CHENMING PAPER (01812) announced that on December 15, 2025, Zhanjiang Chenming Paper Products Co., Ltd. (as the seller of target loans), Hong Kong Chenming (as the seller of target equity), and the buyer Shouguang Shengjia Investment Co., Ltd. entered into an equity and loan transfer agreement. Under the agreement, the company and Hong Kong Chenming agreed to sell, and the buyer agreed to acquire, the target equity and target loans for a total consideration of RMB3.336 billion.

According to the agreement, Hong Kong Chenming will sell 100% equity in Target Company 1 (Shandong Chenming Financial Leasing Co., Ltd.), 25% equity in Target Company 2 (Qingdao Chenming Paper Products Sales Co., Ltd.), and 25% equity in Target Company 3 (Shanghai Chenming Financial Leasing Co., Ltd.). Additionally, Zhanjiang Chenming Paper Products will sell loans receivable from Target Company 1, with a book value of RMB2.263 billion, which were previously provided by Zhanjiang Chenming to support Target Company 1's daily operations.

As of the announcement date, Target Company 1 is wholly owned by Hong Kong Chenming; Target Company 2 is 75% owned by Target Company 1 and 25% by Hong Kong Chenming; and Target Company 3 is 75% owned by Target Company 2 and 25% by Hong Kong Chenming.

The company intends to divest all assets related to its financial leasing business through the sale of target equity and loans, focusing on core responsibilities and main operations. The transaction aligns with the company's overall development strategy, improves its balance sheet structure, optimizes existing assets, and allows the company to concentrate resources on its core business. This move is expected to enhance profitability and strengthen core competitiveness, driving high-quality sustainable development.

The buyer, a wholly state-owned enterprise established by the Shouguang Municipal Finance Bureau, has strong credibility and performance capability. Post-transaction, the group's daily operations will remain largely unchanged, with continued focus on paper product production and sales. Currently, four of the group's five production bases have resumed operations.

The board expects no significant changes to the group's business or operational scale following the transaction, and the sale will not materially impact the group's operations.