Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited Stockcode：000488 200488 Stockabbreviation：Chenming Paper Chenming B Announcement No.:2015-018 SHANDONG CHENMING PAPER HOLDINGS LIMITED 2015 First Quarter Report
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited I Important Notice
The board of directors (the “Board”), the supervisory committee (the “Supervisory Committee”), the directors (the “Directors”), supervisors (the “Supervisors”) and senior management (the “Senior Management”) of the Company hereby warrant that the contents of this quarter report are true, accurate and complete, and there are no false representations, misleading statements or material omissions, and 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, head of the Company, Dong Lianming, head in charge of accounting and Liu Jun, head of the accounting department (Accounting Officer), declare that they warrant the truthfulness, accuracy and completeness of the financial statements in this quarter report.
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited II Major financial data and change of shareholders
I. Major accounting data and financial indicators
Retrospective adjustment to or restatement of the accounting data for prior years by the Company due to change of accounting policies and correction of accounting errors
□ Yes √No
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||This reportingperiod|Correspondingperiod of prior year|Increase/decreasecompared to thecorrespondingperiod of theprior year|
|Revenue (RMB)|4,456,654,640.64|4,078,069,314.47|9.28%|
|Net profit attributableto shareholders of theCompany (RMB)|96,137,359.80|81,273,928.14|18.29%|
|Net profit afterextraordinary gains orlosses attributable toshareholders of theCompany (RMB)|47,531,100.97|-48,792,027.97|197.42%|
|Net cash flows fromoperating activities(RMB)|-524,893,745.34|631,844,125.85|-183.07%|
|Basic earnings pershare (RMB pershare)|0.05|0.04|25.00%|
|Diluted earnings pershare (RMB pershare)|0.05|0.04|25.00%|
|Rate of return on netassets on weightedaverage basis|0.69%|0.58%|0.11%|
||As at the end of thereporting period|As at the endof the prior year|Increase/decrease asat the end of thereporting periodcompared to the endof the prior year|
|Total assets (RMB)|59,632,819,205.30|56,822,026,545.21|4.95%|
|Net assets attributableto shareholders of theCompany (RMB)|14,005,559,500.95|13,917,343,301.15|0.63%|

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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited Items and amounts of extraordinary gains or losses
√ Applicable □Not applicable
Unit: RMB
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|Item|Am ounts for theperiod from thebeginning of theyear to the end ofthe reportingperiod|Note|
|Profit or loss from disposal ofnon-current assets (includingwrite-off of provision for assetsimpairment)|3,357,994.26||
|Government grants (except for thegovernment grants closely related tothe normal operation of the Companyand granted constantly at a fixedamount or quantity in accordancewith a certain standard based on statepolicies) accounted for in profit orloss for the current period|26,832,002.10||
|Payment for use of funds fromnon-financial institutions accountedfor in profit or loss for the currentperiod|25,000,000.00||
|Non-operating gains and losses otherthan the above items|2,154,756.87||
|Less:Effect of income tax|8,763,655.65||
|Effect of minority interest (after tax)|-25,161.25||
|Total|48,606,258.83|—|

 Notes for theCompany„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
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited 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. II. Total number of shareholders and the shareholding of the top ten
shareholders as at the end of the reporting period
1. Total number of shareholders of ordinary shares and the shareholding of the top ten shareholders of ordinary shares as at the end of the reporting period
Unit: share
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|Total number of shareholders of ordinary shares asat the end of the reporting period||121,187 holders, of which 94,470 were holders of A shares, 26,175holders of B shares and 542 holders of H shares.|||||
|Shareholding of the top ten shareholders of ordinary shares|||||||
|Name of shareholders|Nature ofshareholders|Percentage ofshareholding|Number ofshares held|Number ofRestrictedshares held|Share pledged orlocked-up||
||||||Status ofshares|Number|
|HKSCC NOMINEESLIMITED|Overseas legalperson|18.11%|350,642,500|0||0|
|SHOUGUANG CHENMINGHOLDINGS COMPANYLIMITED|State-owned legalperson|15.13%|293,003,657|0|Pledged|146,500,000|
|PLATINUM ASIA FUND|Overseas legalperson|0.83%|16,165,052|0||0|
|RONGTONG NEW BLUECHIP SECURITIESINVESTMENT FUND|Others|0.77%|15,000,050|0||0|
|BBH A/C VANGUARDEMERGING MARKETSSTOCK INDEX FUND|Overseas legalperson|0.54%|10,417,538|0||0|
|JIN Xing|Domestic naturalperson|0.46%|8,899,300|0||0|
|XIAMEN INTERNATIONALTRUST CO., LTD. —XIAMEN TRUST —TIANCHEN NO. 1 NEWSTRUCTUREDSECURITIESINVESTMENTASSEMBLED FUNDTRUST PLAN|Others|0.39%|7,620,132|0||0|
|CHINA CONSTRUCTIONBANK — BANK OFCOMMUNICATIONSSCHRODERS THEMESELECTED DYNAMICASSET ALLOCATIONMIXED TYPE FUND|Others|0.33%|6,447,300|0||0|
|CHEN Hongguo|Domestic naturalperson|0.33%|6,434,527|0||0|
|LSV EMERGING MARKETSEQUITY FUND, L.P.|Overseas legalperson|0.32%|6,102,800|0||0|

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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
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|Shareholdings of the top ten shareholders of non-restricted ordinary shares||||
|Name of shareholders|Number ofnon-restrictedordinary sharesheld|Share class||
|||Share class|Number|
|HKSCC NOMINEES LIMITED|350,642,500|Overseas listedforeign shares|350,642,500|
|SHOUGUANG CHENMING HOLDINGS COMPANYLIMITED|293,003,657|RMB ordinaryshares|293,003,657|
|PLATINUM ASIA FUND|16,165,052|Domestic listedforeign shares|16,165,052|
|RONGTONG NEW BLUE CHIP SECURITIESINVESTMENT FUND|15,000,050|RMB ordinaryshares|15,000,050|
|BBH A/C VANGUARD EMERGING MARKETS STOCKINDEX FUND|10,417,538|Domestic listedforeign shares|10,417,538|
|JIN Xing|8,899,300|RMB ordinaryshares|1,860,500|
|||Domestic listedforeign shares|7,038,800|
|XIAMEN INTERNATIONAL TRUST CO., LTD. —XIAMEN TRUST — TIANCHEN NO. 1 NEWSTRUCTURED SECURITIES INVESTMENTASSEMBLED FUND TRUST PLAN|7,620,132|RMB ordinaryshares|7,620,132|
|CHINA CONSTRUCTION BANK — BANK OFCOMMUNICATIONS SCHRODERS THEME SELECTEDDYNAMIC ASSET ALLOCATION MIXED TYPE FUND|6,447,300|RMB ordinaryshares|6,447,300|
|CHEN Hongguo|6,434,527|RMB ordinaryshares|6,434,527|
|LSV EMERGING MARKETS EQUITY FUND, L.P.|6,102,800|Domestic listedforeign shares|6,102,800|
|Connected relationship or connected party relationshipamong the above shareholders|Shouguang Chenming Holdings Company, a state-owned legalperson shareholder, is not connected with any of theshareholders above. They are not persons acting in concertunder Administration of Disclosure of Information on theChange of Shareholdings in Listed Companies Procedures.Save for the above, it is not aware that any other shareholdersof tradable shares are persons acting in concert and it is alsonot aware that any other shareholders of tradable shares areconnected with each others.|||

Whether an agreed repurchase transaction was entered into during the reporting period by the top ten shareholders of ordinary shares and top ten shareholders of non-restricted ordinary shares of the Company
□ Yes √No
The top ten shareholders of ordinary shares and the top ten shareholders of non- restricted ordinary shares of the Company did not enter into any agreed repurchase transaction during the reporting period.
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited III Material matters
I. Details and reasons for changes of major accounting statement items and financial indicators during the reporting period
√ Applicable □ Not Applicable
(I) Analysis of the assets and liabilities of the Company
Unit: RMB
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|Item|31 March 2015|31 December 2014|Change|Reasonsfor change|
|Prepayments|3,336,802,106.47|1,838,017,454.90|81.54%|(1)|
|Long-term receivables|1,810,797,634.25|1,420,598,667.99|27.47%|(2)|
|Available-for-salefinancial assets|109,000,000.00|73,000,000.00|49.32%|(3)|
|Bills payable|2,072,049,789.77|1,598,110,792.85|29.66%|(4)|
|Interest payable|270,444,257.14|150,047,305.50|80.24%|(5)|

 Explanation of the reasons leading to the major changes:
(1) Prepayments increased by81.54% mainly due to an increase in prepayments for raw materials by the Company and the new financial leasing business of Financial Leasing Company, a sub-subsidiary of the Company.
(2) Long-term receivables increased by27.47% mainly due to the new financial leasing business of Financial Leasing Company, a sub-subsidiary of the Company.
(3) Available-for-sale financial assets increased by49.32% mainly due to investment in Shanghai Leadbank Asset Management Co., Ltd. by Financial Leasing Company.
(4) Bills payable increased by29.66% mainly due to an increase in payment for goods by bills by the Company.
(5) Interest payable increased by80.24% mainly due to the provision for interest on corporate bonds and medium-term notes by the Company.
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited (II) Reasons for significant year on year changes of income statement items during the reporting period
Unit: RMB
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|Item|January - March 2015|January - March 2014|Change|Reasonsfor change|
|Business taxes andsurcharges|20,088,579.62|12,633,196.68|59.01%|(1)|
|General andadministrativeexpenses|305,525,329.60|242,648,227.81|25.91%|(2)|
|Loss on impairment ofassets|-69,943.68|-9,028,147.99|99.23%|(3)|
|Investment income|23,610,110.99|-3,377,138.33|799.12%|(4)|
|Non-operating income|37,469,403.87|176,033,614.08|-78.71%|(5)|
|Non-operatingexpenses|935,152.21|7,932,048.84|-88.21%|(6)|
|Income tax expenses|67,828,016.18|21,288,605.27|218.61%|(7)|

 Explanation of the reasons leading to the major changes:
(1) Business taxes and surcharges increased by59.01% mainly due to the new financial leasing business of Financial Leasing Company, a sub-subsidiary of the Company.
(2) General and administrative expenses increased by25.91% mainly due to the increase in research and development investment of Meilun Paper and Zhanjiang Chenming, both subsidiaries of the Company.
(3) Loss on impairment of assets increased by99.23% mainly due to a lower decrease of accounts receivable as compared to last year.
(4) Investment income increased by799.12% mainly due to the loss on disposal of Shandong Chenming Xinli Power Co., Ltd. incurred by Chenming Power last year.
(5) Non-operating income decreased by78.71% mainly due to the gain on disposal of intangible assets by Jiangxi Chenming, a subsidiary of the Company, last year.
(6) Non-operating expenses decreased by88.21% mainly due to the decrease in
loss on disposal of non-current assets by the Company.
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited (7) Income tax expenses increased by218.61%, mainly due to the higher profitability level of the Company as compared to last year.
(III) Analysis of cash flows during the reporting period
Unit: RMB
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|-|-|-|-|-|
|Item|Amounts for theperiod|Amounts for thecorresponding periodof the prior year|Change|Reasonsfor change|
|Net cash flows fromoperating activities|-524,893,745.34|631,844,125.85|-183.07%|(1)|
|Net cash flows frominvesting activities|-871,978,295.42|-722,180,627.88|-20.74%|(2)|
|Net cash flows fromfinancial activities|1,430,099,524.47|225,246,123.67|534.91%|(3)|

 Explanation of the reasons leading to the major changes:
(1) Net cash flows from operating activities decreased by183.07% mainly due to the new financial leasing business of Financial Leasing Company, a sub- subsidiary of the Company.
(2) Net cash flows from investing activities decreased by20.74% mainly due to the acquisition of fixed assets and intangible assets by the Company for its projects.
(3) Net cash flows from financial activities increased by534.91% mainly due to an increase in borrowings as a result of project investment and the new financial leasing business of Financial Leasing Company.
II. Progress in respect to material matters and analysis of the related effects and solutions
√ Applicable □ Not Applicable
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|Material matter|Date ofdisclosure|Temporary access to disclosure materials|
|Capital increase of ShandongChenming FinancialLeasing Co., Ltd.|27 March 2015|http://www.cninfo.com.cn, announcement number: 2015-009.|
|Non-public offer ofpreference shares|3 March 2015|http://www.cninfo.com.cn, announcement number: 2015-006.|
||27 March 2015|http://www.cninfo.com.cn, the annual report for 2014.|

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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited III. Undertakings made by the Company and shareholders interested in5% or m ore of the shares of the Company made in the reporting period or subsisting to the reporting period
√ Applicable □ Not Applicable
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|Undertaking|Partyinvolved inundertaking|Details of undertaking|Undertakingdate|Term|Particulars ontheperformance|
|Undertaking on changein shareholdingstructure||||||
|Undertaking made inoffering documents orshareholdingalternation documents||||||
|Undertaking made duringasset reconstruction||||||
|Undertaking made oninitial public offeringor refinancing|ShouguangChenmingHoldingsCo., Ltd.|(1) Shouguang ChenmingHoldings Co., Ltd(“Shouguang ChenmingHoldings”) shall not engage,whether solely, jointly, or byrepresenting itself or anyother persons or companies,and shall not procure itsassociates (as defined in TheListing Rules of Hong KongStock Exchange) to engage,in any business whichcompetes with the businessof the Company and itssubsidiaries (“ChenmingGroup” or “we”) directly orindirectly, in any countryand region which ourbusiness exists (or any partof the world if in any formof electronics business), orin any business that directlyor indirectly competes withChenming Group‟s businesswhich we operate from timeto time (including but notlimited to any business inthe form of soleproprietorship, joint venturesor acquisitions, or holdinginterests directly orindirectly in suchenterprises, or by any othermeans); (2) in the event that|22 May 2008|During theperiod whenChenmingHoldings wasthe majorshareholder ofthe Company|Strictlyimplemented|

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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
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|Undertaking|Partyinvolved inundertaking|Details of undertaking|Undertakingdate|Term|Particulars ontheperformance|
|||Shouguang ChenmingHoldings is required by itsbusiness to, whether solely,jointly, or by representingitself or any other persons orcompanies, engage inbusiness which directly orindirectly competes againstthe business of ChenmingGroup, or obtain anybusiness opportunity whichdirectly or indirectlycompetes against thebusiness of Chenming Group,it shall endeavour to procurethat Chenming Group shallhave priority to obtain theright to operate suchbusiness or to obtain suchbusiness opportunity; (3) ifShouguang ChenmingHoldings is in breach of theabovementionedundertakings, it shallindemnify the Company forany loss caused by suchbreach and the Companyshall have the right toacquire all businesses ofShouguang ChenmingHoldings, which directly orindirectly compete with thebusinesses of our Group, atmarket price or cost price(whichever price is lower);(4) Shouguang ChenmingHoldings shall not make useof its position as thecontrolling shareholder (asdefined in The Listing Rulesof Hong Kong StockExchange) of our Group tojeopardise the legal interestsof Chenming Group and itsshareholders with otherpersons or companies or ontheir behalf.||||

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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
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|Undertaking|Partyinvolved inundertaking|Details of undertaking|Undertakingdate|Term|Particulars ontheperformance|
||ShouguangChenmingHoldingsCo., Ltd.|(1) According to the plan ondefective properties of theCompany, ShouguangChenming Holdings Co., Ltd(“Shouguang ChenmingHoldings”) has guaranteedand undertaken that:according to the applicationof the Company, fordefective property(ies)owned by the Company andits holding subsidiarycompany which situated inthe administrative area ofShouguang city, ShouguangChenming Holdings willpurchase it(them) and haveit(them) being transferred toitself pursuant to the law inaccordance with the result ofthe related asset valuation ifthe Company decides totransfer and dispose ofit(them) and there is noother transferee; (2) beforethe Company transfers anddisposes of the defectiveproperties pursuant to thelaw, if the Company suffersany economic losses due tothe defects of the title(including but not limited todamages, penalties andrelocation costs), ShouguangChenming Holdings will bearsuch economic losses; (3)during the regulatory processtaken to the defectiveproperties of buildings andland of subsidiaries of theCompany situated outside thelocal areas (outside theadministrative area ofShouguang city), theeconomic losses such aspenalties or relocation costsimposed by competentadministrative authorities tobe borne by the subsidiariesarising from defects ofinsufficient title documentsshall be paid pursuant to thelaw by Shouguang ChenmingHoldings after verification.|16 January 2008|During theperiod whenChenmingHoldings wasthe majorshareholder ofthe Company|Strictlyimplemented|

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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited
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|Undertaking|Partyinvolved inundertaking|Details of undertaking|Undertakingdate|Term|Particulars ontheperformance|
|Other undertakings madeto minorityshareholders of theCompany||||||
|Does the undertakingperformed timely?|Yes|||||

IV. Estimate of the operating results for January - June 2015
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
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Report for the First Quarter of 2015 of Shandong Chenming Paper Holdings Limited V. Registration report on reception of research investigations,
communications and interviews during the reporting period
√Applicable□ Not Applicable
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|Date ofreception|Place ofreception|Manner ofreception|Class of partiesaccommodated|Partiesaccommodated|Main topics ofdiscussion andinformationprovided|
|13 January 2015|The Company‟sconference room|On-site researchinvestigation|Institution|Guotai JunanSecurities Co. Ltd.|Recent productionand operation of theCompany anddevelopment of theindustry|
|13 January 2015|The Company‟sconference room|On-site researchinvestigation|Institution|27 fund companiesincluding ShenyinWanguo, BOCSchroder Fund,HuaAn Funds, GTJAAllianz Funds,Fullgoal Fund, ZhongOu AMC, Lion Fund,CPIC, Harfor Fund,Caitong Securities,Franklin TempletonSealand Fund,Baoying Fund,Caitong Fund,First-Trust Fund,Tongben Investment,Oriental Capital,Minsheng RoyalFund, HFTInvestment, ChinaLife AssetManagement, YongjinAsset Management,CICC, ICBCCS,CITIC PE, ChinaAMC, MinsenInvestment andothers|Recent productionand operation of theCompany anddevelopment of theindustry|
|28 January 2015|The Company‟sconference room|On-site researchinvestigation|Institution|Brilliance AssetManagement Limited|Recent productionand operation of theCompany anddevelopment of theindustry|

Shandong Chenming Paper Holdings Limited
27 April 2015
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