CHENMING PAPER (01812) plans to sell all equity of the target company for 3.36 billion yuan.

CHENMING PAPER (01812) announced that on December 15, 2025, Zhanjiang Chenming Paper Co., Ltd. (Zhanjiang Chenming Paper, as the seller of the target loan), Hong Kong Chenming (as the seller of the target equity), and the buyer Shouguang Shengjia Investment Co., Ltd. (as the buyer) entered into an equity and loan transfer agreement. Under this agreement, the company and Hong Kong Chenming agree to sell, and the buyer agrees to acquire the target equity and target loan for a total consideration of RMB 3.336 billion. According to the equity and loan transfer agreement, Hong Kong Chenming has agreed to sell, and the buyer has agreed to acquire 100% equity of Target Company 1 Shandong Chenming Financing Leasing Co., Ltd., 25% equity of Target Company 2 Qingdao Chenming Paper Products Sales Co., Ltd., and 25% equity of Target Company 3 Shanghai Chenming Financing Leasing Co., Ltd.; and Zhanjiang Chenming Paper has agreed to sell, and the buyer has agreed to acquire the loan payable by Zhanjiang Chenming Paper to Target Company 1, with a book value of RMB 2.263 billion, which was provided by Zhanjiang Chenming Paper to support the daily operations of Target Company 1 before the date of the equity and loan transfer agreement. As of the date of this announcement, Target Company 1 is wholly owned by Hong Kong Chenming; Target Company 2 is owned 75% by Target Company 1 and 25% by Hong Kong Chenming; and Target Company 3 is owned 75% by Target Company 2 and 25% by Hong Kong Chenming. In order to focus on core responsibilities and main business operations, the company plans to divest all assets related to its financing leasing business by selling the equity and loans of the target companies. The sale is in line with the company's overall development strategy and will improve the asset-liability structure, unlock existing assets, and concentrate resources on developing the core business. This will further enhance the company's profitability and core competitiveness, promoting high-quality sustainable development. The buyer (a wholly state-owned enterprise established by the Shouguang Municipal Finance Bureau) has good reputation and strong performance capability. After the completion of the sale, the daily business operations of the group will remain largely unchanged. The group will continue to focus on its main business of producing and selling paper products. Currently, four out of the group's five production bases have resumed production. The directors expect that after the completion of the sale, the group's business and operational scale will not undergo significant changes, and the sale will not have a major impact on the group's business and operations.