Chenming Paper sells finance leasing business for 3.3 bn yuan

Shandong Chenming Paper Holdings Limited announced the disposal of its finance leasing business for a total consideration of 3,336.353 million yuan. The transaction includes the sale of 100% equity interest in Target Company 1, 25% in Target Company 2, and 25% in Target Company 3, along with a loan of 2,262,956,136.67 yuan owed by Target Company 1 to Zhanjiang Chenming Paper. The purchaser, Shouguang Shengjia Investment Co., Ltd., will pay the consideration in cash through a structured payment schedule extending to December 2035.

The disposal is expected to result in an unaudited gain of approximately 38.9395 million yuan for the company, increasing total assets by 10 million yuan and decreasing total liabilities by 30 million yuan. The company's board believes the sale will enable a greater focus on its core paper product manufacturing and sales business, improve its asset-liability structure, and enhance profitability.

The target group, primarily engaged in finance leasing, recorded significant losses in recent years, with a loss after tax of 3,814.98 million yuan for the year ended 31 December 2024. As of 30 September 2025, the target group's net assets were 1,082.0849 million yuan. The company projects the equity transfer registration procedures to be completed by the end of March 2026.