| Stock code: 000488, 200488 | Stock abbreviation: Chenming Paper Chenming B | Announcement No.:2023-018 |
2022 Annual Report Summary ofShandong Chenming Paper Holdings Limited
I. IMPORTANT NOTICEThis 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 themedia 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 periodwas considered and passed by the Board
□ Applicable ? Not applicable
The Company proposes not to distribute cash dividend, issue bonus share, or capitalise from capital reservesA 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
| Stock abbreviation | 晨鸣纸业 | Stock code | 000488 |
| 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 | ||
| Contact persons and contact methods | Secretary to the Board | Hong Kong Company Secretary | |
| Name | Yuan Xikun | Chu Hon Leung | |
| Correspondence address | No.2199East Nongsheng Road, Shouguang City, Shandong Province | 22nd Floor, World Wide House, Central, Hong Kong | |
| Facsimile | 0536-2158977 | 00852-25010028 | |
| Telephone | 0536-2158008 | 00852-21629600 | |
| Email address | chenmmingpaper@163.com | liamchu@li-partners.com | |
2. Overview of principle activities or products during the reporting periodThe Company is a large modern conglomerate principally engaged in pulp production and paper making, and the machine-made paper business is the major source of revenue and profit of the Company. At present, the Company has production bases inShandong, Guangdong, Jiangxi, Hubei,Jilin and other places, with annual pulp and paper production capacity of more than 11million tonnes. It is the first domestic paper making enterprise that achieves a balance between pulp production and paper makingcapacity. During the reporting period, continuously taking “revitalising the Chinese papermaking industry” as its mission, theCompany had been committed itself to implementing a pulp and paper integration strategy. It deepened the development of pulpproduction and papermaking, its major operation, and realised revenue of RMB32,004 million and net profit of RMB317 million.There was no significant change in the principal activities of the Company.
1. Products
The Company attaches great importance to technology research and development and brand benefits. Adopting the market-oriented approach, the Company adheres to technological innovation, continuously improves the level of technological researchand development and product service quality, develops green and low-carbon products with high technological content and highadded value, and comprehensively enhances the core competitiveness of products. At present, the Company has the largest andmost advanced pulping and papermaking production lines in the world, with machine-made paper products covering more than200 types in seven series, including culture paper, coated paper, white cardboard, copy paper, industrial paper, special paper, andhousehold paper. The Company owns “BIYUNTIAN”, “GOLDEN MINGYANG”, “CHENMING CLOUDY MIRROR”,“CHENMING CLOUDLY LION”, “CHENMING SNOW SHARK”, “CHENMING EAGLE”, “CHENMING GONGHAO”,“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 industry.During the reporting period, the Company was shortlisted for the list of “Top 500 Most Valuable Brands in China in 2022”and won the title of “2022 Shandong Province Science and Technology Leading Enterprise”. The main products of culture paper,coated paper and household paper were selected into the first batch of “Shandong’s Good Product” brand list, and its poplar coatedwhite cardboard, Xingzhilian tissue paper and Xingzhilian toilet paper had won the national “Green Design Products” award, fullydemonstrating the Company's excellent achievement in brand building and strong brand value.
| Category | Major brands and types | Major production companies | Range of application |
| Culture paper series | 1. “BIYUNTIAN”, “CLOUDY MIRROR”, “CLOUDY LEOPARD” and “YUNJIN” all-wood pulp offset paper and electrostatic base paper 2. “CLOUDY LION” and “CLOUDY CRANE” original white offset paper 3. “CLOUDY PINE” and “GREEN PINE” light weight paper 4. Blueprint paper, colour offset paper, pure texture paper, non-fluorescent offset paper, PE offset paper 5. Beige and high white book paper 6. Light weight coated paper | Shouguang Headquarters Zhanjiang Chenming Jilin Chenming | Printing publications, textbooks, magazines, covers, illustrations, notebooks, test papers, teaching materials, reference books, etc. |
| Coated paper series | 1. “SNOW SHARK” and “EAGLE” one-sided coated paper 2. “SNOW SHARK”, “EAGLE” and “RABBIT” double-sided coated paper 3. “EAGLE” and “RABBIT” matte coated paper | Shouguang Headquarters Shouguang Meilun | 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 high-end books, wall calendars, posters and so on, and suitable for suitable for high-speed sheet printing and high-speed rotary printing; 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 cardboard series | 1. White cardboard of “LIYA” series, white cardboard and ivory cardboard of “LIPIN” and “POPLAR” series, high bulk cardboard and ivory cardboard of “LIZZY” and “BAIYU” series, and super high bulk cardboard of “LIYING” and “BAIYU” series 2. Food package board of “LIYA” and “LIZZY” series 3. Coated cattle card and LIYA book card 4. Playcard paper board 5. Chenming cigarette cardboard | Shouguang Headquarters Jiangxi Chenming Zhanjiang Chenming | High-end gift boxes, cosmetics boxes, tags, shopping bags, publicity pamphlets, high-end postcards; cigarette package printing of medium and high quality; milk package, beverage package, disposable paper cups, milk tea cups, and noodle bowls. |
| Copy paper series | “GOLDEN MINGYANG” and “GOLDEN CHENMING” copy paper, “BOYA” and “BIYUNTIAN” copy paper, “MINGYANG”, “LUCKY CLOUDS”, “BOYANG” and “SHANYIN” copy paper, and “GONGHAO” and “TIANJIAN” copy paper | Shouguang Meilun Zhanjiang Chenming | Printing and copying business documents, training materials, and writing. |
| Industrial paper series | High-grade yellow anti-sticking base paper, ordinary yellow/white anti-sticking base paper and PE paper | Shouguang Headquarters Jiangxi Chenming Zhanjiang Chenming | Anti-stick base paper is mainly used for producing the paper base of stripping paper or anti-sticking base paper; Cast coated base paper is suitable for producing adhesive paper or playcard compound paper after coating. |
| Special paper series | Thermal paper and glassine paper | Shouguang Art Paper | High-grade adhesive backing paper for electronics, medicine, food, washing supplies, supermarket labels, double-sided tapes, etc. |
| Household paper series | Toilet paper, facial tissue, pocket tissue, napkin, paper towels and “XINGZHILIAN” | Shouguang Meilun | Daily toilet supplies; used in restaurants and other catering industries, and used in public toilets in hotels, guesthouses, and office buildings, and also suitable for home and other environment. |
2. Operation model
During the reporting period, the Company's business model did not underwent major changes.
(1) 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 continuousimprovement of the procurement information system, the Company has fully realised machine control management, and optimisedthe 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 Companyseeks sources and high-quality suppliers through industry exhibitions, on-site inspections and competitive factory research tostrengthen procurement at source and reduce procurement costs; and introduces a supplier competition mechanism by establishinga three-level joint review mechanism for suppliers and implementing a system of eliminating substandard suppliers, so as toimprove supply quality. Meanwhile, the Company actively cooperates with financial institutions and third parties in the supplychain financial business, and fully utilises the funds from contributing parties to lower procurement costs, deepen strategiccooperation and enhance supply chain competitiveness.
(2) 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 productionand vigorously carried out energy conservation and emission reduction, aiming to be a resource-saving and environmentallyfriendly 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, theCompany takes planned management as the focus and implements a hierarchical planned management model for the Group, theCompany, factories and workshops. Its production volume is determined based on the sales, its production is arrangedscientifically, and its inventories are under strict control. The Group has set up a production scheduling centre to monitor theoperation of the production lines of each subsidiary around the clock on a real-time basis, so as to ensure normal production. It hasactively built and promoted the MES management system, and realised the timely information transfer between the managementand the production control unit through bridging the gap between the ERP and DCS systems.
(3) Marketing model
The Company has always adhered to the marketing concept of “Good faith, Win-Win and Sharing” while wholeheartedlyserving its customers. The Company has a relatively mature sales network, and has set up specialised sales companies responsiblefor 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 matrixmanagement. The sales companies are divided into product companies of cultural paper series, coated paper series, whitecardboard series, electrostatic paper series, special paper series and household paper series according to product line. Each productcompany has its administrative district. A regional general manager is responsible for his/her administrative district, under whichbranch 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 informationsystems, the Company has realised It-based management. It has also established and improved the complaint handling system andcustomer satisfaction system to enhance the Company’s marketing management level.
(4) R&D Mode
The Company is market-oriented, and innovation is it driving force. It highly values technological R&D, and has formed avariety of R&D modes such as independent R&D, technology introduction, and industry university-research cooperation. Atpresent, the Company has a number of domestically leading innovative R&D platforms, including the national enterprisetechnology centre, the post-doctoral working station, the state certified CNAS pulp and paper testing centre, Shandong Pulp andPaper Making Engineering Lab and the Guangdong Pulp and Paper Production Technology Research Centre, which haveenhanced its independent innovation capabilities. Meanwhile, on the basis of introducing internationally advanced pulp and paperproduction lines and advanced technologies, the Company has made technological improvements and re-innovations, andestablished new standards for processes and product quality, forming distinctive core technologies. The Company also works hardon the following aspects: carrying out academic research with colleges and universities and R&D institutions such as QiluUniversity of Technology, Qingdao University of Science and Technology, Tianjin University of Science and Technology, andInstitute of Chemical Industry of Forest Products of the Chinese Academy of Forestry, introducing, digesting and absorbingscientific research and innovation achievements, accelerating the industrialisation of new and high technologies, optimisingproduct mix, and improving the competitiveness of its products in the market.
3. The position of the Company in the industry during the reporting period
The papermaking industry is a strategic and fundamental industry closely related to national economic and socialdevelopment. In 2022, the papermaking industry had a narrowing profit squeeze with declining prosperity due to a sharp rise in theprices of raw materials, power and logistics in the upstream market and the weak demand in the downstream market. According todata of the Ministry of Industry and Information Technology, total profit of papermaking and paper product enterprises abovedesignated size nationwide in 2022 was RMB62.11 billion, down nearly 30% year on year. According to data of the NationalBureau of Statistics, as of December 2022, the number of loss-making papermaking and paper product enterprises was 1,799,representing a year-on-year increase of 40.9%. In this context, the Company responded flexibly and stubbornly, and continued tomake profit amid difficulties, thereby showing its strong resilience.
As a leading player in the paper making industry of China, the Company has implemented the strategy of innovativeoperation, quickened its pace in growth driver replacement and led the way in full industry chain operation, and has emerged asthe only paper making enterprise in China to achieve capacity balance between pulp production and paper making. Currently, theCompany has the annual pulp and paper production capacity of over 11 million tonnes, tops the industry in its paper productvariety and ranks among the best in China in terms of the market share of its major products. During the reporting period, theCompany strove to implement its strategy of pulp and paper integration, with a coordinated development pattern further formedwith Shouguang in the north, Huanggang in the middle, and Zhanjiang in the south. The Company seized opportunities in overseasmarkets and improved its global sales network, thus significantly growing sales to overseas markets. The Company strengthenedits management, prevented and controlled risks, and laid the foundation for its sustainable development. The Company optimisedthe product structure, improved service quality, and strove to increase products’ added value, which further consolidated itsleading position in the industry. The Company had won awards such as “Top 500 Chinese Enterprises”, “Fortune China 500”
and “Top 10 Enterprises in the PRC Light Industry – Paper Sector”, which reflected the high recognition and full affirmationof the Company from all walks of life.
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
| As at the end of 2022 | As at the end of 2021 | Increase/decrease as at the end of the year compared to the end of the prior year | As at the end of 2020 | |
| Total assets | 84,301,017,409.62 | 82,869,661,681.08 | 1.73% | 91,575,457,828.62 |
| Net assets attributable to shareholders of the Company | 19,084,565,494.92 | 19,117,985,306.48 | -0.17% | 24,276,968,789.00 |
| 2022 | 2021 | Increase/decrease for the year as compared to the prior year | 2020 | |
| Revenue | 32,004,367,320.91 | 33,019,812,294.14 | -3.08% | 30,736,517,996.90 |
| Net profit attributable to shareholders of the Company | 189,290,120.82 | 2,065,513,108.71 | -90.84% | 1,712,029,078.52 |
| Net profit after extraordinary gains or losses attributable to shareholders of the Company | -361,459,377.16 | 1,743,876,537.12 | -120.73% | 1,119,103,808.75 |
| Net cash flows from operating activities | 3,449,824,242.37 | 8,581,888,192.64 | -59.80% | 11,259,802,676.28 |
| Basic earnings per share (RMB per share) | 0.03 | 0.56 | -94.64% | 0.36 |
| Diluted earnings per share (RMB per share) | 0.03 | 0.56 | -94.64% | 0.36 |
| Rate of return on weighted average net assets | 0.55% | 9.56% | Decreased by9.01 percentage points | 5.84% |
Data specification: The net profit attributable to shareholders of the Company does not exclude the effect of the interest paymentdeferred and accumulated to subsequent periods for Perpetual Bonds. When calculating financial indicators such as earnings pershare and rate of return on weighted average net assets, the interest on Perpetual Bonds of RMB89,700,000.00 during the reportingperiod is deducted.
(2) Key Major Accounting Data by Quarter
Unit: RMB
| Q1 | Q2 | Q3 | Q4 | |
| Revenue | 8,514,983,059.74 | 8,161,445,306.09 | 8,679,605,529.93 | 6,648,333,425.15 |
| Net profit attributable to shareholders of the Company | 113,917,827.90 | 116,223,635.86 | 10,434,396.87 | -51,285,739.81 |
| Net profit after extraordinary gains or losses attributable to shareholders of the Company | 99,637,959.12 | 73,769,968.01 | -18,272,552.33 | -516,594,751.96 |
| Net cash flows from operating activities | 222,704,964.47 | 775,559,244.98 | 150,935,364.72 | 2,300,624,668.20 |
Whether the above indicators or their aggregated amounts have any material difference with the respective amounts as disclosed inthe quarterly report or interim report
□ Yes ? No
4. Share capital and shareholders
(1) Table of the number of shareholders of ordinary shares and shareholders of preference shares with voting rightsrestored and shareholding of top ten shareholders
Unit: Shares
| Total number of ordinary shareholders as at the end of the reporting period | 156,799, of which 134,311 were holders of A shares, 22,159 were holders of B shares and 329 were holders of H shares | Total number of ordinary shareholders as at the end of the month prior to the publication date of this annual report | 156,371, of which 133,998 were holders of A shares, 22,044 were holders of B shares and 329 were holders of H shares | Total number of holders of Preference Shares with restored voting right as at the end of the reporting period | 0 | Total number of holders of Preference Shares with restored voting right as at the end of the month prior to the disclosure date of the annual report | 0 | |||
| Shareholdings of top 10 shareholders | ||||||||||
| Name of shareholders | Nature of shareholders | Percentage of shareholding | Number of shares held | Number of restricted shares held | Shares pledged or locked-up | |||||
| Status of shares | Number | |||||||||
| CHENMING HOLDINGS COMPANY LIMITED | State-owned legal person | 15.35% | 457,322,919 | 0 | Pledged | 251,440,000 | ||||
| HKSCC NOMINEES LIMITED | Overseas legal person | 12.53% | 373,388,625 | 0 | ||||||
| CHENMING HOLDINGS (HONG KONG) LIMITED | Overseas legal person | 12.22% | 364,131,563 | 0 | ||||||
| Hong Zejun | Domestic natural person | 2.57% | 76,700,000 | 0 | ||||||
| Chen Hongguo | Domestic natural person | 1.04% | 31,080,044 | 23,310,033 | ||||||
| SHANDONG SUN HOLDINGS GROUP CO., LTD. | Domestic non-state-owned legal person | 0.84% | 24,987,117 | 0 | ||||||
| HONG KONG SECURITIES CLEARING COMPANY LIMITED | Overseas legal person | 0.59% | 17,712,081 | 0 | ||||||
| VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | Overseas legal person | 0.50% | 14,771,945 | 0 | ||||||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | Overseas legal person | 0.49% | 14,688,346 | 0 | ||||||
| GUOTAI JUNAN SECURITIES (HONG KONG) LIMITED | Overseas legal person | 0.28% | 8,434,361 | 0 | ||||||
| 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, 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. | |||||||||
| Securities margin trading of shareholders | Chenming Holdings Company Limited held 457,322,919 RMB ordinary shares, of which 326,322,919 shares were held through ordinary account and 131,000,000 shares were held through credit guarantee security account; Hong Zejun held 76,700,000 RMB ordinary shares, of which no share was held through ordinary account and 76,700,000 shares were held through credit guarantee security account; Shandong Sun Holdings Group Co., Ltd. held 24,987,117 RMB ordinary shares, of which no share was held through ordinary account and 24,987,117 shares were held through credit guarantee security account. | |||||||||
(2) Total number of holders of Preference Shares of the Company and the shareholdings of the top ten holders ofPreference 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
5. Situation of bonds in existence on the date of approval of the annual report? Applicable □ Not applicable
(1) Basic information on the Bond
| Name of bond | Bond abbreviation | Bond code | Issue date | Maturity date | Outstanding amount of the bonds (RMB’0,000) | Interest rate |
| The public issuance of the Corporate Bonds of Shandong Chenming Paper Holdings Limited to qualified investors in 2018 (phase I) | 18 Chenming Bond 01 | 112641 | 29 March 2018 | 2 April 2023 | 35,000 | 6.50% |
| Interest payment for the corporate bonds during the reporting period | During the reporting period, the Company conducted the resale of “18 Chenming Bond 01” corporate bonds as agreed in the Prospectus. Bondholders of “18 Chenming Bond 01” could declare resale in whole or in part for “18 Chenming Bond 01” bonds they held on 28 February, 1 March, 2 March, 3 March and 4 March 2022. According to the data provided by the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, the amount of the “18 Chenming Bond 01” for this resale was 1,955,000.00, and the total amount of the resale was RMB195,500,000.00 (interests exclusive) with a remaining custodial amount of 1,545,000.00. On 6 April 2022, the Company completed the principal and interest payment for the resale of bonds in part and the interest payment for the remaining bonds in custody. From 8 April 2022 to 30 April 2022, the Company handled the resale of bonds to be resold in accordance with relevant regulations. The number of resale bonds completed was 1,955,000.00 at an average resale price of RMB100 per bond. Upon the completion of the resale, there were no bonds that had not been resold, and the remaining custodial amount of “18 Chenming Bond 01” was 3,500,000.00. | |||||
(2) Latest track rating of and rating movements of corporate bonds
On 26 May 2022, China Chengxin International Credit Rating Co., Ltd. (“China Chengxin International”) issued the Follow-up Rating Report (2022) with Respect to the Public Issuance of the Corporate Bonds of Shandong Chenming Paper HoldingsLimited to Qualified Investors in 2018 (phase I) (Xin Ping Wei Han Zi [2022] Gen Zong No. 0343). China Chengxin Internationaladjusted the issuer credit rating of the Company at AA+, the credit rating of “18 Chenming Bond 01” at AA+, and the negativerating outlook, to: the issuer credit rating of the Company at AA+ and the credit rating of “18 Chenming Bond 01” at AA+unchanged, and the issuer and debt credit ratings included in the credit rating watch list.
For further details, please refer to the Follow-up Rating Report (2022) with Respect to the Public Issuance of the CorporateBonds of Shandong Chenming Paper Holdings Limited to Qualified Investors in 2018 (phase I) disclosed on CNINFO on 26 May2022.
(3) Major accounting data and financial indicators of the Company over the past two years as at the end of the reportingperiod
Unit: RMB’0,000
| Item | 2022 | 2021 | Increase/decrease for the year as compared to the prior year |
| Gearing ratio | 71.85% | 72.76% | -0.91% |
| Net profit after extraordinary gains or losses | -36,145.94 | 174,387.65 | -120.73% |
| Proportion of EBITDA to total debts | 8.61% | 13.43% | -4.82% |
| Interest coverage ratio | 1.09 | 2.12 | -48.58% |
III. Matters of significance
1. Issuance of shares and asset purchase through cash payments
On 21 November 2022, the Company held the fourth extraordinary meeting of the tenth session of the Board and the secondextraordinary meeting of the tenth session of the Supervisory Committee, and considered and approved relevant resolutionsincluding the Resolution on Asset Purchase through Issuance of Shares and Cash Payment. The Company intended to acquire 1.19%equity interests in Shouguang Meilun (corresponding capital contribution of RMB57,210,526 to Shouguang Meilun) held byDongxing Investment and 44.44% limited partnership share in Chenrong Fund held by Chongqing Trust through issuance ofshares. Shandong Chenming Investment Co., Ltd., a wholly-owned subsidiary of the Company, intended to acquire 0.22% generalpartnership share in Chenrong held by Chenming (Qingdao) Asset Management Co., Ltd. (“Chenming Asset Management”)through cash payment. The type of shares issued by the Company for asset purchase was domestic-listed RMB ordinary shares (Ashares), with issue price of RMB4.42 per share. As of the end of the reporting period, the audit and evaluation on subject assetunder the transaction have not yet completed.
For details, please refer to the relevant announcements (announcement no.: 2022-084 and 2022-085) of the Companypublished on CNINFO on 22 November 2022.
2. Information disclosure index for 2022
| Announcement no. | Subject matter | Date of publication | Publication website and index |
| 2022-001 | Announcement on the Continued Pledge of Shares held by Shareholders | 15 January 2022 | http://www.cninfo.com.cn |
| 2022-002 | Announcement on the Recognition of the Company and its Subsidiaries as High and New Technology Enterprises | 11 February 2022 | http://www.cninfo.com.cn |
| 2022-003 | Announcement on the Development of Equipment Financing Business by a Subsidiary | 24 February 2022 | http://www.cninfo.com.cn |
| 2022-004 | The First Indicative Announcement on Adjustment of Coupon Rate of “18 Chenming Bond 01” and Implementation Measures for Resale by Investors | 25 February 2022 | http://www.cninfo.com.cn |
| 2022-005 | The Second Indicative Announcement on Adjustment of Coupon Rate of “18 Chenming Bond 01” and Implementation Measures for Resale by Investors | 1 March 2022 | http://www.cninfo.com.cn |
| 2022-006 | The Third Indicative Announcement on Adjustment of Coupon Rate of “18 Chenming Bond 01” and Implementation Measures for Resale by Investors | 3 March 2022 | http://www.cninfo.com.cn |
| 2022-007 | Announcement on Pledge of Shares and Partial Release of Pledge of Shares by Shareholders | 12 March 2022 | http://www.cninfo.com.cn |
| 2022-008 | Announcement on the Development of Equipment Financing Business by a Subsidiary | 14 March 2022 | http://www.cninfo.com.cn |
| 2022-009 | Announcement on the 2021 Annual Online Performance Briefing | 28 March 2022 | http://www.cninfo.com.cn |
| 2022-010 | Announcement on the Development of Equipment Financing Business by a Subsidiary | 29 March 2022 | http://www.cninfo.com.cn |
| 2022-011 | Announcement on Resolutions of the Twelfth Meeting of the Ninth Session of the Board of Directors | 31 March 2022 | http://www.cninfo.com.cn |
| 2022-012 | Announcement on Resolutions of the Twelfth Meeting of the Ninth Session of the Supervisory Committee | 31 March 2022 | http://www.cninfo.com.cn |
| 2022-013 | Notice of 2021 Annual General Meeting | 31 March 2022 | http://www.cninfo.com.cn |
| 2022-014 | 2021 Annual Report Summary | 31 March 2022 | http://www.cninfo.com.cn |
| 2022-015 | Special Statement on Securities Investment in 2021 | 31 March 2022 | http://www.cninfo.com.cn |
| 2022-016 | Announcement on Appointment of Auditor for 2022 | 31 March 2022 | http://www.cninfo.com.cn |
| 2022-017 | Announcement on the Expected Continuing Related Party Transaction in 2022 | 31 March 2022 | http://www.cninfo.com.cn |
| 2022-018 | Announcement on the Development of Equipment Financing Business | 31 March 2022 | http://www.cninfo.com.cn |
| 2022-019 | Announcement on Carrying out Factoring Business of Accounts Receivable | 31 March 2022 | http://www.cninfo.com.cn |
| 2022-020 | Announcement on Expected Provision of Guarantees to Subsidiaries for 2022 | 31 March 2022 | http://www.cninfo.com.cn |
| 2022-021 | Special Statement on the Proposed Non-Distribution of Profit for 2021 | 31 March 2022 | http://www.cninfo.com.cn |
| 2022-022 | Announcement on the Amendments to the Company’s Relevant Systems | 31 March 2022 | http://www.cninfo.com.cn |
| 2022-023 | Announcement on the Provision of External Guarantees | 31 March 2022 | http://www.cninfo.com.cn |
| 2022-024 | Announcement on Loan Transfer and Related Party Transaction | 31 March 2022 | http://www.cninfo.com.cn |
| 2022-025 | Announcement on Results of Resale by Bondholders of “18 Chenming Bond 01” | 31 March 2022 | http://www.cninfo.com.cn |
| 2022-026 | Shandong Chenming Paper Holdings Limited Announcement on Payment of 2022 Interest with Respect to the First Tranche of Corporate Bonds Publicly Issued to Qualified Investors in 2018 | 31 March 2022 | http://www.cninfo.com.cn |
| 2022-027 | Announcement on Receipt of Government Subsidies by Subsidiaries | 1 April 2022 | http://www.cninfo.com.cn |
| 2022-028 | Announcement on the Proposed Resale of “18 Chenming Bond 01” Sale-back Bonds | 7 April 2022 | http://www.cninfo.com.cn |
| 2022-029 | Announcement on Pledge of Shares and Partial Release of Pledge of Shares by Shareholders | 21 April 2022 | http://www.cninfo.com.cn |
| 2022-030 | 2022 First Quarterly Report | 30 April 2022 | http://www.cninfo.com.cn |
| 2022-031 | Announcement on the Results of Resale of “18 Chenming Bond 01” Bonds | 10 May 2022 | http://www.cninfo.com.cn |
| 2022-032 | Announcement on Resolutions of 2021 Annual General Meeting | 12 May 2022 | http://www.cninfo.com.cn |
| 2022-033 | Announcement on Resolutions of the Twenty-fourth Extraordinary Meeting of the Ninth Session of the Board of Directors | 24 May 2022 | http://www.cninfo.com.cn |
| 2022-034 | Announcement on Resolutions of the Seventh Extraordinary Meeting of the Ninth Session of the Supervisory Committee | 24 May 2022 | http://www.cninfo.com.cn |
| 2022-035 | Declaration by Nominator of Independent Director (Li Zhihui) | 24 May 2022 | http://www.cninfo.com.cn |
| 2022-036 | Declaration by Nominator of Independent Director (Sun Jianfei) | 24 May 2022 | http://www.cninfo.com.cn |
| 2022-037 | Declaration by Nominator of Independent Director (Yang Biao) | 24 May 2022 | http://www.cninfo.com.cn |
| 2022-038 | Declaration by Nominator of Independent Director (Yin Meiqun) | 24 May 2022 | http://www.cninfo.com.cn |
| 2022-039 | Declaration by Candidate for Independent Director (Li Zhihui) | 24 May 2022 | http://www.cninfo.com.cn |
| 2022-040 | Declaration by Candidate for Independent Director (Sun Jianfei) | 24 May 2022 | http://www.cninfo.com.cn |
| 2022-041 | Declaration by Candidate for Independent Director (Yang Biao) | 24 May 2022 | http://www.cninfo.com.cn |
| 2022-042 | Declaration by Candidate for Independent Director (Yin Meiqun) | 24 May 2022 | http://www.cninfo.com.cn |
| 2022-043 | Announcement on the Purchase of Liability Insurance for Directors, Supervisors and Senior Management | 24 May 2022 | http://www.cninfo.com.cn |
| 2022-044 | Notice of the First Extraordinary General Meeting of 2022 | 24 May 2022 | http://www.cninfo.com.cn |
| 2022-045 | Announcement on Credit Rating Adjustment | 30 May 2022 | http://www.cninfo.com.cn |
| 2022-046 | Announcement on Resolutions of the Twenty-fifth Extraordinary Meeting of the Ninth Session of the Board of Directors | 31 May 2022 | http://www.cninfo.com.cn |
| 2022-047 | Notice on Cancellation of Certain Resolutions of 2022 First Extraordinary General Meeting and Supplementary Notice of the General Meeting | 31 May 2022 | http://www.cninfo.com.cn |
| 2022-048 | Announcement on Receipt of Government Subsidies by Subsidiaries | 1 June 2022 | http://www.cninfo.com.cn |
| 2022-049 | Announcement on Resolutions of the First Extraordinary General Meeting of 2022 | 16 June 2022 | http://www.cninfo.com.cn |
| 2022-050 | Announcement on the Election of Employee Representative Supervisors | 16 June 2022 | http://www.cninfo.com.cn |
| 2022-051 | Announcement on Resolutions of the First Meeting of the Tenth Session of the Board of Directors | 16 June 2022 | http://www.cninfo.com.cn |
| 2022-052 | Announcement on Resolutions of the First Meeting of the Tenth Session of the Supervisory Committee | 16 June 2022 | http://www.cninfo.com.cn |
| 2022-053 | Announcement on the Progress of Litigation | 21 June 2022 | http://www.cninfo.com.cn |
| 2022-054 | Announcement on the Continued Pledge of Shares held by Shareholders | 28 June 2022 | http://www.cninfo.com.cn |
| 2022-055 | Announcement on Resolutions of the First Extraordinary Meeting of the Tenth Session of the Board | 28 June 2022 | http://www.cninfo.com.cn |
| 2022-056 | Announcement on Capital Increase and Introduction of Strategic Investors of a Majority-owned Subsidiary | 28 June 2022 | http://www.cninfo.com.cn |
| 2022-057 | Announcement on Pledge of Shares and Partial Release of Pledge of Shares by Shareholders | 13 July 2022 | http://www.cninfo.com.cn |
| 2022-058 | 2022 Interim Results Forecast | 16 July 2022 | http://www.cninfo.com.cn |
| 2022-059 | Announcement on Resolutions of the Second Extraordinary Meeting of the Tenth Session of the Board of Directors | 19 July 2022 | http://www.cninfo.com.cn |
| 2022-060 | Announcement on Resolutions of the First Extraordinary Meeting of the Tenth Session of the Supervisory Committee | 19 July 2022 | http://www.cninfo.com.cn |
| 2022-061 | Review Opinions on Relevant Matters Proposed at the First Extraordinary Meeting of the Tenth Session of the Supervisory Committee | 19 July 2022 | http://www.cninfo.com.cn |
| 2022-062 | Announcement on Fulfilment of the Unlocking Conditions for the First Unlocking Period under the 2020 Restricted A Share Incentive Scheme | 19 July 2022 | http://www.cninfo.com.cn |
| 2022-063 | Announcement on Adjustment to the Repurchase Price of the 2020 Restricted A Share Incentive Scheme and Repurchase and Cancellation of Certain Restricted Shares | 19 July 2022 | http://www.cninfo.com.cn |
| 2022-064 | Announcement on Repurchase and Cancellation of Certain Restricted Shares and Notice to Creditors | 19 July 2022 | http://www.cninfo.com.cn |
| 2022-065 | Indicative Announcement on Release of Restricted Shares for the First Unlocking Period under the 2020 Restricted A Share Incentive Scheme for Listing and Trading | 25 July 2022 | http://www.cninfo.com.cn |
| 2022-066 | Announcement on Continued Pledge of Shares held by Shareholders and Partial Release of Pledge of Shares by Shareholders | 26 July 2022 | http://www.cninfo.com.cn |
| 2022-067 | Announcement on Resolution of the Third Extraordinary Meeting of the Tenth Session of the Board of Directors | 29 July 2022 | http://www.cninfo.com.cn |
| 2022-068 | Announcement on Capital Increase and Introduction of Strategic Investors of a Majority-owned Subsidiary | 29 July 2022 | http://www.cninfo.com.cn |
| 2022-069 | Announcement on Pledge of Shareholders’ Shares | 29 July 2022 | http://www.cninfo.com.cn |
| 2022-070 | Announcement on Continued Pledge of Shares held by Shareholders | 6 August 2022 | http://www.cninfo.com.cn |
| 2022-071 | Announcement on the Preliminary Disclosure of Disposal of Shares by Certain Directors and Senior Management of the Company | 13 August 2022 | http://www.cninfo.com.cn |
| 2022-072 | 2022 Interim Report Summary | 31 August 2022 | http://www.cninfo.com.cn |
| 2022-073 | Announcement in respect of Provision of Guarantee in Favour of a Subsidiary for Technological Transformation Project | 13 October 2022 | http://www.cninfo.com.cn |
| 2022-074 | Announcement on Completion of Repurchase and Cancellation of Certain Restricted Shares | 21 October 2022 | http://www.cninfo.com.cn |
| 2022-075 | Announcement on the Release of Pledge of Shares held by Shareholders | 27 October 2022 | http://www.cninfo.com.cn |
| 2022-076 | Announcement on Resolutions of the Third Meeting of the Tenth Session of the Board of Directors | 31 October 2022 | http://www.cninfo.com.cn |
| 2022-077 | Announcement on Resolutions of the Third Meeting of the Tenth Session of the Supervisory Committee | 31 October 2022 | http://www.cninfo.com.cn |
| 2022-078 | 2022 Third Quarterly Report | 31 October 2022 | http://www.cninfo.com.cn |
| 2022-079 | Announcement on Investment in Coniferous Wood Bleached Chemical Pulp Project with Annual Production Capacity of 300,000 Tonnes | 31 October 2022 | http://www.cninfo.com.cn |
| 2022-080 | Announcement on Investment in Construction of Special Paper Project with Annual Production Capacity of 180,000 Tonnes by Zhanjiang Chenming | 31 October 2022 | http://www.cninfo.com.cn |
| 2022-081 | Announcement on Continued Pledge of Shares held by Shareholders | 5 November 2022 | http://www.cninfo.com.cn |
| 2022-082 | Announcement on Expiry of Approval Regarding Change of Listing Venue of the Domestic Listed Foreign Shares and Their Listing and Trading on the Main Board of the Stock Exchange of Hong Kong Limited by Conversion | 12 November 2022 | http://www.cninfo.com.cn |
| 2022-083 | Announcement on Participation in the 2022 Annual Online Group Reception Day for Investors of Listed Companies in Shandong Jurisdiction | 12 November 2022 | http://www.cninfo.com.cn |
| 2022-084 | Announcement on Resolutions of the Fourth Extraordinary Meeting of the Tenth Session of the Board of Directors | 22 November 2022 | http://www.cninfo.com.cn |
| 2022-085 | Announcement on Resolutions of the Second Extraordinary Meeting of the Tenth Session of the Supervisory Committee | 22 November 2022 | http://www.cninfo.com.cn |
| 2022-086 | Indicative Announcement on General Risks Regarding Asset Purchase Through Issuance of Shares and Cash Payments | 22 November 2022 | http://www.cninfo.com.cn |
| 2022-087 | Announcement on Not Convening General Meeting for Consideration of Matters Regarding Asset Purchase Through Issuance of Shares and Cash Payments at the Moment | 22 November 2022 | http://www.cninfo.com.cn |
| 2022-088 | Opinions of Supervisory Committee on Asset Purchase Through Issuance of Shares and Cash Payments | 22 November 2022 | http://www.cninfo.com.cn |
| 2022-089 | Announcement on Involvement in the Establishment of Limited Partnership Company by a Subsidiary | 22 November 2022 | http://www.cninfo.com.cn |
| 2022-090 | Announcement on Pledge of Shares and Continued Pledge of Shares held by Shareholders | 25 November 2022 | http://www.cninfo.com.cn |
| 2022-091 | Announcement on the Implementation Progress of the Share Disposal Plan by Certain Directors and Senior Management of the Company | 7 December 2022 | http://www.cninfo.com.cn |
| 2022-092 | Announcement on Resolutions of the Fifth Extraordinary Meeting of the Tenth Session of the Board of Directors | 8 December 2022 | http://www.cninfo.com.cn |
| 2022-093 | Announcement of Repayment of Debts by Pledge of Equity and Provision of External Guarantees | 8 December 2022 | http://www.cninfo.com.cn |
| 2022-094 | Announcement on Provision of External Guarantees | 8 December 2022 | http://www.cninfo.com.cn |
| 2022-095 | Notice of 2022 Second Extraordinary General Meeting | 8 December 2022 | http://www.cninfo.com.cn |
| 2022-096 | Poll Results of the 2022 Second Extraordinary General Meeting | 24 December 2022 | http://www.cninfo.com.cn |
3. Introduction of strategic investors by Zhanjiang Chenming
On 27 June 2022, the first extraordinary meeting of the tenth session of the Board of the Company considered and approvedthe Proposal on Capital Contribution and Introduction of Strategic Investors of a Majority-owned Subsidiary. Given therecognition of Zhanjiang Chenming for its bright development prospect, Xiamen International Trade Industry Development EquityInvestment Fund Partnership (Limited Partnership) made capital contribution to Zhanjiang Chenming in the amount of RMB400million, of which RMB266,351,374 was included in the registered capital and the remaining RMB133,648,626 was included in thecapital reserve.
On 28 July 2022, the third extraordinary meeting of the tenth session of the Board of the Company considered and approvedthe Proposal on the Capital Contribution for Share Increase and Introduction of Strategic Investors for a Controlling Subsidiary.BOCOM Financial Assets Investment Co., Ltd. (“BOCOM Investment”) and Jiaohui Chenming Zhuli (Suzhou) EmergingIndustry Development Fund Partnership (Limited Partnership) (“Jiaohui Chenming Fund”) contributed capital to ZhanjiangChenming, with a total capital contribution of RMB1,000 million. BOCOM Investment and Jiaohui Chenming Fund contributedRMB500 million and RMB500 million, respectively.
For details, please refer to the relevant announcements (announcement no.: 2022-055, 2022-056 and 2022-068) of theCompany published on CNINFO on 28 June and 29 July 2022.
4. Business status of Chenming Leasing
At present, the Company focuses on the development of its principal activities, i.e. pulp production and paper making, andcontinues to reduce the size of the financial leasing business. As at the end of the reporting period, the balance of financial leasesof Chenming Leasing decreased to RMB5.79 billion. Some financial lease receivables of Chenming Leasing were overdue due tofactors such as the weak domestic economic environment with the overdue principals amounting to RMB1,791 million, for whichprovisions of RMB663 million were made, and a provision coverage rate of 37.02%. Certain assets have been seized throughlitigation. The Company has resorted to, among other things, control of the underlying assets, litigation for seizure, recovery forguarantors and debt reconstruction with the overall risks under control.
5. Construction and put into production of Shouguang Meilun household paper project
In order to optimise resources allocation, accelerate growth driver replacement and facilitate industry upgrade andtransformation, the Company relocated the household paper production line of Wuhan Chenming to Shouguang Meilun. In
September 2022, the household paper relocation project of Shouguang Meilun commenced trial operation. In December 2022, theproject was officially put into production. Total investment of the project amounted to RMB460 million. The full set of equipmentand control system of production was sourced from Valmet in Finland. The whole product line adopted most advanced equipmentand system in the world, including double headbox, sharper, shoe press, Yankee dryer, high-temperature air cover, as well as thecomplete set of automatic DCS system, QCS system, electric transmission system and MES system, thus realising full automaticcontrol. The width of paper-making machine is 5,600mm, with operation speed up to 2,000m/min. The project uses 100% virginwood pulp as raw material. Products will undergo 450℃ high-temperature sterilisation, and can be used for the production fordifferent types of high-end paper products such as toilet paper roll, pocket tissue, facial tissue, napkin and paper towels, withannual production capacity up to 49,000 tonnes.
| The Board of Shandong Chenming Paper Holdings Limited |
| 30 March 2023 |