Largest White Top Linerboard Producer in China by Production Output in 2006, Sunshine Paper Commenced HKPO Today

Largest White Top Linerboard Producer in China by Production Output in 2006, Sunshine Paper Commenced HKPO Today

November 29, 2007

    HONG KONG, Nov. 29 /Xinhua-PRNewswire/ -- China
Sunshine Paper Holdings Company Limited ("Sunshine
Paper" or the "Company" and together with
its subsidiaries, the "Group", HKEx: 2002), a
leading white top linerboard manufacturer by production
output in 2006 in the PRC announces details of its listing
on the Main Board of The Stock Exchange of Hong Kong
Limited ("HKEx").

    The Global Offering of Sunshine Paper ("Global
Offering") comprises 100,000,000 Shares ("Offer
Shares").  Subject to clawback, 90,000,000 Shares, or
90% of the Offer Shares will initially be offered to
professional, institutional and/or other investors, through
the international placing ("International
Placing"); and the remaining 10,000,000 Shares,
representing 10% of the Offer Shares, will initially be
offered in Hong Kong Public Offer ("HK Public
Offer").  The Offer Price of Sunshine Paper ranges
between HK$5.75 and HK$7.45 per Share.

    Based on the mid-point of Offer Price of HK$6.60, it is
estimated that the Group will receive net proceeds from the
Global Offering of approximately HK$592.3 million (approx.
RMB577.1 million), after deducting the underwriting
commission and estimated expenses payable by the Company
but before exercise of the over-allotment option.  The net
proceeds from the Global Offering will be used for the
following purposes:

    -- Approx. HK$519.4 million (approx. RMB506.1 million)
will be used for 
       the purchase, installation and implementation of
various production 
       equipment and supporting facilities to produce white
top linerboard 
       and light-coated linerboard products ;
    -- Approx. HK$47.2 million (approx. RMB46.0 million)
will be used for 
       the expansion of the Group's network of recovered
paper collection 
       points;
    -- Approx. HK$20.6 million (approx. RMB20.0 million)
will be used for 
       the Group's research and development efforts;
    -- Approx. HK$5.1 million (approx. RMB5.0 million) will
be used for the 
       installation of the Group's ERP system at its
Weifang production 
       facilitates to enhance operating efficiencies.

    The HK Public Offering commenced on Thursday, 29
November 2007 and close at 12:00 noon on Tuesday, 4
December 2007.  Trading of the Company's shares on HKEx is
expected to commence on Wednesday, 12 December 2007. 

    BNP Paribas Capital (Asia Pacific) Limited is the Sole
Sponsor, Global Coordinator and Lead Manager of the Global
Offering.  BNP Paribas Capital (Asia Pacific) Limited and
BOCI Asia Limited are the Joint Bookrunners of the Global
Offering. 

    Sunshine Paper is a leading white top linerboard
manufacturer in China by production output in 2006.  It is
principally engaged in the production and sale of white top
linerboard, light-coated linerboard and core board. 
According to China Paper Association, Changle Century
Sunshine Paper Industry Co., Ltd., a key operating
subsidiary of the Group, was the largest producer of white
top linerboard by production output and one of the top
three largest producers of core board by production output
in China for the year ended 31 December 2006.  As at 30
June 2007, Changle Sunshine was the largest light-coated
linerboard producer in China in terms of production
capacity.