Annual Results 2009

1. China Sunshine Paper Holdings Company Limited 中國陽光紙業控股有限公司 Interim Results 2010 Annual Results 2009 Stock code: 2002 Stock code: 2002 0

2. Disclaimer This presentation may contain forward-looking statements. Any such forward-looking statements are based on a number of assumptions about the operations of the China Sunshine Paper Holdings Company Limited (the “Company”) and factors beyond the Company's control and are subject to significant risks and uncertainties, and accordingly, actual results may differ materially from these forward-looking statements. The Company undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to the date of this presentation. The information contained in this presentation should be considered in the context of the circumstances prevailing at the time of its presentation and has not been, and will not be, updated to reflect material developments which may occur after the date of this presentation. The slides forming part of this presentation have been prepared solely as a support for oral discussion about background information about the Company. This presentation also contains information and statistics relating to China and the industry in which the Company operates. The Company has derived such information and data from unofficial sources, without independent verification. The Company cannot ensure that these sources have compiled such data and information on the same basis or with the same degree of accuracy or completeness as are found in other industries. You should not place undue reliance on statements in this presentation regarding such industry information. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of any information or opinion contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. Information and opinion contained in this presentation may be based on or derived from the judgment and opinion of the management of the Company. Such information is not always capable of verification or validation. None of the Company or any of its directors, officers, employees, agents or advisers shall be in any way responsible for the contents hereof, or shall be liable for any loss arising from use of the information contained in this presentation or otherwise arising in connection therewith. This presentation does not take into consideration the investment objectives, financial situation or particular needs of any particular investor. It shall not to be construed as a solicitation or an offer or invitation to buy or sell any securities or related financial instruments. No part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This presentation may not be copied or otherwise reproduced.

3. Agenda 1 Financial Review 2 Business Review 3 2010 Outlook and Future Strategies 4 Open Forum

4. FinancialReview

5. Financial Review – 1H2010 vs 1H2009

6. Revenue Breakdown by Products Sales of paper products continued to be the largest component of the revenue GP% of paper products reached 20.1%, mainly driven by the sharply increase in the average selling price of paper products in 1H 2010. Sales of raw materials was an one-off transaction GP Margin Revenue (RMB mn)

7. Revenue Breakdown by Different Segments Revenue Breakdown by Different Segments 51 m 42 m 33 m 42 m 92 m 168 m 205m 166 m 287 m 422 m 351 m • Thanks to the packaging paper industry has begun to pick up at a fast pace since 2010, sales of white top linerboard and light-coated linerboard recorded an increase by 20.3% and 72.8% respectively

8. Paper Products – ASP and GP Margin White Top Linerboard Light-coated Linerboard Core Board GP Margin ASP (RMB) GP Margin ASP (RMB) GP Margin ASP (RMB) • Gross profit margin of white top linerboard, lighted-coated linerboard and core board increased to 21.6%, 25.8% and 13.0% respectively • The overall gross profit margin of paper products increased from 12.9% in 1H2009 to 20.1% in 1H2010

9. Sales Volume White Top Linerboard Light-coated Linerboard Tonnes Tonnes Specialized Paper Products Core Board Tonnes Tonnes

10. Cost Structure Cost of Sales Breakdown 165 m 198 m 14 m 19 m 104 m 122 m 93 m 81 m 126 m 111 m 176 m 332 m • Raw materials costs (domestic and overseas recovered paper, kraft pulp and chemicals and others) was the largest component and it represented approximately 75.2% of the cost of sales for 1H 2010 (1H 2009: 73.3%)

11. Cost Structure (Approx. 80,000 tonnes) (Approx. 210,000 tonnes) (Approx. 23,000 tonnes)

12. Key Financial Ratios

13. Business Review

14. Results Highlights 1 Gross profit margin of the paper products increased from 12.9% in 1H2009 to 20.1% in 1H2010 2 The gross profit margin of light-coated linerboard, whose production volume will be increased by 500,000 tonnes by end of 2010, reached its historical high of 25.8% 3 Sustainable increase in ASP of the Group’s paper products, thanks to the recovery of China’s economy

15. Strategic co-operation agreements with leading consumer product manufacturers Relationships with Leading Brand Customers 14

16. Production Capabilities Currently 4 highly efficient production lines, totaling 650,000 tonnes production capacity The 5th production line with a designedannual production capacity of 500,000 tonnes of white top linerboard and light-coated linerboard, is expected to commence production in October 2010 Total production capacity will reach approximately 1,150,000 tonnes * Production line interchangeable for production of light-coated linerboard and white top linerboard

17. 1-2 7-8 Sales Representative Offices 7-8 1-2 3-6 3-6 Recovered Paper Collection Bases and Sales Representative Offices • Established 8 recovered paper collection bases and 22 sales representatives offices in China • Strategically located for convenient transportation to production facility in Weifang Harbin Existing recovered papercollection points: Shenyang Beijing Qingdao Inner Mongolia Jingjin Jinan/Linyi Hebei Yantai Zhoubian Jinan Qingdao Zhengzhou Xian Suzhou Nanjing Wuhan Shanghai Chengdu Hangzhou Chongqing Ningbo Northeast China Northern China Central Plains Eastern China Southern China Undeveloped Xiamen Guangzhou Shenzhen

18. 2010 Outlook and FutureStrategies

19. 2010 Outlook 1 The PRC Government’s continuous economic policy to boost domestic demand, which has positive influence on the Group’s major customers and hence their demand for our packaging papers 2 After the big scale closedown of substandard manufacturers policy in August 2009, the government will continue to eliminate substandard manufacturers with low efficiency or production unfriendly to environment

20. Strategies for Future Growth 1 The 5th production line is set to address the fast growing market demand for high-end packaging paper 2 Expand new recovered paper collection bases in second-tier cities while consolidate the existing bases 3 A subsidiary in the United States to purchase overseas recovered paper at bulk quantity with a lower price 4 Build-up a high-end printing factory in Kushan – strategic planning

21. Open Forum