China Shengda Packaging Group Inc.

China Shengda Packaging Group Inc. Corporate Presentation November 2011

Safe Harbor Statement Statements in this presentation may be "forward-looking statements" within the meaning of federal securities laws. You can identify these forward-looking statements by terminology such as “will”, “expects”, “anticipates”, “estimates”, “plans”, “future”, “intends”, “believes” and similar statements. The matters discussed herein that are forward-looking statements are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. Forward-looking statements involve risks and uncertainties that may cause actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial condition expressed or implied in any forward-looking statements. Such factors include, but are not limited to the company's ability to complete product orders, coordinate product design with its customers, ability to expand and grow its distribution channels, political and economic factors in the People's Republic of China, the Company's ability to find attractive acquisition candidates, dependence on a limited number of larger customers and other factors detailed in the Company’s filings with the Securities and Exchange Commission. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous potential risks and uncertainties. Forward-looking statements made during this presentation speak only as of the date on which they are made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this presentation. Because forward-looking statements are subject to risks and uncertainties, we caution you not to place undue reliance on any forward-looking statements. All written or oral forward-looking statements by the Company or persons acting on its behalf are qualified by these cautionary statements. We undertake no obligation to publicly update or revise any forward-looking statements or other information or data contained in this presentation, whether to reflect any change in our expectations with respect to such statements or any change in events, conditions or circumstances on which any such statements are based or otherwise.

Equity Snapshot Note: * Net income attributable to China Shengda Packaging’s common stockholders Ticker Symbol: NASDAQ:CPGI Share Price (Nov 15, 2011): $0.91 52 Week Range: $0.55 - $4.20 Market Cap: $35.3 m Shares Outstanding (Nov 10, 2011):
38.8 m
Net Cash (Sep 30, 2011):
22.4 m
Revenues (TTM) $120.1 m Net Income (TTM) *
$11.5 m
P/E (TTM) * 3.1x Fiscal Year End: December 31

Investment Highlights Strategic Location with Dedicated Sales Coverage Vast and Fast-Growing Market with Consolidation Opportunities Long-term, High-Quality, and Diversified Customer Base Leading Market Position with a Solid Reputation Seasoned Management Team with Sound Market Knowledge Proven Track Record of Profitability and Cash Flow Strong Customer Oriented Research & Development Capabilities

Who We Are Paper Manufacturing Corrugated Paperboard Manufacturing Corrugated Carton Manufacturing Printing & Processing Packaging Process Corrugating Process Food & Beverage Home Appliances IT & Electronics Pharma-ceuticals Daily Necessities Machinery Kraft Paper Corrugating Medium Corrugated Paperboards Corrugated Cartons End Carton Users Single-layer Double-layer Triple-layer Flexo-printed Color-printed Corrugated Paperboards Corrugated Cartons Applications Food & Beverage Home Appliances & IT Machinery

Corporate Overview Key Financials
($US mm) 2008 2009 2010
Total Rev.: 92.3 94.7 130.1
EBITDA: (1) 14.0 17.0 26.6
Net Income: 9.0 12.2 19.3
Incorporated in 2004 with origins traced back to 1983
Headquarter in Hangzhou, Zhejiang, PRC
Design, manufacturing and sale of flexo-printed and color-printed paper cartons
Production Capacity as of November 2011: 498 million square meters
Four subsidiary companies
Business Overview Customer
The largest domestic paper packaging company in the Yangtze River Delta (YRD) and one of the largest in China
No. 1 domestic paper packaging company ranked by the China Packaging Federation in 2009
Market Position
Many Fortune 500 companies and PRC top 500 enterprises
Top customers include Samsung, Panasonic, Wahaha, Nongfu Spring, etc
Note: (1) EBITDA is operating income plus depreciation and amortization 1983 2006 2010 2009 2004 2008 1999 Advanced Production Facilities

Fast-Growing Corrugated Carton Industry Source: China Packaging Federation, China National Bureau of Statistics, S&P Consulting China Corrugated Paper Carton Sales Volume Growth Per Capita Paper Packaging Consumption (2009) Rapid Economic Growth Strong Domestic Consumption Rising Environmental Concerns Favorable Government Policies Key Industry Growth Drivers

Yangtze River Delta with Robust Demand China Corrugated Carton Market Geographic Breakdown in 2009 Corrugated Carton Production in East China Notes: (1) East China includes Shanghai, Zhejiang, Jiangsu, Shandong, Anhui, Jiangxi, Fujian provinces; (2) Yangtze River Delta includes Shanghai, Zhejiang, Jiangsu provinces Source: China National Bureau of Statistics, Company’s estimate
China Shengda Packaging is located in Hangzhou, within the Yangtze River Delta (YRD) of East China
East China is the most affluent region amongst six major regions in China with the highest per capita GDP
East China is the largest corrugated carton-production region of China, representing 47% of the total Chinese corrugated carton production in 2009
East China’s production of corrugated carton grew at a CAGR of 19% from 2005 to 2009
East China 47% YRD 29%

Key Industry Trends
Fragmented market with over 20,000 players (top ten players account for less than 10%)
Horizontal integration is expected based on global experience
China Shengda Packaging is exploring horizontal acquisition opportunities
Increasing emphasis on high quality packaging, including color-printing, pre-printing, etc.
China Shengda Packaging provides high-quality packaging with its strong R&D, advanced production facilities and stringent quality control
Manufacturers are often involved in the design, manufacturing, storage and shipment of corrugated cartons for customers
China Shengda Packaging provides highly customized products to a diverse customer base
Manufacturers usually limit sales area within a radius of 300 to 500 km
High barrier to entry
Based in YRD, the most affluent region in China, China Shengda Packaging plans to further expand geographic coverage and sales network Corrugated Carton Industry Consolidation Trends Rising Demand for Quality Sales Radius Limitation Increasing Customer Orientation

Leading Market Position with Strong Reputation
The largest domestic paper packaging company in Yangtze River Delta with a market share of 4.0% in YRD
One of the largest domestic paper packaging companies in China
No. 1 domestic paper packaging manufacturer in 2009 by China Packaging Federation
Leading Market Position Major Awards Comparison of Top Domestic Players
The only company named “Chinese Development and Production Base of Paper Packaging” by the State Economic and Trade Commission and China Packaging Federation
Awarded the “China Packaging Leading Enterprise Award” by China Packaging Federation
The only company in the domestic paper packaging industry with Export Exemption for Inspection Certificate
Recognized as “Chinese Well-Known Trademark”
Notes: (1) In million of sq. meters; (2) Predecessor of China Shengda Packaging; Source: Public filing and Company research China Shengda Xiamen Hexing Shenzhen MYS Ticker CPGI 002228.CH 002303.CH Year of Establishment 1983 (2) 1993 2000 09 Capacity (1) 408 490 86 09 Sales Volume (1) 307 222 75 09 Market Share 0.84% 0.61% 0.20% # of Comprehensive Factories 4 4 1 Area Focus Zhejiang, Jiangsu & Shanghai Fujian, Hubei & Jiangsu Guangdong Main Downstream sectors Diversified Food /Electronics IT / Electronics

Strategic Location with Dedicated Sales Coverage Headquarters and existing production facilities Current customer service centers Dedicated Sales Force Strategic Location Ningbo Shanghai Hangzhou Suzhou Taizhou
Located in Hangzhou, Zhejiang, within the YRD, which accounts for ~ 20% of China’s GDP
YRD has more robust economic growth, higher per capita GDP and stronger consumption power in China
Five customer service centers located in Hangzhou, Shanghai, Suzhou, Taizhou, and Ningbo
Sales and marketing department with 40 sales personnel and marketing executives
Direct sales and marketing activities
Advertisements and publications
Participation in trade fair and exhibitions
Market leader in YRD 300-500 km sales radius limit High Barriers to Entry Established Sales Network Jiangsu Province Zhejiang Province

Growing Customer Base Growing Customers #s How to Acquire Customers
Leading position and strong reputation benefit bidding process
Advanced facilities, including strong color- and pre-print capabilities
Instant customer response and efficient operation
Value-added services, e.g. packaging design, 24-hour after-sales support
Word-of-Mouth and cross-selling
Decreased Customer Concentration Diversified End Markets (1) For the Year of 2010 Note: (1) Total percentage does not show 100% due to rounding

Long-Term Relationship with Key Customers Selected Key Customers
Many of our customers are Fortune 500 companies and PRC top 500 enterprises
Entered into strategic alliances with key customers as preferred supplier
Solid customer relationships benefit us with high barrier to entry
Rapid Growth Cross-Selling Word-of-Mouth Customer Industry % of Rev In 2010 Years of Business HangZhou WaHaHa Beverage <5% >20 HangZhou Cigarette Cigarette <5% >20 NongFu Spring Beverage <5% >12 HangZhou Panasonic Home Appliances 6.63% >10 SuZhou Samsung Electronics 5.19% >5 CR Snow Breweries Beverage <5% >5 Zhejiang Shell Chemical <5% >5 Shuanghui Group Food <5% >5 Anheuser-Busch InBev Beverage <5% 4

Strong R&D Capabilities
A team of 30 professionals
Customer-oriented research and development effort
R&D expenditure rise to $2.6M in 2010, up~550% from 2009
Customer Needs & Market Trends Platform In-house R&D team Collaborative Partners Achieve-ments Authorized Provincial-Level Technology Center in Zhejiang and National-Level in application Granted National Hi-Tech Enterprise with preferential tax rate of 15% to Great Shengda 6 collaborative R&D projects in 2010 9 patents + 7 patent application Goal

Seasoned Management Team
21 years of experience in paper packaging industry
Joined Zhejiang New Shengda as GM in 1999
Named “China Prominent Packaging Entrepreneur”
Master degree in Packaging Engineering from Zhejiang University
Mr. Nengbin Fang Chairman & President
Over 20 years of experience in product & technology management
Joined Zhejiang New Shengda in 1998
Member of the drafting committee of the China National Standard for Single and Double Corrugated Boxes for Transport Packages in 2008
Bachelor degree in Electronics Engineering from Beijing University of Aeronautics and Astronautics
Mr. Daliang Teng CEO
Five years of accounting & auditing experience with PricewaterhouseCoopers in Australia and China
I nvestment Director of Wealthcharm Investments Limited, a private investment company
CPA China, CPA Australia and CFA Charter holder
Master's degree in Applied Finance from Macquarie University
Mr. Ken He CFO
13 years of experience in the packaging industry
Joined Zhejiang New Shengda as VP in 1999
Vice President and General Manager of Marketing at Great Shengda since 2004
Ms. Congyi Fang Director, VP & GM of Marketing of Great Shengda Reputable entrepreneur in packaging industry Extensive industry experience Deep knowledge of US GAAP Sharp business acumen and skills

Financial Highlights

Financial Metrics Revenue Net Income Gross Margin In US$ Millions In US$ Millions In US$ Millions

Operating Statistics Revenue Drivers Revenue per Employee (1) Revenue Breakdown by Carton Type In US$ Note: (1) Calculated as revenue / number of employee at year/period end Average Selling Price Sales Volume 84,091 9Mos 2 0 11 YoY Decrease = 1.7% YoY Growth = 3.2% 60,767 58,448 63,704 200 8 200 9 20 10 245 241 0.3 7 0.3 9 9Mos 2010 9Mos 2011 9Mos 2010 9Mos 20 1 1 In Millions of Sq. Meter In US$/ Sq Meter

Growth Strategy

Expand Production Capacity Production Capacity Expansion
New Capacity Contribution
60-80 million sq meters from targeted acquisition of carton factory
Potential capacity released from equipment upgrade and efficiency increase
High Margin Capability Expansion
We plan to shift our product mix to high margin segments, including color-printed cartons, pre-printed cartons, as they:
Expect to grow faster due to increasing consumption standards
Enjoy higher gross margin than other segments
Vertical Expansion
Great Support from Shengda Group including a fair-priced plot of land, experienced management team and related government license at no additional cost
Jiangsu Shuangsheng Paper Technology Development Co., Ltd. founded in September 2011
Time to be completed Capital expenditure Capacity
Phase I October 2012 $34.2 million 100,000 – 150,000 tons
Phase II Dec 2012 $18.2 million 100,000 – 150,000 tons
Total $52.4 million 250,000 – 300,000 tons
408 4 98 570-600 2009 20 1 1 201 2 E In Millions of Sq. Meters

Expand Geographic Coverage Strengthen R&D and Operational Efficiency Headquarters and existing production facilities Current customer service centers New factory and warehouse New customer service centers Current coverage provinces Target coverage provinces Geographic Coverage Expansion Strength en R&D capabilities
Staff training
Equipment upgrade
Collaborative program
Enhance design service capabilities through acquisition
Improve Operational Efficiency
Improve manufacturing efficiency and product quality
Develop cost-saving processing
Maintain strict cost control
Strategic partnership agreement with key suppliers to order raw materials at a fixed price for certain period (ie. three months to half year)
Jiangsu Province Zhejiang Province Anhui Province Hangzhou Suzhou Ningbo Taizhou Shanghai Nanjing Wuhu

Pursue Strategic Acquisitions Printing & Processing Packaging Process Corrugating Process Food & Beverage End Customers Home Appliances IT & Electronics Pharmaceuticals Daily Necessities Machinery Kraft Paper Corrugating Medium Corrugated Paperboards Corrugated Cartons Horizontal Consolidation Consolidation Opportunities
Looking to acquire small carton factories with annual capacity of 60 to 80 million sq. meters
Expect to duplicate our operational model with similar financial profitability
Estimated consideration of $15 M; can fund excess consideration with operating cash flow

Why You Should Invest in CPGI Proven Financial Track Record Vast and Fast-Growing Market Leading Position with a Solid Reputation Strategic Location in Yangtze River Delta Long-term High-Quality Customer Base with On-Going Diversification Advanced Production Facilities with Operational Efficiency Strong Customer-Oriented R&D Capabilities Seasoned Management Team

Source: Thomson, Capital IQ/Yahoo Finance Peer Valuation

Contact Information China Shengda Packaging Group Inc. Kendra Yang, Board Secretary Tel: +86-571 8283 8770 E-mail: [email_address] CCG Investor Relations Mark Collinson Direct:+1 (310) 954-1343 E-mail: [email_address] Auditors Marcum Bernstein & Pinchuk LLP SEC Attorney Pillsbury Winthrop Shaw Pittman LLP This Presentation of China Shengda Packaging Group Inc. was developed by the Company and CCG and is intended solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy the Company’s stock. This presentation is based upon information available to the public, as well as other information from sources which management believes to be reliable, but is not represented by China Shengda Packaging Group Inc. or CCG as being fully accurate nor does it purport to be complete. Opinions expressed herein are those of management as of the date of publication and are subject to change without notice.

China Shengda Packaging Group Inc. Thank You!

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China Shengda Packaging Group Inc.

by CCG Investor Relations on May 04, 2011

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China Shengda Packaging Group Inc. — Presentation Transcript