Shandong Chenming Paper Holdings Limited provided earnings guidance for the year ended December 31, 2022. Net profit to be RMB 290 million ­ RMB 330 million. Year-on-year decrease as compared to the corresponding period of last year: 84.21% ­ 86.12%.

Net profit attributable to shareholders of the Company to be RMB 160 million ­ RMB 200 million. Year-on-year decrease as compared to the corresponding period of last year: 90.32% ­ 92.25%. Basic earnings per share to be RMB 0.024 per share ­ RMB 0.038 per share.

During the Reporting Period, due to the impact of the pandemic, the domestic market demand was insufficient, and the price of machine-made paper decreased as compared to last year, which affected the efficiency; at the same time, due to the increase in prices of wood chips, chemicals, raw coal and other raw materials as well as energy, the production cost increased significantly as compared to last year, resulting in a year-on-year decrease in gross profit margin. In response to the sluggish demand in the domestic market, the Company endeavoured to explore international markets and achieved year-on-year growth in sales and prices of paper exported; at the same time, the Company optimised its product mix and increased its external sales of pulp to enhance its profitability. With the gradual recovery of domestic demand, coupled with effective control of the cost side, the Company's profitability is expected to be effectively improved.