Chenming Paper (01812) plans to sell all shares in the target company for 3.336 billion yuan

Zhitong Finance App News, Chenming Paper (01812) issued an announcement. 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 shares) and the buyer Shouguang Shengjia Investment Co., Ltd. (as the buyer) entered into an equity and loan transfer agreement. Based on this, the company and Hong Kong Chenming agreed to sell the target shares and the target loan at a total cost 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% of the shares of target company 1 Shandong Chenming Financial Leasing Co., Ltd., target company 2, 25% of Qingdao Chenming Paper Products Sales Co., Ltd., and target company 3 Shanghai Chenming Financial Leasing Co., Ltd . 25% of the shares; and Zhanjiang Chenming Paper has agreed to be sold, and the buyer has agreed to buy Target Company 1's loan payable to Zhanjiang Chenming Paper with a book value of RMB 2,263 billion, that is, the capital provided by Zhanjiang Chenming Paper to support the target company's normal operation for 1 day 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% and 25% by Target Company 1 and Hong Kong Chenming respectively; and Target Company 3 is 75% and 25% respectively owned by Target Company 2 and Hong Kong Chenming.

In order to focus on its core responsibilities and main business, the Company plans to divest all assets related to its financial leasing business through the sale of shares and loans in target companies. The sale is in line with the company's overall development strategy and will improve the balance and liability structure, revitalize existing assets, and enable the company to concentrate resources to develop its main business. This move will further enhance the company's profitability and enhance its core competitiveness, thereby promoting high-quality sustainable development. The buyer (a wholly-owned state-owned enterprise established by the Shouguang Finance Bureau) has a good reputation and strong ability to fulfill contracts.

Once the sale is completed, the Group's daily business operations will remain essentially unchanged before and after completion. The Group will continue to focus on the main business of producing and selling paper products. Currently, four of the Group's five production bases have resumed production. The directors expect that after the sale is completed, there will be no significant changes in the Group's business and business scale, and that the sale will not have a significant impact on the Group's business and operations.