Shandong Chenming Paper : 2021 First Quarterly Report

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

山 東 晨 鳴 紙 業 集 團 股 份 有 限 公 司

SHANDONG CHENMING PAPER HOLDINGS LIMITED*

(a joint stock company incorporated in the People's Republic of China with limited liability)

(Stock code: 1812)

2021 First Quarterly Report

Shandong Chenming Paper Holdings Limited (the "Company") is required to publish quarterly reports in accordance with the requirements of the China Securities Regulatory Commission.

The financial data contained in this quarterly report is unaudited and is prepared in accordance with Accounting Standards for Business Enterprises. This announcement is made pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance. The same is also published on the website of Shenzhen Stock Exchange and in the newspapers in China.

1. IMPORTANT NOTICE

The board of directors (the "Board"), the supervisory committee (the "Supervisory Committee"), and the directors (the "Directors"), supervisors (the "Supervisors") and senior management (the "Senior Management") of the Company hereby warrant that the truthfulness, accuracy and completeness of this quarterly report which does not contain false representations, misleading statements or material omissions, and are jointly and severally responsible for the liabilities of the Company.

All Directors were present at the Board meeting to consider and approve this quarterly report.

Chen Hongguo, the head of the Company, Dong Lianming, the head in charge of accounting, and Zhang Bo, the head of the accounting department (Accounting Officer), declare that they warrant the truthfulness, accuracy and completeness of the financial statements in this quarterly report.

1

1. GENERAL INFORMATION OF THE COMPANY

1. Major accounting data and financial indicators
   Retrospective adjustment to or restatement of the accounting data for prior years by the Company
   □ Yes √ No

			Increase/decrease
		The	compared to the
		corresponding	corresponding
	The	period of	period of the
	reporting period	the prior year	prior year
Revenue (RMB)	10,205,724,007.89	6,085,376,805.28	67.71%
Net profit attributable to shareholders
of the Company (RMB)	1,179,076,577.84	202,790,856.25	481.42%
Net profit after extraordinary gains or
losses attributable to shareholders
of the Company (RMB)	1,165,076,739.34	143,993,251.71	709.12%
Net cash flows from operating
activities (RMB)	3,386,890,222.27	655,581,522.20	416.62%
Basic earnings per share (RMB per share)	0.365	0.019	1821.05%
Diluted earnings per share
(RMB per share)	0.365	0.019	1821.05%
Rate of return on weighted			Increase of 5.19
average net assets	5.51%	0.32%	percentage point
			Increase/decrease
			as at the end of
			the reporting
			period compared
	As at the end of the	As at the end	to the end of
	reporting period	of the prior year	the prior year
Total assets (RMB)	90,924,591,156.25	91,575,457,828.62	-0.71%
Net assets attributable to shareholders
of the Company (RMB)	22,926,769,322.29	24,276,968,789.00	-5.56%

Explanation:

Net profit attributable to shareholders of the Company does not exclude the effect of the interest of perpetual bonds and the dividends of preference shares paid and declared to be paid. When calculating financial indicators such as earnings per share and the rate of return on weighted average net assets, the interest for perpetual bonds from 1 January to 31 March 2021 of RMB22,117,808.22 and the dividend on preference shares paid in 2021 of RMB98,100,000.00 are deducted.

2

Items and amounts of extraordinary gains or losses √ Applicable □ Not applicable

		Unit: RMB
	Amounts for the
	period from the
	beginning of the
	year to the end of
Item	the reporting period	Note
Profit or loss from disposal of non-current assets
(including write-off of asset impairment provision)	8,707,022.62
Government grants (except for the government grants closely
related to the normal operation of the company and granted
constantly at a fixed amount or quantity in accordance
with a certain standard based on state policies)
accounted for in profit or loss for the current period	58,441,146.99
Except for effective hedging business conducted in the ordinary
course of business of the Company, gain or loss arising from
the change in fair value of financial assets held for trading,
derivative financial assets, financial liabilities held for trading
and derivative financial liabilities, as well as investment gains
from disposal of financial assets held for trading, derivative
financial assets, financial liabilities held for trading, derivative
financial liabilities and other debt investments	-59,993,447.44
Investment income from dividend of non-current financial assets	15,000,000.00
Non-operating income and expenses other than the above items	6,906,710.91
Less: Effect of income tax	14,401,525.18
Effect of minority interest (after tax)	660,069.40
Total	13,999,838.50	-

Notes for the Company's extraordinary gain or loss items as defined in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No. 1 - Extraordinary Gains or Losses and the extraordinary gain or loss items as illustrated in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No. 1 - Extraordinary Gains or Losses defined as its recurring gain or loss items

• Applicable √ Not applicable

No extraordinary gain or loss items as defined or illustrated in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No. 1 - Extraordinary Gains or Losses were defined by the Company as its recurring gain or loss items during the reporting period.

3

1. Total number of shareholders and shareholdings of the top ten shareholders as at the end of the reporting period

1. Total number of shareholders of ordinary shares and shareholders of preference shares with restored voting rights and shareholdings of the top ten shareholders

						Unit: share
Total number of shareholders of ordinary	136,238, of which 116,697 were	Total number of shareholders of preference shares
shares as at the end of the reporting period	holders of A shares, 19,201 were	with restored voting right as at the end of the
	holders of B shares and 340 were	reporting period
	holders of H shares					0
	Shareholding of top ten shareholders
				Number of	Share pledged or locked-up
	Nature of	Percentage of	Number of
	restricted	Status
Name of shareholders	shareholders	shareholding	shares held	shares held	of shares	Number
CHENMING HOLDINGS	State-owned
COMPANY LIMITED	legal person	15.32%	457,322,919	0	Pledged	212,970,000
HKSCC NOMINEES LIMITED	Overseas
	legal person	12.52%	373,513,625	0
CHENMING HOLDINGS	Overseas
(HONG KONG) LIMITED	legal person	12.20%	364,131,563	0
NINGBO ASIA PAPER TUBE CARTON	Domestic non-state
CO., LTD. (寧波亞洲紙管紙箱有限公司)	owned
	legal person	3.89%	116,080,074	0
HONG KONG SECURITIES CLEARING	Overseas
COMPANY LIMITED	legal person	1.35%	40,230,192	0
CHEN HONGGUO	Domestic
	natural person	1.04%	31,080,044	23,310,033
GUO TAI JUN AN SECURITIES	Overseas
(HONGKONG) LIMITED	legal person	0.78%	23,332,494	0
UBS AG LONDON BRANCH	Overseas
	legal person	0.58%	17,318,262	0
BANK OF CHINA LIMITED -	Others
GUOTAI ZHIYUAN ADVANTAGEOUS
HYBRID SECURITIES INVESTMENT
FUND (中國銀行股份有限公司－
國泰致遠優勢混合型證券投資基金)		0.55%	16,500,069	0
VANGUARD TOTAL INTERNATIONAL	Overseas
STOCK INDEX FUND	legal person	0.50%	14,771,945	0

4

Shareholdings of the top ten shareholders of non-restricted shares

	Number of		Class of shares
Name of shareholders	non-restricted
shares held		Class of shares		Number
CHENMING HOLDINGS COMPANY LIMITED			RMB
	457,322,919		ordinary shares		457,322,919
HKSCC NOMINEES LIMITED			Overseas listed
	373,513,625		foreign shares		373,513,625
			Domestic listed
CHENMING HOLDINGS (HONG KONG) LIMITED	364,131,563		foreign shares		210,717,563
	Overseas listed
			foreign shares		153,414,000
NINGBO ASIA PAPER TUBE CARTON CO., LTD.			RMB
(寧波亞洲紙管紙箱有限公司)	116,080,074		ordinary shares		116,080,074
HONG KONG SECURITIES CLEARING			RMB
COMPANY LIMITED	40,230,192		ordinary shares		40,230,192
GUO TAI JUN AN SECURITIES			Domestic listed
(HONGKONG) LIMITED	23,332,494		foreign shares		23,332,494
UBS AG LONDON BRANCH			Domestic listed
	17,318,262		foreign shares		17,318,262
BANK OF CHINA LIMITED - GUOTAI ZHIYUAN
ADVANTAGEOUS HYBRID SECURITIES
INVESTMENT FUND (中國銀行股份有限公司－			RMB
國泰致遠優勢混合型證券投資基金)	16,500,069		ordinary shares		16,500,069
VANGUARD TOTAL INTERNATIONAL			Domestic listed
STOCK INDEX FUND	14,771,945		foreign shares		14,771,945
MORGAN STANLEY & CO. INTERNATIONAL PLC			Domestic listed
	14,470,378		foreign shares		14,470,378
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. Hence they
	are persons acting in concert under Administration Measure on Disclosure of
	Information on the Change of Shareholding in Listed Companies (上市公司股
	東持股變動信息披露管理辦法). 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 aforementioned
	shareholders are persons acting in concert. It is also not aware that any other
	aforementioned shareholders are related to each other.
Securities margin trading of top 10 shareholders, if any	Chenming Holdings Company	Limited held 457,322,919 RMB ordinary
	shares, of which 379,522,919 shares were held through ordinary account and
	77,800,000 shares were held through credit guarantee securities account;
	Ningbo Asia Paper Tube Carton Co., Ltd. held 116,080,074 RMB ordinary
	shares, of which 0 shares were held through ordinary account and 116,080,074
	shares were held through credit guarantee securities account.

Whether an agreed repurchase transaction was entered into during the reporting period by the top 10 ordinary shareholders and top 10 shareholders of non-restricted shares of the Company

• Yes √ No

The top 10 ordinary shareholders and top 10 shareholders of non-restricted ordinary shares of the Company did not enter into any agreed repurchase transaction during the reporting period.

5

2. Total number of shareholders of preference shares and shareholding of the top ten shareholders of preference shares

• Applicable □ Not applicable

							Unit: share
Total number of shareholders of preference shares as at the end of the reporting period					6
Shareholdings of the top ten shareholders of preference shares
						Share pledged or
					Number of	locked-up
	Nature of	Percentage of	Number of
		restricted	Status
Name of shareholders	shareholders	shareholding	shares held		shares held	of shares		Number
BANK OF COMMUNICATIONS	Others
INTERNATIONAL TRUST
CO., LTD. - HUILI NO. 136 SINGLE
CAPITAL TRUST		28.44%	6,400,000		0
BEIJING YIBEN ZHONGXING	Domestic
INVESTMENT MANAGEMENT	non-state-
CO., LTD.	owned
	legal
	person	27.11%	6,100,000		0	Pledged		6,100,000
SHANGHAI SHIJIE BUSINESS	Domestic
CONSULTING CO., LTD.	non-state-
	owned
	legal
	person	19.51%	4,390,100		0	Pledged		4,140,000
HENGFENG BANK CO., LTD.	Domestic
	non-state-
	owned
	legal
	person	13.33%	3,000,000		0
LEAD CAPITAL MANAGEMENT	Others
CO., LTD. - LEAD CAPITAL - LI DE YING
NO. 1 ASSET MANAGEMENT PLAN		5.91%	1,330,000		0
LEAD CAPITAL MANAGEMENT CO., LTD. -	Others
LEAD CAPITAL - LI DE YING
NO. 2 ASSET MANAGEMENT PLAN		5.69%	1,279,900		0
Related party relationship or acting	"LEAD CAPITAL MANAGEMENT CO., LTD. - LEAD CAPITAL - LI DE YING NO. 1 ASSET
in concert among the above shareholders	MANAGEMENT PLAN" and "LEAD CAPITAL MANAGEMENT CO., LTD. - LEAD CAPITAL - LI
	DE YING NO. 2 ASSET MANAGEMENT PLAN" are persons acting in concert. Save for the above, it is
	not aware that any other shareholders of preference shares are persons acting in concert, and it is also not
	aware whether there is any related party relationship between the above shareholders of preference shares
	and the top ten shareholders of ordinary shares.

6

III MATERIAL MATTERS

1. Details and reasons for changes of major financial data and financial indicators during the reporting period
   √ Applicable □ Not applicable

1. Analysis of the assets and liabilities of the Company

				Unit: RMB
				Reason
Item	31 March 2021	31 December 2020	Change	for change
Financial assets held for trading	133,349,089.17	192,907,800.62	-30.87%	(1)
Accounts receivable financing	1,071,559,674.38	488,385,666.76	119.41%	(2)
Bills payable	3,432,666,717.36	2,998,936,736.34	14.46%	(3)
Contract liabilities	1,278,950,068.66	1,051,147,044.74	21.67%	(4)
Other current liabilities		157,037,833.35	-100.00%	(5)
Other equity instruments	3,234,750,000.00	5,473,500,000.00	-40.90%	(6)
Minority interest	2,490,325,610.41	1,523,294,926.24	63.48%	(7)

7

Explanation of the reasons leading to the major changes:

1. Financial assets held for trading decreased by 30.87% as compared to the beginning of the year, mainly due to the change in the fair value of the shares of China Bohai Bank held by the Company during the reporting period.
2. Accounts receivable financing increased by 119.41% as compared to the beginning of the year, mainly due to the increase in bills held at the end of the reporting period from the beginning of the year.
3. Bills payable increased by 14.46% as compared to the beginning of the year, mainly due to the increase in payment for goods with bills during the reporting period.
4. Contract liabilities increased by 21.67% as compared to the beginning of the year, mainly due to the increase in advance payment from the customers of the Company.
5. Other current liabilities decreased by 100% as compared to the beginning of the year, mainly due to the repayment of all super & short-term commercial papers by the Company during the reporting period.
6. Other equity instruments decreased by 40.9% as compared to the beginning of the year, mainly due to the repayment of RMB2.25 billion preference shares by the Company during the reporting period.
7. Minority interest increased by 63.48% as compared to the beginning of the year, mainly due to the introduction of an investor by Meilun Paper, a subsidiary, for its capital increase during the reporting period.

8

(II) Reasons for significant year-on-year changes of income statement items

				Unit: RMB
	January -	January -		Reasons
Item	March 2021	March 2020	Change	for change
Revenue	10,205,724,007.89	6,085,376,805.28	67.71%	(1)
Research and development expenditure	365,485,850.44	253,652,714.07	44.09%	(2)
Gain on disposal of assets	4,804,612.13	-16,937,727.55	128.37%	(3)

Explanation of the reasons leading to the major changes:

1. Revenue increased by 67.71% as compared to the corresponding period of last year, mainly due to the year-on-year increase in the sales and selling prices of machine-made paper during the reporting period.
2. Research and development expense increased by 44.09% as compared to the corresponding period of last year, mainly due to the increase in research and development investment of the Company during the reporting period.
3. Gain on disposal of asset increased by 128.37% as compared to the corresponding period of last year, mainly due to the year-on-year increase in gain on disposal of asset during the reporting period.

9

(III) Analysis of cash flows during the reporting period

				Unit: RMB
	January -	January -		Reasons
Item	March 2021	March 2020	Change	for change
Net cash flows from operating activities	3,386,890,222.27	655,581,522.20	416.62%	(1)
Net cash flows from investment activities	-187,483,014.24	330,801,082.22	-156.68%	(2)
Net cash flows from financing activities	-3,285,797,443.75	-2,087,152,482.74	-57.43%	(3)

Explanation of the reasons leading to the major changes:

1. Cash flows from operating activities increased by 416.62% as compared to the corresponding period of last year, mainly due to the year-on-year significant growth of the profitability of the Company during the reporting period.
2. Cash flows from investing activities decreased by 156.68% as compared to the corresponding period of last year, mainly due to the year-on-year increase in investment expenditure as a result of the increase of investment of RMB400 million by Chenming GDR Fund to Chenchuang Fund during the reporting period.
3. Cash flows from financing activities decreased by 57.43% as compared to the corresponding period of last year, mainly due to the further reduction in the liability size of the Company during the reporting period.

10

1. Progress in respect of material matters and analysis of the related effects and solutions
   √ Applicable □ Not applicable

			Search index of interim
Summary of important events	Date of disclosure	report disclosure website
The matters relating to the "Proposal on the Domestic Listed Foreign	30	January 2021
Shares of the Company Changing Listing Venue to be Listed and Traded on
the Main Board of The Stock Exchange of Hong Kong Limited by Way of	18	February 2021
Conversion" was considered and approved at the seventeenth extraordinary	http://www.cninfo.com.cn
meeting of ninth session of the Board, the 2021 first extraordinary general
meeting, the 2021 first class meeting for holders of domestic-listed shares
and the 2021 first class meeting for holders of overseas-listed shares of the	10	March 2021
Company.
Progress of share repurchase
√ Applicable □ Not applicable

1. Redemption of first-tranche preference shares in full

On 18 February 2021, the Company held the eighteenth extraordinary meeting of the ninth session of the Board to consider and approve the "Resolution on Redemption of the First-Tranche Preference Shares", which agreed the Company's full redemption of the first-tranche preference shares (the "Chenming You 01") totaling 22.5 million shares. The redemption price was the par value of the preference share (RMB100 per share) plus the amount of dividend declared but not yet paid for the current period (i.e. RMB4.36 per share). The redemption time is the payment date of fixed dividend of "Chenming You 01".

11

On 17 March 2021, the Company paid a total of RMB2,348.1 million in redemption to shareholders of the first-tranche preference shares to fully redeem 22.5 million shares of first-tranche preference shares of the Company. On 18 March 2021, the Company received the "Redemption Results Statement" from the Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. The redemption and delisting of "Chenming You 01" has been completed.

For details, please refer to the relevant announcements disclosed by the Company on www.cninfo.com.cn on 19 February, 26 February, 5 March, 12 March, 16 March and 19 March 2021. The announcement number are: 2021-013,2021-014,2021-016,2021-017,2021-019,2021-020,2021-022,2021-023.

Progress of decrease in the holding of repurchased shares by way of bidding

1. • Applicable √ Not applicable
2. Undertakings made by parties involved in undertakings including the Company's beneficial controllers, shareholders, related parties, bidders and the Company subsisting during the reporting period
3. • Applicable √ Not applicable

During the reporting period, there were no undertakings made by parties involved in undertakings including the Company's beneficial controllers, shareholders, related parties, bidders and the Company subsisting during the reporting period.

12

IV. Financial asset investment

1. Security investments

• Applicable □ Not applicable

Unit: RMB

Book value

at the

Profit or loss

Accumulated

Book value

beginning

from changes

changes

Profit or loss

at the end

Initial

Accounting

of the

in fair value

in fair value

Purchased

Sold amount

during the

of the

Type of

Stock

Abbreviation

investment

measurement

reporting

in the current

included

amount in the

in the current

reporting

reporting

Classification

Source

security

code

of stock name

cost

model

period

period

in equity

current period

period

period

period

in accounts

of fund

Domestic

and

Held-for-trading

Self-owned

foreign

China

Measured

financial

funds and

13

shares

09668

Bohai Bank

195,684,817.15

at fair value

192,907,800.62

-59,558,711.45

-62,335,727.98

0.00

0.00

-59,558,711.45

133,349,089.17

assets

borrowings

Total

195,684,817.15

--

192,907,800.62

-59,558,711.45

-62,335,727.98

0.00

0.00

-59,558,711.45

133,349,089.17

--

--

Disclosure date of announcement in relation to the consideration and approval

of securities investments by the Board

20 June 2020

Disclosure date of announcement in relation to the consideration and approval

of securities investments by the shareholders' general meeting (if any)

Not applicable

2. Derivatives investments

• Applicable √ Not applicable

The Company did not have any derivative investments during the reporting period.

1. Progress in respect of investment projects funded by raised proceeds
   □ Applicable √ Not applicable

VI. Estimate of the operating results for January - June 2021

Warning of projection on cumulative net profit for the period from the beginning of the year to the end of the next reporting period to be at a loss or expected to have material changes as compared to the corresponding period of prior year and its explanation

• Applicable √ Not applicable

VII. Material contracts in day-to-day operation

• Applicable √ Not applicable

VIII. Entrusted wealth management

• Applicable √ Not applicable

The Company did not have any entrusted wealth management during the reporting period.

IX. External guarantees against the rules and regulations

• Applicable √ Not applicable

There was no external guarantee provided by the Company which was against rules and regulations during the reporting period.

14

1. Appropriation of funds of the Company by the controlling shareholder and its related parties for non-operating purposes

• Applicable √ Not applicable

There was no appropriation of funds of the Company by the controlling shareholder and its related parties for non-operating purposes during the reporting period.

XI. Reception of research investigations, communications and interviews during the reporting period

• Applicable □ Not applicable

					Major
					discussion
					points and
Date of	Site of	Way of	Type of		information	Index of the basic
reception	reception	reception	recipient	Recipient	provided	particulars of the survey
31 March	Meeting room	Field	Institutions,	Guotai Anbao	Company's	For details, please refer
2021	of the	research	individuals	Fund,	main	to the Investor
	Company		and media	Northeast	operating	Relations Activity
	and			Securities,	conditions,	Record Sheet on
	production			Orient	business	www.cninfo.com.cn
	plant			Securities,	conditions,
				Donghai	project
				Securities,	progress, etc.
				Dongxing
				Securities,
				minority
				shareholders,
				Securities
				Times, etc
31 March	Online	Others	Others	Investors	Company	For details, please refer
2021	live stream			participating	and industry	to the Investor Relations
	platform:			in the 2020	overview,	Activity Record Sheet
	Panorama•			Annual Result	the	on www.cninfo.com.cn
	Interactive			Briefing of	Company's
	Platform			the Company	2020
	for Investors				operating
	Relationship				results
	(全景網•				and future
	投資者關係				prospects,
	互動平台)				project
					progress, etc.

15

IV FINANCIAL STATEMENTS

1. Financial Statements

1. Consolidated balance sheet

Prepared by: Shandong Chenming Paper Holdings Limited

31 March 2021

		Unit: RMB
Item	31 March 2021	31 March 2020
CURRENT ASSETS:
Monetary funds	17,928,720,606.11	17,759,537,598.98
Financial assets held for trading	133,349,089.17	192,907,800.62
Accounts receivable	2,131,776,277.60	1,984,931,665.82
Accounts receivable financing	1,071,559,674.38	488,385,666.76
Prepayments	970,225,012.16	964,290,512.36
Other receivables	2,328,858,634.34	2,417,240,559.46
Including: Interest receivable
Dividends receivable
Inventories	4,792,168,427.01	5,135,293,347.82
Non-current assets due within one year	4,177,625,745.65	4,222,744,207.34
Other current assets	2,994,706,976.55	2,716,918,695.85
Total current assets	36,528,990,442.97	35,882,250,055.01

16

Item	31 March 2021	31 March 2020
NON-CURRENT ASSETS:
Long-term receivables	3,564,138,570.89	4,658,884,857.95
Long-term equity investments	4,330,470,084.83	3,906,158,402.45
Other non-current financial assets	141,910,000.00	145,910,000.00
Investment properties	5,904,542,766.83	5,943,159,568.00
Fixed assets	37,069,924,037.14	37,651,706,658.97
Construction in progress	209,993,857.82	179,857,941.83
Right-of-use assets	203,959,508.33	205,876,719.75
Intangible assets	1,760,834,492.05	1,774,624,509.33
Goodwill	32,916,531.95	32,916,531.95
Long-term prepaid expenses	50,192,010.61	51,061,485.49
Deferred income tax assets	1,080,558,605.22	1,084,164,679.14
Other non-current assets	46,160,247.61	58,886,418.75
Total non-current assets	54,395,600,713.28	55,693,207,773.61
Total assets	90,924,591,156.25	91,575,457,828.62

17

Item	31 March 2021	31 March 2020
CURRENT LIABILITIES:
Short-term borrowings	33,268,267,316.37	32,793,992,957.86
Bills payable	3,432,666,717.36	2,998,936,736.34
Accounts payable	3,855,682,286.87	4,042,430,732.31
Contract liabilities	1,278,950,068.66	1,051,147,044.74
Staff remuneration payables	246,600,772.07	232,376,585.31
Taxes payable	577,871,369.35	652,647,840.63
Other payables	2,158,460,520.52	1,956,715,367.83
Including: Interest payable	124,127,590.49	178,992,959.85
Non-current liabilities
due within one year	6,455,050,444.78	7,160,949,615.93
Other current liabilities		157,037,833.35
Total current liabilities	51,273,549,495.98	51,046,234,714.30
NON-CURRENT LIABILITIES:
Long-term borrowings	7,910,917,576.83	8,077,150,979.15
Bonds payable	1,431,094,643.22	1,536,877,351.46
Lease liabilities	60,507,444.90	60,271,769.90
Long-term payables	2,097,419,701.30	2,295,309,357.74
Provisions	325,259,082.28	325,259,082.28
Deferred income	1,611,501,629.24	1,637,996,636.51
Deferred income tax liabilities	6,572,535.97	6,572,535.97
Other non-current liabilities	790,674,113.83	789,521,686.07
Total non-current liabilities	14,233,946,727.57	14,728,959,399.08
TOTAL LIABILITIES	65,507,496,223.55	65,775,194,113.38

18

Item		31 March 2021	31 March 2020
OWNERS' EQUITY:
Share Capital		2,984,208,200.00	2,984,208,200.00
Other equity instruments		3,234,750,000.00	5,473,500,000.00
Including: Preference shares		2,238,750,000.00	4,477,500,000.00
Perpetual bonds		996,000,000.00	996,000,000.00
Capital reserves		5,164,584,381.71	5,321,911,413.75
Less: Treasury shares		226,860,000.00	226,860,000.00
Other comprehensive income		-596,785,620.17	-561,686,607.66
Surplus reserves		1,212,009,109.97	1,212,009,109.97
General risk provisions		74,122,644.20	74,122,644.20
Retained profit		11,080,740,606.58	9,999,764,028.74
TOTAL EQUITY ATTRIBUTABLE
TO OWNERS OF THE COMPANY	22,926,769,322.29	24,276,968,789.00
Minority interest		2,490,325,610.41	1,523,294,926.24
Total owners' equity		25,417,094,932.70	25,800,263,715.24
TOTAL LIABILITIES
AND OWNERS' EQUITY		90,924,591,156.25	91,575,457,828.62
	Head in charge		Head of the
Legal Representative:	of accounting:	accounting department:
Chen Hongguo	Dong Lianming		Zhang Bo

19

2.	Balance sheet of the Company
				Unit: RMB
		Item	31 March 2021	31 March 2020
		CURRENT ASSETS:
		Monetary funds	5,486,271,398.73	4,720,330,804.07
		Bills receivable	2,056,450,000.00	1,470,720,000.00
		Accounts receivable	135,621,541.49	694,836,561.24
		Accounts receivable financing	34,707,031.58	24,339,933.19
		Prepayments	2,036,291,136.24	1,697,770,445.12
		Other receivables	10,188,381,508.11	10,637,425,503.02
		Including: Interest receivable		-
		Dividends receivable		200,000,000.00
		Inventories	684,167,021.66	637,293,495.29
		Non-current assets due within one year	90,210,433.35	146,934,211.22
		Other current assets	37,260,448.37	45,764,272.71
		Total current assets	20,749,360,519.53	20,075,415,225.86
		NON-CURRENT ASSETS:
		Long-term receivables	56,275,718.51	64,762,373.99
		Long-term equity investments	22,535,647,973.47	22,192,108,035.92
		Other non-current financial assets	141,910,000.00	141,910,000.00
		Fixed assets	3,923,747,756.69	3,984,339,880.51
		Construction in progress	81,012,306.96	80,192,749.46
		Intangible assets	531,192,360.51	534,900,368.31
		Deferred income tax assets	365,117,536.32	418,717,829.13
		Total non-current assets	27,634,903,652.46	27,416,931,237.32
		Total assets	48,384,264,171.99	47,492,346,463.18

20

Item	31 March 2021	31 March 2020
CURRENT LIABILITIES:
Short-term borrowings	12,447,825,609.09	10,929,616,612.59
Bills payable	9,384,833,589.13	7,603,416,890.27
Accounts payable	954,674,397.02	812,111,491.23
Contract liabilities	2,069,347,573.92	156,487,086.88
Staff remuneration payables	95,055,564.92	89,416,732.50
Taxes payable	106,605,422.38	147,669,266.97
Other payables	3,136,617,221.24	5,869,352,883.62
Including: Interest payable	47,051,472.24	97,497,305.56
Non-current liabilities
due within one year	1,386,461,648.99	2,374,029,490.27
Other current liabilities		312,130,833.35
Total current liabilities	29,581,421,026.69	28,294,231,287.68
NON-CURRENT LIABILITIES:
Long-term borrowings	1,254,500,000.00	1,295,000,000.00
Bonds payable	349,964,000.00	439,957,250.00
Long-term payables	540,701,875.78	631,776,192.80
Provisions	325,259,082.28	325,259,082.28
Deferred income	37,304,871.87	38,017,165.55
Other non-current liabilities	1,196,116,666.67	1,194,883,344.67
Total non-current liabilities	3,703,846,496.60	3,924,893,035.30
TOTAL LIABILITIES	33,285,267,523.29	32,219,124,322.98

21

Item	31 March 2021	31 March 2020
OWNERS' EQUITY:
Share Capital	2,984,208,200.00	2,984,208,200.00
Other equity instruments	3,234,750,000.00	5,473,500,000.00
Including: Preference shares	2,238,750,000.00	4,477,500,000.00
Perpetual bonds	996,000,000.00	996,000,000.00
Capital reserves	5,126,981,432.38	5,124,308,464.42
Less: Treasury shares	226,860,000.00	226,860,000.00
Surplus reserves	1,199,819,528.06	1,199,819,528.06
Retained profit	2,780,097,488.26	718,245,947.72
Total owners' equity	15,098,996,648.70	15,273,222,140.20
TOTAL LIABILITIES
AND OWNERS' EQUITY	48,384,264,171.99	47,492,346,463.18

22

3. Consolidated Income Statement

			Unit: RMB
		Amounts for	Amounts for
Item	the period	the prior period
I.	Total revenue	10,205,724,007.89	6,085,376,805.28
	Including: Revenue	10,205,724,007.89	6,085,376,805.28
II.	Total operating costs	8,699,358,923.27	5,834,610,012.18
	Including: Operating costs	7,237,915,113.40	4,562,294,089.65
	Taxes and surcharges	78,065,205.81	47,639,420.31
	Sales and distribution expenses	69,649,821.99	72,504,493.86
	General and administrative expenses	249,151,918.06	246,726,191.21
	Research and development expenses	365,485,850.44	253,652,714.07
	Finance expenses	699,091,013.57	651,793,103.08
	Including: Interest expenses	731,861,718.88	673,866,359.05
	Interest income	75,556,660.16	81,512,048.23
	Plus: Other income	58,431,534.65	60,795,590.78
	Investment income ("-" denotes loss)	62,891,682.38	89,156,680.14
	Including: Investment income from
	associates and joint ventures	45,311,682.38	76,715,510.22
	Gain on change in fair value
	("-" denotes loss)	-59,993,447.44
	Credit impairment loss ("-" denotes loss)	-118,711,577.64	-179,716,703.05
	Loss on impairment of assets
	("-" denotes loss)	-56,357.78	-164,217.76
	Gain on disposal of assets
	("-" denotes loss)	4,804,612.13	-16,937,727.55
III. Operating profit ("-" denotes loss)	1,453,731,530.92	203,900,415.66
	Plus: Non-operating income	9,178,708.39	29,326,528.55
	Less: Non-operating expenses	749,586.99	2,456,719.00

23

		Amounts for	Amounts for
Item		the period	the prior period
IV. Total profit ("-" denotes total loss)	1,462,160,652.32	230,770,225.21
Less: Income tax expenses	216,053,390.31	19,890,332.52
V. Net profit ("-" denotes net loss)	1,246,107,262.01	210,879,892.69
(I)	Classification according to the continuity
	of operation
	Net profit from continuing operations
	("-" denotes net loss)	1,246,107,262.01	210,879,892.69
(II) Classification according to ownership
1.	Net profit attributable to shareholders of the
	Company	1,179,076,577.84	202,790,856.25
2.	Profit or loss of minority interest	67,030,684.17	8,089,036.44
VI. Net other comprehensive income after tax	-35,099,012.51	-109,991,102.69
Net other comprehensive income after tax
	attributable to shareholders of the Company	-35,099,012.51	-109,991,102.69
(I)	Other comprehensive income that will be
	reclassified to profit and loss	-35,099,012.51	-109,991,102.69
	Exchange differences on translation	-35,099,012.51	-109,991,102.69
VII.Total comprehensive income	1,211,008,249.50	100,888,790.00
Total comprehensive income attributable to
	shareholders of the Company	1,143,977,565.33	92,799,753.56
Total comprehensive income attributable to
	minority interest	67,030,684.17	8,089,036.44
VIII.Earnings per share:
(I)	Basic earnings per share	0.365	0.019
(II) Diluted earnings per share	0.365	0.019

	Head in charge	Head of the
Legal Representative:	of accounting:	accounting department:
Chen Hongguo	Dong Lianming	Zhang Bo

24

4.	Income statement of the Company
				Unit: RMB
			Amounts for	Amounts for
		Item	the period	the prior period
		I. Revenue	2,613,450,941.85	1,916,635,173.20
		Less: Operating costs	1,922,596,656.63	1,492,710,855.82
		Taxes and surcharges	20,845,842.17	9,314,020.08
		Sales and distribution expenses	1,825,850.25	2,498,008.29
		General and administrative expenses	64,144,088.86	72,148,076.69
		Research and development expenses	106,717,546.36	61,093,032.27
		Finance expenses	127,483,129.49	227,917,229.09
		Including: Interest expenses	233,988,045.40	422,979,137.81
		Interest income	142,052,390.18	231,893,683.70
		Plus: Other income	903,193.98	1,085,293.68
		Investment income ("-" denotes loss)	1,814,669,937.55	501,463,589.70
		Including: Investment income from
		associates and joint ventures	-330,062.45	-1,636,410.30
		Credit impairment loss ("-" denotes loss)	24,671,113.05	17,806,046.25
		Gain on disposal of assets
		("-" denotes loss)	3,232,429.29	5,198,189.62

25

		Amounts for	Amounts for
Item	the period	the prior period
II.	Operating profit ("-" denotes loss)	2,213,314,501.96	576,507,070.21
	Plus: Non-operating income	332,512.00	3,006,242.05
	Less: Non-operating expenses	95,180.61	102,862.97
III. Total profit ("-" denotes total loss)	2,213,551,833.35	579,410,449.29
	Less: Income tax expenses	53,600,292.81	5,134,164.16
IV. Net profit ("-" denotes net loss)	2,159,951,540.54	574,276,285.13
	Net profit from continuing operations
	("-" denotes net loss)	2,159,951,540.54	574,276,285.13
V.	Total comprehensive income	2,159,951,540.54	574,276,285.13
VI. Earnings per share:
	(I) Basic earnings per share
	(II) Diluted earnings per share

26

5. Consolidated cash flow statement

			Unit: RMB
		Amounts for	Amounts for
Item	the period	the prior period
I.	Cash flows from operating activities:
	Cash received from sales of goods and rendering
	of services	10,744,320,121.77	6,083,538,589.42
	Tax rebates received	597,608.00	152,548.94
	Cash received relating to other operating
	activities	582,514,746.24	654,984,761.52
Subtotal of cash inflows from operating activities	11,327,432,476.01	6,738,675,899.88
	Cash paid for goods and services	6,594,672,121.55	5,294,624,400.87
	Cash paid to and for employees	284,568,485.66	262,530,875.99
	Payments of taxes and surcharges	653,100,300.70	193,288,988.67
	Cash paid relating to other operating activities	408,201,345.83	332,650,112.15
Subtotal of cash outflows from operating activities	7,940,542,253.74	6,083,094,377.68
Net cash flows from operating activities	3,386,890,222.27	655,581,522.20
II.	Cash flows from investing activities:
	Cash received from investment income	43,000,000.00
	Net cash received from disposal of fixed assets,
	intangible assets and other long-term assets	3,263,265.60	73,153,160.00
	Net cash received from disposal of subsidiaries
	and other business units	10,000,000.00	217,810,000.00
	Cash received relating to other investing
	activities	240,000,000.00	129,197,968.06
Subtotal of cash inflows from investing activities	296,263,265.60	420,161,128.06
	Cash paid for purchase of fixed assets,
	intangible assets and other long-term assets	83,746,279.84	57,107,045.84
	Cash paid on investments	400,000,000.00	32,253,000.00
Subtotal of cash outflows from investing activities	483,746,279.84	89,360,045.84
Net cash flows from investing activities	-187,483,014.24	330,801,082.22

27

	Amounts for	Amounts for
Item	the period	the prior period
III. Cash flows from financing activities:
Cash received from investments	900,000,000.00
Including: Cash received from subsidiaries from
minority investment	900,000,000.00
Cash received from borrowings	10,320,674,739.57	8,767,475,858.20
Cash received relating to other financing
activities	204,630,000.00	320,000,000.00
Subtotal of cash inflows from financing activities	11,425,304,739.57	9,087,475,858.20
Cash repayments of amounts borrowed	9,707,520,165.73	9,045,058,473.31
Cash paid for dividend and profit distribution or
interest payment	702,671,547.99	718,587,541.05
Cash paid relating to other financing activities	4,300,910,469.60	1,410,982,326.58
Subtotal of cash outflows from financing activities	14,711,102,183.32	11,174,628,340.94
Net cash flows from financing activities	-3,285,797,443.75	-2,087,152,482.74
IV. Effect of foreign exchange rate changes on cash
and cash equivalents	-6,328,260.97	-8,973,806.00
V. Net increase in cash and cash equivalents	-92,718,496.69	-1,109,743,684.32
Plus: Balance of cash and cash equivalents
as at the beginning of the period	4,389,169,963.79	2,890,328,027.41
VI. Balance of cash and cash equivalents as at the
end of the period	4,296,451,467.10	1,780,584,343.09

28

6. Cash flow statement of the Company

			Unit: RMB
		Amounts for	Amounts for
Item	the period	the prior period
I.	Cash flows from operating activities:
	Cash received from sales of goods and rendering
	of services	3,203,517,391.29	2,016,322,718.53
	Tax rebates received	90,900.00	-
	Cash received relating to other operating
	activities	36,255,390.79	80,132,375.79
Subtotal of cash inflows from operating activities	3,239,863,682.08	2,096,455,094.32
	Cash paid for goods and services	1,440,944,427.90	1,053,052,884.20
	Cash paid to and for employees	78,272,356.22	77,807,706.75
	Payments of taxes and surcharges	133,440,933.20	30,799,543.79
	Cash paid relating to other operating activities	61,160,034.75	98,434,983.32
Subtotal of cash outflows from operating activities	1,713,817,752.07	1,260,095,118.06
Net cash flows from operating activities	1,526,045,930.01	836,359,976.26
II.	Cash flows from investing activities:
	Cash received from investment income	2,015,000,000.00	500,000,000.00
	Net cash received from disposal of fixed assets,
	intangible assets and other long-term assets	92,435.99	1,153,160.00
	Net cash received from disposal of subsidiaries
	and other business units		217,810,000.00
	Cash received relating to other investing
	activities	240,000,000.00	129,197,968.06
Subtotal of cash inflows from investing activities	2,255,092,435.99	848,161,128.06
	Cash paid for purchase of fixed assets,
	intangible assets and other long-term assets		2,025,213.00
	Cash paid on investments	314,370,000.00	27,500,000.00
Subtotal of cash outflows from investing activities	314,370,000.00	29,525,213.00
Net cash flows from investing activities	1,940,722,435.99	818,635,915.06

29

	Amounts for	Amounts for
Item	the period	the prior period
III. Cash flows from financing activities:
Cash received borrowings	6,409,417,925.50	5,527,955,369.41
Cash received relating to other financing
activities		695,738,215.55
Subtotal of cash inflows from financing activities	6,409,417,925.50	6,223,693,584.96
Cash repayments of amounts borrowed	5,064,328,929.00	6,174,301,531.59
Cash paid for dividend and profit distribution or
interest payment	206,137,718.69	422,979,137.81
Cash paid relating to other financing activities	4,232,236,767.53	1,389,481,422.69
Subtotal of cash outflows from financing activities	9,502,703,415.22	7,986,762,092.09
Net cash flows from financing activities	-3,093,285,489.72	-1,763,068,507.13
IV. Effect of foreign exchange rate changes on cash
and cash equivalents	956,450.07	226,208.85
V. Net increase in cash and cash equivalents	374,439,326.35	-107,846,406.96
Plus: Balance of cash and cash equivalents as at
the beginning of the period	301,284,723.52	136,328,721.71
VI. Balance of cash and cash equivalents as at the
end of the period	675,724,049.87	28,482,314.75

30

1. Reason for Adjustment in the Financial Statement
2. 1. Adjustment to the relevant items in the financial statements at the beginning of the year due to the first adoption of the New Standards for Lease in 2021
   2. • Applicable √ Not applicable
   3. Reason for the retrospective adjustment to the comparative data in the prior period due to the first adoption of the New Standards for Lease in 2021
   4. • Applicable √ Not applicable

III. Auditors' Report

Has the first quarterly report already been audited yet?

• Yes √ No

The first quarterly report of the Company is unaudited.

By order of the Board

Shandong Chenming Paper Holdings Limited

CHEN HONGGUO

Chairman

Shandong, the PRC

19 April 2021

As at the date of this announcement, the executive Directors are Mr. Chen Hongguo, Mr. Hu Changqing, Mr. Li Xingchun and Mr. Li Feng; the non-executive Directors are Mr. Han Tingde and Mr. Li Chuanxuan; and the independent non-executive Directors are Ms. Yin Meiqun, Mr. Sun Jianfei and Mr. Yang Biao.

• For identification purposes only

31