Shandong Chenming to sell three target companies for 3.33 bn yuan

Shandong Chenming Paper Holdings Limited announced a very substantial disposal of its entire equity interest in three target companies and a related loan for a total consideration of 3,336.353 million yuan. The transaction, entered into on December 15, 2025, involves Zhanjiang Chenming Paper and Chenming HK as vendors and Shouguang Shengjia Investment Co., Ltd., as the purchaser. The disposal is expected to generate an unaudited gain of approximately 38.9395 million yuan for the company.

The consideration comprises 785.1593 million yuan for Target Interest 1, 288.2376 million yuan for Target Interest 2, 0 yuan for Target Interest 3, and 2,262.9561 million yuan for the Target Loan. The purchaser will pay the consideration in cash according to a schedule extending to December 2035. Upon completion, the Target Group Companies, primarily engaged in finance leasing, will cease to be subsidiaries of Shandong Chenming.

This divestiture aligns with the company's strategy to focus on its core paper products business, optimize its asset structure, and enhance profitability. The disposal is subject to requisite approvals from the Shouguang City government and shareholders, as it exceeds 75% of the applicable percentage ratios under Chapter 14 of the Listing Rules.