2023 Interim Report Summary of Shandong Chenming Paper Holdings Limited

Stock code: 000488 200488 Stock abbreviation: Chenming Paper Chenming B Announcement No.:2023-066

2023 Interim Report Summary of

Shandong Chenming Paper Holdings Limited

I. IMPORTANT NOTICE

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

financial position and plan for further development investors should carefully read the text of the interim 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 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 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 any changes (if

None

any)

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

Name Yuan Xikun Chu Hon Leung

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

Correspondence address

Shouguang City Shandong Province Hong Kong

Telephone 0536-2158008 00852-21629600

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

2. Major financial data and financial indicators

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

□ Yes □ No

The corresponding Increase/decrease for the reporting

The reporting

period of the prior period as compared to the

period

year corresponding period of the prior year

Revenue (RMB) 12564962781.31 16676428365.83 -24.65%

Net profit attributable to shareholders of the

-688080164.10230141463.76-398.98%

Company (RMB)

Net profit after extraordinary gains or losses

-811839217.49173407927.13-568.17%

attributable to shareholders of the Company

12023 Interim Report Summary of Shandong Chenming Paper Holdings Limited

(RMB)

Net cash flows from operating activities

1783087747.59998264209.4578.62%

(RMB)

Basic earnings per share (RMB per share) -0.250 0.064 -490.63%

Diluted earnings per share (RMB per share) -0.250 0.064 -490.63%

Rate of return on weighted average net assets -4.15% 1.02% Decrease by 5.17 percentage points

Increase/decrease as at the end of the

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

reporting period as compared to the

reporting period prior year

end of the prior year

Total assets (RMB) 82652860756.58 84301017409.62 -1.96%

Net assets attributable to shareholders of the

18287406923.9019084565494.92-4.18%

Company (RMB)

Data specification: The net profit attributable to shareholders of the Company does not exclude the effect of the interest

payment deferred and accumulated to subsequent periods for Perpetual Bonds. When calculating financial indicators such as

earnings per share and rate of return on weighted average net assets the interest on Perpetual Bonds of RMB44481369.86 during

the reporting period is deducted.

3. Share capital and shareholders

Unit: Shares

Total number of ordinary 146991 of which 125210 were holders Total number of holders of preference

shareholders as at the end of the of A shares 21454 were holders of B shares with restored voting right as at 0

reporting period shares and 327 were holders of H shares the end of the reporting period (if any)

Shareholdings of top 10 shareholders

Share pledged marked

Percentage Number of

Number of or locked-up

Name of shareholder Nature of shareholder of restricted

shares held Status of

shareholding shares held Number

shares

CHENMING HOLDINGS State-owned legal

15.35% 457322919 0 Pledged 247040000

COMPANY LIMITED person

HKSCC NOMINEES LIMITED Overseas legal person 12.53% 373440375 0

CHENMING HOLDINGS (HONG

Overseas legal person 12.22% 364131563 0

KONG) LIMITED(Note 1)

Hong Zejun Domestic natural person 3.02% 90000000 0

Chen Hongguo Domestic natural person 1.04% 31080044 23310033

SHANDONG SUN HOLDINGS Domestic non-state-

0.84%249871170

GROUP CO. LTD. owned legal person

CHINA MERCHANTS

Overseas legal person 0.58% 17378201 0

SECURITIES (HK) CO. LIMITED

HONG KONG SECURITIES

Overseas legal person 0.54% 15968039 0

CLEARING COMPANY LIMITED

Du Haibin Domestic natural person 0.53% 15766502 0

VANGUARD EMERGING

Overseas legal person 0.50% 14852146 0

MARKETS STOCK INDEX FUND

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

Related party relationship or acting

state-owned legal person; A shareholder Chen Hongguo is the legal representative and chairman

in concert among the above

of Chenming Holdings Company Limited. Save for the above it is not aware that any other

shareholders

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;

Securities margin trading of Hong Zejun held 90000000 RMB ordinary shares of which 5.800.000 shares were held through

shareholders ordinary account and 84200000 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 are 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

22023 Interim Report Summary of Shandong Chenming Paper Holdings Limited

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.

4. Change of controlling shareholders or beneficial controllers

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

There was no shareholding by holders of preference shares of the Company during the reporting period.

6. Bonds subsisting as at the date of approval of the interim report

□ Applicable □ Not applicable

(1) Basic information on bonds

Outstanding

Issue amount of the Interest

Name of bond Bond abbreviation Bond code Maturity date

date bonds rate

(RMB’0000)

2017 first tranche of medium-term notes of 17 Lu Chenming 11 July

101779001 12 July 2023 100000.00 8.97%

Shandong Chenming Paper Holdings Limited MTN001 2017

Other explanations:According to the “Prospectus of the 2017 First Tranche of Medium-term Notes of Shandong Chenming Paper HoldingsLimited” “17 Lu Chenming MTN001” is subject to the issuer’s redemption option. On 11 May 2023 the Company published the

Announcement on the Exercise of the Redemption Option of the 2017 First Tranche of Medium-term Notes and the

Announcement on the Redemption of the 2017 First Tranche of Medium-term Notes on Shanghai Clearing House

(www.shclearing.com) and Chinamoney (www.chinamoney.com.cn). The Company chose to redeem “17 Lu Chenming MTN001”

in full and completed the payment of the principal and interest on 12 July 2023. To date all the bonds of the Company have been

redeemed.

(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

Gearing ratio 72.28% 71.85%

Current ratio 62.61% 63.04%

Quick ratio 49.20% 49.90%

Item The reporting period The corresponding period of the prior year

Net profit after extraordinary gains or losses -81183.92 17340.79

EBITDA interest coverage ratio 1.36 2.72

Interest coverage ratio -0.09 1.33

Cash interest coverage ratio 2.98 2.11

32023 Interim Report Summary of Shandong Chenming Paper Holdings Limited

III. Matters of significance

1. Entering into the Strategic Cooperation Agreement with China Construction Bank Shandong Branch

On 24 April 2023 The Company entered into the Strategic Cooperation Agreement with China Construction Bank Co. Ltd.Shandong Branch (hereinafter referred to as “CCB Shandong”) in which both parties agreed to conduct comprehensive cooperatio n

in the commercial banking and investment banking business provided that laws and regulations regulatory requirements internal

risk management system and relevant business operation procedures of CCB Shandong are complied internal approval from CCB

Shandong is obtained and credit conditions are met. After entering into the Agreement Shandong Construction Bank will be able to

fully utilise its service resources to prioritise providing comprehensive financial services to the Company and its subsidiaries which

will help the Company further broaden financing channels optimise capital structure enhance capital strength and achieve sound

development by relying on the high-quality resources and platforms of large state-owned commercial banks.For details please refer to the relevant announcement disclosed by the Company on Cninfo on 26 April 2023 (announcement

number: 2023-036) and the overseas regulatory announcement disclosed by the Company on the website of Hong Kong Stock

Exchange on 25 April 2023.

2. Repayment of the“18 Chenming Bond 01”of RMB350 million on schedule and completion of delisting

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 "First Tranche ofCorporate 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.

3. Proposed full redemption of perpetual bonds of RMB1 billion

On 11 July 2017 the Company issued “17 Lu Chenming MTN001” amounting to RMB1 billion with a term of 3+N. According

to the “Prospectus of the Company’s 2017 first tranche of medium-term notes” “17 Lu Chenming MTN001” is subject to the issuer’s

redemption option. The Company proposed to redeem the RMB1 billion perpetual bonds in full. The principal and interest payment

on 12 July 2023 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 Shanghai Clearing (www.shclearing.com)

and China Money (www.chinamoney.com.cn) on 11 May 2023.

4. 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

intends to acquire 0.22% general partnership interest in Chenrong Fund held by Chenming (Qingdao) Asset Management Co. Ltd.’s

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 Purchase throughthe 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 announcement 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 announcement disclosed by the

Company on the website of Hong Kong Stock Exchange on 27 February 2023 15 March 2023 and 29 June 2023.The Board of Shandong Chenming Paper Holdings Limited

30 August 2023

4