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
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2023 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 RMB1,392.62 billion, down 2.4% year on year; their operating costs were RMB1,222.80
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. Domestically,new
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 144,055,300 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 Shandong,Guangdong, 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 RMB26,609 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 paper,
white cardboard, copy paper, industrial paper, special paper, and household paper. The Company owns “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 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,
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2023 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 documents,
series 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
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 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.
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 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.
③ 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 sales
companies schedule task indicators daily to ensure the effective implementation of the plans. It sticks to a “four-level visit
mechanism” 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.
④ 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
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2023 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:
① 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.
② 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.
③ 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.
④ 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.
⑤ 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.
⑥ 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.
⑦ 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-
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2023 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.
⑧ 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 79,487,052,953.58 84,301,017,409.62 -5.71% 82,869,661,681.08
Net assets attributable to shareholders of the
16,692,175,196.53 19,084,565,494.92 -12.54% 19,117,985,306.48
Company
Increase/decrease for the
2023 2022 year as compared to the 2021
prior year
Revenue 26,608,570,228.20 32,004,367,320.91 -16.86% 33,019,812,294.14
Net profit attributable to shareholders of the
-1,281,289,649.82 189,290,120.82 -776.89% 2,065,513,108.71
Company
Net profit after extraordinary gains or losses
-1,942,120,184.70 -361,459,377.16 -437.30% 1,743,876,537.12
attributable to shareholders of the Company
Net cash flows from operating activities 4,389,949,308.82 3,449,824,242.37 27.25% 8,581,888,192.64
Basic earnings per share (RMB per share) -0.45 0.03 -1,600.00% 0.56
Diluted earnings per share (RMB per share) -0.45 0.03 -1,600.00% 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 RMB47,430,410.96 during the reporting period is deducted.
(2) Key Major Accounting Data by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Revenue 6,155,915,692.16 6,409,047,089.15 7,156,893,450.74 6,886,713,996.15
Net profit attributable to shareholders of the Company -275,409,967.37 -412,670,196.73 -80,213,259.42 -512,996,226.30
Net profit after extraordinary gains or losses
-327,893,189.14 -483,946,028.35 -439,773,872.12 -690,507,095.09-
attributable to shareholders of the Company
Net cash flows from operating activities 916,852,965.06 866,234,782.53 1,858,270,213.08 748,591,348.15
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
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2023 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
142,995, of which Total number of 140,889, of which holders of holders of Preference
Total number of
121,718 were holders ordinary shareholders 119,803 were holders Preference Shares Shares with restored
ordinary
of A shares, 20,954 as at the end of the of A shares, 20,763 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% 457,322,919 0 Pledged 268,994,000
LIMITED
HKSCC NOMINEES LIMITED Overseas legal person 12.63% 373,461,275 0
CHENMING HOLDINGS (HONG
Overseas legal person 12.32% 364,131,563 0
KONG) LIMITED (Note 1)
Hong Zejun Domestic natural person 1.19% 35,300,000 0
Chen Hongguo Domestic natural person 0.85% 25,080,044 17,310,033
SHANDONG SUN HOLDINGS GROUP Domestic non-state-
0.85% 24,987,117 0
CO., LTD. owned legal person
China Merchants Securities (HK) Co.,
Overseas legal person 0.71% 20,972,258 0
Limited
VANGUARD EMERGING MARKETS
Overseas legal person 0.50% 14,852,146 0
STOCK INDEX FUND
VANGUARD TOTAL INTERNATIONAL
Overseas legal person 0.50% 14,771,945 0
STOCK INDEX FUND
HONG KONG SECURITIES CLEARING
Overseas legal person 0.38% 11,251,780 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 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 35,300,000 RMB ordinary shares, of which no share was held through ordinary
Securities margin trading of shareholders
account and 35,300,000 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.
Note 1: In order to meet its own capital needs, Chenming Holdings (Hong Kong) Limited conducted share financing business with
overseas institutions, entrusting 210,717,563 B shares and 153,414,000 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
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2023 Annual Report Summary of Shandong Chenming Paper Holdings Limited
GUOTAI JUNAN SECURITIES
Exit 0.00 0.00% 6,252,684 0.00%
(HONG KONG) LIMITED
China Merchants Securities (HK)
Addition 0.00 0.00% 20,972,258 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 “First
Tranche 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 Chenming
MTN001, bond code: 101779001) 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.
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 RMB1,089.70 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.
7
2023 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 71,841,345 shares.
On 14 March 2023, the Company received the Notice on the Acceptance of Application Documents for Asset Purchase
through 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 RMB1,440 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
8
2023 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
9
2023 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
10
2023 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
