Stock code: 000488 200488 Stock abbreviation: Chenming Paper Chenming B Announcement No.:2020-076

2020 Interim Report Summary of

SHANDONG CHENMING PAPER HOLDINGS LIMITED

1. IMPORTANT NOTICE

This interim report summary is extracted from the text of the interim report. For the full understanding of the

operating results financial situation and plan for future development of the Company investors should read the

full version of the interim report carefully published on the media designated by the CSRC and the website of The

Stock Exchange of Hong Kong Limited.Notice of non-standard auditor’s opinion

□ Applicable √ Not applicable

A proposed profit distribution plan on ordinary shares 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 plans not to distribute cash dividends or bonus shares or convert capital reserve into share capital.

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

the Board

□ Applicable √ Not applicable

II. BASIC IMFORMATION ON THE COMPANY

1. Company profile

Stock abbreviation晨鳴紙業

Stock code

000488

晨鳴B 200488

晨鳴優01 140003

晨鳴優02 140004

晨鳴優03 140005

Stock exchanges on which the shares are listed Shenzhen Stock Exchange

Stock abbreviation Chenming Paper Stock code 01812

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

Legal name in Chinese of the Company 山東晨鳴紙業集團股份有限公司

Legal short name in Chinese of the Company 晨鳴紙業

Legal name in English of the Company (if any) SHANDONG CHENMING PAPER HOLDINGS LIMITED

Legal short name in English of the Company (if

any)

SCPH

Legal representative of the Company Chen Hongguo

2. Major accounting data and financial indicators

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

□ Yes √ No

The reporting

period

The

corresponding

period of the prior

year

Increase/decrease for

the reporting period as

compared to the

corresponding period

of the prior year

Revenue (RMB) 13599805765.86 13348648113.70 1.88%

Net profit attributable to shareholders of the

Company (RMB)

516326703.48 509795572.29 1.28%

Net profit after extraordinary gains or losses

attributable to shareholders of the Company

(RMB)

67882116.23 303144996.21 -77.61%

Net cash flows from operating activities (RMB) 2327033784.68 2699770891.69 -13.81%

Basic earnings per share (RMB per share) 0.051 0.013 292.31%

Diluted earnings per share (RMB per share) 0.051 0.013 292.31%

Rate of return on weighted average net assets 0.84% 0.21%

Increase by 0.63

percentage point

As at the end of

the reporting

period

As at the end of

the prior year

Increase/decrease as at

the end of the reporting

period as compared to

the end of the prior

year

Total assets (RMB) 99034079672.06 97958909935.15 1.10%

Net assets attributable to shareholders of the

Company (RMB)

24907632671.76 25169743863.75 -1.04%

Data description of basic earnings per share diluted earnings per share and rate of return on weighted average net

assets:

Net profit attributable to shareholders of the Company does not exclude the effect of interest on perpetual

bonds and the dividends on preference shares paid and declared to be paid. When calculating financial indicators

such as earnings per share and the rate of return on weighted average net assets the interest on perpetual bonds

from 1 January 2020 to 30 June 2020 of RMB96734246.58 and the dividend on preference shares paid and

declared to be paid in 2020 of RMB270776073.42 are deducted.

3. Total number of shareholders and shareholdings

Unit: share

Total number of ordinary

shareholders as at the end

of the reporting period

109060 of which 88863 were

holders of A shares 19834 were

holders of B shares and 363 were

holders of H shares

Total number of holders of

preference shares with restored

voting right as at the end of the

reporting period (if any)

0

Shareholdings of ordinary shareholders interested in more than 5% of the shares of the Company or Top 10

ordinary shareholders

Name of shareholder Nature of Percentage Number of Changes Number Number Share pledged or

shareholder of

shareholdi

ng

shares held

at the end of

the reporting

period

(increase

or

decrease)

during the

reporting

period

of

restricted

shares

held

of

non-restr

ict shares

held

locked-up

Statu

s of

share

s

Number

CHENMING

HOLDINGS COMPANY

LIMITED

State-owne

d legal

person

14.93% 445396128

Pledg

e

32270000

0

HKSCC NOMINEES

LIMITED

Overseas

legal

person

12.51% 373325625 161750

CHENMING

HOLDINGS (HONG

KONG) LIMITED

Overseas

legal

person

12.20% 364131563

CENTRAL HUIJIN

ASSET

MANAGEMENT LTD.

State-owne

d legal

person

2.02% 60206850

Chen Hongguo

Domestic

natural

person

1.04% 31080044

2000000

0

283100

33

277001

1

HONG KONG

SECURITIES

CLEARING COMPANY

LIMITED

Overseas

legal

person

0.79% 23434111

1019564

8

VANGUARD TOTAL

INTERNATIONAL

STOCK INDEX FUND

Overseas

legal

person

0.49% 14603170 1988000

VANGUARD

EMERGING MARKETS

STOCK INDEX FUND

Overseas

legal

person

0.44% 13121946 209589

Chen Suiqiang

Domestic

natural

person

0.43% 12800000 1789800

NATIONAL SOCIAL

SECURITY FUND 418

Others 0.42% 12633902 9427651

Related party relationship or acting in

concert among the above shareholders

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

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

Shouguang Chenming Holdings Company Limited which is a state-owned

legal person. A shareholder Chen Hongguo is the legal representative

chairman and general manager of 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.Other explanation:

Zhitong Certified Public Accountants issued the capital verification report

on June 28 2020 examined the subscription and contribution of A-share

restricted stock equity incentive plan of the company up to June 23 2020

and determined that the total share capital of the company has changed to

2984208200 shares.

On July 15 2020 79600000 restricted shares granted to the incentive

personnel were issued and listed and the number of shares held by Mr.

Chen Hongguo became 31080044.

Shareholdings of the top ten ordinary shareholders of non-restricted shares

Name of shareholder

Number of

non-restricted

ordinary shares held

as at the end of the

reporting period

Class of shares

Class of shares Number

CHENMING HOLDINGS COMPANY LIMITED 445396128

RMB ordinary

shares

445396128

HKSCC NOMINEES LIMITED 373325625

Domestic listed

foreign shares

373325625

CHENMING HOLDINGS (HONG KONG) LIMITED 364131563

Domestic listed

foreign shares

210717563

Overseas listed

foreign shares

153414000

CENTRAL HUIJIN ASSET MANAGEMENT LTD. 60206850

RMB ordinary

shares

60206850

HONG KONG SECURITIES CLEARING COMPANY

LIMITED

23434111

RMB ordinary

shares

23434111

VANGUARD TOTAL INTERNATIONAL STOCK

INDEX FUND

14603170

Domestic listed

foreign shares

14603170

VANGUARD EMERGING MARKETS STOCK INDEX

FUND

13121946

Domestic listed

foreign shares

13121946

Chen Suiqiang 12800000

RMB ordinary

shares

12800000

NATIONAL SOCIAL SECURITY FUND 418 12633902

RMB ordinary

shares

12633902

CITIC Securities Co. Ltd.-Social Security Fund 1106

Portfolio

10679175

RMB ordinary

shares

10679175

Related party relationship or acting

in concert among the top ten

ordinary shareholders of non-

restricted shares and between the

top ten ordinary shareholders of

non-restricted shares and the top ten

ordinary shareholders

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

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

Shouguang Chenming Holdings Company Limited which is a state-owned

legal 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.Securities margin trading of top 10

ordinary shareholders if any

Chenming Holdings Company Limited held 445396128 RMB ordinary

shares of which 402196128 shares were held through ordinary account and

43200000 shares were held through credit guarantee security account.

Chen Suiqiang held 12800000 RMB ordinary shares of which 0 share was

held through ordinary account and 12800000 shares were held through

credit guarantee security account.

4. Change of controlling shareholders or beneficial controllers

The change of controlling shareholders during the reporting period

□ Applicable √ Not applicable

There was no change of controlling shareholders of the Company during the reporting period.

Change of beneficial controllers during the reporting period

□ Applicable √ Not applicable

There was no change of beneficial controllers of the Company during the reporting period.

5. Total number of holders of preference shares and the shareholdings of top ten holders of preference

shares

√ Applicable □ Not applicable

Unit: share

Total number of shareholders of preference

shares as at the end of the reporting period

8

Holders holdings more than 5% of the preference shares or top ten holders of preference shares

Name of shareholder

Nature of

shareholder

Preference

shareholdi

ng

Number of

preference

shares held

at the end

of the

reporting

period

Changes

(increase

or

decrease)

during the

reporting

period

Share pledged or

locked-up

Status of

shares

Number

BEIJING YIBEN ZHONGXING

INVESTMENT MANAGEMENT

CO. LTD.

Domestic

non-state-owned

legal person

27.78% 12500000 0 Pledged 12500000

BANK OF COMMUNICATIONS

INTERNATIONAL TRUST CO.

LTD. – HUILI NO.167 SINGLE

CAPITAL TRUST

Others 22.44% 10100000 0

BANK OF COMMUNICATIONS

MINTERNATIONAL TRUST CO.

LTD. – HUILI NO.136 SINGLE

CAPITAL TRUST

Others 14.22% 6400000 0

QILU BANK CO. LTD. – QILU

BANK QUANXIN WEALTH

MANAGEMENT PRODUCT

SERIES

Others 13.33% 6000000 0

HENGFENG BANK CO. LTD.

Domestic

non-state-owned

legal person

11.11% 5000000 0

SHANGHAI STATE-OWNED

ASSETS OPERATION CO. LTD.

Domestic

non-state-owned

legal person

8.59% 3867000 2867000

LEAD CAPITAL MANAGEMENT

CO. LTD.- LEAD CAPITAL - LI

DE YING NO. 1 ASSET

MANAGEMENT PLAN

Others 1.51% 680000 680000

LEAD CAPITAL MANAGEMENT

CO. LTD. - LEAD CAPITAL- LI

Others 1.01% 453000 453000

DE YING NO. 2 ASSET

MANAGEMENT PLAN

Description of different requirements on other terms of

preference shares held other than dividend distribution

and residual property distribution (Note 4)

Nil

Related party relationship or acting in concert among

the top ten holders of preference shares and between

the top ten holders of preference shares and the top ten

ordinary shareholdersThe aforesaid holders of preference shares “BANK OF

COMMUNICATIONS INTERNATIONAL TRUST CO.

LTD. – HUILI NO.167 SINGLE CAPITAL TRUST” and

“BANK OF COMMUNICATIONS INTERNATIONALTRUST CO. LTD. – HUILI NO.136 SINGLE CAPITALTRUST” are persons acting in concert and “LEAD

CAPITAL MANAGEMENT CO. LTD.- LEAD

CAPITAL - LI DE YING NO. 1 ASSET

MANAGEMENT PLAN” and “LEAD CAPITAL

MANAGEMENT CO. LTD. - LEAD CAPITAL- LI DEYING NO. 2 ASSET MANAGEMENT PLAN” are

persons acting in concert. Save for the above it is not

aware that whether the remaining holders of preference

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

that the top ten holders of preference shares and the top

ten ordinary shareholders are related to each other.

6. Information on corporate bonds

Are there any corporate bonds offered to the public by the Company and listed on stock exchanges which do not

become due as at the date of approval of the interim report or overdue but not fully settled?

Yes

(1) Basic information on corporate bonds

Name of bond

Bond

abbreviatio

n

Bond code Issue date Maturity date

Outstanding

amount of

the bonds

(RMB’0000)

Interest

rate

Payment method

The public

issuance of the

corporate bonds

of Shandong

Chenming Paper

Holdings

Limited to

qualified

investors in 2017

(tranche I)

17

Chenming

Bond 01

112570

17 August

2017

21 August

2022

9000 7.28%

Interest is paid

annually. The

principal amount

and the last

interest payment

will be paid on the

maturity date.The public

issuance of the

corporate bonds

of Shandong

Chenming Paper

18

Chenming

Bond 01

112641

29 March

2018

2 April 2023 35000 7.60%

Interest is paid

annually. The

principal amount

and the last

interest payment

Holdings

Limited to

qualified

investors in 2018

(tranche I)

will be paid on the

maturity date.Stock exchange on which

corporate bonds are listed or

transferred

Shenzhen Stock Exchange

Investor eligibility

arrangement

Online subscription: Public investors with A share security account opened under

China Securities Depository and Clearing Co. Ltd. Offline subscription:

Institutional investors with A share security account opened under China Securities

Depository and Clearing Co. Ltd.

Interest payment of corporate

bonds during the reporting

period

The payment of principal and interest for the bond repurchase portion of 18

Chenming Bond 01 and the resale of the bonds was completed during the reporting

period. The number of the resale was 3500000 and the average resale price was

RMB100 each. For details please refer to the relevant announcements as disclosed

on 19 February 11 February 25 February 28 February 31 March 30 April and 1

June 2020.Performance of relevant

terms during the reporting

period for special terms such

as issuer or investor option

and interchangeable for

corporate bonds (if any)

Both 17 Chenming Bond 01 and 18 Chenming Bond 01 attach with options for the

issuer to adjust the coupon rate and for investors to resell. The issuer has the right to

determine the adjustment to the coupon rate for the following 3 years at the end of

the second year and the adjustment to the coupon rate for the following year as the

end of the fourth year. After issuing the announcement on whether the coupon rate

of the relevant tranche of bonds will be adjusted and the range of adjustment the

investors have the right to register for reselling during the period as announced to

resell all or part of the relevant tranche of bonds held to the issuer at par value.

(2) Financial indicators as at the end of the reporting period

Unit: RMB’0000

Item

As at the end of the

reporting period

As at the end of the

prior year

Increase/decrease as at the end of the

reporting period as compared to the end

of the prior year

Gearing ratio 82.81% 85.30% -2.49%

Current ratio 73.49% 73.11% 0.38%

Quick ratio 72.80% 76.24% -3.44%

The reporting period

The corresponding

period of the prior

year

Increase/decrease of the reporting

period as compared to corresponding

period of the prior year

EBITDA interest coverage

ratio

2.75 2.20 25%

Loans payment ratio 100.00% 100.00% 0.00%

Interest payment ratio 100.00% 100.00% 0.00%

Major reason for more than 30% in year-on-year change for the above accounting data and financial indicators:

√ Applicable □ Not applicable

EBITDA interest coverage ratio recorded an increase of 25% mainly due to the year-on-year decrease of interest

expenses during the reporting period.III. Discussion and Analysis of Operations

1. Overview of operations during the reporting period

Whether the Company needs to comply with the disclosure requirements of specific industries

No

During the reporting period the paper making industry was greatly affected by the epidemic the paper

industry was in short supply of raw materials logistics was blocked and the operation and production resumption

rate was low within the industry. The overseas epidemic outbreak suppressed the overseas demand for paper

products in the paper industry. In addition the domestic demand for paper had been sluggish since the epidemic.The downward pressure on the prices of major paper types had increased. There was a significant decline in the

economic benefit of the paper making industry as a whole.Wuhan Chenming and Huanggang Chenming subsidiaries of the Company were at the centre of the epidemic.Their suspension of production to fight against the epidemic affected the overall performance of the Company to a

certain extent. However other major production bases of the Company not only did their best to prevent and control

the epidemic but also achieved production at close to full capacity gradually demonstrating the benefits of pulp

and paper integration. Various operating indicators improved during the first half of the year as compared to the

corresponding period of last year including completing pulp production of 1.66 million tonnes and machine-made

paper production of 2.75 million tonnes representing a year-on-year increase of 59.70% and 27.90% respectively;

achieving revenue of RMB13.6 billion representing a year-on-year increase of 1.88%; and achieving net profit of

RMB516 million steadily increasing from the corresponding period of last year.

In the second half of the year with the epidemic further under control the economy is expected to gradually

regain its vitality market demand will gradually rebound and the prices of the Company’s major paper types will

steadily rise. Coupled with the gradual recovery of wood pulp market prices the core advantage of pulp and paper

balance of the Company will be further brought into play. The performance of the Company will significantly

improve with the recovery of the national economy and market conditions.The major financial data of the Company during the reporting period are as follows:

Item

During the

reporting period

During the

corresponding

period of the prior

year

Increase/

decrease

year on

year

Reason for the change

Revenue 13599805765.86 13348648113.70 1.88%

Operating costs 10185300033.31 9754097799.82 4.42%

Selling and

distribution

expenses

652742420.35 590584957.47 10.52%

Transportation expenses increased year

on year during the reporting period.

Administrative

expenses

491987245.33 562417399.25 -12.52%

Depreciation expenses decreased year

on year during the reporting period.Research and

development

expense

548557146.89 431483716.06 27.13%

The Company increased efforts in

research and development during the

reporting period.

Finance expenses 1346217562.46 1516848723.80 -11.25%

Income expenses decreased year on

year during the reporting period.Net cash flows

from operating

activities

2327033784.68 2699770891.69 -13.81%

Net recovery of the leasing company

decreased year on year during the

reporting period.Net cash flows 94823534.32 -2094526965.30 104.53% The payment for the equity interest in

from investing

activities

Nanyue Bank was made during the

corresponding period of last year.Net cash flows

from financing

activities

-3094384197.10 -780976710.04 -296.22%

The Company reduced its debts during

the reporting period.

2. Events relating to financial reporting

(1) Reason for changes in accounting policies accounting estimates and accounting methods as compared to

the financial report for the prior year

□ Applicable √ Not applicable

There was no change in accounting policies accounting estimates and accounting methods of the Company during

the reporting period.

(2) Reason for retrospective restatement to correct major accounting errors during the reporting period

□ Applicable √ Not applicable

No retrospective restatement was made to correct major accounting errors during the reporting period.

(3) Reason for changes in scope of the consolidated financial statements as compared to the financial report

for the prior accounting period

√ Applicable □ Not applicable

During the reporting period two companies were removed from the scope of consolidation namely Qingdao

Chenming International Logistics Co. Ltd. and Shouguang Chenming Art Paper Co. Ltd; and two companies

were added into the scope of consolidation namely Chenming (Overseas) Co. Ltd. and Chenming (Singapore)

Co. Ltd.