Shan Dong Sun Paper Industry Joint Stock Co., Ltd.

Shandong Sun Paper Industry Joint Stock Co., Ltd. (Sun Paper) is a multinational paper-making and integrated forest-pulp-paper enterprise headquartered in Yanzhou District, Jining City, Shandong Province. Founded in 1982 and listed on the Shenzhen Stock Exchange in 2006, the company has established itself as a leader in the papermaking industry, with a commitment to innovation and sustainable development. Sun Paper has expanded its operations internationally, with investment projects in Laos and the United States. The company primarily engages in the production and sale of various paper products, including machine paper, wood pulp, and paper board, with a focus on industrial paper, biomass materials, and fast-moving consumer goods. Its leading products encompass Art Paper, Non-coated Culture Paper, Dissolving Pulp, Tissue Paper, and Kraft Linerboard, marketed under several brands such as "Golden Sun" and "Huaxia Sun." Sun Paper emphasizes technological innovation and environmental sustainability, investing significantly in research and development to enhance its product offerings while minimizing environmental impact.

1、We have carried out the diversified layout, centering on the papermaking industry chain. And we have adjusted the products matrix, adapting to the market. The current business scope of our company has covered industry paper, biomass new materials and fast consumer goods. With the continuous innovation on adjustment of the product structure and raw material structure, the main products’ configuration of our company is increasingly reasonable, ironing the periodic fluctuations of the industry to some extent, and effectively guaranteeing the continuous and stable development of our company. 2、The stable basic team for technology and management ensures that the company could have the best field management mode in the industry. In Sun Paper, there are large number elite talents in the industry. After years of accumulation, we have formed our own unique experience in the investment control and project management, keeping the company's project investment cost always at lower level in the industry. 3、Sun Paper has built a comparatively complete system of science and technology innovation, and has a professional, efficient and skillful technology research and development team. The annual investment portion on RD has been ranking at peer forefront. Our company organically integrates our own technical advantages and introduced high-end technology & equipment, by continuous digestion and absorption of the technology innovation and advanced equipment, making the enterprise gradually get on science track of innovation driven and endogenous growth. The company has always put the focus of RD on product structure adjustment and raw material structure adjustment, relying on the established development plan, combining the development trend of the industry. And the investment on RD work mainly focuses on total factor cost savings, revolving around the cost leading strategy. The new technologies and new processes that have been implemented and being developed have already reached the international first-class level, which is beneficial for our company to create the core competitiveness of the comprehensive cost continuously lower than the industry. 4、In the aspect of waste water treatment, our company continuously innovate the governance pattern, and make all indicators reach the international leading level, in accordance with the governance pattern of "staged processing and recycling based on quality". For solid waste treatment, we have basically realized the recycling of resources according to the principle of "reduction, resourcing and recycling". In terms of air pollution treatment, our company has completed the ultra-low air emission project, so that the major emissions are all stably discharged under certain standards. 5、In 2018, Sun Paper’s chemical pulp project with annual output of 300,000 tons in Laos has already been completed; During the reporting period，our company has started up the paper project with annual output of 1,200,000 tons in Laos. At present, each work item of the project is progressing steadily. The progressive implementation of the project with annual output of 1,200,000 tons is able to build Sun Paper’s forestry-pulp-paper integration project into a strong competitive and scale-advantaged paper pulp industrial base, which aims to solve our company’s problem of sustainable development。 The wholly-owned overseas subsidiary - Sun Bio Material (U.S.) Company will be responsible for the operation of the 700,000 tons of bio-refining project in Arkansas of the United States. Our company will carefully determine the project implementation schedule and products plan according to the permitting schedule and market demand situation. After the completion of the project, it is expected to be the most modern, most efficiently and most environmental friendly pulp and paper production line in North America.