period

□ Applicable □ Not applicable

Unit: share

Changes in top 10 shareholders as compared to prior period

Shareholding under ordinary account and

Number of shares lent out but not yet

Addition/exit credit account and the number of shares lent

returned under refinancing arrangement

during the out but not yet returned under refinancing

Name of shareholder (full name) as at the end of the period

reporting arrangement as at the end of the period

period Percentage of total Percentage of total

Total Total

share capital share capital

62023 Annual Report Summary of Shandong Chenming Paper Holdings Limited

GUOTAI JUNAN SECURITIES

Exit 0.00 0.00% 6252684 0.00%

(HONG KONG) LIMITED

China Merchants Securities (HK)

Addition 0.00 0.00% 20972258 0.00%

Co. Limited

(2) Total number of holders of Preference Shares of the Company and the shareholdings of the top ten holders of

Preference Shares

□ Applicable □ Not applicable

During the reporting period there was no shareholding of holders of preference shares of the Company.

(3) Chart illustrating the relationship between the Company and the beneficial controller

15.47%

12.32%

5. Situation of bonds in existence on the date of approval of the annual report

□ Applicable □ Not applicable

III. Matters of significance

1. Payment of corporate bonds of RMB350 million

On 3 April 2023 the Company entrusted the Shenzhen Branch of China Securities Depository & Clearing Co. Ltd. to

complete the payment of principal and interest of “18 Chenming Bond 01” of RMB350 million in accordance with the “FirstTranche of Corporate Bonds Publicly Issued to Qualified Investors in 2018”. The bond was delisted from the Shenzhen Stock

Exchange on the same day.For details please refer to the relevant announcement disclosed by the Company on CNINFO on 30 March 2023

(announcement number: 2023-015) and the overseas regulatory announcement disclosed by the Company on the website of Hong

Kong Stock Exchange on 30 March 2023.

2. Redemption of perpetual bonds of RMB1 billion

On 11 July 2017 the Company issued the 2017 First Tranche of Medium-term Notes (bond abbreviation: 17 Lu ChenmingMTN001 bond code: 101779001) amounting to RMB1 billion with a term of 3+N. According to the “Prospectus of theCompany’s 2017 First Tranche of Medium-term Notes” “17 Lu Chenming MTN001” is subject to the issuer’s redemption option.On 11 May 2023 the Company disclosed the Announcement on Exercise of Redemption Option of Issuer of 2017 First Tranche of

Medium-term Notes of Shandong Chenming Paper Holders Limited on Shanghai Clearing House (www.shclearing.com) and

China Money (www.chinamoney.com.cn) and redeemed the RMB1 billion perpetual bonds in full on 12 July 2023 with principal

and interest payment amounted to RMB1089.70 million. To date all the bonds of the Company have been redeemed.For details please refer to the relevant announcement disclosed by the Company on CNINFO on 15 July 2023

(announcement number: 2023-049) and the overseas regulatory announcement disclosed by the Company on the website of Hong

Kong Stock Exchange on 14 July 2023.

72023 Annual Report Summary of Shandong Chenming Paper Holdings Limited

3. Termination of asset purchase through the issuance of shares and cash payments

On 27 February 2023 the Company convened the 2023 first extraordinary general meeting the 2023 first class meeting for

holders of domestic-listed shares and the 2023 first class meeting for holders of overseas-listed shares at which the Company

considered and approved relevant resolutions including the Report on the Agreement on Asset Purchase through Issuance of

Shares and Cash Payments and Connected Transactions (Draft) of the Company. The Company intended to acquire 1.19% equity

interests in Shouguang Meilun held by Dongxing Securities Investment Co. Ltd. 44.44% limited partnership share in Chenrong

Fund held by Chongqing International Trust Inc. through issuance of shares. The Company’s wholly-owned subsidiary Chenming

Investment intended to acquire 0.22% general partnership interest in Chenrong Fund held by Chenming (Qingdao) Asset

Management Co. Ltd. through cash payment. The type of shares to be issued by the Company is A shares the price of the shares

to be issued is RMB4.42 per share and the number of shares to be issued is 71841345 shares.On 14 March 2023 the Company received the Notice on the Acceptance of Application Documents for Asset Purchasethrough the Issuance of Shares of Shandong Chenming Paper Holdings Limited (Shen Zheng Shang Shen [2023] No. 259) 《( 關於受理山東晨鳴紙業集團股份有限公司發行股份購買資產申請文件的通知》(深證上審[2023]259 號)) from the Shenzhen

Stock Exchange.On 29 June 2023 the Company convened the eighth extraordinary general meeting of the tenth session of the Board and the

fourth extraordinary general meeting of the tenth session of the Supervisory Committee at which the Company considered and

approved the Resolution on the Termination of the Asset Purchase through Issuance of Shares and Cash Payments and Connected

Transactions and Withdrawal of the Application Documents and agreed to terminate the transaction sign the relevant termination

agreement with the counterparty if needed and apply to the Shenzhen Stock Exchange for relevant application documents for the

withdrawal of the transaction.For details please refer to the relevant announcements disclosed by the Company on CNINFO on 28 February 2023 16

March 2023 and 30 June 2023 (announcement number: 2023-010 2023-014 2023-048) and the relevant announcements disclosed

by the Company on the website of Hong Kong Stock Exchange on 27 February 2023 15 March 2023 and 29 June 2023.

4. Introduction of strategic investors by Zhanjiang Chenming

On 20 September 2023 the Company convened the eleventh extraordinary meeting of the tenth session of the Board at which

the Proposal on Capital Contribution and Introduction of Strategic Investors of a Controlling Subsidiary was considered and

approved. Given the promising development prospects of Zhanjiang Chenming Pulp & Paper Co. Ltd. (“Zhanjiang Chenming”) a

controlling subsidiary of the Company and the high recognition of the pulp and paper integration strategic layout Shandong

Caixin Investment Co. Ltd. a wholly-owned subsidiary of Shandong key state-owned enterprise Shandong Caixin Asset

Operation Co. Ltd. made capital contribution to Zhanjiang Chenming in the amount of RMB300 million.For details please refer to the relevant announcement disclosed by the Company published on CNINFO on 21 September

2023 (announcement no.: 2023-072) and the overseas regulatory announcement disclosed on the website of Hong Kong Stock

Exchange on 20 September 2023.

5. Business status of Chenming Leasing

At present the Company focuses on the development of its principal activities i.e. pulp production and paper making and

continues to reduce the size of the financial leasing business. As at the end of the reporting period the balance of financial leases

of Chenming Leasing decreased to RMB4.8 billion. Some financial lease receivables were overdue with the overdue principals

amounting to RMB1440 million for which provisions of RMB430 million were made and a provision coverage rate of 29.9%.Certain assets have been seized through litigation. The Company has resorted to among other things control of the underlying

assets litigation for seizure recovery for guarantors and debt reconstruction with the overall risks under control.

6. Information disclosure index for 2023 Annual Report

Announcement

Subject matter Date of publication Publication website and index

No.

2023-001 Announcement on Receipt of Government Subsidies 3 January 2023 http://www.cninfo.com.cn

Announcement on Pledge of Shares and Partial Release of Pledge of

2023-002 19 January 2023 http://www.cninfo.com.cn

Shares by Shareholders

Announcement on Resolutions of the Sixth Extraordinary Meeting of

2023-003 20 January 2023 http://www.cninfo.com.cn

the Tenth Session of the Board of Directors

Announcement on Resolutions of the Third Extraordinary Meeting of

2023-004 20 January 2023 http://www.cninfo.com.cn

the Tenth Session of the Supervisory Committee

Notice of the 2023 First Extraordinary General Meeting 2023 First

2023-005 Class Meeting for Holders of Domestic-listed Shares and 2023 First 30 January 2023 http://www.cninfo.com.cn

Class Meeting for Holders of Overseas-listed Shares

Announcement on Effects of Dilution on the Current Earnings Per

2023-006 Share As a Result of the Transaction and Relevant Remedial 20 January 2023 http://www.cninfo.com.cn

Arrangement of the Company

2023-007 2022 Annual Results Forecast 31 January 2023 http://www.cninfo.com.cn

Announcement on the Continued Pledge of Shares held by

2023-008 11 February 2023 http://www.cninfo.com.cn

Shareholders

Reply to the Inquiry Letter on Restructuring from the Shenzhen Stock

2023-009 16 February 2023 http://www.cninfo.com.cn

Exchange

Announcement on Resolutions of the 2023 First Extraordinary General

Meeting 2023 First Class Meeting for Holders of Domestic-listed

2023-010 28 February 2023 http://www.cninfo.com.cn

Shares and 2023 First Class Meeting for Holders of Overseas-listed

Shares

82023 Annual Report Summary of Shandong Chenming Paper Holdings Limited

Self-inspection Report on the Trading of Shares by Insiders on Asset

2023-011 Purchase Through Issuance of Shares and Cash Payments and Related 28 February 2023 http://www.cninfo.com.cn

Party Transaction

Supplementary Announcement on the Self-inspection Report on the

2023-012 Trading of Shares by Insiders on Asset Purchase Through Issuance of 7 March 2023 http://www.cninfo.com.cn

Shares and Cash Payments and Related Party Transaction

Announcement on the Continued Pledge of Shares held by

2023-013 11 March 2023 http://www.cninfo.com.cn

Shareholders

Announcement on the Acceptance of Asset Purchase Through Issuance

2023-014 of Shares and Cash Payments and Related Party Transaction by the 16 March 2023 http://www.cninfo.com.cn

Shenzhen Stock Exchange

Shandong Chenming Paper Holdings Limited Announcement on

Payment of 2023 Interest and Delisting with Respect to the First

2023-015 30 March 2023 http://www.cninfo.com.cn

Tranche of Corporate Bonds Publicly Issued to Qualified Investors in

2018

Announcement on Resolutions of the Fourth Meeting of the Tenth

2023-016 31 March 2023 http://www.cninfo.com.cn

Session of the Board of Directors

Announcement on Resolutions of the Fourth Extraordinary Meeting of 31 March 2023

2023-017 http://www.cninfo.com.cn

the Tenth Session of the Supervisory Committee

2023-018 2022 Annual Report Summary 31 March 2023 http://www.cninfo.com.cn

2023-019 Notice of 2022 Annual General Meeting 31 March 2023 http://www.cninfo.com.cn

2023-020 Special Statement on Securities Investment in 2022 31 March 2023 http://www.cninfo.com.cn

2023-021 Announcement on Appointment of Auditor for 2023 31 March 2023 http://www.cninfo.com.cn

2023-022 Announcement on the Development of Equipment Financing Business 31 March 2023 http://www.cninfo.com.cn

Announcement on Carrying out Factoring Business of Accounts 31 March 2023

2023-023 http://www.cninfo.com.cn

Receivable

2023-024 Announcement on Expected Provision of Guarantees to Subsidiaries for 2023 31 March 2023 http://www.cninfo.com.cn

2023-025 Special Statement on the Proposed Non-Distribution of Profit for 2022 31 March 2023 http://www.cninfo.com.cn

2023-026 Announcement on Changes in Accounting Policies 31 March 2023 http://www.cninfo.com.cn

2023-027 Announcement on the 2022 Annual Online Performance Briefing 31 March 2023 http://www.cninfo.com.cn

Announcement on Receiving the Notice on Suspending the Review of

2023-028 Asset Purchase Through Issuance of Shares and Cash Payments and 1 April 2023 http://www.cninfo.com.cn

Related Party Transaction from the Shenzhen Stock Exchange

2023-029 Supplementary Notice of 2022 Annual General Meeting 1 April 2023 http://www.cninfo.com.cn

Announcement on Resolutions of the Seventh Extraordinary Meeting of

2023-030 20 April 2023 http://www.cninfo.com.cn

the Tenth Session of the Board of Directors

Announcement on the Operational Property-secured Loan by a

2023-031 20 April 2023 http://www.cninfo.com.cn

Subsidiary and Provision of Guarantee therefor

2023-032 Notice of the 2023 Second Extraordinary General Meeting 20 April 2023 http://www.cninfo.com.cn

Announcement on the Continued Pledge of Shares held by

2023-033 22 April 2023 http://www.cninfo.com.cn

Shareholders

Announcement on Application for Resumption of Review of Asset

2023-034 Purchase Through Issuance of Shares and Cash Payments and Related 25 April 2023 http://www.cninfo.com.cn

Party Transaction

Announcement on Receiving the Notice of Resumption of Review from

2023-035 26 April 2023 http://www.cninfo.com.cn

the Shenzhen Stock Exchange

Announcement on Signing a Strategic Cooperation Agreement with

2023-036 26 April 2023 http://www.cninfo.com.cn

China Construction Bank Shandong Branch

Announcement on the Meeting Arrangements for the Review of Asset

Purchase Through Issuance of Shares and Cash Payments and Related

2023-037 26 April 2023 http://www.cninfo.com.cn

Party Transaction by the Listing Review Center of the Shenzhen Stock

Exchange

Announcement on Receiving the Opinion Implementation Letter from

2023-038 28 April 2023 http://www.cninfo.com.cn

the Listing Review Center of the Shenzhen Stock Exchange

Announcement on Resolutions of the Fifth Meeting of the Tenth

2023-039 29 April 2023 http://www.cninfo.com.cn

Session of the Board of Directors

Announcement on Resolutions of the Fifth

2023-040 Meeting of the Tenth Session of the Supervisory 29 April 2023 http://www.cninfo.com.cn

Committee

2023-041 2023 First Quarterly Report 29 April 2023 http://www.cninfo.com.cn

Announcement on Signing of the Agreement on the Recovery of State-

2023-042 29 April 2023 http://www.cninfo.com.cn

owned Construction Land Use Right signed by Wuhan Chenming

Announcement on Resolutions of the 2023 Second Extraordinary

2023-043 9 May 2023 http://www.cninfo.com.cn

General Meeting

2023-044 Announcement on Resolutions of 2022 Annual General Meeting 13 May 2023 http://www.cninfo.com.cn

92023 Annual Report Summary of Shandong Chenming Paper Holdings Limited

Announcement on Safety Accidents Occurred by the Slurry Residue

2023-045 25 May 2023 http://www.cninfo.com.cn

Outsourcing Entity of a Subsidiary

Announcement on Resolutions of the Eighth Extraordinary Meeting of

2023-046 30 June 2023 http://www.cninfo.com.cn

the Tenth Session of the Board of Directors

Announcement on Resolutions of the Fourth Extraordinary Meeting of

2023-047 30 June 2023 http://www.cninfo.com.cn

the Tenth Session of the Supervisory Committee

Announcement on Termination and Withdrawal of Application

2023-048 Documents for Asset Purchase Through Issuance of Shares and Cash 30 June 2023 http://www.cninfo.com.cn

Payments

Announcement on Completion of Payment for 2017 First Tranche of

2023-049 15 July 2023 http://www.cninfo.com.cn

Medium-term Notes

Announcement on Self-Inspection Report of Insider Trading in Respect

2023-050 of the Termination of Share Issuance and Cash Payments for Asset 15 July 2023 http://www.cninfo.com.cn

Purchase

2023-051 2023 Interim Results Forecast 15 July 2023 http://www.cninfo.com.cn

Announcement on the Continued Pledge of Shares held by

2023-052 15 July 2023 http://www.cninfo.com.cn

Shareholders

Announcement on Resolutions of the Ninth Extraordinary Meeting of

2023-053 18 July 2023 http://www.cninfo.com.cn

the Tenth Session of the Board of Directors

Announcement on Resolutions of the Fifth Extraordinary Meeting of

2023-054 18 July 2023 http://www.cninfo.com.cn

the Tenth Session of the Supervisory Committee

Announcement on Failing to Fulfil the Unlocking Conditions for the

2023-055 Second Unlocking Period Under the 2020 Restricted A Share Incentive 18 July 2023 http://www.cninfo.com.cn

Scheme and Repurchase and Cancellation of Certain Restricted Shares

Review Opinions on the Unlocking Conditions for the Second

Unlocking Period Under the 2020 Restricted A Share Incentive Scheme

2023-056 18 July 2023 http://www.cninfo.com.cn

and Repurchase and Cancellation of Certain Restricted Shares of the

Supervisory Committee

Announcement on Repurchase and Cancellation of Certain Restricted

2023-057 18 July 2023 http://www.cninfo.com.cn

Shares and Notice to Creditors

Announcement on Risks in Relation to the Ownership of B Shares and

2023-058 18 July 2023 http://www.cninfo.com.cn

H Shares Held by the Controlling Shareholder

2023-059 Announcement on the Release of Pledge of Shareholders’ Shares 26 July 2023 http://www.cninfo.com.cn

2023-060 Announcement on Continued Pledge of Shares held by Shareholders 29 July 2023 http://www.cninfo.com.cn

2023-061 Announcement on Continued Pledge of Shares held by Shareholders 11 August 2023 http://www.cninfo.com.cn

2023-062 Announcement on Update on Winding-Up Petition 19 August 2023 http://www.cninfo.com.cn

2023-063 Announcement on Pledge of Shareholders’ Shares 29 August 2023 http://www.cninfo.com.cn

Announcement of Resolutions of the Board of Directors on Interim

2023-064 31 August 2023 http://www.cninfo.com.cn

Report

Announcement of Resolutions of the Supervisory Committee on

2023-065 31 August 2023 http://www.cninfo.com.cn

Interim Report

2023-066 2023 Interim Report Summary 31 August 2023 http://www.cninfo.com.cn

Announcement on Resolutions of the Tenth Extraordinary Meeting of

2023-067 9 September 2023 http://www.cninfo.com.cn

the Tenth Session of the Board of Directors

Announcement on Partial Disposal of Equity Interest in Wuhan

2023-068 9 September 2023 http://www.cninfo.com.cn

Chenming

Announcement on Provision of External Financial Assistance upon the

2023-069 9 September 2023 http://www.cninfo.com.cn

Disposal of Equity Interest in Wuhan Chenming

2023-070 Notice of 2023 Third Extraordinary General Meeting 9 September 2023 http://www.cninfo.com.cn

Announcement on Resolutions of the Eleventh Extraordinary Meeting

2023-071 21 September 2023 http://www.cninfo.com.cn

of the Tenth Session of the Board of Directors

Announcement on Capital Increase and Introduction of Strategic

2023-072 21 September 2023 http://www.cninfo.com.cn

Investors of a Majority-owned Subsidiary

Announcement on Resolution of the 2023 Third Extraordinary General

2023-073 27 September 2023 http://www.cninfo.com.cn

Meeting

Announcement on Resolutions of the Twelfth Extraordinary Meeting of

2023-074 9 October 2023 http://www.cninfo.com.cn

the Tenth Session of the Board of Directors

2023-075 Announcement on Change of General Manager of the Company 9 October 2023 http://www.cninfo.com.cn

2023-076 2023 Third Quarterly Report 31 October 2023 http://www.cninfo.com.cn

2023-077 Announcement on Continued Pledge of Shares held by Shareholders 4 November 2023 http://www.cninfo.com.cn

Announcement on Completion of Repurchase and Cancellation of

2023-078 23 November 2023 http://www.cninfo.com.cn

Certain Restricted Shares

2023-079 Announcement on Continued Pledge of Shares held by Shareholders 25 November 2023 http://www.cninfo.com.cn

Announcement on Resolutions of the Thirteenth Extraordinary Meeting

2023-080 29 November 2023 http://www.cninfo.com.cn

of the Tenth Session of the Board of Directors

102023 Annual Report Summary of Shandong Chenming Paper Holdings Limited

2023-081 Announcement on the Disposal of Equity Interest in Investee 29 November 2023 http://www.cninfo.com.cn

Announcement on Adjustment to Amount of Guarantee Between

2023-082 15 December 2023 http://www.cninfo.com.cn

Subsidiaries

2023-083 Announcement on Pledge of Shareholders’ Shares 22 December 2023 http://www.cninfo.com.cn

Announcement on Progress of the Disposal of Equity Interest in

2023-084 27 December 2023 http://www.cninfo.com.cn

Investee

2023-085 Announcement on Pledge of Shareholders’ Shares 30 December 2023 http://www.cninfo.com.cn

The Board of Shandong Chenming Paper Holdings Limited

28 March 2024

11